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 third quarter (“3Q22”) and nine months (“9M22”) ended on September 30, 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 20.9% in 3Q22 and increased 24.5% in 9M22
- EBITDA margin was 6.2% for 3Q22 and 12.3% for the 9M22
- SG&A as percentage of net sales was 8.6% and 8.3% for 3Q22 and 9M22 respectively.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated, “According to the seasonality of our industry, the third quarter usually shows adjustments on margins vs the first half of the year. In that regard, 3Q22 behaved as so.
We observed a decline in prices both in México and the U.S. markets when compared to the first half of 2022. While kept facing the impacts of the increases in cost of sales as a result of higher raw material prices both in USD and Mexican peso terms.
Increases in cost of sales represented 20.3% compared to 3Q22 and 22.7% when compared to the 9M21. Net sales on the other hand showed increases of 20.9% and 24.5% respectively, which is closely following the trend of our input costs.
The combination mentioned above, and the integration of revenue from RYC Alimentos that we have seen since the beginning of 2022, led us to an EBITDA of $1,525.8 million and a margin of 6.2% for the 3Q22 compared to the $1,127.4 million and margin of 5.6% of the same period of 2021. For the nine months of 2022, the EBITDA margin was 12.3%, also higher when compared to 10.7% EBITDA margin of the same period of 2021.
Under a landscape of volatile macroeconomic conditions, we had been able to keep our SG&A under control as a percentage of sales, reporting 8.6% for the quarter which compares to the 8.9% of 3Q21.
As a result, our operating income for 3Q22 was $1,131.2 million which represents a 4.6% margin; this compares to the $738.4 million and 3.7% margin achieved in 3Q21.
The accumulated results of the CAPEX of the nine months of 2022 were $2,954.9 million compared to $2,251.1 million for the same period of 2021. Remaining with a healthy financial for the Company as we reached a net cash level of $16,413.5 million, which will allow us to continue to support our growth plans.”
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 |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Sales |
|
24,457.8 |
20,229.0 |
4,228.8 |
20.9 |
Net sales in Mexico |
|
17,982.7 |
14,963.8 |
3,019.0 |
20.2 |
Net sales in the U.S. |
|
6,475.0 |
5,265.2 |
1,209.8 |
23.0 |
NET SALES BY SEGMENT |
|||||
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
$ |
Net Sales |
|
24,457.8 |
20,229.0 |
4,228.8 |
20.9 |
Poultry |
|
20,890.8 |
17,765.7 |
3,125.1 |
17.6 |
Other |
|
3,567.0 |
2,463.3 |
1,103.7 |
44.8 |
NET VOLUME SOLD BY SEGMENT |
|||||
In tons |
|
|
Change |
||
|
3Q22 |
3Q21 |
Volume |
% |
|
Total sales volume: |
578,421 |
570,381 |
8,039.4 |
1.4 |
|
Poultry |
433,861 |
442,665 |
(8,804.1) |
(2.0) |
|
Others |
144,560 |
127,716 |
16,843.4 |
13.2 |
|
The Company’s 3Q22 net sales totaled $24,457.8 million; $4,228.8 million or 20.9% more than the $20,229.0 million reported in 3Q21. The increase was mainly a result of higher volume sold in Others and higher prices across the main business lines vs same period of 2021.
In 3Q22, sales of our U.S. operations represented 26.5% of our total sales compared to a 26.0% in the same period of 2021.
GROSS PROFIT |
|
|
|
|
|
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Cost of sales |
|
21,189.7 |
17,619.0 |
3,570.7 |
20.3 |
Gross profit |
|
3,268.1 |
2,610.0 |
658.1 |
25.2 |
Gross margin |
|
13.4% |
12.9% |
- |
- |
In 3Q22, cost of sales was $21,189.7 million; $3,570.7 million or 20.3% higher than the $17,619.0 million reported in 3Q21. This increase was due to higher unit cost in our main business lines as a result of higher raw material prices in USD terms.
The Company´s gross profit in 3Q22 was $3,268.1 million, higher than the gross profit of $2,610.0 million in 3Q21, with a gross margin of 13.4% for 3Q22 vs 12.9% in 3Q21.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (“SG&A”) |
|||||
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Total SG&A |
|
2,114.2 |
1,790.9 |
323.3 |
18.1 |
Total SG&A expenses in 3Q22 were $2,114.2 million; $323.3 million higher than the $1,790.9 million reported in 3Q21. Total SG&A expenses as a percentage of net sales were 8.6% in 3Q22 and 8.9% in 3Q21.
