EM LATAM CREDIT: Grupo Bimbo: Q3 2025 Earnings - Neutral
(BIMBOA; Baa1/BBB+/BBB+)
• Mexico based global baked goods producer Bimbo reported better margins in North America that boosted EBITDA in that region 4% YoY which offset Mexico’s decline of 6.5%. EAA (Europe, Asia, Africa) continued to show strong growth with EBITDA growing 29.7%. Net debt/EBITDA was unchanged at 2.8x YoY.
• BIMBOA 36s were last quoted T+105bp, 22bp tighter since June 30th and 20bp tighter YTD. Nothing about this latest earnings report changes our fundamental view of the credit profile.
• Overall results were uninspiring but stable, with sales up 1.2% and gross profits down by .2% while adjusted EBITDA rose by .8%. The company’s most important markets of North America and Mexico that comprised 77% of sales showed sales falling 4.9% in North America and sales rising in Mexico only .3% due to a soft consumption environment. It was an improved price/mix performance and market share gains that led to expanding margins which supported EBITDA.
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US STOCKS: Early Equities Roundup: Tech Sector Shares Leading Nasdaq Bid
- Stocks are mixed in late Monday morning trade, the Nasdaq outperforming as Information Technology sector shares outperformed. Currently, the DJIA trades down 61.57 points (-0.13%) at 46191.16, S&P E-Minis up 18 points (0.27%) at 6715.5, Nasdaq up 137.9 points (0.6%) at 22627.26.
- The tech sector recovered from better selling in the latter half of last week, buoyed by software and semiconductor makers, leading gainers included Western Digital +9.36%, Seagate Technology +5.70%, Micron Technology +5.18%, Lam Research +3.19% and NVIDIA +3.11%.
- Communication Services sector shares were a close second to IT, leading gainers included: Electronic Arts +4.82%, Trade Desk +4.03%, Paramount Skydance +2.59% and TKO Group Holdings +2.51%.
- Weaker Crude prices (WTI -2.10 at 63.62) weighed on the Energy & Utilities sector in the first half, leading decliners include: Targa Resources -3.15%, ConocoPhillips -3.06%, EOG Resources -2.69%, Devon Energy -2.24% and Diamondback Energy -2.14%.
- Meanwhile, the Utilities sector shares were buoyed by: Vistra -2.16%, FirstEnergy -1.20%, Duke Energy -1.10% and Southern Co -0.95%.
FED: US TSY 13W AUCTION: NON-COMP BIDS $1.777 BLN FROM $82.000 BLN TOTAL
- US TSY 13W AUCTION: NON-COMP BIDS $1.777 BLN FROM $82.000 BLN TOTAL
FED: US TSY 26W AUCTION: NON-COMP BIDS $1.372 BLN FROM $73.000 BLN TOTAL
- US TSY 26W AUCTION: NON-COMP BIDS $1.372 BLN FROM $73.000 BLN TOTAL
