Bachoco net income drops 30 percent in third quarter

Mexican poultry company Bachoco posted a net income of MXN 786.3 million (US$46.8 million) during the third quarter of fiscal year 2015, more than a 30 percent decline from the MXN1.124 billion posted during the same period of fiscal year 2014.
The quarter ended on September 30.
While the net income is down for the third quarter, it is up for the first nine months of the year. The company recorded a net income of MXN3.45 billion for the period during 2015, an improvement from the MXN2.87 billion recorded during the same period of fiscal year 2014.

Bachoco sales up in Mexico, US

The company’s net sales increased during the third quarter, growing from MXN10.6 billion to MXN11.3 billion on a year-over-year basis.
Most of those sales increases were in the U.S., where Bachoco operates the subsidiary O.K. Industries. Sales in the U.S. increased by 30.4 percent, whereas sales in Mexico increased by a mere 0.8 percent.

Commentary from Bachoco’s CEO

Reflecting on the performance of the company during the third quarter, Rodolfo Ramos Arvizu, Bachoco’s CEO, commented: “For Bachoco, this third quarter behaved as, what we can call, a typical third quarter for a year, which seasonally used to be a weak one. The comparison with [the third quarter of 2014] is difficult, as last year did not present this behavior.
“In general, even when we observed a good level of demand in the Mexican markets during the quarter, we also saw a stronger supply in our main product lines. At the same time, there was a strong supply in our U.S. markets, where leg quarter prices were affected due to weaker exports.