CELAYA, Gto., Mexico, Oct. 25 /PRNewswire-FirstCall/ -- Industrias Bachoco S.A.B. de C.V. ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco B), Mexico's leading producer and processor of poultry products, today announced its unaudited results for the quarter ended September 30, 2007. All figures have been prepared in accordance with Mexican GAAP and are stated in constant Mexican pesos as of September 30, 2007.
Highlights: -- Bachoco recorded sales of Ps. 4,623.1 during the quarter, 24.5% above the Ps. 3,711.8 million reached in the same 2006 period -- Operating margin for the quarter of 10.7%, compares to 6.9% in 3Q06 -- EBITDA, of Ps. 635.6 million, was 62.3% above the Ps. 391.5 million of 3Q06 -- Bachoco achieved an EPS of Ps. 0.61 (US$0.67 per ADS) for the quarter compared to an EPS of Ps. 0.39 (US$0.43 per ADS) for the same period last year CEO's Comments:
Cristobal Mondragon, Bachoco's CEO, stated, "Favorable market conditions in the quarter fueled the growth in sales and volume.
"We will continue with our efforts to expand our presence and commercial distribution channels in all Mexico to serve every costumer looking for Bachoco products.
"Our financials will remain strong and our CAPEX will continue to be entirely financed by internal resources."
THIRD QUARTER 2007 RESULTS Net Sales
Net sales for the quarter reached Ps. 4,623.1 million, 24.5% above the Ps. 3,711.8 million reported in 3Q06. This increase was mainly driven by the 29.0% increase in chicken sales, 13.5% in table eggs sales, 34.9% in swine sales, and a 0.3% increase in balanced feed sales.
Net Sales by Product Line 3Q07 3Q06 % % CHICKEN 79.1 76.3 EGGS 9.1 10.0 BALANCED FEED 7.7 9.6 SWINE AND OTHER LINES 4.1 4.1 TOTAL COMPANY 100.0 100.0 Operating Results
Bachoco's third quarter gross margin of 22.9% was higher than 20.5% in 3Q06. The increase is mainly attributed to the 24.5% sales increase, which partly contributed to the 20.8% increase in the cost of sales. However, the Company's operating margin of 10.7% compares favorably to the 6.9% margin of the same 2006 quarter. EBITDA during the quarter totaled Ps. 635.6 million.
Taxes Taxes recognized by the Company during the quarter were Ps. 106.7 million. Net Income
Net income for 3Q07 was Ps. 364.5 million, or Ps. 0.61 per share (US$0.67 per ADS), compared to net income of Ps. 235.8 million, or Ps. 0.39 per share (US$0.41 per ADS) reported in the same period of 2006.
RESULTS BY BUSINESS SEGMENT Chicken
Chicken sales rose 29.0% during 3Q07 as a result of a 10.3% volume and a 16.9% price increase. The chicken market remains in good shape and had a positive impact in pricing; the increase in volume resulted from added capacity driven in part by the new operations.
Table Eggs
Volume sales of table eggs grew 13.5%, with volumes increasing 3.4% and a price increase of 9.8% when compared to same last year's quarter.
Balanced Feed
Sales of balanced feed increased slightly during this quarter by 0.3% when compared to 3Q06; however, pricing rose by 16.8% and volume decreased by 14.1%.
Swine and Other Lines
Sales of swine and other lines increased 34.9% in the quarter. This increase was mainly the result of a 34.1% increase in volume of swine.
NINE MONTHS 2007 Net Sales
Net sales for the first nine months were 19.4% higher at Ps. 13,403.0 million, when compared to Ps. 11,221.9 million reported in the same 2006 period. Sales rose mainly as chicken sales grew 20.7%, table eggs increased 20.8%, balanced feed rose 6.5% and swine and other lines increased 21.5%.
Net Sales by Product Line Nine Months 2007 Nine Months 2006 % % CHICKEN 78.2 77.4 EGGS 9.3 9.2 BALANCED FEED 8.1 9.1 SWINE AND OTHER LINES 4.4 4.3 TOTAL COMPANY 100.0% 100.0% Operating Results
Bachoco's gross margin reached 21.7% during the first nine months of the year, well above the 21.0% gross margin reported in the same 2006 period. The increase was primarily due to a 19.4% increase in sales, which was partially offset by an 18.5% increase in the cost of sales. Bachoco's operating margin of 9.5% compares favorably to the 7.6% operating margin reached in the same 2006 period. EBITDA during this period reached Ps. 1,686.0 million.
