ROMANIA – Grupo Bimbo S.A.B. de C.V., one of the largest bakery companies worldwide, has announced a CEO transition, with Daniel Servitje stepping down and Rafael Pamias taking over the role, effective 1 May.
Pamias will succeed Daniel Servitje, who has been Bimbo’s CEO since 1997 as he transitions to the newly established position as the executive chair.
According to the company, the executive chair will focus “on strategic decision-making, ensuring the alignment of the true long-term view, as well as the interests of the shareholders and board of directors”.
The CEO will be responsible for day-to-day operations and will report directly to the executive chair.
Grupo Bimbo said that these changes aim to enhance the company’s corporate governance and strategic oversight, reinforcing its structure to address the increased complexity of the growth and expansion achieved over the past years.
“Having just turned 65 years old and after 43 years of working full-time, I want to take a step forward and have made the decision to pass the CEO baton and become executive chair. On top of being the chairman of the board, I will continue to be highly involved in all aspects of the strategy and execution of the company,” Servitje said.
“I’m honoured to have been assigned this great responsibility. You can be sure that I am deeply committed and that I will work to continue with the success and sustainable growth that Grupo Bimbo has achieved for nearly 80 years,” Pamias commented.
Grupo Bimbo to lower capex in 2025 amid profit slump
Meanwhile, Bimbo has announced that its first-quarter net earnings dropped more than 40% to 2.3bn pesos (US$158M) in the three months ending on March 31, 2024.
During this time, operating income fell 16.6% to 6.8bn pesos, while adjusted EBITDA dropped 7.8% to 11.8bn pesos. Net sales were down 6% at 93.2bn pesos.
Speaking to analysts, Diego Gaxiola, Bimbo’s CFO revealed that the Mexican bakery major reported falling quarterly sales and profits.
According to him, Bimbo saw cuts to its sales guidance for the year 2024, moving from “low- to mid-single digit” to “single-digit top-line growth.
He said the group was “expecting a slight decrease for this year” and “for 2025” noting that Bimbo would “probably see a normalisation in 2026 going forward.
As a cushion, Bombo expects to cut its capital expenditure in 2024 and the following year amid profit slump, Gaxiola noted.
The move comes as the group’s “capex peaked” in 2024, with a “very intensive” injection of over US$2bn.
Despite signalling cuts to capex, the Group experienced positive sales growth in Mexico and Latin America, while North America saw a decline.
The company made strategic acquisitions to bolster its global presence and adjusted its annual guidance due to the Mexican peso’s appreciation.
The group, further, announced another acquisition, confirming a deal for Romanian baked goods producer Trei Brutari. Financial details of the purchase were not disclosed.
Trei Brutari operates three factories, which employ 400 people. These include two bread plants in Târgoviște and Buzău, as well as a biscuit factory in Iași.
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