February 26, 2001
Contact in Mexico City:
Alberto Bercowsky
Investor Relations
Grupo BIMBO, S.A. de C.V.
Tel: (525) 258-7662
[email protected]
Grupo BIMBO reports 2000 results, during which net sales
and operating income increased by 2.7% and 5.3%,
respectively.
Figures have been prepared in accordance with Generally Accepted Accounting Principles in
Mexico and are expressed in millions of constant pesos as of December 31, 2000.
Mexico City
Contacts in New York:
Maria Barona / Melanie Carpenter
i-advize Corporate Communications
Tel: (212) 406-3690
[email protected]
Grupo BIMBO S.A. de C.V., (“Grupo BIMBO” or “the Company”) (BMV:
BIMBOA), the largest food company in Mexico and one of the leaders in Latin
America, announced today its results for the fourth quarter and twelve months
ended December 31, 2000.
Full Year Highlights:
•
Net Sales increased by 2.7%
•
Operating Income increased by 5.3%
•
Net Margin dropped to 5.8% from 7.0% in 1999 as a result of a
less favorable Integral Cost of Financing
•
Return on Net Operating Investment (RNOI) increased 11.6%
•
EBITDA increased by 4.4%
Operating Results
•
Net Sales
For the full year of 2000, net sales increased to Ps. 31,477 million, 2.7% over
the net sales reported for 1999, with variations in the performance of each of
the regions in which the Company operates. Sales in Mexico grew 1.6%; in
the United States, sales rose by 5.3%; and in Latin America, sales grew
7.3%.
12 MONTHS 1999
www.grupobimbo.com.mx
12 MONTHS 2000
CHANGE
MEXICO
PS. 22,964
PS. 23,335
1.6%
USA
PS. 5,463
PS. 5,754
5.3%
LATIN AMERICA
PS. 2,226
PS. 2,388
7.3%
TOTAL
PS. 30,653
PS. 31,477
2.7%
February 26, 2001
In Mexico, the best performing subsidiaries, with steady growth throughout
the year, were Organización Bimbo, the packaged baked goods business,
and Organización Barcel, producer of chips and salted snacks. During the
year, the salted snacks market grew significantly and Barcel was able to
maintain its market share due to its strategy of product differentiation and a
greater number of marketing campaigns compared to the previous year.
Net sales of Organización Marinela, producer of cakes, cookies and crackers,
declined during 2000 compared to 1999 due to stiffer competition in both
pricing and from new products, particularly in the snacks and cookie
segments. To offset these effects, the Company is focusing efforts on its
“snacks-on-the-go” categories, which offer higher nutritional value and have
grown increasingly popular.
Other important factors that affected Mexican operations during 2000 include
the fact that there were no price increases in the Company’s main product
categories as well as the divestment of the agro business in the fourth quarter
of 1999, which would have contributed an additional 0.5 percentage points to
Mexican sales.
1999
Net Sales
Mexico
6,200
Millions of pesos
6,065
5,962
6,000
5,867
5,782
5,724
5,800
5,600
2000
5,540
5,782
5,577
5,400
5,200
5,000
1Qtr
2Qtr
3Qtr
4Qtr
In the United States, net sales generated by Grupo Bimbo through its
subsidiary Bimbo Bakeries USA, posted favorable results due to the following
factors: i) higher sales in the Southeast due to the launching of Mrs. Baird’s
products in other states; and ii) 3 months of additional revenues from Four-S
Bakeries, which was acquired during March of 1999.
In addition, Bimbo Bakeries USA converted its accounting cycles from a 28day period in 1999 to calendar months in 2000, which generated an apparent
additional growth in sales reported for the first nine months. This situation
was adjusted during the fourth quarter, which was one of the factors that
contributed to the decrease in sales, together with weak tortilla sales in
California.
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February 26, 2001
1999
Net Sales
United States
2,000
2000
Millions of pesos
1,680
1,700
1,472
1,389
1,400
1,199
1,454
1,439
1,301
1,283
1,100
800
500
1Qtr
2Qtr
3Qtr
4Qtr
The Central and South American operations posted positive growth during the
full year of 2000, with sales increases in almost all of the countries in which it
operates. The reason behind this strong performance was an improved
marketing strategy combined with a recovery in the regional consumption
levels.
1999
2000
Net Sales
Latin America
750
Millions of pesos
700
640
650
604
600
560
574
570
548
567
550
550
500
1Qtr
•
2Qtr
3Qtr
4Qtr
Cost of Goods Sold
The Company’s COGS continued to decline due to improvements in the
Company’s operating efficiency as well as the drop in raw material prices and
the appreciation of the peso, which favorably affects raw material prices
subject to international pricing levels. In terms of percentage of sales, COGS
dropped 1.3 percentage points to 43.8% in the full year of 2000 compared to
45.1% reported for the same period in 1999. This translated into a gross
margin of 56.2%, the highest margin reported by the Company in the last 15
years.
