Industrias Bachoco reports 4Q and FY results for 2013
Industrias Bachoco, has announced results for the fourth quarter ("4Q13") and full year 2013 results ("FY13") ended December 31, 2013.
The highlights of the report are:
- Bachoco achieved record net sales, up 0.9% in FY 2013 from FY 2012.
- EBITDA reached a historic high of $3,935.9 million (€218.24 million) for FY13, with a 9.9% EBITDA margin.
- Net income reached €0.18 per share for FY13.
- The company's 4Q13 net sales totalled €539.97 million, 9.0% below the €593.59 million reported in 4Q12. This mainly resulted from a reduction in prices across the Company's main business lines; this result was partially offset by a 3.7% increase in chicken volume sold.
- In 4Q13, sales of the US operations represented 21.3% of total sales, compared with 20.5% in 4Q12.
- Total sales for the 2013 increased slightly, by 0.9% when compared with 2012, mainly due to better prices in our main product lines, partially offset by lower volume sold during the second and third quarters of 2013.
- Cost of sales totalled €472.64 million, 6.7% lower than €506.52 million reported in 2012, the decrease in cost of sales is mainly attributed to lower volume sold and more stable raw material costs.
- As a result, the company reached a gross profit of €67.33 million and a gross margin of 12.5% in 4Q13, compared to a gross profit of €87.08 million, and a gross margin of 14.7% in 4Q12.
- Meanwhile, gross profit for 2013 was €359.38, or a 16.3% gross margin, 8.2% higher than €335.42 million and a 15.4% gross margin reached in 2012.
- For 4Q13 the company recorded a net loss of €25.9 million, representing a net loss of €0.04 per share, or net loss of €0.5 per ADR; compared with a net income of €30.73 million, which represented €0.05 of net income per share or €0.61 per ADR reported in 4Q12. This variation is mainly attributed to the extraordinary tax charges.
- Net income for year 2013 totalled €105.93 million, or €0.18 and €2.12 per share and per ADR respectively, compared to net income of €1784.57 million or €0.20 or €2.43 per share and per ADR in 2012.
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: "The fourth quarter began with a weak prices scenario in our main business lines, mostly in chicken sales, due to oversupply conditions; however, by the close of the quarter, chicken prices improved due to increased consumption stemming from the Holiday Season. This effect was partially offset by more stable production costs, with positive operating results for the quarter.
The balance for the full year of 2013 was positive, and we were able to achieve efficiencies in key processes, while maintaining a continuous supply to our customers; at the same time we kept solid finances across throughout the entire year and reached historical EBITDA levels.
During the year we faced several challenges along the way, the most significant was the outbreak of avian flu that, for several months, was affecting some facilities located in the central region of Mexico. This situation tested our potential of response; and the result was positive as we were able to quickly recover to our normal production levels, proving that we are a strong Company, not only on our Balance Sheet but also in our operations and processes, all during which we assured the constant supply of products to our customers.
Lastly, throughout all of 2013, we maintained a solid financial structure. Our Company remains a leader of the poultry industry in Mexico and an important player worldwide, with a solid and trusted brand."
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