MEXICO: Industrias Bachoco FY profit increases

By just-food.com | 5 February 2010

Mexican poultry firm Industrias Bachoco saw an increase in operating profit for in 2009 but said prices remained under pressure during the year.

The company made an operating profit of MXN1.43bn (US$108.5bn), compared to MXN233.2m recorded in 2008, the firm said today (5 February).

EBITDA reached MXN2.08bn, an increase on MXN837.8m recorded in the prior year.

Net sales amounted to MXN23.27bn, a 15.7% increase on 2008. The increase was driven by a 17.8% increase in chicken sales, 11.8% in table eggs sales and 11.7% in swine sales, which were partially offset by a 0.4% decrease in balanced feed sales.

Cristobal Mondragon, Bachoco's CEO, said: "During the fourth quarter, we observed lower raw materials prices, which coupled with our efficiency strategy, allowed us to improve the cost of sales.

"The chicken industry was also stable during the quarter; there was a good level in the supply and demand balance, especially around the holiday season. However, prices remained under pressure, and were mainly attributed to a weaker purchasing power of the Mexican population as the economy slowed down. We expect prices to improve as the Mexican economy shows signs of recovery,” he added.