INDUSTRIAS BACHOCO, S.A.B. DE C.V. CELAYA, Mexico, Jan. 26, 2017 /PRNewswire/ -- Industrias Bachoco, S.A.B. de C.V., "Bachoco" or "the Company", (NYSE: IBA; BMV: Bachoco) announced today its unaudited results for the fourth quarter ("4Q16") and 2016 year ("2016") results ending December 31, 2016. All figures have been prepared in accordance with International Financial Reporting Standard ("IFRS"), and are presented in nominal million Mexican Pesos ("$").
HIGHLIGHTS- 2016 vs. 2015
-- Net sales increased 21.9% in 4Q16 and 12.5% in year 2016.
-- EBITDA margin was 9.0% for 4Q16 and 11.1% for the whole year.
-- Earnings per basic and diluted share totaled $1.63 in 4Q16 and $6.60 for
the year
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated, "For the quarter, we observed a poultry industry growing at normalized rates in both Mexico and the U.S. markets. We observed a good balance between supply and demand, resulting in a price recovery when compared to the same quarter of 2015.
On the other hand, high volatility regarding the exchange rate of the Mexican peso during the quarter affected our raw materials cost and consequently our total cost of sales in peso terms.
Even so, our sales and volume of our main product lines, continued growing in both markets, which led us to an increase of 21.9% in total sales for 4Q16 when compare to 4Q15
For 4Q16, we reached an EBITDA of $1,275.2 or 9.0% margin and earnings per basic and diluted shares were $1.63.
Overall, we consider 2016 a good year for the Company, with an increase of 12.5% in total sales, when compared with 2015, and an EBITDA margin of 11.1%.
We continued investing in the growth of our Company, as our CAPEX reached $2,398.8 million for the year.
In addition, the Company remained in a healthy financial condition with a net cash of $11,603.6 million, which will allow us to continue supporting our growing plans."
EXECUTIVE SUMMARY
The following financial information is expressed in millions of nominal pesos, except for amounts per share or per ADR, with comparative figures for the same period in 2015.
QUARTERLY RESULTS
NET SALES BY GEOGRAPHY
----------------------
In millions of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Net sales 14,206.6 11,650.2 2,556.4 21.9
--------- -------- -------- ------- ----
Net sales in Mexico 10,266.9 8,805.4 1,461.6 16.6
------------------- -------- ------- ------- ----
Net sales in the U.S. 3,939.6 2,844.9 1,094.8 38.5
--------------------- ------- ------- ------- ----
NET SALES BY SEGMENT
--------------------
In millions of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Net sales 14,206.6 11,650.2 2,556.4 21.9
--------- -------- -------- ------- ----
Poultry 12,734.2 10,395.4 2,338.8 22.5
------- -------- -------- ------- ----
Other 1,472.4 1,254.8 217.6 17.3
----- ------- ------- ----- ----
NET VOLUME SOLD BY SEGMENT
--------------------------
In tons Change
------
4Q16 4Q15 Volume %
---- ---- ------ ---
Total sales volume: 550,991 538,139 12,851 2.39
------------------- ------- ------- ------ ----
Poultry 442,246 429,808 12,438 2.89
------- ------- ------- ------ ----
Others 108,744 108,331 413 0.38
------ ------- ------- --- ----
The Company's 4Q16 net sales totaled $14,206.6 million, $2,556.4 million or 21.9% more than $11,650.2 million reported in 4Q15. The increase is a result of more volume sold in our main product lines and price increases in peso terms, mainly in chicken and balance feed.
In 4Q16, sales of our U.S. operations remained strong and represented 27.7% of our total sales; this compares with 24.4% in 4Q15.
GROSS PROFIT
------------
In millions of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Cost of sales 11,885.9 10,015.5 1,870.4 18.7
------------- -------- -------- ------- ----
Gross profit 2,320.7 1,634.7 686.0 42.0
------------ ------- ------- ----- ----
Gross margin 16.3% 14.0% - -
------------ ---- ---- --- ---
In 4Q16 the cost of sales totaled $11,885.9 million, $1,870.4 million or 18.7% higher than $10,015.5 million reported in 4Q15. The increase in cost of sales is mainly attributed to higher volume sold and higher raw material costs in Mexican peso terms due to the depreciation of the Mexican peso.
