Milling & Baking News Corporate Profiles - 2017 - 72

Company Overview

spending," he said. "This is even more pronounced in emerging markets, while worldwide technology is enabling a more seamless food service experience. As a whole,
the Q.S.R. industry is expected to grow at
a compounded rate of almost 6% per year
over the next five years. In the regions where
East Balt is present, like the Middle East and
Africa, that rate is actually expected to be
upwards of 9%; in Asia, about 7%; and in
Eastern Europe, over 6%."
In its existing North American business,
the baking environment has been challenging for Grupo Bimbo.
Year-to-date operating income through

'The industry is in a sustained
period of growth, driven by tailwinds
in out-of-home spending. This is
even more pronounced in emerging
markets, while worldwide technology
is enabling a more seamless food
service experience.'
- Daniel Servitje,
Grupo Bimbo S.A.B. de C.V.

June 30 was 3,678 million pesos ($206
million), up 14% from 3,226 million. Sales
in the first two quarters were 68,206 million pesos ($3,820 million), up 7% from
63,794 million.
Positives during the first half of the year
were enhanced efficiencies that helped
lift operating income in the United States,
though two labor strikes in Canada were a
drag. Bimbo closed two U.S. baking plants
in the first quarter, and charges associated
with the moves and other restructuring expenses weighed on profitability over the sixmonth period.
Another two U.S. baking plant closings were
announced in July. Also in July, Bimbo said it
would be closing one of three plants its Canada Bread unit operates in western Canada.

72 \ October 2017

Year-to-date consolidated income was
2,493 million pesos ($140 million), down
24% from 3,275 million pesos. Six month
sales were 131,195 million pesos ($7,347
million), up 11% from 118,115 million pesos.
Beyond the recent acquisitions, Bimbo
has taken a number of steps to bolster its
global businesses. The company in September announced it had opened a new production plant and distribution center in Tenjo,
Colombia. The facility took a year to build
and cost $86 million, Bimbo said. The baking
plant has the capacity to produce 8 tons of
product per hour and has production lines to
make hamburger buns, snacks and puff-pastry buns, a first for the Colombian market.
On Aug. 29, Grupo Bimbo held a groundbreaking ceremony at its new Metropolitan
distribution center located in the Azcapotzalco District of Mexico City. The facility is
expected to be the largest and most modern
distribution center of the baking industry
in the Americas and will increase the logistics capacity and enhance productivity and
distribution efficiency for Grupo Bimbo, the
company said.
Grupo Bimbo said it will invest 2.3 billion pesos ($129.3 million) in the facility,
which will include inventory control and
automation technology to supply sales centers and routes serving more than 200,000
customers.
Bimbo long has been an advocate for sustainability, and highlighted a number of features planned for the Mexico City facility,
including:
* 30% of the area will be green areas managed by Reforestamos Mexico A.C., planting
more than 1,000 trees
* Exclusive use of electricity from the Piedra Larga Wind Farm
* A savings of 269 tons of CO2
* LEED Gold certification
* Low consumption and reuse of water
with a rain water catchment system
* Zero waste to landfill areas. CP

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Grupo Bimbo
North America
in millions of Mexican pesos
% change from
Fiscal 2016
year ago
Net sales
16.2%
135,219
Operating
income
7,161

42.6%

Grupo Bimbo
Mexico
in millions of Mexican pesos
% change from
Fiscal 2016
year ago
Net sales
8.0%
82,386
Operating
income
12,949

18.6%

Grupo Bimbo
OLA
in millions of Mexican pesos
% change from
Fiscal 2016
year ago
Net sales
19.9%
29,100
Operating
income (loss)
-2,453

Grupo Bimbo
Europe
in millions of Mexican pesos
% change from
Fiscal 2016
year ago
Net sales
54.4%
11,676
Operating
income (loss)
-159

Corporate Profiles

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