What was the adjustment for provisions for Bimbo Foods Bakeries Distribution during the period of 2024-01-01 to 2024-03-31?
Bimbo_Foods_Bakeries_Distribution Franchise · 2025 FDDAnswer from 2025 FDD Document
| Concept | Accumulated Current | Accumulated Previous |
|---|---|---|
| Year | Year | |
| Chatemant of each flavor (abstract) | 2025-01-01 - 2025-03-31 | 2024-01-01 - 2024-03-31 |
| Statement of cash flows [abstract] | ||
| Cash flows from (used in) operating activities [abstract] | 0.040.004.000 | 0.757.000.000 |
| Profit (loss) | 2,213,864,000 | 2,757,383,000 |
| Adjustments to reconcile profit (loss) [abstract] | ||
| + Discontinued operations | 1 222 240 000 | 1 420 014 000 |
| + Adjustments for income tax expense | 1,328,319,000 | 1,430,014,000 |
| + (-) Adjustments for finance costs | 3,311,520,000 | 2,755,129,000 |
| + Adjustments for depreciation and amortisation expense | 6,075,056,000 | 4,911,704,000 |
| + Adjustments for impairment loss (reversal of impairment loss) recognised in profit or loss | (96,395,000) | 10,040,000 |
| + Adjustments for provisions | 707,038,000 | 722,077,000 |
| + (-) Adjustments for unrealised foreign exchange losses (gains) | 0 | 0 |
| + Adjustments for share-based payments | 0 | 0 |
| + (-) Adjustments for fair value losses (gains) | 0 | 0 |
| - Adjustments for undistributed profits of associates | 0 | 0 |
| + (-) Adjustments for losses (gains) on disposal of non-current assets | 142,279,000 | 78,452,000 |
| + Participation in associates and joint ventures | (50,123,000) | (111,023,000) |
| + (-) Adjustments for decrease (increase) in inventories | 1,241,531,000 | (309,339,000) |
| + (-) Adjustments for decrease (increase) in trade accounts receivable | 4,383,000 | (570,249,000) |
| + (-) Adjustments for decrease (increase) in other operating receivables | 718,230,000 | (620,467,000) |
| + (-) Adjustments for increase (decrease) in trade accounts payable | (3,280,516,000) | (6,624,382,000) |
| + (-) Adjustments for increase (decrease) in other operating payables | 889,701,000 | 6,333,049,000 |
| + Other adjustments for non-cash items | 0 | 0 |
| + Other adjustments for which cash effects are investing or financing cash flow | 0 | 0 |
| + Straight-line rent adjustment | 0 | 0 |
| + Amortization of lease fees | 0 | 0 |
| + Setting property values | 0 | 0 |
| + (-) Other adjustments to reconcile profit (loss) | 0 | 0 |
| + (-) Total adjustments to reconcile profit (loss) | 10,991,023,000 | 8,005,005,000 |
Source: Item 14 — Other Accounts Payable and Accrued Liabilities (FDD pages 312–476)
What This Means (2025 FDD)
According to Bimbo Foods Bakeries Distribution's 2025 Franchise Disclosure Document, the adjustment for provisions during the period from January 1, 2024, to March 31, 2024, was $722,077,000. This figure is part of the adjustments made to reconcile profit or loss in the statement of cash flows.
This adjustment reflects changes in the company's reserves for various liabilities, such as potential legal claims or warranty obligations. These provisions are accounting estimates of future obligations that Bimbo Foods Bakeries Distribution expects to incur. The adjustment is added back to the profit or loss to arrive at the net cash flows from operating activities, as it represents a non-cash expense.
For a prospective franchisee, understanding these adjustments is crucial for assessing the company's financial health and cash flow management. While a large provision might indicate potential liabilities, it also demonstrates a conservative accounting approach. Franchisees should consider these adjustments in the context of the overall financial performance of Bimbo Foods Bakeries Distribution and seek clarification from the franchisor regarding the nature and potential impact of these provisions.