CELAYA, Mexico--(BUSINESS WIRE)--Industrias Bachoco, S.A.B. de C.V., “Bachoco” or “the Company”, (NYSE: IBA; BMV: Bachoco) announced today its unaudited results for the fourth quarter (“4Q21”) and full year (“2021”) ending on December 31st, 2021. All figures have been prepared in accordance with International Financial Reporting Standard (“IFRS”) and are presented in nominal million Mexican Pesos (“$”).
HIGHLIGHTS 2021
- Net sales increased 15.9% in 4Q21 and increased 18.8% in year 2021 vs equivalent periods of 2020.
- EBITDA margin was 4.1% for 4Q21 and 9.0% for the whole year.
- Earnings per basic and diluted share totaled $1.08 for the quarter and $8.45 for the year.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: “2021 was a year more in line with seasonal behavior compared to 2020. Which means, a year with a very good first half vs a challenging second one, particularly in terms of profitability. In the overall, we consider that, a balanced supply and demand and our participation in all the main channels allowed us to optimize our sales mix and deliver improved results vs full year 2020.
Particularly for the 4Q21 we showed a recover in our volume sold, mainly in poultry, which reinforces our commitment with customers and market. More volume sold and better prices YOY allowed us to reach an increase in sales of 15.9% for the quarter and 18.8% for the full year.
On the other hand, regarding our cost of sales, challenges in commodity prices remained. This has had a negative effect in our operations both Mexico and the U.S. Just for the quarter, our combined cost of sales increased 27.8% vs 4Q20 and 18.1% vs full year 2020.
However, we managed to deliver positive results for the quarter and year-end. Our EBITDA was $881.7 million for 4Q21 and $7,359.9 million for 2021 with margins of 4.1% and 9.0% respectively.
Those results allowed us to remain with a solid financial position generating net cash of $18,783.1 million an increase of 13.6% compared to 2020. This strength allowed us not only to face the volatility and challenges of our industry but also to support our growth plans.
In this regard, after year-end, we announced the acquisition of RYC Alimentos which results will be consolidated in our 2022 financials. We look forward to start with the integration process of this operation in order to capture the synergies identified.”
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 2021.
QUARTERLY RESULTS |
|||||
NET SALES BY GEOGRAPHY |
|
|
|
|
|
In millions of pesos |
|
4Q21 |
4Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Sales |
|
21,251.5 |
18,329.3 |
2,922.2 |
15.9 |
Net sales in Mexico |
|
15,937.3 |
13,781.3 |
2,156.1 |
15.6 |
Net sales in the U.S. |
|
5,314.2 |
4,548.0 |
766.1 |
16.8 |
NET SALES BY SEGMENT |
|
|
|
|
|
In millions of pesos |
|
4Q21 |
4Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Sales |
|
21,251.5 |
18,329.3 |
2,922.2 |
15.9 |
Poultry |
|
18,598.1 |
16,138.1 |
2,460.0 |
15.2 |
Other |
|
2,653.4 |
2,191.2 |
462.2 |
21.1 |
NET VOLUME SOLD BY SEGMENT |
|||||
In tons |
|
|
Change |
||
|
4Q21 |
4Q20 |
Volume |
% |
|
Total sales volume: |
605,925 |
585,064 |
20,860.8 |
3.6 |
|
Poultry |
467,942 |
447,605 |
20,337.3 |
4.5 |
|
Others |
137,983 |
137,459 |
523.5 |
0.4 |
|
The Company’s 4Q21 net sales totaled $21,251.5 million; $2,922.2 million or 15.9% more than $18,329.3 million reported in 4Q20. The increase is a result of higher volume sold in poultry as well as higher prices in our main business lines.
In 4Q21, sales of our U.S. operations represented 25.0% of our total sales compared to 24.8% in 4Q20.
GROSS PROFIT |
|
|
|
||
In millions of pesos |
4Q21 |
4Q20 |
Change |
||
|
$ |
$ |
$ |
% |
|
Cost of sales |
18,488.2 |
14,468.2 |
4,020.1 |
27.8 |
|
Gross profit |
2,763.3 |
3,861.2 |
(1,097.9) |
(28.4) |
|
Gross margin |
13.0% |
21.1% |
- |
- |
|
In 4Q21, cost of sales was $18,488.2 million; $4,020.1 million or 27.8% higher than $14,468.2 million reported in 4Q20. This increase was mainly due to higher unit cost in our main business lines as we continued observing year over year increases in prices of our main raw materials.
