INDUSTRIAS BACHOCO, S.A.B. DE C.V. CELAYA, Mexico, Feb. 4, 2016 /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 ("4Q15") and 2015 year ("2015") results ending December 31, 2015. All figures have been prepared in accordance with International Financial Reporting Standard ("IFRS"), and are presented in nominal million Mexican Pesos ("$").
HIGHLIGHTS- 2015 vs. 2014
-- Net sales increased 6.9% in 4Q15 and 10.7% for the whole year 2015.
-- EBITDA margin was 6.4% for 4Q15 and 12.8% for year 2015.
-- Earnings per basic and diluted share totaled $0.75 for 4Q15 and $6.49
for 2015.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated, "Conditions prevailing in the poultry industry in the third quarter continued throughout the fourth quarter of 2015. We observed an important increase in supply in Mexico, creating an over-supply condition, which put pressure on prices. In the US markets, we also observed lower prices, mainly in leg quarters, as compared with the equivalent quarter of 2014. Even though we observed a stronger supply in our main product lines, we also saw a good level of demand in the Mexican markets during the fourth quarter enabling us to sell the largest volume for a quarter.
For the quarter, our total sales increased and the volume in all our main product lines continued growing in both markets. Overall, we increased our total sales by 6.9%.
On the other side, volatility in the Mexican peso had an effect in our cost of sales in Mexico during the quarter, as a result, our operating margins were lower when compared with the fourth quarter of the previous year.
Our US operation continues delivering positive results while recording historical volume sold of chicken for 2015.
For the whole year 2015, we reach what we consider satisfactory results, with an increase of 10.7% in total sales and an EBITDA margin of 12.8%. The Company remained in a healthy financial condition with a net cash of $11,161.9 million, as the cash and equivalents has increased more than 20.0% since the beginning of the year."
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 2014.
QUARTERLY RESULTS
NET SALES BY GEOGRAPHY
----------------------
In millions of pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Net sales 11,650.2 10,899.3 750.9 6.9
--------- -------- -------- ----- ---
Net sales in Mexico 8,805.4 8,661.4 144.0 1.7
------------------- ------- ------- ----- ---
Net sales in the U.S. 2,844.9 2,238.0 606.9 27.1
--------------------- ------- ------- ----- ----
NET SALES BY SEGMENT
--------------------
In millions of pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Net sales 11,650.2 10,899.3 750.9 6.9
--------- -------- -------- ----- ---
Poultry 10,395.4 9,796.6 598.8 6.1
------- -------- ------- ----- ---
Other 1,254.8 1,102.7 152.0 13.8
----- ------- ------- ----- ----
NET VOLUME SOLD BY SEGMENT
--------------------------
In tons Change
------
4Q15 4Q14 Volume %
---- ---- ------ ---
Total sales volume: 538,139 495,923 42,216 8.5
------------------- ------- ------- ------ ---
Poultry 429,808 404,565 25,243 6.2
------- ------- ------- ------ ---
Others 108,331 91,358 16,973 18.5
------ ------- ------ ------ ----
The Company's 4Q15 net sales totaled $11,650.2 million, $750.9 million or 6.9% more than $10,899.3 million reported in 4Q14. The increase is a result of more volume sold in our main product lines during this quarter; partially compensated by weaker poultry prices than the same quarter of 2014.
In 4Q15, sales of our U.S. operations remained strong and represented 24.7% of our total sales; this compares with 20.5% in 4Q14.
GROSS PROFIT
------------
In millions of pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Cost of sales 9,989.0 8,376.5 1,612.5 19.3
------------- ------- ------- ------- ----
Gross profit 1,661.2 2,522.9 (861.7) (34.2)
------------ ------- ------- ------ -----
Gross margin 14.3% 23.1% - -
------------ ---- ---- --- ---
In 4Q15 the cost of sales totaled $9,989.0 million, $1,612.5 million or 19.3% higher than $8,376.5 million reported in 4Q14; the increase in cost of sales is mainly attributed to more volume sold and depreciation of the Mexican peso.
