CELAYA, Mexico,
Oct. 23, 2019 /PRNewswire/ --
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 ("3Q19") and first nine
months of 2019 ("9M19") ended on September
30th, 2019. All figures have been prepared in
accordance with International Financial Reporting Standard ("IFRS")
and are presented in nominal million Mexican Pesos ("$").
HIGHLIGHTS 2019
- Net sales increased 8.5% in 3Q19 and 1.9% in 9M19
- SG&A expenses as a percentage of net sales were 9.8% in
3Q19 and 9.7% in 9M19
- EBITDA margin was 9.8% for 3Q19 and 10.0% in 9M19
- Earnings per basic and diluted share were $1.85 for 3Q18 and $5.00 for 9M19.
CEO COMMENTS
Mr. Rodolfo Ramos
Arvizu, Chief Executive Officer of
Bachoco, stated: "We entered the
third quarter with good demand conditions in the poultry market
which resulted in good unseasonal prices for the first part of the
quarter. Mainly, as a result of a good balance between supply and
demand and due to less uncertain conditions in the economic
environment in Mexico, when
compared to the same period of 2018.
This allowed us to reach an increase in total sales of
8.5% in the quarter, and an increase of 1.9% for the 9M19, when
compared to the same periods of 2018 respectively.
In terms of cost of sales, prices of our main raw material for
both corn and soybean meal, started at high levels and dropped by
the end of the quarter, which combined with our hedging strategy
allowed us to report a lower cost for 3Q19 when compared to the
same period of 2018.
As a result, we reached an EBITDA of $1,505.8 million in 3Q19, significantly higher
than the EBITDA in the same quarter of 2018. For the third quarter,
our EBITDA margin in 3Q19 was 9.8% versus a 0.5% margin in 3Q18. As
a result, our EBITDA margin for the nine months of this year was
10.0%, higher when compared to 9.1% EBITDA margin of the same
period of 2018.
We reached an income per share of $1.85 pesos, which one of the highest for the
previous five years for a third quarter. For the first 9M19 our
income per share was $5.00 pesos
higher than the $4.43 pesos for the
same period of 2018.
On the other hand, SG&A expenses in 3Q19 were $1,497.6, meaning a reduction of $1.4 million vs 3Q18 that were $1,499.1 million. Total SG&A expenses as a
percentage of net sales represented 9.8% in 3Q19 and 10.6% in
3Q18.
Our financial structure continued strong as we ended the
quarter with a net cash of $13,275.3
million, which will allow us to continue supporting our
growth plans".
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 2018.
QUARTERLY RESULTS
NET SALES BY
GEOGRAPHY
|
|
|
|
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Net Sales
|
|
15,312.9
|
14,114.4
|
1,198.4
|
8.5
|
Net sales in
Mexico
|
|
10,981.4
|
9,865.0
|
1,116.4
|
11.3
|
Net sales in the
U.S.
|
|
4,331.5
|
4,249.4
|
82.1
|
1.9
|
NET SALES BY
SEGMENT
|
|
|
|
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Net Sales
|
|
15,312.9
|
14,114.4
|
1,198.4
|
8.5
|
Poultry
|
|
13,879.8
|
12,844.7
|
1,035.0
|
8.1
|
Other
|
|
1,433.1
|
1,269.7
|
163.4
|
12.9
|
NET VOLUME SOLD BY
SEGMENT
|
|
|
|
|
In tons
|
|
|
|
Change
|
|
3Q19
|
3Q18
|
Volume
|
%
|
Total sales
volume:
|
550,640
|
539,823
|
10,816.4
|
2.0
|
Poultry
|
424,645
|
441,135
|
(16,490.0)
|
(3.7)
|
Others
|
125,994
|
98,688
|
27,306.4
|
27.7
|
The Company's 3Q19 net sales totaled $15,312.9 million; $1,198.4 million or 8.5% more than
$14,114.4 million reported in 3Q18. The increase is a
result of better prices in poultry and higher volume sold in our
Other segment, particularly in balance feed.
In 3Q19, sales of our U.S. operations represented 28.3% of our
total sales compared to 30.1% in 3Q18.
GROSS
PROFIT
|
|
|
|
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Cost of
sales
|
|
12,706.5
|
12,955.6
|
(249.0)
|
(1.9)
|
Gross
profit
|
|
2,606.4
|
1,158.9
|
1,447.5
|
124.9
|
Gross
margin
|
|
17.0%
|
8.2%
|
-
|
-
|
In 3Q19, cost of sales was $12,706.5
million; $249.0 million or
1.9% lower than $12,955.6 million
reported in 3Q18. This decrease was mainly due to lower unit cost
in our main business lines and due to lower volume sold in
poultry.
