CELAYA, Mexico, July 25, 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 second quarter ("2Q16") and first half ("1H16") 2016 ended June 30, 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 12.9% in 2Q16.
    --  EBITDA margin was 17.4% for 2Q16.
    --  Earnings per basic and diluted share totaled $2.63 for 2Q16.

CEO COMMENTS

Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: "This second quarter was in line with the seasonal behavior of the poultry industry. We observed a normalized growth rate in both of the markets in which we compete, and a strong demand in the Mexican market, resulting in a better balance between supply and demand.

An increase in our volume sold and prices recovered, mainly in chicken, allowed us to increase our total sales by 12.9% in the quarter when compared to the same period of 2015.

The effects on the cost of raw materials we saw in 1Q16 due to the Mexican peso depreciation versus the US dollar, continued for the second quarter of 2016, increasing our cost of sales.

At the end of the quarter, we were able to reach an EBITDA of $2,329.6 million, 11.9% higher than the EBITDA of the same quarter of 2015. Our EBITDA margin for 2Q16 was 17.4% versus 17.6% of 2Q15.

Our earnings per basic and diluted share for 2Q16 was $2.63, higher than the $2.32 for same quarter of 2015.

The Company's net cash reached $11,283.0 million, strengthening our financial position."

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   2Q16          2Q15          Change
                                                       ------

                                       $            $             $    %
                                     ---          ---           ---   ---

    Net Sales                   13,362.1      11,837.2        1,524.9     12.9
    ---------                   --------      --------        -------     ----

    Net sales in Mexico         10,115.5       9,123.9          991.6     10.9
    -------------------         --------       -------          -----     ----

    Net sales in the U.S.        3,246.6       2,713.3          533.3     19.7
    ---------------------        -------       -------          -----     ----


    NET SALES BY SEGMENT

    In millions of pesos 2Q16          2Q15          Change
                                                     ------

                                     $            $             $    %
                                   ---          ---           ---   ---

    Net Sales                 13,362.1      11,837.2        1,524.9     12.9
    ---------                 --------      --------        -------     ----

    Poultry                   12,067.7      10,703.9        1,363.8     12.7
    -------                   --------      --------        -------     ----

    Other                      1,294.4       1,133.3          161.1     14.2
    -----                      -------       -------          -----     ----

NET VOLUME SOLD BY SEGMENT



    In tons                               Change
                                          ------

                        2Q16     2Q15     Volume        %
                        ----     ----     ------      ---

    Total sales volume:  524,083  499,355      24,729    4.95
    -------------------  -------  -------      ------    ----

    Poultry              403,217  392,749      10,468    2.67
    -------              -------  -------      ------    ----

    Others               120,867  106,606      14,261    13.38
    ------               -------  -------      ------    -----

The Company's 2Q16 net sales totaled $13,362.1 million, $1,524.9 million or 12.9% more than $11,837.2 million reported in 2Q15. The increase is a result of more volume sold in our main product lines and price increases in chicken, and swine. This was partially offset by lower prices in table eggs when compared to 2Q15.

In 2Q16, sales of our U.S. operations represented 24.3% of our total sales compared to 22.9% in 2Q15.



    GROSS PROFIT

    In millions of pesos 2Q16          2Q15         Change
                                                    ------

                                     $           $             $    %
                                   ---         ---           ---   ---

    Cost of sales             10,079.1      8,914.2        1,164.9     13.1
    -------------             --------      -------        -------     ----

    Gross profit               3,283.0      2,923.1          360.0     12.3
    ------------               -------      -------          -----     ----

    Gross margin                 24.6%       24.7%             -       -
    ------------                  ----         ----            ---     ---

In 2Q16, cost of sales was $10,079.1 million; $1,164.9 million or 13.1% higher than $8,914.2 million reported in 2Q15. This increase was due to higher volume sold and higher raw material costs in Mexican peso terms, in part due to depreciation of the Mexican peso versus US dollar.

The Company´s gross profit in 2Q16 was $3,283.0 million, 12.3% higher than the gross profit of $2,923.1 million with a gross margin of 24.6% for 2Q16 vs 24.7% in 2Q15.



    Selling, general and administrative expenses ("SG&A")

     In
     millions
     of
     pesos                                            2Q16         2Q15         Change
                                                                                ------

                                                                 $           $           $    %
                                                               ---         ---         ---   ---

     Total
     SG&A                                                  1,185.0      1,044.5        140.5     13.4
     -----                                                 -------      -------        -----     ----

Total SG&A expenses in 2Q16 were $1,185.0 million, $140.5 million higher than the $1,044.5 million reported in 2Q15. Total SG&A expenses as a percentage of net sales represented 8.9% in 2Q16, similar to the one in 2Q15.



    other income (expense), net

    In millions of pesos        2Q16       2Q15      Change
                                                     ------

                                         $        $             $    %
                                       ---      ---           ---   ---

    Other income (expense),
     net                             (6.4)      5.0         (11.4)      (229.6)
    -----------------------           ----       ---          -----        ------

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 2Q16, we recorded other expense of $6.4 million, compared with other income of $5.0 million reported in 2Q15.This is mainly attributed to a loss on the sale of unused assets.