The gross profit was $1,661.2 million with a gross margin of 14.3% in 4Q15; this profit is lower than the gross profit of $2,522.9 million and gross margin of 23.1% reported in 4Q14. This is mainly due to weaker prices in our poultry products and an increase in our unit cost of sales.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ("SG&A")
----------------------------------------------------
In millions of pesos
4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Total
SG&A 1,137.9 1,038.0 99.9 9.6
----- ------- ------- ---- ---
Total SG&A expenses in 4Q15 were $1,137.9 million, $99.9 million or 9.6% more than the $1,038.0 million reported 4Q14. This increase is mainly attributed to higher volume.
Total SG&A expenses as a percentage of net sales represented 9.8% in 4Q15 compared to 9.5% in 4Q14.
OTHER INCOME (EXPENSE), NET
---------------------------
In millions of pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Other income (expense), net 2.8 (59.5) 62.3 (104.8)
--------------------------- --- ----- ---- ------
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 4Q15, we recorded other income of $2.8 million, compared with other expenses of $59.5 million reported in 4Q14.
OPERATING INCOME
----------------
In millions of pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Operating income 526.1 1,425.4 (899.3) (63.1)
---------------- ----- ------- ------ -----
Operating margin 4.5% 13.1% - -
---------------- --- ---- --- ---
Operating income in 4Q15 totaled $526.1 million; an operating margin of 4.5%, a decrease when compared to operating income of $1,425.4 million and a 13.1% operating margin reported in 4Q14.
The lower operating income was mainly attributed to lower gross profit than in 4Q14.
NET FINANCIAL INCOME
--------------------
In millions of pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Net Financial Income 113.1 68.2 44.9 65.9
-------------------- ----- ---- ---- ----
Financial Income 159.0 99.9 59.1 59.2
---------------- ----- ---- ---- ----
Financial Expense 45.9 31.7 14.2 44.9
----------------- ---- ---- ---- ----
In 4Q15, the Company reported net financial income of $113.1 million, compared to income of $68.2 million reported in the same period of 2014. This is mainly due to higher financial income as we have higher levels of cash.
TAXES FOR THE PERIOD
--------------------
In millions of pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Total Taxes 187.8 426.4 (238.7) (56.0)
----------- ----- ----- ------ -----
Income tax 346.1 513.9 (167.8) (32.7)
---------- ----- ----- ------ -----
Deferred income tax (158.31) (87.45) - 70.9 81.0
------------------- ------- ------ ------ ----
Total taxes for the 4Q15 were $187.8 million, compared with total taxes of $426.4 million in the same period of 2014.
NET INCOME
----------
In millions
of pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Net income 451.5 1,067.2 (615.7) (57.7)
---------- ----- ------- ------ -----
Net margin 3.9% 9.8% - -
---------- --- --- --- ---
Basic and
diluted
income per
share(1) 0.75 1.77 - n/a
----------- ---- ---- --- ---
Basic and
diluted
income per
ADR(2) 9.01 21.28 - n/a
----------- ---- ----- --- ---
Weighted
average
Shares
outstanding(3) 599,994 600,000 - -
--------------- ------- ------- --- ---
(1) In pesos
(2) in pesos, an ADR equal to twelve shares
(3) In thousands of shares
The net income for 4Q15 was $451.5 million, representing a basic and diluted income of $0.75 pesos per share, compared with a higher net income of $1,067.2 million, which represented $1.77 pesos of basic and diluted income per share in 4Q14. This income represents a net margin of 3.9% and 9.8% for 4Q15 and 4Q14, respectively.