The Company's gross profit in 3Q19 was $2,606.4 million, higher than the gross profit of
$1,158.9 million in 3Q18, with a
gross margin of 17.0% for 3Q19 vs 8.2% in 3Q18.
SELLING, GENERAL
AND ADMINISTRATIVE EXPENSES ("SG&A")
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Total
SG&A
|
|
1,497.6
|
1,499.1
|
(1.4)
|
(0.1)
|
Total SG&A expenses in 3Q19 were $1,497.6 million; $1.4
million lower than the $1,499.1
million reported in 3Q18. Total SG&A expenses as a
percentage of net sales represented 9.8% in 3Q19 and 10.6% in
3Q18.
OTHER INCOME
(EXPENSE), NET
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Other income
(expense), net
|
|
73.0
|
79.7
|
(6.7)
|
(8.4)
|
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 3Q19, we recorded other income of $73.0 million, compared with other income of
$79.7 million reported in 3Q18.
OPERATING
INCOME
|
|
|
|
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Operating
income
|
|
1,181.8
|
(260.5)
|
1,442.3
|
(553.7)
|
Operating
margin
|
|
7.7%
|
(1.8)%
|
-
|
-
|
Operating income in 3Q19 totaled $1,181.8
million; $1,442.3 million
higher than the Operating loss of $260.5
million reported in 3Q18. This represents a positive
operating margin of 7.7% for 3Q19, versus a negative operating
margin in the same period of 2018. The increase in operating income
is mainly attributed to higher Poultry prices and higher volume
sold in Other segment, combined with lower cost of sales and lower
SG&A.
NET FINANCIAL
INCOME
|
|
|
|
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Net Financial
Income
|
|
405.7
|
(63.6)
|
469.3
|
(738.0)
|
Financial
Income
|
|
486.7
|
294.1
|
192.5
|
65.5
|
Financial
Expense
|
|
81.0
|
357.7
|
(276.8)
|
(77.4)
|
In 3Q19, the Company reported net financial income of
$405.7 million, compared to a
negative financial income of $63.6
million reported in the same period of 2018. The increase is
mainly attributed to higher exchange rate gains.
TAXES FOR THE
PERIOD
|
|
|
|
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Total
Taxes
|
|
474.4
|
(136.6)
|
611.0
|
(447.3)
|
Income tax
|
|
48.2
|
(208.4)
|
256.6
|
(123.1)
|
Deferred income
tax
|
|
426.1
|
71.8
|
354.4
|
493.8
|
|
|
|
|
|
|
|
Total taxes for the 3Q19 were $474.4
million, which is higher when compared with total taxes of
the same period of 2018. This is attributed to higher operating
income in 3Q19.
NET
INCOME
|
|
|
|
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Net income
|
|
1,113.1
|
(187.5)
|
1,300.6
|
(693.8)
|
Net margin
|
|
7.3%
|
(1.3%)
|
-
|
-
|
Basic and diluted
earnings per share1
|
|
1.85
|
(0.32)
|
2.2
|
n/a
|
Basic and diluted
earnings per ADR2
|
|
22.23
|
(3.79)
|
26.0
|
n/a
|
Weighted average
Shares outstanding3
|
|
600,000
|
600,000
|
-
|
-
|
1In pesos
|
|
|
|
|
|
2in pesos, one ADR equals to twelve
shares
|
|
|
|
|
|
3In thousands of shares
|
|
|
|
|
|
The net income for 3Q19 was $1,113.1
million, representing a basic and diluted income of
$1.85 pesos per share, compared with
a net loss of $187.5 million, which
represented a $0.32 pesos of net loss
per share in 3Q18. This increase is mainly attributed to
higher operating results. Net margin in 3Q19 was 7.3%
compared to a negative margin of 1.3% reported in 3Q18.
