Q2 ‘wrap’: Grupo Bimbo sharp profit rise, PepsiCo profits dip

Grupo Bimbo’s Q2 net profit surged 72.6% on the previous year as sales rose slightly, whereas PepsiCo’s net profit dipped 2% despite steady sales.

Grupo Bimbo breakdown

The Mexican bread giant pulled in 1.6bn pesos ($123.6m) net profit for the second quarter – up from 937m pesos ($72.4m) in Q2 2013. For the first six months of fiscal 2014 therefore, net profit was up 42.2% on 2013.

The company cited improved operating performance and lower financing costs, as well as a lower effective tax rate, reasons for the surge.

Overall net sales were up 5.2% on Q2 2013, primarily bolstered by a huge rise in European sales – up 29%. Just under half (11.3%) correlates to Canada Bread’s UK operation - recently acquired by Bimbo.

Company CEO Daniel Servitje previously told sister site FoodManufacture that Grupo Bimbo was ready to invest in the UK arm.

PepsiCo breakdown

PepsiCo pulled in $1.9bn in net profit for the second quarter – down 2% on Q2 2013’s $2bn. However, for the first six months of fiscal 2014, net profit was up 3% from 2013.

Snacks and beverages grew equally, with operating profits up 3%.

“Despite operating in what continues to be a challenging and volatile macro environment, we are delivering consistent, strong results,” said Indra Nooyi, chairman and CEO.

Net sales were up across PepsiCo Americas Foods (PAF) and Frito-Lay North America (FLNA); equal for Latin America Foods (LAF); and down 2% for Quaker Foods North America (QFNA).

Overall net sale growth remained steady in Europe but was up slightly (1%) in Asia, Middle East & Africa (AMEA).

PepsiCo saw a stronger performance in Q1 (in terms of net profit) - overall up 13%, although sales remained flat.