Bachoco Announces First Quarter 2015 Results
CELAYA, Mexico, April 23, 2015 /PRNewswire/ -- 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 ("1Q15") ended March 31, 2015. 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- 2015 vs. 2014
- Net sales increased 18.3% in 1Q15.
- EBITDA margin was 16.3% in 1Q15 vs 11.5% in 1Q14.
- Earnings per basic and diluted share were $2.11.
CEO COMMENTS
Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: "Positive external conditions presented in past quarters continued into the first quarter of this year; demand for chicken and egg products were strong during the quarter, while supply of these products remained stable.
On the internal side, we continued working on our efficiency and productivity efforts, while taking advantage of projects we implemented for getting closer to our customers.
All that led the Company to post positive results in the first quarter and above those reached in 1Q14.
In particular, it is worthwhile to mention the improvement in results reached by our U.S. operation during this quarter.
Our financial structure continued strengthening as we reached a net cash level of $10,781 million, which will allow us to support our growth plans.
Even though we have posted strong results in the past quarters, we are aware that the poultry industry is a volatile industry; therefore we will remain focused on continual improvements and efficiencies across all our processes, and closely monitor those external factors we cannot control."
RECENT DEVELOPMENTS.
At its 2015 annual shareholders meeting, the Company announced the paying of cash dividends in the amount of $1.5 pesos per share (or $18 pesos per ADR).
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 2014.
QUARTERLY RESULTS
NET SALES BY GEOGRAPHY |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Net sales |
11,406.0 |
9,643.5 |
1,762.5 |
18.3 |
|
Net sales in Mexico |
8,612.7 |
7,746.9 |
865.8 |
11.2 |
|
Net sales in the U.S. |
2,793.3 |
1,896.6 |
896.7 |
47.3 |
NET SALES BY SEGMENT |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Net sales |
11,406.0 |
9,643.5 |
1,762.5 |
18.3 |
|
Poultry |
10,445.3 |
8,790.2 |
1,655.1 |
18.8 |
|
Other |
960.7 |
853.3 |
107.4 |
12.6 |
NET VOLUME SOLD BY SEGMENT |
||||||
In tons |
Change |
|||||
1Q15 |
1Q14 |
Volume |
% |
|||
Total sales volume: |
484,497 |
441,921 |
42,577 |
9.63 |
||
Poultry |
387,692 |
358,938 |
28,754 |
8.01 |
||
Others |
96,805 |
82,982 |
13,823 |
16.66 |
||
In 1Q15, the Company's net sales totaled $11,406.0 million, $1,762.5 million or 18.3% more than $9,643.5 million reported in 1Q14. This is as a result of more volume sold and higher prices in our main product lines during the quarter.
In 1Q15, sales of our U.S. operations were strong and in line with our Mexico operation; it represented 24.5% of our total sales compared to 19.7% in 1Q14. About 15.0% of this increase is due to a change in the Mexican peso-U.S. dollar exchange rate in 1Q15 as compared to 1Q14.
GROSS PROFIT |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Cost of sales |
8,722.4 |
7,854.1 |
868.3 |
11.1 |
|
Gross profit |
2,683.6 |
1,789.3 |
894.2 |
50.0 |
|
Gross margin |
23.5% |
18.6% |
- |
- |
The cost of sales totaled $8,722.4 million, representing $868.3 million or 11.1% higher than $7,854.1 million reported in the same period of 2014, mainly due to the increase in volume sold.
The Company's gross profit in 1Q15 was $2,683.6 million, with a gross margin of 23.5%; this result is larger than the gross profit of $1,789.3 million and gross margin of 18.6% reported in 1Q14.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ("SG&A") |
|||||
In millions of pesos |
|||||
1Q15 |
1Q14 |
Change |
|||
$ |
$ |
$ |
% |
||
Total SG&A |
1,008.3 |
871.4 |
136.9 |
15.7 |
Total SG&A expenses in 1Q15 were $1,008.3 million, $136.9 million or 15.7% more than the $871.4 million reported 1Q14. This increase is mainly attributed to higher sales and distribution expenses as our volume sold increased. Total SG&A expenses, as a percentage of net sales, represent 8.8% in 1Q15, a reduction when compared with 9.0% in the same quarter of 2014.
