U.S. buyouts shrink Mexico’s Grupo Bimbo’s profit

07/24/2018 Reuters

BimboMexican breadmaker Grupo Bimbo said on Tuesday its second-quarter net profit fell 87 percent compared to the year-earlier quarter, after it took a $105 million charge for a voluntary redundancy program.

The company said net profit was 195.5 million pesos ($9.8 million) between April and June. Revenue rose more than 11 percent, mostly due to strong volumes in Mexico and recent acquisitions, the company said.

The company’s U.S. subsidiary recently completed a voluntary redundancy program.

Bimbo in recent years has expanded into China, India and Morocco, while growing its U.S. footprint. ($1 = 19.8730 pesos).

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Mexico’s Bimbo suspends delivery routes in violent resort town Acapulco

07/21/2018 Reuters

Bimbo.PNGMexican bread-maker Bimbo on Saturday said that it had suspended some delivery routes in the violent state of Guerrero, the latest company to scale back its operations in what was once a glamorous tourist hub.

To guarantee the security of its employees, Bimbo has temporarily suspended nine routes in the resort town of Acapulco, a spokesman told Reuters. The affected routes represent less than 1 percent of the company’s distribution in Guerrero, the spokesman added.

The company made the decision after two of its delivery trucks were burned. Bimbo has notified authorities of the crimes, the spokesman said.

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Mexico sends jobs to the US, not just workers

bimboMSN Now, 5/15/2013

Mexico outsourcing jobs to America? No, it’s not a headline from The Onion, it’s really happening. Mexican baking company Groupo Bimbo’s Mexico City factory was completely overwhelmed by American appetites for its tasty treats, especially among the fast-growing Hispanic population, who are hungry for the taste of home. But instead of opening another Mexico-based kitchen, it headed across the border to set up shop. So far the baked goods behemoth has opened 80 plants in the U.S., hiring around 40,000 American workers to make everything from Bimbo Panque con Nuez (Pecan Pound Cake) to Barcel Takis Guacamole. So much for those authentic Mexican-made guacamole-flavored tortilla chips — these snacks are made in America.

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Mexico eyes carbon capture, more wind power

Reuters, 12/6/2010

Mexico is studying two pilot carbon capture and storage projects and aims to quintuple wind power capacity by 2012 to trim the carbon footprint of its huge energy sector, the country’s energy minister said.

New rules for calculating electricity transmission costs have attracted several large firms including cement maker Cemex and baker Bimbo into building massive wind farms to supply their factories without subsidies and more firms are lining up to build projects, said Energy Minister Georgina Kessel in an interview on Monday.

“There will be news soon. This is an example of how appropriate regulation can make renewable energy and cogeneration profitable,” said Kessel, insisting that no subsidies were behind the boom.

Mexico, the world’s No. 7 oil producer, has set itself the goal of getting more than a quarter of its energy from renewable sources including hydroelectricity by 2012, and is aiming to demonstrate that although it is still a developing nation it is able to sustain economy growth even as it reduces greenhouse gas emissions.

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Mexico’s Bimbo backs $200 mln wind farm for power

Reuters, 12/3/2010

Grupo Bimbo, one of the world’s biggest breadmakers, said on Thursday that it was teaming up with a Spanish company to build a $200 million wind farm to supply the bulk of electricity needed for its Mexico operations.

“This is going to be the biggest conversion from fossil fuels to renewable energies that any food company has carried out in the world,” Bimbo Chief Executive Officer Daniel Servitje told Reuters in a telephone interview.

“Given the efficiencies of wind generation, it will be both a profitable project for us, as well as very positive for the environment.”

The wind farm, to be built by the Mexican affiliate of privately held Spanish renewable energy company Renovalia, should provide nearly 100 percent of the electricity needed to run Bimbo’s operations in Mexico, Servitje said.

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Bimbo: from corner bread maker to bakery giant

Reuters, 11/9/2010

Grupo Bimbo (BIMBOA.MX), which is buying Sara Lee’s North American bakery business, sold its handmade bread loaves for the first time in 1945, from a small shop in the Mexican capital.

Six decades later, the company will become the world’s leading bread maker when it closes on the acquisition of the Sara Lee Corp (SLE.N) business for $925 million next year.

Its name, created by combining the words Bambi and bingo, has entered the Mexican culture and language but still raises eyebrows north of the border — where the company will now be the No. 1 player in the fresh bread market.

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Grupo Bimbo to Buy Sara Lee Unit for $959 Million

Business Week, 11/9/2010

Grupo Bimbo SAB, the world’s largest bread maker, agreed to buy Sara Lee’s North American bakery business for $959 million as it boosts sales outside Mexico.

The transaction will likely close during the first half of 2011 and gives Mexico City-based Bimbo the right to the Sara Lee brand on bakery goods in the U.S. and regional brands such as Heiner’s and Rainbo, the company said today in a statement.

Bimbo, which makes Entenmann’s cakes, Thomas’ English Muffins and Mrs. Baird’s breads, currently gets most of its sales in Mexico. Buying the Sara Lee unit may help make the U.S. Bimbo’s largest market, building on its $2.5 billion purchase of George Weston Ltd.’s U.S. baking operations last year.

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