    OPERATING INCOME

    In millions of pesos 2Q16         2Q15         Change
                                                   ------

                                    $           $           $    %
                                  ---         ---         ---   ---

    Operating income          2,091.6      1,883.5        208.1     11.0
    ----------------          -------      -------        -----     ----

    Operating margin            15.7%       15.9%           -       -
    ----------------             ----         ----          ---     ---

Operating income in 2Q16 totaled $2,091.6 million, $208.1 higher than $1,883.5 million reported in 2Q15. This represents an operating margin of 15.7% for 2Q16, slightly lower when compared to the same period of 2015.

The increase in operating income is mainly attributed to higher gross income in 2Q16.




    NET FINANCIAL INCOME

    In millions of pesos 2Q16       2Q15       Change
                                               ------

                                  $         $           $    %
                                ---       ---         ---   ---

    Net Financial Income      197.3      132.1         65.2     49.3
    --------------------      -----      -----         ----     ----

    Financial Income          244.9      161.7         83.2     51.5
    ----------------          -----      -----         ----     ----

    Financial Expense          47.6       29.6         18.0     61.0
    -----------------          ----       ----         ----     ----

In 2Q16, the Company reported net financial income of $197.3 million, compared to $132.1 million reported in the same period of 2015. The increase is mainly attributed to higher interest income.



    TAXES FOR THE PERIOD

    In millions of pesos 2Q16       2Q15       Change
                                               ------

                                  $         $            $    %
                                ---       ---          ---   ---

    Total Taxes               708.9      621.1          87.8       14.1
    -----------               -----      -----          ----       ----

    Income tax                547.1      580.5        (33.4)     (5.7)
    ----------                -----      -----         -----       ----

    Deferred income tax       161.8       40.6         121.2      298.1
    -------------------       -----       ----         -----      -----

Total taxes for the 2Q16 were $708.9 million, compared with total taxes of $621.1 million in the same period of 2015.This increase is attributed to higher income before taxes.



    NET INCOME

    In millions of pesos       2Q16         2Q15         Change
                                                         ------

                                          $           $           $    %
                                        ---         ---         ---   ---

    Net income                      1,580.0      1,394.5        185.5     13.3
    ----------                      -------      -------        -----     ----

    Net margin                        11.8%       11.8%           -       -
    ----------                         ----         ----          ---     ---

    Basic and diluted earnings
     per share(1)                      2.63         2.32            -       -
    --------------------------         ----         ----          ---     ---

    Basic and diluted earnings
     per ADR(2)                       31.55        27.90            -       -
    --------------------------        -----        -----          ---     ---

    Weighted average Shares
     outstanding(3)                 599,946      599,442            -       -
    -----------------------         -------      -------          ---     ---

(1) In pesos
(2) in pesos, one ADR equals to twelve shares
(3) In thousands of shares

The net income for 2Q16 was $1,580.0 million, representing a net income of $2.63 pesos per share, compared with a net income of $1,394.5 million, which represented $2.32 pesos of net income per share in 2Q15.This increase is mainly attributed to better operating and financial results.

Net margin in 2Q16 was 11.8%, same percentage as reported in 2Q15.



    EBITDA AND ADJUSTED EBITDA

    In millions
     of pesos                  2Q16          2Q15          Change
                                                           ------

                                           $            $              $    %
                                         ---          ---            ---   ---

    Net income                       1,577.2       1,393.5           183.7         13.2
    ----------                       -------       -------           -----         ----

       Income tax
        expense
        (benefit)                      708.9         621.1            87.8         14.1
       ----------                      -----         -----            ----         ----

       Result in
        associates                       2.8           1.0             1.8        178.6
       -----------                       ---           ---             ---        -----

       Net finance
        (income)
        expense                      (197.3)      (132.1)         (65.2)        49.3
       -----------                    ------        ------           -----         ----

        Depreciation
        and
        amortization                   238.0         197.5            40.6         20.5
        ------------                   -----         -----            ----         ----

    EBITDA                           2,329.6       2,081.0           248.6         11.9
    ------                           -------       -------           -----         ----

    EBITDA
     Margin (%)                       17.4%        17.6%              -           -
    -----------                         ----          ----             ---         ---

      Other
       expense
       (income)
       net                               6.4         (5.0)           11.4      (229.6)
      ---------                          ---          ----            ----       ------

    Adjusted
     EBITDA                          2,336.1       2,076.0           260.0         12.5
    --------                         -------       -------           -----         ----

    Adjusted
     EBITDA
     Margin                            17.5%        17.5%              -           -
    --------                            ----          ----             ---         ---

    Net
     revenues                       13,362.1      11,837.2         1,524.9         12.9
    ---------                       --------      --------         -------         ----

EBITDA in 2Q16 reached $2,329.6 million, representing an EBITDA margin of 17.4%, compared to an EBITDA of $2,081.0 million in 2Q15, with an EBITDA margin of 17.6%.

