Bimbo's Short-Term Challenges Are Intensifying, But There's Value For The Patient Investor

|
About: Grupo Bimbo, S.A.B. de C.V. (BMBOY), Includes: FLO, GMKKY
by: Stephen Simpson, CFA
This article is exclusive for subscribers.
Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst
Summary

Bimbo is facing a worsening Mexican economy and tougher labeling laws, as well as market share losses in the U.S.

Product innovation can help counteract the share losses in the U.S., and more price-conscious packaging is an option in Mexico, while Latin America is a long-term improvement project.

Bimbo is looking at a tough 12 months, but there is long-term value emerging in this name.

If Grupo Bimbo’s (OTCPK:BMBOY) (BIMBOA.MX) Osito, its white teddy bear mascot, were real, it would be pretty black and blue after the last couple of quarters. While Bimbo’s margin-improvement efforts