The gross profit was $2,320.7 million with a gross margin of 16.3% in 4Q16. This is higher than the gross profit of $1,634.7 million and gross margin of 14.0% reported in 4Q15.
Selling, general and administrative expenses ("SG&A")
----------------------------------------------------
In
millions
of
pesos
4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Total
SG&A 1,288.1 1,160.9 127.1 11.0
----- ------- ------- ----- ----
Total SG&A expenses in 4Q16 were $1,288.1 million, $127.1 million or 11.0% more than the $1,160.9 million reported 4Q15. Total SG&A expenses as a percentage of net sales represented 9.1% in 4Q16 compared to 10.0% in 4Q15.
other income (expense), net
---------------------------
In millions of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Other income (expense), net 20.1 18.3 1.7 9.4
--------------------------- ---- ---- --- ---
This item mainly includes the sale of unused assets, as well as hens and other by-products. We record such sales as expenses when the sale price is below the book value of those assets.
In 4Q16, we recorded other income of $20.1 million, compared with other income of $18.3 million reported in 4Q15.
OPERATING INCOME
----------------
In millions of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Operating income 1,052.7 492.1 560.6 113.9
---------------- ------- ----- ----- -----
Operating margin 7.4% 4.2% - -
---------------- --- --- --- ---
Operating income in 4Q16 totaled $1,052.7 million and a 7.4% operating margin; an increase when compared to operating income of $492.1 million and a 4.2% operating margin reported in 4Q15.
The higher operating income was mainly attributed to higher gross profit than in 4Q15.
NET FINANCIAL INCOME
--------------------
In millions of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Net Financial Income 313.5 41.1 272.4 663.0
-------------------- ----- ---- ----- -----
Financial Income 362.1 157.0 205.1 130.6
---------------- ----- ----- ----- -----
Financial Expense 48.6 115.9 (67.3) (58.1)
----------------- ---- ----- ----- -----
In 4Q16, the Company reported net financial income of $313.5 million, compared to income of $41.1 million reported in the same period of 2015. This is mainly due to higher financial income, as we have higher levels of cash, and due to foreign exchange net gain.
TAXES FOR THE PERIOD
--------------------
In millions of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Total Taxes 389.9 160.2 229.7 143.4
----------- ----- ----- ----- -----
Income tax 375.8 298.9 76.9 25.7
---------- ----- ----- ---- ----
Deferred income tax 14.0 (138.7) 152.7 (110.1)
------------------- ---- ------ ----- ------
Total taxes for the 4Q16 were $389.9 million, compared with total taxes of $160.2 million in the same period of 2015.
NET INCOME
----------
In millions of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Net income 976.4 373.0 603.4 161.8
---------- ----- ----- ----- -----
Net margin 6.9% 3.2% - -
---------- --- --- --- ---
Basic and diluted
income per share(1) 1.63 0.63 - -
-------------------- ---- ---- --- ---
Basic and diluted
income per ADR(2) 19.53 7.45 - -
------------------ ----- ---- --- ---
Weighted average
Shares
outstanding(3) 600,000 599,997 - -
---------------- ------- ------- --- ---
(1) In pesos
(2) in pesos, an ADR
equal to twelve
shares
(3) In thousands of
shares
The net income for 4Q16 was $976.4 million, representing a basic and diluted income of $1.63 pesos per share, compared with a lower net income of $373.0 million, which represented $0.63 pesos of basic and diluted income per share in 4Q15. This income represents a net margin of 6.9% and 3.2% for 4Q16 and 4Q15, respectively.
