October 28, 2009

Industrias Bachoco, a Mexican poultry producer and processor, has reported net sales of MXN5.61billion for the third quarter of 2009, up 19.3 percent on-year.

The increase was mainly driven by a 24.7-percent increase in chicken sales, 1.7-percent increase in table eggs sales, and 7.3-percent increase in pig sales, but was partially offset by a 2.7-percent decrease in balance feed sales.

Operating profit for the quarter reached MXN35.3 million, compared to a loss of MXN243.6 million in the same quarter of 2008.

Operating margin for the quarter was 0.62 percent. Net majority loss totalled MXN53.1 million compared to a net majority loss of MXN100.3 million in the same period last year.

Net sales for Jan-Sep recorded MXN17.47 billion, up 21 percent on-year. The increase was driven by a 24.2-percent increase in chicken sales, 13.8-percent increase in table eggs sales, 15.3-percent increase in pig sales and 0.2-percent increase in balanced feed sales.

Operating profit for the nine months was MXN1.38 billion, up from MXN310 million in the same period last year. Net majority income was MXN916.5 million, compared to MXN324.9 million in the same period last year.

CEO Cristobal Mondragon said the Mexican poultry industry was affected by higher raw materials costs, mainly soymeal.

The slowdown in the economy did not allow the company to fully transfer the costs increases to its products' prices, and the third quarter is traditionally the weakest of the year, he said.

Despite so, Bachoco has managed to increase its total sales and were able to reach positive operating results, said Mondragon.

Bachoco continued implementing its growth plans through the integration of several business agreements reached during the quarter, with which the company expects to strengthen its leadership position in the Mexican poultry industry, Mondragon added.

US$1 = MXN13.2326 (Oct 28)