UPDATE 1-Mexico's Bimbo quarterly net profit rises 9 pct

(Adds sales details

MEXICO CITY Oct 23 (Reuters) - Mexican bread maker Bimbo reported a 9 percent increase in third-quarter net profit on Thursday, helped by stronger sales on the back of higher prices.

Bimbo (BIMBOA.MX), which has operations in the United States and Latin America, said it earned 1.365 billion pesos ($125 million) in the July-September quarter, up from 1.252 billion pesos a year earlier.

"Net sales totaled 20.6 billion pesos, a solid 12.1 percent increase over the third quarter of last year, reflecting higher average prices and a better product mix across every operation," the company said in a statement.

The company said the fair market value of derivative instruments it has used for hedging is a gain of nearly 300 million pesos.

Several companies have been seriously hurt by derivatives trading in recent weeks as the Mexican peso lost ground against the dollar amid extreme volatility in financial markets. ($1=10.9490 at end-Sept) (Reporting by Cyntia Barrera Diaz; Editing by Gary Hill)