Industrias Bachoco S.A.B. de C.V., based in Celaya, Mexico, announced that its income tax rate will increase two percentage points for the year 2010 as a result of Mexican tax law reforms.
As a consequence of the increase, the producer and processor of poultry products recorded a one-time charge of about Ps.200M for deferred taxes in its fourth quarter of 2009. It reported that the charge would not affect the company’s cash flow.
Bachoco does not expect any other material effects on its financial condition as a result of the tax reforms.