INDUSTRIAS BACHOCO, S.A.B. DE C.V. CELAYA, Mexico, Oct. 22, 2015 /PRNewswire/ -- Industrias Bachoco, S.A.B. de C.V., "Bachoco" or "the Company", (NYSE: IBA; BMV: Bachoco) announced today its unaudited results for the third quarter ("3Q15") and accumulated ("9M15") 2015 results ended September 30, 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 6.8% in 3Q15.
-- EBITDA margin was 10.8% for 3Q15 and 14.9% in the 9M15.
-- Earnings per basic and diluted share totaled $1.31 for 3Q15 and $5.74
for the 9M15.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: "For Bachoco, this third quarter behaved as, what we can call, a typical third quarter for a year. Which, seasonally, use to be a weak one. The comparison with the 3Q14 is difficult, as last year did not present this behavior.
In general, even when we observed a good level of demand in the Mexican markets during the quarter, we also saw a stronger supply in our main product lines. At the same time, there was a strong supply in our US markets; where leg quarter prices were affected due to weaker exports.
For the quarter, our total sales continue increasing and volume in all of our product lines continued growing in both markets, so, we increased our total sales in 6.8%, and reached a two-digit EBITDA margin.
Our US operation continues delivering positive results while integrating our July's acquisition of the breeding assets in the state of Georgia, USA.
For the 9M15, we increased our total sales by 12.0%, achieving an EBITDA margin of 14.9%, same margin when compared with the equivalent period of 2014.
The Company remained in a healthy financial condition with a net cash of $10,303.7 million, as the cash and equivalents has increased 15.5% 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 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Net sales 11,335.6 10,615.0 720.6 6.8
--------- -------- -------- ----- ---
Net sales in Mexico 8,551.8 8,481.0 70.9 0.8
------------------- ------- ------- ---- ---
Net sales in the U.S. 2,783.8 2,134.1 649.7 30.4
--------------------- ------- ------- ----- ----
NET SALES BY SEGMENT
--------------------
In millions of pesos 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Net sales 11,335.6 10,615.0 720.6 6.8
--------- -------- -------- ----- ---
Poultry 10,252.4 9,705.6 546.8 5.6
------- -------- ------- ----- ---
Other 1,083.3 909.5 173.8 19.1
----- ------- ----- ----- ----
NET VOLUME SOLD BY SEGMENT
--------------------------
In tons Change
------
3Q15 3Q14 Volume %
---- ---- ------ ---
Total sales volume: 512,347 452,957 59,390 13.11
------------------- ------- ------- ------ -----
Poultry 403,185 368,713 34,472 9.35
------- ------- ------- ------ ----
Others 109,162 84,244 24,918 29.58
------ ------- ------ ------ -----
The Company's 3Q15 net sales totaled $11,335.6 million, $720.6 million or 6.8% more than $10,615.0 million reported in 3Q14. The increase is a result of more volume sold in all of our product lines during this quarter; partially compensate by weaker poultry prices than the same quarter of 2014.
In 3Q15, sales of our U.S. operations remained strong and represented 24.6% of our total sales; this compares with 20.1% in 3Q14.
GROSS PROFIT
------------
In millions of pesos 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Cost of sales 9,195.4 8,138.2 1,057.2 13.0
------------- ------- ------- ------- ----
Gross profit 2,140.2 2,476.8 (336.6) (13.6)
------------ ------- ------- ------ -----
Gross margin 18.9% 23.3% - -
------------ ---- ---- --- ---
In 3Q15 the cost of sales totaled $9,195.4 million, $1,057.2 million or 13.0% higher than $8,138.2 million reported in 3Q14; the increase in cost of sales is mainly attributed to more volume sold.
The gross profit was $2,140.2 million with gross margin of 18.9% in 3Q15; this profit is lower than gross profit of $2,476.8 million and gross margin of 23.3% reported in 3Q14.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ("SG&A")
----------------------------------------------------
In
millions
of
pesos
3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Total
SG&A 1,088.9 945.2 143.7 15.2
----- ------- ----- ----- ----
Total SG&A expenses in 3Q15 were $1,088.9 million, $143.7 million or 15.2% more than the $945.2 million reported 3Q14. This increase is mainly attributed to higher volume.
Total SG&A expenses as a percentage of net sales represented 9.6% in 3Q15 compared to 8.9% in 3Q14.