OTHER INCOME (EXPENSE), NET |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Other income (expense), net |
- 13.2 |
- 35.0 |
21.8 |
- 62.2 |
Other income or other expenses includes the sale of unused assets; we register such sales as expenses when the sales price is below the book value of those assets.
In 1Q15, we had other expenses of $13.2 million, compared with other expenses of $35.0 million reported in 1Q14.
OPERATING INCOME |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Operating income |
1,662.1 |
882.9 |
779.2 |
88.2 |
|
Operating margin |
14.6% |
9.2% |
- |
- |
Operating income in 1Q15 totaled $1,662.1 million, or an operating margin of 14.6%, higher than an operating income of $882.9 million and a 9.2% in operating margin reported in 1Q14. The increase in operating income is mainly attributed to strong gross income in 1Q15 and stable expenses.
NET FINANCIAL INCOME |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Net Financial Income |
181.0 |
50.8 |
130.2 |
256.5 |
|
Financial Income |
208.7 |
11.4 |
197.3 |
1,728.9 |
|
Financial Expense |
27.7 |
39.4 |
- 11.7 |
- 29.6 |
In 1Q15, the Company reported net financial income of $181.0 million, compared to $50.8 million reported in the same period of 2014.
TAXES FOR THE PERIOD |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Total Taxes |
577.4 |
274.1 |
303.3 |
110.7 |
|
Income tax |
542.7 |
128.4 |
414.4 |
322.8 |
|
Deferred income tax |
34.7 |
145.7 |
- 111.1 |
- 76.2 |
Total taxes for the 1Q15 were $577.4 million, compared to $274.1 million in the same period of 2014. The variation is mainly attributed to higher operating results.
NET INCOME |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Net income |
1,265.7 |
659.6 |
606.1 |
91.9 |
|
Net margin |
11.1% |
6.8% |
- |
- |
|
Non-Controlling Interest income |
2.4 |
0.1 |
2.3 |
n/a |
|
Net controlling interest income |
1,263.3 |
659.5 |
603.8 |
n/a |
|
Basic and diluted income per share1 |
2.11 |
1.10 |
- |
n/a |
|
Basic and diluted income per ADR2 |
25.29 |
13.19 |
- |
n/a |
|
Weighted average Shares outstanding3 |
599,535 |
600,000 |
- |
0 |
|
1 In pesos |
The net income for 1Q15 was $1,265.7 million, representing a basic and diluted income of $2.11 pesos per share; this result compares to net income of $659.6 million, which represented a net income $1.10 pesos of basic and diluted income per share, in 1Q14. This is attributed to a strong performance in our operations. Net margin for the 1Q15 was 11.1% compared to 6.8% reported in 1Q14.
EBITDA AND ADJUSTED EBITDA |
|||||
In millions of pesos |
1Q15 |
1Q14 |
Change |
||
$ |
$ |
$ |
% |
||
Net controlling interest income |
1,263.3 |
659.7 |
603.7 |
91.5 |
|
Income tax expense (benefit) |
577.4 |
274.1 |
303.3 |
n/a |
|
Result in associates |
2.4 |
- 0.1 |
2.4 |
n/a |
|
Net finance (income) expense |
- 181.0 |
- 50.8 |
- 130.2 |
n/a |
|
Depreciation and amortization |
198.6 |
223.1 |
- 24.5 |
- 11.0 |
|
EBITDA |
1,860.7 |
1,106.0 |
754.7 |
68.2 |
|
EBITDA Margin (%) |
16.3 |
11.5 |
4.8 |
42.2 |
|
Other expense (income) net |
13.2 |
35.0 |
- 21.8 |
- 62.2 |
|
Adjusted EBITDA |
1,873.9 |
1,141.0 |
732.9 |
64.2 |
|
Adjusted EBITDA Margin |
16.43% |
11.83% |
- |
- |
|
Net sales |
11,406.0 |
9,643.4 |
1,762.6 |
18.3 |
EBITDA in 1Q15 reached $1,860.7 million, representing an EBITDA margin of 16.3%, compared to $1,106 million EBITDA in 1Q14 and 11.5% EBITDA margin.