The adjusted EBITDA in 2Q16 reached $2,336.1 million, representing an adjusted EBITDA margin of 17.5%, compared to adjusted EBITDA of $2,076.0 million in 2Q15, with an adjusted EBITDA margin of 17.5%.

ACCUMULATED RESULTS



    NET SALES BY GEOGRAPHY

    In millions of pesos   1H16          1H15          Change
                                                       ------

                                       $            $             $    %
                                     ---          ---           ---   ---

    Net Sales                   25,201.5      23,243.2        1,958.2      8.4
    ---------                   --------      --------        -------      ---

    Net sales in Mexico         18,937.1      17,768.6        1,168.5      6.6
    -------------------         --------      --------        -------      ---

    Net sales in the U.S.        6,264.4       5,474.7          789.7     14.4
    ---------------------        -------       -------          -----     ----


    NET SALES BY SEGMENT

    In millions of pesos 1H16          1H15          Change
                                                     ------

                                     $            $             $    %
                                   ---          ---           ---   ---

    Net Sales                 25,201.5      23,243.2        1,958.2      8.4
    ---------                 --------      --------        -------      ---

    Poultry                   22,712.2      21,117.2        1,595.1      7.6
    -------                   --------      --------        -------      ---

    Other                      2,489.2       2,126.0          363.2     17.1
    -----                      -------       -------          -----     ----

NET VOLUME SOLD BY SEGMENT



    In metric tons                          Change
                                            ------

                               1H16           1H15      Volume   %
                               ----           ----      ------  ---

    Total sales volume: 1,045,501   983,855      61,646   6.27
    ------------------- ---------   -------      ------   ----

    Poultry               814,676   780,444      34,232   4.39
    -------               -------   -------      ------   ----

    Others                230,825   203,411      27,414   13.48
    ------                -------   -------      ------   -----

During the first half of 2016, net sales totaled $25,201.5 million; $1,958.2 million or 8.4% more than $23,243.2 million reported in the same period of 2015. The increase in sales is mainly attributable to higher volume sold in our main product lines as compared with the first half of 2015.

In 1H16, sales of our U.S. operations represented 24.9% of our total sales, compared with 23.6% in 1H15.



    Operating Results

    In millions of pesos   1H16          1H15          Change
                                                       ------

                                       $            $             $    %
                                     ---          ---           ---   ---

    Cost of Sales               20,091.3      17,636.6        2,454.7        13.9
    -------------               --------      --------        -------        ----

    Gross Profit                 5,110.2       5,606.6        (496.4)      (8.9)
    ------------                 -------       -------         ------        ----

    Total SG&A                   2,306.8       2,052.7          254.0        12.4
    ----------                   -------       -------          -----        ----

    Other Income (expense)        (15.5)        (8.2)         (7.3)       88.6
    ---------------------          -----          ----           ----        ----

    Operating Income             2,787.9       3,545.6        (757.8)     (21.4)
    ----------------             -------       -------         ------       -----

    Net Financial Income           333.7         313.1           20.6         6.6
    --------------------           -----         -----           ----         ---

    Income Tax                     944.7       1,198.5        (253.8)     (21.2)
    ----------                     -----       -------         ------       -----

    Net Income                   2,176.9       2,660.2        (483.3)     (18.2)
    ----------                   -------       -------         ------       -----

In 1H16, the cost of sales totaled $20,091.3 million; $2,454.7 million or 13.9% higher than $17,636.6 million reported in 1H15. The increase in cost of sales is mainly attributed to higher volume sold and higher raw material costs in Mexican peso terms when compared to the same period of 2015.

As a result, we reached a gross profit of $5,110.2 million and a gross margin of 20.3% in 1H16, a lower result than $5,606.6 million of gross profit and a margin of 24.1% reached in the same period of 2015.

Total SG&A expenses in 1H16 were $2,306.8 million, $254.0 million or 12.4% more than the $2,052.7million reported in 1H15. In 1H16 total SG&A expenses as a percentage of net sales represented 9.2% compare with 8.8% in 1H15. This increase is mainly attributed to higher volume sold.

