Grupo Bimbo (BIMBOA) Q1 2025 earnings summary

Executive summary

• Achieved record-breaking consolidated and first-quarter sales in Q1 2025, with strong performance in Mexico and EAA, despite volatile macroeconomic and political environments.

• High single-digit EBITDA growth, though margin contracted due to North America challenges and ongoing transformation investments.

• Recognized as one of the world's most ethical companies for the ninth consecutive year; 45% of sales meet or exceed the 3.5-star Health Star Rating.

• Global leader in grain-based foods, operating in 35 countries with over 100 brands and 9,000 products.

• Focused on health, sustainability, and evolving consumer trends, with a robust ESG strategy and progress on key goals.

Financial highlights

• 1Q25 Net Sales grew 10.8% year-over-year to record levels, driven by innovation, productivity, and recent acquisitions.

• Adjusted EBITDA increased at a high single-digit rate; margin contracted 30 bps to 12.4% due to North America challenges.

• Gross Profit rose 11.8% to Ps. 54,463 million; Gross Margin expanded 50 bps to 52.5%.

• Net Debt/Adjusted EBITDA at 2.9x as of 1Q25, unchanged from year-end 2024.

• Net Majority Income dropped 26.6% to Ps. 1,770 million, reflecting lower Operating Income and higher financing costs.

Outlook and guidance

• 2025 guidance: high single-digit net sales growth, mid single-digit adjusted EBITDA growth, and CAPEX of US $1.4–1.5 billion.

• Guidance revised downward due to stronger Mexican peso and softer North American consumption, reducing top-line growth by 2 percentage points.

• Anticipates gradual improvement in H2 2025 as transformation benefits materialize.

• Management remains confident in long-term value creation despite macroeconomic and political volatility.