Milling & Baking News - March 8, 2022 - 41

TUES | 03 08 2022
issues on the pricing. And I'd say also,
it's a complicated issue with everything
going on - omicron coming down, school
reopenings, etc., mask mandates being
dropped. I think much of this has to do
with how consumer behavior changes
going forward. And we'll have to wait and
see for a few more weeks, if not months. "
Mr. Penny said Bimbo was pleased with
the performance it achieved given the inflationary
pressures the company has faced.
" I think we're going to have continued
margin pressure, although I think we're
going to also have the opportunity to
deliver improved top-line and bottom-line
performance, " he said. " The big question
is, where does inflation go from here?
Does it get even worse than it already
is? Can we cover it through whether it's
price or productivity or other efforts?
I think that remains to be seen. But I'm
confident we're going to manage through
the inflation pressures as best we can and
hopefully continue to deliver fairly solid
performance. "
Responding to an analyst's question,
Diego Gaxiola, chief financial officer,
said the worsening security situation
in Ukraine poses potential hazards
for Bimbo. He added that Bimbo is well
hedged going into 2022.
" This is an additional risk, particularly
for wheat, " he said. " We do not disclose the
impact because at the end we will continue
to do the hedging strategy. And as wheat
goes up, we will start to face inflation,
probably more an additional inflation
toward the end of the year and 2023. "
Grupo Bimbo net majority income in
" Our top-line run rate,
when compared to
pre-pandemic levels,
continues to be very
strong. "
- Daniel Servitje,
Grupo Bimbo SAB de CV
specific hedges that we have by commodities,
but as part of our hedging strategy,
what I can tell you is that we ended 2021
with approximately 70% of the commodity
needs that we have for the full year. Now
this doesn't mean that we will not see any
2021 was 15.9 billion pesos ($785 million),
up 75% from 9.1 billion in 2020. Net majority
margin widened to 4.6% from 2.8% in
2020. Net sales were 348.9 billion pesos
($17.2 billion), up 5% from 291.9 billion.
Highlights of the year included the
company's strongest return on equity in
10 years - 15.2%. During the year the company
completed six strategic acquisitions,
including two in the United States, two in
India, one in Spain and one in Brazil.
Fourth-quarter net majority income was
4.82 billion pesos ($238 million), up 67%
from 2.9 billion pesos a year earlier. Net
majority margin widened in the final quarter
of the year to 5%, up from 3.4% the year
before. Net sales were 97.45 billion pesos
($4.81 billion), up 15% from 84.8 billion.
The strong performance in the quarter
was attributed to the company's strong
sales and operating performance. MBN
PUSH INTO INDIA HIGHLIGHTS 2021
ACQUISITIONS BY GRUPO BIMBO
MEXICO CITY - Enumerating corporate highlights of
2021, Grupo Bimbo SAB de CV said it had completed
six acquisitions during the year.
Perhaps the largest area of expansion for the
company last year was in India, where Grupo Bimbo
made two acquisitions. The first was Modern Foods,
the market leader in South India. The second was
Kitty Bread, the second largest baking company in
northern India.
Modern Foods operates seven baking plants, and
Bimbo said in February 2021 the acquisition was an
important step toward the company's " long-term
strategy to grow in India. "
Later in the year Bimbo disclosed its acquisition
of Kitty Bread. The company produces a wide range
of bread varieties, including white, brown, whole
wheat and fruit bread, as well as other products.
In the United States, Bimbo made two acquisitions
in 2021, though the target companies were in
specialty product spaces rather than conventional
baked foods.
In July, Bimbo said it had acquired Emmy's
bakingbusiness.com
Organics based in Ithaca, NY. Emmy's is a leading
producer of ultra-premium organic cookies and a
major player in gluten-free cookies.
" This acquisition gives Grupo Bimbo an entry
point into the quickly growing better-for-you cookie
and sweet baked goods market, " the company said.
Moving into another area of snacking, Bimbo in
November said it had acquired Popcornopolis, one
of the fastest growing popcorn brands. Based in
Vernon, Calif., in the Los Angeles area, Popcornopolis
offers popcorn in a wide variety of flavors and
formats.
In a move in South America, Grupo Bimbo in
November said it had acquired the Brazil business
of Aryzta SA. Aryzta do Brazil makes products
that include bread, buns, cakes, croissants, pies,
muffins, cookies, brownies, cinnamon rolls, cheesecakes
and quiches. Bimbo said the acquisition
provides strong positioning in the quick-service
restaurant business.
At the start of the year, Bimbo said it had
acquired a plant from Cerealto Siro Foods in Medina
del Campo, Spain.
Bimbo described the
facility, located northwest
of Madrid, as a state-of-the-art plant dedicated to
producing sweet goods for Mercadona, a supermarket
chain based in Tavernes Blanques, north
of Valencia in eastern Spain. Bimbo said the transaction
allows it to enter the sweet baked goods
private label market in Spain. In October 2019,
Bimbo acquired a plant in Paterna, Spain, also from
Cerealto Siro Foods. The Paterna plant is located
on the outskirts of Valencia. MBN
MILLING & BAKING NEWS 41
GRUPO BIMBO SAB DE CV
http://www.bakingbusiness.com
Milling & Baking News - March 8, 2022

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