The adjusted EBITDA in 1Q15 was $1,873.9 million, representing an adjusted EBITDA margin of 16.43%, compared to adjusted EBITDA of $1,141.0 million in 1Q14, with an adjusted EBITDA margin of 11.83%.
BALANCE SHEET DATA
BALANCE SHEET DATA |
|||||
In millions of pesos |
Mar 31, 2015 |
Dec. 31, 2014 |
Change |
||
$ |
$ |
$ |
% |
||
TOTAL ASSETS |
36,098.5 |
34,793.8 |
1,304.7 |
3.7 |
|
Cash and cash equivalents |
13,625.2 |
11,961.6 |
1,663.5 |
13.9 |
|
Accounts receivable |
2,153.1 |
2,976.5 |
- 823.5 |
- 27.7 |
|
TOTAL LIABILITIES |
10,403.0 |
10,431.7 |
- 28.7 |
- 0.3 |
|
Accounts payable |
3,139.8 |
3,384.3 |
- 244.5 |
- 7.2 |
|
Short-term debt |
795.3 |
798.0 |
- 2.7 |
- 0.3 |
|
Long-term debt |
2,048.6 |
1,652.5 |
396.1 |
24.0 |
|
TOTAL STOCKHOLDERS' EQUITY |
25,695.5 |
24,362.1 |
1,333.5 |
5.5 |
|
Capital stock |
1,173.9 |
1,174.4 |
- 0.6 |
- 0.0 |
Cash and equivalents as of March 31, 2015 totaled $13,625.2 million, up $1,663.5 million or 13.9% more than $11,961.6 million as of December 31, 2014.
Total debt as of March 31, 2015 totaled $2,843.9 million, compared to $2,450.5 million reported as of December 31, 2014, mainly as a result of higher long-term bank debt.
Net cash as of March 31, 2015 was $10,781.3 million, compared to net cash of $9,511.2 million as of December 31, 2014.
CAPEX
CAPITAL EXPENDITURES |
|||||
In millions of pesos |
2015 |
2014 |
Change |
||
$ |
$ |
$ |
% |
||
Capital Expenditures |
254.5 |
290.4 |
- 35.9 |
- 12.4 |
Total CAPEX for the 1Q15 was $254.5 million mainly allocated toward organic growth in Mexico, as well as productivity projects across all of our facilities.