The Company´s gross profit in 4Q21 was $2,763.3 million, lower than the gross profit of $3,861.2 million in 4Q20, with a gross margin of 13.0% for 4Q21 vs 21.1% in 4Q20.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (“SG&A”) |
|||||
In millions of pesos |
|
4Q21 |
4Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Total SG&A |
|
2,145.5 |
1,661.9 |
483.5 |
29.1 |
Total SG&A expenses in 4Q21 were $2,145.5 million; $483.5 million higher than the $1,661.9 million reported in 4Q20. Total SG&A expenses as a percentage of net sales represented 10.1% in 4Q21 and 9.1% in 4Q20.
OTHER INCOME (EXPENSE), NET |
|||||
In millions of pesos |
|
4Q21 |
4Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Other income (expense), net |
|
(108.3) |
(51.3) |
(57.0) |
111.0 |
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 4Q21, we recorded other expenses of $108.3 million, compared with other expenses of $51.3 million reported in 4Q20.
OPERATING INCOME |
|
|
|
|
|
In millions of pesos |
|
4Q21 |
4Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Operating income |
|
509.5 |
2,147.9 |
(1,638.4) |
(76.3) |
Operating margin |
|
2.4% |
11.7% |
- |
- |
Operating income in 4Q21 totaled $509.5 million; $1,638.4 million lower than the Operating income of $2,147.9 million reported in 4Q20. This represents an operating margin of 2.4% for 4Q21, versus 11.7% operating margin in the same period of 2020. The decrease in operating income is mainly attributed to higher raw material costs.
NET FINANCIAL INCOME |
|
|
|
|
|
In millions of pesos |
|
4Q21 |
4Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Financial Income |
|
149.6 |
(1,154.6) |
1,304.2 |
(113.0) |
Financial Income |
|
211.5 |
(1,111.7) |
1,323.1 |
(119.0) |
Financial Expense |
|
61.8 |
42.9 |
18.9 |
44.0 |
In 4Q21, the Company reported net financial income $149.6 million, compared to a financial loss of $1,154.6 million reported in the same period of 2020. Of the Financial Income, exchange rate valuation in 4Q21 was $32.4 million vs a negative $1,206.9 million obtained in 4Q20.
TAXES FOR THE PERIOD |
|
|
|
|
|
In millions of pesos |
|
4Q21 |
4Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Total Taxes |
|
49.0 |
3.3 |
45.7 |
1,377.0 |
Income tax |
|
486.4 |
679.1 |
(192.7) |
(28.4) |
Deferred income tax |
|
(437.4) |
(675.8) |
238.4 |
(35.3) |
Total taxes for the 4Q21 were $49.0 million, compared with total taxes of $3.3 million of the same period of 2020.
| NET CONTROLLING INTEREST INCOME | ||||
In millions of pesos |
4Q21 |
4Q20 |
Change |
|
$ |
$ |
$ |
% |
|
Net income |
610.2 |
990.0 |
(379.8) |
(38.4) |
Net margin |
2.9% |
5.4% |
- |
- |
Non-Controlling Interest income |
(38.0) |
(3.8) |
(34.2) |
n/a |
Net controlling interest income |
648.2 |
993.8 |
(345.6) |
(34.8) |
Basic and diluted income per share1 |
1.08 |
1.66 |
(0.58) |
n/a |
Basic and diluted income per ADR2 |
12.97 |
19.88 |
(6.9) |
n/a |
Weighted average Shares outstanding3 |
599,624 |
599,820 |
- |
- |
1 In pesos |
2 in pesos, one ADR equals to twelve shares |
3 In thousands of shares |
The net controlling interest income for 4Q21 was $648.2 million, representing $1.08 pesos of earnings per share, compared with a net controlling interest income of $993.8 million, which represented a $1.66 pesos of earnings per share in 4Q20. This decrease is mainly attributed to lower operating results.
EBITDA |
|
|
|
|
|
In millions of pesos |
|
4Q21 |
4Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net controlling interest income |
|
648.2 |
993.8 |
(345.6) |
(34.8) |
Income tax expense (benefit) |
|
49.0 |
3.3 |
45.7 |
1,377.0 |
Result in associates |
|
(38.0) |
(3.8) |
(34.2) |
895.5 |
Net finance (income) expense |
|
(149.6) |
1,154.6 |
(1,304.2) |
(113.0) |
Depreciation and amortization |
|
372.1 |
307.8 |
64.4 |
20.9 |
EBITDA |
|
881.7 |
2,455.7 |
(1,574.0) |
(64.1) |
EBITDA Margin (%) |
|
4.1% |
13.4% |
- |
- |
Net revenues |
|
21,251.5 |
18,329.3 |
2,922.2 |
15.9 |
EBITDA in 4Q21 reached $881.7 million representing an EBITDA margin of 4.1%, compared to an EBITDA of $2,455.7 million in 4Q20, with an EBITDA margin of 13.4%.
