Net sales at the company advanced 5.9 percent for the quarter.
CELAYA, Mexico – Poultry processor Industrias Bachoco reported net income of $1,475.5 million pesos ($79.5 million) for the fourth quarter ending Dec. 31, 2017, compared with a net income of $964.6 million, or $1.61 pesos of basic and diluted income per share in the year-ago period.

Revenues for the quarter advanced 5.9 percent to $15,039.1 million pesos on more volume sold compared to the fourth quarter in 2016.

“In Mexico, during the first part of the quarter, we observed oversupply conditions in the chicken industry, leading to lower prices than we expected,” CEO Rodolfo Ramos Arvizu said in a statement. “However, by the end of the quarter, we observed a recovery in the demand and a better balance between supply and demand.

“In the US, we observed similar prices to 4Q16 for poultry, despite an industry growing at slightly higher rates than normalized levels during the fourth quarter,” Arvizu added.

Net income in 2017 climbed 22.7 percent to 4,849.1 million pesos compared with 3,951.2 million pesos reported in 2016. Revenue for fiscal year 2017 totaled $58,056.5 million pesos, up 11.6 percent from $52,020.30 million pesos reported in 2016.

Arvizu noted that Bachoco is working to integrate the company’s recent acquisitions of Albertville, Alabama-based Albertville Quality Foods, a supplier of value-added protein products, and pet food company La Perla.

“We continued with our growth plans as our CAPEX reached $3,479.3 million for the year, including acquisitions,” Arvizu said. “Our financial structure continued strong as we ended the quarter with a net cash of $11,979.7 million, which will allow us to continue supporting our growth plans.”

(1 Mexican peso = 0.053 US dollars)