Grupo Bimbo's Q4 net profit down 26% year-over-year to 1.01B Mexican pesos on rising costs, decline of peso; sales up 37% to 41.62B pesos; full-year 2011 net profits fall 1.2% to 5.33B pesos

LOS ANGELES , February 23, 2012 () – On Feb. 22, Grupo Bimbo SAB, a Mexican baked goods company, reported that its net profits during the fourth quarter of 2011 fell 26% year-over-year to 1.01 billion Mexican pesos (US$79 million), NASDAQ reported Feb. 23.

Bimbo’s quarterly gross margin year-over-year fell from 51.9% to 51% due to rising costs for material materials, the deprecation of the peso and integration expenses relating to the company’s acquisitions.

The company reported that sales increased 37% to 41.62 billion pesos, primarily driven by Bimbo’s integration of Sara Lee Corp.’s U.S. and Spanish operations, integration of Compañía de Alimentos Fargo S.A.’s Argentinean operations and organic growth.

Bimbo’s operating income during the fourth quarter of 2011 rose 8.4% to 2.90 billion pesos. Year-over-year, the company’s operating margin fell from 8.8% to 7%.

The company’s earnings before interest, taxes, depreciation and amortization rose 15% to 4.60 billion pesos, yielding an Ebitda margin of 11%. During the fourth quarter of 2010, the Ebitda margin was 13.2%.

Bimbo’s full-year net profit fell 1.2% to 5.33 billion pesos, yielding a net profit margin of 4%. Full-year net sales rose 14.1% to 133.73 billion pesos in 2011.

The primary source of this article is NASDAQ, New York, New York, on Feb. 23, 2012.

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