Grupo Bimbo sets out Mexico-wide capex plans

Yahoo

7 days ago

Mexican bakery giant Grupo Bimbo plans to make investments worth more than $2bn across seven states in its domestic market through 2028.
Baja California, Yucatán, Mexico City, Nuevo León, Querétaro, Puebla, and the State of Mexico will benefit from the Grupo Bimbo projects, according to a government statement, which did not identify the specific plants operated by the company to receive the investments.
The programme will generate more than 2,000 direct jobs and 10,800 indirect jobs, the government said.
Under the government's Plan Mexico initiative, José Manuel González Guzmán, the president of Grupo Bimbo's operations in Mexico, outlined in the same statement how the investment "aims to increase the productive and technological capacity of its various plants, modernise its fleet of electric delivery vehicles, [and] promote the circular economy with sustainable packaging".
He was quoted as saying: "I believe that Mexico, with this Plan Mexico, will continue to grow in the coming years. This alliance we have, this strengthening of the economy, we must have confidence in it."
Grupo Bimbo had not responded to Just Food's request for more details on the planned investment projects and the facilities involved at the time of writing.
Ximena Escobedo Juárez, head of the Productive Development Unit and the Office of the Ministry of Economy, listed the municipalities in Mexico that will benefit from the investments.
They are: Mexicali and Tijuana in Baja California; Mérida in Yucatán; Azcapotzalco in Mexico City; Salinas Victoria in Nuevo León; El Marqués in Querétaro; the capital of Puebla; and Toluca and Lerma in the State of Mexico.
Meanwhile, Reuters' coverage of the investment programme last week also included comments from González on US tariffs, made during a press conference by Mexico President Claudia Sheinbaum.
"We believe that we will not be affected if any tariffs are imposed by the US," González was quoted as saying by the news agency.
Elsewhere, Grupo Bimbo has been expanding through M&A. It struck an acquisition for packaged breads supplier Karamolegos Bakery Romania, based in Ilfov, Bucharest, earlier this year.
And late last year, it snapped up Slovenia bakery business Don Don. The company also struck an acquisition in Brazil last September for the bakery group Wickbold.
Posting its first-quarter results in April, Grupo Bimbo said net sales reached a 'record' of 103.7bn pesos ($5.5bn), or 10.8% growth year-on-year.
In Mexico, Q1 sales rose 1.7% to 38bn pesos.
Group operating income dropped 1.8% to 6.5bn pesos, while adjusted EBITDA rose 8% to 12.8bn pesos. Net income declined 26.6% to 1.7bn pesos.
It was a mixed bag of results for the 2024 fiscal year. Net sales rose 2.1% to 408.3bn pesos, while operating income decreased 6.5% to 33.1bn pesos.
Adjusted EBITDA climbed 1% to 55.4bn pesos but net income retreated 18.9% to 12.5bn pesos.
"Grupo Bimbo sets out Mexico-wide capex plans" was originally created and published by Just Food, a GlobalData owned brand.
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