Industrias Bachoco reported a 10.6% increase in net sales for the third quarter of the 2021 fiscal year.
The company announced its financial results for the period ending September 30 on October 25.
During the quarter, Bachoco achieved net sales of MXN20.2 billion (US$1 billion) for the quarter. Breaking that down geographically, net sales in Mexico amounted to MXN14.96 billion, while MXN5.27 billion in net sales was achieved in the United States, through Bachoco’s O.K. Foods subsidiary.
“This was a typical third quarter for the company, in terms of seasonality, with chicken prices at their weakest as compared to the first half of the year,” stated Rodolfo Ramos Arvizu, CEO of Industrias Bachoco.
“In Mexico, we observed lower demand which negatively affected our prices. Unlike the U.S., where main commodity prices remained strong for most of the quarter.
The CEO noted that prices of corn and soybean meal were high during the quarter when compared to previous years, and that fully impacted the costs in Mexico and in the United States.
While the company was challenged by high prices for feed inputs, Bachoco had a substantial financial turnaround when compared to the third quarter of the 2020 fiscal year. During the most recent quarter, Bachoco’s net financial income amounted to MXN460 million, compared of a net financial loss of MXN 267.5 million one year ago.
“Despite the challenging conditions of this quarter, the company remained in a healthy financial condition as we reached a net cash level … which will allow us to continue to support our growth plans,” he said.
Industrias Bachoco, according to the WATT Poultry International Top Companies Survey, is Mexico’s largest broiler producer and ranks ninth globally, having slaughtered 620 million broilers during the past year. As an egg producer, Bachoco ranks second in Mexico and 13th globally, with a flock of 13 million hens.
