INDUS BCHOR SAB CV : Industrias Bachoco Announces Second Quarter 2008 Results
07/24/2008| 05:00pm US/Eastern
Recommend:
CELAYA, Mexico, July 24 /PRNewswire-FirstCall/ -- Industrias Bachoco
S.A.B. de C.V. ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco),
Mexico's leading producer and processor of poultry products, today announced
its unaudited results for the second quarter ended June 30, 2008. All figures
have been prepared in accordance with Mexican GAAP. In line with the Mexican
Accounting Principles, 2008 data is presented in nominal pesos while that of
2007 is presented in constant pesos as of December 31, 2007.
Highlights:
-- The Company recorded sales of Ps. 4,987.5 million during the second
quarter of 2008, 3.0% above the Ps. 4,842.1 million reached during the same
period last year.
-- Bachoco sales increased in most of its business lines: chicken, eggs,
swine and other.
-- The company reached positive operating results during the quarter, with
an operating margin of 6.2% and EBIDTA margin of 9.2%.
-- EPS were Ps. 0.32 (US$ 0.38 per ADS) versus Ps. 0.80 (US$ 0.93 per ADS)
reached in 2Q07.
CEO's Comments:
Cristobal Mondragon, Bachoco's CEO, stated, "Second quarter results
continued largely affected by the global trend of higher raw materials prices,
which continued to affect the cost of grain and soybean meal. The cost of
these ingredients rose even higher during this quarter and reached record
levels. These increases coupled with a sluggish economic condition in our
markets that did not allow us to fully transfer cost increases into chicken
prices, and continued to affect the Company's results.
"Despite said adverse difficulties, we were able to deliver positive
results given our focus to reinforce productivity, and optimize our product
mix, while keeping the best level of service for our customers.
"Our commitment will continue to satisfy our customers' needs by providing
high quality products, delivering satisfactory results to our shareholders and
continuing to implement our growth plans," concluded Mr. Mondragon.
Releases during the quarter:
-- On April 16 the Company announced a partial fire at the secondary
process of its plant located in Monterrey in northern Mexico.
-- On May 29 the Company announced the construction of new farms to be
built in the south of Mexico.
To see the complete version of these releases, please visit our web page.
http://www.bachoco.com.mx
SECOND QUARTER 2008 RESULTS
Net Sales
Net sales for the quarter reached Ps. 4,987.5 million, 3.0% above the Ps.
4,842.1 million reported in 2Q07. This increase was mainly driven by the 1.3%
increase in chicken sales, 15.9% in table eggs sales and 61.4% in swine sales,
which was partially offset by 7.2% decrease in balanced feed sales.
Net Sales 2Q08 (%) 2Q07 (%)
CHICKEN 77.8 79.1
EGGS 9.4 8.3
BALANCED FEED 7.4 8.2
SWINE 1.1 0.7
OTHER LINES 4.3 3.7
TOTAL COMPANY 100.0 100.0
Operating Results
Bachoco's second quarter gross margin was 17.9%, lower than 23.1% reached
in 2Q07. The decrease is mainly attributed to the constant increases in raw
materials cost. The Company's operating profit was Ps. 311.6 million lower
than Ps. 559.6 million reached in 2Q07. EBITDA for the quarter was
Ps. 460.3 million, with a margin of 9.2%, lower than Ps. 698.5 million reached
in the same period of 2007.
Taxes
Taxes recognized by the Company during the second quarter were
Ps. 54.2 million.
Net Income
Net income for second quarter 2008 was Ps. 194.4 million, or Ps. 0.32 per
share (US$0.38 per ADS), compared to net income of Ps. 479.2 million, or
Ps. 0.80 per share (US$0.93 per ADS) reported in the same 2007 period.
RESULTS BY BUSINESS SEGMENT
Chicken
Chicken sales rose 1.3% during 2Q08 as a result of 1.4% increase in price
while volume sold remained at the same level of 2Q07. At the beginning of the
quarter, chicken prices remained at a good level, but the situation changed
towards the end of the quarter, as chicken prices dropped lower than expected.
Table Eggs
During this quarter, sales of table eggs were stronger, increasing by
15.9% from the same quarter last year, as a result of 23.8% increase in egg
prices, due partially to a better balance in the market supply, as well as a
better product mix of the company's products, with both issues contributing to
partially offsetting a 6.4% decrease in volume.
Balanced Feed
Sales of Balanced Feed declined 7.2% when compared with 2Q07, despite a
16.9% price increase. Volume of balance feed sold dropped 20.7%, as a result
of the large period of higher costs in our main raw material.
Swine
Sales of swine increased 61.4.0% from the previous year; the strong
increase stems from a 23.8% volume gain and a 30.4% increase in swine prices,
as the Mexican market's swine oversupply softened.
Other Lines
Sales of other lines rose 21.1% during 2Q08, mainly as a result of
increases in sales of turkey and other lines.
