CELAYA, Mexico & GUANAJUATO, 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 first quarter (“1Q22”) ending March 31, 2022. 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- 2022 vs. 2021
- Net sales increased 25.9% in 1Q22.
- Cost of sales increased 27.1% in 1Q22.
- EBITDA margin was 14.4% in 1Q22 vs 15.1% in 1Q21.
- Earnings per basic and diluted share were $3.60 in 1Q22 vs $3.50 in 1Q21.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated, “We continue observing historically elevated corn and soybean meal prices which resulted in a 27.1% increase in our cost of sales when compared to 1Q21.
We think that part of the movement in those markets is driven by geopolitical tensions between Ukraine and Russia. Although the length and impact of the ongoing military conflict is highly unpredictable, it is leading to market disruptions, including significant volatility in commodity prices. We believe this uncertainty will keep having a negative impact on our cost of sales.
Under those volatile conditions, we remained focus on better managing our sales mix for both Poultry and Others. Particularly in our Others segment we integrated results from RYC Alimentos (RYC) for 1Q22. After the integration, in the overall, our net sales increased 25.9% vs 1Q21.
As a percentage of sales, SG&A was 8.2% compared to the 8.5% reported in the same period of 2021.
All of the above resulted on an EBITDA in 1Q22 of $3,517.0 million or 14.4% EBITDA margin; which compares to the $2,913.4 million and 15.1% margin reported for 1Q21.
We remain committed to our growth strategy, in that end, we reported CAPEX of $915.2 million for the quarter which compares to the $555.7 million for the same period of 2021. This was achieved while generating a net cash position of $18,122.8 million by the end of 1Q22. Our solid financial structure should help us face the uncertainties and volatilities on the market which, at this point, are difficult to predict.”
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 2021.
QUARTERLY RESULTS
NET SALES BY GEOGRAPHY |
|
|
|
|
|
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net sales |
|
24,367.0 |
19,357.6 |
5,009.4 |
25.9 |
Net sales in Mexico |
|
18,096.4 |
14,629.4 |
3,467.0 |
23.7 |
Net sales in the U.S. |
|
6,270.6 |
4,728.2 |
1,542.3 |
32.6 |
NET SALES BY SEGMENT |
|
|
|
|
|
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net sales |
|
24,367.0 |
19,357.6 |
5,009.4 |
25.9 |
Poultry |
|
20,876.2 |
16,983.9 |
3,892.3 |
22.9 |
Other |
|
3,490.8 |
2,373.8 |
1,117.0 |
47.1 |
NET VOLUME SOLD BY SEGMENT |
|||||
In tons |
|
|
|
Change |
|
|
1Q22 |
1Q20 |
Volume |
% |
|
Total sales volume: |
596,544 |
558,082 |
38,461.6 |
6.9 |
|
Poultry |
441,036 |
416,978 |
24,057.9 |
5.8 |
|
Others |
155,508 |
141,104 |
14,403.7 |
10.2 |
|
In 1Q22, the Company’s net sales totaled $24,367.0 million; $5,009.4 million or 25.9% more than $19,357.6 million reported in 1Q21. This was a result of better prices in the U.S. and in our main business lines in Mexico as well as higher volume sold in Others due to the integration of RYC.
In 1Q22, sales of our U.S. operations represented 25.7% of our total sales compared with 24.4% in 1Q21.
GROSS PROFIT |
|
|
|
|
|
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Cost of sales |
|
19,240.5 |
15,139.6 |
4,100.9 |
27.1 |
Gross profit |
|
5,126.5 |
4,218.0 |
908.5 |
21.5 |
Gross margin |
|
21.0% |
21.8% |
- |
- |
The cost of sales totaled $19,240.5 million, representing $4,100.9 million or 27.1% higher than $15,139.6 million reported in the same period of 2021. This increase was mainly driven by higher raw material prices when compared to the same period of 2021 as it was addressed at the beginning of this earnings report.