In 1H16 we had other expenses of $15.5 million, compared with other expenses of $8.2 million reported in 1H15.

The operating income in 1H16 was $2,787.9 million, which represents an operating margin of 11.1%, a decrease of 21.4% from an operating income of $3,545.6 million and an operating margin of 15.3% in 1H15.

The net financial income in 1H16 was $333.7 million, higher when compared to a net financial income of $313.1 million in 1H15, mainly attributed to higher interest income.

Total taxes were $944.7 million as of June 30, 2016. These taxes include $704.6 million of income tax and $240.1 million of deferred income taxes. This figure compares to total taxes of $1,198.5 million in 1H15; the decrease was due to lower income before taxes.

All the above resulted in a net income of $2,176.9 million or 8.6% of net margin in the 1H16, which represents $3.62 pesos of earnings per share, while in the 1H15 the net income totaled $2,660.2 million, 11.4% of net margin and $4.43 pesos of net income per share.



    EBITDA AND
     ADJUSTED
     EBITDA

    In millions
     of pesos        1H16          1H15          Change
                                                 ------

                                 $            $              $    %
                               ---          ---            ---   ---

    Net
     controlling
     interest
     profit                2,172.4       2,656.9         (484.5)     (18.2)
    ------------           -------       -------          ------       -----

       Income tax
        expense
        (benefit)            944.7       1,198.5         (253.8)     (21.2)
       ----------            -----       -------          ------       -----

       Result in
        associates             4.6           3.4             1.2        35.4
       -----------             ---           ---             ---        ----

       Net finance
        (income)
        expense            (333.7)      (313.1)         (20.6)        6.6
       -----------          ------        ------           -----         ---

       Depreciation
        and
        amortization         462.8         396.9            65.9        16.6
       -------------         -----         -----            ----        ----

    EBITDA                 3,250.7       3,942.5         (691.9)     (17.5)
    ------                 -------       -------          ------       -----

    EBITDA
     Margin (%)             12.9%        17.0%              -          -
    -----------               ----          ----             ---        ---

      Other
       expense
       (income)
       net                    15.5           8.2             7.3        88.6
      ---------               ----           ---             ---        ----

    Adjusted
     EBITDA                3,266.2       3,950.8         (684.6)     (17.3)
    --------               -------       -------          ------       -----

    Adjusted
     EBITDA
     Margin                  13.0%        17.0%              -          -
    --------                  ----          ----             ---        ---

    Net revenues          25,201.5      23,243.2         1,958.2         8.4
    ------------          --------      --------         -------         ---

EBITDA in 1H16 reached $3,250.7 million, representing an EBITDA margin of 12.9%, compared to EBITDA of $3,942.5 million in 1H15, with an EBITDA margin of 17.0%.

The adjusted EBITDA in 1H16 reached $3,266.2 million, representing an adjusted EBITDA margin of 13.0%, compared to adjusted EBITDA of $3,950.8 million in 1H15, with an adjusted EBITDA margin of 17.0%.

BALANCE SHEET





    BALANCE SHEET
     DATA

    In millions of
     pesos            June 30, 2016       Dec. 31, 2015          Change
                                                                 ------

                                        $                     $             $    %
                                      ---                   ---           ---   ---

    TOTAL ASSETS                 42,808.7               40,446.6        2,362.1        5.8
    ------------                 --------               --------        -------        ---

    Cash and cash
     equivalents                 15,243.0               15,288.9         (45.9)     (0.3)
    -------------                --------               --------          -----       ----

    Accounts
     receivable                   3,128.0                2,727.9          400.1       14.7
    -----------                   -------                -------          -----       ----

    TOTAL LIABILITIES            13,409.1               12,667.2          741.9        5.9
    -----------------            --------               --------          -----        ---

    Accounts payable              3,890.8                3,966.0         (75.3)     (1.9)
    ----------------              -------                -------          -----       ----

    Short-term debt               1,518.1                1,631.9        (113.7)     (7.0)
    ---------------               -------                -------         ------       ----

    Long-term debt                2,441.9                2,495.1         (53.2)     (2.1)
    --------------                -------                -------          -----       ----

    TOTAL
     STOCKHOLDERS'
     EQUITY                      29,399.7               27,779.4        1,620.3        5.8
    --------------               --------               --------        -------        ---

    Capital stock                 1,174.4                1,174.4            0.0        0.0
    -------------                 -------                -------            ---        ---

Cash and equivalents as of June 30, 2016 totaled $15,243.0 million vs $15,288.9 million as of December 31, 2015.

Total debt as of June 30, 2016 was $3,960.0 million, compared to $4,127.0 million reported as of December 31, 2015, mainly as a result of lower short-term bank debt.