STOCK INFORMATION
STOCK INFORMATION |
||
As of March 31, 2015 |
||
Total Shares |
600,000,000 |
|
Total free float |
26.75% |
|
Total shares in treasury as of March 31, 2015 |
558,365 |
|
Market cap (millions of pesos) |
$38,016 |
SHARE PRICES
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 |
Average |
Close |
Volume |
High |
Low |
Average |
Close |
Volume |
||
Mar-15 |
67.40 |
63.33 |
64.87 |
63.36 |
5,996,800 |
53.78 |
48.84 |
51.12 |
49.85 |
204,663 |
||
Feb-15 |
64.00 |
60.20 |
63.03 |
63.26 |
6,568,221 |
51.58 |
48.97 |
50.67 |
51.02 |
209,623 |
||
Jan-15 |
54.76 |
49.75 |
51.38 |
49.88 |
10,060,822 |
51.55 |
47.97 |
49.60 |
48.84 |
332,700 |
||
Dec-14 |
64.27 |
60.59 |
62.44 |
61.94 |
6,071,300 |
54.76 |
49.75 |
51.38 |
49.88 |
429,500 |
||
Nov-14 |
68.22 |
64.74 |
66.36 |
65.00 |
4,666,300 |
60.32 |
56.58 |
58.45 |
56.58 |
347,800 |
||
Oct-14 |
68.50 |
64.87 |
66.24 |
68.50 |
10,722,300 |
61.15 |
57.35 |
58.88 |
61.15 |
511,600 |
||
Source: yahoo finances |
ANALYST COVERAGE
Institution |
Analyst name |
|
ACTINVER |
Carlos Hermosillo |
|
BBVA BANCOMER |
Fernando Olvera |
|
GBM |
Miguel Mayorga |
|
INTERACCIONES |
Raul Ochoa |
|
JPMORGAN |
Pedro Leduc |
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $15.26 per USD$1.0, which corresponds to the rate at the close of March 31, 2015, 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 |
March 31, |
December 31, |
|||
In million pesos |
2015 |
2015 |
2014* |
||
TOTAL ASSETS |
$ 2,365.6 |
36,098.5 |
34,793.8 |
||
Total current assets |
1,428.1 |
21,793.4 |
20,852.0 |
||
Cash and cash equivalents |
892.9 |
13,625.2 |
11,961.6 |
||
Total accounts receivable |
141.1 |
2,153.1 |
2,976.5 |
||
Inventories |
273.1 |
4,168.1 |
4,469.5 |
||
Other current assets |
121.0 |
1,847.1 |
1,444.3 |
||
Total non current assets |
937.4 |
14,305.1 |
13,941.8 |
||
Net property, plant and equipment |
798.0 |
12,177.7 |
12,054.8 |
||
Other non current Assets |
139.4 |
2,127.4 |
1,887.0 |
||
TOTAL LIABILITIES |
$ 681.7 |
10,403.0 |
10,431.7 |
||
Total current liabilities |
339.3 |
5,178.0 |
5,655.5 |
||
Notes payable to banks |
52.1 |
795.3 |
798.0 |
||
Accounts payable |
205.8 |
3,139.8 |
3,384.3 |
||
Other taxes payable and other accruals |
81.4 |
1,242.8 |
1,473.2 |
||
Total long-term liabilities |
342.4 |
5,225.0 |
4,776.2 |
||
Long-term debt |
134.2 |
2,048.6 |
1,652.5 |
||
Other non current liabilities |
6.3 |
95.4 |
90.9 |
||
Deferred income taxes |
201.9 |
3,081.0 |
3,032.8 |
||
TOTAL STOCKHOLDERS' EQUITY |
$ 1,683.8 |
25,695.5 |
24,362.1 |
||
Capital stock |
76.9 |
1,173.9 |
1,174.4 |
||
Commission in shares issued |
26.2 |
399.6 |
399.6 |
||
Repurchased shares |
4.5 |
68.6 |
101.1 |
||
Retained earnings |
1,558.3 |
23,779.9 |
22,513.2 |
||
Others accounts |
14.8 |
226.5 |
129.1 |
||
Non controlling interest |
3.1 |
