Mexican poultry producer, Industrias Bachoco, has reported 11.9% increased net sales for the 4Q and 5.2% for the year 2014 in its recently released figures.
"During the fourth quarter, we observed a good level of demand which, combined with a balanced supply for our main product lines in the markets in which we participate and the reduction trend in our main raw materials, allowed us to reach results above the fourth quarter of 2013, in terms of sales and profitability margins," stated Rodolfo Ramos Arvizu, chief executive officer of Bachoco.
"Balanced demand and supply"
"For the whole year, we posted improvements in our total sales, as well as in our operating margins, compared to previous year. This was the result of external and internal conditions: on one side, corn prices, exchange rate, and balanced demand-supply were stable most of the year; on the other side, as a result of initiatives the Company put in place, we achieved further efficiencies and remained close to our customers.
"These positive results further strengthened our financial structure; our net cash totaled more than $9,500 million pesos that will allow us to support the growing programs we have implemented.
Lower volume sold in egg business
In 4Q14, the Company's net sales totaled $10,899.3 million, $1,161.0 million or 11.9% more than $9,738.3 million reported in 4Q13. This is as a result of more volume sold and higher prices in our main product lines during the quarter; the increase in sales was partially offset with lower volume sold in our egg business line.
In 4Q14, sales of the company's US operations were strong and in line with the Mexican operation; it represented 20.5% of total sales compared to 21.3% in 4Q13.
The company's gross profit in 4Q14 was $2,522.9 million, with a gross margin of 23.1%; this result is larger than a gross profit of $1,214.3 million and a gross margin of 12.5% reported in 4Q13.