Net cash as of June 30, 2016 was $11,283.0 million, compared to net cash of $11,161.9 million as of December 31, 2015.



    CAPITAL EXPENDITURES

    In millions of pesos 1H16         1H15       Change
                                                 ------

                                    $         $           $    %
                                  ---       ---         ---   ---

    Capital Expenditures      1,188.2      605.0        583.2     96.4
    --------------------      -------      -----        -----     ----

Total CAPEX for the 1H16 was $1,188.2 million and $605.0 million in 1H15, mainly allocated toward organic growth and productivity projects across all of our facilities.

STOCK INFORMATION



    As of June 30, 2016
    -------------------

    Total Shares                            600,000,000
    ------------                            -----------

    Total free float                             26.75%
    ----------------                              -----

    Market cap (millions
     of pesos)                                  $45,168
    --------------------                        -------

Source: yahoo finances

SHARE PRICE



           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                        Average   Close    High    Low    Average   Close
    -----                              ----      ---                        -------   -----    ----    ---    -------   -----

    Jun-16                                 76.20                      73.61     74.92    75.28     50.05   46.04      48.22   48.98
    ------                                 -----                      -----     -----    -----     -----   -----      -----   -----

    May-16                                 77.31                      70.42     74.25    75.85     51.46   46.60      49.08   49.55
    ------                                 -----                      -----     -----    -----     -----   -----      -----   -----

    Apr-16                                 76.78                      71.63     74.69    72.30     52.68   49.70      51.32   50.32
    ------                                 -----                      -----     -----    -----     -----   -----      -----   -----

    Mar-16                                 77.40                      73.05     74.94    73.91     53.52   49.11      51.00   51.28
    ------                                 -----                      -----     -----    -----     -----   -----      -----   -----

    Feb-16                                 74.00                      65.45     70.89    72.98     49.11   43.15      46.12   48.28
    ------                                 -----                      -----     -----    -----     -----   -----      -----   -----

    Jan-16                                 70.40                      62.51     67.45    65.45     48.67   41.17      44.82   43.32
    ------                                 -----                      -----     -----    -----     -----   -----      -----   -----

ANALYST COVERAGE



    Institution           Analyst name         E-mail
    -----------           ------------         ------

    ACTINVER              José Antonio Cebeira jcebeira@actinver.com.mx
    --------              -------------------- ------------------------

    BBVA BANCOMER         Fernando Olvera      fernando.olvera@bbva.com
    -------------         ---------------      ------------------------

    GBM                   Miguel Mayorga       mmayorga@gbm.com.mx
    ---                   --------------       -------------------

    INTERACCIONES CASA DE
     BOLSA                Emma Ochoa           oochoap@interacciones.com
    --------------------- ----------           -------------------------

    JPMORGAN              Pedro Leduc          pedro.a.leduc@jpmorgan.com
    --------              -----------          --------------------------

    PUNTO CASA DE BOLSA   Cristina Morales     cristina.morales@signumresearch.com
    -------------------   ----------------     -----------------------------------

APPENDICES

For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $18.26 per USD $1.0, which corresponds to the rate at the close of June 30, 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    June 30,          December 31,
                                                                   --------          ------------

    In million
     pesos                                                    2016              2016       2015*
    ----------                                                ----              ----       ----


    TOTAL
     ASSETS                                               $2,344.4          42,808.7              40,446.6
                                                          ========          ========              ========


    Total
     current
     assets                                                1,423.0          25,983.3              24,722.0
                                                           -------          --------              --------

       Cash and
        cash
        equivalents                                          834.8          15,243.0              15,288.9

       Total
        accounts
        receivable                                           171.3           3,128.0               2,727.9

       Inventories                                           310.1           5,662.0               5,056.1

       Other
        current
        assets                                               106.8           1,950.3               1,649.1


    Total non
     current
     assets                                                  921.4          16,825.4              15,724.6
                                                             -----          --------              --------

       Net
        property,
        plant and
        equipment                                            769.4          14,050.0              13,188.1

       Other non
        current
        Assets                                               152.0           2,775.4               2,536.5


    TOTAL
     LIABILITIES                                            $734.3          13,409.1              12,667.2
                                                            ======          ========              ========


    Total
     current
     liabilities                                             390.9           7,138.5               6,642.8
                                                             -----           -------               -------

       Notes
        payable
        to banks                                              83.1           1,518.1               1,631.9

       Accounts
        payable                                              213.1           3,890.8               3,966.0

       Other
        taxes
        payable
        and other
        accruals                                              94.7           1,729.6               1,044.9


    Total
     long-
     term
     liabilities                                             343.4           6,270.6               6,024.4
                                                             -----           -------               -------

       Long-term
        debt                                                 133.7           2,441.9               2,495.1