ACCUMULATED RESULTS |
|||||
NET SALES BY GEOGRAPHY |
|
|
|
|
|
In millions of pesos |
|
2021 |
2020 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Sales |
|
81,699.1 |
68,792.0 |
12,907.1 |
18.8 |
Net sales in Mexico |
|
61,468.1 |
49,303.2 |
12,164.9 |
24.7 |
Net sales in the U.S. |
|
20,231.0 |
19,488.8 |
742.2 |
3.8 |
NET SALES BY SEGMENT |
|
|
|
|
|
In millions of pesos |
|
2021 |
2020 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Sales |
|
81,699.1 |
68,792.0 |
12,907.1 |
18.8 |
Poultry |
|
71,518.2 |
61,323.9 |
10,194.3 |
16.6 |
Other |
|
10,180.9 |
7,468.1 |
2,712.8 |
36.3 |
NET VOLUME SOLD BY SEGMENT |
|||||
In metric tons |
Change |
||||
|
2021 |
2020 |
Volume |
% |
|
Total sales volume: |
2,318,049 |
2,296,229 |
21,820.8 |
1.0 |
|
Poultry |
1,769,071 |
1,772,528 |
(3,457.1) |
(0.2) |
|
Others |
548,978 |
523,700 |
25,277.9 |
4.8 |
|
In 2021, net sales totaled $81,699.1 million; $12,907.1 million or 18.8% more than the $68,792.0 million reported in the same period of 2020.
In 2021, sales of our U.S. operations represented 24.8% of our total sales, compared with 28.3% in 2020.
OPERATING RESULTS |
|
|
|
|
|
In millions of pesos |
|
2021 |
2020 |
Change |
|
|
|
$ |
$ |
$ |
% |
Cost of Sales |
|
68,147.9 |
57,707.6 |
10,440.3 |
18.1 |
Gross Profit |
|
13,551.2 |
11,084.4 |
2,466.7 |
22.3 |
Total SG&A |
|
7,302.9 |
6,420.4 |
882.5 |
13.7 |
Other Income (expense) |
|
(352.6) |
(362.5) |
9.9 |
(2.7) |
Operating Income |
|
5,895.7 |
4,301.5 |
1,594.2 |
37.1 |
Net Financial Income |
|
831.9 |
882.2 |
(50.3) |
(5.7) |
Income Tax |
|
1,782.2 |
1,211.6 |
570.6 |
47.1 |
Net Income |
|
4,945.3 |
3,972.1 |
973.2 |
24.5 |
Non-controlling interest |
|
(123.8) |
36.4 |
(160.2) |
(439.9) |
Net controlling interest Income |
|
5,069.1 |
3,935.7 |
1,133.4 |
28.8 |
In the 2021, the cost of sales totaled $68,147.9 million; $10,440.3 million or 18.1% higher than $57,707.6 million reported in the 2020.
As a result, we reached a gross profit of $13,551.2 million and a gross margin of 16.6% in 2021, when compared to $11,084.4 million of gross profit and a gross margin of 16.1% reached in the same period of 2020.
Total SG&A in 2021 were $7,302.9 million; $882.5 million or 13.7% higher than the $6,420.4 million reported in 2020. In 2021 total SG&A expenses as a percentage of net sales represented 8.9% in 2021 and 9.3% in 2020.
In 2021 we had other expenses of $352.6 million, compared with other expenses of $362.5 million reported in 2020.
Operating income in 2021 was $5,895.7 million, which represents an operating margin of 7.2%, an increase from an operating income of $4,301.5 million with an operating margin of 6.3% in 2020.
Net financial income in 2021 was $831.9 million lower when compared to a net financial income of $882.2 million in 2020.
Total taxes were $1,782.2 million as of December 31st, 2021. These include $1,540.4 million of income tax and $241.8 million of deferred income taxes. Those figures compare to an income tax of $1,296.5 million and deferred income taxes of $(84.9) million in 2020.
After Non-controlling interest, all the above resulted in a Net controlling interest income of $5,069.1 million or 6.2% margin in 2021, which represents $8.45 pesos of earnings per share; while in the 2020 the Net controlling interest income totaled $3,935.7 million, 5.7% margin and $6.56 pesos of income per share.