EBITDA
RESULT
-------
In
millions
of pesos 4Q16 4Q15 Change
------
$ $ $ %
--- --- --- ---
Net
controlling
interest
income 976.6 372.2 604.4 162.4
------------ ----- ----- ----- -----
Income
tax
expense
(benefit) 389.9 160.2 229.7 143.4
---------- ----- ----- ----- -----
Result in
associates (0.2) 0.8 (1.0) (126.6)
----------- ---- --- ---- ------
Net
finance
(income)
expense (313.5) (41.1) (272.4) 663.0
--------- ------ ----- ------ -----
Depreciation
and
amortization 222.5 217.7 4.8 2.2
------------ ----- ----- --- ---
EBITDA 1,275.2 709.8 565.4 79.7
------ ------- ----- ----- ----
EBITDA
Margin
(%) 9.0% 6.1% - -
------- --- --- --- ---
Net
sales 14,206.6 11,650.2 2,556.4 21.9
------ -------- -------- ------- ----
EBITDA in 4Q16 reached $976.6 million, representing an EBITDA margin of 9.0%, compared to an EBITDA of $372.2 million in 4Q15, with an EBITDA margin of 6.1%.
ACCUMULATED RESULTS
NET SALES BY GEOGRAPHY
----------------------
In millions of pesos 2016 2015 Change
------
$ $ $ %
--- --- --- ---
Net Sales 52,020.3 46,229.0 5,791.3 12.5
--------- -------- -------- ------- ----
Net sales in Mexico 38,640.1 35,125.8 3,514.3 10.0
------------------- -------- -------- ------- ----
Net sales in the U.S. 13,380.3 11,103.3 2,277.0 20.5
--------------------- -------- -------- ------- ----
NET SALES BY SEGMENT
--------------------
In millions of pesos 2016 2015 Change
------
$ $ $ %
--- --- --- ---
Net Sales 52,020.3 46,229.0 5,791.3 12.5
--------- -------- -------- ------- ----
Poultry 46,794.5 41,789.5 5,005.1 12.0
------- -------- -------- ------- ----
Other 5,225.8 4,439.6 786.2 17.7
----- ------- ------- ----- ----
NET VOLUME SOLD BY SEGMENT
--------------------------
In tons Change
------
2016 2015 Volume %
---- ---- ------ ---
Total sales volume: 2,122,834 2,034,339 88,495 4.35
------------------- --------- --------- ------ ----
Poultry 1,668,633 1,613,435 55,197 3.42
------- --------- --------- ------ ----
Others 454,202 420,904 33,298 7.91
------ ------- ------- ------ ----
In 2016, net sales totaled $52,020.3 million, $5,791.3 million or 12.5% more than $46,229.0 million reported in the same period of 2015. The increase in sales is attributed mainly to higher volumes sold and price increases mainly in chicken, swine and balanced feed.
In 2016, sales of our U.S. operations represented 25.7% of our total sales, compared with 24.0% in 2015.
ACCUMULATED OPERATING RESULTS
-----------------------------
In millions of pesos 2016 2015 Change
------
$ $ $ %
--- --- --- ---
Cost of Sales 42,635.1 36,847.5 5,787.6 15.7
------------- -------- -------- ------- ----
Gross Profit 9,385.2 9,381.5 3.7 0.0
------------ ------- ------- --- ---
Total SG&A 4,814.0 4,323.4 490.6 11.3
---------- ------- ------- ----- ----
Other Income (expense) 261.9 (4.6) 266.5 (5,743.2)
--------------------- ----- ---- ----- --------
Operating Income 4,833.1 5,053.5 (220.4) (4.4)
---------------- ------- ------- ------ ----
Net Financial Income 783.5 446.6 336.9 75.5
-------------------- ----- ----- ----- ----
Income Tax 1,653.6 1,680.6 (26.9) (1.6)
---------- ------- ------- ----- ----
Net Income 3,963.0 3,819.5 143.5 3.8
---------- ------- ------- ----- ---
In 2016, the cost of sales totaled $42,635.1 million, $5,787.6 million or 15.7% higher than $36,847.5 million reported in 2015. This increase is mainly attributed to higher volume sold and higher raw material costs in Mexican peso terms due to the depreciation of the Mexican peso vs the US dollar.
As a result, we reached a gross profit of $9,385.2 million and a gross margin of 18.0% in 2016, compared to $9,381.5 million of gross profit and a margin of 20.3% reached in year 2015.
