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Monday, August 3, 2015
Bachoco more than doubles net income in Q2 2015
Mexican poultry company Bachoco saw its net income and net sales increase during the second quarter of fiscal year 2015, the company announced on July 23.
Bachoco’s net income for the second quarter was MXN132.1 million (US$8.2 million), more than double that of its net income of MXN60.2 million for the second quarter of fiscal year 2014. The company largely attributes that increase to higher interest income and lower interest expenses.
The company’s net sales for the quarter increased by 11.6 percent. During the second quarter, it recorded MXN11.8 billion (US$730 million) in net sales, up from the MXN10.6 billion (US$660 million) in net sales during the same period during 2014. Of the net sales for the second quarter of 2015, MXN9.1 billion (US$560 million) were sales in Mexico, while MXN 2.7 billion (US$170million) were sales in the United States. OK Foods is Bachoco’s U.S. subsidiary.
“In this second quarter, our company was able to take advantage of the conditions the poultry industry offered; mainly a strong demand, which is a seasonal characteristic of this quarter, as well as stable price of our main raw materials. We observed a balanced supply and demand in our main product lines in both our Mexican and U.S. markets, even when we are observing a growth rate above the historical level of the poultry industry in both countries,” said Bachoco CEO Rodolfo Ramos Arvizu.
“We were able to increase our total sales by 11.6 percent in the quarter, due mainly to increases in volume in our main product lines, while reaching double-digit profit margins, and above those reached in the same quarter of 2014. We improved our profit margins in both of our operations, in Mexico and in the USA.”