MEXICO CITY — Operating income of Bimbo Bakeries USA was NP1,233 million ($93.5 million) in the second quarter ended June 30, compared with a loss of NP35 million during the same period last year.
The U.S. operating income was only a shade beneath the NP1,429 million earned by the company’s anchor Mexico segment. Operating margins were 9.7% for B.B.U., versus negative margins a year earlier of 0.8%. The improvement principally reflected the integration of B.B.U. East (George Weston Bakeries, Inc., acquired in January) but also reflected productivity gains in both the company’s U.S. regions and cost savings resulting from the integration.
Excluding the acquisition, the operating margin would have been 6.2% in the second quarter. B.B.U. sales increased to NP12,694 million ($963 million) from NP4,294 million in the second quarter of 2008. The integration of B.B.U. East, organic growth resulting from pricing actions and strength in the U.S. dollar drove the growth.
"As expected from the integration process, the strongest growth in the quarter came from national accounts," Bimbo said.
Excluding the acquisition, dollar sales in the quarter would have risen 0.4% in the second quarter. On a company-wide basis, sales rose 43% and net majority income increased 70% for Grupo Bimbo S.A.B. de C.V. in the second quarter versus the same period last year. Second-quarter sales were NP28,581 million ($2,168 million), up from NP19,996 million. Excluding the U.S. acquisition, sales would have risen 4.6%. Second-quarter net income was NP1.4 billion ($106 million).