OTHER INCOME (EXPENSE), NET
---------------------------
In millions of pesos 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Other income
(expense), net (35.6) 0.6 (36.2) (5,635.3)
--------------- ----- --- ----- --------
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 3Q15, we recorded other expenses of $35.6 million, compared with other income of $0.6 million reported in 3Q14.
OPERATING INCOME
----------------
In millions of pesos 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Operating income 1,015.8 1,532.2 (516.5) (33.7)
---------------- ------- ------- ------ -----
Operating margin 9.0% 14.4% - -
---------------- --- ---- --- ---
Operating income in 3Q15 totaled $1,015.8 million; an operating margin of 9.0%, a decrease when compared to operating income of $1,532.2 million and a 14.4% operating margin reported in 3Q14.
The lower operating income was mainly attributed to lower gross profit, and higher SG&A's than in 3Q14.
NET FINANCIAL INCOME
--------------------
In millions of pesos 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Net Financial Income 92.4 53.1 39.3 74.0
-------------------- ---- ---- ---- ----
Financial Income 131.6 85.8 45.8 53.4
---------------- ----- ---- ---- ----
Financial Expense 39.2 32.7 6.5 19.9
----------------- ---- ---- --- ----
In 3Q15, the Company reported net financial income of $92.4 million, compared to income of $53.1 million reported in the same period of 2014, mainly due to higher financial income as we have higher levels of cash.
TAXES FOR THE PERIOD
--------------------
In millions of pesos 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Total Taxes 321.8 461.1 (139.3) (30.2)
----------- ----- ----- ------ -----
Income tax 66.4 226.7 (160.3) (70.7)
---------- ---- ----- ------ -----
Deferred income tax 255.5 234.5 21.0 9.0
------------------- ----- ----- ---- ---
Total taxes for the 3Q15 were $321.8 million, compared with total taxes of $461.1 million in the same period of 2014.
NET INCOME
----------
In millions of pesos 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Net income 786.3 1,124.2 (337.9) (30.1)
---------- ----- ------- ------ -----
Net margin 6.9% 10.6% - -
---------- --- ---- --- ---
Basic and diluted
income per share(1) 1.31 1.87 - n/a
-------------------- ---- ---- --- ---
Basic and diluted
income per ADR(2) 15.69 22.47 - n/a
------------------ ----- ----- --- ---
Weighted average
Shares
outstanding(3) 599,548 600,000 - 0
---------------- ------- ------- --- ---
(1) In pesos
(2) in pesos, an ADR equal to twelve shares
(3) In thousands of shares
The net income for 3Q15 was $786.3 million, representing a basic and diluted income of $1.31 pesos per share, compared with a higher net income of $1,124.2 million, which represented $1.87 pesos of basic and diluted income per share in 3Q14. This income represents a net margin of 6.9% and 10.6% for 3Q15 and 3Q14, respectively.
EBITDA
AND
ADJUSTED
EBITDA
---------
In
millions
of pesos 3Q15 3Q14 Change
------
$ $ $ %
--- --- --- ---
Net
controlling
interest
income 783.8 1,123.4 (339.7) (30.2)
------------ ----- ------- ------ -----
Income
tax
expense
(benefit) 321.8 461.1 (139.3) n/a
---------- ----- ----- ------ ---
Result in
associates 2.5 0.7 1.8 n/a
----------- --- --- --- ---
Net
finance
(income)
expense (92.4) (53.1) (39.3) n/a
--------- ----- ----- ----- ---
Depreciation
and
amortization 205.8 209.3 (3.5) (1.7)
------------ ----- ----- ---- ----
EBITDA 1,221.5 1,741.5 (520.0) (29.9)
------ ------- ------- ------ -----
EBITDA
Margin
(%) 10.8 16.4 (5.6) (34.3)
------- ---- ---- ---- -----
Other
expense
(income)
net 35.6 (0.6) 36.2 (5,635.3)
--------- ---- ---- ---- --------
Adjusted
EBITDA 1,257.1 1,740.8 (483.7) (27.8)
-------- ------- ------- ------ -----
Adjusted
EBITDA
Margin 11.09% 16.40% - -
-------- ----- ----- --- ---
Net
sales 11,335.6 10,615.0 720.6 6.8
------ -------- -------- ----- ---
EBITDA in 3Q15 reached $1,221.5 million, representing an EBITDA margin of 10.8%, compared to EBITDA of $1,741.6 million in 3Q14, with an EBITDA margin of 16.4%.
