Industrias Bachoco, the Mexican poultry processor, saw its earnings slide in the first quarter on the back of lower margins.

In the three months to the end of March, net income fell 3.7% to MXN635.1m (US$52.1m). Results were impacted by gross margin that slid to 14.8% from 17% last year. Operating margin also declined, to 7.6% from 8.3%.

Operating income slid to MXN761.1m in the quarter, from MXN79.6m, mainly due to one-time charges as a consequence of the outbreak of bird influenza, which the firm says is under control.

Net sales totalled MXN9.99bn, a 7% increase on last year due to a 21.4% sales increase in its US operations.