EBITDA AND ADJUSTED EBITDA
--------------------------
In
millions
of
pesos 4Q15 4Q14 Change
------
$ $ $ %
--- --- --- ---
Net
controlling
interest
income 450.7 1,064.1 (613.4) (57.6)
------------ ----- ------- ------ -----
Income
tax
expense
(benefit) 187.8 426.4 (238.7) n/a
--------- ----- ----- ------ ---
Result
in
associates 0.8 3.1 (2.3) n/a
---------- --- --- ---- ---
Net
finance
(income)
expense (113.1) (68.2) (44.9) n/a
--------- ------ ----- ----- ---
Depreciation
and
amortization 217.7 204.6 13.0 6.4
------------ ----- ----- ---- ---
EBITDA 743.8 1,630.0 (886.2) (54.4)
------ ----- ------- ------ -----
EBITDA
Margin
(%) 6.4 15.0 (8.6) (57.3)
------ --- ---- ---- -----
Other
expense
(income)
net (2.8) 59.5 (62.3) (104.8)
-------- ---- ---- ----- ------
Adjusted
EBITDA 741.0 1,689.5 (948.5) (56.1)
-------- ----- ------- ------ -----
Adjusted
EBITDA
Margin 6.4% 15.5% - -
-------- --- ---- --- ---
Net
sales 11,650.2 10,899.3 750.9 6.9
------ -------- -------- ----- ---
EBITDA in 4Q15 reached $743.8 million, representing an EBITDA margin of 6.4%, compared to EBITDA of $1,630.0 million in 4Q14, with an EBITDA margin of 15.0%.
The adjusted EBITDA in 4Q15 reached $741.0 million, representing an adjusted EBITDA margin of 6.4%, compared to adjusted EBITDA of $1,689.5 million in 4Q14, with an adjusted EBITDA margin of 15.5%.
ACCUMULATED RESULTS
NET SALES BY GEOGRAPHY
----------------------
In millions of pesos 2015 2014 Change
------
$ $ $ %
--- --- --- ---
Net Sales 46,229.0 41,779.1 4,450.0 10.7
--------- -------- -------- ------- ----
Net sales in Mexico 35,125.8 33,340.6 1,785.1 5.4
------------------- -------- -------- ------- ---
Net sales in the U.S. 11,103.3 8,438.5 2,664.8 31.6
--------------------- -------- ------- ------- ----
NET SALES BY SEGMENT
--------------------
In millions of pesos 2015 2014 Change
------
$ $ $ %
--- --- --- ---
Net Sales 46,229.0 41,779.1 4,450.0 10.7
--------- -------- -------- ------- ----
Poultry 41,765.0 37,994.7 3,770.3 9.9
------- -------- -------- ------- ---
Other 4,464.1 3,784.4 679.6 18.0
----- ------- ------- ----- ----
NET VOLUME SOLD BY SEGMENT
--------------------------
In tons Change
------
2015 2014 Volume %
---- ---- ------ ---
Total sales volume: 2,034,339 1,841,382 192,957 10.5
------------------- --------- --------- ------- ----
Poultry 1,613,435 1,495,023 118,412 7.9
------- --------- --------- ------- ---
Others 420,904 346,359 74,545 21.5
------ ------- ------- ------ ----
In 2015, net sales totaled $46,229.0 million, $4,450.0 million or 10.7% more than $41,779.1 million reported in the same period of 2014. The increase in sales is attributed mainly to higher volumes sold.
In 2015, sales of our U.S. operations represented 24.1% of our total sales, compared with 20.2% in 2014.
ACCUMULATED OPERATING RESULTS
-----------------------------
In millions of pesos 2015 2014 Change
------
$ $ $ %
--- --- --- ---
Cost of Sales 36,821.0 32,495.0 4,326.0 13.3
------------- -------- -------- ------- ----
Gross Profit 9,408.1 9,284.1 123.9 1.3
------------ ------- ------- ----- ---
Total SG&A 4,279.5 3,781.3 498.2 13.2
---------- ------- ------- ----- ----
Other Income (expense) (41.0) (160.9) 119.9 (74.5)
--------------------- ----- ------ ----- -----
Operating Income 5,087.6 5,341.9 (254.3) (4.8)
---------------- ------- ------- ------ ----
Net Financial Income 518.5 246.9 271.6 110.0
-------------------- ----- ----- ----- -----
Income Tax 1,708.1 1,656.1 52.0 3.1
---------- ------- ------- ---- ---
Net Income 3,898.0 3,932.7 (34.7) (0.9)
---------- ------- ------- ----- ----
In 2015, the cost of sales totaled $36,821.0 million, $4,326.0 million or 13.3% higher than $32,495.0 million reported in 2014. The increase in the cost of sales is mainly attributable to higher volumes sold and higher unit costs experienced at the end of the year.
