El Economista – Mexico City
Grupo Bimbo, the largest bakery company in the world, will present its annual report on the Mexican Stock Exchange (BMV) with negative income, analysts predicted.
“Approximately 55% of Bimbo’s sales are made in dollars, the appreciation of the peso against the US bill during 2023 will significantly impact the company’s income.”commented Marisol Huerta, independent analyst.
He assured that if it were not for the exchange rate, a slight growth would be observed in the company’s results. Fluctuations in exchange rates reduce the company’s profit margins and affect its competitiveness in international markets, explained Amin Vera, financial director at Invala Family Office.
With a presence in 34 countries on four continents, the United States and Latin American markets will have a reduction in income, commented Marisol Huerta.
The slowdown in global consumption will also negatively impact the company’s sales, Vera commented. Bimbo’s operating flow (Ebitda) could grow by 1% annually, Marisol Huerta projected.
Although Bimbo may present an annual report with contractions in its Ebitda or income, both analysts agreed that it is a solid company with good management.
“It must be clarified in terms of income and profitability, the company does manage to have stability in its margins, by compensating it with operational efficiencies in terms of profit,” Huerta explained.
