Bachoco net income declines in FY 2013
Mexican poultry company experiences challenges during fiscal year, including avian influenza outbreaks
Mexican poultry company Bachoco reported a decline in net income for fiscal year 2013 and the fourth quarter of the fiscal year. Both periods ended December 31, 2013.
Bachoco's net income for FY 2013 declined to MXN1.9 billion (US$144 million), dropping from the MXN2.2 billion (US$164 million) reported for FY 2012. Bachoco's net income for the fourth quarter of FY 2013 also dropped from the same period in FY 2012, declining from MXN554.2 million (US$41 million) to MXN452.5 million (US$34 million).
The company, however, did record net sales and historic high earnings before interest, taxes, depreciation and amortization (EBITDA). Those positive yearly results were achieved despite a sluggish fourth quarter.
Bachoco CEO Rodolfo Ramos Arvizu was satisfied with the Bachoco FY 2013 results, despite various challenges. The most notable challenge was the outbreak of avian influenza that for several months affected some Bachoco facilities in central Mexico.
"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," said Arvizu. "At the same time, we kept solid finances across throughout the entire year and reached historical EBITDA levels."
The Bachoco EBITDA for FY 2013 reached a record high of MXN3,936 million (US$296 million), an improvement over the FY 2012 EBITDA of MXN3,467 million (US$261 million). The FY 2013 fourth quarter EBITDA was recorded at MXN583 million (US$44 million), down from the MXN865 million (US$65 million) recorded during the same period in FY 2012.
Bachoco's net sales for FY 2013 also fared well, reaching a record MXN39,710 million (US$2,990 million), a 0.9 percent improvement from FY 2012. Net sales for the fourth quarter were down 9 percent when compared to the previous year, reaching MXN9,739 million (US$733 million).