Mexican poultry producer, Industrias Bachoco, has reported a 4.7% decrease in net sales in its third quarter results.
Rodolfo Ramos Arvizu, chief executive officer of Bachoco, stated, "This was a typical third quarter for the company, in terms of seasonality, with chicken prices at their weakest.
"Nevertheless, we continued to post positive results and margins in all of our main business lines, with chicken volumes fully recovering by the end of the third quarter as we had anticipated.
"As a result, we estimate that our chicken market share has been recovered, thanks to the confidence of our clients in our company and the excellent job of our sales force.
"Additionally, we faced a tough basis of comparison due to strong results posted in the third quarter of 2012, which was atypically strong, in terms of seasonality for the poultry industry.
"Lastly, our CAPEX were entirely financed with internal resources and our balance sheet remains solid, with strong cash levels."
The Company's 3Q13 net sales totaled Ps. 9,437.0 million, 4.7% below the Ps. 9,901.0 million reported in 3Q12. This mainly resulted from lower chicken prices in the Mexican market and a drop in chicken volume compared to 3Q12. This was partially offset by an increase in egg sales, while the rest of the Company's business lines had mixed results.
In 3Q13, sales of their US operations represented 23.0%% of total sales, compared with 22.0% in 3Q12.