Grupo Bimbo posted increases in sales and earnings for the most recent quarter, despite inflationary and other pressures that caused its margins to shrink slightly.
Net sales were up 20%, to $5.2 billion (U.S.), and gross profit reached $2.67 billion, a 15% increase. Adjusted earnings were $735.2 million, a 15% increase.
The good figures came in spite of a contraction in adjusted earnings of 60 basis points. Company executives attributed the lower margins to inflation and uncertainty about supplies, which they expect to continue next year.
Sales increased in all four of the regions Bimbo serves, rising a little more than 20% in both North America and Mexico. The only regional decline in profit was in Europe-Africa-Asia, where it dropped 18%. The company attributed this to higher raw material costs and a weak performance in China.
“The inflationary environment we are currently living in has been very challenging, yet we have been able to navigate through it thanks to the resiliency of our categories and the high demand for them, the hard work of our associates, the trust of our consumers and customers and the strength of our brands which continue to resonate globally,” CEO Daniel Servitje said in a statement.
