Company update: Industrias Bachoco Q3 results
Mexican poultry producer, Industrias Bachoco, has released unaudited results for the third quarter 2012 highlighting that net sales increased 52.0%.
"Bachoco's third quarter results were sound, due to an adequate balance between supply and demand in the Company's main business lines, improvements in production efficiencies as a result of investments in productivity projects, as well as a reduction in operating expenses as a percentage of sales, which allowed Bachoco to offset cost increases, which have been driven by sustained raw materials price increases,” commented the CEO on release of the figures.
"The Company was able to sell all of its chicken and egg production, and recovered a portion of price lags within these business lines.In addition, Bachoco's US complex continued to operate with positive results, with its integration into the Company in-line with Bachoco's overall strategy.
"Furthermore, the Company successfully issued its first local bond during the third quarter, which will be mainly used to pre-pay some debt as well as to diversify and make the Company's debt structure more efficient. It is worth nothing that the Company's financial position remains strong, with negative debt net."
The Company's 3Q12 net sales totaled Ps. 9,901.0 million, 52.0% higher than the Ps. 6,514.7 million reported in 3Q11. This resulted from strong increases in sales across all business lines. In particular, chicken sales increased year-over-year mainly as a result of the integration of Bachoco's US subsidiary "OK Foods", which was consolidated in November 2011.
The Company's production costs continued to be negatively impacted by persistently high input costs, primarily grain and soybean meal.
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