“2021 was an exceptional year for Grupo Bimbo, we delivered record levels of Sales, Volume and Profit while transforming the business in a complex operating environment. Our CAPEX investments also reached a record level given the opportunities we are seeing across our markets and categories. These results reflect the hard work of our teams, the strong execution of our plans and strategies, our ample diversification and the strength of our brands..”
-Daniel Servitje, Chairman and CEO
“2021 results were outstanding, especially when we consider the difficult comparison from the 2020 remarkable results we are cycling, the FX conversion impact, overall inflation and the complicated operating environment in several countries. We surpassed our Sales and our Effective Tax Rate guidance, achieved our Adjusted EBITDA guidance and remain confident that 2022 will be a strong year, as we strengthen our investments to be more efficient and to enhance our global presence.”
-Diego Gaxiola, CFO
Grupo Bimbo’s net sales reached record levels for the fourth quarter with 97,445 million pesos, 14.9% more than in the same period last year. This is mainly due to strong volumes performance and favorable price /mix in all regions, which was partially offset by FX rate effect.
In 2021, net sales also reached a record level totaling 348,887 million pesos, 5.4% more than in 2020, due to the strong volumes performance and favorable price/mix in all regions, partially offset by the exchange rate effect. Excluding the FX rate effect, sales increased 9.3%.
In the fourth quarter, net sales in Mexico increased 21.5% over the same period in 2020 as a result of volume growth, a favorable product mix, and price increase. All channels posted a double-digit growth, as did the snacks, confectionery, snack cakes, cookies, sweet baked goods, sliced bread, and buns categories. For the full year, sales grew 13.5% compared to the previous year.
In North America, net sales grew 12.9% in Mexican pesos and 12.4% in U.S. dollars, despite the difficult comparison by the Covid-19 driven performance in 2020. Highlighting the strong market share performance, the successful implementation of the pricing strategy, and the excellent execution at the point of sale.
Meanwhile, net sales in EAA (Europe, Asia, and Africa) grew 16.7% in pesos (17.7% excluding FX rate effect) due to the strong volume performance - mainly in Iberia - the price increases, the contribution of the acquisitions completed in Iberia and India, and the recovery of QSR’s business in the region.
In Latin America, net sales reported an increase of 18.5% in pesos (24.6% excluding the FX rate effect) compared to the same period of 2020, as a result of a favorable price/mix across their organizations, highlighting Brazil, Chile, Paraguay, Colombia and all of Latin Centro (which reached record of sales), in addition to the inorganic contribution from the acquisition of Aryzta do Brazil.
The Adjusted EBITDA reached a record level for a fourth quarter, totaling 13,516 million Mexican pesos, a 5.8% growth over the same period of 2020. For the full year, it also reached a record level at 49,178 million Mexican pesos, a 8.8% increase over the previous year.
The Net Majority Income grew 66.9% during the quarter, and the margin expanded 160 base points. For the full year it increased 74.7%, and the margin expanded 180 base points.
The Effective Tax Rate as of December 31, 2021, totaled 34%.
For the eighth consecutive year, Grupo Bimbo occupied the first position in Merco’s 2021 ESG Responsibility Ranking in Mexico.
Learn more about our report for the fourth quarter of 2021 and year 2021 by clicking here.