47.0 |
44.6 |
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 2,365.6 |
36,098.5 |
34,793.8 |
||
*Audited |
CONSOLIDATED STATEMENT OF INCOME |
|||||||
First Quarter Results, ended March 31: |
|||||||
-Unaudited- |
|||||||
U.S. Dollar |
|||||||
In millions pesos |
2015 |
2015 |
2014 |
Change |
|||
Net sales |
$ 747.4 |
11,406.0 |
9,643.4 |
18.3% |
|||
Cost of sales |
571.6 |
8,722.4 |
7,854.1 |
11.1% |
|||
Gross profit |
175.9 |
2,683.6 |
1,789.3 |
50.0% |
|||
SG&A |
66.1 |
1,008.3 |
871.4 |
15.7% |
|||
Other income (expenses), net |
- 0.9 |
-13.2 |
(35.0) |
-62.2% |
|||
Operating income |
108.9 |
1,662.1 |
882.9 |
88.2% |
|||
Net finance income |
11.9 |
181.0 |
50.8 |
256.5% |
|||
Income tax |
37.8 |
577.4 |
274.1 |
110.7% |
|||
Net Income |
$ 132.6 |
1,265.7 |
659.7 |
n/a |
|||
Non-controlling interest |
0.2 |
2.4 |
0.06 |
n/a |
|||
Net controlling interest profit |
83.1 |
1,263.3 |
659.7 |
n/a |
|||
Basic and diluted earnings per share |
0.14 |
2.1 |
1.10 |
n/a |
|||
Basic and diluted earnings per ADR |
1.66 |
25.3 |
13.19 |
n/a |
|||
Weighted average Shares outstanding1 |
599,535 |
599,535 |
600,000 |
-0.1% |
|||
EBITDA Result |
$ 121.9 |
1,860.7 |
1,106.0 |
68.2% |
|||
Gross margin |
23.5% |
23.5% |
18.6% |
||||
Operating margin |
14.6% |
14.6% |
9.2% |
||||
Net margin |
11.1% |
11.1% |
6.8% |
||||
EBITDA margin |
16.3% |
16.3% |
11.5% |
||||
1 In thousands |
CONSOLIDATED STATEMENT OF CASH FLOWS |
|||||
In million of pesos |
|||||
-Unaudited- |
|||||
U.S. Dollar |
March 31, |
||||
2015 |
2015 |
2014 |
|||
NET MAJORITY INCOME BEFORE INCOME TAX |
$ 120.8 |
1,843.1 |
933.8 |
||
ITEMS THAT DO NOT REQUIRE CASH: |
- |
- |
- |
||
ITEMS RELATING TO INVESTING ACTIVITIES: |
15.4 |
234.3 |
250.2 |
||
Depreciation and others |
13.1 |
199.4 |
223.1 |
||
Income (loss) on sale of plant and equipment |
2.3 |
34.8 |
27.2 |
||
Other Items |
- |
- |
- |
||
ITEMS RELATING TO FINANCING ACTIVITIES: |
1.7 |
25.3 |
26.1 |
||
Interest income (expense) |
1.8 |
27.7 |
26.1 |
||
Other Items |
(0.2) |
(2.4) |
- |
||
NET CASH GENERATED FROM NET INCOME BEFORE TAXES |
137.8 |
2,102.7 |
1,210.1 |
||
CASH GENERATED OR USED IN THE OPERATION: |
7.3 |
110.7 |
(382.9) |
||
Decrease (increase) in accounts receivable |
32.0 |
488.7 |
(141.5) |
||
Decrease (increase) in inventories |
20.6 |
314.5 |
27.1 |
||
Decrease (increase) in accounts payable |
(45.0) |
(687.0) |
(330.0) |
||
Decrease (increase) in other liabilities |
(0.4) |
(5.6) |
61.6 |
||
NET CASH FLOW FROM OPERATING ACTIVITIES |
145.0 |
2,213.4 |
827.2 |
||
NET CASH FLOW FROM INVESTING ACTIVITIES |
(18.7) |
(286.0) |
(679.3) |
||
Acquisition of property, plant and equipment |
(16.7) |
(254.5) |
(290.4) |
||
Proceeds from sales of property plant and equipment |
1.3 |
20.2 |
5.6 |
||
Other Items |
(3.4) |
(51.6) |
(394.5) |
||