As a result, we reached a gross profit of $9,408.1 million and a gross margin of 20.4% in 2015, a higher result than $9,284.1 million of gross profit and a margin of 22.2% reached in year 2014.
Total SG&A expenses in 2015 were $4,279.5 million, $498.2 million or 13.2% more than the $3,781.3 million reported in 2014. Total SG&A expenses as a percentage of sales represented 9.3% in 2015 compared to 9.1% in 2014. This increase is mainly attributed to higher volumes sold and additional expenses incurred in the implementation of projects to further improve the services we provide to our markets.
In 2015, we had other expenses of $41.0 million, compared with other expenses of $160.9 million reported in 2014.
The operating income in 2015 was $5,087.6 million, which represents an operating margin of 11.0%; a 4.8% decrease than the operating income of $5,341.9 million and operating margin of 12.8% in 2014.
The net financial income in 2015 was $518.5 million, higher when compared to the net financial income of $246.9 million in 2014.
Total taxes were $1,708.1 million as of December 31, 2015. These taxes include $1,535.7 million of income tax and $172.4 million of deferred income taxes. This figure compares to total taxes of $1,656.1 million, which includes income taxes of $1,391.3 and $264.8 million of deferred income taxes in 2014.
All of the above results in a net income of $3,898.0 million or 8.4% of net margin for 2015, which represents $6.49 pesos of earnings per share. In 2014, the net income totaled $3,932.7 million, 9.4% of net margin and $6.55 pesos of net income per share.
EBITDA AND ADJUSTED EBITDA
--------------------------
In millions of
pesos 2015 2014 Change
------
$ $ $ %
--- --- --- ---
Net controlling
interest profit 3,891.3 3,926.9 (35.6) (0.9)
---------------- ------- ------- ----- ----
Income tax expense
(benefit) 1,708.1 1,656.1 52.0 n/a
------------------ ------- ------- ---- ---
Result in
associates 6.7 5.7 0.9 n/a
----------- --- --- --- ---
Net finance
(income) expense (518.5) (246.9) (271.6) n/a
----------------- ------ ------ ------ ---
Depreciation and
amortization 820.3 805.7 14.7 1.8
---------------- ----- ----- ---- ---
EBITDA 5,907.9 6,147.5 (239.6) (3.9)
------ ------- ------- ------ ----
EBITDA Margin (%) 12.8 14.7 (1.93) (13.1)
---------------- ---- ---- ----- -----
Other expense
(income) net 41.0 160.9 (119.9) (74.5)
------------- ---- ----- ------ -----
Adjusted EBITDA 5,948.9 6,308.4 (359.6) (5.7)
--------------- ------- ------- ------ ----
Adjusted EBITDA
Margin 12.87% 15.10% - -
--------------- ----- ----- --- ---
Net sales 46,229.0 41,779.1 4,450.0 10.7
---------- -------- -------- ------- ----
EBITDA in 2015 reached $5,907.9 million, representing an EBITDA margin of 12.8%, compared to EBITDA of $6,147.5 million in 2014, with an EBITDA margin of 14.7%.
The adjusted EBITDA in 2015 reached $5,948.9 million, representing an adjusted EBITDA margin of 12.87%, compared to an adjusted EBITDA of $6,308.4 million in 2014, with an adjusted EBITDA margin of 15.10%.
