Industrias Bachoco, the Mexican poultry processor, has booked a jump in first-half net and gross earnings thanks to lower input and financing costs.
Net income in the six months rose to MXN110.9m (US$8.57m), compared to MXN50.9m last year. The company attributed the gain to improved financing costs due to “high levels of cash and lower interest expenses”.
Gross profit was also up on the year-ago period, climbing to MXN4.25bn from MXN3.98bn. Bachoco said margins were helped by a decrease in the cost of “major raw materials” such as corn and soybean meal.
However, higher SG&A costs and one-time expenses hit operating profit, which dipped slightly to MXN2.41bn from MXN2.74bn. Sales were also down in the period, down 1.4% on the year due to lower prices. Revenue fell to MXN20.25bn in the period, the group revealed.
