INDUSTRIAS BACHOCO, S.A.B. DE C.V. 
By CELAYA,
Highlights:
- Bachoco recorded sales of Ps. 18,208.8 during 2007, 17.2% above the
Ps. 15,537.5 million reached in 2006. Fourth quarter sales increased
11.0% as compared with the same quarter of 2006.
- Bachoco achieved EPS of Ps. 2.13 (US$2.34 per ADS) for 2007, compared to
EPS of Ps. 1.54 (US$1.70 per ADS) for 2006. Fourth quarter EPS were
Ps. 0.30 (US$ 0.33 per ADS) versus Ps. 0.19 (US$ 0.21 per ADS).
- In 2007, the company increased its facilities by adding two new
complexes as a result of the agreements reached with three different
companies.
CEO's Comments:
"Overall, 2007 was a challenging year. Despite the increase in raw materials, we managed to improve our operational results, recording an increase of 5.3% from last year.
"The Company successfully achieved these results under a difficult scenario, mainly because of its efficiency, productivity and service improvement efforts, which allowed us to obtain positive results.
"At the end of the year, the Company announced a business arrangement with
"AGRA", a table egg company located in northern
FOURTH QUARTER 2007 RESULTS
Net Sales
Net sales for the quarter reached Ps. 4,602.6 million, 11.0% above the
Ps. 4,145.5 million reported in 4Q06. This increase was mainly driven by the
7.7% increase in chicken sales, 25.9% in table eggs sales, and 17.0% in swine
sales, which, in turn, were partially offset by a 2.1% decrease in balanced
feed sales.
Net Sales by Product Line 4Q07 (%) 4Q06 (%)
CHICKEN 75.7 78.0
EGGS 10.6 9.4
BALANCED FEED 7.7 8.8
SWINE AND OTHER LINES 6.0 3.8
TOTAL COMPANY 100.0 100.0
Operating Results
Bachoco's fourth quarter gross margin of 17.0% was lower than the 26.2% in 4Q06. The decrease is mainly attributed to the increase in raw materials costs. The Company's operating margin dropped to 4.4%, from the 13.1% margin in the same 2006 quarter. EBITDA during the quarter totaled Ps. 347.6 million.
Taxes
Taxes recognized by the Company during the quarter were Ps. 70.8 million.
Net Income
Net income for 4Q07 was Ps. 180.3 million, or Ps. 0.30 per share (US$0.33 per ADS), compared to net income of Ps. 113.3 million, or Ps.0.19 per share (US$0.21 per ADS) reported in the same 2006 period. During the fourth quarter of 2006, the Company recognized a special charge of Ps. 335.8 million, which did not affect cash flow.
RESULTS BY BUSINESS SEGMENT
Chicken
Chicken sales rose 7.7% during 4Q07 as a result of a 10.4% increase in volume, which was partially offset by 2.5% decrease in prices. During this quarter, the demand for chicken was strong and prices for chicken were lower than expected. The volume increase was driven by added capacity and productivity improvements.
Table Eggs
Sales of table eggs grew stronger by 25.9%, while volumes increased 4.1% and the price jumped 20.9% from the same last year's quarter.
Balanced Feed
Balanced feed sales and volume decreased during this quarter by 2.1% and 12.1%, respectively, when compared to 4Q06. Pricing, however, rose 11.3% driven by worldwide pressure on grains and other raw materials.
Swine and Other Lines
Sales of swine and other lines increased 90.4% in the quarter. This increase was mainly the result of turkey sales and a 22.3% increase in swine volume.
FULL YEAR 2007
Net Sales
Net sales for 2007 were 17.2% higher at Ps. 18,208.8 million, when
compared to Ps. 15,537.5 million reported in 2006. Sales rose mainly as
chicken sales grew 17.2%, table eggs increased 22.2%, balanced feed rose 4.2%
and swine increased 24.3%.
Net Sales by Product Line 2007 (%) 2006 (%)
CHICKEN 77.6 77.6
EGGS 9.6 9.2
BALANCED FEED 8.0 9.0
SWINE AND OTHER LINES 4.8 4.2
TOTAL COMPANY 100.0 100.0
Operating Results
Bachoco's gross margin reached 20.5% during the year, below the 22.4% gross margin reported in 2006. The 17.2% increase in sales was partially offset by a 20.1% increase in the cost of sales. Bachoco's operating margin was 8.2% lower than the 9.1% of the same 2006 period. EBITDA during the year reached Ps. 2,059.2 million, a 5.5% increase over 2006.
Taxes
The taxes recognized by the Company during the year were Ps. 386.9 million.