BALANCE SHEET
BALANCE SHEET DATA
------------------
In millions of pesos Dec. 31, 2015 Dec. 31, 2014 Change
------
$ $ $ %
--- --- --- ---
TOTAL ASSETS 40,527.1 34,793.8 5,733.4 16.5
------------ -------- -------- ------- ----
Cash and cash equivalents 15,288.9 11,961.6 3,327.2 27.8
------------------------- -------- -------- ------- ----
Accounts receivable 2,776.1 2,976.5 - 200.5 - 6.7
------------------- ------- ------- ------- -----
TOTAL LIABILITIES 12,650.7 10,431.7 2,219.0 21.3
----------------- -------- -------- ------- ----
Accounts payable 3,966.0 3,384.3 581.7 17.2
---------------- ------- ------- ----- ----
Short-term debt 1,631.9 798.0 833.9 104.5
--------------- ------- ----- ----- -----
Long-term debt 2,495.1 1,652.5 842.7 51.0
-------------- ------- ------- ----- ----
TOTAL STOCKHOLDERS' EQUITY 27,876.4 24,362.1 3,514.3 14.4
-------------------------- -------- -------- ------- ----
Capital stock 1,174.4 1,174.4 - 0.0 - 0.0
------------- ------- ------- ----- -----
Cash and equivalents as of December 31, 2015 totaled $15,288.9; higher by $3,327.2 million than the level we had on December 31, 2014.
Total debt as of December 31, 2015 was $4,127.0 million, compared to $2,450.5 million reported as of December 31, 2014.
Net cash as of December 31, 2015 was $11,161.9 million, compared with a net cash of $9,511.2 million as of December 31, 2014.
CAPITAL EXPENDITURES
--------------------
In millions of pesos 2015 2014 Change
------
$ $ $ %
--- --- --- ---
Capital Expenditures 1,662.8 1,288.5 374.3 29.0
-------------------- ------- ------- ----- ----
Total CAPEX for 2015 was $1,662.8 million and $1,288.5 million in 2014; mainly allocated toward organic growth and productivity projects across all of our facilities.
STOCK INFORMATION
-----------------
As of December 31, 2015
-----------------------
Total Shares 600,000,000
------------ -----------
Total free float 26.75%
---------------- -----
Market cap (millions
of pesos) $42,552
-------------------- -------
SHARE PRICE IN 2015
-------------------
Mexican Stock Exchange The New York Stock
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 71.03 65.95 70.92 50.99 45.64 49.23
November 78.97 69.37 69.37 57.22 49.87 50.18
October 85.80 75.18 75.18 61.13 54.72 54.72
September 89.73 80.27 85.79 63.49 56.77 61.10
August 79.42 72.72 79.42 57.79 50.51 56.83
July 78.03 69.23 77.00 58.69 52.72 57.09
June 73.07 70.50 70.50 56.36 54.11 54.11
May 73.70 68.32 73.70 58.14 54.34 57.37
April 69.69 64.38 68.32 54.40 50.87 53.79
March 67.40 63.33 63.36 53.78 48.84 49.85
February 64.00 60.20 63.26 51.58 48.97 51.02
January 63.60 59.23 61.50 51.55 47.97 48.84
------- ----- ----- ----- ----- ----- -----
Source: yahoo finances
ANALYST COVERAGE
----------------
Institution Analyst name E-mail
----------- ------------ ------
ACTINVER Carlos Hermosillo chermosillo@actinver.com.mx
-------- ----------------- ---------------------------
BBVA BANCOMER Fernando Olvera fernando.olvera@bbva.com
------------- --------------- ------------------------
GBM Miguel Mayorga mmayorga@gbm.com.mx
--- -------------- -------------------
INTERACCIONES CASA DE BOLSA Brian Flores Ibflorese@interacciones.com
--------------------------- ------------ ---------------------------
JPMORGAN Pedro Leduc pedro.a.leduc@jpmorgan.com
-------- ----------- --------------------------
INTERCAM GRUPO FINANCIERO Fernanda Simon fsimon@intercam.com.mx
------------------------- -------------- ----------------------
SIGNUM RESEARCH Emma Ochoa Emma.ochoa@signumresearch.com
