Grupo Bimbo continues downwards profit slide

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Grupo Bimbo posts 9.4% profit drop for Q1 2013
Grupo Bimbo posts 9.4% profit drop for Q1 2013
Grupo Bimbo’s profits slumped 9.4% for the first quarter of 2013, continuing the downwards trend that has shaped business for the last year.

The Mexican bread major pulled in a net profit of 544m pesos ($44.5m), down 9.4% on the year before. Taxes were cited as the core reason for the dip.

While profits were down, figures matched up favorably against a profit slump of 81% for Q4 2012 and 83% for Q3 2012.

In total, Bimbo totted up 41.6bn pesos ($3.4bn) of consolidated sales for the quarter, up 1.6% from the year before.

Sales were up in Mexico and the US, but down in Latin America underpinned by a weak consumption environment and also down in Iberia due to a challenging economic environment.

Despite the sales surge, volumes declined in Mexico, particularly in cakes and cereal bars prompted by pricing actions in the last four months, the firm said.

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1 comment

Did they bite off more than they can chew with the Sara Lee

Posted by Anthony Williams,

Bimbo may have bought off more than they could chew with Sara Lee and then Flowers getting the California market then buying the Hostess labels, Flowers already has the most modern plants in the USA and it may take them a few year but they will control the USA market watch and see.

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