Industrias Bachoco, the largest poultry company in Mexico, announced higher revenue and sales for the fourth quarter and full year 2017.
Earnings per basic and diluted share totaled MXN2.46 (US$0.13) for the fourth quarter and MXN8.07 (US$0.44) for the full year. The company’s net sales increased 5.9 percent in the fourth quarter and 11.6 percent for the full year. EBITDA margin was 7.1 percent for the fourth quarter and 10.9 percent for the whole year.
Rodolfo Ramos Arvizu, CEO of Bachoco, said: “With the fourth quarter, we ended a year of excellent results with historically high net sales, EBITDA and earnings per share, among others. All of this, despite the challenges we faced in the fourth quarter.”
In Mexico, during the first part of the quarter, Arvizu said, the company observed oversupply conditions in the chicken industry, leading to lower prices. However, by the end of the quarter, there was a recovery in the demand and a better balance between supply and demand.
In the U.S., Bachoco saw similar prices to the fourth quarter of 2016 for poultry, despite an industry growing at slightly higher rates than normalized levels during the fourth quarter.
“We continue working on the integration of our recent acquisitions, Albertville Quality Foods and La Perla, in order to capitalize the synergies as fast as we can,” Arvizu said. “We continued with our growth plans as our CAPEX reached $3,479.3 million for the year, including acquisitions.