Net Income
Net income for the year ended
Balance Sheet
The Company maintained a healthy financial structure. Liquidity remained
solid with cash and cash equivalents at Ps. 3,040.0 million as of
Capex during the year was Ps. 861.7 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. The
Company is the largest poultry company in
Industrias Bachoco made an initial public stock offering in
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
INDUSTRIAS BACHOCO, S.A.B. DE C.V. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(millions of constant pesos as of December 31, 2007, and millions
of U.S. dollars, except per share data)
Fourth Quarter Full Year
Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31
2007(1) 2007 2006 2007(1) 2007 2006
Net Sales US 422 Ps 4,603 Ps 4,145 US 1,668 Ps 18,209 Ps 15,537
Cost of Sales 350 3,821 3,058 1,326 14,478 12,053
Gross Profit 72 782 1,087 342 3,731 3,485
Selling, general
and administrative
expenses 53 581 542 205 2,243 2,072
Operating Income 18 201 545 136 1,488 1,412
Comprehensive
Financing Cost
(income)
Interest Expense
(Income) (2) (22) (59) (16) (177) (183)
Foreign Exchange
Loss (gain) 0 2 10 0 3 (41)
Gain from Monetary
Position 3 30 31 7 76 79
Total Comprehensive
Financing Cost
(income) 1 10 (18) (9) (98) (145)
Other Income Net 5 60 (6) 7 80 13
Income before
Provisions for
Income Tax,
Employee Profit
Sharing and
Minority Interest 23 250 557 153 1,666 1,570
Provisions for:
Income Tax,
Asset Tax (1) (7) (75) (12) (132) (242)
Deferred Income
Taxes (6) (64) (370) (23) (255) (402)
Income before
Minority Interest 16 180 113 117 1,280 926
Minority Interest 0 1 1 (0) (1) (1)
Net Income 17 180 113 117 1,278 925
Weighted Average
Shares
Outstanding
(Thousand) 600,000 600,000 600,000 600,000 600,000 599,571
Net Income
per Share 0.33 0.30 0.19 2.34 2.13 1.54
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. 10.9170 per U.S. dollar, the
noon buying rate at December 31, 2007.
INDUSTRIAS BACHOCO, S.A.B. DE C.V. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(millions of constant pesos as of December 31, 2007, and millions
of U.S. dollars)
Dec 31 Dec 31 Dec 31
2007(1) 2007 2006
ASSETS
Current Assets:
Cash and Cash Equivalents US 278 Ps 3,040 Ps 3,588
Accounts Receivable less
Allowance for Doubtful
Accounts 66 725 541
Inventories 387 4,220 2,835
Other Current Assets 49 534 390
Total Current Assets 780 8,520 7,354
Net Property, Plant and
Equipment 929 10,140 9,888
Other Non Current Assets 32 354 340
Total Non Current Assets 961 10,494 10,228
TOTAL ASSETS 1,742 19,015 17,582
LIABILITIES
Current Liabilities:
Notes Payable to Banks 5 59 10
Trade Accounts Payable 104 1,138 851
Other Accrued Liabilities 29 320 300
Total Current Liabilities 139 1,517 1,161
Long-Term Debt 5 51 36
Labor Obligations 5 53 79
Deferred Income Taxes and
Others 214 2,333 2,185
Total Long-Term Liabilities 223 2,437 2,300
TOTAL LIABILITIES 362 3,954 3,461
STOCKHOLDERS' EQUITY
Capital stock 212 2,314 2,298
Premium in Public Offering of
Shares 60 660 745
Retained Earnings 1,435 15,665 18,901
Net Income for the Year 117 1,278 907
Deficit from Restatement of
Stockholders' Equity (342) (3,732) (3,759)
Reserve for Repurchase of
Shares 22 244 160
Minimum Seniority Premium
Liability Adjustment -- -- (1)
Effect of Deferred Income
Taxes (130) (1,415) (5,176)
Total Majority Stockholders'
Equity 1,375 15,014 14,076
Minority Interest 4 47 45
TOTAL STOCKHOLDERS' EQUITY 1,380 15,061 14,121
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY 1,742 19,015 17,582
(1) Peso amounts have been translated into U.S. dollars, solely for
the convenience of the reader, at the rate of Ps. 10.9170 per U.S.
dollar, the noon buying rate at December 31, 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 December 31, 2007, and millions of
U.S. dollars)
Dec 31 Dec 31 Dec 31
2007(1) 2007 2006
Operating Activities:
Net Income US$ 117 Ps. 1,280 Ps. 926
Adjustments to Reconcile
Net Income to Resources
Provided by Operating
Activities:
Depreciation and Others 52 570 539
Changes in Operating Assets and
Liabilities (126) (1,371) (202)
Deferred Income Taxes 14 151 369
Resources Provided by Operating
Activities 58 630 1,633
Financing Activities:
Increase of Capital Stock 0 0 0
Proceeds from Long-term Debt -- -- --
Proceeds from Short-term Debt 12 135 44
Repayment of Long-term Debt
and Notes Payable (5) (59) (149)
Decrease in Long-term Debt in
Constant Pesos (1) (12) (6)
Cash Dividends Paid (33) (362) (378)
Resources Provided by (Used in)
Financing Activities (27) (298) (489)
Investing Activities:
Acquisition of Property, Plant
and Equipment (79) (862) (961)
Minority Interest 0 1 (1)
Others (1) (16) (17)
Resources Used in Investing
Activities (80) (876) (979)
Net (Decrease) Increase in Cash
and Cash Equivalents (50) (544) 165
Cash and Cash Equivalents at
Beginning of Period 328 3,584 3,420
Cash and Cash Equivalents
at End of Period US$ 278 Ps. 3,040 Ps. 3,585
(1) Peso amounts have been translated into U.S. dollars, solely for
the convenience of the reader, at the rate of Ps. 10.9170 per U.S.
dollar, the noon buying rate at December 31, 2007.
IR Contacts:
Daniel Salazar, CFO
Claudia Cabrera, IRO
Ph 011 52 (461) 618 35 55
inversionistas@bachoco.net
In New York:
Lucia Domville
The Global Consulting Group
Ph. (646) 284 9416
ldomville@hfgcg.com
http://www.bachoco.com.mxSOURCE Industrias Bachoco S.A.B. de C.V.
