Despite a weak peso, Mexican poultry company Bachoco reported a net income of $MXN653 million (US$34.4 million) during the first quarter of fiscal year 2017, an improvement of 9.4 percent.

The Mexico-based poultry company with operations also in the United States, recently released its financial results for the quarter that ended on March 31.

“In Mexico, the quarter started with a high level of volatility, however, the Mexican peso strengthened at the end of the quarter, even so, the Mexican peso depreciated around 11 percent in Q1 2017 when compared with Q1 2016,” said Rodolfo Ramos Arvizu, CEO of Bachoco.

“Regarding the poultry industry, we observed good levels on the demand side that combined with a normalized growth rate in both Mexico and the U.S. markets. This led to a good balance between supply and demand, allowing a price recovery when compared to the first quarter of 2016.”


Bachoco’s net sales

Net sales for Bachoco were up about 15.6 percent for the quarter on a year-over-year basis, at MXN13.7 billion (US$720 million). Broken down by region, the company saw its biggest improvement in the United States, where net sales improved 23.8 percent to MXN3.7 billion (US$200 million) . Its net sales in Mexico increased roughly 12.8 percent at MXN 10 billion (US$530 million).

O.K. Industries, the 17th largest broiler company in the United States, is Bachoco’s U.S. subsidiary.

According to a press release from Bachoco, the company gained extra income during the quarter through the sale of byproducts and unused assets.