AI outbreak impacts Bachoco’s Q1 results
Mexican poultry producer, Industrias Bachoco has reported a 7% net sales increase in its first quarter 2013 results.
"In the first quarter of 2013, prices of our main raw materials stabilised with a downward trend; also, we observed a good balance between supply and demand across our main business lines,” stated Rodolfo Ramos Arvizu, chief executive officer of Bachoco.
“Based on those facts, Bachoco reported satisfactory results, with total sales up 7.0%, with operating and EBITDA margins of 7.6% and 9.5% respectively, as a result of our productivity and commercial efforts. In particular, we registered important improvements in operating expenses, which came in at 8.0% over net sales, among the lowest percentages in the Company's history."
"On the other hand, we faced sanitary challenges, as some of our farms were affected by an outbreak of influenza H7N3, which only affects birds; we immediately reinforced our bio-security programs, and executed several measures to mitigate negative effects in this regard and to assure our standard quality service to our customers. As of today, the outbreak of influenza is under control but not yet eradicated.
"Due the influenza outbreak, in the first quarter we recognised a one-time charge in our production cost of Ps. 220.8 million, mainly attributed to the loss of inventory.
Finally, I would like to reiterate the strong financial position that the Company maintains, with negative net debt of Ps. 3,630.3 million at the end of the first quarter."
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