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES |
126.3 |
1,927.4 |
147.9 |
||
Net cash provided by financing activities: |
22.3 |
339.6 |
191.2 |
||
Proceeds from loans |
71.2 |
1,085.8 |
442.0 |
||
Principal payments on loans |
(45.7) |
(697.6) |
(59.9) |
||
Dividends paid |
0.4 |
6.8 |
- |
||
Other items |
(3.6) |
(55.4) |
(190.9) |
||
Net increase (decrease) in cash and equivalents |
105.4 |
1,608.1 |
126.7 |
||
Cash and investments at the beginning of year |
$ 723.2 |
11,036.1 |
6,716.9 |
||
CASH AND INVESTMENTS AT END OF PERIOD |
$ 828.6 |
12,644.2 |
6,843.6 |
||
DERIVATIVES POSITION REPORT
First Quarter 2015 |
||||||||||
Thousands of Mexican Pesos, as of March 31, 2015 |
||||||||||
TYPE OF FINANCIAL |
OBJECTIVE |
NOTIONAL |
VALUE OF THE RELATED COMMODITY |
REASONABLE VALUE |
AMOUNTS DUE |
GUARANTIES REQUIRED |
||||
1Q-2015 |
4Q-2014 |
1Q-2015 |
4Q-2014 |
|||||||
Knock out forwards. |
Hedge and negotiation |
$ 305,200 |
$ 15.26 |
$ 14.75 |
$ 8,248 |
$ - |
0 |
The deals consider the possibility of margin calls but not another kind of guarantee |
||
Futures for corn and soybean meal |
Hedge |
$ 56,181 |
CORN |
CORN |
-$ 771 |
-$ 2,087 |
in 2015 |
|||
In USD per Bushel |
In USD per Bushel |
|||||||||
month |
price |
month |
price |
|||||||
May-2015 |
$ 3.763 |
Mar-2015 |
$ 3.970 |
|||||||
Jul-2015 |
$ 3.843 |
|||||||||
Sep-2015 |
$ 3.920 |
Sep-2015 |
$ 4.153 |
|||||||
Dec-2015 |
$ 4.008 |
Dec-2015 |
$ 4.210 |
|||||||
SOYBEAN MEAL |
SOYBEAN MEAL |
|||||||||
In USD per ton |
In USD per ton |
|||||||||
month |
price |
month |
price |
|||||||
Mar-2015 |
$ 4.0 |
|||||||||
May-2015 |
$ 326.8 |
|||||||||
Sep-2015 |
$ 4.2 |
|||||||||
Dec-2015 |
$ 4.2 |
|||||||||
Options of Corn |
Hedge and negotiation |
-$ 92 |
CORN |
CORN |
-$ 92 |
$ - |
2015 |
|||
In USD per Bushel |
In USD per Bushel |
|||||||||
month |
price |
month |
price |
|||||||
Mar-2015 |
$ 3.97 |
|||||||||
Jul-2015 |
$ 3.84 |
Jul-2015 |
$ 4.13 |
|||||||
Sep-2015 |
$ 3.92 |
Sep-2015 |
$ 4.15 |
|||||||
Dec-2015 |
$ 4.0075 |
Dec-2015 |
$ 4.21 |
|||||||
Options of soybean meal |
Hedge and negotiation |
$ 55 |
SOYBEAN MEAL |
SOYBEAN MEAL |
$ 55 |
-$ 494 |
2015 |
|||
In USD per ton |
In USD per ton |
|||||||||
month |
price |
month |
price |
|||||||
May-2015 |
$ 326.80 |
Ene-2015 |
$ 364.60 |
|||||||
Jul-2015 |
$ 325.20 |
Mar-2015 |
$ 347.60 |
|||||||
Ago-2015 |
$ 323.70 |
|||||||||
Options of Heating Oil |
Hedge and negotiation |
$ 216 |
Heating Oil |
Heating Oil |
$ 216 |
$ - |
2015 |
|||
In USD per gallon |
In US cents per pound |
|||||||||
month |
price |
month |
price |
|||||||
Jul-2015 |
$ 1.73 |
|||||||||
Ago-2015 |
$ 1.75 |
|||||||||
Sep-2015 |
$ 1.77 |
|||||||||
Oct-2015 |
$ 1.79 |
|||||||||
Nov-2015 |
$ 1.81 |
NOTES
-The total financial instruments not exceed 5% of total assets as of march 31, 2015.
