October 30, 2008
Mexican poultry company, Industrias Bachoco, has posted a net loss of MXN 100.3 million (US$7.8 million) in its third quarter amid rising costs and weak chicken demand.
Chicken sales declined 3.8 percent while prices fell 8.6 percent. Volumes increased 5.2 percent but weak chicken demand hindered sales.
Overall net sales grew slightly by 0.2 percent to MXN 4.7 billion (US$366.4 million), with the increase driven by table eggs sales, which surged by over a quarter. Pig sales rose 25 percent and balanced feed sales climbed 2.7 percent.
Bachoco said overall net sales inched up 0.2% to MXN4.7bn, with the rise driven by table eggs sales, which jumped by over a quarter. Swine sales rose by 25% and balanced feed sales were up 2.7%.
The third quarter is traditionally the weakest period of the year. However, poultry demand in this year's third quarter was especially weak, which when combined with the Mexican poultry industry's ongoing growth, led to an oversupply in the markets, said Bachoco CEO Cristobal Mondragon.
The rising increase in raw material prices had also affected the cost of sales, Mondragon added.
Last year, Bachoco earned a net income of MXN 370 million (US$29 million) in the third quarter of 2007.