MEXICO CITY (Reuters) – Mexican breadmaker Grupo Bimbo posted a nearly 30% dip in second-quarter net profit on Tuesday after the company registered a non-cash benefit on its pension plan in the year-ago quarter.
Net profit slid to 4.30 billion pesos ($251.06 million), down from 6.08 billion pesos.
Operating income would have risen 10.4% if the pension bump were not taken into account, Bimbo said in a statement.
Revenues for the company, which sells buns, cakes, cookies, bagels, and tortillas across 34 countries, increased 4% to hit a second-quarter record of 100.37 billion pesos following price hikes, which were offset by the appreciation of the Mexican peso.
The firm’s U.S. and Canada region saw sales dip almost 2% in pesos, though they rose almost 12% in U.S. dollars. The Mexican peso has posted double-digit gains on the dollar since the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter rose 7.8% to 14.00 billion pesos.
($1 = 17.1156 pesos at end-June)
(Reporting by Kylie Madry and Aida Pelaez-Fernandez; Editing by Brendan O’Boyle)
