Industrias Bachoco reported a 23% increase in net sales for the first quarter of fiscal year 2021, yet experienced a 4.4% drop in net income for the period.
The net income for the period was MXN2.07 billion (US$102.7 million), compared to MXN2.17 billion from the first quarter of fiscal year 2020. The company’s net sales rose from MXN15.7 billion to 19.4 billion.
The quarter ended on March 31.
“We continued observing a good balance between supply and demand which allowed us to achieve outstanding results in our first quarter of 2021, despite adjustments in sales volume, as a result of remaining COVID-19 confinement measures that had effects in some of the markets in which we compete,” said Rodolfo Ramos Arvizu, CEO of Bachoco.
“Regarding our cost of sales, this quarter we observed the impact of higher raw materials prices in (U.S. dollar) terms. Overall, our cost was 11.7% higher than the same quarter of 2020. However, the good balance between supply and demand previously mentioned, allowed us to translate some of that increase to our sales price while we keep doing efforts to also absorb part of that increase thru efficiencies in our processes as well. …
“Unfortunately, the COVID-19 pandemic continues (to affect) not only Mexico, but also economic conditions all around the world. Even if we did not observe material impacts in our operations or results during Q121, we are aware that conditions might change overnight. Therefore, we remain focused on reinforcing our internal capabilities, which will allow us to keep performing at our very best.”
Geographical performance
Bachoco has operations in both Mexico and in the United States, through its O.K. Foods subsidiary.
The company achieved MXN14.6 billion in net sales in Mexico, a 32.2% increase, and net sales of MXN4.7 billion in the United States, a 1.2% increase.
Industrias Bachoco, according to the Poultry International Top Companies Database, is the largest broiler company in Mexico and the tenth largest broiler company in the world. As an egg producer, it ranks second in Mexico and 12th in the world.
O.K. Foods ranks 17th among U.S. broiler companies.
