Industrias Bachoco reported an 11.8 percent year-over-year increase in net sales for the first quarter of the 2018 fiscal year.
The Mexico-based poultry company reported its quarterly financial results on April 25. The quarter ended on March 31. The company has operations in both the United States and Mexico, and saw an increase in net sales in both markets.
The company, in a press release, stated that its jump in net sales was a result of both price increases in peso terms and more volume sold in its main product lines.
Performance in Mexico
Bachoco’s net sales in Mexico for the first quarter were MXN11.1 billion (US$583 million), an 11.5 percent increase when compared to the MXN9.95 billion (US$522.2 million) reported during the same period one year ago.
“In Mexico, this first quarter started strong,” stated Rodolfo Ramos Arvizu, CEO of Bachoco. “We believe that after the natural events that affected the economic dynamic in some regions of the country, demand for poultry products resumed its normal levels and combined with a moderate supply increase, allowed a balance supply-demand in the market. We did not see oversupply conditions as occurred in (the first-quarter of 2017).”
Ramos added that the prices of Bachoco’s main raw material were stable, although some volatility was seen in soybean meal during the later portions of the quarter.
Bachoco is the largest poultry company in Mexico, holding nearly a 40 percent market share, according to the WATTAgNet Top Poultry Companies Database.
Performance in the United States
Bachoco’s net sales in the United States saw an even greater increase during the first quarter. It’s U.S. subsidiary, O.K. Foods, achieved net sales of MXN4.2 billion (US$220 million), which was a year-over-year increase of 12.7 percent.
“In the U.S. market, we observed stable conditions when compared with the same quarter of last year,” said Ramos.
O.K. Foods is the 17th largest broiler company in the United States, having processed 13.88 million pounds of ready-to-cook poultry on a weekly basis in 2017.