EBITDA
|
|
|
In millions of
pesos
|
|
3Q19
|
3Q18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Net income
|
|
1,111.3
|
(189.7)
|
1,301.1
|
(685.8)
|
Income
tax expense (benefit)
|
|
474.4
|
(136.6)
|
611.0
|
(447.3)
|
Result
in associates
|
|
1.8
|
2.3
|
(0.5)
|
(21.8)
|
Net
finance (income) expense
|
|
(405.7)
|
63.6
|
(469.3)
|
(738.0)
|
Depreciation and amortization
|
|
324.0
|
336.6
|
(12.6)
|
(3.7)
|
EBITDA
|
|
1,505.8
|
76.2
|
1,429.7
|
1,877.3
|
EBITDA Margin
(%)
|
|
9.8%
|
0.5%
|
-
|
-
|
Net
revenues
|
|
15,312.9
|
14,114.4
|
1,198.4
|
8.5
|
EBITDA in 3Q19 reached $1,505.8
million representing an EBITDA margin of 9.8%, compared to
an EBITDA of $76.2 million in 3Q18,
with an EBITDA margin of 0.5%.
ACCUMULATED RESULTS
NET SALES BY
GEOGRAPHY
|
|
|
|
|
In millions of
pesos
|
|
9M19
|
9M18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Net Sales
|
|
46,520.6
|
45,631.1
|
889.5
|
1.9
|
Net sales in
Mexico
|
|
33,815.4
|
32,510.5
|
1,304.9
|
4.0
|
Net sales in the
U.S.
|
|
12,705.2
|
13,120.6
|
(415.4)
|
(3.2)
|
NET SALES BY
SEGMENT
|
|
|
|
|
In millions of
pesos
|
|
9M19
|
9M18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Net Sales
|
|
46,520.6
|
45,631.1
|
889.5
|
1.9
|
Poultry
|
|
41,991.8
|
41,335.4
|
656.4
|
1.6
|
Other
|
|
4,528.8
|
4,295.7
|
233.1
|
5.4
|
NET VOLUME SOLD BY
SEGMENT
|
|
|
|
In metric
tons
|
|
|
Change
|
|
9M19
|
9M18
|
Volume
|
%
|
Total sales
volume:
|
1,679,544
|
1,637,860
|
41,684
|
2.55
|
Poultry
|
1,286,960
|
1,294,632
|
(7,671)
|
(0.6)
|
Others
|
392,584
|
343,229
|
49,355
|
14.38
|
|
|
|
|
|
|
|
During the 9M19, net sales totaled $46,520.6 million; $889.5
million or 1.9% more than the $45,631.1 million reported in the same period of
2018.
In 9M19, sales of our U.S. operations represented 27.3% of our
total sales, compared with 28.8% in 9M18.
OPERATING
RESULTS
|
|
|
|
|
In millions of
pesos
|
|
9M19
|
9M18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Cost of
Sales
|
|
38,386.7
|
38,149.7
|
237.1
|
0.6
|
Gross
Profit
|
|
8,133.9
|
7,481.4
|
652.5
|
8.7
|
Total
SG&A
|
|
4,522.8
|
4,373.7
|
149.1
|
3.4
|
Other Income
(expense)
|
|
69.6
|
110.7
|
(41.0)
|
(37.1)
|
Operating
Income
|
|
3,680.7
|
3,218.4
|
462.3
|
14.4
|
Net Financial
Income
|
|
573.3
|
404.8
|
168.5
|
41.6
|
Income Tax
|
|
1,246.4
|
973.0
|
273.4
|
28.1
|
Net Income
|
|
3,007.5
|
2,650.1
|
357.4
|
13.5
|
In the 9M19, the cost of sales totaled $38,386.7 million; $237.1
million or 0.6% higher than $38,149.7
million reported in the 9M18.
As a result, we reached a gross profit of $8,133.9 million and a gross margin of 17.5% in
9M19, when compare to $7,481.4
million of gross profit and a gross margin of 16.4% reached
in the same period of 2018.
Total SG&A expenses in 9M19 were $4,522.8 million; $149.1
million or 3.4% more than the $4,373.7 million reported in 9M18. In 9M19 total
SG&A expenses as a percentage of net sales represented 9.7%,
slightly higher compared to the 9.6% on 9M18.
In 9M19 we had other income of $69.6
million, compared with other income of $110.7 million reported in 9M18.
The operating income in 9M19 was $3,680.7
million, which represents an operating margin of 7.9%, an
increase from an operating income of $3,218.4 million and an operating margin of 7.1%
in 9M18.
The net financial income in 9M19 was $573.3 million, higher when compared to a net
financial income of $404.8 million in
9M18.
Total taxes were $1,246.4 million
as of September 30th,
2019. These taxes include $749.8
million of income tax and $496.7
million of deferred income taxes. This figure compares to
total taxes of $973.0 million in
9M18; the increase was mainly attributed to a higher income before
taxes.