EBITDA |
|
|
|
|
|
In millions of pesos |
|
2021 |
2020 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net controlling interest profit |
|
5,069.1 |
3,935.7 |
1,133.4 |
28.8 |
Income tax expense (benefit) |
|
1,782.2 |
1,211.6 |
570.6 |
47.1 |
Result in associates |
|
(123.8) |
36.4 |
(160.2) |
(439.9) |
Net finance (income) expense |
|
(831.9) |
(882.2) |
50.3 |
(5.7) |
Depreciation and amortization |
|
1,464.2 |
1,735.1 |
(271.0) |
(15.6) |
EBITDA |
|
7,359.9 |
6,036.7 |
1,323.2 |
21.9 |
EBITDA Margin (%) |
|
9.0% |
8.8% |
- |
- |
Net revenues |
|
81,699.1 |
68,792.0 |
12,907.1 |
18.8 |
EBITDA in 2021 reached $7,359.9 million, representing an EBITDA margin of 9.0%, compared to an EBITDA of $6,036.7 million in 2020, with an EBITDA margin of 8.8%.
BALANCE SHEET |
|||||
BALANCE SHEET DATA |
|
|
|
|
|
In millions of pesos |
|
Dec. 31, 2021 |
Dec. 31, 2020 |
Change |
|
|
|
$ |
$ |
$ |
% |
TOTAL ASSETS |
|
65,934.8 |
58,475.0 |
7,459.8 |
12.8 |
Cash and cash equivalents |
|
20,707.1 |
19,242.4 |
1,464.7 |
7.6 |
Accounts receivable |
|
5,252.5 |
4,366.7 |
885.8 |
20.3 |
TOTAL LIABILITIES |
|
17,716.0 |
14,548.2 |
3,167.8 |
21.8 |
Accounts payable |
|
8,565.1 |
5,834.0 |
2,731.1 |
46.8 |
Short-term debt |
|
1,924.0 |
1,251.7 |
672.3 |
53.7 |
Long-term debt |
|
- |
1,460.4 |
(1,460.4) |
(100.0) |
TOTAL STOCKHOLDERS’ EQUITY |
|
48,218.8 |
43,926.8 |
4,292.0 |
9.8 |
Capital stock |
|
1,173.9 |
1,174.3 |
(0.4) |
(0.0) |
Cash and equivalents as of December 31st, 2021, totaled $20,707.1 million vs $19,242.4 million as of December 31st, 2020.
Total debt as of December 31st, 2021, was $1,924.0 million, compared to $2,712.1 million reported as of December 31st, 2020.
Net cash as of December 31st, 2021, was $18,783.1 million, compared to net cash of $16,530.3 million as of December 31st, 2020.
CAPITAL EXPENDITURES |
|||||
In millions of pesos |
|
2021 |
2020 |
Change |
|
|
|
$ |
$ |
$ |
% |
Capital Expenditures |
|
3,500.0 |
2,752.3 |
747.7 |
27.2 |
Total CAPEX for 2021 was $3,500.0 million vs $2,752.3 million in 2020, mainly allocated toward organic growth and productivity projects across all our facilities.
STOCK INFORMATION |
||
As of December 31, 2021 |
||
Total Shares |
600,000,000 |
|
Total free float |
26.75% |
|
Market cap (millions of pesos) |
$42,810 |
|
Source: Yahoo Finances |
||
SHARE PRICE |
|||||||
|
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 |
Close |
High |
Low |
Close |
|
December |
72.74 |
68.29 |
71.35 |
42.54 |
39.46 |
42.54 |
|
November |
73.10 |
70.95 |
71.17 |
42.43 |
39.84 |
39.84 |
|
October |
75.53 |
71.72 |
73.02 |
44.36 |
41.70 |
42.45 |
|
September |
77.07 |
73.02 |
75.98 |
47.11 |
43.82 |
44.20 |
|
August |
73.90 |
70.47 |
73.45 |
44.24 |
42.17 |
43.75 |
|
July |
78.00 |
72.86 |
72.86 |
47.00 |
43.89 |
43.89 |
|
June |
77.89 |
73.93 |
75.27 |
47.60 |
43.93 |
46.32 |
|
May |
77.50 |
74.92 |
76.52 |
46.76 |
44.55 |
46.40 |
|
April |
75.39 |
68.04 |
74.73 |
45.47 |
39.73 |
44.47 |
|
March |
69.42 |
67.16 |
68.04 |
40.45 |
38.30 |
39.95 |
|
February |
71.99 |
68.02 |
69.42 |
43.19 |
39.67 |
39.67 |
|
January |
73.60 |
69.22 |
69.28 |
44.66 |
41.14 |
41.14 |
|
