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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Bachoco Reports on FY 2018

01/31/2019

In a press release dated January 30th Industrias Bachoco S.A.B. de C.V. (IBA) announced results for Fiscal 2018 ending December 31 st 2018.

The following table summarizes the results for the period compared with the values for the corresponding previous fiscal year (Values expressed as $ x 1,000 using a conversion of Mex$19.1=US$1)

Year Ending December 31st.

2018

2017

Difference (%)

Sales:

$3,220,000

$3,039,000

+6.0

Gross profit:

$504,100

$552,200

-8.7

Operating income:

$199,300

$277,000

-28.1

Net Income

$180,400

$259,400

-30.5

       

Gross Margin (%)

15.7

18.2

-13.7

Operating Margin (%)

6.2

9.1

-31.8

Profit Margin (%)

5.6

8.5

-34.1

Long-term Debt:

$80,900

$81,400

-0.6

Capital expenditure

$104,500

$184,000

-43.2

       
       
       
       

Total Assets

$2,761,000

$2,646,900

+4.3

Market Capitalization

$2,300,000

   

52-Week Range in Share Price: $32.66 to $64.36

Market Close January 31st. $46,00

Forward P/E: 12.3 Beta 0.8

In commenting on results, Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated "With 4Q18, we ended a challenging second half of the year in both geographies in which we participate. Even when improving, most of the conditions prevailing in 3Q18 continued into 4Q18.

In Mexico, during the quarter we observed a poultry industry returning to normalized growth rates, improving the balance between supply and demand when compared to 3Q18. These conditions and seasonality effects lead us to better prices versus the previous quarter. Regarding cost of sales, volatility on the exchange rate during the quarter offset the benefits of lower raw material costs in dollar terms. Increases in fuel prices had a negative impact on our SG&A when compared to the same period of 2017.

In the US, we kept observing oversupply conditions for proteins that put pressure on chicken prices. However, this negative impact was partially compensated by the integration of our Albertville operation that offset low-prices".


 
Copyright 2018 Simon M. Shane