OTHER INCOME (EXPENSE), NET |
|||||
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Other income (expense), net |
|
(22.6) |
(80.7) |
58.1 |
(72.0) |
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 3Q22, we recorded other expenses of $22.6 million, compared with other expenses of $80.7 million reported in 3Q21.
OPERATING INCOME |
|
|
|
|
|
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Operating income |
|
1,131.2 |
738.4 |
392.8 |
53.2 |
Operating margin |
|
4.6% |
3.7% |
- |
- |
Operating income in 3Q22 totaled $1,131.2 million; $392.8 million higher than the $738.4 million reported in 3Q21. This represents an operating margin of 4.6% for 3Q22, higher when compared to the same period of 2021.
NET FINANCIAL INCOME |
|
|
|
|
|
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Financial Income |
|
116.5 |
459.6 |
(343.1) |
(74.7) |
Financial Income |
|
275.4 |
527.5 |
(252.1) |
(47.8) |
Financial Expense |
|
158.9 |
67.9 |
91.0 |
134.0 |
In 3Q22, the Company reported net financial income of $116.5 million, compared to the net financial income of $459.6 million reported in the same period of 2021.
TAXES FOR THE PERIOD |
|
|
|
|
|
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Total Taxes |
|
285.3 |
380.6 |
(95.3) |
(25.0) |
Income tax |
|
169.8 |
(275.3) |
445.1 |
(161.7) |
Deferred income tax |
|
115.5 |
655.9 |
(540.4) |
(82.4) |
As a result of a higher operating income, Total taxes for the 3Q22 were $285.3 million compared with total taxes of $380.6 million in the same period of 2021.
NET controlling interest INCOME |
|
|
|
|
|
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net income |
|
962.4 |
817.4 |
145.0 |
17.7 |
Net margin |
|
3.9% |
4.0% |
- |
- |
Non-Controlling Interest income |
|
(9.7) |
(26.4) |
24.3 |
n/a |
Net controlling interest income |
|
972.1 |
843.8 |
128.3 |
n/a |
Basic and diluted income per share1 |
|
1.62 |
1.41 |
0.2 |
n/a |
Basic and diluted income per ADR2 |
|
19.46 |
16.88 |
2.6 |
n/a |
Weighted average Shares outstanding3 |
|
599,380 |
599,734 |
- |
- |
1 In pesos 2 in pesos, one ADR equals to twelve shares 3 In thousands of shares |
|||||
For the 3Q22 we had Net controlling interest income of $972.1 million, representing a basic and diluted income per share of $1.62 compared with a Net controlling interest income of $843.8 million, and $1.41 pesos of income per share in 3Q21. This increase was attributed to higher operating results.
EBITDA |
|
|
|||
In millions of pesos |
|
3Q22 |
3Q21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net controlling interest income |
|
972.1 |
843.8 |
128.3 |
15.2 |
Income tax expense (benefit) |
|
285.3 |
380.6 |
(95.3) |
(25.0) |
Result in associates |
|
(9.7) |
(26.4) |
16.7 |
(63.3) |
Net finance (income) expense |
|
(116.5) |
(459.6) |
343.1 |
(74.7) |
Depreciation and amortization |
|
394.6 |
389.0 |
5.6 |
1.5 |
EBITDA |
|
1,525.8 |
1,127.4 |
398.5 |
35.3 |
EBITDA Margin (%) |
|
6.2% |
5.6% |
- |
- |
Net revenues |
|
24,457.8 |
20,229.0 |
4,228.8 |
20.9 |
EBITDA in 3Q22 reached $1,525.8 million, representing an EBITDA margin of 6.2%, compared to an EBITDA of $1,127.4 million in 3Q21, with an EBITDA margin of 5.6%.
