INDUSTRIAS BACHOCO, S.A.B. DE C.V. CELAYA, Mexico, April 23, 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 first quarter ("1Q15") ended March 31, 2015. All figures have been prepared in accordance with International Financial Reporting Standard ("IFRS"), and are presented in nominal million Mexican Pesos ("$"), except earnings per share.
HIGHLIGHTS- 2015 vs. 2014
-- Net sales increased 18.3% in 1Q15.
-- EBITDA margin was 16.3% in 1Q15 vs 11.5% in 1Q14.
-- Earnings per basic and diluted share were $2.11.
CEO COMMENTS
Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: "Positive external conditions presented in past quarters continued into the first quarter of this year; demand for chicken and egg products were strong during the quarter, while supply of these products remained stable.
On the internal side, we continued working on our efficiency and productivity efforts, while taking advantage of projects we implemented for getting closer to our customers.
All that led the Company to post positive results in the first quarter and above those reached in 1Q14.
In particular, it is worthwhile to mention the improvement in results reached by our U.S. operation during this quarter.
Our financial structure continued strengthening as we reached a net cash level of $10,781 million, which will allow us to support our growth plans.
Even though we have posted strong results in the past quarters, we are aware that the poultry industry is a volatile industry; therefore we will remain focused on continual improvements and efficiencies across all our processes, and closely monitor those external factors we cannot control."
RECENT DEVELOPMENTS.
At its 2015 annual shareholders meeting, the Company announced the paying of cash dividends in the amount of $1.5 pesos per share (or $18 pesos per ADR).
Executive Summary
The following financial information is expressed in millions of nominal pesos, except for amounts per share and per ADR, with comparative figures for the same periods of 2014.
QUARTERLY RESULTS
NET SALES BY GEOGRAPHY
----------------------
In millions of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Net sales 11,406.0 9,643.5 1,762.5 18.3
--------- -------- ------- ------- ----
Net sales in Mexico 8,612.7 7,746.9 865.8 11.2
------------------- ------- ------- ----- ----
Net sales in the U.S. 2,793.3 1,896.6 896.7 47.3
--------------------- ------- ------- ----- ----
NET SALES BY SEGMENT
--------------------
In millions of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Net sales 11,406.0 9,643.5 1,762.5 18.3
--------- -------- ------- ------- ----
Poultry 10,445.3 8,790.2 1,655.1 18.8
------- -------- ------- ------- ----
Other 960.7 853.3 107.4 12.6
----- ----- ----- ----- ----
NET VOLUME SOLD BY SEGMENT
--------------------------
In tons Change
------
1Q15 1Q14 Volume %
---- ---- ------ ---
Total sales volume: 484,497 441,921 42,577 9.63
------------------- ------- ------- ------ ----
Poultry 387,692 358,938 28,754 8.01
------- ------- ------- ------ ----
Others 96,805 82,982 13,823 16.66
------ ------ ------ ------ -----
In 1Q15, the Company's net sales totaled $11,406.0 million, $1,762.5 million or 18.3% more than $9,643.5 million reported in 1Q14. This is as a result of more volume sold and higher prices in our main product lines during the quarter.
In 1Q15, sales of our U.S. operations were strong and in line with our Mexico operation; it represented 24.5% of our total sales compared to 19.7% in 1Q14. About 15.0% of this increase is due to a change in the Mexican peso-U.S. dollar exchange rate in 1Q15 as compared to 1Q14.
GROSS PROFIT
------------
In millions of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Cost of sales 8,722.4 7,854.1 868.3 11.1
------------- ------- ------- ----- ----
Gross profit 2,683.6 1,789.3 894.2 50.0
------------ ------- ------- ----- ----
Gross margin 23.5% 18.6% - -
------------ ---- ---- --- ---
The cost of sales totaled $8,722.4 million, representing $868.3 million or 11.1% higher than $7,854.1 million reported in the same period of 2014, mainly due to the increase in volume sold.
The Company's gross profit in 1Q15 was $2,683.6 million, with a gross margin of 23.5%; this result is larger than the gross profit of $1,789.3 million and gross margin of 18.6% reported in 1Q14.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ("SG&A")
----------------------------------------------------
In
millions
of
pesos
1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Total
SG&A 1,008.3 871.4 136.9 15.7
----- ------- ----- ----- ----
Total SG&A expenses in 1Q15 were $1,008.3 million, $136.9 million or 15.7% more than the $871.4 million reported 1Q14. This increase is mainly attributed to higher sales and distribution expenses as our volume sold increased. Total SG&A expenses, as a percentage of net sales, represent 8.8% in 1Q15, a reduction when compared with 9.0% in the same quarter of 2014.
