Industrias Bachoco reports increased poultry sales

Mexican poultry producer, Industrias Bachoco, has reported a surprise sales increase in its third quarter (3Q14) results.

Net sales increased 12.5% in 3Q14. EBITDA margin was 16.4% for 3Q14 and 14.9% in the 9M14.

Rodolfo Ramos Arvizu, chief executive officer of Bachoco, stated: “For Bachoco, a third quarter used to be the weakest quarter for the year in terms of profitability; this year, the quarter did not follow that pattern, as favourable conditions present in the second quarter were extended into the third one.

“Flexibility in our processes and implementation of new procedures, allowed us to take advantage of the conditions the industry offered and to achieve sound results.

“In general, during the quarter we observed a very stable supply in our main product lines in both the US and Mexican markets; this, combined with the downtrend in our main raw material prices, allowed us to post a reduction in our production cost, contributing to our profits.

The Company remained in a healthy financial condition as net cash reached $7,766.3 million, as the cash and equivalents has increased 36.6% since the beginning of the year.”

The Company’s 3Q14 net sales totalled $10,615.0 million, $1,178.0 million or 12.5% more than $9,437.0 million reported in 3Q13. The increase is a result of more volume of chicken sold and solid chicken and swine prices during the quarter; this result was partially offset with decreases in sales volume in the rest of our business lines when compared to the same quarter of 2013.

In 3Q14, sales of our US operations remained strong and represented 20.1% of our total sales; this compares with 22.7% in 3Q13.