ANALYST COVERAGE |
||
Institution |
Analyst name |
|
ACTINVER |
Enrique Mendoza Farias |
|
BBVA BANCOMER |
Pablo Abraham Peregrina |
|
GBM |
Luis Rodrigo Willard Alonso |
|
INTERCAM |
Richard Horbach Martinez |
|
JP MORGAN |
Ulises Argote |
|
SANTANDER |
Alanis Peña Alan |
|
BANK OF AMERICA |
Fernando Olvera |
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars (“USD”) using an exchange rate of $20.51 per USD, which corresponds to the rate at the close of December 31st, 2021 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 | December 31, |
December 31*, |
|||||
| In million pesos | 2021 |
2021 |
2020* |
||||
| TOTAL ASSETS | $ |
3,214.8 |
65,934.8 |
58,475.0 |
|||
| Total current assets |
|
1,851.3 |
37,970.5 |
32,586.0 |
|||
| Cash and cash equivalents |
|
1,009.6 |
20,707.1 |
19,242.4 |
|||
| Total accounts receivable |
|
256.1 |
5,252.5 |
4,366.7 |
|||
| Inventories |
|
445.9 |
9,145.6 |
7,701.0 |
|||
| Other current assets |
|
139.7 |
2,865.3 |
1,275.9 |
|||
| Total non current assets |
|
1,363.4 |
27,964.3 |
25,889.0 |
|||
| Net property, plant and equipment |
|
1,061.0 |
21,762.0 |
19,733.8 |
|||
| Other non current Assets |
|
302.4 |
6,202.3 |
6,155.2 |
|||
| TOTAL LIABILITIES | $ |
863.8 |
17,716.0 |
14,548.2 |
|||
| Total current liabilities |
|
618.4 |
12,682.5 |
8,179.8 |
|||
| Notes payable to banks |
|
93.8 |
1,924.0 |
1,251.7 |
|||
| Accounts payable |
|
417.6 |
8,565.1 |
5,834.0 |
|||
| Other taxes payable and other accruals |
|
106.9 |
2,193.3 |
1,094.1 |
|||
| Total long-term liabilities |
|
245.4 |
5,033.5 |
6,368.4 |
|||
| Long-term debt |
|
- |
- |
1,460.4 |
|||
| Other non current liabilities |
|
58.9 |
1,207.8 |
1,033.0 |
|||
| Deferred income taxes |
|
186.5 |
3,825.7 |
3,875.0 |
|||
| TOTAL STOCKHOLDERS' EQUITY | $ |
2,351.0 |
48,218.8 |
43,926.8 |
|||
| Capital stock |
|
57.2 |
1,173.9 |
1,174.3 |
|||
| Commission in shares issued |
|
20.2 |
414.1 |
413.4 |
|||
| Repurchased shares |
|
- |
- |
- |
|||
| Retained earnings |
|
2,192.0 |
44,957.2 |
40,874.4 |
|||
| Others accounts |
|
57.7 |
1,182.7 |
855.5 |
|||
| Non controlling interest |
|
23.9 |
490.9 |
609.2 |
|||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
3,214.8 |
65,934.8 |
58,475.0 |
|||
| *Audited | |||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||
| Fourth Quarter Results, ended December 31st: | ||||||||||
| -Unaudited- | ||||||||||
| U.S. Dollar | ||||||||||
| In millions pesos | 2021 |
2021 |
2020* | |||||||
| Net sales | $ |
1,036.2 |
|
21,251.5 |
|
18,329.3 |
|
|||
| Cost of sales |
|
901.4 |
|
18,488.2 |
|
14,468.2 |
|
|||
| Gross profit |
|
134.7 |
|
2,763.3 |
|
3,861.2 |
|
|||
| SG&A |
|
104.6 |
|
2,145.5 |
|
1,661.9 |
|
|||
| Other income (expenses), net |
|
(5.3 |
) |
(108.3 |
) |
(51.3 |
) |
|||
| Operating income |
|
24.8 |
|
509.5 |
|
2,147.9 |
|
|||
| Net finance income |
|
7.3 |
|
149.6 |
|
(1,154.6 |
) |
|||
| Income tax |
|
2.4 |
|
49.0 |
|
3.3 |
|
|||
| Net Income | $ |
29.7 |
|
610.2 |
|
990.0 |
|
|||
| Non-controlling interest |
|
(1.85 |
) |
(38.0 |
) |
(3.8 |
) |
|||
| Net controlling interest profit |
|
31.60 |
|
648.2 |
|
993.8 |
|
|||
