Bachoco has reported an improvement in net income and net sales for the third quarter of fiscal year 2017, which ended on September 30.
In announcing the quarterly financial results on October 23, Bachoco, a Mexican poultry company that also has operations in the United States, reported a net income of MXN997.9 million (US$52 million), up about 23 percent when compared to the third quarter of fiscal year 2016.
The company also reported net sales of MXN14.2 billion (US$740 million), an improvement of about 12.7 percent. Its sales volume increased by nearly 3 percent.
"In México, we continued observing a normalized supply in the poultry industry and as it is typical for the third quarter, lower prices than in 2Q17, we also continued with good demand levels,” Rodolfo Ramos Arvizu, CEO of Bachoco, stated in a press release. “In the U.S. industry, we observed solid prices for most of the quarter. In both markets where we participate we observed a price adjustment at the end of the quarter.”
Net sales by country
Bachoco achieved an increase in net sales in both the United States and Mexico when compared to the third quarter of fiscal year 2016.
In Mexico, net sales for the quarter improved 5.1 percent to MXN9.9 billion (US$520 million), while in the U.S., net sales improved 35.3 percent to MXN4.3 billion (US$224 million)
Update on acquisitions
During the third quarter, Bachoco announced the acquisition of La Perla, a pet food company located in the Mexican state of Queretaro, and of Albertville Quality Foods, a further processing company located in Alabama. Bachoco stated on October 23 that it is in the process of integrating both companies into its whole operations and believes that most of the benefits from those acquisitions are yet to come. Albertville Quality Foods is being integrated into Bachoco's OK Foods subsidiary.