All the above resulted in a net income of $3,007.5 million or 6.5% of net margin in the
9M19, which represents $5.00 pesos of
earnings per share; while in the 9M18 the net income totaled
$2,650.1 million, 5.8% of net margin
and $4.40 pesos of net income per
share.
EBITDA
|
|
|
|
|
In millions of
pesos
|
|
9M19
|
9M18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Net controlling
interest profit
|
|
2,998.9
|
2,640.3
|
358.7
|
13.6
|
Income
tax expense (benefit)
|
|
1,246.4
|
973.0
|
273.4
|
28.1
|
Result
in associates
|
|
8.6
|
9.9
|
(1.3)
|
(13.0)
|
Net
finance (income) expense
|
|
(573.3)
|
(404.8)
|
(168.5)
|
41.6
|
Depreciation and amortization
|
|
963.3
|
937.4
|
26.0
|
2.8
|
EBITDA
|
|
4,644.0
|
4,155.7
|
488.3
|
11.7
|
EBITDA Margin
(%)
|
|
10.0%
|
9.1%
|
-
|
-
|
Net
revenues
|
|
46,520.6
|
45,631.1
|
889.5
|
1.9
|
EBITDA in 9M19 reached $4,644.0
million, representing an EBITDA margin of 10.0%, compared to
EBITDA of $4,155.7 million in 9M18,
with an EBITDA margin of 9.1%.
BALANCE SHEET
BALANCE SHEET
DATA
|
|
|
|
|
In millions of
pesos
|
|
Sep 30, 2019
|
Dec. 31st,
2018
|
Change
|
|
|
$
|
$
|
$
|
%
|
TOTAL
ASSETS
|
|
55,450.3
|
52,865.6
|
2,584.7
|
4.9
|
Cash and cash
equivalents
|
|
18,283.1
|
18,458.5
|
(175.4)
|
(1.0)
|
Accounts
receivable
|
|
4,179.9
|
3,486.5
|
693.5
|
19.9
|
TOTAL
LIABILITIES
|
|
15,111.2
|
14,699.9
|
411.3
|
2.8
|
Accounts
payable
|
|
3,478.9
|
4,228.4
|
(749.6)
|
(17.7)
|
Short-term
debt
|
|
3,514.7
|
3,492.8
|
21.9
|
0.6
|
Long-term
debt
|
|
1,493.1
|
1,544.8
|
(51.7)
|
(3.3)
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
40,339.2
|
38,165.7
|
2,173.4
|
5.7
|
Capital
stock
|
|
1,174.4
|
1,174.3
|
0.1
|
0.0
|
Cash and equivalents as of September
30th, 2019 totaled $18,283.1 million vs $18,458.6 million as of December 31, 2018.
Total debt as of September
30th, 2019 was $5,007.8
million, compared to $5,037.6
million reported as of December 31,
2018.
Net cash as of September
30th, 2019 was $13,275.3
million, compared to net cash of $13,420.9 million as of December 31, 2018.
CAPITAL
EXPENDITURES
|
In millions of
pesos
|
|
9M19
|
9M18
|
Change
|
|
|
$
|
$
|
$
|
%
|
Capital
Expenditures
|
|
1,301.2
|
1,329.0
|
(27.8)
|
(2.1 )
|
Total CAPEX for the 9M19 was $1,301.2
million vs $1,329.0 million in
9M18, mainly allocated toward organic growth and productivity
projects across all of our facilities.
