Mexico-based poultry and meat company Bachoco has reported a return to profitability during the fourth quarter of fiscal year 2014, and an increase in net income for the year. Both periods ended on December 31, 2014.
Bachoco, the parent company to U.S. poultry company OK Foods, reported a net income of MXN1.06 billion (US$70 million) during the fourth quarter, recovering from net losses of MXN452.5 million (US$30.6 million) for the fourth quarter of 2013. For the year, Bachoco reported a net income of MXN3.9 billion, (US$260 million) nearly doubling the Bachoco fiscal year 2013 net income of MXN2.04 billion (US$140 million).
Net sales during the fourth quarter increased 11.9 percent, while net sales for the year improved 5.2 percent.
"During the fourth quarter, we observed a good level of demand which, combined with a balanced supply for our main product lines in the markets in which we participate and the reduction trend in our main raw materials, allowed us to reach results above the fourth quarter of 2013, in terms of sales and profitability margins,” said Rodolfo Ramos Arvizu, CEO of Bachoco.
“For the whole year, we posted improvements in our total sales, as well as in our operating margins, compared to previous year. This was the result of external and internal conditions: on one side, corn prices, exchange rate, and balanced demand-supply were stable most of the year; on the other side, as a result of initiatives the company put in place, we achieved further efficiencies and remained close to our customers.
“These positive results further strengthened our financial structure; our net cash totaled more than $9,500 million pesos that will allow us to support the growing programs we have implemented.”