Industrias Bachoco 1Q 2012 net income, net sales soar
May 2, 2012
CELAYA, Mexico – Industrias Bachoco S.A.B. de C.V. announced for Q1 2012 net income of Ps. 660.6 million (US$51,000,000.00), up 328.9 percent from Ps. 154.0 million (US$12,000,000.00) in Q1 2011. Net sales of Ps. 9,337.6 million (US$721,000,000) were up 54.5 percent from the Ps. 6,042.3 million (US$466,000,000) one year earlier — representing the highest net sales for a first quarter in the company's history.
The Mexican poultry industry demonstrated an adequate balance between supply and demand, with greater stability within the international markets of the main raw materials and an appreciation of the Mexican peso against the US dollar, said Rodolfo Ramos, chief executive officer.
"During the first quarter, we observed a strong demand for chicken and eggs in the Mexican market, which allowed us to close the gap in prices following the sharp increases in raw material costs in recent quarters,” he added. “As a result, we had increases in sales across all our business lines, and when combined with the additional sales generated from our operation in the US, Bachoco achieved record first quarter sales.”
In the first quarter of 2012, the company achieved positive results in its operations in Mexico and the US, reaching an EBITDA of Ps. 1,027.6 million (US$79,300,000), an EBITDA margin of 11.0 percent, derived from the aforementioned external factors and the continuous efforts to improve efficiency, Ramos said.
During 1Q12, the company continued experiencing increases in net sales, with greater sales throughout all its business lines. There was a more steady supply of chicken products in Bachoco's key markets. This factor, coupled with the integration of OK Industries into Bachoco's sales in Mexico, lead to a 54.5 percent increase in net sales compared to the same period of 2011.
During the first quarter, chicken product sales grew to Ps. 7,894.4 million (US$609,400,000), which represented 84.5 percent of the company's net sales. This increase in chicken sales resulted from a 21.0 percent increase in chicken prices and a 33.1 percent growth in volume of chicken sold.
From total chicken sales, 76.3 percent was sold in Mexico and 23.7 percent at Bachoco's US operation.
Industrias Bachoco is the leader of the Mexican poultry industry and one of the top 10 poultry producers worldwide. Bachoco's sales include chicken, table eggs, balanced feed, turkey, beef and swine.