STOCK
INFORMATION
|
As of September 30,
2019
|
Total
Shares
|
|
600,000,000
|
Total free
float
|
|
26.75%
|
Market cap (millions
of pesos)
|
|
$52,116
|
Source: Yahoo Finances
|
|
|
SHARE
PRICE
|
|
|
|
|
|
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
|
|
Sep-19
|
92.44
|
84.51
|
86.86
|
|
56.34
|
51.68
|
53.23
|
|
Aug-19
|
91.65
|
82.89
|
91.65
|
|
55.01
|
50.41
|
55.01
|
|
Jul-19
|
86.70
|
80.00
|
86.70
|
|
54.18
|
50.09
|
54.04
|
|
Jun-19
|
84.98
|
79.99
|
80.40
|
|
52.92
|
50.11
|
50.67
|
|
May-19
|
87.22
|
77.68
|
86.25
|
|
55.01
|
49.42
|
52.50
|
|
Apr-19
|
78.67
|
71.14
|
77.68
|
|
49.75
|
45.23
|
49.00
|
|
Mar-19
|
75.88
|
70.51
|
74.59
|
|
47.98
|
45.72
|
46.10
|
|
Feb-19
|
76.06
|
72.83
|
74.84
|
|
47.74
|
45.17
|
46.93
|
|
Jan-19
|
74.37
|
65.38
|
73.31
|
|
46.53
|
40.07
|
46.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYST
COVERAGE
|
|
|
|
|
|
Institution
|
Analyst name
|
E-mail
|
ACTINVER
|
José Antonio
Cebeira
|
jcebeira@actinver.com.mx
|
APALACHE
ANALISIS
|
Jorge
Plácido
|
jorge.placido@apalache.mx
|
BBVA
BANCOMER
|
Pablo Abraham
Peregrina
|
pablo.abraham@bbva.com
|
GBM
|
Miguel
Tortolero
|
matortolero@gbm.com.mx
|
INVEX
|
Giselle
Mojica
|
gmojica@invex.com
|
JP MORGAN
|
Ulises
Argote
|
ulises.argote@jpmorgan.com
|
SANTANDER
|
Luis
Miranda
|
lmiranda@santander.com.mx
|
APPENDICES
For reference, some figures have
been translated into millions of U.S. dollars ("USD") using an
exchange rate of $19.72 per USD
$1.0, which corresponds to the rate
at the close of September 30, 2019,
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 INCOME
|
|
Third Quarter
Results, ended September 30th:
|
|
|
-Unaudited-
|
|
|
|
|
U.S.
Dollar
|
|
|
In millions
pesos
|
2019
|
2019
|
2018*
|
Net
sales
|
$
776.5
|
15,312.9
|
14,114.4
|
Cost of
sales
|
644.3
|
12,706.5
|
12,955.6
|
Gross
profit
|
132.2
|
2,606.4
|
1,158.9
|
SG&A
|
75.9
|
1,497.6
|
1,499.1
|
Other income
(expenses), net
|
3.7
|
73.0
|
79.7
|
Operating
income
|
59.9
|
1,181.8
|
-260.5
|
Net finance
income
|
20.6
|
405.7
|
-63.6
|
Income
tax
|
24.1
|
474.4
|
(136.6)
|
Net
Income
|
$
56.4
|
1,113.1
|
(187.5)
|
|
|
|
|
Non-controlling
interest
|
0.09
|
1.8
|
2.3
|
Net controlling
interest profit
|
56.4
|
1,111.3
|
(189.7)
|
Basic and diluted
earnings per share
|
0.09
|
1.85
|
(0.32)
|
Basic and diluted
earnings per ADR
|
1.13
|
22.23
|
(3.79)
|
Weighted average
Shares outstanding1
|
600,000
|
600,000
|
600,000
|
|
|
|
|
EBITDA
Result
|
$
76.4
|
1,505.8
|
76.2
|
|
|
|
|
Gross
margin
|
17.0%
|
17.0%
|
8.2%
|
Operating
margin
|
7.7%
|
7.7%
|
-1.8%
|
Net margin
|
7.3%
|
7.3%
|
-1.3%
|
EBITDA
margin
|
9.8%
|
9.8%
|
0.5%
|
|
|
|
|
1 In
thousands
|
|
|
|
* Audited
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENT OF INCOME
|
|
Accumulated
results, for the nine months ended September 30.
|
|
-Unaudited-
|
|
|
|
|
U.S.
Dollar
|
|
|
In millions
pesos
|
2019
|
2019
|
2018*
|
Net
sales
|
$
2,359.1
|
46,520.6
|
45,631.1
|
Cost of
sales
|
1,946.6
|
38,386.7
|
38,149.7
|
Gross
profit
|
412.5
|
8,133.9
|
7,481.4
|
Selling, general and
administrative expenses
|
229.4
|
4,522.8
|
4,373.7
|
Other income
(expenses), net
|
3.5
|
69.6
|
110.7
|
Operating
income
|
186.6
|
3,680.7
|
3,218.4
|
Net finance
income
|
29.1
|
573.3
|
404.8
|
Income
tax
|
63.2
|
1,246.4
|
973.0
|
Net
income
|
$
152.5
|
3,007.5
|
2,650.1
|
|
|
|
|
Non-controlling
interest
|
0.4
|
8.6
|
9.9
|
Net controlling
interest profit
|
152.1
|
2,998.9
|
2,640.3
|
Basic and diluted
earnings per share
|
0.25
|
5.00
|
0.00
|
Basic and diluted
earnings per ADR
|
3.04
|
60.0
|
0.05
|
Weighted average
Shares outstanding1
|
599,973
|
599,973
|
599,993
|
|
|
|
|
EBITDA
Result
|
$
235.5
|
4,644.0
|
4,155.7
|
|
|
|
|
Gross
margin
|
17.5%
|
17.5%
|
16.4%
|
Operating
margin
|
7.9%
|
7.9%
|
7.1%
|
Net margin
|
6.4%
|
6.5%
|
5.8%
|
EBITDA
margin
|
10.0%
|
10.0%
|
9.1%
|
|
|
|
|
1 In
thousands
|
|
|
|
* Audited
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
|
-Unaudited-
|
|
|
|
|
In U.S.