ACCUMULATED RESULTS
NET SALES BY GEOGRAPHY |
|
|
|
|
|
In millions of pesos |
|
9M22 |
9M21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Sales |
|
75,256.9 |
60,447.5 |
14,809.3 |
24.5 |
Net sales in Mexico |
|
55,918.9 |
45,530.7 |
10,388.2 |
22.8 |
Net sales in the U.S. |
|
19,337.9 |
14,916.8 |
4,421.1 |
29.6 |
NET SALES BY SEGMENT |
|
|
|
|
|
In millions of pesos |
|
9M22 |
9M21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Sales |
|
75,256.9 |
60,447.5 |
14,809.3 |
24.5 |
Poultry |
|
64,372.9 |
52,920.0 |
11,452.9 |
21.6 |
Other |
|
10,884.0 |
7,527.5 |
3,356.4 |
44.6 |
NET VOLUME SOLD BY SEGMENT |
|||||
In metric tons |
|
|
Change |
||
|
9M22 |
9M21 |
Volume |
% |
|
Total sales volume: |
1,753,821 |
1,712,125 |
41,695.8 |
2.4 |
|
Poultry |
1,313,071 |
1,301,129 |
11,941.3 |
0.9 |
|
Others |
440,750 |
410,995 |
29,754.5 |
7.2 |
|
During the nine months of 2022, net sales totaled $75,256.9 million; $14,809.3 million or 24.5% more than $60,447.5 million reported in the same period of 2021. The increase in sales is mainly attributable to higher volume sold in Others as part of the integration of RYC Alimentos, as well as higher prices in our main business lines when compared to the accumulated results of the nine months of 2021.
In 9M22, sales of our U.S. operations represented 25.7% of our total sales, compared with 24.7% in 9M21.
| OPERATING RESULTS | |||||
9M22 |
9M21 |
Change |
|||
$ |
$ |
$ |
% |
||
Cost of Sales |
60,948.7 |
49,659.7 |
11,289.0 |
22.7 |
|
Gross Profit |
14,308.2 |
10,787.9 |
3,520.3 |
32.6 |
|
Total SG&A |
6,236.7 |
5,157.4 |
1,079.2 |
20.9 |
|
Other Income (expense) |
32.9 |
(244.3) |
277.2 |
(113.5) |
|
Operating Income |
8,104.4 |
5,386.1 |
2,718.2 |
50.5 |
|
Net Financial Income |
38.6 |
682.2 |
(643.6) |
(94.3) |
|
Income Tax |
2,117.9 |
1,733.3 |
384.7 |
22.2 |
|
Net Income |
6,025.1 |
4,335.1 |
1,690.0 |
39.0 |
|
Non-controlling interest |
(47.6) |
(85.8) |
38.1 |
(44.5) |
|
Net controlling interest Income |
6,072.7 |
4,420.9 |
1,651.8 |
37.4 |
|
In 9M22, the cost of sales totaled $60,948.7 million; $11,289.0 million or 22.7% higher than the $49,659.7 million reported in 9M21.
As a result, we reached a gross profit of $14,308.2 million and a gross margin of 19.0% in 9M22, when compared to $10,787.9 million of gross profit and margin of 17.8% reached in the same period of 2021.
Total SG&A in 9M22 were $6,236.7 million; $1,079.2 million or 20.9% more than the $5,157.4 million reported in 9M21. In 9M22 total SG&A as a percentage of net sales represented 8.3% compared with 8.5% in 9M21.
In 9M22 we had other income of $32.9 million, compared with other expenses of $244.3 million reported in 9M21.
Operating income in 9M22 was $8,104.4 million, which represents an operating margin of 10.8%, an increase compared to the operating income of $5,386.1 million and the operating margin of 8.9% in 9M21.
Net financial income in 9M22 was $38.6 million, compared to a net financial income of $682.2 million in 9M21.
Total taxes were $2,117.9 million as of September 30, 2022. These taxes include $1,169.1 million of income tax and $948.9 million of deferred income taxes. These figures compare to total taxes of $1,733.3 million in 9M21.
All the above resulted in a Net controlling interest income of $6,072.7 million in 9M22, which represents $10.13 pesos of earnings per share, while in the 9M21 the Net controlling interest income totaled $4,420.9 million and $7.37 pesos of earnings per share.
