CELAYA, Mexico, April 24 /PRNewswire-FirstCall/ -- Industrias Bachoco S.A.B. de C.V. ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco), Mexico's leading producer and processor of poultry products, today announced its unaudited results for the quarter ended March 31, 2008. All figures have been prepared in accordance with Mexican GAAP. In accordance with Mexican Accounting Principles, 2008's first quarter is presented in nominal pesos while the first quarter of 2007 is presented in constant pesos as of December 31, 2007.
Highlights: - The Company recorded sales of Ps. 4,743.3 million during the first quarter of 2008, 16.5% above the Ps. 4,071.0 million reached during the same period last year. - Bachoco sales increased across all its business lines. - Operating profit increased 7.6% during the quarter, while EBITDA was 7.4% higher at Ps. 393.3 million in 1Q08 from Ps. 366.1 million in 1Q07. - EPS were Ps. 0.38 (US$ 0.43 per ADS) versus Ps. 0.41 (US$ 0.47 per ADS) reached in 1Q07 CEO's Comments:
Cristobal Mondragon, Bachoco's CEO, stated, "During the quarter our company, as most companies in the industry worldwide, was affected by continuous increases in the cost of grain and soybean meal, our main raw materials.
"In response to the current adverse conditions, we reinforced our productivity efforts, optimized our mix products and transferred part of our cost increases to products price as the demand and economy allowed us to do so. Demand and supply were stable during most of the quarter.
"We continued growing, volume sold increased in our main product lines as well as total sales, operating profits and EBITDA.
"Our financial condition remains strong, Cash and Cash equivalents totaled Ps. 3,162.0 millions and our CAPEX was entirely financed by own generated resources.
"We also continued to reinforce our new image launched last December to improve our brand recognition," concluded Mr. Mondragon.
Recent Developments:
On April 16, the Company announced that the secondary process of its plant located in Monterrey, in Northern Mexico, caught fire on April 13. Presently, the Company is still evaluating the extent of the damage. Nevertheless, Bachoco continues supplying normally to its costumers.
Adoption of New Accounting Standards
As of January 1, 2008, the Company has adopted the changes to "Inflationary Effects" in accordance with the Mexican Accounting Principles. Due to the relatively low inflation that the country has consistently achieved during the past several years, a new accounting principle went into effect on January 1, 2008, which eliminates the recognition of inflationary effects in its financial information. Consequently, financial information corresponding to the period ended March 31, 2007 is expressed in Millions of Mexican Pesos with purchasing power as of December 31, 2007, while the financial information for the period ended March 31, 2008, is stated in current or nominal Mexican Pesos.
FIRST QUARTER 2008 RESULTS Net Sales
Net sales for the quarter reached Ps. 4,743.3 million, 16.5% above the Ps. 4,071.0 million reported in 1Q07. This increase was mainly driven by the 16.5% increase in chicken sales, 25.4% in table eggs sales, 7.1% in balanced feed sales and 11.0% increase in swine sales.
Net Sales by Product Line 1Q08 (%) 1Q07 (%) CHICKEN 76.2 76.2 EGGS 11.4 10.6 BALANCED FEED 7.8 8.5 SWINE 0.9 0.9 OTHER LINES 3.8 3.9 TOTAL COMPANY 100.0 100.0 Operating Results
Bachoco's first quarter gross margin of 17.4% was lower than 18.5% in 1Q07. As it occurred in the previous quarters, the decrease is mainly attributed to the increase in raw materials costs. The Company's operating profit increased 7.6% to Ps. 244.4 million with respect to the same quarter last year while EBITDA increased 7.4% during the quarter to Ps. 393.3 million, above the Ps. 366.1 million in the same period of 2007.
Taxes Taxes recognized by the Company during the quarter were Ps. 63.2 million. Net Income
Net income for 1Q08 was Ps. 230.8 million, or Ps. 0.38 per share (US$0.43 per ADS), compared to net income of Ps. 248.8 million, or Ps. 0.41 per share (US$0.47 per ADS) reported in the same 2007 period.
Balance Sheet
The Company's financial structure remained healthy. Liquidity is solid with cash and cash equivalents of Ps. 3,162.0 million as of March 31, 2008. Total debt outstanding was Ps. 102.6 million as of March 31, 2008.
CAPEX during the quarter amounted to Ps. 368.5 million. RESULTS BY BUSINESS SEGMENT Chicken
Chicken sales rose 16.5% during 1Q08 as a result of an 8.6% increase in price and 7.2% volume gain.
During this quarter, demand for chicken was stable, while we observed a good level in chicken prices during most of the quarter. The volume increase was driven mainly by productivity improvements and the integration of the business arrangement with the company Libra, announced in February of 2007.
Table Eggs
As it occurred in the previous quarter, sales of table eggs were stronger, increasing 25.4%, as a result of 22.9% higher egg prices and 2.0% volume gain. Demand for table eggs was strong during the quarter.
Balanced Feed
This business line has been directly affected by cost increases in our main raw material. Even when the Company achieved an increase of 7.1% in sales, volume dropped 6.4% when compared with previous year.
Swine
Sales of swine increased 11.0% in the quarter as a result of the 11.4% volume gain, which was partially offset by a 0.3% decrease in prices.
Other Lines
Sales of other lines increased by 15.2% during 1Q08, mainly as a result of the integration of our two new business lines: turkey and beef products.
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. The Company is the largest poultry company in Mexico, with over 700 production and distribution facilities currently organized in nine complexes throughout the country. Bachoco's main business lines are chicken, eggs and balanced feed. The Company also is present in other business like swine, beef, margarine and turkey, in Mexico. The Company's headquarters are 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 BMV (Bachoco) and on the NYSE (IBA).
