Operating income of the North American business of Grupo Bimbo in the first quarter of 2017 was up 21% from the first quarter of 2016.
Bimbo attributed the jump in sales to favorable exchange rate moves. During the quarter, the value of the Mexican peso gained 10% relative to the U.S. dollar, strengthening results reported in pesos.
Excluding foreign exchange swings, the North American sales picture was mixed at best.
The total branded business remained flat but trended favorably, Bimbo said.
The operating income margin of the BBU business widened modestly to 4.1% from 3.9% in the first quarter of 2016.
Bimbo closed its baking plant in Subury, Pa. in January.
Consolidated net income of Grupo Bimbo in the first quarter was 985 million pesos ($52 million), down 31% from 1.428 billion pesos in the first quarter of 2016. Sales were 22.342 billion pesos ($1.176 billion), up 12% from 19.944 billion in the first quarter last year.
Bimbo said its adjusted EBITDA margin narrowed 120 basis points because of integration and restructuring expenses in North America, Iberia and Argentina. Profitability also tightened because of a higher effective tax rate.
Bimbo acquired Stonemill Bakehouse in March.
Additionally, Bimbo said Diego Gaxiola will become Grupo Bimbo’s chief financial officer when Guillermo Quiroz retires Aug. 1.
Total debt to adjusted EBITDA was 2.6 times at the end of the first quarter, versus 2.8 times three months earlier.