EBITDA |
|
|
|
|
|
In millions of pesos |
|
9M22 |
9M21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net controlling interest profit |
|
6,072.7 |
4,420.9 |
1,651.8 |
37.4 |
Income tax expense (benefit) |
|
2,117.9 |
1,733.3 |
384.7 |
22.2 |
Result in associates |
|
(47.6) |
(85.8) |
38.1 |
(44.5) |
Net finance (income) expense |
|
(38.6) |
(682.2) |
643.6 |
(94.3) |
Depreciation and amortization |
|
1,150.9 |
1,092.1 |
58.9 |
5.4 |
EBITDA |
|
9,255.3 |
6,478.2 |
2,777.1 |
42.9 |
EBITDA Margin (%) |
|
12.3% |
10.7% |
- |
- |
Net revenues |
|
75,256.9 |
60,447.5 |
14,809.3 |
24.5 |
EBITDA in 9M22 reached $9,255.3 million, representing an EBITDA margin of 12.3%, compared to an EBITDA of $6,478.2 million in 9M21, with a margin of 10.7%.
BALANCE SHEET
BALANCE SHEET DATA |
|
|
|
|
|
In millions of pesos |
|
Sept. 30, 2022 |
Dec. 31st, 2021 |
Change |
|
|
|
$ |
$ |
$ |
% |
TOTAL ASSETS |
|
72,044.1 |
65,988.8 |
6,055.3 |
9.2 |
Cash and cash equivalents |
|
20,391.7 |
20,777.0 |
(385.3) |
(1.9) |
Accounts receivable |
|
5,815.2 |
5,108.5 |
706.8 |
13.8 |
TOTAL LIABILITIES |
|
18,862.3 |
17,704.7 |
1,157.6 |
6.5 |
Accounts payable |
|
6,008.8 |
10,200.7 |
(4,191.9) |
(41.1) |
Short-term debt |
|
981.7 |
1,993.9 |
(1,012.2) |
(50.8) |
Long-term debt |
|
2,996.5 |
- |
2,996.5 |
N/A |
TOTAL STOCKHOLDERS’ EQUITY |
|
53,181.8 |
48,284.1 |
4,897.8 |
10.1 |
Capital stock |
|
1,174.4 |
1,174.4 |
- |
- |
Cash and equivalents as of September 30, 2022 totaled $20,391.7 million vs $20,777.0 million as of December 31, 2021.
Total debt as of September 30, 2022 was $3,978.2 million, compared to $ 1,993.9 million reported as of December 31, 2021.
Net cash as of September 30, 2022 was $ 16,413.5 million, compared to net cash of $ 18,783.1 million as of December 31, 2021.
CAPITAL EXPENDITURES |
|||||
In millions of pesos |
|
9M22 |
9M21 |
Change |
|
|
|
$ |
$ |
$ |
% |
Capital Expenditures |
|
2,954.9 |
2,251.1 |
703.8 |
31.3 |
Total CAPEX for the 9M22 was $2,954.9 million and $2,251.1 million in 9M21, mainly allocated toward organic growth and productivity projects across all of our facilities.
STOCK INFORMATION |
||
As of September 30, 2022 |
||
Total Shares |
600,000,000 |
|
Total free float |
26.75% |
|
Market cap (millions of pesos) |
$43,458 |
|
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 |
|
September |
80.00 |
76.81 |
77.86 |
48.13 |
45.78 |
46.03 |
|
August |
79.98 |
75.34 |
79.97 |
48.05 |
43.97 |
47.33 |
|
July |
76.56 |
69.97 |
76.56 |
45.18 |
40.56 |
45.18 |
|
June |
76.90 |
68.56 |
72.43 |
47.25 |
39.70 |
43.35 |
|
May |
78.17 |
76.03 |
76.27 |
47.09 |
44.75 |
46.86 |
|
April |
77.83 |
74.96 |
77.83 |
46.64 |
44.42 |
45.78 |
|
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 |
|
BANK OF AMERICA |
Fernando Olvera |
|
BBVA BANCOMER |
Pablo Abraham Peregrina |
|
GBM |
Luis Rodrigo Willard Alonso |
|
INTERCAM |
Richard Horbach Martinez |
|
JP MORGAN |
Ulises Argote |
|
SANTANDER |
Alan Alanis Peña |