       Other  non
        current
        liabilities                                            9.7             176.5                 160.2

       Deferred
        income
        taxes                                                200.0           3,652.2               3,369.0


    TOTAL
     STOCKHOLDERS'
     EQUITY                                               $1,610.1          29,399.7              27,779.4
                                                          ========          ========              ========


    Capital
     stock                                                    64.3           1,174.4               1,174.4

    Commission
     in shares
     issued                                                   22.7             414.4                 414.0

     Repurchased
     shares                                                      -                -                  0.7

    Retained
     earnings                                              1,474.3          26,920.0              25,527.9

    Others
     accounts                                                 45.8             835.9                 611.8

    Non
     controlling
     interest                                                  3.0              55.0                  50.4


    TOTAL
     LIABILITIES
     AND
     STOCKHOLDERS'
     EQUITY                                               $2,344.4          42,808.7              40,446.6
                                                          ========          ========              ========


    *Audited


    CONSOLIDATED STATEMENT OF INCOME

    Second Quarter Results, ended
     June 30:

    -Unaudited-

                                     U.S. Dollar

    In millions pesos                              2016     2016     2015
    -----------------                              ----     ----     ----

    Net sales                                    $731.8 13,362.1 11,837.2

    Cost of sales                                 552.0 10,079.1  8,914.2
                                                  ----- --------  -------

    Gross profit                                  179.8  3,283.0  2,923.1

    SG&A                                           64.9  1,185.0  1,044.5

    Other income (expenses), net                  (0.4)   (6.4)     5.0
                                                   ----     ----      ---

    Operating income                              114.5  2,091.6  1,883.5

    Net finance income                             10.8    197.3    132.1

    Income tax                                     38.8    708.9    621.1
                                                   ----    -----    -----

    Net Income                                    $86.5  1,580.0  1,394.5
                                                  =====  =======  =======


    Non-controlling interest                        0.2      2.8      1.0

    Net controlling interest profit                86.4  1,577.2  1,393.5

    Basic and diluted earnings per
     share                                         0.14     2.63     2.32

    Basic and diluted earnings per
     ADR                                           1.73    31.55    27.90

    Weighted average Shares
     outstanding(1)                             599,946  599,946  599,442


    EBITDA Result                                $127.6  2,329.6  2,081.0
                                                 ======  =======  =======


    Gross margin                                  24.6%   24.6%   24.7%

    Operating margin                              15.7%   15.7%   15.9%

    Net margin                                    11.8%   11.8%   11.8%

    EBITDA margin                                 17.4%   17.4%   17.6%


    (1)In thousands



    CONSOLIDATED STATEMENT OF INCOME

    Accumulated results, for the six months ended  June 30.

    -Unaudited-

                                                U.S. Dollar

    In millions pesos                                         2016     2016     2015
    -----------------                                         ----     ----     ----

    Net sales                                             $1,380.1 25,201.5 23,243.2

    Cost of sales                                          1,100.3 20,091.3 17,636.6
                                                           ------- -------- --------

    Gross profit                                             279.9  5,110.2  5,606.6

    SG&A                                                     126.3  2,306.8  2,052.7

    Other income
     (expenses), net                                         (0.9)  (15.5)   (8.2)
                                                              ----    -----     ----

    Operating income                                         152.7  2,787.9  3,545.6

    Net finance income                                        18.3    333.7    313.1

    Income tax                                                51.7    944.7  1,198.5
                                                              ----    -----  -------

    Net income                                              $189.2  2,176.9  2,660.2
                                                            ======  =======  =======


    Non-controlling
     interest                                                  0.2      4.6      3.4

    Net controlling
     interest profit                                         119.5  2,172.4  2,656.9

    Basic and diluted
     earnings per share                                       0.20     3.62     4.43

    Basic and diluted
     earnings per ADR                                         2.38     43.5    53.18

    Weighted average
     Shares
     outstanding(1)                                        599,959  599,959  599,488


    EBITDA Result                                           $178.0  3,250.7  3,942.5
                                                            ======  =======  =======


    Gross margin                                             20.3%   20.3%   24.1%

    Operating margin                                         11.1%   11.1%   15.3%

    Net margin                                                8.7%    8.6%   11.4%

    EBITDA margin                                            12.9%   12.9%   17.0%


    (1)In thousands


    CONSOLIDATED STATEMENT OF CASH FLOWS

    In million of
     pesos

    -Unaudited-


                                         U.S. Dollar      June 30,
                                                          --------

                                                     2016              2016        2015
                                                     ----              ----        ----


    NET MAJORITY
     INCOME BEFORE
     INCOME TAX                                    $171.0           3,121.6     3,858.8
                                                   ------           -------     -------


