The company Bimbo exceeded first quarter sales estimates this year, reaching 93,321 million pesos (more than 4,600 million dollars), 17.7% higher to the same period of 2021. According to the results presented before the Mexican Stock Exchange (BMV), the Bimbo group obtained net profits of 223 million dollars, an increase of 10.4%. These results are well above what analysts expectedwhich had estimated a 10% increase in sales and a 37% drop in net profit.
The Chairman of the Board and CEO of Bimbo, Daniel Servitje, explained that the company had a “great start to the year.” “The performance in net sales was exceptional, reaching a record level for the first quarter and gaining market share in multiple categories,” Servitje said in the report sent to the Mexican stock market.
The good results are explained by the increased sales and prices in all markets. The increase in prices in Mexico caused sales to rise by 19.5%, with a good performance of salty snacks, cupcakes, sweet bread, box bread, cookies and confectionery. The increase in sales in North America was 17% thanks to products in the categories of pastries, sweet bread and snacks.
Bimbo’s good results for the first quarter come a day after the Mexican company announced the sale of its confectionery business, Ricolino, to Mondelez International for 1,329 million dollars. The company indicated that this “strategic decision will allow Grupo Bimbo, on the one hand, to become a stronger global leader in grain-based foods and to concentrate on its bakery and snack industries.” For its part, for Mondelez, the world’s leading snack company, this operation “will allow it to double the size of its business in Mexico, expand its presence in the confectionery segment and will also provide an attractive entry point to the category of chocolates in the country”. With some 500 million dollars in net sales in 2021, Ricolino is a “leading player in the confectionery category in Mexico”, it has around 6,000 employees and 4 plants that distribute its products through its sales centers through various channels and brands.