| Basic and diluted earnings per share |
|
0.05 |
|
1.08 |
|
1.66 |
|
|||
| Basic and diluted earnings per ADR |
|
0.63 |
|
12.97 |
|
19.88 |
|
|||
| Weighted average Shares outstanding1 |
|
599,624 |
|
599,624 |
|
599,820 |
|
|||
| EBITDA Result | $ |
43.0 |
|
881.7 |
|
2,455.7 |
|
|||
| Gross margin |
|
13.0 |
% |
13.0 |
% |
21.1 |
% |
|||
| Operating margin |
|
2.4 |
% |
2.4 |
% |
11.7 |
% |
|||
| Net margin |
|
3.0 |
% |
2.9 |
% |
5.4 |
% |
|||
| EBITDA margin |
|
4.1 |
% |
4.1 |
% |
13.4 |
% |
|||
| 1 In thousands | ||||||||||
| * Audited | ||||||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||
| Annual Results | ||||||||||
| -Unaudited- | ||||||||||
| U.S. Dollar | ||||||||||
| In millions pesos | 2021 |
2021 |
2020* |
|||||||
| Net sales | $ |
3,983.4 |
|
81,699.1 |
|
68,792.0 |
|
|||
| Cost of sales |
|
3,322.7 |
|
68,147.9 |
|
57,707.6 |
|
|||
| Gross profit |
|
660.7 |
|
13,551.2 |
|
11,084.4 |
|
|||
| Selling, general and administrative expenses |
|
356.1 |
|
7,302.9 |
|
6,420.4 |
|
|||
| Other income (expenses), net |
|
(17.2 |
) |
(352.6 |
) |
(362.5 |
) |
|||
| Operating income |
|
287.5 |
|
5,895.7 |
|
4,301.5 |
|
|||
| Net finance income |
|
40.6 |
|
831.9 |
|
882.2 |
|
|||
| Income tax |
|
86.9 |
|
1,782.2 |
|
1,211.6 |
|
|||
| Net income | $ |
241.1 |
|
4,945.3 |
|
3,972.1 |
|
|||
| Non-controlling interest |
|
(6.04 |
) |
(123.8 |
) |
36.4 |
|
|||
| Net controlling interest profit |
|
247.2 |
|
5,069.1 |
|
3,935.7 |
|
|||
| Basic and diluted earnings per share |
|
0.41 |
|
8.45 |
|
6.56 |
|
|||
| Basic and diluted earnings per ADR |
|
4.95 |
|
101.4 |
|
78.74 |
|
|||
| Weighted average Shares outstanding1 |
|
599,730 |
|
599,730 |
|
599,818 |
|
|||
| EBITDA Result | $ |
358.8 |
|
7,359.9 |
|
6,036.7 |
|
|||
| Gross margin |
|
16.6 |
% |
16.6 |
% |
16.1 |
% |
|||
| Operating margin |
|
7.2 |
% |
7.2 |
% |
6.3 |
% |
|||
| Net margin |
|
6.2 |
% |
6.1 |
% |
5.8 |
% |
|||
| EBITDA margin |
|
9.0 |
% |
9.0 |
% |
8.8 |
% |
|||
| 1 In thousands | ||||||||||
| * Audited | ||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | ||||||||||
| In million of pesos | ||||||||||
| -Unaudited- | ||||||||||
| U.S. Dollar | December 31, | |||||||||
2021 |
2021 |
2020 |
||||||||
| NET MAJORITY INCOME BEFORE INCOME TAX | $ |
328.0 |
|
6,727.5 |
|
5,183.7 |
|
|||
| ITEMS RELATING TO INVESTING ACTIVITIES: |
|
80.1 |
|
1,642.6 |
|
1,640.9 |
|
|||
| Depreciation and others |
|
89.2 |
|
1,829.6 |
|
2,042.9 |
|
|||
| Income (loss) on sale of plant and equipment |
|
6.1 |
|
125.1 |
|
13.0 |
|
|||
| Other Items |
|
(15.2 |
) |
(312.1 |
) |
(414.9 |
) |
|||
| NET CASH GENERATED FROM NET INCOME BEFORE TAXES |
|
408.1 |
|
8,370.1 |
|
6,824.6 |
|
|||
| CASH GENERATED OR USED IN THE OPERATION: |
|
(11.8 |
) |
(243.0 |
) |
(1,043.5 |
) |
|||
| Decrease (increase) in accounts receivable |
|
(19.4 |
) |
(398.1 |
) |
(322.8 |
) |
|||
| Decrease (increase) in inventories |
|
(89.0 |
) |
(1,824.8 |
) |
(638.4 |
) |
|||
| Increase (decrease) in accounts payable |
|
241.4 |
|
4,950.6 |
|
288.5 |
|
|||
| Other Items |
|
(144.8 |
) |
(2,970.7 |
) |
(370.9 |
) |
|||
| NET CASH FLOW FROM OPERATING ACTIVITIES |
|
396.2 |
|
