Bimbo cut its annual sales forecast to low-to-mid single-digit growth, Chief Financial Officer Diego Gaxiola said in a call with analysts, down from a previous projection of mid-to-high single-digit growth.
"Compared to our initial sales guidance, we have an impact of more than six percentage points" due to the strength of the peso, Gaxiola said.
Earlier on Tuesday the firm, which sells buns, cakes, cookies, bagels and tortillas across 34 countries, reported that revenues increased 4% to a second-quarter record of 100.37 billion pesos ($5.86 billion) following price hikes, which were also offset by the peso's strength.
The strong peso also partially contributed to a nearly 30% drop in quarterly net profit, falling to 4.30 billion pesos, Bimbo said.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter rose 7.8% to 14.00 billion pesos.
Persons:
Bimbo, Diego Gaxiola, Gaxiola, Kylie Madry, Aida Pelaez, Fernandez, Brendan O'Boyle, Sonali Paul
Organizations:
MEXICO CITY, U.S, Thomson
Locations:
Canada, MEXICO, U.S, Mexico