The Company’s gross profit in 1Q22 was $5,216.5 million, with a gross margin of 21.0%. This result compares to a gross profit of $4,218.0 million and a gross margin of 21.8% reported in 1Q21.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (“SG&A”) |
|||||
In millions of pesos |
|
|
|
|
|
|
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Total SG&A |
|
1,999.1 |
1,637.3 |
361.9 |
22.1 |
Total SG&A expenses in 1Q22 were $1,999.1 million; $361.9 million or 22.1% more than the $1,637.3 million reported 1Q21. Total SG&A expenses, as a percentage of net sales, represent 8.2% in 1Q22 and 8.5% in 1Q21.
OTHER INCOME (EXPENSE), NET |
|||||
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Other income (expense), net |
|
14.8 |
(21.8) |
36.6 |
(168.1) |
Other income or other expenses include the sale of byproducts and unused assets. We register such sales as expenses when the sales price is below the book value of those assets.
OPERATING INCOME |
|
|
|
|
|
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Operating income |
|
3,142.2 |
2,559.0 |
583.2 |
22.8 |
Operating margin |
|
12.9% |
13.2% |
- |
- |
Operating income in 1Q22 totaled $3,142.2 million with an operating margin of 12.9% which compares to the operating income of $2,559.0 million and 13.2% operating margin reported in 1Q21. While in terms of pesos our operating income is higher mainly attributed to the integration of RYC and higher net sales both in Mexico and the U.S., in terms of margin we were negatively impacted by higher raw material costs.
NET FINANCIAL INCOME |
|
|
|
|
|
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Financial Income (Expense) |
|
(235.7) |
319.6 |
(555.3) |
(173.8) |
Financial Income |
|
(101.2) |
374.4 |
(475.6) |
(127.0) |
Financial Expense |
|
134.6 |
54.8 |
79.8 |
145.5 |
In 1Q22, the Company reported net financial expenses of $235.7 million, compared to net financial income of $319.6 million reported in the same period of 2021. This lower financial income was a result of the appreciation of the Mexican peso with respect to 4Q21.
TAXES FOR THE PERIOD |
|
|
|
|
|
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Total Taxes |
|
778.4 |
803.9 |
(25.5) |
(3.2) |
Income tax |
|
604.5 |
524.7 |
79.8 |
15.2 |
Deferred income tax |
|
173.9 |
279.2 |
(105.3) |
(37.7) |
Total taxes for the 1Q22 were $778.4 million, compared to $803.9 million in the same period of 2021.
NET CONTROLLING INTEREST INCOME |
|
|
|
|
|
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net income |
|
2,128.0 |
2,074.6 |
53.4 |
2.6 |
Net margin |
|
8.7% |
10.7% |
- |
- |
Non-Controlling Interest income |
|
(28.6) |
(25.8) |
(2.9) |
n/a |
Net controlling interest income |
|
2,156.6 |
2,100.4 |
56.3 |
2.7 |
Basic and diluted income per share1 |
|
3.60 |
3.50 |
0.10 |
n/a |
Basic and diluted income per ADR2 |
|
43.18 |
42.02 |
1.2 |
n/a |
Weighted average Shares outstanding3 |
|
599,380 |
599,835 |
- |
- |
1 In pesos |
2 in pesos, an ADR is equal to twelve shares |
3 In thousands of shares |
The net controlling interest income 1Q22 was $2,156.6 million, representing a basic and diluted income of $3.60 pesos per share. This result compares to a net controlling interest income of $2,100.4 million, which represented $3.50 pesos of basic and diluted income per share in 1Q21. Net margin for the 1Q22 was 8.7% compared to 10.7% reported in 1Q21 .
