Net sales for the October-December period jumped 14.9% to 97,445 million pesos ($4.8m), while the full year results showed a 5.4% increase to reach a record level of 348,887 million pesos ($17.23m).
According to Bimbo’s approachable, action-oriented and market-driven leader Daniel Servitje, these exceptional results were attributable to the “hard work of our teams, the strong execution of our plans and strategies, our ample diversification and the strength of our brands”, while “transforming the business in a complex operating environment”.
Price increases for 2022
The revenue climb was driven by a mix of favourable prices for the company’s 100+ brand, however, on a call with analysts, chief financial officer Diego Gaxiola said Bimbo is planning to increase prices this year to catch up with inflation, labour shortages and supply chain constraints.
Operating income in the fourth quarter rose 17.4% to 9,998 million pesos and the margin expanded 30 basis points – FY202: +34.3% to 34,126 million pesos; 210 basis points – mainly due to productivity savings from past restructuring strategies and cost-cutting projects, partially offset by the abovementioned higher cost of sales.
Adjusted EBITDA reached a record level for both the quarter (+5.8% to 13,516 million pesos) and full year (+8.8% to 49,178 million pesos), attributable to the strong sales and operating performance across the company.
Regional breakdown
Despite difficult comparisons as the company lapped COVID-driven performance in 2020, sales in North America increased 12.4%, thanks to strong market share performance, successful implementation of the pricing strategy and excellent in-store execution.