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

We have revised our 24-month forecast for Grupo Bimbo S.A.B. de C.V. We now expect weaker credit metrics in 2024, with net debt to EBITDA at roughly 3x and a mild reduction in leverage through 2025-2026. We expect improved performance in coming quarters on the back of steady performance in Mexico and Latin America and solid growth in the Europe, Asia, Africa (EAA) region. But we also see continued softness in consumption across categories in Bimbo's North America business going forward. Moreover, the internal reorganization in the North America business continues, with the aim of improving distribution capabilities and enhancing product offerings through different channels. The outlook for Bimbo?s key input commodities remains favorable. This, combined with expense dilution in

...November 22, 2024 What's New: We have revised our 24-month forecast for Grupo Bimbo S.A.B. de C.V. We now expect weaker credit metrics in 2024, with net debt to EBITDA at roughly 3x and a mild reduction in leverage through 2025-2026. We expect improved performance in coming quarters on the back of steady performance in Mexico and Latin America and solid growth in the Europe, Asia, Africa (EAA) region. But we also see continued softness in consumption across categories in Bimbo's North America business going forward. Moreover, the internal reorganization in the North America business continues, with the aim of improving distribution capabilities and enhancing product offerings through different channels. The outlook for Bimbo's key input commodities remains favorable. This, combined with expense dilution in the next 24 months, should boost the EBITDA margin to 14%-15%. Meanwhile, the company has been more active than expected on the capital deployment front, particularly with respect to...

Full Report