EM LATAM CREDIT: Mexico's Bimbo (BIMBOA; Baa1/BBB+/BBB+) 4Q 2024 Earnings
"Bimbo 4Q Operating Income Misses Estimates" - BBG
Negative for spreads
• Mexican based global bread producer Bimbo earnings missed, weighed down by North American operations. 12-year bonds issued about a year ago at T+150bps were last quoted T+124bps. Net debt/TTM EBITDA rose to 2.9x from 2.1x in 2023. Bonds don’t look interesting at these spread levels.
• North American sales and margins weighed on results, offset by strength in Mexico. Overall, revenues were up 8.3% y/y, adjusted EBITDA rose 2.3% while net income fell 4.3% y/y.
• Excluding the FX effect from a depreciated peso, North American sales dropped 5.7% while Mexican sales rose 1.7%. North American EBITDA dropped 42% excluding the FX effect while Mexico EBITDA rose 11%
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