EBITDA |
|
|
|
|
|
In millions of pesos |
|
1Q22 |
1Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net controlling interest income |
|
2,156.6 |
2,100.4 |
56.3 |
2.7 |
Income tax expense (benefit) |
|
778.4 |
803.9 |
(25.5) |
(3.2) |
Result in associates |
|
(28.6) |
(25.8) |
(2.9) |
11.1 |
Net finance (income) expense |
|
235.7 |
(319.6) |
555.3 |
(173.8) |
Depreciation and amortization |
|
374.9 |
354.5 |
20.4 |
5.7 |
EBITDA |
|
3,517.0 |
2,913.4 |
603.6 |
20.7 |
EBITDA Margin (%) |
|
14.4% |
15.1% |
- |
- |
Net sales |
|
24,367.0 |
19,357.6 |
5,009.4 |
25.9 |
EBITDA in 1Q22 reached $3,517.0 million, representing an EBITDA margin of 14.4%, compared to an EBITDA of $2,913.4 million in 1Q21 with an EBITDA margin of 15.1%.
BALANCE SHEET DATA
BALANCE SHEET DATA |
|
|
|
|
|
In millions of pesos |
|
Mar 31, 2022 |
Dec. 31, 2021 |
Change |
|
|
|
$ |
$ |
$ |
% |
TOTAL ASSETS |
|
66,175.8 |
65,988.8 |
187.1 |
0.3 |
Cash and cash equivalents |
|
20,194.6 |
20,777.0 |
(582.3) |
(2.8) |
Accounts receivable |
|
4,841.8 |
5,108.5 |
(266.7) |
(5.2) |
TOTAL LIABILITIES |
|
15,979.2 |
17,704.7 |
(1,725.5) |
(9.7) |
Accounts payable |
|
8,299.4 |
10,200.7 |
(1,901.3) |
(18.6) |
Short-term debt |
|
2,071.8 |
1,993.9 |
77.9 |
3.9 |
Long-term debt |
|
- |
- |
- |
- |
TOTAL STOCKHOLDERS’ EQUITY |
|
50,196.7 |
48,284.1 |
1,912.6 |
4.0 |
Capital stock |
|
1,174.4 |
1,174.4 |
- |
- |
Cash and equivalents as of March 31, 2022 totaled $20,194.6 million; $582.3 million or 2.8% lower than $20,777.0 million as of December 31, 2021.
Total debt as of March 31, 2022 totaled $2,071.8 million, compared to $1,993.9 million reported as of December 31, 2021.
Net cash as of March 31, 2022 was $18,122.8 million, compared to net cash of $ 18,783.1 million as of December 31, 2021.
CAPEX
CAPITAL EXPENDITURES |
|||||
In millions of pesos |
|
2022 |
2021 |
Change |
|
|
|
$ |
$ |
$ |
% |
Capital Expenditures |
|
915.2 |
555.7 |
359.5 |
64.7 |
Total CAPEX for the 1Q22 was $915.2 million. This increase considers assets related to the integration of RYC Alimentos.