8,127.1 |
|
5,781.2 |
|
|||
| NET CASH FLOW FROM INVESTING ACTIVITIES |
|
(129.9 |
) |
(2,663.6 |
) |
(1,606.8 |
) |
|||
| Acquisition of property, plant and equipment |
|
(170.7 |
) |
(3,501.0 |
) |
(2,346.4 |
) |
|||
| Proceeds from sales of property plant and equipment |
|
1.2 |
|
23.7 |
|
23.8 |
|
|||
| Other Items |
|
39.7 |
|
813.7 |
|
715.8 |
|
|||
| CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES |
|
266.4 |
|
5,463.5 |
|
4,174.4 |
|
|||
| Net cash provided by financing activities: |
|
(195.0 |
) |
(3,998.8 |
) |
(4,096.8 |
) |
|||
| Proceeds from loans |
|
84.7 |
|
1,737.2 |
|
4,030.7 |
|
|||
| Principal payments on loans |
|
(110.2 |
) |
(2,261.2 |
) |
(6,762.2 |
) |
|||
| Dividends paid |
|
(41.5 |
) |
(851.6 |
) |
(793.6 |
) |
|||
| Other items |
|
(127.9 |
) |
(2,623.1 |
) |
(571.7 |
) |
|||
| Net increase (decrease) in cash and equivalents |
|
71.4 |
|
1,464.7 |
|
77.6 |
|
|||
| Cash and investments at the beginning of year | $ |
938.2 |
|
19,242.4 |
|
19,164.8 |
|
|||
| CASH AND INVESTMENTS AT END OF PERIOD | $ |
1,009.6 |
|
20,707.1 |
|
19,242.4 |
|
|||
| DERIVATIVES POSITION REPORT | |||||||||||||||||
| Fourth Quarter 2021 | |||||||||||||||||
| Thousands of Mexican Pesos, as of December 31, 2021 | |||||||||||||||||
| TYPE OF FINANCIAL INSTRUMENT | OBJECTIVE | NOTIONAL | VALUE OF THE RELATED COMMODITY | REASONABLE VALUE | AMOUNTS DUE BY YEAR | GUARANTIES REQUIRED | |||||||||||
| 4Q-2021 | 3Q-2021 | 4Q-2021 | 3Q-2021 | ||||||||||||||
| Forward Vanilla | Hedge | $ |
11,238 |
$ |
20.51 |
$ |
20.64 |
$ |
-128 |
$ |
63,580 |
100% in 2022 |
The deals consider the possibility of margin calls but not another kind of guarantee | ||||
| Futures for corn, soybean meal and soybean oil | Hedge | $ |
149,102 |
CORN | CORN | $ |
4,175 |
-$ |
3,890 |
100% in 2022 |
|||||||
| In USD per Bushel | In USD per Bushel | ||||||||||||||||
| month | price | month | price | ||||||||||||||
| Mar-22 | $ |
5.933 |
Dec-21 | $ |
5.368 |
||||||||||||
| Sep-22 | $ |
5.628 |
Mar-22 | $ |
5.445 |
||||||||||||
| SOYBEAN MEAL | SOYBEAN MEAL | ||||||||||||||||
| In USD per ton | In USD per ton | ||||||||||||||||
| month | price | month | price | ||||||||||||||
| Dec-21 | $ |
328.7 |
|||||||||||||||
| Jan-22 | $ |
331.0 |
|||||||||||||||
| Mar-22 | $ |
399.1 |
Mar-22 | $ |
333.4 |
||||||||||||
| May-22 | $ |
397.1 |
May-22 | $ |
337.1 |
||||||||||||
| Jul-22 | $ |
397.6 |
Jul-22 | $ |
340.5 |
||||||||||||
| Aug-22 | $ |
394.6 |
Aug-22 | $ |
341.4 |
||||||||||||
| Sep-22 | $ |
388.0 |
Sep-22 | $ |
341.3 |
||||||||||||
| Oct-22 | $ |
380.2 |
Oct-22 | $ |
339.1 |
||||||||||||
| Dec-22 | $ |
380.0 |
Dec-22 | $ |
340.3 |
||||||||||||
| SOYBEAN OIL | |||||||||||||||||
| In US cents per pound | |||||||||||||||||
| Month | Price | ||||||||||||||||
Mar-22 |
$ |
56.53 |
|||||||||||||||
| Options of Corn | Hedge | $ |
1,825 |
CORN | CORN | $ |
340 |
$ |
23,350 |
100% in 2022 | |||||||
| In USD per Bushel | In USD per Bushel | ||||||||||||||||
| month | price | month | price | ||||||||||||||
| Dec-21 | $ |
5.368 |
|||||||||||||||
| Mar-22 | $ |
5.933 |
Mar-22 | $ |
5.445 |
||||||||||||
| Options of soybean meal | Hedge | $ |
