Mexico's Industrias Bachoco reports increase in sales volume

Industrias Bachoco has announced its 2010 first quarter results, which include a 1.1% increase in total sales for the quarter compared to the same period last year.

 

Industrias Bachoco, Mexico's leading producer and processor of poultry products, has announced its unaudited results for the first quarter ended 31 March 2010.

 

Total sales increased 1.1% from 2009's first quarter, while the company recorded historic chicken volume sold, increasing 16.6% over Q1 2009. Sales volumes also increased for table eggs and swine.

 

EBITDA margin of 8.6% in Q1 2010 was lower than the 11.2 % in 2009's first quarter. Earnings per share for the quarter reached MXN0.458 (US$0.04), compared to MXN0.457 in Q1 2009.

 

Cristobal Mondragon, Bachoco's CEO said, "While the economic conditions prevailing in Mexico continued to slowly improve, we observed a good demand for our products, impacting our first quarter results and showing an improvement from the previous year in terms of sales and volume sold.''

 

"In particular, the chicken industry was stable with good demand, lower prices and costs than in the previous quarter. The cost was lower mainly due to the strength of the Mexican peso and stable cost for our main imports,'' he said.

 

"As a result of the business agreement reached last July, production efficiency and some organic growth registered in the states of Chiapas and Yucatan, the company recorded an important increase in volume of chicken sold during this quarter,'' he said.

 

"Our egg business, swine and balanced feed showed important improvements as seen in the results for the quarter,'' he said. "Our results were strong and sound, while our financial position remained solid even after the investments made during the past quarters," concluded Mondragon.

 

Sales of chicken products increased 2.1% compared to Q1 2009, as a result of the 16.6% increase in volume, which is mainly attributed to productivity achievements, organic growth and the integration of the new business agreements. This increase in volume was partially offset by the 12.4% decline in chicken prices.

 

Sales of table eggs products increased 0.2% during the first quarter, mainly stemming from a 2.4% increase in the volume sold. This growth was partially offset by the 2% decrease in table eggs prices. This business line remained solid with a good level between demand and supply.

 

Sales of balanced feed decreased 3.8%, mainly due to the 0.8% decrease in prices and 3.1% decrease in balance feed volume.

 

The swine business line was stable during the first quarter. Sales were strong and rose 15.8%, as a result of a 20.1 % gain in volume sold; which was partially offset by a 3.6% decrease in swine prices when compared to the same 2009 quarter.

 

Sales of other lines decreased 13.6% when compared with Q1 2009, as sales of turkey and by-products declined.