The adjusted EBITDA in 3Q15 reached $1,257.1 million, representing an adjusted EBITDA margin of 11.09%, compared to adjusted EBITDA of $1,740.8 million in 3Q14, with an adjusted EBITDA margin of 16.4%.
ACCUMULATED RESULTS
NET SALES BY GEOGRAPHY
----------------------
In millions of pesos 9M15 9M14 Change
------
$ $ $ %
--- --- --- ---
Net Sales 34,578.8 30,867.2 3,711.6 12.0
--------- -------- -------- ------- ----
Net sales in Mexico 26,320.4 24,696.4 1,624.0 6.6
------------------- -------- -------- ------- ---
Net sales in the U.S. 8,258.4 6,170.9 2,087.6 33.8
--------------------- ------- ------- ------- ----
NET SALES BY SEGMENT
--------------------
In millions of pesos 9M15 9M14 Change
------
$ $ $ %
--- --- --- ---
Net Sales 34,578.8 30,867.2 3,711.6 12.0
--------- -------- -------- ------- ----
Poultry 31,369.5 28,168.4 3,201.1 11.4
------- -------- -------- ------- ----
Other 3,209.3 2,698.8 510.5 18.9
----- ------- ------- ----- ----
NET VOLUME SOLD BY SEGMENT
--------------------------
In tons Change
------
9M15 9M14 Volume %
---- ---- ------ ---
Total sales volume: 1,496,199 1,345,441 150,758 11.21
------------------- --------- --------- ------- -----
Poultry 1,183,627 1,090,458 93,169 8.54
------- --------- --------- ------ ----
Others 312,572 254,983 57,589 22.59
------ ------- ------- ------ -----
During the first 9M15, net sales totaled $34,578.8 million, $3,711.6 million or 12.0% more than $30,867.2 million reported in the same period of 2014. The increase in sales is attributed to higher volume sold and prices in general.
In 9M15, sales of our U.S. operations represented 24.0% of our total sales, compared with 20.0% in 9M14.
ACCUMULATED OPERATING
RESULTS
---------------------
In millions of pesos 9M15 9M14 Change
------
$ $ $ %
--- --- --- ---
Cost of Sales 26,832.0 24,143.9 2,688.1 11.1
------------- -------- -------- ------- ----
Gross Profit 7,746.8 6,723.3 1,023.6 15.2
------------ ------- ------- ------- ----
Total SG&A 3,141.6 2,737.2 404.4 14.8
---------- ------- ------- ----- ----
Other Income (expense) (43.8) (40.8) 3.0 7.4
--------------------- ----- ----- --- ---
Operating Income 4,561.4 3,945.3 616.1 15.6
---------------- ------- ------- ----- ----
Net Financial Income 405.5 164.0 241.5 147.2
-------------------- ----- ----- ----- -----
Income Tax 1,520.4 1,236.6 283.8 22.9
---------- ------- ------- ----- ----
Net Income 3,446.5 2,872.7 573.8 20.0
---------- ------- ------- ----- ----
In 9M15 the cost of sales totaled $26,832.5 million, $2,688.1 million or 11.1% higher than $24,143.9 million reported 9M14; the increase in the cost of sales is mainly attributable to higher volume sold.
As a result, we reached a gross profit of $7,746.8 million and a gross margin of 22.4% in 9M15, a higher result than $6,723.3 million of gross profit and a margin of 21.8% reached in the same period of 2014.
Total SG&A expenses in 9M15 were $3,141.6 million, $404.4 million or 14.8% more than the $2,737.2 million reported 9M14. Total SG&A expenses as a percentage of sales represented 9.1% in 9M15 compared to 8.9% in 9M14. This increase is mainly attribute to higher volume sold and additional expenses incurred in the implementation of projects to further improve the services we provide to our markets.
In 9M15 we had other expenses of $43.8 million, compared with other expenses of $40.8 million reported in 9M14.
The operating income in 9M15 was $4,561.4 million, which represents an operating margin of 13.2%, an improvement from an operating income of $3,945.3 million and an operating margin of 12.8% in 9M14.
The net financial income in 9M15 was $405.5 million, higher when compared to net financial income of $164.0 million in 9M14.