OTHER INCOME (EXPENSE), NET
---------------------------
In millions of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Other income (expense), net - 13.2 - 35.0 21.8 - 62.2
--------------------------- ------ ------ ---- ------
Other income or other expenses includes the sale of unused assets; we register such sales as expenses when the sales price is below the book value of those assets.
In 1Q15, we had other expenses of $13.2 million, compared with other expenses of $35.0 million reported in 1Q14.
OPERATING INCOME
----------------
In millions of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Operating income 1,662.1 882.9 779.2 88.2
---------------- ------- ----- ----- ----
Operating margin 14.6% 9.2% - -
---------------- ---- --- --- ---
Operating income in 1Q15 totaled $1,662.1 million, or an operating margin of 14.6%, higher than an operating income of $882.9 million and a 9.2% in operating margin reported in 1Q14. The increase in operating income is mainly attributed to strong gross income in 1Q15 and stable expenses.
NET FINANCIAL INCOME
--------------------
In millions of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Net Financial Income 181.0 50.8 130.2 256.5
-------------------- ----- ---- ----- -----
Financial Income 208.7 11.4 197.3 1,728.9
---------------- ----- ---- ----- -------
Financial Expense 27.7 39.4 - 11.7 - 29.6
----------------- ---- ---- ------ ------
In 1Q15, the Company reported net financial income of $181.0 million, compared to $50.8 million reported in the same period of 2014.
TAXES FOR THE PERIOD
--------------------
In millions of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Total Taxes 577.4 274.1 303.3 110.7
----------- ----- ----- ----- -----
Income tax 542.7 128.4 414.4 322.8
---------- ----- ----- ----- -----
Deferred income tax 34.7 145.7 - 111.1 - 76.2
------------------- ---- ----- ------- ------
Total taxes for the 1Q15 were $577.4 million, compared to $274.1 million in the same period of 2014. The variation is mainly attributed to higher operating results.
NET INCOME
----------
In millions of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Net income 1,265.7 659.6 606.1 91.9
---------- ------- ----- ----- ----
Net margin 11.1% 6.8% - -
---------- ---- --- --- ---
Non-Controlling
Interest income 2.4 0.1 2.3 n/a
---------------- --- --- --- ---
Net controlling
interest income 1,263.3 659.5 603.8 n/a
---------------- ------- ----- ----- ---
Basic and diluted
income per share(1) 2.11 1.10 - n/a
-------------------- ---- ---- --- ---
Basic and diluted
income per ADR(2) 25.29 13.19 - n/a
------------------ ----- ----- --- ---
Weighted average Shares
outstanding(3) 599,535 600,000 - 0
----------------------- ------- ------- --- ---
(1) In pesos
(2) in pesos, an ADR equal to twelve shares
(3) In thousands of shares
The net income for 1Q15 was $1,265.7 million, representing a basic and diluted income of $2.11 pesos per share; this result compares to net income of $659.6 million, which represented a net income $1.10 pesos of basic and diluted income per share, in 1Q14. This is attributed to a strong performance in our operations. Net margin for the 1Q15 was 11.1% compared to 6.8% reported in 1Q14.
EBITDA
AND
ADJUSTED
EBITDA
---------
In
millions
of pesos 1Q15 1Q14 Change
------
$ $ $ %
--- --- --- ---
Net
controlling
interest
income 1,263.3 659.7 603.7 91.5
------------ ------- ----- ----- ----
Income
tax
expense
(benefit) 577.4 274.1 303.3 n/a
---------- ----- ----- ----- ---
Result in
associates 2.4 - 0.1 2.4 n/a
----------- --- ----- --- ---
Net
finance
(income)
expense - 181.0 - 50.8 - 130.2 n/a
--------- ------- ------ ------- ---
Depreciation
and
amortization 198.6 223.1 - 24.5 - 11.0
------------ ----- ----- ------ ------
EBITDA 1,860.7 1,106.0 754.7 68.2
------ ------- ------- ----- ----
EBITDA
Margin
(%) 16.3 11.5 4.8 42.2
------- ---- ---- --- ----
Other
expense
(income)
net 13.2 35.0 - 21.8 - 62.2
--------- ---- ---- ------ ------
Adjusted
EBITDA 1,873.9 1,141.0 732.9 64.2
-------- ------- ------- ----- ----
Adjusted
EBITDA
Margin 16.43% 11.83% - -
-------- ----- ----- --- ---
Net
sales 11,406.0 9,643.4 1,762.6 18.3
------ -------- ------- ------- ----
EBITDA in 1Q15 reached $1,860.7 million, representing an EBITDA margin of 16.3%, compared to $1,106 million EBITDA in 1Q14 and 11.5% EBITDA margin.
