Bachoco, a Mexico-based poultry company that also has operations in the U.S., reported a nearly 162 percent increase in net income for the fourth quarter of fiscal year 2016.
Bachoco achieved a net income of MXN976.4 million (US$46.5 million) for the quarter, which ended on December 31.
“For the quarter, we observed a poultry industry growing at normalized rates in both Mexico and the U.S. markets,” said Rodolfo Ramos Arvizu, CEO of Bachoco. “We observed a good balance between supply and demand, resulting in a price recovery when compared to the same quarter of 2015.”
Bachoco net sales increases
The company reported that its net sales were up 21.9 percent for the quarter. Broken down by geography, its net sales in the U.S. saw the biggest rise. U.S. net sales were up 38.5 percent, while net sales in Mexico were up 16.6 percent.
O.K. Industries is Bachoco’s U.S. subsidiary.
Of the company’s MXN14.2 billion (US$680 million) in net sales, MXN12.7 billion (US$600 million) was attributable to Bachoco’s poultry segment.
Bachoco looks to grow
During a quarterly conference call, company officials stated that it was looking at expanding its operations, potentially in the Yucatan peninsula.
In addition, the company is looking at some acquisition possibilities, although it did not offer specifics on where or when these acquisitions would take place. During the same call, the company discussed expanding its distribution capacity.