Industrias Bachoco, Mexico’s leading producer and processor of poultry products, yesterday (26 January) reported record sales in 2005 despite a “difficult” fourth quarter.
The company said sales of Ps14,437.4m, the highest in Bachoco’s history, were 5.4% more than reported in 2004. Operating income was Ps2,181.5m, more than twice that level achieved in 2004. EBITDA reached Ps2,642.6m, almost twice the Ps1,374.5m achieved in 2004.
Cristobal Mondragon, CEO of Bachoco, said: “Even under the difficult market conditions our company faced during the fourth quarter, mainly in the chicken industry in Mexico, we are very satisfied with the results achieved during the full year 2005. Volumes sold in our main product lines, sales and operating income all reached the highest full year levels in the history of the company.
“We believe these results are being driven by our constant efforts to improve our cost structure and enhance efficiency, as well as our goal of being close to the customers and satisfying their needs. This has allowed us to fully benefit from favourable external conditions and to face adverse situations well prepared.”
However, he warned: “We expect the oversupply conditions in chicken and eggs to remain at least through the first quarter of 2006.”
Net sales for the quarter reached Ps3,270.5m, a decrease of 9.6% compared to the same period last year. This was mainly due to decreases of 12.6% in chicken sales, 12.1% in eggs and 15.1% in swine sales, but was partially offset by an increase of 18.8% in balanced feed.