The adjusted EBITDA in 1Q15 was $1,873.9 million, representing an adjusted EBITDA margin of 16.43%, compared to adjusted EBITDA of $1,141.0 million in 1Q14, with an adjusted EBITDA margin of 11.83%.
BALANCE SHEET DATA
BALANCE SHEET
DATA
-------------
In millions
of pesos Mar 31, 2015 Dec. 31, 2014 Change
------
$ $ $ %
--- --- --- ---
TOTAL ASSETS 36,098.5 34,793.8 1,304.7 3.7
------------ -------- -------- ------- ---
Cash and cash
equivalents 13,625.2 11,961.6 1,663.5 13.9
------------- -------- -------- ------- ----
Accounts
receivable 2,153.1 2,976.5 - 823.5 - 27.7
----------- ------- ------- ------- ------
TOTAL
LIABILITIES 10,403.0 10,431.7 - 28.7 - 0.3
------------ -------- -------- ------ -----
Accounts
payable 3,139.8 3,384.3 - 244.5 - 7.2
-------- ------- ------- ------- -----
Short-term
debt 795.3 798.0 - 2.7 - 0.3
---------- ----- ----- ----- -----
Long-term
debt 2,048.6 1,652.5 396.1 24.0
--------- ------- ------- ----- ----
TOTAL
STOCKHOLDERS'
EQUITY 25,695.5 24,362.1 1,333.5 5.5
-------------- -------- -------- ------- ---
Capital stock 1,173.9 1,174.4 - 0.6 - 0.0
------------- ------- ------- ----- -----
Cash and equivalents as of March 31, 2015 totaled $13,625.2 million, up $1,663.5 million or 13.9% more than $11,961.6 million as of December 31, 2014.
Total debt as of March 31, 2015 totaled $2,843.9 million, compared to $2,450.5 million reported as of December 31, 2014, mainly as a result of higher long-term bank debt.
Net cash as of March 31, 2015 was $10,781.3 million, compared to net cash of $9,511.2 million as of December 31, 2014.
CAPEX
CAPITAL EXPENDITURES
--------------------
In millions of pesos 2015 2014 Change
------
$ $ $ %
--- --- --- ---
Capital Expenditures 254.5 290.4 - 35.9 - 12.4
-------------------- ----- ----- ------ ------
Total CAPEX for the 1Q15 was $254.5 million mainly allocated toward organic growth in Mexico, as well as productivity projects across all of our facilities.
STOCK INFORMATION
STOCK INFORMATION
-----------------
As of March 31, 2015
--------------------
Total Shares 600,000,000
------------ -----------
Total free float 26.75%
---------------- -----
Total shares in treasury as of
March 31, 2015 558,365
------------------------------ -------
Market cap (millions of pesos) $38,016
----------------------- -------
SHARE PRICES
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 Volume High Low Average Close Volume
----- ---- --- ------- ----- ------ ---- --- ------- ----- ------
Mar-15 67.40 63.33 64.87 63.36 5,996,800 53.78 48.84 51.12 49.85 204,663
------ ----- ----- ----- ----- --------- ----- ----- ----- ----- -------
Feb-15 64.00 60.20 63.03 63.26 6,568,221 51.58 48.97 50.67 51.02 209,623
------ ----- ----- ----- ----- --------- ----- ----- ----- ----- -------
Jan-15 54.76 49.75 51.38 49.88 10,060,822 51.55 47.97 49.60 48.84 332,700
------ ----- ----- ----- ----- ---------- ----- ----- ----- ----- -------
Dec-14 64.27 60.59 62.44 61.94 6,071,300 54.76 49.75 51.38 49.88 429,500
------ ----- ----- ----- ----- --------- ----- ----- ----- ----- -------
Nov-14 68.22 64.74 66.36 65.00 4,666,300 60.32 56.58 58.45 56.58 347,800
------ ----- ----- ----- ----- --------- ----- ----- ----- ----- -------
Oct-14 68.50 64.87 66.24 68.50 10,722,300 61.15 57.35 58.88 61.15 511,600
------ ----- ----- ----- ----- ---------- ----- ----- ----- ----- -------
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 Raul Ochoa rmochoa@interacciones.com
JPMORGAN Pedro Leduc pedro.a.leduc@jpmorgan.com
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $15.26 per USD$1.0, which corresponds to the rate at the close of March 31, 2015, according to Mexico's National Bank.