Total SG&A expenses in 2016 were $4,814.0 million, $490.6 million or 11.3% more than the $4,323.4 million reported in 2015. This increase is mainly attributed to higher volumes sold. Total SG&A expenses as a percentage of sales represented 9.3% in 2016 compared to 9.4% in 2015.
In 2016, we had other income of $261.9 million, compared with other expenses of $4.6 million reported in 2015.
The operating income in 2016 was $4,833.1 million, which represents an operating margin of 9.3%, a 4.4% decrease when compared with the operating income of $5,053.5 million and operating margin of 10.9% in 2015.
The net financial income in 2016 was $783.5 million, an increase when compared to the net financial income of $446.6 million in 2015.
Total taxes were $1,653.6 million as of December 31, 2016. These taxes include $1,370.1 million of income tax and $283.5 million of deferred income taxes. This figure compares to total taxes of $1,680.6 million, which includes income taxes of $1,488.5 and $192.1 million of deferred income taxes in 2015.
All of the above resulted in a net income of $3,963.0 million or 7.6% of net margin for 2016, which represents $6.60 pesos of earnings per share. In 2015, the net income totaled $3,819.5 million, 8.3% of net margin and $6.36 pesos of net income per share.
EBITDA RESULT
-------------
In millions of
pesos 2016 2015 Change
------
$ $ $ %
--- --- --- ---
Net controlling
interest profit 3,958.0 3,812.8 145.2 3.8
---------------- ------- ------- ----- ---
Income tax expense
(benefit) 1,653.6 1,680.6 (26.9) (1.6)
------------------ ------- ------- ----- ----
Result in
associates 5.0 6.7 (1.7) (25.6)
----------- --- --- ---- -----
Net finance
(income) expense (783.5) (446.6) (336.9) 75.5
----------------- ------ ------ ------ ----
Depreciation and
amortization 925.7 820.3 105.4 12.8
---------------- ----- ----- ----- ----
EBITDA 5,758.9 5,873.9 (115.0) (2.0)
------ ------- ------- ------ ----
EBITDA Margin (%) 11.1% 12.7% - -
---------------- ---- ---- --- ---
Net sales 52,020.3 46,229.0 5,791.3 12.5
---------- -------- -------- ------- ----
EBITDA in 2016 reached $5,758.9 million, representing an EBITDA margin of 11.1%, compared to an EBITDA of $5,873.9 million in 2015, with an EBITDA margin of 12.7%.
BALANCE
SHEET DATA
-----------
In millions
of pesos Dec. 31, 2016 Dec. 31, 2015 Change
------
$ $ $ %
--- --- --- ---
TOTAL
ASSETS 45,101.5 40,446.6 4,654.9 11.5
------- -------- -------- ------- ----
Cash and
cash
equivalents 15,651.5 15,288.9 362.6 2.4
------------ -------- -------- ----- ---
Accounts
receivable 3,653.2 2,728.0 925.3 33.9
----------- ------- ------- ----- ----
TOTAL
LIABILITIES 13,383.9 12,667.2 716.7 5.7
------------ -------- -------- ----- ---
Accounts
payable 3,836.4 3,966.0 (129.7) (3.3)
-------- ------- ------- ------ ----
Short-term
debt 3,097.5 1,622.9 1,474.7 90.9
---------- ------- ------- ------- ----
Long-term
debt 950.4 2,504.2 (1,553.7) (62.0)
--------- ----- ------- -------- -----
TOTAL
STOCKHOLDERS'
EQUITY 31,717.6 27,779.4 3,938.2 14.2
-------------- -------- -------- ------- ----
Capital
stock 1,174.4 1,174.4 - -
------- ------- ------- --- ---
Cash and equivalents as of December 31, 2016 totaled $15,651.5, an increase of $362.6 million than the level we had on December 31, 2015.
Total debt as of December 31, 2016 was $4,047.9 million, compared to $4,127.0 million reported as of December 31, 2015.
Net cash as of December 31, 2016 was $11,603.6 million, compared with a net cash of $11,161.9 million as of December 31, 2015.