--------------- ---------- -----------------------------
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $17.21 per USD $1.00, which corresponds to the rate at the close of December 31, 2015, 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 2015 2015 2014*
---------------- ---- ---- ----
TOTAL ASSETS $2,354.9 40,527.1 34,793.8
======== ======== ========
Total current assets 1,442.9 24,832.5 20,852.0
------- -------- --------
Cash and cash equivalents 888.4 15,288.9 11,961.6
Total accounts receivable 161.3 2,776.1 2,976.5
Inventories 293.8 5,056.1 4,469.5
Other current assets 99.4 1,711.5 1,444.3
Total non current assets 911.9 15,694.7 13,941.8
----- -------- --------
Net property, plant and
equipment 767.4 13,206.7 12,054.8
Other non current Assets 144.6 2,487.9 1,887.0
TOTAL LIABILITIES $735.1 12,650.7 10,431.7
====== ======== ========
Total current liabilities 388.9 6,692.9 5,655.5
----- ------- -------
Notes payable to banks 94.8 1,631.9 798.0
Accounts payable 230.4 3,966.0 3,384.3
Other taxes payable and
other accruals 63.6 1,095.0 1,473.2
Total long-term liabilities 346.2 5,957.9 4,776.2
----- ------- -------
Long-term debt 145.0 2,495.1 1,652.5
Other non current
liabilities 6.6 114.2 90.9
Deferred income taxes 194.6 3,348.5 3,032.8
TOTAL STOCKHOLDERS' EQUITY $1,619.8 27,876.4 24,362.1
======== ======== ========
Capital stock 68.2 1,174.4 1,174.4
Commission in shares issued 24.1 414.0 399.6
Repurchased shares 45.2 777.6 101.1
Retained earnings 1,442.6 24,827.2 22,513.2
Others accounts 36.7 631.8 129.1
Non controlling interest 3.0 51.3 44.6
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,354.9 40,527.1 34,793.8
======== ======== ========
*Audited
CONSOLIDATED STATEMENT OF INCOME
Fourth Quarter Results, ended December 31:
-Unaudited-
U.S. Dollar
In millions pesos 2015 2015 2014
----------------- ---- ---- ----
Net sales $676.9 11,650.2 10,899.3
Cost of sales 580.4 9,989.0 8,376.5
----- ------- -------
Gross profit 96.5 1,661.2 2,522.9
SG&A 66.1 1,137.9 1,038.0
Other income
(expenses), net 0.2 2.8 (59.5)
--- --- -----
Operating income 30.6 526.1 1,425.4
Net finance income 6.6 113.1 68.2
Income tax 10.9 187.8 426.4
---- ----- -----
Net Income $43.7 451.5 1,067.2
===== ===== =======
Non-controlling
interest 0.0 0.8 3.06
Net controlling
interest profit 26.3 450.7 1,064.1
Basic and diluted
earnings per share 0.04 0.75 1.77
Basic and diluted
earnings per ADR 0.52 9.01 21.28
Weighted average
Shares outstanding(1) 599,997 599,997 600,000
EBITDA Result $43.2 743.8 1,630.0
===== ===== =======
Gross margin 14.3% 14.3% 23.1%
Operating margin 4.5% 4.5% 13.1%
Net margin 3.9% 3.9% 9.8%
EBITDA margin 6.4% 6.4% 15.0%
(1)In thousands
Consolidated Statement of Income
Annual Results
-Unaudited-
U.S. Dollar
In millions pesos 2015 2015 2014
----------------- ---- ---- ----
Net sales $2,686.2 46,229.0 41,779.1
Cost of sales 2,139.5 36,821.0 32,495.0
------- -------- --------
Gross profit 546.7 9,408.1 9,284.1
Selling, general and
administrative expenses 248.7 4,279.5 3,781.3
Other income (expenses), net (2.4) (41.0) (160.9)
---- ----- ------
Operating income 295.6 5,087.6 5,341.9
Net finance income 30.1 518.5 246.9
Income tax 99.3 1,708.1 1,656.1
---- ------- -------
Net income $355.9 3,898.0 3,932.7
====== ======= =======
Non-controlling interest 0.4 6.7 5.7
Net controlling interest profit 226.9 3,891.3 3,926.9
Basic and diluted earnings per
share 0.38 6.49 6.55
Basic and diluted earnings per ADR 4.52 77.9 78.54
Weighted average Shares
outstanding(1) 599,631 599,631 599,955
EBITDA Result $343.3 5,907.9 6,147.5
