Mexican poultry processor Industrias Bachoco has reported improved second-quarter sales and profits.

Bachoco said an increase in volume sold and prices recovered, mainly in chicken, allowed the firm to increase its total sales by 12.9% in the second quarter to MXN13.36bn (US$712m) – MXN1.52bn or 12.9% more compared to the same period of 2015.

However, second-quarter cost of sales was MXN10bn, which was an increase of MXN1.16bn (13.1%) over the MXN8.91bn reported in the second quarter of 2015.

Nevertheless, EBITDA at the end of the second quarter was MXN2.32bn, 11.9% higher than in the corresponding quarter of 2015. Operating income was MXN2.09bn, a rise of 11% over the same period in 2015.

Net income was MXN1.58bn, an increase of 13.3% compared to the second quarter of last year.

Bachoco CEO Rodolfo Ramos Arvizu said: “This second quarter was in line with the seasonal behaviour of the poultry industry. We observed a normalised growth rate in both of the markets in which we compete, and a strong demand in the Mexican market, resulting in a better balance between supply and demand. At the end of the quarter, we were able to reach an EBITDA of MXN2.32bn, 11.9% higher than the EBITDA of the same quarter of 2015. Our earnings per basic and diluted share for the second quarter was MXN2.63, higher than the MXN2.32 for the same quarter of 2015.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Just Food.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Arvizu said Bachoco’s financial position had been strengthened with net cash reaching a total of MXN11.28bn.

Bachoco said in February that full-year 2015 profits had fallen on the back of higher costs.