Industrias Bachoco on July 23 announced its unaudited results for the second quarter and first half of fiscal year 2019. Both periods ended on June 30.
Among the most important figures, are that net income grew 4.1 percent in the second quarter of 2019, although it decreased 1.0 percent in the first half of the year. Net sales were MXN16.884 billion (US$880 million),which was MXN670.5 million (US$35.12 million) more than those recorded in the second quarter of 2018 of MXN16.213 billion (US$850 million). During the first half of 2019, net sales totaled MXN31.207 billion (US$1.63 million). Decrease in sales is mainly attributed to lower prices in the main lines compared to the first half of 2018.
Rodolfo Ramos, general director of Bachoco, commented: “The second quarter of this year, demand showed good levels, particularly in Mexico. This led us to observe improvements in prices in the poultry industry, which is in line with the seasonal behavior.”
“In addition, this improvement in prices allowed them the increase already mentioned in total sales compared to the same period of 2018. This effect, in combination with a lower sales cost, in terms of units, “allowed us to reach a gross margin of 22 percent for the second quarter compared to 19.2 percent for the second quarter of 2018”.
Bachoco, with a strong financial discipline, also managed to keep operating expenses under control in terms of percentage on sales, which was 9.2 percent for the quarter and 9.7 percent for the first half of 2019.
Operating income for this second quarter was MXN2.163 billion, that is, a 30.6 percent higher than the MXN1.656 billion reported in the same period last year.
On the other hand, EBITDA was of 14.7 percent in the second quarter and 10.1 percent in the first half of 2019.
Bachoco remains focused on adding value to shareholders, so in this second half it reported a profit per share of MXN2.65 compared to the MXN2.62 in the second half of 2018. However, for the first half of 2019, earnings per share were MXN3.15, compared to MXN4.72 in the same period of 2018.
Bachoco continues with a solid financial structure, since at the end of the quarter they notify a net cash of MXN13.560 billion, which allows them to continue with the growth plans. It also continues with capital investments, which totaled MXN824.6 million pesos in the first half of 2019, focused on organic growth projects, as well as productivity projects in the production chain.
In the United States, sales accounted for 25.8 percent of the company’s total sales in this second quarter, compared with 28.7 percent for the same period last year.
It is worth mentioning that the company has been listed on the Mexican Stock Exchange and the New York Exchange since 1997 and has the following scores: “AAA (MEX)” the highest rating assigned by Fitch México, and “HR AAA” which means that the issuer or the issue are of the highest credit quality and was granted by HR Ratings de México.
Bachoco, founded in 1952, is the largest poultry company in Mexico and the sixth largest poultry company in the world. In addition, it appears in the top 10 of both chicken and eggs in Latin America. Along with chicken and eggs, its main business lines are feed, pork, and turkey and beef value-added products.
It has more than a thousand facilities organized in 9 production complexes and 64 distribution centers in Mexico and a production complex in the United States. It currently generates more than 27,000 direct jobs.