-- Consolidated Statement of Financial Position
-- Consolidated Statement of Income
-- Consolidated Statement of Cash Flows
-- Derivatives Position Report
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
-Unaudited-
In U.S. Dollar March 31, December 31,
--------- ------------
In million pesos 2015 2015 2014*
---------------- ---- ---- ----
TOTAL ASSETS $2,365.6 36,098.5 34,793.8
======== ======== ========
Total current assets 1,428.1 21,793.4 20,852.0
------- -------- --------
Cash and cash equivalents 892.9 13,625.2 11,961.6
Total accounts receivable 141.1 2,153.1 2,976.5
Inventories 273.1 4,168.1 4,469.5
Other current assets 121.0 1,847.1 1,444.3
Total non current assets 937.4 14,305.1 13,941.8
----- -------- --------
Net property, plant and
equipment 798.0 12,177.7 12,054.8
Other non current Assets 139.4 2,127.4 1,887.0
TOTAL LIABILITIES $681.7 10,403.0 10,431.7
====== ======== ========
Total current liabilities 339.3 5,178.0 5,655.5
----- ------- -------
Notes payable to banks 52.1 795.3 798.0
Accounts payable 205.8 3,139.8 3,384.3
Other taxes payable and
other accruals 81.4 1,242.8 1,473.2
Total long-term liabilities 342.4 5,225.0 4,776.2
----- ------- -------
Long-term debt 134.2 2,048.6 1,652.5
Other non current
liabilities 6.3 95.4 90.9
Deferred income taxes 201.9 3,081.0 3,032.8
TOTAL STOCKHOLDERS' EQUITY $1,683.8 25,695.5 24,362.1
======== ======== ========
Capital stock 76.9 1,173.9 1,174.4
Commission in shares issued 26.2 399.6 399.6
Repurchased shares 4.5 68.6 101.1
Retained earnings 1,558.3 23,779.9 22,513.2
Others accounts 14.8 226.5 129.1
Non controlling interest 3.1 47.0 44.6
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $2,365.6 36,098.5 34,793.8
======== ======== ========
*Audited
CONSOLIDATED STATEMENT OF INCOME
First Quarter
Results, ended
March 31:
-Unaudited-
U.S. Dollar
In millions pesos 2015 2015 2014 Change
----------------- ---- ---- ---- ------
Net sales $747.4 11,406.0 9,643.4 18.3%
Cost of sales 571.6 8,722.4 7,854.1 11.1%
----- ------- -------
Gross profit 175.9 2,683.6 1,789.3 50.0%
SG&A 66.1 1,008.3 871.4 15.7%
Other income
(expenses), net - 0.9 -13.2 (35.0) -62.2%
----- ----- -----
Operating income 108.9 1,662.1 882.9 88.2%
Net finance
income 11.9 181.0 50.8 256.5%
Income tax 37.8 577.4 274.1 110.7%
---- ----- -----
Net Income $132.6 1,265.7 659.7 n/a
====== ======= =====
Non-controlling
interest 0.2 2.4 0.06 n/a
Net controlling
interest profit 83.1 1,263.3 659.7 n/a
Basic and diluted
earnings per
share 0.14 2.1 1.10 n/a
Basic and diluted
earnings per ADR 1.66 25.3 13.19 n/a
Weighted average
Shares
outstanding(1) 599,535 599,535 600,000 -0.1%
EBITDA Result $121.9 1,860.7 1,106.0 68.2%
====== ======= =======
Gross margin 23.5% 23.5% 18.6%
Operating margin 14.6% 14.6% 9.2%
Net margin 11.1% 11.1% 6.8%
EBITDA margin 16.3% 16.3% 11.5%
1 In thousands
CONSOLIDATED STATEMENT OF CASH FLOWS
In million of
pesos
-Unaudited-
U.S. Dollar March 31,
---------
2015 2015 2014
---- ---- ----
NET MAJORITY
INCOME BEFORE
INCOME TAX $120.8 1,843.1 933.8
------ ------- -----
ITEMS THAT DO
NOT REQUIRE
CASH: - - -
ITEMS RELATING
TO INVESTING
ACTIVITIES: 15.4 234.3 250.2
---- ----- -----
Depreciation and
others 13.1 199.4 223.1
Income (loss) on
sale of plant
and equipment 2.3 34.8 27.2
Other Items - - -
ITEMS RELATING
TO FINANCING
ACTIVITIES: 1.7 25.3 26.1
--- ---- ----
Interest income
(expense) 1.8 27.7 26.1
Other Items (0.2) (2.4) -
NET CASH
GENERATED FROM
NET INCOME
