Mexico’s Bimbo lifts lower end of full-year EBITDA outlook

Mexico's Bimbo, a leading distributor of baked goods, has announced an adjustment to its earnings guidance. The company has increased the lower end of its adjusted EBITDA margin expansion forecast from 60 to 85 basis points. However, the upper end of the range remains at 120 basis points.

In addition, Bimbo has reaffirmed its 2026 net sales growth forecast, projecting a modest increase in the mid-single digits. The company also indicated that its capital expenditure plans for the year will fall between $1 billion and $2 billion.

During a conference call following its third-quarter results, Bimbo's management highlighted continued benefits from its North America transformation initiatives, as well as profitable growth in Mexico and improving performance in Latin America for the upcoming year. However, they also cautioned that inflationary pressures could impact the company's performance.

Following the call, JPMorgan noted these remarks in their assessment of Bimbo's outlook. Net profit for the third quarter of the year rose by 22% compared to the same period in the previous year.