May 2, 2007

Sales up but profit margins down at Mexico's top chicken processor

Although sales were up, profit margins have been depressed due to rising costs, according to Industrias Bachoco, Mexico's leading poultry processor.

The company's sales increased by 9.3 percent during the first quarter of the year,  totaling US$361 million.

Meanwhile, gross margin for the quarter was 18.5 percent, compared to 21.2 percent achieved during the first quarter of last year. EBITDA margin for the period totalled 9 percent, the group added.

CEO Cristobal Mondragon revealed that margins were depressed by the increased cost of corn and feed that could not be offset despite price increases in the company's main product lines.