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February 26, 2001
Cost of Goods Sold
1999
2000
% of Net Sales
60
55
50
46.0
46.2
45.0
45
40
44.9
43.5
43.3
43.5
43.4
2Qtr
3Qtr
4Qtr
45.1
43.8
35
30
25
1Qtr
§
Accumulated
Operating Expenses
During the full year 2000, the Company’s operating expenses remained
stable with an increase of 1.1 percentage points, reaching 45.9% during 2000
compared to 44.8% during 1999. This was due to higher advertising and
promotion costs, as well as expenses related to the implementation of a new
Enterprise Resource Planning (“ERP”) systems and the consulting fees
incurred in several projects.
Operating Expenses
1999
2000
% of Net Sales
60
55
50
46.7
46.8
47.0
44.0
45
40
44.9
45.8
1Qtr
2Qtr
44.6
43.2
3Qtr
4Qtr
44.8
45.9
35
30
25
Accumulated
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www.grupobimbo.com.mx
February 26, 2001
Operating Income
Due to the aforementioned factors, operating income increased 5.3% in the
full year of 2000 to Ps. 3,251 million, from Ps. 3,089 million reported for the
same period of the previous year. Thus, operating margin increased 0.2
percentage points increasing to 10.3% from 10.1%, respectively, the highest
reported for the past 6 years.
Operating Income
Millions of pesos
1999
2000
% of Net Sales
3,500
13.4
3,000
2,500
9.9
9.1
3,089
3,251
10.4
15
12
12.5
9
2,000
9.5
8.4
1,500
8.0
6
1,042 1,074
1,000
664
650
773
591
792
755
3
500
0
0
1Qtr
2Qtr
3Qtr
4Qtr
Accumulated
Return on net operating investment (RNOI) showed favorable results, mainly
due to the increase in sales and the operating income as well as the decrease
in net operating investment due to the divestiture of the agro business, as
illustrated in the following table:
1
12 MONTHS 2000
CHANGE
2.7%
PS. 30,653
PS. 31,477
1
OPERATING INCOME ( OI)
PS. 3,089
PS. 3,251
5.3%
2
NET OPERATING INVESTMENT (NOI)
PS. 17,028
PS. 16,058
(5.7%)
10.1 %
10.3%
1.9%
SALES
(S)
12 MONTHS 1999
OPERATING MARGIN ( OI/S)
TURNOVER (S/NOI)
RNOI
1
2
( OI/NOI)
1.80X
18.1 %
1.96X
20.2%
8.9%
11.6%
Figures accumulated and annualized ending in December 2000.
Annual Averages
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February 26, 2001
•
Operating Income plus Depreciation and Amortization
Regarding the Company’s cash generation capacity, the accumulated
EBITDA for the year remained strong, showing a marginal increase of 0.2
percentage points reaching 14.2% over sales.
•
Integral Cost of Financing
The integral cost of financing went from an income of Ps. 375 million during
1999 to a cost of Ps. 74 million during 2000. This result reflects the
Company’s lower level of indebtedness as well as the inflation and exchange
rates registered during the year.
•
Majority Net Margin
Majority net margin before extraordinary items decreased to 5.8% from 6.6%
in 1999. Additionally, since in 1999 the profit from the sale of the agro
business was reported as an extraordinary item, majority net margin, after
extraordinary items fell to 5.8% compared to 7.0% reported during the
previous year.
•
Financial Structure
During the year 2000, the Company’s financial structure continued to
significantly strengthen as a result of its important cash generation.
•
Investments and Financing Sources (CAPEX)
Estimated 2001 capital expenditures are expected to reach US$ 210 million,
which will be used for maintenance and organic growth. These resources will
be taken from the Company’s cash flow.
•
Recent Events
On December 8, 2000, Grupo Bimbo aquired Guatemalan baked goods
producer La Mejor.
Grupo Bimbo will be able to use La Mejor’s strong distribution network in
Guatemala, the synergies achieved will allow the company to market its
products in the countries of El Salvador and Honduras.
Company Description
Grupo BIMBO is one of the three largest baking companies in the world in terms of production and sales volumes. A leader in Mexico and
Latin America, Grupo BIMBO has 75 plants and distributors strategically located in 15 countries throughout the Americas and Europe with
over 61,000 employees and over 800 products. Grupo BIMBO’s shares are traded on the Mexican Stock Exchange since 1980 under the
ticker BIMBOA.
Forward-Looking Statements
This earnings release contains certain forward-looking statements concerning Grupo Bimbo’s operations, economic performance and
financial condition. These forward-looking statements are based on currently available competitive, financial and economic data as well as
management’s views and assumptions regarding future events. The Company’s results may differ materially from those suggested in the
forward-looking statements for a variety of reasons, including: pricing, cost of raw materials, changes in laws and regulations or economic
or political conditions in any of the countries in which the Company operates. Consequently, the Company wishes to caution all readers not
to place undue reliance on any forward-looking statements.