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars (“USD”) using an exchange rate of $20.13 per USD $1.0, which corresponds to the rate at the close of September 30, 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 | |||||||
| -Unaudited- | |||||||
In U.S. Dollar |
|
September 30, |
|
December 31, |
|||
| In million pesos | 2022 |
|
2022 |
|
2021* |
||
| TOTAL ASSETS | $ |
3,578.9 |
72,044.1 |
65,988.8 |
|||
| Total current assets |
|
2,036.1 |
40,987.2 |
37,845.6 |
|||
| Cash and cash equivalents |
|
1,013.0 |
20,391.7 |
20,777.0 |
|||
| Total accounts receivable |
|
288.9 |
5,815.2 |
5,108.5 |
|||
| Inventories |
|
636.1 |
12,805.3 |
9,145.6 |
|||
| Other current assets |
|
98.1 |
1,975.1 |
2,814.6 |
|||
| Total non current assets |
|
1,542.8 |
31,056.3 |
28,143.2 |
|||
| Net property, plant and equipment |
|
1,164.1 |
23,433.8 |
21,763.4 |
|||
| Other non current Assets |
|
378.7 |
7,622.5 |
6,379.8 |
|||
| TOTAL LIABILITIES | $ |
937.0 |
18,862.3 |
17,704.7 |
|||
| Total current liabilities |
|
478.5 |
9,632.2 |
12,835.3 |
|||
| Notes payable to banks |
|
48.8 |
981.7 |
1,993.9 |
|||
| Accounts payable |
|
298.5 |
6,008.8 |
10,200.7 |
|||
| Other taxes payable and other accruals |
|
131.2 |
2,641.7 |
640.7 |
|||
| Total long-term liabilities |
|
458.5 |
9,230.0 |
4,869.4 |
|||
| Long-term debt |
|
148.9 |
2,996.5 |
- |
|||
| Other non current liabilities |
|
50.4 |
1,013.7 |
1,027.9 |
|||
| Deferred income taxes |
|
259.3 |
5,219.9 |
3,841.5 |
|||
| TOTAL STOCKHOLDERS' EQUITY | $ |
2,641.9 |
53,181.8 |
48,284.1 |
|||
| Capital stock |
|
58.3 |
1,174.4 |
1,174.4 |
|||
| Commission in shares issued |
|
20.6 |
414.1 |
414.1 |
|||
| Retained earnings |
|
2,492.8 |
50,179.4 |
45,038.6 |
|||
| Others accounts |
|
48.9 |
983.8 |
1,179.2 |
|||
| Non controlling interest |
|
21.4 |
430.1 |
477.7 |
|||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
3,578.9 |
72,044.1 |
65,988.8 |
|||
| *Audited | |||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||
| Third Quarter Results, ended September 30th: | ||||||||||
| -Unaudited- | ||||||||||
U.S. Dollar |
|
|
|
|
||||||
| In millions pesos | 2022 |
|
2022 |
|
2021 |
|||||
| Net sales | $ |
1,215.0 |
|
24,457.8 |
|
20,229.0 |
|
|||
| Cost of sales |
|
1,052.6 |
|
21,189.7 |
|
17,619.0 |
|
|||
| Gross profit |
|
162.3 |
|
3,268.1 |
|
2,610.0 |
|
|||
| SG&A |
|
105.0 |
|
2,114.2 |
|
1,790.9 |
|
|||
| Other income (expenses), net |
|
(1.1 |
) |
(22.6 |
) |
(80.7 |
) |
|||
| Operating income |
|
56.2 |
|
1,131.2 |
|
738.4 |
|
|||
| Net finance income |
|
5.8 |
|
116.5 |
|
459.6 |
|
|||
| Income tax |
|
14.2 |
|
285.3 |
|
380.6 |
|
|||
| Net Income | $ |
47.8 |
|
962.4 |
|
817.4 |
|
|||
| Non-controlling interest |
|
(0.48 |
) |
(9.7 |
) |
(26.4 |
) |
|||
| Net controlling interest profit |
|
48.29 |
|
972.1 |
|
843.8 |
|
|||
| Basic and diluted earnings per share |
|
0.08 |
|
1.62 |
|
1.41 |
|
|||
| Basic and diluted earnings per ADR |
