Grupo Bimbo (BIMBOA) Q3 2024 earnings summary

Executive summary

• Achieved record net sales and adjusted EBITDA margin for 3Q24, driven by strong performance in Mexico, EAA, and Latin America, despite a soft consumer environment in North America.

• Gross margin expanded by 150 bps to 53.1% due to lower input costs and favorable mix, while operating margin declined 100 bps to 8.8% from supply chain investments.

• Positive volume growth across most regions, with Mexico showing four consecutive quarters of increases and EAA reaching record EBITDA margin.

• Expanded global presence with acquisitions in Southeast Europe, Brazil, and Uruguay, pending regulatory approvals.

• Multiple recognitions received for corporate reputation and employer excellence.

Financial highlights

• Net sales increased 7.4% year-over-year, reaching Ps.106,046 million in 3Q24, with Mexico sales up 6.6% and Latin America net sales up 7.7% excluding FX effects.

• Adjusted EBITDA margin reached 14.7% for the quarter, with Mexico at nearly 22% and EAA at a record 10%.

• Gross profit rose 10.3% to Ps.56,291 million; operating income fell 3.7% to Ps.9,359 million.

• Net debt to adjusted EBITDA ratio at 2.8x; total debt at Ps.146 billion, up due to acquisitions and peso depreciation.

• ROE declined to 11.1% from 14.6% year-over-year.

Outlook and guidance

• Full-year guidance reiterated, with expectations of continued strong trends outside North America and CapEx to end near $1.8 billion.

• Management expects long-term benefits from ongoing value chain investments, especially in North America.

• Early 2025 outlook withheld pending further developments.