Grupo Bimbo Lowers Sales Growth Outlook Amid Strength In Mexico Peso

Grupo Bimbo firm logo. Credit: OleksandrShnuryk/Shutterstock.com.

Mexican bakery group Grupo Bimbo has lowered its full-year gross guidance owed to nan effect of nan spot successful nan section rate connected its top-line growth.

While nan accommodation to nan world bakery giant’s expectations for nan mean peso speech complaint to nan US dollar for nan remainder of 2025 are rather mini – now 19.75 pesos versus 20.50 antecedently – Grupo Bimbo anticipates a antagonistic 250 basis-point weight connected gross growth.

As a result, nan outlook for nan fiscal twelvemonth has been tweaked to mid-single-digit maturation from nan anterior guidance of precocious single-digits, CEO Rafael Pamias told analysts arsenic he presented second-quarter figures.

More positively, however, Pamias said nan adjusted EBITDA separator is apt to grow successful nan 2nd half from nan 13.9% achieved successful nan reported quarter, which represented a diminution of 30 ground points. The separator dropped 100 points successful fiscal 2024 to 13.6%.

With an expected betterment successful store, nan separator for nan twelvemonth is now predicted to beryllium level to down slightly, compared to a “slight separator contraction” previously, nan CEO added.

Opening nan telephone pinch analysts, Pamias reflected connected nan “complex and quickly evolving environment”, which for illustration galore different world nutrient companies person reported of late, remains “challenging”.

“Despite nan challenges we person faced this twelvemonth and nan ongoing uncertainty crossed nan macroeconomic environment, we stay assured successful our semipermanent strategy,” Pamias said. “As a highly diversified world institution and manufacture leaders we are good positioned to navigate nan existent headwinds.”

Group Bimbo, is nonetheless, assured that innovation, strategical investments and acquisitions will accelerate income maturation going forward.

Pamias noted nan woody for Wickbold successful Brazil is apt to beryllium approved by regulators successful nan 2nd half of nan year, giving an added boost to sales. Other recent acquisitions see Karamolegos Bakery successful Romania and Don Don successful Slovenia.

The group’s second-quarter income successful local-currency position roseate 9.4% to 107.5bn pesos ($5.7bn). And maturation was besides reported successful Grupo Bimbo’s 2 largest markets, North America and Mexico, contempt what it described arsenic “soft consumption” trends successful both.

Sales gross successful North America climbed 8.3% to 49.1bn pesos while Mexico saw a 3% summation to 38.4bn pesos. But location was a opposition successful adjusted EBITDA margins – down 70 ground points astatine 9% successful nan erstwhile and up 30 points successful nan second astatine 20.3%.

CFO Diego Gaxiola gave immoderate penetration connected nan US for Grupo Bimbo’s bakery and snacks products.

“Many of our categories stay challenged successful nan US, but we are seeing mini gains successful our mainstream [products] and our buns and rolls,” he said.

“We don’t person capable momentum yet to offset nan losses but what we’re now focused connected is expanding our offerings successful nan worth segment.

“In our salty snacks business successful nan US, we’re seeing a bifurcation of consumers, wherever nan economically stressed consumers are moving down to backstage explanation aliases different worth offerings, while much able consumers are moving to much premium products.”

The publically listed group is pushing its namesake marque of breadstuff successful nan worth conception but besides promoting its “super-premium” sourdough successful nan latter. The institution is besides introducing “protein-focused products”, which person “really resonated pinch nan health-conscious and nan GLP consumer”, Gaxiola said.

With respect to Mexico, he added: “We’re seeing immoderate softness but we proceed to present maturation successful each channels and astir categories successful Mexico.

“We person a batch of separator manoeuvring because we’re coming crossed some branded and unbranded. We connection a competitory portfolio crossed channels, categories, locations and user needs. We tin present caller and frozen, and we are rather accelerated successful adapting.”

Amid nan thrust successful nan US by nan President Trump management to destruct nutrient additives and colourings from food, Grupo Bimbo is taking up nan situation further afield.

“The nutrient manufacture has a basal work of offering safe, nutritious, affordable and accessible products astir nan world”, and Grupo Bimbo is “fully dedicated to delivering a superior patient experience”, CEO Pamias said.

He explained that 99% of nan group’s regular depletion floor plan centered astir bread, meal products and level breads is already free from artificial flavours and colours.

That will beryllium applied to nan afloat portfolio by nan extremity of 2026. And by 2030, “we’re going to guarantee that 100% of our baked equipment and snacks will beryllium made pinch simple, earthy recipes that stay still affordable crossed each points of sale”, Pamias added.