CAPITAL EXPENDITURES
--------------------
In millions of pesos 2016 2015 Change
------
$ $ $ %
--- --- --- ---
Capital Expenditures 2,398.8 1,824.5 574.3 31.5
-------------------- ------- ------- ----- ----
Total CAPEX for 2016 was $2,398.8 million and $1,824.5 million in 2015; mainly allocated toward organic growth and productivity projects across all our facilities.
STOCK INFORMATION
-----------------
As of December 31, 2016
-----------------------
Total Shares 600,000,000
------------ -----------
Total free float 26.75%
---------------- -----
Market cap (millions of pesos) $50,850
---------------------- -------
SHARE PRICE in 2016
---
Mexican Stock The New York Stock
Exchange Exchange
-------------- -------------------
Ticker Symbol:
Bachoco Ticker Symbol: IBA
In nominal pesos
per Share In U.S. Dollar per ADR
Month High Low Close High Low Close
----- ---- --- ----- ---- --- -----
December 85.65 78.99 84.75 49.69 45.76 49.02
November 82.70 77.88 80.60 52.56 45.92 46.90
October 84.26 81.26 83.70 53.23 50.77 52.90
September 84.24 76.92 81.04 54.14 47.29 50.16
August 84.65 80.21 83.29 55.65 51.59 53.25
July 82.86 77.65 81.33 53.82 50.36 52.02
June 76.20 73.61 75.28 50.05 46.04 48.98
May 77.31 70.42 75.85 51.46 46.60 49.55
April 76.78 71.63 72.30 52.68 49.70 50.32
March 77.40 73.05 73.91 53.52 49.11 51.28
February 74.00 65.45 72.98 49.11 43.15 48.28
January 70.40 62.51 65.45 48.67 41.71 43.32
------- ----- ----- ----- ----- ----- -----
Source:
yahoo
finances
ANALYST COVERAGE
----------------
Institution Analyst name E-mail
----------- ------------ ------
ACTINVER José Antonio Cebeira jcebeira@actinver.com.mx
-------- -------------------- ------------------------
BBVA BANCOMER Miguel Ulloa miguel.ulloa@bbva.com
------------- ------------ ---------------------
GBM Miguel Mayorga mmayorga@gbm.com.mx
--- -------------- -------------------
INTERACCIONES CASA DE BOLSA Martin Lara mlarap@interacciones.com
--------------------------- ----------- ------------------------
JPMORGAN Pedro Leduc pedro.a.leduc@jpmorgan.com
-------- ----------- --------------------------
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $20.64 per USD $1.00, which corresponds to the rate at the close of December 31, 2016, according to Mexico's National Bank.
-- Consolidated Statement of Financial Position
-- Consolidated Statement of Income
-- Consolidated Statement of Cash Flows
-- Derivatives Position Report
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
-Unaudited-
In U.S. Dollar December 31, December 31,
------------ ------------
In million pesos 2016 2016 2015*
---------------- ---- ---- ----
TOTAL ASSETS $2,185.2 45,101.5 40,446.6
Total current assets 1,305.5 26,945.8 24,722.0
------- -------- --------
Cash and cash equivalents 758.3 15,651.5 15,288.9
Total accounts receivable 177.0 3,653.2 2,728.0
Inventories 287.4 5,931.9 5,056.1
Other current assets 82.8 1,709.2 1,649.1
Total non current assets 879.6 18,155.7 15,724.6
----- -------- --------
Net property, plant and
equipment 727.8 15,020.8 13,188.1
Other non current Assets 151.9 3,134.9 2,536.5
TOTAL LIABILITIES $648.4 13,383.9 12,667.2
