Resources by Ricolino allow Bimbo to lower its debt
Grupo Bimbo, a global food company and global leader in the baking industry, reduced its debt in 2022 with the resources obtained from the sale of Ricolino.
As of December 31, 2022, Grupo Bimbo’s total debt was 84,054 million pesos, compared to 92,855 million as of December 31, 2021.
Above all, the decrease was due to the payment of debt using Ricolino resources and the effect of the exchange rate.
The average maturity of the debt was 14.1 years, with an average cost of 6.0 percent.
Long-term debt represented 92% of the total; 45% of the debt was denominated in US dollars, 41% in Mexican pesos, 8% in euros and 6% in Canadian dollars.
As a consequence, the net debt to adjusted EBITDA ratio, which does not include the effect of IFRS 16, was 1.5 times, compared to 2.0 times as of December 31, 2021.
Ricolino
On April 25, 2022, Grupo Bimbo signed an agreement for the sale of its Ricolino confectionery business.
This strategic decision allowed Grupo Bimbo to become a stronger global leader in grain-based foods and to focus on its baking and snack industries.
When it was part of Grupo Bimbo, the Ricolino brand was the second largest within the confectionery category, capturing 8% of the market.
As of December 31, 2021, Grupo Bimbo’s total debt was 92,855 million pesos, compared to 85,229 million as of December 31, 2020.
This increase was explained by capital investments, financing for acquisitions, as well as returns to shareholders.
So, the average maturity of the debt was 16.4 years, with an average cost of 6.0 percent.
Long-term debt represented 89% of the total; 50% of the debt was denominated in US dollars, 40% in Mexican pesos, 7% in Canadian dollars and 3% in euros.
In addition, the impact of Covid-19 on financial markets has negatively affected the cost of borrowing, hedging activities and access to capital in general, which could limit Grupo Bimbo’s ability to obtain financing on favorable terms or in what absolute.
The Company has a balanced and diversified portfolio of more than 10,000 products, covering different categories, sold under iconic, strategic or renowned brands.