FIRST HALF OF 2008
Net Sales
Net sales for the first half of 2008 amounted to Ps. 9,730.8 million, 9.2%
above Ps. 8,913.0 million reported in 1H07. The increase was mainly driven by
the 8.1% increase in chicken sales, 20.8% in table eggs sales and 35.2% in
swine sales, which was partially offset by 0.6% decrease in sales of balanced
feed.
Net Sales 1H 2008(%) 1H 2007(%)
CHICKEN 77.0 77.8
EGGS 10.3 9.4
BALANCED FEED 7.6 8.3
SWINE 1.0 0.8
OTHER LINES 4.1 3.8
TOTAL COMPANY 100.0 100.0
Operating Results
Bachoco's gross margin for the first half was 17.7%, lower than 21.0% in
1H07. The decrease is directly attributed to the standing increases in raw
materials costs. The Company's operating profit was Ps. 556.0 million, lower
than Ps. 786.8 million reached in 1H07. EBITDA was Ps. 853.7 million; lower
than Ps. 1,066.4 million in the same period of 2007. EBITDA margin was 8.8%.
Taxes
Taxes recognized by the Company during the first half of the year were Ps.
117.3 million.
Net Income
Net income for first half of the year was Ps. 425.2 million, or Ps. 0.71
per share (US$0.83 per ADS), compared to net income of Ps. 728.0 million, or
Ps. 1.21 per share (US$1.41 per ADS) reported in the same 2007 period.
Balance Sheet
The Company's financial structure remained healthy. Liquidity is solid
with cash and cash equivalents of Ps. 2,878.8 million as of June 30, 2008.
Total debt outstanding was Ps. 72.7 million as of June 30, 2008.
CAPEX during the first half of 2008 amounted to Ps. 685.7 million.
Adoption of New Accounting Standards
As of January 1, 2008, the Company has adopted the changes to
"Inflationary Effects" in accordance with the Mexican Accounting Principles.
Due to the relatively low inflation that the country has consistently achieved
during the past several years, a new accounting principle went into effect on
January 1, 2008, which eliminates the recognition of inflationary effects in
its financial information. Consequently, financial information corresponding
to the year 2007 is expressed in millions of Mexican pesos with purchasing
power as of December 31, 2007, while the financial information for the year
2008 is stated in current or nominal Mexican pesos.
Company Description
Industrias Bachoco S.A.B. de C.V. (also referred in this report as
Bachoco) was founded in 1952. The Company is the largest poultry company in
Mexico, with over 700 production and distribution facilities currently
organized in nine complexes throughout the country. Bachoco's main business
lines are chicken, eggs and balanced feed, and the Company also is present in
other business like swine, beef, margarine and turkey. The Company's
headquarters are in Celaya, Guanajuato.
Industrias Bachoco made an initial public stock offering in September
1997. Its securities are listed and traded on the BMV (Bachoco) and on the
NYSE (IBA).
For more information, please visit Bachoco's website at
http://www.bachoco.com.mx or contact our IR department.
This press release contains certain forward-looking statements that are
subject to a number of uncertainties, assumptions and risk factors that may
influence its accuracy. Actual results may differ. Factors that could cause
these projections to differ, include, but are not limited to: supply and
demand, industry competition, environmental risks, economic and financial
market conditions in Mexico and operating cost estimates. For more
information regarding Bachoco and its outlook, please contact the Company's
Investor Relations Department.
IR Contacts:
Daniel Salazar. CFO
Caludia Cabrera. IRO
Ph. 011 52 (461) 618 35 55
inversionistas@bachoco.net
In New York:
Lucia Domville
Grayling Global
Ph. (646) 284 9416
ldomville@hfgcg.com
Headquarters:
Industrias Bachoco, S.A.B. de C.V.
Av. Tecnologico 401, Celaya, Gto.
Mexico. 38010
http://www.bachoco.com.mx
INDUSTRIAS BACHOCO, S.A.B. DE C.V.
Consolidated Statements of Income
SECOND QUARTER
U.S.D. Mexican Pesos
2008(1) 2008(2) 2007(3)
Net Sales $484 Ps 4,987 Ps 4,842
Cost of Sales 397 4,093 3,721
Gross Profit (loss) 87 895 1,121
Selling, general and administrative
expenses 57 583 561
Operating Income (loss) 30 312 560
Comprehensive financing (cost) income (5) (47) 38
Interest income 3 31 69
Interest expense and financing cost 5 49 20
Foreign exchange gain (loss), net (3) (30) (11)
Other income (expense) net (1) (14) 12
Income before income tax, asset tax 24 250 610
Total income taxes 5 54 131
Income tax, asset tax 2 24 23
Deferred income taxes 3 30 108
Net Income 19 196 479
Minority net income 0 2 0
Mayority net income 19 194 479
Weighted average shares outstanding
(in thousands) 600,000 600,000 600,000
Net majority Income per share
(in U.S.D. per ADR) 0.38 0.32 0.80
(1) Million of U.S. dollar (Peso at the rate of Ps. 10.3035)
(2) Million of constant pesos as of June 30, 2008
(3) Million of constant pesos as of December 31, 2007
INDUSTRIAS BACHOCO, S.A.B. DE C.V.
