Milling & Baking News - November 2, 2010 - 13

Financial Results



Grupo Bimbo earnings decline
14% in third quarter
MEXICO CITY - Net majority income of Grupo Bimbo S.A.B. de C.V.
in the third quarter ended Sept. 30 was
NP1,497 million ($121 million), down
14% from NP1,733 million in the same
period of fiscal 2009. Sales rose narrowly, climbing to NP29,562 million ($2,389
million) from NP29,352 million.
"Performance in the third quarter
remained on trend from the first half
of the year, with results driven by volume growth, in every region, although
recovery remains weak, lower product
prices in the United States, and the
impact of currency exchange rates,"
Grupo Bimbo said.
Operating profit in the United States
during the third quarter was NP1,047
million ($85 million), down 20% from
NP1,301 million a year ago. Sales fell

4% to NP12,163 million ($983 million)
from NP12,717 million.
"In dollar terms, sales fell 1.5% from
the third quarter of last year, as higher
volumes could not offset pricing pressures resulting from a challenging economic and competitive environment,"
Grupo Bimbo said. "Among the top
performing lines in the quarter were
Bimbo Bread and Sandwich Thins."
In the Mexico division, operating
profit was NP2,288 million ($185 million), up 14% from NP2,009 million in
the same period of fiscal 2009. Net sales
were up 5% to NP14,440 million ($1,167
million) from NP13,818 million.
In Latin America, operating profit
fell 2% to NP64 million ($5.2 million)
from NP66 million despite a 7% gain
in sales to NP3,656 million. MBN

Canada Bread earnings dip on lower sales
volumes, stepped-up marketing activities
TORONTO - Net earnings at Canada Bread Co., Ltd. in the third quarter ended Sept. 30 were C$13,980,000
($13,614,000), equal to C$0.55 per
share on the common stock, down
44% from C$25,050,000, or C$0.99 per
share, in the same period a year ago.
Earnings from operations before
restructuring and other related costs
were
C$32,429,000
($31,582,000),
down 12% from C$36,915,000. Canada
Bread said earnings were affected by
lower sales volumes and increased
marketing and promotional activities
in the fresh bakery business to support
new product launches.
Sales
totaled
C$411,364,000
($400,597,000), down 3% from
C$424,555,000 in the same period a year
ago, reflecting lower sales volumes and
currency translation impacts of a stronger Canadian dollar on sales denominated in U.S. dollars and British pounds.
"Our fresh bakery business benefited from price increases implemented earlier in the year, although
rising wheat prices may require further pricing action," said Richard Lan,
president and chief executive officer.
"While our frozen bakery business
was impacted by continued weaker
markets, initiatives are under way to
increase volumes and reduce costs.
We are also investing in promotions to
support exciting new product innovation under the Dempster's brand that
will support our continued leadership
bakingbusiness.com / world-grain.com

and growth in the higher nutrition
bakery segment."
Earnings from operations within
the Fresh Bakery segment fell 9%
to C$30,397,000 ($29,599,000) on a
1% decline in sales to C$285,232,000
($277,752,000).
"During the quarter, brand investment included marketing and promotional expenses to support Dempster's Smart 16, a line extension of
Dempster's Smart, which includes 16
whole grains and reduced sodium; the
launch of Dempster's rye bread in Ontario in the fourth quarter of 2010; and
extensions in Dempster's Oven Fresh
line," Canada Bread said.
Earnings from operations within
the Frozen Bakery segment fell 44%
to C$2,032,000 ($1,979,000) from
C$3,655,000. Sales in the division eased
8% to C$126,132,000 ($122,840,000)
from C$137,270,000.
"While volumes in the North American frozen business were largely
consistent with last year, earnings declined mostly due to increased factory
overhead costs," Canada Bread said.
For the nine months ended Sept.
30, Canada Bread posted net earnings of C$47,394,000 ($46,175,000),
or C$1.86 per share, down 24% from
C$62,469,000, or C$2.46 per share, in
the same period a year ago. Net sales
were C$1,195,358,000 ($1,164,744,000),
down 6% from C$1,273,598,000 in the
same period a year ago. MBN

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Milling & Baking News November 2, 2010 / 13

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Milling & Baking News - November 2, 2010

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