Grupo Bimbo (BIMBOA) Q1 2025 earnings summary

Executive summary

• Achieved record-breaking consolidated sales in Q1 2025, with strong performance in Mexico and EAA, and positive global volume contribution.

• High single-digit EBITDA growth, though margin contracted due to North America challenges and ongoing transformation investments.

• Continued innovation, operational excellence, and ESG leadership, named among the world's most ethical companies for the ninth consecutive year.

• Global leader in grain-based foods, operating in 35 countries with over 100 brands and 9,000 products.

• Focused on health, sustainability, and evolving consumer trends, with a robust ESG strategy and progress on key goals.

Financial highlights

• Net sales reached record Q1 levels, up 10.8% year-over-year, driven by innovation, productivity, and recent acquisitions.

• Adjusted EBITDA increased 8.0% to Ps. 12,817 million; margin contracted 30 bps to 12.4%.

• Gross margin improved by 50 bps to 52.5% due to lower raw material costs.

• Net Debt/Adjusted EBITDA at 2.9x as of 1Q25, unchanged from year-end 2024.

• Total debt at MXN 161 billion (US $7.94 billion), up YoY due to new bond issuances.

Outlook and guidance

• Full-year guidance revised: now expecting high single-digit sales growth (down from low double-digit), and mid-single-digit adjusted EBITDA growth.

• Guidance revised due to stronger Mexican peso and softer North America consumption.

• Anticipates slight margin contraction for the year, mainly due to FX and softer North America consumption.

• CAPEX guidance for 2025 at US $1.4–1.5 billion.

• Gradual improvement expected in H2 2025 as transformation benefits materialize.