|
0.97 |
|
19.46 |
|
16.88 |
|
|||
| Weighted average Shares outstanding1 |
|
599,380 |
|
599,380 |
|
599,734 |
|
|||
| EBITDA Result | $ |
75.8 |
|
1,525.8 |
|
1,127.4 |
|
|||
| Gross margin |
|
13.4 |
% |
13.4 |
% |
12.9 |
% |
|||
| Operating margin |
|
4.6 |
% |
4.6 |
% |
3.7 |
% |
|||
| Net margin |
|
4.0 |
% |
3.9 |
% |
4.0 |
% |
|||
| EBITDA margin |
|
6.2 |
% |
6.2 |
% |
5.6 |
% |
|||
| 1 In thousands | ||||||||||
| CONSOLIDATED STATEMENT OF INCOME | ||||||||||
| Accumulated results, for the nine months ended September 30. | ||||||||||
| -Unaudited- | ||||||||||
U.S. Dollar |
||||||||||
| In millions pesos | 2022 |
2022 |
2021 |
|||||||
| Net sales | $ |
3,738.5 |
|
75,256.9 |
|
60,447.5 |
|
|||
| Cost of sales |
|
3,027.8 |
|
60,948.7 |
|
49,659.7 |
|
|||
| Gross profit |
|
710.8 |
|
14,308.2 |
|
10,787.9 |
|
|||
| Selling, general and administrative expenses |
|
309.8 |
|
6,236.7 |
|
5,157.4 |
|
|||
| Other income (expenses), net |
|
1.6 |
|
32.9 |
|
(244.3 |
) |
|||
| Operating income |
|
402.6 |
|
8,104.4 |
|
5,386.1 |
|
|||
| Net finance income |
|
1.92 |
|
38.6 |
|
682.24 |
|
|||
| Income tax |
|
105.2 |
|
2,117.9 |
|
1,733.3 |
|
|||
| Net income | $ |
299.3 |
|
6,025.1 |
|
4,335.1 |
|
|||
| Non-controlling interest |
|
(2.37 |
) |
(47.6 |
) |
(85.8 |
) |
|||
| Net controlling interest profit |
|
301.7 |
|
6,072.7 |
|
4,420.9 |
|
|||
| Basic and diluted earnings per share |
|
0.50 |
|
10.13 |
|
7.37 |
|
|||
| Basic and diluted earnings per ADR |
|
6.04 |
|
121.6 |
|
88.45 |
|
|||
| Weighted average Shares outstanding1 |
|
599,380 |
|
599,380 |
|
599,766 |
|
|||
| EBITDA Result | $ |
459.8 |
|
9,255.3 |
|
6,478.2 |
|
|||
| Gross margin |
|
19.0 |
% |
19.0 |
% |
17.8 |
% |
|||
| Operating margin |
|
10.8 |
% |
10.8 |
% |
8.9 |
% |
|||
| Net margin |
|
8.1 |
% |
8.0 |
% |
7.2 |
% |
|||
| EBITDA margin |
|
12.3 |
% |
12.3 |
% |
10.7 |
% |
|||
| 1 In thousands | ||||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||
| In million of pesos | |||||||||
| -Unaudited- | |||||||||
U.S. Dollar |
September 30, |
||||||||
2022 |
2022 |
2021 |
|||||||
| NET MAJORITY INCOME BEFORE INCOME TAX | $ |
404.5 |
|
8,143.0 |
|
6,068.4 |
|
||
| ITEMS RELATING TO INVESTING ACTIVITIES: |
|
66.7 |
|
1,342.8 |
|
1,226.7 |
|
||
| Depreciation and others |
|
74.4 |
|
1,498.6 |
|
1,358.3 |
|
||
| Income (loss) on sale of plant and equipment |
|
2.7 |
|
55.3 |
|
63.3 |
|
||
| Other Items |
|
(10.5 |
) |
(211.2 |
) |
(194.9 |
) |
||
| NET CASH GENERATED FROM NET INCOME BEFORE TAXES |
|
471.2 |
|
9,485.8 |
|
7,295.1 |
|
||
| CASH GENERATED OR USED IN THE OPERATION: |
|
(250.0 |
) |
(5,031.9 |
) |
(1,166.0 |
) |
||
| Decrease (increase) in accounts receivable |
|
(22.1 |
) |
(443.9 |
) |
(239.0 |
) |
||
| Decrease (increase) in inventories |
|
(195.7 |
) |
(3,938.8 |
) |
(1,487.0 |
) |
||
| Increase (decrease) in accounts payable |
|
(136.2 |
) |
(2,740.9 |
) |
1,791.9 |
|
||
| Other Items |
|
103.9 |
|
2,091.7 |
