GRUPO BIMBO: Grupo Bimbo closed 2018 achieving record levels

Grupo Bimbo issued the following announcement on Feb. 21.

Grupo Bimbo closed 2018 achieving record levels in net sales, as well as in gross profit, operating income, and adjusted EBITDA.

Global net sales increased 7.8% in 2018, reaching $ 288,266 million pesos. These record figures are mainly due to the outstanding performance of the company in Mexico and North America, regions which growth stood at 10.5% and 4.5%, respectively. The acquisitions of Bimbo QSR, and Mankattan in China also contributed to that growth.

Additionally, Grupo Bimbo completed the acquisition of Nutra Bien in Chile, a company that produces sweet baked goods.

In terms of the operating income, Grupo Bimbo managed to increase it by 6% in 2018 compared to 2017. Adjusted EBITDA, for its part, grew 16.2% compared to 2017, reaching $ 31,705 million pesos, the highest level in the history of the company.

Moreover, cumulative net majority income increased 25.4%, with a 30 basis point margin expansion due to the company's strong operating performance. On this regard, taxes in 2018 totaled $ 4,897 million pesos for Grupo Bimbo, which led to an effective tax rate of 42.6%.

During 2018, Grupo Bimbo also had an outstanding financial performance, achieving a decrease in the leverage ratio which went from 3.4 times total debt / adjusted EBITDA as of December 31, 2017, to 2.8 times at the end of 2018. Additionally, during 2018, the company improved its amortization profile and currency mix. Thus, it ended the year with 59% in US dollars, 36% in Mexican pesos and 5% in Canadian dollars, which reduces exposure to fluctuations in the exchange rate. Moreover, the Company has greater visibility and reduced risk with this debt structure given that 100% of it bears interest at a fixed rate.

Similarly, it should be noted that the company has a revolving credit facility available for two billion dollars.

On the other hand, Grupo Bimbo has invested around $ 1.2 billion pesos in the repurchase of approximately 30 million shares and $ 450 million pesos in local bonds.

Daniel Servitje, Chairman and CEO, commented: “We closed the year with record-breaking levels of net sales, gross profit, operating income and adjusted EBITDA, positioning us as a stronger and leaner Company that will continue to create value and serve our consumers.”

See our full results report here.

Original source can be found here.

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