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”.
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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.
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By GlobalData