44,959 |
SOYBEAN MEAL | SOYBEAN MEAL | $ |
3,949 |
-$ |
21,390 |
100% in 2022 | |||||||
| In USD per ton | In USD per ton | ||||||||||||||||
| month | price | month | price | ||||||||||||||
| Oct-21 | $ |
343.1 |
|||||||||||||||
| Dec-21 | $ |
328.7 |
|||||||||||||||
| Jan-22 | $ |
331.0 |
|||||||||||||||
| Mar-22 | $ |
399.1 |
Mar-22 | $ |
333.4 |
||||||||||||
| May-22 | $ |
397.1 |
May-22 | $ |
337.1 |
||||||||||||
| -The total financial instruments do not exceed 5% of total assets as of December 31, 2021. | |||||||||||||||||
| -The notional value represents the net position as of December 31, 2021 at the exchange rate of Ps.20.51 per one dollar. | |||||||||||||||||
| -A negative value means an unfavorable effect for the Company. | |||||||||||||||||
| Fourth Quarter 2021 | |||||||||||||||
| Thousands of Mexican Pesos, as of December 31, 2021 | 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 (1) | |||||||||||||||
-2.5% |
2.5% |
5.0% |
-2.5% |
2.5% |
5.0% |
||||||||||
| Forward Vanilla | -$ |
128 |
$ |
20.00 |
$ |
21.02 |
$ |
21.54 |
Direct | -$ |
5,889 |
$ |
5,634 |
$ |
11,396 |
-5% |
5% |
10% |
-5% |
5% |
10% |
||||||||||
| Futures of Corn: (2) | $ |
4,175 |
$ |
5.636 |
$ |
6.229 |
$ |
6.526 |
The effect will materialize as the inventory is consumed | -$ |
3,280 | $ |
11,630 |
$ |
19,085 |
| Futures of Soybean Meal: (2) | $ |
379.1 |
$ |
419.1 |
$ |
439.0 |
|||||||||
| Futures for Soy Oil (2) | $ |
53.7 |
$ |
59.4 |
$ |
62.2 |
|||||||||
| Options for Corn | $ |
340 |
$ |
5.636 |
$ |
6.229 |
$ |
6.526 |
$ |
249 |
$ |
431 |
$ |
522 |
|
| Options of Soybean Meal | $ |
3,949 |
$ |
379.1 |
$ |
419.1 |
$ |
439.0 |
$ |
1,701 |
$ |
6,197 |
$ |
8,445 |
|
| (1) The reference value is the exchange rate of Ps. $20.51 per USD as of December 31, 2021. | |||||||||||||||
| (2) The reference values are; the future of corn for March 2022, $5.9325 USD/bushel, the future of soybeanmeal for March 2022, $399.10USD/ton and the future of soybean oil for March 2022, $56.53 usd cts / pound | |||||||||||||||
| '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. | |||||||||||||||
| Fourth Quarter 2021 | ||||||||||
| Thousands of Mexican Pesos, as of December 31, 2021 | STRESS SCENARIO | |||||||||
| TYPE OF FINANCIAL INSTRUMENT | REASONABLE VALUE |
VALUE OF THE RELATED COMMODITY | EFFECT ON THE INCOME STATEMENT |
EFFECT ON THE CASH FLOW | ||||||
| Reference Value | ||||||||||
-50% |
-25% |
25% |
50% |
-50% |
-25% |
25% |
50% |
|||
| Forward Vanilla | -$128 | $10.26 |
$15.38 |
$25.64 |
$30.77 |
Direct | -$115,362 | -$57,745 | $57,490 |
$115,107 |
CONFERENCE CALL INFORMATION
The Company will host its fourth quarter 2021 earnings call, on Friday, February 4th, 2022. The earnings call will take place at 11:00 am Central Time (12:00 pm 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:
http://web.meetme.net/r.aspx?p=12&a=UfuOzYSxaaXZLN
Confirmation Number: 50274535
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 80 distribution centers in Mexico, and a production complex in the United States. Currently the Company employs more than 29,000 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.
