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BIMBO A Leadership Change Is Expected To Drive Stronger Profitability Ahead

Emerging Markets Urbanization And Wellness Trends Will Reshape Consumer Demand

BIMBO A logo
BIMBO A
AnalystHighTarget
Not Invested
Published 14 Jun 2025

Update shared on 19 Dec 2025

Fair value Increased 12%
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AnalystHighTarget's Fair Value
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1Y
7.3%
7D
-0.4%

Analysts have raised their price target on Grupo Bimbo to approximately $87 from $78, citing expectations for stronger profitability and a lower future earnings multiple, despite slightly reduced top line growth assumptions.

What's in the News

  • Grupo Bimbo has appointed Alejandro Rodríguez Bas as its new CEO following the resignation of Rafael Pamias Romero, signaling a leadership transition at the top of the company. (Key Developments)
  • Rodríguez Bas, previously president of Grupo Bimbo’s Barcel Global snacks division and member of the executive committee, brings internal continuity to the role. (Key Developments)
  • The new CEO adds extensive global consumer goods experience, having previously served as CEO at Grupo Lala in Mexico, Acosta, and PepsiCo’s businesses in Australia and New Zealand. (Key Developments)

Valuation Changes

  • Fair Value Estimate has risen moderately from MX$78.0 to MX$87.0 per share, reflecting higher expected profitability despite softer growth assumptions.
  • Discount Rate has increased slightly from 13.9 percent to 14.3 percent, implying a marginally higher required return on equity.
  • Revenue Growth has been revised down meaningfully from about 6.5 percent to 4.8 percent, indicating more conservative top line expectations.
  • Net Profit Margin has increased significantly from roughly 4.2 percent to 6.5 percent, signaling stronger anticipated earnings efficiency.
  • Future P/E has been reduced notably from about 22.8x to 17.3x, suggesting a lower valuation multiple applied to forward earnings.

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Disclaimer

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