GMKKY - Post-Pandemic Normalization Will Bring Some Challenges For Grupo Bimbo
- Bimbo saw significant and volume share gains in North America during the pandemic, but post-pandemic normalization will threaten those volumes and the operating leverage that came with them.
- Product innovation needs to remain an ongoing focus of management, as does further supply, manufacturing, and logistics improvements in the North American and European markets.
- Value-destructive empire-building through M&A remains a prime concern among many analysts, though smaller deals to add scale in the profitable QSR business and sub-scale geographies could make sense.
- Low-to-mid single-digit revenue growth and modest margin improvements can support a share price 20% higher than today's price with decent ongoing potential beyond that.
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Post-Pandemic Normalization Will Bring Some Challenges For Grupo Bimbo