BEFORE TAXES 137.8 2,102.7 1,210.1
----- ------- -------
CASH GENERATED
OR USED IN THE
OPERATION: 7.3 110.7 (382.9)
Decrease
(increase) in
accounts
receivable 32.0 488.7 (141.5)
Decrease
(increase) in
inventories 20.6 314.5 27.1
Decrease
(increase) in
accounts
payable (45.0) (687.0) (330.0)
Decrease
(increase) in
other
liabilities (0.4) (5.6) 61.6
NET CASH FLOW
FROM OPERATING
ACTIVITIES 145.0 2,213.4 827.2
----- ------- -----
NET CASH FLOW
FROM INVESTING
ACTIVITIES (18.7) (286.0) (679.3)
----- ------ ------
Acquisition of
property, plant
and equipment (16.7) (254.5) (290.4)
Proceeds from
sales of
property plant
and equipment 1.3 20.2 5.6
Other Items (3.4) (51.6) (394.5)
CASH FLOW
SURPLUS
(REQUIREMENTS
OF) TO BE USED
IN FINANCING
ACTIVITIES 126.3 1,927.4 147.9
----- ------- -----
Net cash
provided by
financing
activities: 22.3 339.6 191.2
---- ----- -----
Proceeds from
loans 71.2 1,085.8 442.0
Principal
payments on
loans (45.7) (697.6) (59.9)
Dividends paid 0.4 6.8 -
Other items (3.6) (55.4) (190.9)
Net increase
(decrease) in
cash and
equivalents 105.4 1,608.1 126.7
Cash and
investments at
the beginning
of year $723.2 11,036.1 6,716.9
------ -------- -------
CASH AND
INVESTMENTS AT
END OF PERIOD $828.6 12,644.2 6,843.6
====== ======== =======
DERIVATIVES POSITION REPORT
First Quarter 2015
Thousands of Mexican Pesos, as of March 31, 2015
TYPE OF FINANCIAL OBJECTIVE NOTIONAL VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTS DUE GUARANTIES REQUIRED
INSTRUMENT BY YEAR
---------- -------
1Q-2015 4Q-2014 1Q-2015 4Q-2014
------- ------- ------- -------
Knock out forwards. Hedge and negotiation $305,200 $15.26 $14.75 $8,248 $ - 0 The deals consider the possibility
of margin calls but not another
kind of guarantee
------------------- --------------------- -------- ------ ------ ------ ------------- --- ----------------------------------
Futures for corn and soybean meal Hedge $56,181 CORN CORN -$ 771 -$ 2,087 in 2015
--------------------------------- ----- ------- ----------- ------------ -------
In USD per Bushel In USD per Bushel
month price month price
May-2015 $3.763 Mar-2015 $3.970
Jul-2015 $3.843
Sep-2015 $3.920 Sep-2015 $4.153
Dec-2015 $4.008 Dec-2015 $4.210
SOYBEAN MEAL SOYBEAN MEAL
In USD per ton In USD per ton
month price month price
Mar-2015 $4.0
May-2015 $326.8
Sep-2015 $4.2
Dec-2015 $4.2
-------- ----
Options of Corn Hedge and negotiation -$ 92 CORN CORN -$ 92 $ - 2015
--------------- --------------------- --------------------- ------------ ------------- ----
In USD per Bushel In USD per Bushel
month price month price
Mar-2015 $3.97
Jul-2015 $3.84 Jul-2015 $4.13
Sep-2015 $3.92 Sep-2015 $4.15
Dec-2015 $4.0075 Dec-2015 $4.21
-------- ------- -------- -----
Options of soybean meal Hedge and negotiation $55 SOYBEAN MEAL SOYBEAN MEAL $55 -$ 494 2015
----------------------- --------------------- --- --- ------------- ----
In USD per ton In USD per ton
month price month price
May-2015 $326.80 Ene-2015 $364.60
Jul-2015 $325.20 Mar-2015 $347.60
Ago-2015 $323.70
-------- -------
Options of Heating Oil Hedge and negotiation $216 Heating Oil Heating Oil $216 $ - 2015
---------------------- --------------------- ---- ---- ------------- ----
In USD per gallon In US cents per pound
month price month price
Jul-2015 $1.73
Ago-2015 $1.75
Sep-2015 $1.77
Oct-2015 $1.79
Nov-2015 $1.81
-------- -----
NOTES
-The total financial instruments not exceed 5% of total assets as of march 31, 2015.