|
(1,231.9 |
) |
||
| NET CASH FLOW FROM OPERATING ACTIVITIES |
|
221.3 |
|
4,453.9 |
|
6,129.1 |
|
||
| NET CASH FLOW FROM INVESTING ACTIVITIES |
|
(162.7 |
) |
(3,275.3 |
) |
(1,629.1 |
) |
||
| Acquisition of property, plant and equipment |
|
(146.8 |
) |
(2,954.9 |
) |
(2,251.1 |
) |
||
| Proceeds from sales of property plant and equipment |
|
3.1 |
|
61.8 |
|
17.1 |
|
||
| Other Items |
|
(19.0 |
) |
(382.1 |
) |
604.9 |
|
||
| CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES |
|
58.6 |
|
1,178.6 |
|
4,500.0 |
|
||
| Net cash provided by financing activities: |
|
(74.2 |
) |
(1,494.0 |
) |
(3,654.4 |
) |
||
| Proceeds from loans |
|
195.2 |
|
3,930.0 |
|
1,237.2 |
|
||
| Principal payments on loans |
|
(96.7 |
) |
(1,945.7 |
) |
(1,903.8 |
) |
||
| Dividends paid |
|
(48.8 |
) |
(983.0 |
) |
(851.6 |
) |
||
| Other items |
|
(124.0 |
) |
(2,495.3 |
) |
(2,136.1 |
) |
||
| Net increase (decrease) in cash and equivalents |
|
(15.7 |
) |
(315.4 |
) |
845.6 |
|
||
| Cash and investments at the beginning of year | $ |
1,028.7 |
|
20,707.1 |
|
19,242.4 |
|
||
| CASH AND INVESTMENTS AT END OF PERIOD | $ |
1,013.0 |
|
20,391.7 |
|
20,088.0 |
|
||
| Third Quarter 2022 | ||||||||||
| Thousands of Mexican Pesos, as of September 30, 2022 | ||||||||||
| TYPE OF FINANCIAL INSTRUMENT | OBJECTIVE | NOTIONAL | VALUE OF THE RELATED COMMODITY | REASONABLE VALUE | AMOUNTS DUE BY YEAR | GUARANTIES REQUIRED | ||||
| 3Q-2022 | 2Q-2022 | 3Q-2022 | 2Q-2022 | |||||||
| Forward Vanilla y KO Fwd | Hedge | $ 150,699 |
$ 20.13 |
$ 20.14 |
$ -48,982 |
$ -80,565 |
69% in 2022 and 31% in 2023 | The deals consider the possibility of margin calls but not another kind of guarantee | ||
| Futures for corn, soybean meal, soybean oil and natural gas | Hedge | $ 511,252 |
CORN | CORN | $ 12,462 |
$ 24,903 |
98% in 2022 and 2% in 2023 | |||
| In USD per Bushel | In USD per Bushel | |||||||||
| month | price | month | price | |||||||
| Sep-22 | $ 6.288 |
|||||||||
| Dec-22 | $ 6.775 |
Dec-22 | $ 6.198 |
|||||||
| SOYBEAN MEAL | SOYBEAN MEAL | |||||||||
| In USD per ton | In USD per ton | |||||||||
| month | price | month | price | |||||||
| Aug-22 | $ 435.5 |
|||||||||
| Sep-22 | $ 416.1 |
|||||||||
| Oct-22 | $ 405.7 |
|||||||||
| Dec-22 | $ 403.0 |
Dec-22 | $ 406.7 |
|||||||
| SOYBEAN OIL | SOYBEAN OIL | |||||||||
| In US cents per pound | In US cents per pound | |||||||||
| Month | Price | Month | Price | |||||||
Aug-22 |
$ 67.01 |
|||||||||
| Dec-22 | $ 61.56 |
Sep-22 |
$ 65.68 |
|||||||
| NATURAL GAS | ||||||||||
| In USD/MM BTU | ||||||||||
| Month | Price | |||||||||
| Nov-22 | $ 6.766 |
|||||||||
| Dec-22 | $ 7.065 |
|||||||||
| Jan-23 | $ 7.247 |
|||||||||
| Feb-23 | $ 6.937 |
|||||||||
| Options of Corn | Hedge | $ 314,868 |
CORN | CORN | $ 37,181 |
$ 27,649 |
83% in 2022 and 17% in 2023 | |||
| In USD per Bushel | In USD per Bushel | |||||||||
| month | price | month | price | |||||||
| Sep-22 | $ 6.288 |
|||||||||
