Industrias Bachoco bottom line hit by tax charge

Industrias Bachoco bottom line hit by tax charge

Industrias Bachoco saw full-year operating profit rise ahead of sales in 2013 as the Mexican poultry processor reported higher margins.

In the year to 31 December, EBITDA rose 13.5% to MNX3.94bn (US$296m). The group expanded its EBITDA margin from 8.8% in 2012 to 9.9% in 2013. CEO Rodolfo Ramos Arvizu said that the margin progression came on the back of "efficiencies in key processes" and "solid finances".

Sales in the 12 month period edged up 0.9% to reach MXN98.7bn as pricing offset lower sales volumes.

While the group was able to report a positive operating result, its net profit was dented by Mexico's move to phase out the preferential tax rate for businesses of 21% and impose a flat rate of 30% on earnings. As a result, the group booked a one-time expense of MXN668.1m in the fourth quarter.

Full-year net income totalled MXN1.9bn, down from MXN2.1bn last year.

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