Total taxes were $1,520.4 million as of September 30, 2015. These taxes include $1,189.6 million of income tax and $330.8 million of deferred income taxes; this figure compares to total taxes of $1,236.6 million, which includes income taxes of $709.1 and $527.5 million of deferred income taxes in 9M14.
All the above result in a net income of $3,446.5 million or 10.0% of net margin for the 9M15, which represents $5.74 pesos of earnings per share, meanwhile in the 9M14 the net income totaled $2,872.7 million, 9.3% of net margin and $4.78 pesos of net income per share.
EBITDA AND
ADJUSTED
EBITDA
----------
In millions
of pesos 9M15 9M14 Change
------
$ $ $ %
--- --- --- ---
Net
controlling
interest
profit 3,440.6 2,869.6 571.1 19.9
------------ ------- ------- ----- ----
Income tax
expense
(benefit) 1,520.4 1,236.6 283.8 22.9
---------- ------- ------- ----- ----
Result in
associates 5.9 3.1 2.8 n/a
----------- --- --- --- ---
Net finance
(income)
expense (405.5) (164.0) (241.5) n/a
----------- ------ ------ ------ ---
Depreciation
and
amortization 602.7 647.9 (45.2) (7.0)
------------- ----- ----- ----- ----
EBITDA 5,164.1 4,593.2 570.9 12.4
------ ------- ------- ----- ----
EBITDA
Margin (%) 14.9 14.9 0.05 0.4
----------- ---- ---- ---- ---
Other
expense
(income)
net 43.8 40.8 3.0 7.4
--------- ---- ---- --- ---
Adjusted
EBITDA 5,207.9 4,634.0 573.9 12.4
-------- ------- ------- ----- ----
Adjusted
EBITDA
Margin 15.06% 15.01% - -
-------- ----- ----- --- ---
Net sales 34,578.8 30,867.2 3,711.6 12.0
---------- -------- -------- ------- ----
EBITDA in 9M15 reached $5,164.1 million, representing an EBITDA margin of 14.9%, compared to EBITDA of $4,593.2 million in 9M14, with an EBITDA margin of 14.9%.
The adjusted EBITDA in 9M15 reached $5,207.9 million, representing an adjusted EBITDA margin of 15.06%, compared to adjusted EBITDA of $4,634.0 million in 9M14, with an adjusted EBITDA margin of 15.01%.
BALANCE SHEET
BALANCE SHEET
DATA
-------------
In millions of
pesos Sept, 2015 Dec. 31, 2014 Change
------
$ $ $ %
--- --- --- ---
TOTAL ASSETS 38,827.3 34,793.8 4,033.5 11.6
------------ -------- -------- ------- ----
Cash and cash
equivalents 13,817.2 11,961.6 1,855.6 15.5
------------- -------- -------- ------- ----
Accounts
receivable 2,345.2 2,976.5 - 631.3 - 21.2
----------- ------- ------- ------- ------
TOTAL
LIABILITIES 11,458.0 10,431.7 1,026.3 9.8
------------ -------- -------- ------- ---
Accounts
payable 3,420.6 3,384.3 36.3 1.1
-------- ------- ------- ---- ---
Short-term debt 1,017.2 798.0 219.2 27.5
--------------- ------- ----- ----- ----
Long-term debt 2,496.4 1,652.5 843.9 51.1
-------------- ------- ------- ----- ----
TOTAL
STOCKHOLDERS'
EQUITY 27,369.3 24,362.1 3,007.2 12.3
-------------- -------- -------- ------- ----
Capital stock 1,174.4 1,174.4 - -
------------- ------- ------- --- ---
Cash and equivalents as of September 30, 2015 totaled $13,817.2; higher by $1,855.6 million than the level we had on December 31, 2014.
Total debt as of September 30, 2015 was $3,513.6 million, compared to $2,450.5 million reported as of December 31, 2014.
Net cash as of September 30, 2015 was $10,303.7 million, compared with a net cash of $9,511.2 million as of December 31, 2014.
CAPITAL EXPENDITURES
--------------------
In millions of pesos 9M15 9M14 Change
------
$ $ $ %
--- --- --- ---
Capital Expenditures 1,154.4 826.0 328.4 39.8
-------------------- ------- ----- ----- ----
Total CAPEX for the 9M15 was $1,154.4 million and $826.0 million in 9M14, mainly allocated toward organic growth and productivity projects across all of our facilities.