-the notional value represents the net position as of march 31, 2015 at the exchange rate of ps.15.26 per one dollar.
-a negative value means an unfavorable effect for the company.
First Quarter 2015 |
||||||||
Thousands of Mexican Pesos, as of March 31, 2015 |
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 |
||||||||
-2.5% |
2.5% |
5.0% |
-2.5% |
2.5% |
5.0% |
|||
Forwards and Knock Out Forwards (1) |
$ 8,248 |
$14.88 |
$ 15.64 |
$ 16.02 |
Direct |
$ 618 |
$ - |
$ - |
-5% |
5% |
10% |
-5% |
5% |
10% |
|||
Futures of Corn: (2) |
-$ 771 |
$ 3.6 |
$ 4.0 |
$ 4.1 |
The effect will materialize as the inventory is consumed |
-$ 3,577 |
$ 2,034 |
$ 4,840 |
Futures of Soybean Meal: (2) |
$ 310.5 |
$ 343.1 |
$ 359.5 |
|||||
Futures for Soy Oil (2) |
$ 1.6 |
$ 1.8 |
$ 1.9 |
|||||
Options for Corn |
-$ 92 |
$ 3.7 |
$ 4.0 |
$ 4.2 |
-$ 297 |
$ 113 |
$ 319 |
|
Options of Soybean Meal |
$ - |
$ 310.5 |
$ 343.1 |
$ 359.5 |
-$ 268 |
$ 377 |
$ 700 |
|
Options of Heating Oil |
$ 1 |
$ 1.6 |
$ 1.8 |
$ 1.9 |
$ 901 |
$ - |
$ - |
NOTES
(1) the reference value is the exchange rate of ps. $15.26 per USD as of march 31, 2015.
(2) the reference values are; the future of corn for may 2015, $3.7625 USD/bushel, the future of soybean meal for may 2015, $326.8 USD/ton, and the future for heating oil for July 2015, $1.73 USD per gallon.
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 2015 |
||||||||||
Thousands of Mexican Pesos, as of March 31, 2015 |
STRESS SCENARIO |
|||||||||
TYPE OF FINANCIAL |
REASONABLE VALUE |
VALUE OF THE RELATED COMMODITY |
EFFECT ON THE |
EFFECT ON THE CASH FLOW |
||||||
Reference Value |
||||||||||
-50% |
-25% |
25% |
50% |
-50% |
-25% |
25% |
50% |
|||
Knock Out Forwards |
$ 8,248 |
$7.63 |
$11.45 |
$19.08 |
$22.89 |
Direct |
-$144,352 |
-$68,052 |
$0 |
$0 |
CONFERENCE CALL INFORMATION
The Company will host its first quarter 2015 earnings call, on Friday, April 24, 2015. The earnings call will take place at 9:00 am Central Time (10:00 am 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: https://www.yourconferencecenter.com/AlternateNumbers/alternatenumbers.aspx?100374&t=A&o=UHvgwUadtyIiFr
Confirmation Number: 39478078
Visit the following link to access the webcast: http://edge.media-server.com/m/p/qecg3wk5
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 64 distribution centers in Mexico, and a production complex in the United States. Currently the Company employs more than 25,000 people.
The Company is rated AA(MEX), representing high credit quality by Fitch Mexico, S.A. de C.V., and HR AA+ which signals that the Company and the offering both have high 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.
Contact Information
Daniel Salazar
[email protected]
+52(461)618 3555
SOURCE Industrias Bachoco, S.A.B. de C.V.
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