April 26, 2018 / 11:17 PM / 2 years ago

UPDATE 1-Mexico's Bimbo profit rises on lower U.S. tax rate

(Recasts, adds Bimbo’s comments)

MEXICO CITY, April 26 (Reuters) - Mexican breadmaker Grupo Bimbo said on Thursday its first-quarter net profit jumped 28 percent from a year earlier, helped by higher sales and a lower tax rate in the United States after the U.S. tax overhaul.

Bimbo, which in recent years has expanded into China, India and Morocco, while growing its U.S. footprint, posted a first-quarter net profit of 1.27 billion pesos ($69.5 million).

Revenue increased 1.6 percent to 67.15 billion pesos from 66.08 billion in the same period a year ago because of stronger Mexico volumes and acquisitions over the past year, Bimbo said.

It bought U.S. firm East Balt Bakeries for $650 million last year and acquired Chinese breadmaker Mankattan this year.

Chief Financial Officer Diego Gaxiola told Reuters in April that Bimbo would see higher margins and profitability by the end of 2018 and that the firm’s consolidated tax rate would fall because of the tax overhaul in the United States.

The company said on Thursday it now had a lower effective tax rate of 40.3 percent, compared with 42.9 percent in the same period of last year.

$1 = 18.303 at the end of March Reporting by Anthony Esposito; Editing by Peter Cooney

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