STOCK INFORMATION
As of March 31, 2022 |
||
Total Shares |
600,000,000 |
|
Total free float |
26.75% |
|
Market cap (millions of pesos) |
$46,632 |
|
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 |
March |
77.72 |
64.93 |
77.72 |
|
46.72 |
37.36 |
46.72 |
February |
71.03 |
69.55 |
68.87 |
|
41.69 |
39.94 |
40.41 |
January |
73.48 |
70.97 |
70.97 |
|
43.25 |
40.97 |
41.77 |
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 |
Source: Yahoo Finances |
ANALYST COVERAGE
Institution |
Analyst name |
|
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 $19.89 per USD $1.0, which corresponds to the rate at the close of March 31, 2022, 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 | ||||||
| First Quarter Results, ended March 31st: | ||||||
| In U.S. Dollar | March 31, | December 31*, |
||||
| In million pesos | 2022 |
2022 |
2021* |
|||
| TOTAL ASSETS | $ |
3,327.1 |
66,175.8 |
65,988.8 |
||
| Total current assets |
|
1,843.2 |
36,661.5 |
37,845.6 |
||
| Cash and cash equivalents |
|
1,015.3 |
20,194.6 |
20,777.0 |
||
| Total accounts receivable |
|
243.4 |
4,841.8 |
5,108.5 |
||
| Inventories |
|
507.2 |
10,088.5 |
9,145.6 |
||
| Other current assets |
|
77.3 |
1,536.6 |
2,814.6 |
||
| Total non current assets |
|
1,483.9 |
29,514.3 |
28,143.2 |
||
| Net property, plant and equipment |
|
1,115.4 |
22,185.4 |
21,763.4 |
||
| Other non current Assets |
|
368.5 |
7,328.9 |
6,379.8 |
||
| TOTAL LIABILITIES | $ |
803.4 |
15,979.2 |
17,704.7 |
||
| Total current liabilities |
|
548.6 |
10,911.4 |
12,835.3 |
||
| Notes payable to banks |
|
104.2 |
2,071.8 |
1,993.9 |
||
| Accounts payable |
|
417.3 |
8,299.4 |
10,200.7 |
||
| Other taxes payable and other accruals |
|
27.2 |
540.2 |
640.7 |
||
| Total long-term liabilities |
|
254.8 |
5,067.8 |
4,869.4 |
||
| Long-term debt |
|
- |
- |
- |
||
| Other non current liabilities |
|
57.1 |
1,135.9 |
1,027.9 |
||
| Deferred income taxes |
|
197.7 |
3,931.9 |
3,841.5 |
||
| TOTAL STOCKHOLDERS' EQUITY | $ |
2,523.7 |
50,196.7 |
48,284.1 |
||
| Capital stock |
|
59.0 |
1,174.4 |
1,174.4 |
||
| Commission in shares issued |
|
20.8 |
414.1 |
414.1 |
||
| Retained earnings |
|
2,371.3 |
47,164.6 |
45,038.6 |
||
| Others accounts |
|
49.6 |
986.8 |
1,179.2 |
||
| Non controlling interest |
|
23.0 |
456.9 |
477.7 |
||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
3,327.1 |
66,175.8 |
65,988.8 |
||
| *Audited | ||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||
| First Quarter Results, ended March 31st: | |||||||||
| -Unaudited- | |||||||||
| In millions pesos | 2022 |
|
2022 |
|
2021 |
||||
| Net sales | $ |
1,225.1 |
|
24,367.0 |
|
19,357.6 |
|
||
| Cost of sales |
|
967.3 |
|
19,240.5 |
|
15,139.6 |
|
||
| Gross profit |
|
257.7 |
|
5,126.5 |
|
4,218.0 |
|
||
| SG&A |
|
100.5 |
|
1,999.1 |
|
1,637.3 |
|
||
