Bachoco sees recovery in Q4
CELAYA, Mexico – Industrias Bachoco reported net income of 554.2 million pesos ($43.4 million) for the fourth quarter ended Dec. 31, 2012, compared to a loss of 26.9 million pesos ($2.1 million) in 2011. Earnings per share totaled 0.92 pesos ($0.072), compared to 0.04 ($0.0031) pesos in 2011.
Net sales were 10.7 billion pesos ($838.6 million), an increase of 25 percent compared to net sales of 8.6 billion pesos ($674,000) in the comparable year-ago period. The company attributed the gain to the integration of the Bachoco's new US operation.
"Supply and demand remained balanced across our main product lines, with sound prices during most part of the quarter, helped by the holiday season at the end of this period, which fostered consumption mainly of chicken products," said Rodolfo Ramos Arvizu, CEO.
"Fourth-quarter results concluded a positive year for the company in terms of operating and financial results, a recovery from results reported in 2011, which was one of the most difficult years in the company's history.
"It has been one year since Bachoco entered the United States market through the acquisition of OK Industries. We continue to integrate OK Industries into the company's operations, in line with Bachoco's overall strategy.
"In addition, it is important to highlight that Bachoco had a solid financial structure throughout 2012, reporting negative net debt on the Balance Sheet, which we consider one of Bachoco's primary strengths," Arvisu concluded.
Full year net sales for 2012 were 39.3 billion pesos ($3.1 billion) compared to 27.7 billion pesos ($2.2 billion) in 2011, the company reported. Net income for the full year was 2.2 billion pesos ($172.5 million), compared to 165.2 million pesos ($12.9 million) in the year-ago period.