Bachoco: Double-Digit Growth in Sales Volumes

MEXICO - Industrias Bachoco has announced its 2010 first quarter results, which include a 1.1 per cent increase in total sales for the quarter compared to the same period last year.
calendar icon 27 April 2010
clock icon 4 minute read

Industrias Bachoco S.A.B. de C.V., Mexico's leading producer and processor of poultry products, has announced its unaudited results for the first quarter ended 31 March 2010 (1Q10). All figures have been prepared in accordance with Mexican GAAP. In line with the Mexican Accounting Principles, data is presented in nominal Mexican pesos (MXP).

Total sales increased 1.1 per cent from 2009's first quarter (1Q09), while the Company recorded historic chicken volume sold, increasing 16.6 per cent over 1Q09. Sales volumes also increased for table eggs and swine.

EBITDA margin of 8.6 per cent in 1Q10 was lower than the 11.2 per cent in 2009's first quarter. Earnings per share for the quarter reached MXP0.458, compared to MXP0.457 in 1Q09

CEO's comments

Cristobal Mondragon, Bachoco's CEO, commented: "While the economic conditions prevailing in Mexico continued to slowly improve, we observed a good demand for our products, impacting our first quarter results and showing an improvement from the previous year in terms of sales and volume sold.

"In particular, the chicken industry was stable with good demand, lower prices and costs than in the previous quarter. The cost was lower mainly due to the strength of the Mexican peso and stable cost for our main imports.

"As a result of the business agreement reached last July, production efficiency and some organic growth registered in the states of Chiapas and Yucatan, the Company recorded an important increase in volume of chicken sold during this quarter.

"Our egg business, swine and balanced feed showed important improvements as seen in the results for the quarter.

"Our results were strong and sound, while our financial position remained solid even after the investments made during the past quarters," concluded Mr Mondragon.

Results by business segment

Sales of chicken products increased 2.1 per cent compared to 1Q09, as a result of the 16.6 per cent increase in volume, which is mainly attributed to productivity achievements, organic growth and the integration of the new business agreements. This increase in volume was partially offset by the 12.4 per cent decline in chicken prices.

Table eggs
Sales of table eggs products increased 0.2 per cent during the first quarter, mainly stemming from a 2.4 per cent increase in the volume sold. This growth was partially offset by the 2.0 per cent decrease in table eggs prices. This business line remained solid with a good level between demand and supply.

Balanced feed
Sales of balanced feed decreased 3.8 per cent, mainly due to the 0.8 per cent decrease in prices and 3.1 per cent decrease in balance feed volume.

The swine business line was stable during the first quarter. Sales were strong and rose 15.8 per cent, as a result of a 20.1 per cent gain in volume sold; which was partially offset by a 3.6 per cent decrease in swine prices when compared to the same 2009 quarter.

Other lines
Sales of other lines decreased 13.6 per cent when compared with 1Q09, as sales of turkey and by-products declined.

Further Reading

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