Grupo Bimbo Q1 results indicate profit drop despite revenue growth
The company is expanding its distribution network and tailoring strategies to maximize value in various markets.
MEXICO – Mexican multinational food company Grupo Bimbo reported a 19.7% drop in first-quarter profit, totaling US$112.4M (€99.0 million), despite a revenue increase of 10.8% to US$5.3B (€4.7 billion).
The company’s strong performance in Mexico, with an EBITDA margin of 19%, and a 5.2% sales increase in Latin America, primarily driven by Brazil, Argentina, and Central America, boosted its EBITDA and margins.
Additionally, Grupo Bimbo received its ninth consecutive ethics award, underscoring its commitment to environmental, social, and governance (ESG) principles.
“We kicked off 2025 with solid trends in most markets, while also facing some challenges and areas of opportunity in others, all while navigating highly volatile macroeconomic and political landscapes in the world’s leading economies,” said Rafael Pamias, CEO of Grupo Bimbo.
However, despite positive results elsewhere, Grupo Bimbo encountered challenges in several regions during the quarter.
North American sales decreased by 4.9% due to weak consumer spending and the company’s strategic shift away from certain non-branded products, which put pressure on margins, particularly in Canada.
In the European, Asian, and African (EAA) region, sales surged by 22.3%, reaching a record high for the first quarter with a 4.5% increase when excluding currency impacts.
This growth was largely driven by strong performances in Romania, Bimbo QSR, the UK, India, and Morocco, along with modest contributions from recent acquisitions.
The EAA region’s margin remained steady at 7.2% compared to the same quarter last year, as increased sales and lower commodity costs offset higher labor costs in Romania, which were attributed to minimum wage increases, the conclusion of wage subsidies, and weak performance in China’s branded business.
Consequently, Grupo Bimbo lowered its full-year guidance, anticipating continued challenges in North America.
Company executives emphasized ongoing efforts to optimize operations and enhance efficiency, noting that current tariffs will have a minimal impact.
While consumption in Mexico has slightly softened, the company has identified growth opportunities.
North American margins are expected to improve despite ongoing investments, and challenges in the EAA region are being addressed. Grupo Bimbo is adapting to changing consumer trends in the U.S. by expanding both value and premium product offerings.
The company expects positive free cash flow, with potential adjustments to capital expenditures (CapEx) and a focus on improving working capital.
Based in Mexico, Grupo Bimbo is the world’s largest baking company, operating in over 35 countries with 223 bakeries and more than 1,500 sales centers.
It is a significant player in the snack industry, supported by a vast direct distribution network of over 58,000 routes and 152,000 associates. Grupo Bimbo is the parent company of well-known brands such as Pullman, Ana Maria, and Rap10.
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