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

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<span>© Reuters. The mascot of Mexican breadmaker Grupo Bimbo, the Bimbo Bear, is pictured on a delivery truck in Monterrey, Mexico, August 8, 2018. REUTERS/Daniel Becerril/File Photo</span><br />
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<p>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.</p>
<p>Net profit slid to 4.30 billion pesos ($251.06 million), down from 6.08 billion pesos.</p>
<p>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.</p>
<p>The Mexican peso has posted double-digit gains on the U.S. dollar since the year-ago quarter.</p>
<p>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&#8217;s appreciation.</p>
<p>Sales in the firm&#8217;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. </p>
<p>Sales in Mexico, however, grew in all categories after price increases.</p>
<p>Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for the quarter rose 7.8% to 14.00 billion pesos. </p>
<p>($1 = 17.1156 pesos at end-June)</p>
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