    ITEMS THAT DO NOT
     REQUIRE CASH:                                      -                -          -


    ITEMS RELATING TO
     INVESTING
     ACTIVITIES:                                    (0.7)           (12.0)      193.0
                                                     ----             -----       -----

          Depreciation and
           others                                    25.3             462.8       396.9

          Income (loss) on
           sale of plant
           and equipment                              0.8              14.1        37.0

          Other Items                              (26.8)          (488.9)    (240.9)


    ITEMS RELATING TO
     FINANCING
     ACTIVITIES:                                      5.5             101.1        57.3
                                                      ---             -----        ----

          Interest income
           (expense)                                  5.5             101.1        57.3

          Other Items                                   -                -          -


    NET CASH
     GENERATED FROM
     NET INCOME
     BEFORE TAXES                                   175.8           3,210.8     4,109.0
                                                    -----           -------     -------

    CASH GENERATED OR
     USED IN THE
     OPERATION:                                   (109.0)        (1,989.9)    (517.6)

       Decrease
        (increase) in
        accounts
        receivable                                 (43.7)          (798.5)      407.8

       Decrease
        (increase) in
        inventories                                (25.7)          (469.0)       94.5

       Decrease
        (increase) in
        accounts payable                           (47.5)          (867.1)  (1,032.9)

       Decrease
        (increase) in
        other
        liabilities                                   7.9             144.8        12.9


    NET CASH FLOW
     FROM OPERATING
     ACTIVITIES                                      66.9           1,220.9     3,591.4
                                                     ----           -------     -------


    NET CASH FLOW
     FROM INVESTING
     ACTIVITIES                                    (40.7)          (743.8)    (370.1)
                                                    -----            ------      ------

          Acquisition of
           property, plant
           and equipment                           (65.1)        (1,188.2)    (605.0)

          Proceeds from
           sales of
           property plant
           and equipment                              0.9              16.0        39.7

          Other Items                                23.5             428.4       195.3


    CASH FLOW SURPLUS
     (REQUIREMENTS
     OF) TO BE USED
     IN FINANCING
     ACTIVITIES                                      26.1             477.1     3,221.3
                                                     ----             -----     -------


    Net cash provided
     by financing
     activities:                                   (28.6)          (523.0)     (38.3)
                                                    -----            ------       -----

       Proceeds from
        loans                                        98.8           1,804.0     1,874.5

       Principal
        payments on
        loans                                     (112.5)        (2,055.0)  (1,254.0)

       Dividends paid                              (21.4)          (390.0)    (449.6)

       Other items                                    6.5             118.0     (209.2)

    Net increase
     (decrease) in
     cash and
     equivalents                                    (2.5)           (45.9)    3,183.0


    Cash and
     investments at
     the beginning of
     year                                          $837.3          15,288.9    11,036.1
                                                   ------          --------    --------

    CASH AND
     INVESTMENTS AT
     END OF PERIOD                                 $834.8          15,243.0    14,219.1
                                                   ------          --------    --------



                                                                                                                                                                                    
    DERIVATIVES POSITION REPORT

    Second Quarter 2016

    Thousands of Mexican Pesos, as of june 30, 2016

    TYPE OF FINANCIAL INSTRUMENT                                                        OBJECTIVE                       NOTIONAL                   VALUE OF THE RELATED COMMODITY        REASONABLE VALUE                AMOUNTS DUE BY YEAR         GUARANTIES REQUIRED
                                                                                                                                                                --------                  ----------------                  ----------------          -------------------

                                                                                                                                                                2Q-2016                        1Q-2016                          2Q-2016                     1Q-2016
                                                                                                                                                             -------                        -------                          -------                     -------

    Forward Vanilla                                                                     Hedge                                            $26,112                             $18.26                                                           $17.29                                                    $1,127     $-2,304 in 2016               The deals consider the possibility
                                                                                                                                                                                                                                                                                                                                            of margin calls but not another
                                                                                                                                                                                                                                                                                                                                            kind of guarantee
    ---------------                                                                                               -----                  -------                            ------                                                          ------                                                   ------    -------             ------- -----------------------------------

    Futures for corn and soybean meal                                                                Hedge                              $270,194                  CORN                           CORN                                       $29,008                -$       2,376   96.6% in 2016 and 3.4% in
                                                                                                                                                                                                                                                                                  2017

                                    In USD per Bushel                                           In USD per Bushel

                                          month                                                       price                       month                          price

                                                                                                    $                 - May-16                                             $3.5150

    Jul-16                                                                                                       $3.588  Jul-16                                             $3.5575

    Sep-16                                                                                                       $3.655  Sep-16                                             $3.6050

    Dec-16                                                                                                       $3.713  Dec-16                                             $3.6925

    Mar-17                                                                                                       $3.795  Mar-17                                             $3.7825

