Mexico City, Oct. 25 - Grupo Bimbo S.A.B. de C.V. (“Grupo Bimbo” or “the Company”) today reported its results for the third quarter ended September 30, 2007.
America, led to a 6.7% rise in net sales from the year ago period, to Ps. 17.9 billion. This is attributable to steady volume gains and a better sales mix, as well as to pricing actions taken across all regions to offset the price escalation of the Company’s key raw materials.
Due to fluctuations in the international commodity markets, the Company continues to experience higher prices of wheat, oils and dairy when compared to the previous year’s levels. This resulted in continued pressure on the gross margin, which declined by 10 basis points year over year. However, a more efficient sales mix, selective pricing actions, and tighter controls of administrative expenses led to a 30 basis point improvement in the operating margin, to 10.3%.
Mainly as a result of higher sales and operating income and a decrease in financing costs, net majority income rose 18.3% year over year, with a 0.6 percentage point expansion in the net margin, to 6.6%.