Milling & Baking News - March 5, 2013 - 15

Financial Results



for the difference, as the company has
now more than lapped its acquisition
of the Sara Lee business. The higher
sales also reflected “pricing actions
taken in late November, and volume
growth at the end of the period due
to new opportunities in the marketplace,” the company said.
Hostess Brands, Inc. ceased operations in late November 2012, instantly
removing a large amount of capacity
and a major competitor from the marketplace.
“These gains were partially offset by
a less favorable dollar-peso exchange
rate; sales in dollar terms would have
risen 11.1%,” Bimbo added. “Sequential volume growth continued to trend
positively, with the sweet baked goods
and breakfast categories outperforming in the period.”
Overall operating expenses as a
percentage of sales grew in the fourth
quarter at Grupo Bimbo, in part because of the higher expense structure of the Sara Lee operations in the
United States, especially distribution
expenses, Bimbo said.
“These effects were partially offset
by the benefits obtained from synergies and waste reduction initiatives
in the United States totaling approximately $44 million and credited to
operating expenses,” Bimbo said. “For
the full year, synergies and waste reduction initiatives generated approximately $120 million in savings.
“Additionally, as a result of International Financial Reporting Standards
compliance, operating expenses benefited from the reclassification of the
annual financial expense relating to
pension funds in the U.S. and Mexico.
The 513 million pesos reclassified from
operating expenses to financial expenses compares to the 265 million pesos similarly reclassified in the fourth
quarter of 2011.”
Overall operating expenses at Grupo Bimbo represented 44.6% of net
sales in 2012, compared to 43.5% in
the 2011.
Bimbo’s effective tax rate for 2012
was 47.3%, up from 35.6% in 2011. The
higher rate reflected a fourth-quarter
tax charge that raised the company’s
effective rate in the final quarter to
82%, versus 40.3% the year before.
“This reflects mainly a more conservative approach toward the expected
recovery of previous fiscal losses in
Brazil, in accordance with International Financial Reporting Standards,” the
company said. “This new approach
suggests that the amortization of previously registered losses may take
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Milling & Baking News March 5, 2013 / 15

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Milling & Baking News - March 5, 2013

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