Total current liabilities 403.0 8,318.3 6,633.8
----- ------- -------
Notes payable to banks 150.1 3,097.5 1,622.9
Accounts payable 185.9 3,836.4 3,966.0
Other taxes payable and
other accruals 67.1 1,384.4 1,044.9
Total long-term liabilities 245.4 5,065.6 6,033.4
----- ------- -------
Long-term debt 46.0 950.4 2,504.2
Other non current
liabilities 9.3 192.7 160.2
Deferred income taxes 190.0 3,922.5 3,369.0
TOTAL STOCKHOLDERS' EQUITY $1,536.7 31,717.6 27,779.4
Capital stock 56.9 1,174.4 1,174.4
Commission in shares issued 20.1 414.4 414.0
Repurchased shares - - -
Retained earnings 1,390.7 28,704.9 25,527.2
Others accounts 66.3 1,368.5 613.2
Non controlling interest 2.7 55.4 50.4
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,185.2 45,101.5 40,446.6
*Audited
CONSOLIDATED STATEMENT OF INCOME
Fourth Quarter Results, ended December 31:
-Unaudited-
U.S. Dollar
In millions
pesos 2016 2016 2015*
----------- ---- ---- ----
Net sales $688.3 14,206.6 11,650.2
Cost of sales 575.9 11,885.9 10,015.5
----- -------- --------
Gross profit 112.4 2,320.7 1,634.7
SG&A 62.4 1,288.1 1,160.9
Other income
(expenses), net 1.0 20.1 18.3
--- ---- ----
Operating income 51.0 1,052.7 492.1
Net finance
income 15.2 313.5 41.1
Income tax 18.9 389.9 160.2
---- ----- -----
Net Income $47.3 976.4 373.0
Non-controlling
interest - 0.01 -0.2 0.8
Net controlling
interest profit 47.3 976.6 372.2
Basic and
diluted
earnings per
share 0.08 1.63 0.63
Basic and
diluted
earnings per
ADR 0.95 19.53 7.45
Weighted average
Shares
outstanding(1) 600,000 600,000 599,997
EBITDA Result $61.8 1,275.2 709.8
Gross margin 16.3% 16.3% 14.0%
Operating margin 7.4% 7.4% 4.2%
Net margin 6.9% 6.9% 3.2%
EBITDA margin 9.0% 9.0% 6.1%
------------- --- --- ---
(1)In thousands
* Audited
CONSOLIDATED STATEMENT OF INCOME
Annual Results
-Unaudited-
U.S. Dollar
In millions pesos 2016 2016 2015*
----------------- ---- ---- ----
Net sales $2,520.4 52,020.3 46,229.0
Cost of sales 2,065.7 42,635.1 36,847.5
------- -------- --------
Gross profit 454.7 9,385.2 9,381.5
Selling, general and
administrative expenses 233.2 4,814.0 4,323.4
Other income (expenses),
net 12.7 261.9 (4.6)
---- ----- ----
Operating income 234.2 4,833.1 5,053.5
Net finance income 38.0 783.5 446.6
Income tax 80.1 1,653.6 1,680.6
---- ------- -------
Net income $310.1 3,963.0 3,819.5
Non-controlling interest 0.2 5.0 6.7
Net controlling interest
profit 192.2 3,958.0 3,812.8
Basic and diluted earnings
per share 0.32 6.60 6.36
Basic and diluted earnings
per ADR 3.84 79.2 76.30
Weighted average Shares
outstanding(1) 599,973 599,973 599,631
EBITDA Result $279.0 5,758.9 5,873.9
Gross margin 18.0% 18.0% 20.3%
Operating margin 9.3% 9.3% 10.9%
Net margin 7.6% 7.6% 8.3%
EBITDA margin 11.1% 11.1% 12.7%
(1)In thousands
*Audited
CONSOLIDATED STATEMENT OF CASH FLOWS
In million of pesos
-Unaudited-
U.S. Dollar December 31,
------------
2016 2016 2015
---- ---- ----
NET MAJORITY INCOME BEFORE INCOME TAX $272.1 5,616.6 5,500.1
------ ------- -------
ITEMS THAT DO NOT REQUIRE CASH: - - -
ITEMS RELATING TO INVESTING ACTIVITIES: 13.2 272.3 516.9
---- ----- -----
Depreciation and others 44.9 925.7 769.3