STOCK INFORMATION
As of September 30, 2015
------------------------
Total Shares 600,000,000
------------ -----------
Total free float 26.75%
---------------- -----
Total shares in
treasury 0
--------------- ---
Market cap (millions of
pesos) $51,474
----------------------- -------
SHARE PRICE
-----------
Mexican Stock The New York Stock
Exchange Exchange
-------------- -------------------
Ticker Symbol:
Bachoco Ticker Symbol: IBA
In nominal pesos
per Share In U.S. Dollar per ADR
Month High Low Close High Low Close
----- ---- --- ----- ---- --- -----
Sept-15 89.73 80.27 85.79 63.49 56.77 61.10
Aug-15 79.42 72.72 79.42 57.79 50.51 56.83
Jul-15 78.03 69.23 77.00 58.69 52.72 57.09
Jun-15 73.07 70.50 70.50 56.36 54.11 54.11
May-15 73.70 68.32 73.70 58.14 54.34 57.37
Apr-15 69.69 64.38 68.32 54.40 50.87 53.79
Mar-15 67.40 63.33 63.36 53.78 48.84 49.85
Feb-15 64.00 60.20 63.26 51.58 48.97 51.02
Jan-15 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 $16.93 per USD $1.00, which corresponds to the rate at the close of September 30, 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 September 30, December 31,
------------- ------------
In million pesos 2015 2015 2014*
---------------- ---- ---- ----
TOTAL ASSETS $2,293.4 38,827.3 34,793.8
======== ======== ========
Total current assets 1,378.2 23,332.4 20,852.0
------- -------- --------
Cash and cash equivalents 816.1 13,817.2 11,961.6
Total accounts receivable 138.5 2,345.2 2,976.5
Inventories 320.4 5,424.8 4,469.5
Other current assets 103.1 1,745.2 1,444.3
Total non current assets 915.2 15,494.9 13,941.8
----- -------- --------
Net property, plant and equipment 760.5 12,875.9 12,054.8
Other non current Assets 154.7 2,619.0 1,887.0
TOTAL LIABILITIES $676.8 11,458.0 10,431.7
====== ======== ========
Total current liabilities 322.1 5,452.9 5,655.5
----- ------- -------
Notes payable to banks 60.1 1,017.2 798.0
Accounts payable 202.0 3,420.6 3,384.3
Other taxes payable and other accruals 60.0 1,015.1 1,473.2
Total long-term liabilities 354.7 6,005.1 4,776.2
----- ------- -------
Long-term debt 147.5 2,496.4 1,652.5
Other non current liabilities 6.4 107.5 90.9
Deferred income taxes 200.9 3,401.3 3,032.8
TOTAL STOCKHOLDERS' EQUITY $1,616.6 27,369.3 24,362.1
======== ======== ========
Capital stock 69.4 1,174.4 1,174.4
Commission in shares issued 24.5 414.0 399.6
Repurchased shares 46.0 778.3 101.1
Retained earnings 1,440.1 24,380.8 22,513.2
Others accounts 33.7 571.2 129.1
Non controlling interest 3.0 50.5 44.6
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,293.4 38,827.3 34,793.8
======== ======== ========
*Audited
CONSOLIDATED STATEMENT OF INCOME
Third Quarter Results, ended September 30:
-Unaudited-
U.S. Dollar
In millions pesos 2015 2015 2014
----------------- ---- ---- ----
Net sales $669.6 11,335.6 10,615.0
Cost of sales 543.1 9,195.4 8,138.2
----- ------- -------
Gross profit 126.4 2,140.2 2,476.8
SG&A 64.3 1,088.9 945.2
Other income (expenses), net (2.1) (35.6) 0.6
---- ----- ---
Operating income 60.0 1,015.8 1,532.2
Net finance income 5.5 92.4 53.1
Income tax 19.0 321.8 461.1
---- ----- -----
Net Income $70.9 786.3 1,124.2
===== ===== =======
Non-controlling interest 0.1 2.5 0.74
Net controlling interest profit 46.6 783.8 1,123.4
Basic and diluted earnings per share 0.08 1.31 1.87
Basic and diluted earnings per ADR 0.93 15.69 22.47
Weighted average Shares outstanding(1) 599,548 599,548 600,000
EBITDA Result $72.2 1,221.5 1,741.5
===== ======= =======
Gross margin 18.9% 18.9% 23.3%
Operating margin 9.0% 9.0% 14.4%
Net margin 7.0% 6.9% 10.6%
EBITDA margin 10.8% 10.8% 16.4%
(1) In thousands
CONSOLIDATED STATEMENT OF INCOME
Accumulated results, for the nine months ended September 30:
