Mexican breadmaker’s net profit takes a tumble

Falling sales in the US and a less favourable exchange rate lead to a fall in net profit for Grupo Bimbo.

The Mexican bakery company said yesterday that its third-quarter net profit dropped nearly 14 per cent.

The company earned 1.497 billion pesos ($119 million) in the July-September period, compared with 1.733 billion pesos in the same quarter of 2009.

The company said in a filing with the local stock exchange that net sales rose 0.7% to MXN29.56 billion from MXN29.35 billion, reflecting a continued economic recovery in Mexico, where sales increased 4.5%, and in Latin America, where sales rose 6.9%.

“In dollar terms, sales in the U.S. registered a 1.5% decline as a result of lower prices, while in peso terms they fell 4.4% because of a lower peso-dollar exchange rate than in third quarter 2009,” the company said.

Operating income rose 1.2% to MXN3.39 billion from MXN3.35 billion, while earnings before interest, taxes, depreciation and amortization rose 1.6% to MXN4.3 billion from the same period last year.

Bimbo series A shares traded on the Mexican Stock Exchange fell 0.6% to MXN95.64 Thursday.