Income (loss) on sale of plant and equipment (7.6) (157.9) 90.3
Other Items (24.0) (495.5) (342.6)
NET CASH GENERATED FROM NET INCOME BEFORE TAXES 285.3 5,889.0 6,017.0
----- ------- -------
CASH GENERATED OR USED IN THE OPERATION: (145.7) (3,007.6) (1,554.0)
Decrease (increase) in accounts receivable (73.5) (1,517.5) (64.7)
Decrease (increase) in inventories (27.3) (562.9) (448.4)
Increase (decrease) in accounts payable (2.7) (56.6) 623.0
Increase (decrease) in other liabilities (42.2) (870.6) (1,663.8)
NET CASH FLOW FROM OPERATING ACTIVITIES 139.6 2,881.4 4,463.0
----- ------- -------
NET CASH FLOW FROM INVESTING ACTIVITIES (84.9) (1,751.7) (2,126.6)
----- -------- --------
Acquisition of property, plant and equipment (129.7) (2,677.5) (1,909.8)
Proceeds from sales of property plant and equipment 13.5 278.3 71.4
Other Items 31.4 647.5 (288.2)
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN 54.7 1,129.7 2,336.4
FINANCING ACTIVITIES
Net cash provided by financing activities: (37.2) (767.1) 990.8
----- ------ -----
Proceeds from loans 101.8 2,100.5 3,903.2
Principal payments on loans (118.9) (2,453.6) (2,231.6)
Dividends paid (37.8) (780.0) (899.2)
Other items 17.7 366.0 218.4
Net increase (decrease) in cash and equivalents 17.6 362.6 3,327.2
Cash and investments at the beginning of year $740.7 15,288.9 11,961.6
------ -------- --------
CASH AND INVESTMENTS AT END OF PERIOD $758.3 15,651.5 15,288.9
DERIVATIVES POSITION REPORT
Fourth Quarter 2016
Thousands of Mexican Pesos, as of december 31, 2016 ANEXO 1
TYPE OF FINANCIAL OBJECTIVE NOTIONAL VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTS DUE GUARANTIES
INSTRUMENT BY YEAR REQUIRED
---------- --- ------- --------
4Q-2016 3Q-2016 4Q-2016 3Q-2016
------- ------- ------- -------
Forward Vanilla Hedge $382,955 $20.64 $19.38 $3,464 $6,424 in 2017 The deals consider the possibility
of margin calls but not another
kind of guarantee
--------------- ----- -------- ------ ------ ------ ------ ------- ----------------------------------
Futures for corn and soybean meal Hedge $6,535 CORN CORN -$ 19 $599 in 2017
--------------------------------- ----- ------ ---------- ---- -------
In USD per Bushel In USD per Bushel
month price month price
Dec-16 $3.37
Jul-17 $3.60
Sep-17 $3.67
Dec-17 $3.77
SOYBEAN MEAL SOYBEAN MEAL
In USD per ton In USD per ton
month price month price
Dic-2016 $299.6
March-17 $316.6
Options of Corn Hedge $24,061 CORN CORN -$ 47 $ - 2017
--------------- ----- ------- ---------- -------------- ----
In USD per Bushel In USD per Bushel
month price month price
March-17 $3.5150
May-17 $3.550
Dec-16 $3.368
Options of soybean meal Hedge $28,972 SOYBEAN MEAL SOYBEAN MEAL $216 -$ 242 in 2017
----------------------- ----- ------- ---- ----------- -------
In USD per ton In USD per ton
month price month price
Mar-17 $316.6
May-17 $319.4
Dec-2016 $299.6
-The total financial instruments do not exceed 5% of total assets as of December 31, 2016.
-The notional value represents the net position as of December 31, 2016 at the exchange rate of Ps. 20.64 per one dolar.
-A negative value means an unfavorable effect for the Company.