-the notional value represents the net position as of march 31, 2015 at the exchange rate of ps.15.26 per one dollar.
-a negative value means an unfavorable effect for the company.
First Quarter 2015
Thousands of Mexican Pesos, as of March 31, 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%
---- --- --- ---- --- ---
Forwards and Knock Out Forwards (1) $8,248 $14.88 $15.64 $16.02 Direct $618 $ - $ -
---------------------------------- ------ ------ ------ ------ ------ ---- ---------- ----------
-5% 5% 10% -5% 5% 10%
Futures of Corn: (2) -$ 771 $3.6 $4.0 $4.1 The effect will materialize as the
inventory is consumed -$ 3,577 $2,034 $4,840
----------------------- ---------------------------------- ---------- ------ ------
Futures of Soybean Meal: (2) $310.5 $343.1 $359.5
Futures for Soy Oil (2) $1.6 $1.8 $1.9
---------------------- ---- ---- ----
Options for Corn -$ 92 $3.7 $4.0 $4.2 -$ 297 $113 $319
---------------- ------------------------ ---- ---- ---- ----------- ---- ----
Options of Soybean Meal $ - $310.5 $343.1 $359.5 -$ 268 $377 $700
----------------------- ------------------------ ------ ------ ------ ----------- ---- ----
Options of Heating Oil $1 $1.6 $1.8 $1.9 $901 $ - $ -
---------------------- --- ---- ---- ---- ---- ---------- ----------
NOTES
(1) the reference value is the exchange rate of ps. $15.26 per USD as of march 31, 2015.
(2) the reference values are; the future of corn for may 2015, $3.7625 USD/bushel, the future of soybean meal for may 2015, $326.8 USD/ton, and the future for heating oil for July 2015, $1.73 USD per gallon.
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.
First Quarter 2015
Thousands of Mexican Pesos, as of March 31, 2015 STRESS SCENARIO
TYPE OF FINANCIAL REASONABLE VALUE VALUE OF THE RELATED COMMODITY EFFECT ON THE EFFECT ON THE CASH FLOW
INSTRUMENT INCOME
STATEMENT
--- --- ---
Reference Value
---------------
-50% -25% 25% 50% -50% -25% 25% 50%
--- --- --- --- --- --- --- ---
Knock Out Forwards $8,248 $7.63 $11.45 $19.08 $22.89 Direct -$144,352 -$68,052 $0 $0
------------------ ------ ----- ------ ------ ------ ------ --------- -------- --- ---
CONFERENCE CALL INFORMATION
The Company will host its first quarter 2015 earnings call, on Friday, April 24, 2015. 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=A&o=UHvgwUadtyIiFr
Confirmation Number: 39478078
Visit the following link to access the webcast: http://edge.media-server.com/m/p/qecg3wk5
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 AA(MEX), representing high credit quality by Fitch Mexico, S.A. de C.V., and HR AA+ which signals that the Company and the offering both have high 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
Daniel Salazar
inversionistas@bachoco.net
+52(461)618 3555
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bachoco-announces-first-quarter-2015-results-300071161.html
SOURCE Industrias Bachoco, S.A.B. de C.V.