====== ======= =======
Gross margin 20.4% 20.4% 22.2%
Operating margin 11.0% 11.0% 12.8%
Net margin 8.4% 8.4% 9.4%
EBITDA margin 12.8% 12.8% 14.7%
(1)In thousands
CONSOLIDATED STATEMENT OF CASH FLOWS
In million of pesos
-Unaudited-
U.S. Dollar December 31,
-----------
2015 2015 2014
---- ---- ----
NET MAJORITY INCOME BEFORE INCOME TAX $325.7 5,606.1 5,588.8
------ ------- -------
ITEMS THAT DO NOT REQUIRE CASH: - - -
ITEMS RELATING TO INVESTING ACTIVITIES: 24.3 418.9 611.1
---- ----- -----
Depreciation and others 47.7 820.3 805.7
Income (loss) on sale of plant and equipment 4.5 77.5 152.8
Other Items (27.8) (479.0) (347.4)
ITEMS RELATING TO FINANCING ACTIVITIES: 8.3 142.4 200.2
--- ----- -----
Interest income (expense) 8.3 142.4 118.1
Other Items - - 82.1
NET CASH GENERATED FROM NET INCOME BEFORE TAXES 358.4 6,167.4 6,400.1
----- ------- -------
CASH GENERATED OR USED IN THE OPERATION: (135.4) (2,331.0) (1,414.1)
Decrease (increase) in accounts receivable (39.8) (685.8) (746.4)
Decrease (increase) in inventories (25.4) (437.7) (329.5)
Decrease (increase) in accounts payable (70.5) (1,213.1) (453.8)
Decrease (increase) in other liabilities 0.3 5.6 115.6
NET CASH FLOW FROM OPERATING ACTIVITIES 222.9 3,836.5 4,986.0
----- ------- -------
NET CASH FLOW FROM INVESTING ACTIVITIES (89.1) (1,533.3) (982.0)
----- -------- ------
Acquisition of property, plant and equipment (96.6) (1,662.8) (1,288.5)
Proceeds from sales of property plant and equipment 4.2 71.5 62.3
Other Items 3.4 58.1 244.1
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN 133.8 2,303.2 4,004.0
FINANCING ACTIVITIES
---
Net cash provided by financing activities: 41.1 707.0 315.2
---- ----- -----
Proceeds from loans 234.6 4,038.2 1,454.1
Principal payments on loans (133.8) (2,303.3) (1,098.6)
Dividends paid (52.2) (899.2) (0.8)
Other items (7.5) (128.8) (39.5)
Net increase (decrease) in cash and equivalents 174.9 3,010.2 4,319.2
Cash and investments at the beginning of year $641.3 11,036.1 6,716.9
------ -------- -------
CASH AND INVESTMENTS AT END OF PERIOD $816.2 14,046.3 11,036.1
====== ======== ========
DERIVATIVES POSITION REPORT
Fourth Quarter 2015
Thousands of Mexican Pesos, as of December 31, 2015
TYPE OF FINANCIAL OBJECTIVE NOTIONAL VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTS DUE GUARANTIES
INSTRUMENT BY YEAR REQUIRED
---------- ------- --------
4Q-2015 3Q-2015 4Q-2015 3Q-2015
------- ------- ------- -------
Knock out forwards. Hedge $206,520 $17.21 $16.93 $ - $320 in 2016 The deals
consider the
possibility of
margin calls but
not another kind
of guarantee
------------
Futures for corn and Hedge $329,002 CORN CORN -$ 5,851 $784 All in 2016
soybean meal
------------
In USD per Bushel In USD per Bushel
month price month price
Dec-2015 $3.588
Mar-2016 $3.588
May-2016 $3.645 May-2016 $3.645
Dec-2016 $ -
SOYBEAN MEAL SOYBEAN MEAL
In USD per ton In USD per ton
month price month price
Oct-2015 $264.300
Dec-2015 $265.500
Jan-2016 $264.300 Jan-2016 $269.000
Mar-2016 $265.500 March-2016 $274.200
May-2016 $269.000
Aug-2016 $274.200
Options of Corn Hedge $4,655 CORN CORN -$ 121 $ - 2016
--------------- ----- ------ --------------- ---------------- ----
In USD per Bushel In USD per Bushel
month price month price
Mar-2016 $3.588 Oct-2015 $4.13
May-2016 $3.645
Options of soybean Hedge $4,130 SOYBEAN MEAL SOYBEAN MEAL -$ 110 $ - in 2016
meal
----
In USD per ton In USD per ton
month price month price
Mar-2016 $265.50
May-2016 $269.00
NOTES
-The total financial instruments not exceed 5% of total assets as of December 31, 2015.