    May-17                                                                                                       $3.845

    Sep-17                                                                                                       $3.828
    ------                                                                                                       ------

                                       SOYBEAN MEAL                                               SOYBEAN MEAL

                                      In USD per ton                                             In USD per ton

                                          month                                                       price                       month                          price

                                                                                        May-2016                                          $270.3

                                                                                        Jul-2016                                          $273.1

    Aug-2016                                                                                                     $405.8  Aug-2016                                            $274.4

    Sep-2016                                                                                                     $403.7

    Oct-2016                                                                                                     $401.1  Oct-2016                                             276.6

    Dec-2016                                                                                                     $401.0

                                                                                        Jan-2017                                          $279.6

                                                                                        Mar-2017                                          $279.6

                                                                                        May-2017                                          $278.9

                                                                                                                                                                                                                 Jul-2017                                              $280.1
                                                                                                                                                                                                                 --------                                              ------

    Options of Corn                                                                                  Hedge                                $8,903                  CORN                           CORN                                    -$   1,961              $             -                        2016

                                    In USD per Bushel                                           In USD per Bushel

                                          month                                                       price                       month                          price

    Jul-16                                                                                                       $3.588

    Sep-16                                                                                                       $3.655

                                                                                                                                                 Dec-16                                                   $3.713
                                                                                                                                                 ------                                                   ------

    Options of soybean meal                                                                          Hedge                               $11,771              SOYBEAN MEAL                   SOYBEAN MEAL                                    $1,759              -$             2  in 2016
    -----------------------                                                                          -----                               -------                                                                                             ------              ----------------  -------

                                      In USD per ton                                             In USD per ton

                                          month                                                       price                       month                          price

    Aug-2016                                                                                                    $405.80

    Sep-2016                                                                                                    $403.70  May-2016                                            $270.3

    Oct-2016                                                                                                    $401.10

    Dec-2016                                                                                                    $401.00
    --------                                                                                                    -------


    NOTES

    -The total financial instruments not exceed 5% of total assets as of June 30, 2016.

    -The notional value represents the net position as of June 30, 2016 at the exchange rate of Ps.18.26 per one dolar.

    -A negative value means an unfavorable effect for the Company.


                                                                                                                                                               PROBABLE SCENARIO

    Second Quarter 2016

    Thousands of Mexican Pesos, as of june 30, 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 (1)                                                                                              $1,127                            $17.80                              $18.72                           $19.17               Direct                      $474     $1,780                  $2,432
    -------------------                                                                                               ------                            ------                              ------                           ------              ------                       ----     ------                  ------

                                                                                                                                                        -5%                                 5%                             10%                                           -5%        5%                    10%

    Futures of Corn: (2)                                                                                             $29,008                            $3.408                              $3.767                           $3.946          The effect will               $15,499    $42,518                 $56,028
                                                                                                                                                                                                                                     materialize as the
                                                                                                                                                                                                                                    inventory is consumed
                                                                                                                                                                                                                                    ---------------------

    Futures of Soybean Meal: (2)                                                                                      $385.5                            $426.1                              $446.4
    ---------------------------

    Options for Corn                                                                                   -$              1,961                           $3.408                              $3.767                           $3.946                           -$   4,141       $19       $714
    ----------------                                                                                   ---------------------                           ------                              ------                           ------                           ----------       ---       ----

    Options of Soybean Meal                                                                                           $1,759                            $385.5                              $426.1                           $446.4                               $1,170     $2,347     $2,936
    -----------------------                                                                                           ------                            ------                              ------                           ------                               ------     ------     ------


    (1) The reference value is the exchange  rate of Ps. $18.26 per USD as of June 30, 2016.

    (2) The reference values are; the future of corn for June 2016, $3.5875 USD/bushel and the future of soybeanmeal for Aug 2016, $405.80  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.



    Second Quarter 2016

    Thousands of Mexican Pesos, as of june 30, 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                                                         $1,127 $9.13       $13.70       $22.83      $27.39                   Direct              -$11,929       -$5,401      $7,655 $14,183
    ---------------                                                         ------ -----       ------       ------      ------                  ------               --------       -------      ------ -------

CONFERENCE CALL INFORMATION
The Company will host its second quarter 2016 earnings call, on Tuesday, July 26, 2016. The earnings call will take place at 9:00 am Central Time (10:00 am ET).

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=P&o=ULACEtBoBQAtcp

Confirmation Number: 42944364

Visit the following link to access the webcast:
http://edge.media-server.com/m/p/b5z95ddu

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
T. +52(461)618 3500 Ext. 10146

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/industrias-bachoco-announces-second-quarter-2016-results-300302853.html

SOURCE Industrias Bachoco, S.A.B. de C.V.