-Unaudited-
U.S. Dollar
In millions pesos 2015 2015 2014
----------------- ---- ---- ----
Net sales $2,042.5 34,578.8 30,867.2
Cost of sales 1,584.9 26,832.0 24,143.9
------- -------- --------
Gross profit 457.6 7,746.8 6,723.3
Selling, general and administrative expenses 185.6 3,141.6 2,737.2
Other income (expenses), net (2.6) (43.8) (40.8)
---- ----- -----
Operating income 269.4 4,561.4 3,945.3
Net finance income 23.9 405.5 164.0
Income tax 89.8 1,520.4 1,236.6
---- ------- -------
Net income $317.3 3,446.5 2,872.7
====== ======= =======
Non-controlling interest 0.3 5.9 3.1
Net controlling interest profit 203.9 3,440.6 2,869.6
Basic and diluted earnings per share 0.34 5.74 4.78
Basic and diluted earnings per ADR 4.07 68.9 57.40
Weighted average Shares outstanding(1) 599,508 599,508 599,940
EBITDA Result $305.0 5,164.1 4,593.2
====== ======= =======
Gross margin 22.4% 22.4% 21.8%
Operating margin 13.2% 13.2% 12.8%
Net margin 10.0% 10.0% 9.3%
EBITDA margin 14.9% 14.9% 14.9%
(1) In thousands
CONSOLIDATED STATEMENT OF CASH FLOWS
In million of pesos
-Unaudited-
U.S. Dollar September 30,
-------------
2015 2015 2014
---- ---- ----
NET MAJORITY INCOME BEFORE INCOME TAX $293.4 4,966.9 4,109.3
------ ------- -------
ITEMS THAT DO NOT REQUIRE CASH: - - -
ITEMS RELATING TO INVESTING ACTIVITIES: 17.6 297.3 462.7
---- ----- -----
Depreciation and others 35.6 602.7 647.9
Income (loss) on sale of plant and equipment 2.1 36.1 67.5
Other Items (20.2) (341.4) (252.8)
ITEMS RELATING TO FINANCING ACTIVITIES: 5.7 96.5 106.5
--- ---- -----
Interest income (expense) 5.7 96.5 106.5
Other Items - - -
NET CASH GENERATED FROM NET INCOME BEFORE TAXES 316.6 5,360.7 4,678.5
----- ------- -------
CASH GENERATED OR USED IN THE OPERATION: (163.0) (2,759.7) (1,894.2)
Decrease (increase) in accounts receivable (13.6) (230.7) (743.0)
Decrease (increase) in inventories (40.8) (690.7) (464.1)
Decrease (increase) in accounts payable (111.4) (1,885.4) (741.3)
Decrease (increase) in other liabilities 2.8 47.1 54.2
NET CASH FLOW FROM OPERATING ACTIVITIES 153.6 2,601.0 2,784.3
----- ------- -------
NET CASH FLOW FROM INVESTING ACTIVITIES (87.1) (1,475.0) (558.5)
----- -------- ------
Acquisition of property, plant and equipment (68.2) (1,154.4) (826.0)
Proceeds from sales of property plant and equipment 3.2 54.0 20.0
Other Items (22.1) (374.7) 247.5
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES 66.5 1,126.0 2,225.8
---- ------- -------
Net cash provided by financing activities: 8.5 143.9 753.9
--- ----- -----
Proceeds from loans 158.3 2,680.5 794.0
Principal payments on loans (91.9) (1,555.3) (87.6)
Dividends paid (53.1) (899.2) -
Other items (4.9) (82.1) 47.5
Net increase (decrease) in cash and equivalents 75.0 1,269.9 2,979.7
Cash and investments at the beginning of year $651.9 11,036.1 6,716.9
------ -------- -------
CASH AND INVESTMENTS AT END OF PERIOD $726.9 12,305.9 9,696.6
====== ======== =======
DERIVATIVES POSITION REPORT
Third Quarter 2015
Thousands of Mexican Pesos, as of September 30, 2015
TYPE OF FINANCIAL INSTRUMENT OBJETIVE NOTIONAL VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTS DUE BY YEAR GUARANTIES REQUIRED
---------------------------- -------- -------- ------------------------------ ---------------- ------------------- -------------------
3Q-2015 2Q-2015 3Q-2015 2Q-2015
------- ------- ------- -------
Forwards and Knock out forwards. Hedge $4,554 $16.93 $15.70 $320 $ - in 2015 The deals consider the possibility
of margin calls but not another
kind of guarantee
-------------------------------- ----- ------ ------ ------ ---- --------------- ------- -----------------------------------