-The notional value represents the net position as of December 31, 2015 at the exchange rate of Ps.17.21 per one dollar.
-A negative value means an unfavorable effect for the company.
PROBABLE SCENARIO
Fourth Quarter 2015
Thousands of Mexican Pesos, as of December 31, 2015
PROBABLE SCENARIO
TYPE OF FINANCIAL REASONABLE VALUE OF THE RELATED COMMODITY EFFECT ON THE EFFECT ON THE CASH FLOW(3)
INSTRUMENT VALUE INCOME STATEMENT
---------- ----- ----------------
Reference Value
---------------
-2.5% 2.5% 5.0% -2.5% 2.5% 5.0%
---- --- --- ---- --- ---
Knock Out Forwards (1) $ - $16.78 $17.64 $18.07 Direct $2,333 $ - $ -
--------------------- ----------------------- ------ ------ ------ ------ ------ ------------ ------------
-5% 5% 10% -5% 5% 10%
Futures of Corn: (2) -$ 5,851 $3.408 $3.767 $3.946 The effect will -$22,301 $10,599 $27,049
materialize as the
inventory is consumed
---------------------
Futures of Soybean Meal: (2) $251.1 $277.5 $290.7
Options for Corn -$ 121 $3.408 $3.767 $3.946 -$ 353 $112 $345
---------------- ---------------------- ------ ------ ------ ----------- ---- ----
Options of Soybean Meal -$ 110 $252.2 $278.8 $292.1 -$ 317 $97 $305
----------------------- ---------------------- ------ ------ ------ ----------- --- ----
NOTES
(1) The reference value is the exchange rate of Ps. $17.21 per USD as of December 31, 2015.
(2) The reference values are; the future of corn for March 2016, $3.5875 USD/bushel and the future of soybean meal for January 2016, $264.30 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 2015
Thousands of Mexican Pesos, as of December 31, 2015
STRESS SCENARIO
TYPE OF FINANCIAL REASONABLE VALUE OF THE RELATED COMMODITY EFFECT ON THE EFFECT ON THE CASH FLOW
INSTRUMENT VALUE INCOME
STATEMENT
--- --- ---
Reference Value
---------------
-50% -25% 25% 50% -50% -25% 25% 50%
--- --- --- --- --- --- --- ---
Forward and Knock Out $ - $8.61 $12.91 $21.51 $25.82 Direct -$46,716 -$20,901 $0 $0
Forwards
-------- ---
CONFERENCE CALL INFORMATION
The Company will host its fourth quarter 2015 earnings call, on Friday, February 5th, 2016. 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: https://www.yourconferencecenter.com/AlternateNumbers/alternatenumbers.aspx?100374&t=A&o=UntoxClKkGHFnc
Confirmation Number: 41684895
Visit the following link to access the webcast:
http://edge.media-server.com/m/p/knp2rtvi
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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/industrias-bachoco-announces-fourth-quarter-and-full-year-2015-results-300215313.html
SOURCE Industrias Bachoco, S.A.B. de C.V.