Taxes
The taxes recognized by the Company during the year were Ps. 316.1 million.
Net Income
Net income for the year ended September 30, 2007, was Ps. 1,081.6 million. Earnings per share reached Ps. 1.80, (U.S. $1.98 per ADS), compared to Ps. 1.33 (U.S. $1.46 per ADS) reported for the same 2006 period.
Balance Sheet
The Company maintained a healthy financial structure. Liquidity remained solid with cash and cash equivalents at Ps. 3,446.2 million as of September 30, 2007. Debt was Ps. 116.7 million as of September 30, 2007.
Capex during the nine-month period was Ps. 471.8 million. Company Description
Industrias Bachoco S.A.B. de C.V. (also referred to in this report as Bachoco or the Company) was founded by the Robinson Bours family in 1952, in the state of Sonora. Since then, it has grown into the largest poultry company in Mexico, with over 700 production and distribution facilities currently organized in seven complexes throughout the country. Bachoco's main business lines are chicken, eggs, and swine, and the Company is also an important player in the balanced feed industry in Mexico. The Company's headquarters are based in Celaya, Guanajuato, located in Mexico's central region.
Industrias Bachoco made an initial public stock offering in September 1997. Its securities are listed and traded on the Mexican Stock Exchange (Bolsa Mexicana de Valores or BMV) under the ticker symbol Bachoco B, and on the New York Stock Exchange (NYSE) under the ticker symbol IBA.
The Company posted net sales of U.S. $1.39 billion for 2006, divided among the Company's four main product lines as follows: 77.6% chicken, 9.2% table eggs, 9.0% balanced feed, and 4.2% swine and other lines.
For more information, please visit Bachoco's website at http://www.bachoco.com.mx/.
This press release contains certain forward-looking statements that are subject to a number of uncertainties, assumptions and risk factors that may influence its accuracy. Actual results may differ. Factors that could cause these projections to differ, include, but are not limited to: supply and demand, industry competition, environmental risks, economic and financial market conditions in Mexico and operating cost estimates. For more information regarding Bachoco and its outlook, please contact the Company's Investor Relations Department.
INDUSTRIAS BACHOCO, S.A.B. DE C.V. AND SUBSIDIARIES Condensed Consolidated Statements of Income (millions of constant pesos as of September 30, 2007, and millions of U.S. dollars, except per share data) Third Quarter Sep '30 Sep '30 Sep '30 2007(1) 2007 2006 Net Sales US 423 Ps 4,623 Ps 3,712 Cost of Sales 326 3,563 2,950 Gross Profit 97 1,060 762 Selling, general and administrative expenses 52 567 504 Operating Income 45 493 257 Comprehensive Financing Cost (income) Interest Expense (Income) (4) (38) (48) Foreign Exchange Loss (gain) (0) (5) 9 Gain from Monetary Position 3 34 35 Total Comprehensive Financing Cost (income) (1) (10) (4) Other Income Net (3) (31) 37 Income before Provisions for Income Tax, Employee Profit Sharing and Minoritary Interest 43 471 298 Provisions for: Income Tax, Asset Tax (5) (54) (19) Deferred Income Taxes (5) (53) (42) Income before Minority Interest 33 365 237 Minority Interest (0) (0) (1) Net Income 33 365 236 - - - Weighted Average Shares Outstanding (Thousand) 600,000 600,000 599,704 Net Income per Share 0.67 0.61 0.39 Dividend per Share - - - Nine Months Ended Sep '30 Sep '30 Sep '30 2007(1) 2007 2006 Net Sales US 1,226 Ps 13,403 Ps 11,222 Cost of Sales 960 10,498 8,860 Gross Profit 266 2,905 2,361 Selling, general and administrative expenses 150 1,637 1,507 Operating Income 116 1,268 854 Comprehensive Financing Cost (income) Interest Expense (Income) (14) (153) (123) Foreign Exchange Loss (gain) 0 1 (50) Gain from Monetary Position 4 45 48 Total Comprehensive Financing Cost (income) (10) (107) (125) Other Income Net 2 25 22 Income before Provisions for Income Tax, Employee Profit Sharing and Minoritary Interest 128 1,400 1,001 Provisions for: Income Tax, Asset Tax (11) (126) (167) Deferred Income Taxes (17) (191) (32) Income before Minority Interest 99 1,084 801 Minority Interest (0) (2) (2) Net Income 99 1,082 800 - - - Weighted Average Shares Outstanding (Thousand) 600,000 600,000 599,427 Net Income per Share 1.98 1.80 1.33 Dividend per Share 0.05 0.60 0.62
(1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 10.9315 per U.S. dollar, the noon buying rate at September 28, 2007.