Fourth Quarter 2016
Thousands of Mexican Pesos, as of december 31, 2016 PROBABLE SCENARIO
TYPE OF FINANCIAL INSTRUMENT REASONABLE VALUE VALUE OF THE RELATED COMMODITY EFFECT ON THE INCOME STATEMENT EFFECT ON THE CASH FLOW(3)
---------------------------- ---------------- ------------------------------ ------------------------------ -------------------------
Reference Value
---------------
-2.5% 2.5% 5.0% -2.5% 2.5% 5.0%
---- --- --- ---- --- ---
Forwards Vanilla $3,464 $20.12 $21.16 $21.67 Direct -$ 3,962 $10,526 $17,253
---------------- ------ ------ ------ ------ ------ ---------- ------- -------
-5% 5% 10% -5% 5% 10%
Futures of Corn: (2) -$ 19 $3.339 $3.691 $3.867 The effect will materialize as the
inventory is consumed -$ 345 $308 $635
---------------------------- ---------------------------------- ----------- ---- ----
Futures of Soybean Meal: (2) $300.8 $332.4 $348.3
------ ------ ------
Options for Corn -$ 47 $3.339 $3.691 $3.867 -$ 1,250 $1,156 $2,359
---------------- ---------------------------- ------ ------ ------ ---------- ------ ------
Options of Soybean Meal $216 $300.8 $332.4 $348.3 -$ 1,233 $1,664 $3,113
----------------------- ---- ------ ------ ------ ---------- ------ ------
(1)The reference value is the exchange rate of Ps. $20.64 per USD as of December 31, 2016.
(2)The reference values are; the future of corn for March 2017 2016, $3.5150 USD/bushel and the future of soybeanmeal for March 2017, $316.6 USD/ton.
All the evaluations are performed according with the corresponding future, here only the first month futures are shown.
(3)The Company has credit lines with the majority of its counterparts, so that the effect in cash flow is lower than the amount shown.
-A negative value means an unfavorable effect for the Company.
Fourth Quarter 2016
Thousands of Mexican Pesos, as of december 31, 2016 STRESS SCENARIO
TYPE OF FINANCIAL INSTRUMENT REASONABLE VALUE VALUE OF THE RELATED COMMODITY EFFECT ON THE INCOME STATEMENT EFFECT ON THE CASH FLOW
---------------------------- ---------------- ------------------------------ ------------------------------ -----------------------
Reference Value
---------------
-50% -25% 25% 50% -50% -25% 25% 50%
--- --- --- --- --- --- --- ---
Forward Vanilla $3,464 $10.32 $15.48 $25.80 $30.96 Direct -$286,117 -$93,063 $61,380 $99,990
--------------- ------ ------ ------ ------ ------ ------ --------- -------- ------- -------
CONFERENCE CALL INFORMATION
The Company will host its fourth quarter 2016 earnings call, on Friday, January 27th, 2017. The earnings call will take place at 9:00 am Central Time (10:00 am ET).
To participate in the earnings call, please dial:
Toll free in the U.S.: 1 (888) 771-4371
Toll free in Mexico: 001 866 779 0965
A current list of available local and international free phone telephone numbers: http://web.meetme.net/r.aspx?p=12&a=UUhaSjrsePwjHr
Confirmation Number: 44204501
Visit the following link to access the webcast: http://event.onlineseminarsolutions.com/wcc/r/1353113-1/D84C7B0AA34DC0B1FBB05A72993B26BA
COMPANY DESCRIPTION
Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally. The Company was founded in 1952, and became a public company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine, and turkey and beef value-added products. Bachoco owns and manages more than a thousand facilities, organized in nine production complexes and 64 distribution centers in Mexico, and a production complex in the United States. Currently the Company employs more than 25,000 people.
The Company is rated AAA (MEX), the highest rating awarded by Fitch Mexico, S.A. de C.V., and HR AAA which signals that the Company and the offering both have the highest credit quality by HR Ratings de Mexico S.A. de C.V.
DISCLAIMER
The document contains certain information that could be considered forward looking statements concerning anticipated future events and performance of the Company. The statements reflect management's current beliefs based on information currently available and are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Information Form, which could cause our actual results to differ materially from the forward-looking statements contained in this document. Those risks and uncertainties include risks associated with ownership in the poultry industry, competition for investments within the poultry industry, shareholder liability, governmental regulation, and environmental matters. As a result, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Industrias Bachoco, S.A.B. de C.V., undertakes no obligation to publicly update or revise any forward-looking statement.
IR contact information:
Maria Guadalupe Jaquez
maria.jaquez@bachoco.net
Kathy Chaurand
kathy.chaurand@bachoco.net
T. +52(461)618 3555
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/industrias-bachoco-announces-fourth-quarter-and-full-year-2016-result-300397038.html
SOURCE Industrias Bachoco, S.A.B. de C.V.
