July 25, 2006

Mexico's Bachoco Q2 net profit down 54.7 percent

Mexican poultry company Industrias Bachoco SA (IBA) on Monday (Jul 24) reported a 54.7 percent drop in second-quarter net profits due to lower sales and rising costs.

Net profits, at 308.7 million pesos (US$28.4 million), were down from 682.1 million for the year-ago quarter, the company said in a filing with the Mexican Stock Exchange.

"During the second quarter of 2006, market conditions in the poultry industry showed a modest oversupply and increases in the cost of our main raw materials," Bachoco Chief Executive Cristobal Mondragon said.

Sales fell 6.8 percent to 3.64 billion pesos due to lower revenues from chicken and pork products, while the cost of sales rose 8.4 percent to 2.86 billion pesos.