| Other income (expenses), net |
|
0.7 |
|
14.8 |
|
(21.8 |
) |
||
| Operating income |
|
158.0 |
|
3,142.2 |
|
2,559.0 |
|
||
| Net finance income |
|
(11.9 |
) |
(235.7 |
) |
319.6 |
|
||
| Income tax |
|
39.1 |
|
778.4 |
|
803.9 |
|
||
| Net Income | $ |
107.0 |
|
2,128.0 |
|
2,074.6 |
|
||
| Non-controlling interest |
|
(1.44 |
) |
(28.6 |
) |
(25.8 |
) |
||
| Net controlling interest profit |
|
108.43 |
|
2,156.6 |
|
2,100.4 |
|
||
| Basic and diluted earnings per share |
|
0.18 |
|
3.60 |
|
3.50 |
|
||
| Basic and diluted earnings per ADR |
|
2.17 |
|
43.18 |
|
42.02 |
|
||
| Weighted average Shares outstanding1 |
|
599,380 |
|
599,380 |
|
599,835 |
|
||
| EBITDA Result | $ |
176.8 |
|
3,517.0 |
|
2,913.4 |
|
||
| Gross margin |
|
21.0 |
% |
21.0 |
% |
21.8 |
% |
||
| Operating margin |
|
12.9 |
% |
12.9 |
% |
13.2 |
% |
||
| Net margin |
|
8.9 |
% |
8.7 |
% |
10.7 |
% |
||
| EBITDA margin |
|
14.4 |
% |
14.4 |
% |
15.1 |
% |
||
| 1 In thousands | |||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||
| In million of pesos | |||||||||
| -Unaudited- | |||||||||
| U.S. Dollar | March 31, | ||||||||
2022 |
2022 |
2021 |
|||||||
| NET MAJORITY INCOME BEFORE INCOME TAX | $ |
146.1 |
|
2,906.5 |
|
2,878.5 |
|
||
| ITEMS RELATING TO INVESTING ACTIVITIES: |
|
19.4 |
|
385.9 |
|
431.8 |
|
||
| Depreciation and others |
|
27.5 |
|
547.3 |
|
476.6 |
|
||
| Income (loss) on sale of plant and equipment |
|
0.9 |
|
17.4 |
|
11.1 |
|
||
| Other Items |
|
(9.0 |
) |
(178.8 |
) |
(55.9 |
) |
||
| NET CASH GENERATED FROM NET INCOME BEFORE TAXES |
|
165.5 |
|
3,292.4 |
|
3,310.3 |
|
||
| CASH GENERATED OR USED IN THE OPERATION: |
|
(71.2 |
) |
(1,416.5 |
) |
(2,376.9 |
) |
||
| Decrease (increase) in accounts receivable |
|
(17.6 |
) |
(349.2 |
) |
(139.3 |
) |
||
| Decrease (increase) in inventories |
|
(51.5 |
) |
(1,024.1 |
) |
54.9 |
|
||
| Increase (decrease) in accounts payable |
|
(101.5 |
) |
(2,019.2 |
) |
(67.9 |
) |
||
| Other Items |
|
99.3 |
|
1,975.9 |
|
(2,224.7 |
) |
||
| NET CASH FLOW FROM OPERATING ACTIVITIES |
|
94.3 |
|
1,875.9 |
|
933.4 |
|
||
| NET CASH FLOW FROM INVESTING ACTIVITIES |
|
(81.5 |
) |
(1,621.4 |
) |
(298.2 |
) |
||
| Acquisition of property, plant and equipment |
|
(46.0 |
) |
(915.2 |
) |
(555.6 |
) |
||
| Proceeds from sales of property plant and equipment |
|
2.3 |
|
46.0 |
|
1.8 |
|
||
| Other Items |
|
(37.8 |
) |
(752.1 |
) |
255.7 |
|
||
| CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES |
|
12.8 |
|
254.5 |
|
635.2 |
|
||
| Net cash provided by financing activities: |
|
(42.6 |
) |
(847.6 |
) |
(85.9 |
) |
||
| Proceeds from loans |
|
3.9 |
|
77.9 |
|
867.2 |
|
||
| Principal payments on loans |
|
- |
|
- |
|
(844.2 |
) |
||
| Dividends paid |
|
- |
|
- |
|
- |
|
||
| Other items |
|
(46.5 |
) |
(925.5 |
) |
(108.8 |
) |
||
| Net increase (decrease) in cash and equivalents |
