Bimbo Hits Record Sales in 1Q23

Between January and March 2023, Grupo Bimbo’s sales reached MX$99.5 million (US$5.5 billion). However, Bimbo’s net profit reflected a decrease of 9.4% over the previous year. Daniel Servitje, President, Grupo Bimbo, said that the company had a very strong first quarter, as they continued to see the benefit of their pricing strategy implemented during 2022, which allowed them to exceed their expectations and results. 

During 1Q23, Bimbo reported an increase of 9.9% against the same period in 2022. These results were mainly driven by the commercialization of its products in the US, where sales reached MX$47.246 billion (US$2.6 billion), followed by Mexico with MX$36.244 billion (US$2.01 billion), Europe with MX$10.298 (US$572.9 million) and Latin America with MX$9.630 billion (US$535.7 million). Servitje pointed out that towards the future, the price of their products will stop increasing. 

In North America, the bakery registered 15.3% growth and in Mexico sales increased 19.8%. In the latter, biscuits, bread, sweet bread, pastries and snacks recorded a double-digit advance. Furthermore, on April 17, 2023, the National Alliance of Small Traders (ANPEC) reported that Bimbo had announced a new list of prices to be handled by retailers in Mexico. Price increases ranged from MX$2 (US$.11) to MX$14 (US$.78) in products such as bread, toast and flour tortillas. 

"I am very proud of the hard work of our collaborators around the world and their resilience to navigate in a high inflation environment. We will continue to invest in our brands and assets to capture growth opportunities throughout our supply chain," Servitje said.

Diego Gaxiola, Global Director of Finance and Administration, Bimbo, highlighted that 1Q23 results were strong, despite high inflation. “Raw materials were even higher compared to 2022, also impacted by a complex operating environment in some markets and a negative exchange rate effect,” the director stated. 

However, the Mexican bakery reported a net profit of MX$4.046 million (US$225.09 million), which reflected a decrease of 9.4% over the previous year, due to exchange rate effects, payment of pension plans, as well as discontinued profits associated with the sale of Ricolino. Grupo Bimbo sold the latter to Mondelez International for around US$1.3 billion in 2022. In regards to the payment of pension plan’s, the company reported an expenditure of MX$73 million (US$4.06 million).