| Dec-22 | $ 6.775 |
Dec-22 | $ 6.198 |
|||||||
| Mar-23 | $ 6.840 |
Mar-23 | $ 6.263 |
|||||||
| Options of soybean meal | Hedge | $ 439,720 |
SOYBEAN MEAL | SOYBEAN MEAL | $ 12,013 |
$ 34,539 |
57% in 2022 and 43% in 2023 | |||
| In USD per ton | In USD per ton | |||||||||
| month | price | month | price | |||||||
| Aug-22 | $ 435.5 |
|||||||||
| Sep-22 | $ 416.1 |
|||||||||
| Oct-22 | $ 405.7 |
|||||||||
| Dec-22 | $ 403.0 |
Dec-22 | $ 406.7 |
|||||||
| Jan-23 | $ 401.3 |
Jan-23 | $ 405.9 |
|||||||
| Mar-23 | $ 397.2 |
Mar-23 | $ 401.3 |
|||||||
| May-23 | $ 395.0 |
May-23 | $ 398.3 |
|||||||
| -The total financial instruments do not exceed 5% of total assets as of September 30, 2022. | ||||||||||
| -The notional value represents the net position as of September 30, 2022 at the exchange rate of Ps.20.13 per one dollar. | ||||||||||
| -A negative value means an unfavorable effect for the Company. | ||||||||||
| Third Quarter 2022 | ||||||||
| Thousands of Mexican Pesos, as of September 30, 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 | -$ 48,982 |
$19.63 |
$ 20.63 |
$ 21.14 |
Direct | -$124,810 |
$ 26,845 |
$ 57,145 |
-5% |
5% |
10% |
-5% |
5% |
10% |
|||
| Futures of Corn: (2) | $ 12,462 |
$ 6.436 |
$ 7.114 |
$ 7.453 |
The effect will materialize as the inventory is consumed | -$ 13,101 |
$ 38,024 |
$ 63,587 |
| Futures of Soybean Meal: (2) | $ 382.9 |
$ 423.2 |
$ 443.3 |
|||||
| Futures for Soy Oil (2) | $ 58.5 |
$ 64.6 |
$ 67.7 |
|||||
| Futures for Natural Gas (2) | $ 6.4 |
$ 7.1 |
$ 7.4 |
|||||
| Options for Corn | $ 37,181 |
$ 6.436 |
$ 7.114 |
$ 7.453 |
$ 21,438 |
$ 52,925 |
$ 68,668 |
|
| Options of Soybean Meal | $ 12,013 |
$ 382.9 |
$ 423.2 |
$ 443.3 |
-$ 9,973 |
$ 33,999 |
$ 55,985 |
|
| (1) The reference value is the exchange rate of Ps. $20.13 per USD as of September 30, 2022. | ||||||||
| (2) The reference values are: future of corn Dec 2022, $6.7750 USD/bushel, the future of soybeanmeal Dec 2022, $403.00 USD/ton, the future of soybean oil Dec 2022, $61.56 usd cts / pound and the future of natural gas Nov 2022, $6.77usd/ MM BTU | ||||||||
| 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. | ||||||||
| Third Quarter 2022 | ||||||||||
| Thousands of Mexican Pesos, as of September 30, 2022 | 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 y KO Fwd | -$48,982 |
$10.07 |
$15.10 |
$25.16 |
$30.20 |
Direct | -$1,565,538 |
-$807,260 |
$484,940 |
$1,034,577 |
CONFERENCE CALL INFORMATION
The Company will host its second quarter 2022 earnings call on Tuesday October 25th, 2022. The earnings call will take place at 8:30 am Central Time (9:30 am 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
To access the event online:
https://onlinexperiences.com/Launch/QReg/ShowUUID=C2665A6D-28B4-4A5B-95C3-99B542C27989&LangLocaleID=1033
Confirmation Number: 36258927#
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 32,000 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.
