July 21, 2010 / 10:41 PM / 7 years ago

UPDATE 1-Mexican breadmaker Bimbo 2nd-qtr net drops 12 pct

* Bimbo quarterly net dips 12 pct

* Higher costs in Mexico, Venezuela, pinch bottom line (Adds detail on results, background)

MEXICO CITY, July 21 (Reuters) - Mexican bread maker Bimbo (BIMBOA.MX) said on Wednesday its second-quarter net profit fell 12 percent from a year ago to 1.254 billion pesos ($97 million), due partly to higher costs.

Bimbo, one of the biggest bread makers in the world, had quarterly revenues of 28.781 billion pesos, up 0.3 percent over the year-ago period.

But higher costs in Mexico and low productivity in Venezuela impacted Bimbo’s bottom line during the quarter, the company said in a filing.

Bimbo bought the U.S. bread-making unit of Canada’s George Weston Ltd (WN.TO) for $2.38 billion in December 2008, increasing its presence in the eastern United States. The new operations were consolidated in January of 2009.

Bimbo’s shares added 0.78 percent to close at 97.36 pesos on Wednesday ahead of the earnings report. ($1=12.94 at end-June) (Reporting by Noel Randewich; editing by Gunna Dickson)

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