|
(29.8 |
) |
(593.1 |
) |
549.3 |
|
||
| Cash and investments at the beginning of year | $ |
1,041.1 |
|
20,707.1 |
|
19,242.4 |
|
||
| CASH AND INVESTMENTS AT END OF PERIOD | $ |
1,011.3 |
|
20,114.0 |
|
19,791.7 |
|
||
DERIVATIVES POSITION REPORT
| First Quarter 2022 | ||||||||||
| Thousands of Mexican Pesos, as of March 31, 2022 | ||||||||||
| TYPE OF FINANCIAL INSTRUMENT |
OBJECTIVE | NOTIONAL | VALUE OF THE RELATED COMMODITY | REASONABLE VALUE | AMOUNTS DUE BY YEAR |
GUARANTIES REQUIRED |
||||
| 1Q-2022 | 4Q-2021 | 1Q-2022 | 4Q-2021 | |||||||
| Forward Vanilla y KO Fwd |
Hedge | $ 180,723 |
$ 19.89 |
$ 20.51 |
$-157,022 |
$ -128 |
92% in 2022 and 8% in 2023 |
The deals consider the possibility of margin calls but not another kind of guarantee |
||
| Futures for corn, soybean meal and soybean oil |
Hedge | $ 592,158 |
CORN | CORN | $ 66,687 |
$ 4,175 |
100% in 2022 | |||
| In USD per Bushel | In USD per Bushel | |||||||||
| month | price | month | price | |||||||
| May-22 | $ 7.488 |
|||||||||
| Jul-22 | $ 7.330 |
|||||||||
| Sep-22 | $ 6.963 |
Mar-22 | $ 5.933 |
|||||||
| Dec-22 | $ 6.838 |
Sep-22 | $ 5.628 |
|||||||
| SOYBEAN MEAL | SOYBEAN MEAL | |||||||||
| In USD per ton | In USD per ton | |||||||||
| month | price | month | price | |||||||
| May-22 | $ 467.5 |
Mar-22 | $ 399.1 |
|||||||
| Jul-22 | $ 459.4 |
May-22 | $ 397.1 |
|||||||
| Aug-22 | $ 447.9 |
Jul-22 | $ 397.6 |
|||||||
| Sep-22 | $ 432.2 |
Aug-22 | $ 394.6 |
|||||||
| Oct-22 | $ 414.5 |
Sep-22 | $ 388.0 |
|||||||
| Dec-22 | $ 411.5 |
Oct-22 | $ 380.2 |
|||||||
| Dec-22 | $ 380.0 |
|||||||||
| SOYBEAN OIL | SOYBEAN OIL | |||||||||
| In US cents per pound | In US cents per pound | |||||||||
| Month | Price | Month | Price | |||||||
| May-22 | $ 69.94 |
Mar-22 | $ 56.53 |
|||||||
| Options of Corn | Hedge | $ 1,211,004 |
CORN | CORN | $ 138,102 |
$ 340 |
97% in 2022 and 3% in 2023 |
|||
| In USD per Bushel | In USD per Bushel | |||||||||
| month | price | month | price | |||||||
| May-22 | $ 7.488 |
|||||||||
| Jul-22 | $ 7.330 |
|||||||||
| Sep-22 | $ 6.963 |
|||||||||
| Dec-22 | $ 6.838 |
|||||||||
| Mar-23 | $ 6.845 |
Mar-22 | $ 5.933 |
|||||||
| Options of soybean meal | Hedge | $ 1,098,297 |
SOYBEAN MEAL | SOYBEAN MEAL | $ 66,894 |
$ 3,949 |
87% in 2022 and 13% in 2023 |
|||
| In USD per ton | In USD per ton | |||||||||
| month | price | month | price | |||||||
| May-22 | $ 467.5 |
|||||||||
| Jul-22 | $ 459.4 |
|||||||||
| Aug-22 | $ 447.9 |
|||||||||
| Sep-22 | $ 432.2 |
|||||||||
| Oct-22 | $ 414.5 |
|||||||||
| Dec-22 | $ 411.5 |
Mar-22 | $ 399.1 |
|||||||
| Jan-23 | $ 406.1 |
May-22 | $ 397.1 |
|||||||
| Mar-23 | $ 394.8 |
|||||||||
| Options of Soybean oil | Hedge | $ 23,371 |
SOYBEAN OIL | $ 521 |
$ - |
100% in 2022 | ||||
| In US cents per pound | ||||||||||
| Mes | Precio | |||||||||
