Bimbo Will Make Historic Investment in 2023
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Bimbo Will Make Historic Investment in 2023

Photo by:   Gio Bartlett - Unsplash
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Eliza Galeana By Eliza Galeana | Junior Journalist & Industry Analyst - Fri, 03/10/2023 - 16:39

After increasing its profits by almost 200% in 2022, Grupo Bimbo is planning to invest from US$1.7 to US$2 billion during 2023, reaching a historic figure. This investment will represent a growth of between 21% and 42% compared to the previous year. 

Daniel Servitje, President, Grupo Bimbo, stated that 2023’s resources will be used to increase the company’s production capacity and profitability. A percentage of the investments will be allocated for the maintenance of specialized equipment. 

According to its financial report, the company achieved record sales of MX$398.7 billion (US$21.5 billion) in 2022, 17.7% more than in 2021. In Mexico alone, its income reached MX$130.4 billion (US$7.03 billion), which was 19.5% more in comparison to 2021. According to Servitje, this was a result of favorable product prices and better volumes in all regions where it operates. Moreover, analysts pointed out that the outcome was driven by the sale of Ricolino, yielding a net profit of MX$46.9 billion (US$2.5 billion). 

Servitje highlighted that 2022 was an exceptional year with historical financial performance and an increase in market share. “We carried out historical capital investments, adjusted our strategic approach to grain-based food, successfully transformed Argentina and Brazil and launched our sustainability strategy," he said. 

Diego Gaxiola, Global Director of Administration and Finance, Grupo Bimbo, said the company started 2023 with continued investments in key strategic areas to generate sustainable growth. On March 7, 2023, the company announced the acquisition of the Romanian bakery Vel Pitar. “This company, founded in 1999, owns 10 bakeries in Romania, has about 1,800 employees and a diversified portfolio with more than 12 recognized brands of sliced bread and other varieties of products,” Bimbo said in a statement.

Servitje underscored that with the acquisition of Vel Pitar, the Mexican company has expanded its presence to 34 countries and continues to strengthen its global leadership in grain-based food.

Photo by:   Gio Bartlett - Unsplash

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