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Bimbo invests more in associated companies

Grupo Bimbo, the largest bakery company in the world, increased investments in its associated companies 23.6%, to 3,885 million pesos, at the end of the third quarter of 2021 compared to the end of 2020.

Its associated companies are Beta San Miguel, Mundo Dulce, Fábrica de Galletas la Moderna, Grupo La Moderna, Freezing and Storage of the Center, Community Financial Services and Rich Products.

Above all, these companies are incorporated and operate in Mexico, and are recognized using the equity method in the consolidated financial statements.

The permanent investments in Beta San Miguel, Grupo la Moderna, Congelación y Almacenaje del Centro, and Productos Rich are considered associated because they have significant influence over them, since Grupo Bimbo is represented on the board of directors of said entities.

Investment in associates

Miles de pesos.

From the perspective of the company itself, Grupo Bimbo’s success depends in part on its ability to become a low-cost producer in a highly competitive industry.

In this regard, investments are continuously made in its operations in order to improve production plants and reduce operating costs.

Bimbo

But the company could face operational problems when making major changes in production, supply or logistics, and such changes, as well as its inability to achieve planned cost reductions and efficiencies, could have a negative adverse effect on the business, financial situation. , operating results and perspectives.

Millones de pesos.

In addition, in its last quarterly report, the company made the following comment: “The administration of Mr. (Andrés Manuel) López Obrador has taken actions that have significantly decreased investor confidence in private investments after the results of public consultations, such as the cancellation of public and private projects authorized by the previous administration, including the construction of the new Mexican airport, which immediately led to the review of Mexico’s sovereign rating and the cancellation of the construction of a Constellation Brands brewing plant in Baja California, Mexico.

“The Group cannot assure you that similar measures will not be taken in the future, which could have a negative effect on the Mexican economy.”

Going forward, Bimbo intends to continue working to achieve greater efficiency, strengthen its leadership position and improve its profitability through continuous investments in its production plants and machinery.

The Group’s goal is to achieve a spending culture that supports long-term growth and transformation through the best use of resources that are allocated to value-added initiatives.

 

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