INDUSTRIAS BACHOCO, S.A.B. DE C.V. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (millions of constant pesos as of September 30, 2007, and millions of U.S. dollars) Sep '30 Sep '30 Dec '31 2007(1) 2007 2006 ASSETS Current Assets: Cash and Cash Equivalents US 315 Ps 3,446 Ps 3,535 Accounts Receivable less Allowance for Doubtful Accounts 54 585 532 Inventories 378 4,133 2,792 Other Current Assets 45 492 384 Total Current Assets 792 8,656 7,244 Net Property, Plant and Equipment 891 9,745 9,740 Other Non Current Assets 32 347 335 Total Non Current Assets 923 10,092 10,075 TOTAL ASSETS 1,715 18,748 17,319 LIABILITIES Current Liabilities: Notes Payable to Banks 6 64 10 Trade Accounts Payable 93 1,019 838 Other Accrued Liabilities 55 603 296 Total Current Liabilities 154 1,686 1,144 Long-Term Debt 5 53 35 Labor Obligations 5 50 78 Deferred Income Taxes and Others 208 2,272 2,152 Total Long-Term Liabilities 217 2,375 2,265 TOTAL LIABILITIES 371 4,061 3,409 STOCKHOLDERS' EQUITY Capital stock 208 2,279 2,264 Premium in Public Offering of Shares 59 650 734 Retained Earnings 1,412 15,431 18,619 Net Income for the Year 99 1,082 894 Deficit from Restatement of Stockholders' Equity (334) (3,647) (3,703) Reserve for Repurchase of Shares 22 240 157 Minimum Seniority Premium Liability Adjustment - - (1) Effect of Deferred Income Taxes (128) (1,394) (5,099) Total Majority Stockholder's Equity 1,339 14,640 13,865 Minority Interest 4 47 45 TOTAL STOCKHOLDERS' EQUITY 1,344 14,687 13,910 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,715 18,748 17,319
(1) Peso amounts have been translated into U.S. dollars solely for the convenience of the reader, at the rate of Ps. 10.9315 per U.S. dollar, the noon buying rate at September 28, 2007.
INDUSTRIAS BACHOCO, S.A.B. DE C.V. AND SUBSIDIARIES Condensed Consolidated Statements of Changes in Financial Position (millions of constant pesos as of September 30, 2007, and millions of U.S. dollars) Sep-30 Sep '30 Dec '31 2007(1) 2007 2006 Operating Activities: Net Income US$ 99 Ps. 1,084 Ps. 801 Adjustments to Reconcile Net Income to Resources Provided by Operating Activities: Depreciation and Others 38 416 395 Changes in Operating Assets and Liabilities (86) (938) 16 Deferred Income Taxes 11 122 37 Resources Provided by Operating Activities 63 684 1,251 Financing Activities: Increase of Capital Stock 0 0 0 Proceeds from Long-term Debt - - - Proceeds from Short-term Debt 12 132 44 Repayment of Long-term Debt and Notes Payable (4) (49) (69) Decrease in Long-term Debt in Constant Pesos (1) (11) (4) Cash Dividends Paid (33) (357) (373) Resources Provided by (Used in) Financing Activities (26) (285) (401) Investing Activities: Acquisition of Property, Plant and Equipment (43) (472) (584) Minority Interest 0 2 (1) Others (1) (13) (28) Resources Used in Investing Activities (44) (483) (613) Net (Decrease) Increase in Cash and Cash Equivalents (8) (84) 237 Cash and Cash Equivalents at Beginning of Period 323 3,530 3,369 Cash and Cash Equivalents at End of Period US$ 315 Ps. 3,446 Ps. 3,606
(1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 10.9315 per U.S. dollar, the noon buying rate at September 28, 2007.