Consolidated Statements of Income
FIRST HALF
U.S.D. Mexican Pesos
2008(1) 2008(2) 2007(3)
Net Sales $944 Ps 9,731 Ps 8,913
Cost of Sales 777 8,011 7,041
Gross Profit (loss) 167 1,720 1,872
Selling, general and administrative
expenses 113 1,164 1,086
Operating Income (loss) 54 556 787
Comprehensive financing (cost) income (2) (17) 99
Interest income 9 98 154
Interest expense and financing cost 7 70 37
Foreign exchange gain (loss), net (4) (45) (18)
Other income (expense) net 1 6 54
Income before income tax, asset tax 53 545 939
Total income taxes 11 117 209
Income tax, asset tax 12 127 72
Deferred income taxes (1) (9) 138
Net Income 42 428 730
Minority net income 0 2 2
Majority net income 41 425 728
Weighted average shares outstanding
(in thousands) 600,000 600,000 600,000
Net mayority Income per share
(in U.S.D. per ADR) 0.83 0.71 1.21
(1) Million of U.S. dollar (Peso at the rate of Ps. 10.3035)
(2) Million of constant pesos as of June 30, 2008
(3) Million of constant pesos as of December 31, 2007
Industrias Bachoco, S.A.B. de C.V.
Condensed Consolidated Balance Sheets
U.S.D. Mexican Pesos
2008(1) 2008(2) 2007(3)
ASSETS
Current assets
Cash and cash equivalents $279 Ps 2,879 Ps 3,480
Total accounts receivable 124 1,283 946
Inventories 434 4,473 3,838
Other current assets - -
Total current assets 838 8,634 8,264
Net property, plant and equipment 1,032 10,637 9,829
Other non current assets 36 374 378
TOTAL ASSETS $1,907 Ps 19,645 Ps 18,470
LIABILITIES
Current liabilities
Notes payable to banks 6 67 61
Accounts payable 131 1,348 848
Other taxes payable and other accruals 59 611 573
Total current liabilities 197 2,025 1,482
Long-term debt 7 73 62
Labor obligations 5 56 44
Deferred income taxes and others 188 1,937 2,338
Total long-term liabilities 201 2,066 2,445
TOTAL LIABILITIES $397 Ps 4,091 Ps 3,926
STOCKHOLDERS' EQUITY
Majority stockholder's equity:
Capital stock 223 2,295 2,295
Paid-in capital 64 660 660
Reserve for repurchase of shares 24 244 244
Retained earnings 1,471 15,156 14,250
Net majority income of the year 41 425 728
Deficit from restatement of
stockholder's equity (363) (3,738) (3,664)
Derivate financial instruments 46 469 (15)
Total majority stockholder's equity 1,505 15,510 14,498
Minority interest 4 44 46
TOTAL STOCKHOLDERS' EQUITY 1,510 15,554 14,544
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,907 Ps 19,645 Ps 18,470
(1) Million of U.S. dollar (Peso at the rate of Ps. 10.3035)
(2) Million of constant pesos as of June 30, 2008
(3) Million of constant pesos as of December 31, 2007
Industrias Bachoco, S.A.B. de C.V.
Condensed Consolidated Statements of Changes in Financial Position
U.S.D. Mexican Pesos
2008(1) 2008(2) 2007(3)
Operating Activities:
Net Income $42 Ps. 428 Ps. 730
Adjustments to Reconcile Net
Income to Resources Provided
by Operating Activities:
Depreciation and Others 29 295 278
Changes in Operating Assets and
Liabilities 35 357 (900)
Deferred Income Taxes (42) (438) 156
Resources Provided by
Operating Activities $62 Ps. 643 Ps. 264
Financing Activities:
Increase of Capital Stock 0 0 (0)
Proceeds from Long-term Debt - - 32
Proceeds from Short-term Debt 12 123 51
Repayment of Long-term Debt
and Notes Payable 9 94 (5)
Decrease in Long-term Debt
in Constant Pesos (18) (187) (0)
Cash Dividends Paid (11) (118) (122)
Resources Provided by (Used in)
Financing Activities $(9) Ps. (88) Ps. (44)
Investing Activities:
Acquisition of Property,
Plant and Equipment (67) (686) (287)
Minority Interest (0) (3) 1
Others (3) (27) (38)
Resources Used in Investing
Activities $(69) Ps. (715) Ps. (324)
Net (Decrease) Increase in Cash
and Cash Equivalents $(16) Ps. (161) Ps. (104)
Cash and Cash Equivalents at
Beginning of Period 295 3,040 3,584
Cash and Cash Equivalents at
End of Period $279 Ps. 2,879 Ps. 3,480
(1) Million of U.S. dollar (Peso at the rate of Ps. 10.3035)
(2) Million of constant pesos as of June 30, 2008
(3) Million of constant pesos as of December 31, 2007
SOURCE Industrias Bachoco S.A.B. de C.V.
Recommend :
