Poultry producer Industrias Bachoco reported a net majority income of Ps. 627.5 million (US$48.1 million) in the third quarter of 2012, up significantly from a loss of Ps. 105.6 million (US$8.1 million) during the same quarter of 2011, according to the company's latest financial report.
The company's year-to-date numbers are also well above 2011's, currently standing at Ps. 1.605 billion (US$123 million), compared to Ps. 190.2 million (US$14.58 million) in the first three quarters of 2011. "Bachoco's third quarter results were sound, due to an adequate balance between supply and demand in the company's main business lines, improvements in production efficiencies as a result of investments in productivity projects, as well as a reduction in operating expenses as a percentage of sales, which allowed Bachoco to offset cost increases, which have been driven by sustained raw materials price increases," said the company. "The company was able to sell all of its chicken and egg production, and recovered a portion of price lags within these business lines."
Bachoco's U.S. complex continued to operate with positive results, with its integration into the company in line with Bachoco's overall strategy. Furthermore, said Bachoco executives, the company successfully issued its first local bond during the third quarter, which will be mainly used to pre-pay some debt as well as to diversify and make the company's debt structure more efficient.