| May-22 | $ 69.9 |
|||||||||
| -The total financial instruments do not exceed 5% of total assets as of March 31, 2022. | ||||||||||
| -The notional value represents the net position as of March 31, 2022 at the exchange rate of Ps.19.89 per one dollar. | ||||||||||
| -A negative value means an unfavorable effect for the Company. | ||||||||||
| First Quarter 2022 | |||||||||||||||||||||
| Thousands of Mexican Pesos, as of March 31, 2022 | 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 y KO Fwd | -$ |
157,022 |
$19.39 |
|
$20.39 |
|
$20.88 |
|
Direct | -$246,886 |
-$ 67,157 |
$ |
22,707 |
|
|||||||
-5% |
5% |
10% |
|
-5% |
|
5% |
|
10% |
|||||||||||||
| Futures of Corn: (2) | $ |
66,687 |
$ |
7.113 |
|
$ |
7.862 |
|
$ |
8.236 |
|
The effect will materialize as the inventory is consumed | $ |
37,079 |
|
$ |
96,295 |
|
$ |
125,903 |
|
| Futures of Soybean Meal: (2) | $ |
444.1 |
|
$ |
490.9 |
|
$ |
514.3 |
|
||||||||||||
| Futures for Soy Oil (2) | $ |
66.4 |
|
$ |
73.4 |
|
$ |
76.9 |
|
||||||||||||
| Options for Corn | $ |
138,102 |
$ |
7.113 |
|
$ |
7.862 |
|
$ |
8.236 |
|
$ |
88,634 |
|
$ |
186,281 |
|
$ |
234,385 |
|
|
| Options of Soybean Meal | $ |
66,894 |
$ |
444.1 |
|
$ |
490.9 |
|
$ |
514.3 |
|
$ |
18,845 |
|
$ |
119,358 |
|
$ |
168,676 |
|
|
| Options of soybean Oil | $ |
521 |
$ |
66.44 |
|
$ |
73.44 |
|
$ |
76.93 |
|
$ |
1,690 |
|
$ |
- |
|
$ |
- |
|
|
| (1) The reference value is the exchange rate of Ps. $19.89 per USD as of March 31, 2022. | ||||||||
| (2) The reference values are for May 2022; the future of corn, $7.4875 USD/bushel, the future of soybeanmeal, $467.50USD/ton and the future of soybean oil, $69.94 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. | ||||||||
| First Quarter 2022 | ||||||||||
| Thousands of Mexican Pesos, as of March 31, 2022 | STRESS SCENARIO |
|||||||||
TYPE OF FINANCIAL
|
REASONABLE
|
VALUE OF THE RELATED COMMODITY |
EFFECT ON THE
|
EFFECT ON THE CASH FLOW |
||||||
Reference Value |
||||||||||
-50% |
-25% |
25% |
50% |
-50% |
-25% |
25% |
50% |
|||
Forward Vanilla y KO Fwd |
-$157,022 |
$9.95 |
$14.92 |
$24.86 |
$29.84 |
Direct |
-$1,954,312 |
-$1,055,667 |
$548,179 |
$1,247,615 |
CONFERENCE CALL INFORMATION
The Company will host its first quarter 2022 earnings call, on Friday, April 29th, 2022. The earnings call will take place at 11:00 am Central Time (12:00 pm ET).
To participate in the earnings call, please dial:
Toll free in the U.S.: 866 374 5140
Toll free in Mexico: 1 866 779 1760
Toll Local Mexico: 52 55 6722 5258
Toll in the Brazil: 800 761 0711
Confirmation Number: 80961847#
To access the event online:
https://onlinexperiences.com/Launch/QReg/ShowUUID=323791AF-2BBB-4FA1-B1FD-2C5920289323&LangLocaleID=1033
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 31,000 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.