Dollar
|
September
30,
|
December
31,
|
In million
pesos
|
2019
|
2019
|
2018*
|
|
|
|
|
TOTAL
ASSETS
|
$
2,811.9
|
55,450.3
|
52,865.6
|
|
|
|
|
Total current
assets
|
1,556.2
|
30,689.1
|
29,775.0
|
Cash and
cash equivalents
|
927.1
|
18,283.1
|
18,458.5
|
Total
accounts receivable
|
212.0
|
4,179.9
|
3,486.5
|
Inventories
|
349.8
|
6,897.7
|
6,649.1
|
Other
current assets
|
67.4
|
1,328.3
|
1,180.9
|
|
|
|
|
Total non current
assets
|
1,255.6
|
24,761.3
|
23,090.6
|
Net
property, plant and equipment
|
927.6
|
18,291.6
|
18,018.2
|
Other
non current Assets
|
328.1
|
6,469.7
|
5,072.4
|
|
|
|
|
TOTAL
LIABILITIES
|
$
766.3
|
15,111.2
|
14,699.9
|
|
|
|
|
Total current
liabilities
|
418.6
|
8,254.1
|
9,084.9
|
Notes
payable to banks
|
178.2
|
3,514.7
|
3,492.8
|
Accounts
payable
|
176.4
|
3,478.9
|
4,228.4
|
Other
taxes payable and other accruals
|
63.9
|
1,260.4
|
1,363.7
|
|
|
|
|
Total long-term
liabilities
|
347.7
|
6,857.1
|
5,614.9
|
Long-term debt
|
75.7
|
1,493.1
|
1,544.8
|
Other non current liabilities
|
63.7
|
1,256.0
|
302.8
|
Deferred
income taxes
|
208.3
|
4,108.0
|
3,767.3
|
|
|
|
|
TOTAL
STOCKHOLDERS' EQUITY
|
$
2,045.6
|
40,339.2
|
38,165.7
|
|
|
|
|
Capital
stock
|
59.6
|
1,174.4
|
1,174.3
|
Commission in shares
issued
|
21.0
|
414.5
|
414.5
|
Retained
earnings
|
1,902.6
|
37,519.8
|
35,354.5
|
Others
accounts
|
58.4
|
1,152.4
|
1,153.0
|
Non controlling
interest
|
4.0
|
78.0
|
69.5
|
|
|
|
|
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY
|
$
2,811.9
|
55,450.3
|
52,865.6
|
|
|
|
|
*Audited
|
|
|
|
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
|
|
In million of
pesos
|
|
|
|
-Unaudited-
|
|
|
|
|
|
|
|
|
U.S.
