Mexican breadmaker Bimbo profit drops 30% after year-ago pension bump

MEXICO CITY (Reuters) -Mexican breadmaker Grupo Bimbo posted a nearly 30% dip in second-quarter net profit on Tuesday after the company registered a non-cash benefit on its pension plan in the year-ago quarter.

Net profit slid to 4.30 billion pesos ($251.06 million), down from 6.08 billion pesos.

Even excluding the $90 million pension effect, net income saw a hit from higher financing costs, which more than doubled from the same time last year on the appreciation of the Mexican peso and higher interest rates.

The Mexican peso has posted double-digit gains on the U.S. dollar since the year-ago quarter.

Revenues for the company, which sells buns, cakes, cookies, bagels and tortillas across 34 countries, increased 4% to hit a second-quarter record of 100.37 billion pesos following price hikes, which were also offset by the peso’s appreciation.

Sales in the firm’s U.S. and Canada region, which makes up about half of its revenue, dipped almost 2% in pesos, although they rose nearly 12% in U.S. dollars.

Sales in Mexico, however, grew in all categories after price increases.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter rose 7.8% to 14.00 billion pesos.

($1 = 17.1156 pesos at end-June)