Industrias Bachoco reports first quarter 2012 results
Numbers improved significantly over 2011
Industrias Bachoco reported a net income of 660.6 million pesos (US$49.86 million) in the first quarter of 2012, a 328.9 percent increase over the 154 million pesos (US$11.62 million) reported during the same quarter in 2011.
The Mexican poultry industry demonstrated an adequate balance between supply and demand, with greater stability within the international markets of the main raw materials and an appreciation of the Mexican peso against the U.S. dollar, according to the company. "During the first quarter we observed a strong demand for chicken and eggs in the Mexican market, which allowed us to close the gap in prices following the sharp increases in raw material costs in recent quarters," said Industrias Bachoco in a statement. "As a result, we had increases in sales across all our business lines, and when combined with the additional sales generated from our operation in the United States, Bachoco achieved record first quarter sales."
During the first quarter, chicken product sales grew to 7.89 billion pesos (US$595.5 million), which represented 84.5 percent of the company's net sales. This increase in chicken sales resulted from a 21 percent increase in chicken prices and a 33.1 percent growth in volume of chicken sold.
Table egg sales totaled 634.5 million pesos (US$47.89 million), which represented 6.8 percent of Industrias Bachoco's net sales. Egg sales rose 29.2 percent compared to the first quarter of 2011, as a result of a 19.8 percent increase in prices and a 7.9 percent rise in volume sold. Increase in sales stemmed from the reinstallation of production capacity within the company's farms in Mexicali, which had dropped as a result of the earthquake that affected its facilities in 2010.