"For the quarter, we observed a poultry industry growing at normalized rates in both Mexico and the US markets. We observed a good balance between supply and demand, resulting in a price recovery when compared to the same quarter of 2015,” said Rodolfo Ramos Arvizu, CEO of Bachoco, in a statement. “On the other hand, high volatility regarding the exchange rate of the Mexican peso during the quarter affected our raw materials cost and consequently our total cost of sales in peso terms.”
The company's Q4 2016 net sales totaled $14,206 million pesos ($675.2 million), 21.9 percent more than $11,650 million pesos ($553.9 million) reported in 4Q15. “The increase is a result of more volume sold in our main product lines and price increases in peso terms, mainly in chicken and balance feed,” according to Ramos Arvizu.
In 2016, net sales totaled $52,020.3 million pesos ($2,473 million) or 12.5 percent more than $46,229.0 million pesos ($2,198 million) reported in 2015. “The increase in sales is attributed mainly to higher volumes sold and price increases mainly in chicken, swine and balanced feed,” according to the company.
Sales in the company’s US operations remained strong in Q4 2016, representing 27.7 percent of its total sales. This compares with 24.4 percent of the total sales in Q4 2015.
In 2016, US operations sales represented 25.7 percent of total sales, compared with 24 percent in 2015.
The company reported a net income of $3,963.0 million pesos ($188 million) or 7.6 percent of net margin for 2016, which represents $6.60 pesos ($0.31) of earnings per share. In 2015, the net income totaled $3,819.5 million pesos ($181 million), 8.3 percent of net margin and $6.36 pesos ($0.30) of net income per share.
Total CAPEX (capital expenditures) for 2016 was $2,398.8 million pesos ($114 million) and $1,824.5 million pesos ($86.7 million) in 2015. The expenditures were “mainly allocated toward organic growth and productivity projects across all our facilities,” Ramos Arvizu said.
“In addition, the company remained in a healthy financial condition with a net cash of $11,603.6 million pesos ($551.7 million), which will allow us to continue supporting our growing plans."