Industrias Bachoco reported a 27% year-over-year increase in net sales for the second quarter of fiscal year 2021, which ended on June 30.
The Mexico-based broiler and egg producer released its quarterly financial report on July 26.
Net sales for the quarter reached MXN20.86 billion (US$1.04 billion), compared to the MXN16.43 billion for the same quarter of the 2020 fiscal year.
Broken down by geography, net sales in Mexico were MXN15.94 billion, while net sales in the U.S. were MXN4.92 billion. Net sales in Mexico rose 40.5% when compared to the same period of fiscal year 2020, while net sales in the United States declined 3.3% on a year-over-year basis. The company noted that sales from its U.S. operations represented 23.6% of its sales during the past quarter, compared to 31% during the second quarter of 2020.
O.K. Foods is Bachoco’s U.S. subsidiary.
“During this quarter, we continued to observe a good balance between supply and demand. Even though costs were higher, our focus on efficiencies drove us to achieve good results in our second quarter of 2021,” stated Rodolfo Ramos Arvizu, chief executive officer of Industrias Bachoco.
“We reached an increase in total sales of 27% for 2Q21 when compared to the same period of 2020. This led us to a gross margin of 19.0% for 2Q21 compared to the 11.3% of 2Q20. Regarding our cost of sales, raw material prices continued to be high in U.S. dollar terms. This meant an increase in our total cost of sales of 16% when compared to the same quarter of 2020. However, our efforts and focus towards efficiencies in our processes permitted us to offset part of this increase.”
Industrias Bachoco, according to the Poultry International Top Companies survey, is the world’s tenth largest broiler producer and the largest in Mexico, slaughtering 622 million birds annually. As an egg producer, Bachoco ranks second in Mexico and 12th in the world, with a flock of 12.2 million hens.