Futures for corn and soybean meal Hedge $125,901 CORN CORN $784 $25,382 75.3% in 2015 and 24.7% in
2016
----- ---- ---------------------------
In USD per Bushel In USD per Bushel
month price month price
Jul-2015 $4.140
Sep-2015 $4.220
Dec-2015 $3.878 Dec-2015 $4.315
May-2016 $4.055
Dec-2016 $4.110
SOYBEAN MEAL SOYBEAN MEAL
In USD per ton In USD per ton
month price month price
Jul-2015 $359.500
Aug-2015 $351.900
Sep-2015 $348.300
Oct-2015 $308.300 Oct-2015 $345.500
Dec-2015 $309.000
Jan-2016 $308.200
March-2016 $306.700
Options of Corn Hedge $52,377 CORN CORN $ - $ - 2015
--------------- ----- ------- ----------- ---------------
In USD per Bushel In USD per Bushel
month price month price
Oct-2015 $4.1250
Options of soybean meal Hedge $ - SOYBEAN MEAL SOYBEAN MEAL $ - $246 We have none at the end of
the quarter
----------------------- ----- --------------------- ----------- ---- ---------------------------
In USD per ton In USD per ton
month price month price
Aug-2015 $351.90
Options of Heating Oil Hedge $ - Heating Oil Heating Oil $ - $ - We have none at the end of
the quarter
---------------------- ----- --------------------- ----------- --------------- ---------------------------
In USD per gallon In US cents per pound
month price month price
Aug-2015 $1.887
Sep-2015 $1.890
Oct-2015 $1.904
Nov-2015 $1.922
Dec-2015 $1.941
-------- ------
-The total financial instruments not exceed 5% of total assets as of September 30, 2015.
-The notional value represents the net position as of September 30, 2015 at the exchange rate of Ps.16.93 per one dollar.
-A negative value means an unfavorable effect for the Company.
PROBABLE SCENARIO
CONFERENCE CALL INFORMATION
Third Quarter 2015
Thousands of Mexican Pesos, as of September 30, 2015
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%
---- --- --- ---- --- ---
Knock Out Forwards (1) $320 $16.51 $17.35 $17.78 Direct $2,790 $434 $548
--------------------- ---- ------ ------ ------ ------ ------ ---- ----
-5% 5% 10% -5% 5% 10%
Futures of Corn: (2) $784 $3.684 $4.071 $4.265 The effect will materialize as
the inventory is consumed -$ 5,511 $7,079 $13,374
---- ------------------------------ ---------- ------ -------
Futures of Soybean Meal: (2) $292.9 $323.7 $339.1
--------------------------- ------ ------ ------
Options for Corn $ - $3.919 $4.331 $4.538 $ - $ - $ -
------------------------ ------ ------ ------ ------------ ------------- ------------
Options of Soybean Meal $ - $ - $ - $ - $ - $ - $ -
----------------------- ------------------------ ---------------- ---------------- ---------------- ------------ ------------- ------------
Options of Heating Oil $ - $ - $ - $ - $ - $ - $ -
---------------------- ------------------------ ---------------- ---------------- ---------------- ------------ ------------- ------------
NOTES
(1) The reference value is the exchange rate of Ps. $16.93 per USD as of Sept 30, 2015.
(2) The reference values are; the future of corn for Dec 2015, $3.8775 USD/bushel and the future of soybean meal for Oct 2015, $308.30 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.
The Company will host its third quarter 2015 earnings call, on Friday, October 23rd, 2015. 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=UfGitkBNGvdkpq
Confirmation Number: 40913220
Visit the following link to access the webcast:
http://edge.media-server.com/m/p/wd2j86ts
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.
Contact Information:
Maria Guadalupe Jaquez, IR
maria.jaquez@bachoco.net
T. +52(461)618 3555
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/industrias-bachoco-announces-third-quarter-2015-results-300164788.html
SOURCE Industrias Bachoco, S.A.B. de C.V.
