Q2 2024 Grupo Bimbo SAB de CV Earnings Call Transcript
Key Points
- Grupo Bimbo SAB de CV (BMBOY) achieved a record adjusted EBITDA margin of 14.2% for the second quarter, driven by enhanced revenue growth management and lower raw material costs.
- The company's EAA operation significantly increased profitability, achieving a record double-digit margin of 10.4% for the second quarter.
- Grupo Bimbo's brand was recognized by Kantar as the most chosen food brand in Mexico and within the top five in Latin America in the fast-moving consumer goods sector.
- The company is making progress towards its sustainability goals, aiming to reduce Scope 3 emissions by 12% by the end of 2023 compared to 2022.
- Sales in Europe, Asia, and Africa increased by almost 9%, driven by strong sales performance and contributions from recent acquisitions.
- In North America, sales declined by 3.4% excluding FX effects, due to a difficult comparison from the previous year and strategic exits from some non-branded businesses.
- Adjusted EBITDA margin in North America contracted by 130 basis points, impacted by soft top-line performance and strategic investments in the value chain.
- The company is facing a challenging environment in Colombia and Chile, with competitive pricing pressures and declining consumption.
- Grupo Bimbo closed three small bread and rolls facilities in the US, which constituted less than 2% of total capacity, as part of efforts to optimize cost structure.
- The overall consumer environment in North America remains challenging, affecting the company's ability to adjust its guidance despite a weaker Mexican peso.
Good afternoon, everyone, and welcome to Grupo Bimbo's second quarter results conference call. If you need a copy of the press release issued earlier today, it is available on the company's website at grupobimbo.com.
Before we begin, I would like to remind you that this call is being recorded and the information discussed today may include forward-looking statements regarding the company's financial and operating performance. Our projections are subject to risks and uncertainties and actual results may differ materially. Please refer to the detailed note in the company's press release regarding forward-looking statements.
I will now turn the call over to Mr. Rafael Pamias, Chief Executive Officer of Grupo Bimbo. Please go ahead, sir.
Thank you very much, and good afternoon, everyone. Thank you for joining us. Connected on the line today is our CFO, Diego Gaxiola; Mark Bendix, Executive Vice President; and several members of our finance team.
The second quarter results
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