Industrias Bachoco announces good results
Industrias Bachoco, Mexico's leading producer and processor of poultry products, announced its results corresponding to the 4th quarter and full year ended December 31, 2008.
Total sales in 4Q 2008 increased 23.3% when compared with the same period of 2007; recording the highest sales level in a quarter in the company's history, and increasing 10.4% for the full year.
Chicken sales volume increased of 7.1% in the period, traditionally the best quarter of a year, and a 4.9% during 2008.
Cristobal Mondragon, Bachoco's CEO, stated, "During the quarter, the company had to tackle several adverse conditions that again affected our results: inventory on hand at higher cost, currently being consumed, affected our cost of sales, and the Mexican economy slowed down following global trends, which led us to post negative results in terms of operating margin. In addition, the abrupt depreciation of the Mexican peso against the US dollar also affected our operating results, but mainly affected our net margins for the quarter."
"Despite this adverse environment, and oversupply conditions in the chicken market at the beginning of the quarter, which were later reversed in the end, we were able to record encouraging results. We recorded the highest sales level for a quarter in the company's history; particularly robust was the volume of chicken sold, our main product line, while reporting strong results in table eggs, our second main business line," the CEO added.
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