Dollar
|
September
30,
|
|
2019
|
2019
|
2018*
|
|
|
|
|
NET MAJORITY
INCOME BEFORE INCOME TAX
|
$
215.7
|
4,254.0
|
3,623.2
|
|
|
|
|
ITEMS RELATING TO
INVESTING ACTIVITIES:
|
17.4
|
343.8
|
362.1
|
Depreciation and
others
|
48.9
|
963.3
|
937.4
|
Income (loss) on sale
of plant and equipment
|
(5.0)
|
(99.1)
|
20.3
|
Other Items
|
(26.4)
|
(520.4)
|
(595.6)
|
|
|
|
|
NET CASH GENERATED
FROM NET INCOME BEFORE TAXES
|
233.2
|
4,597.8
|
3,985.2
|
CASH GENERATED OR
USED IN THE OPERATION:
|
(164.2)
|
(3,238.9)
|
(2,147.3)
|
Decrease
(increase) in accounts receivable
|
24.8
|
489.6
|
111.2
|
Decrease
(increase) in inventories
|
(20.2)
|
(398.1)
|
50.0
|
Increase
(decrease) in accounts payable
|
(111.5)
|
(2,199.0)
|
(578.0)
|
Other
Items
|
(57.4)
|
(1,131.5)
|
(1,730.6)
|
|
|
|
|
NET CASH FLOW FROM
OPERATING ACTIVITIES
|
68.9
|
1,358.9
|
1,837.9
|
|
|
|
|
NET CASH FLOW FROM
INVESTING ACTIVITIES
|
(29.6)
|
(583.1)
|
(353.5)
|
Acquisition of
property, plant and equipment
|
(66.0)
|
(1,301.2)
|
(1,329.0)
|
Proceeds from sales of
property plant and equipment
|
9.5
|
186.9
|
12.8
|
Other Items
|
26.9
|
531.2
|
962.7
|
|
|
|
|
CASH FLOW SURPLUS
(REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES
|
39.3
|
775.7
|
1,484.4
|
|
|
|
|
Net cash provided
by financing activities:
|
(50.3)
|
(992.1)
|
(1,538.1)
|
Proceeds
from loans
|
246.4
|
4,859.0
|
3,237.5
|
Principal payments on loans
|
(246.4)
|
(4,858.6)
|
(3,456.1)
|
Dividends paid
|
(42.6)
|
(840.0)
|
(852.0)
|
Other
items
|
(7.7)
|
(152.5)
|
(467.4)
|
Net increase
(decrease) in cash and equivalents
|
(11.0)
|
(216.3)
|
(53.7)
|
|
|
|
|
Cash and investments
at the beginning of year
|
$
961.0
|
18,451.9
|
17,240.1
|
CASH AND
INVESTMENTS AT END OF PERIOD
|
$
924.7
|
18,23050.6
|
17,1086.4
|
|
|
|
|
*Audited
|
|
|
|
|
|
|
|
DERIVATIVES POSITION
REPORT
Third Quarter
2019
|
|
|
|
|
|
|
|
|
|
Thousands of
Mexican Pesos, as of September 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TYPE OF FINANCIAL
INSTRUMENT
|
OBJECTIVE
|
NOTIONAL
|
VALUE OF THE
RELATED COMMODITY
|
REASONABLE
VALUE
|
AMOUNTS DUE BY
YEAR
|
GUARANTIES
REQUIRED
|
3Q-2019
|
2Q-2019
|
3Q-2019
|
2Q-2019
|
Forward
Vanilla
|
Hedge
|
$
20,798
|
$19.72
|
|
$19.20
|
|
$-2,595
|
$-11,503
|
70% in 2019 and 30%
in 2020
|
The deals consider
the possibility of margin calls but not another kind of
guarantee
|
Futures for corn and
soybean meal
|
Hedge
|
$
218,171
|
CORN
|
CORN
|
$
4,898
|
$
5,654
|
55% in 2019; 45% in
2020
|
In USD per
Bushel
|
In USD per
Bushel
|
month
|
price
|
month
|
price
|
Mar-20
|
$
3.995
|
Mar-20
|
$
4.395
|
May-20
|
$
4.053
|
|
|
Jul-20
|
$
4.085
|
|
|
|
|
Sep-19
|
$
4.248
|
Dec-19
|
$
3.880
|
Dec-19
|
$
4.315
|
SOYBEAN
MEAL
|
SOYBEAN
MEAL
|
In USD per
ton
|
In USD per
ton
|
month
|
price
|
month
|
price
|
Jan-20
|
$
302.8
|
Aug-19
|
$
315.3
|
Mar-20
|
$
306.2
|
Jan-20
|
$
324.8
|
May-20
|
$
310.4
|
Mar-20
|
$
327.0
|
Jul-20
|
$
314.8
|
May-20
|
$
329.0
|
Aug-20
|
$
316.7
|
Jul-20
|
$
331.0
|
Sep-20
|
$
317.7
|
Aug-20
|
$
331.4
|
Oct-20
|
$
317.7
|
Sep-20
|
$
331.6
|
Dec-20
|
$
319.5
|
Oct-20
|
$
330.4
|
Options of
Corn
|
Hedge
|
$ 727,945
|
CORN
|
CORN
|
$
113
|
$
11,339
|
92% in 2019; 8% in
2020
|
In USD per
Bushel
|
In USD per
Bushel
|
month
|
price
|
month
|
price
|
Dec-19
|
$
3.880
|
Jul-19
|
$
3.752
|
Mar-20
|
$
3.995
|
Sep-19
|
$
4.248
|
May-20
|
$
4.053
|
Dec-19
|
$
4.315
|
Jul-20
|
$
4.085
|
Jan-20
|
$
4.395
|
Options of soybean
meal
|
Hedge
|
$
73,521
|
SOYBEAN
MEAL
|
SOYBEAN
MEAL
|
-$
1,290
|
$
2,738
|
52% in 2019; 48% in
2020
|
In USD per
ton
|
In USD per
ton
|
month
|
price
|
month
|
price
|
Dec-19
|
$
301.0
|
Aug-19
|
$
315.3
|
Jan-20
|
$
302.8
|
Sep-19
|
$
313.0
|
Mar-20
|
$
306.2
|
Oct-19
|
$
325.9
|
May-20
|
$
310.4
|
Dec-19
|
$
316.8
|
Jul-20
|
$
314.8
|
Jan-20
|
$
324.8
|
|
|
Mar-20
|
$
327.0
|
|
|
|
|
|
|
|
|
|
|
|
-The total financial
instruments do not exceed 5% of total assets as of September 30,
2019.
