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Bachoco's 4Q12 Results Reveal Positive Year

08 February 2013

MEXICO - Mexican-based poultry processing company Bachoco has announced that net sales increased 25.0 per cent and 41.8 per cent in the fourth quarter of 2012 (4Q12) and fiscal year 2012 (Y12) respectively, mainly as a result of the integration of the Company's new operation in the United States.

EBITDA margin was 8.5 per cent in 4Q12 and 8.7 per cent in Y12.

Earnings per share totaled Ps. 0.92 in 4Q12, and Ps. 3.60 in Y12 compared to a negative result Ps. 0.04 in 4Q11 and earnings of Ps. 0.28 in 2011.

Rodolfo Ramos, Bachoco's CEO, said: "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.

"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."

Net Sales

Net sales increased 25.0 per cent during 4Q12 and, 41.8 per cent during Y12, mainly as a result of the integration of the Company's new operation in the United States, which was acquired in November 2011.

Quarterly Sales (4Q12 vs. 4Q11)

Net sales in 4Q12 totaled Ps. 10,705.3 million, higher than the Ps. 8,564.3 million in net sales reported the same period in 2011. The increase was due to increases across all main business lines, with balanced and stable demand and supply.

Annual Sales (Y12 vs. Y11)

Net Sales in Y12 totaled Ps. 39,348.1, 41.8 per cent more than Ps. 27,740.6 million in net sales in Y11, mainly as a result of 45.6 per cent increase in chicken sales, due to the integration of OK Industries sales to Bachoco.

Operating Results

Gross profit in 4Q12 was Ps. 1,570.4 million resulting in a gross margin of 14.7 per cent, compared to a gross profit of Ps. 677.2 million with a gross margin of 7.9 per cent in 4Q11. Meanwhile, the gross margin totaled 15.2 per cent in 2012, compared to 10.8 per cent in 2011.

As a result of strict control of operating expenses, Bachoco reported improvements in 2012; in 4Q12, total expenses represented 8.2 per cent of total sales compared to 9.9 per cent of total sales in 4Q11. For 2012, total expenses represented 8.6 per cent of total sales compared to 10.6 per cent reported in 2011.

The Company reported comprehensive financial income of Ps. 46.5 million for 4Q12, and Ps. 159.5 million for 2012. This was mainly due to interest earned on the Company's cash position, which remained strong throughout the year.

Total taxes for 4Q12 were Ps. 140.4 million and Ps. 583.5 million for 2012.

Net income was Ps. 554.2 million in 4Q12 (Ps. 0.92 per share), compared to a net loss of Ps. 26.9 million (-Ps. 0.04 per share) reported in 4Q11. Meanwhile, net income for 2012 was Ps. 2,159.1 million (Ps. 3.60 per share), compared to net income of Ps. 165.2 million (Ps. 0.28 per share) reported in 2011.

Adjusted EBITDA

Adjusted EBITDA in 4Q12 reached Ps. 911.2 million, representing a margin of 8.5 per cent, compared to adjusted EBITDA of Ps. 79.0 million in 4Q11. Adjusted EBITDA margin in 2012 was 8.7 per cent, compared to 2.9 per cent in 2011.

ThePoultrySite News Desk



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