Bimbo snaps up English muffin maker Mile Hi Bakery
USA – Grupo Bimbo, a Mexico-based snacks and bakery giant has announced its acquisition of Mile Hi Bakery for an undisclosed sum.
The bakery giant disclosed the move for the Colorado business during its Q3 Results Conference Call, held on Oct. 26.
“During the quarter, we successfully acquired Mile Hi Bakery in Colorado, US, known for producing buns and English muffins for the QSR channel,” said Rafael Pamias, COO of Grupo Bimbo.
According to him, the strategic acquisition strengthens Bimbo’s geographic presence in this high-growth industry and opens doors to new QSR customers in the US.
In July, when Bimbo announced its second-quarter results, CFO Diego Gaxiola said the company had “a very robust pipeline of potential targets”.
Mile Hi Bakery is a supplier of buns and English muffins for the quick-service restaurant (QSR) channel.
Mile Hi Bakery was set up in 1985 to produce buns for McDonald’s in the Rocky Mountain region. Among the clients listed on the company’s website are McDonald’s, Wendy’s, Chick-fil-A, and Bimbo Bakeries USA, Bimbo’s local subsidiary.
The Mexican group’s third-quarter results statement also included news the company has bought the majority of its QSR operations in Switzerland and now owns 60% of the business. The other shareholders in the entity were not disclosed.
In the third quarter of the year, Bimbo’s group net sales fell 3.5% to 99.18bn Mexican pesos ($5.51bn). Excluding the impact of exchange rates, net sales were up 8.2%.
Bimbo said sales reached a “record” in the third quarter when exchange rates were discounted from the numbers. It pointed to “a favorable price/mix across regions”.
Stripping foreign exchange from the results, net sales were up in all regions, including in North America, the company’s largest. In the 12 months to the end of September, the North America division – which does not include Bimbo’s domestic market of Mexico – accounted for just over 49% of net sales.
Third-quarter operating income fell 11.4% to 9.75bn Mexican pesos, or by 4.6% excluding foreign exchange.
Net majority income was down 31% at 4.18bn Mexican pesos and by 27.5% when currency fluctuations were stripped from the numbers.
Bimbo said both results included the impact of the group lapping a pension benefit recorded in 2022.
Excluding the pension factor from the figures, net majority income fell 10.7%.
Adjusted EBITDA dipped 0.2% to 14.47bn Mexican pesos. Without taking into account exchange rates, adjusted EBITDA increased 9.5%.
