Grupo Bimbo (BIMBOA) Q4 2024 earnings summary

Executive summary

• Achieved record net sales in 2024, up 2.1% year-over-year, with strong performance in Mexico and EAA regions, offsetting softness in North America.

• Completed five strategic acquisitions, expanding presence to 35 countries.

• Returned Ps. 8.7 billion to shareholders via dividends and buybacks.

• Navigated challenging consumer environment in North America, investing in supply chain and strategic bakery closures.

• Latin America rebounded in the second half, delivering strong growth.

Financial highlights

• Net sales reached US $11.82 billion (Ps. 408,335 million), up 2.1% year-over-year, with 4Q24 sales up 8.3%.

• Gross margin improved by 120 bps to 52.6% for 2024, mainly due to lower input costs and favorable mix.

• Adjusted EBITDA margin at 13.6% for 2024, down 10 bps; adjusted EBITDA reached Ps. 55,474 million, up 1.0%.

• Net debt/Adjusted EBITDA ratio at 2.9x, up from 2.1x, reflecting higher debt for capex and investments.

• Net majority income declined 18.9% to Ps. 12,545 million, with margin contracting 80 bps to 3.1%.

Outlook and guidance

• 2025 net sales expected to be flat to low-single digit growth; adjusted EBITDA to see low single-digit growth with slight margin expansion.

• 2025 CAPEX guidance: US $1.4–1.5 billion.

• Management expects North America investments to benefit results in the second half of 2025.

• Optimism for long-term sustainable and profitable growth, supported by recent capital market activity and expansion.