MEXICO: Bachoco Q2 profits jump
Poultry producer and processor Industrias Bachoco has announced a rise in sales in the second quarter of 2005, with profits rising sharply thanks to cost reductions and better chicken prices.
Net sales for the three months ended 30 June 2005 rose to 3.781m pesos (US$351m) from 3.331bn pesos in the same period last year. Net income for the quarter rose to 654m pesos from 87m pesos last year. "The strong improvement was mainly due to a reduction in the unit cost of sales for the main product lines, and better prices in the chicken product line," the company said.
For the six months; net sales rose to 7.243bn pesos from 6.454bn last year, while net income rose to 1.136bn pesos from 156m last year.
"The Mexican chicken industry benefited this quarter from strong demand, normalized raw material prices and a better balance between supply and demand," said CEO Cristobal Mondragon. "Our company, in particular, was able to take full advantage of favourable market conditions due to the constant efforts at improving efficiency and productivity. That, together with our organic growth initiatives, ensured that we had adequate product supplies this quarter to meet customers' needs. The strong volumes, efficiency efforts and tight control over operating expenses allowed us to achieve the best results in Bachoco's history.
"These results confirm that our strategies are working, and we will continue to follow them," he said.
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