6
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February 26, 2001
CONSOLIDATED INCOME STATEMENT
th
(MILLIONS OF CONSTANT MEXICAN PESOS AS DECEMBER 31 , 2000)
NET SALES
MEXICO
1999
1Q
2Q
3Q
2000
4Q
ACCUMULATED
%
1Q
2Q
3Q
4Q
ACCUMULATED
%
7,299
5,540
7,408
5,577
7,634
5,782
8,312
6,065
30,653
22,964
100.0
74.9
7,740
5,782
7,770
5,724
7,925
5,867
8,041
5,962
31,477
23,335
100.0
74.1
1,199
560
1,283
548
1,301
550
1,680
567
5,463
2,226
17.8
7.3
1,389
570
1,472
574
1,454
604
1,439
640
5,754
2,388
18.3
7.6
COST OF GOODS SOLD
3,355
3,424
3,437
3,613
13,829
45.1
3,473
3,362
3,448
3,490
13,773
43.8
GROSS PROFIT
3,944
3,984
4,197
4,699
16,824
54.9
4,268
4,408
4,477
4,551
17,704
56.2
OPERATING EXPENSES
3,280
3,393
3,405
3,657
13,735
44.8
3,618
3,636
3,723
3,477
14,453
45.9
OPERATING INCOME
MEXICO
UNITED STATES
664
676
7
591
565
61
792
808
21
1,042
1,132
(44)
3,089
3,180
45
10.1
10.4
0.1
650
718
(44)
773
805
(5)
755
773
1
LATIN AMERICA
(18)
(35)
(37)
(47)
(137)
(0.4)
(24)
(27)
(186)
96
(73)
(58)
(47)
79
(66)
124
(107)
(65)
77
(6)
(375)
250
(106)
(1.2)
0.8
(0.3)
37
50
12
(50)
42
(105)
(209)
(90)
(84)
(137)
(519)
(1.7)
(26)
12
UNITED STATES
LATIN AMERICA
INTEGRAL COST OF FINANCING
INTEREST PAID (NET)
EXCHANGE (GAIN) LOSS
MONETARY (GAIN) LOSS
1,074
1,122
(33)
3,251
3,419
(82)
10.3
10.9
(0.3)
(19)
(15)
(86)
(0.3)
128
(24)
152
(40)
(54)
4
74
14
64
0.2
0.0
0.2
10
(4)
0
(0.0)
OTHER FINANCIAL OPERATIONS
179
67
6
(63)
189
0.6
17
1
65
25
108
0.3
PROVISION FOR TAXES AND PROFIT SHARING
EQUITY IN RESULTS OF ASSOCIATED COMPANIES
MINORITY INTEREST
329
7
17
220
7
(8)
306
5
28
399
24
19
1,255
43
56
4.1
0.1
0.2
270
9
8
402
6
(0)
276
12
10
310
19
10
1,259
46
28
4.0
0.1
0.1
MAJORITY NET INCOME
332
376
523
921
2,151
0.0
7.0
328
426
287
788
1,829
0.0
5.8
EBITDA
MEXICO
950
872
918
799
1,009
969
1,388
1,293
4,265
3,932
13.9
12.8
944
922
1,062
1,006
1,065
992
1,381
1,339
4,452
4,259
14.1
13.5
UNITED STATES
53
115
44
78
290
0.9
5
45
51
10
111
0.4
LATIN AMERICA
26
5
(4)
16
43
0.1
17
11
22
32
82
0.3
1999
2000
ê
ê%
24,334
17,048
24,590
17,533
1.1
2.8
4,805
2,481
6,704
4,406
2,651
7,426
(8.3)
6.9
10.8
13,530
13,425
(0.8)
8,103
8,890
9.7
716
3,996
1,422
2,659
98.6
(33.5)
STOCKHOLDERS' EQUITY
16,232
15,700
(3.3)
CONSOLIDATED STATEMENT OF
CHANGES IN FINANCIAL POSITION
1999
2000
CONSOLIDATED NET INCOME
2,207
1,857
+ (-) ITEMS NOT REQUIRING CASH
1,299
701
NET RESOURCES OBTAINED FROM RESULTS
3,507
2,558
(937)
1,219
2,570
3,777
CONSOLIDATED BALANCE SHEET
th
(MILLIONS OF CONSTANT MEXICAN PESOS AS DECEMBER 31 , 2000)
TOTAL ASSETS
MEXICO
UNITED STATES
LATIN AMERICA
CURRENT ASSETS
PROPERTY, PLANT AND EQUIPMENT (NET)
TOTAL LIABILITIES
SHORT-TERM BANK LOANS
LONG-TERM BANK LOANS
(MILLIONS OF CONSTANT MEXICAN PESOS AS DECEMBER 31 th, 2000)
WORKING CAPITAL FLOW
NET RESOURCES GENERATED BY OPERATIONS
EXTERNAL FINANCING
(910)
(741)
INTERNAL FINANCING
1,205
(213)
296
(954)
(1,193)
(993)
TOTAL SOURCES OF CASH
INVESTMENTS
NET INCREASE (DECREASE) IN CASH AND MARKETABLE
SECURITIES
CASH AND MARKETABLE SECURITIES AT THE BEGINNING OF
THE YEAR
CASH AND MARKETABLE SECURITIES AT THE END OF THE
YEAR
1,673
1,830
830
2,561
2,503
4,391
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