|
|
|
|
-The notional value
represents the net position as of September 30, 2019 at the
exchange rate of Ps. 19.72 per one dollar.
|
|
-A negative value
means an unfavorable effect for the Company.
|
|
|
|
|
|
|
Third Quarter
2019
|
|
|
|
|
|
|
|
|
Thousands of
Mexican Pesos, as of September 30, 2019
|
|
|
|
|
|
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
|
-$
2,595
|
$19.23
|
$
20.21
|
$
20.71
|
Direct
|
-$
12,848
|
$
7,659
|
$ 17,912
|
|
|
-5%
|
5%
|
10%
|
|
-5%
|
5%
|
10%
|
Futures of Corn:
(2)
|
$
4,898
|
$
3.686
|
$
4.074
|
$
4.268
|
The effect will
materialize as the inventory is consumed
|
-$
5,976
|
$
20,432
|
$ 33,636
|
Futures of Soybean
Meal: (2)
|
$
287.7
|
$
317.9
|
$
333.1
|
Options for
Corn
|
$
113
|
$
3.686
|
$
4.074
|
$
4.268
|
-$
1,918
|
$
3,589
|
$
7,329
|
Options of Soybean
Meal
|
-$
1,290
|
$
287.7
|
$
317.9
|
$
333.1
|
-$
4,966
|
$
2,386
|
$
6,062
|
|
|
|
|
|
|
|
|
|
(1) The reference
value is the exchange rate of Ps. $19.72 per USD as of
September 30, 2019.
|
|
|
|
(2) The reference
values are; the future of corn for Dec 2019, $3.880 USD/bushel and
the future of soybean meal for Jan 2020, $302.80
USD/ton.
|
'All the evaluations are performed according with the corresponding
future, here only the first month futures are shown.
|
|
(3) The Company has
credit lines with the majority of its counterparts, so that the
effect in cash flow is lower than the amount shown.
|
|
-A negative value
means an unfavorable effect for the Company.
|
|
|
|
|
|
Third Quarter
2019
|
|
|
|
|
|
|
|
|
|
|
Thousands of
Mexican Pesos, as of September 30, 2019
|
|
|
|
|
|
|
|
STRESS
SCENARIO
|
TYPE OF FINANCIAL
INSTRUMENT
|
REASONABLE
VALUE
|
VALUE OF THE
RELATED COMMODITY
|
EFFECT ON THE
INCOME STATEMENT
|
EFFECT ON THE CASH
FLOW
|
Reference
Value
|
-50%
|
-25%
|
25%
|
50%
|
-50%
|
-25%
|
25%
|
50%
|
Forward
Vanilla
|
-$
2,595
|
$9.86
|
$14.79
|
$24.65
|
$29.58
|
Direct
|
-$207,664
|
-$105,129
|
$99,940
|
$202,474
|
|
|
|
|
|
|
|
|
|
|
|
CONFERENCE CALL INFORMATION
The
Company will host its third quarter 2019 earnings call, on
Thursday, October 23rd,
2019. 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:
http://web.meetme.net/r.aspx?p=12&a=UNFLnKAclbtcKD
Confirmation Number: 49094800
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 27,000 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.
IR contact information:
maria.jaquez@bachoco.net
andrea.guerrero@bachoco.net
T.
+52(461)618 3555
View original
content:http://www.prnewswire.com/news-releases/industrias-bachoco-announces-third-quarter-2019-results-300943342.html
SOURCE Industrias Bachoco, S.A.B. de C.V.