For more information, please visit Bachoco's website at http://www.bachoco.com.mx/ or contact our IR department.
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.
Condensed Consolidated Balance Sheets
Year 2007 in millions of constant pesos as of December 31, 2007, and
millions of U.S. dollars, except per share data, and
year 2008 in nominal pesos.
U.S.D. March December
2008(1) 2008 2007
ASSETS
Current Assets:
Cash and Cash Equivalents $ 297 Ps 3,162 Ps 3,040
Accounts Receivable less
Allowance for Doubtful
Accounts 64 678 766
Inventories 386 4,098 3,329
Other Current Assets 56 592 803
Total Current Assets 802 8,530 7,937
Net Property, Plant and
Equipment 987 10,488 10,256
Other Non Current Assets 35 373 923
Total Non Current Assets 1,022 10,861 11,179
TOTAL ASSETS 1,824 19,391 19,116
LIABILITIES
Current Liabilities:
Notes Payable to Banks 6 59 40
Trade Accounts Payable 114 1,215 1,138
Other Accrued Liabilities 39 412 289
Total Current Liabilities 159 1,686 1,467
Long-Term Debt 4 44 51
Labor Obligations 5 57 96
Deferred Income Taxes and
Others 198 2,102 2,375
Total Long-Term Liabilities 207 2,202 2,522
TOTAL LIABILITIES 366 3,888 3,989
STOCKHOLDERS' EQUITY
Capital stock 237 2,521 2,295
Premium in Public Offering of
Shares 62 660 744
Retained Earnings 1,594 16,942 15,665
Net Income for the Year 22 231 1,271
Deficit from Restatement of
Stockholders' Equity (350) (3,724) (3,639)
Reserve for Repurchase of
Shares 23 244 159
Minimum Seniority Premium
Liability Adjustment - - -
Effect of Deferred Income
Taxes (133) (1,415) (1,415)
Total Majority Stockholder's
Equity 1,454 15,458 15,080
Minority Interest 4 46 47
TOTAL STOCKHOLDERS' EQUITY 1,458 15,504 15,127
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,824 Ps 19,391 Ps 19,116
(1) Peso at the rate of Ps. 10.63 per U.S. dollar, the noon buying
rate at March 31, 2008
Industrias Bachoco, S.A.B. de C.V.
Condensed Consolidated Statements of Income
Year 2007 in millions of constant pesos as of December 31, 2007, and
millions of U.S. dollars, except per share data and
year 2008 in nominal pesos.
FIRST QUARTER
U.S.D.
2008(1) 2008 2007
Net Sales $ 446 Ps 4,743 Ps 4,071
Cost of Sales 369 3,918 3,319
Gross Profit 78 825 752
Selling, general and
administrative expenses 55 581 525
Operating Income 23 244 227
Comprehensive Financing
Cost (income)
Interest Expense (Income) (4) (45) (68)
Foreign Exchange Loss
(gain) 1 14 (12)
Gain from Monetary Position - - 19
Total Comprehensive
Financing Cost (income) (3) (31) (60)
Other Income Net 2 20 42
Income before Provisions
for Income
Tax, Employee Profit
Sharing and Minority
Interest 28 295 329
Provisions for:
Income Tax, Asset Tax (10) (102) (49)
Deferred Income Taxes 4 39 (30)
Income before Minority
Interest 22 231 251
Minority Interest (0) (1) (2)
Net Income $ 22 Ps 231 Ps 249
Weighted Average Shares
Outstanding (Thousand) 600,000 600,000 600,000
Net Income per Share 0.04 0.38 0.41
Dividend per Share - - -
(1) Peso at the rate of Ps. 10.63 per U.S. dollar, the noon buying
rate at March 31, 2008
Industrias Bachoco, S.A.B. de C.V.
Condensed Consolidated Statements of Changes in Financial Position
Year 2007 in millions of constant pesos as of December 31, 2007,
and millions of U.S. dollars, except per share data, and
year 2008 in nominal pesos.
FIRST QUARTER
U.S.D.
2008(1) 2008 2007
Operating Activities:
Net Income $ 22 Ps. 231 Ps. 251
Adjustments to Reconcile Net
Income to Resources
Provided by Operating
Activities:
Depreciation and Others 14 148 137
Changes in Operating Assets
and Liabilities 39 412 (158)
Deferred Income Taxes (26) (274) 15
Resources Provided by
Operating Activities 49 518 245
Financing Activities:
Increase of Capital Stock 0 0 -
Proceeds from Long-term Debt - - -
Proceeds from Short-term Debt 4 40 42
Repayment of Long-term Debt
and Notes Payable 4 47 (5)
Decrease in Long-term Debt in
Constant Pesos (9) (94) (0)
Cash Dividends Paid - - -
Resources Provided by (Used
in) Financing Activities (1) (7) 36
Investing Activities:
Acquisition of Property,
Plant and Equipment (35) (368) (197)
Minority Interest (0) (1) 0
Others (2) (20) (13)
Resources Used in Investing
Activities (37) (389) (209)
Net (Decrease) Increase in
Cash and Cash
Equivalents 11 122 71
Cash and Cash Equivalents at
Beginning of Period 286 3,040 3,584
Cash and Cash Equivalents at
End of Period $ 297 Ps. 3,162 Ps. 3,655
(1) Peso at the rate of Ps. 10.63 per U.S. dollar, the noon buying
rate at March 31, 2008
IR Contacts:
Daniel Salazar, CFO
Claudia Cabrera, IRO
Ph. 011-52(461)618 35 55
