Tear Sheet: Grupo Bimbo S.A.B. de C.V.

To reflect current business conditions--including soft volumes in North America, core inflation that is still elevated, fierce competition, and a stronger Mexican peso--we have slightly revised down our top-line growth expectation for 2023. We now think revenue will increase close to 2.4% this year, to 408 billion Mexican pesos (MXN). Going forward, we expect Bimbo to execute its pricing strategy with discipline to protect its volumes toward the end of 2023 and in 2024, although its strategy will vary depending on geography and product category. We also maintain our view that Bimbo?s EBITDA margin will continue expanding, likely toward 14% at the end of this year. In our view, this will be mostly driven by its pricing capabilities--although price increases

...November 9, 2023 We still expect Grupo Bimbo S.A.B. de C.V. to post solid results in 2023 and 2024 despite soft volumes in certain markets, foreign exchange volatility, and a strong base for comparisons from 2022. To reflect current business conditions--including soft volumes in North America, core inflation that is still elevated, fierce competition, and a stronger Mexican peso--we have slightly revised down our top-line growth expectation for 2023. We now think revenue will increase close to 2.4% this year, to 408 billion Mexican pesos (MXN). Going forward, we expect Bimbo to execute its pricing strategy with discipline to protect its volumes toward the end of 2023 and in 2024, although its strategy will vary depending on geography and product category. We also maintain our view that Bimbo's EBITDA margin will continue expanding, likely toward 14% at the end of this year. In our view, this will be mostly driven by its pricing capabilities--although price increases will moderate relative...

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