MEXICO CITY — North American sales at Grupo Bimbo S.A.B. de C.V. in the third quarter ended Sept. 30 totaled 37,569 million pesos ($1,968 million), up 3.4% from 36,327 million pesos in the same period a year earlier.
“Net sales increased 3.4% as a result of positive performance of the sweet baked goods and snacks categories in the U.S., as well as strong volume and market share gains in Canada, coupled with new product launches such as Arnold Brownberry Oroweat No Added Nonsense and FX rate benefit,” Bimbo said. “This was partially offset by the portfolio optimization initiative, continued compression of the private label category and a plant flooding in Canada during the second quarter.”
Operating income of Bimbo Bakeries USA in the third quarter was 1,684 million pesos ($88.2 million), down 15% from 1,989 million pesos during the third quarter last year. In the current year, the company took a $48 million non-cash charge related to the adjustment of the company’s multi-employer pension plan liability, reflecting current interest rate levels.
Adjusted EBITDA for the North American division in the third quarter was 4,117 million pesos ($215.6 million), up 14% from 3,611 million pesos in 2018. The adjusted EBITDA margin for North America widened 110 basis points to 11%, versus 9.9% in the third quarter last year. Profitability was boosted in part due to the efficiencies gained from past restructuring initiatives, improved portfolio mix from growth of strategic brands and snacks and trade spend optimization, Bimbo said.
Net majority income of Grupo Bimbo during the quarter was 1,940 million pesos ($101.6 million), up nearly 7% from 1,815 million pesos in the third quarter last year. Aggregate sales were 74,965 million pesos ($3,926 million), up 3.2% from 72,646 million pesos a year earlier.
The company said its total debt was 102 billion pesos on Sept. 30, versus 89.8 billion nine months earlier. The company’s average debt maturity was 13.8 years with an average interest rate of 6%. Of the total, 59% was denominated in U.S. dollars, 36% in pesos and 5% in Canadian dollars.