Corporate Profiles - 2022 - 60

COMPANY OVERVIEW
Grupo Bimbo SAB de CV
Sharpens focus on baking, long-term objectives
E
ven as the company achieves record results in
the near term, management of Grupo Bimbo
SAB de CV continues to emphasize a focus
on the future. The commitment to the long term was
expressly articulated early in 2022 by the company's
chief executive officer but also was demonstrated in
many facets of the company's business.
After Bimbo agreed to sell its confectionery
business to Mondelez International,
Inc.
for
approximately $1.3 billion, Daniel Servitje, CEO,
said Bimbo was following a well-conceived strategy
when it chose to divest Mexico City-based Ricolino,
a maker of candy bars, truffles, panned chocolates,
caramel, lollipops, marshmallows, hard and chewy
candies, nougats and gum.
" The strategic rationale behind this decision
is that we are focusing on our core businesses -
grain-based foods, " Mr. Servitje said. " We plan to
continue to grow and further consolidate our position
as the largest baking company in the world. "
He said the company has a long history of purchasing
underperforming baking businesses and then " work
tirelessly years and years and years to fix ailing
businesses, to invest in bakeries that have not been
invested in many, many years and to fix distribution
systems that were outmoded or not taken care of. "
He suggested Bimbo may not be the right candidate
for investors overly focused on near-term results.
" We play for the long haul, " he said. " If you don't
like the long haul, well, that's who we are. But we
are very clear on what we want to achieve, and we
want to create value for our shareholders. "
In May, Bimbo shared a sustainability plan
with " transparent, far-reaching, ambitious goals. "
The strategy was developed using a materiality
assessment and is defined through three pillars with
eight initiatives.
Bimbo categorized the three pillars as Baked
for You, Baked for Nature and Baked for Life.
The Baked for You pillar is focused on enabling
planetary diets with nutritional diversity.
Goals for sooner than 2030 include the adoption
of simple and natural ingredients, that the company's
baked foods may be consumed as part of a healthy,
plant-based diet (with whole grains and other healthy
ingredients), and that the company communicates
clearly through its nutritional packaging.
The Baked for Nature pillar focuses on environmental
sustainability. Goals set
for 2050 include
becoming a net zero carbon emissions company and
targeting 100% of key ingredients purchased to come
from crops cultivated with regenerative agricultural
practices. By 2030, Bimbo pledged all of its packaging
would support a circular economy.
Its final pillar, Baked for Life, is about community
involvement for the company in the markets where
Bimbo operates. Specific goals for 2030 under
the Baked for Life pillar are strengthening the
implementation of Good Neighbor projects (aimed
at improving neighborhoods near Bimbo plants)
in each work center and strengthening dedicated
programs to the value chain.
Over the course of the year, Bimbo highlighted
steps it has taken toward its objectives.
In September, Bimbo said it had acquired 1,001
new Vekstar Stellar electric delivery vehicles. The
purchase brings Bimbo's tally of electric vehicles
in Mexico to 2,300, where it maintains its position
as the company with the largest number of electric
vehicles in Latin America, Bimbo said.
In September, Mr. Servitje said Bimbo has
launched regenerative agriculture pilot tests
both in Mexico and the United States. Calling
regenerative agriculture a " huge initiative, " Mr.
Servitje said agriculture accounts for the largest
proportion of Bimbo's Scope 3 greenhouse gas
emissions, meaning emissions in a company's
Chairman and president -
Daniel Servitje
Grupo Bimbo SAB de CV
net profit (loss)
Grupo Bimbo SAB de CV
net sales
Grupo Bimbo SAB de CV
share price
in Mexican pesos
291,926
6,319
2019
9,111
2020
15,916
2021
2019
2020
2021
331,051
348,887
48
56
64
72
80
Oct. Dec.
2021
Feb.
2022
April
June
Aug.
Oct.
60 \ November 2022
Milling & Baking News * Food Business News * Baking & Snack * Meat+Poultry * Dairy Processing
Corporate Profiles
in millions of Mexican pesos
in millions of Mexican pesos

Corporate Profiles - 2022

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