Bachoco Announces First Quarter 2016 Results
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E-mailCELAYA, Mexico, April 28, 2016 /PRNewswire/ -- Industrias Bachoco, S.A.B. de C.V., "Bachoco" or "the Company", (NYSE: IBA; BMV: Bachoco) announced today its unaudited results for the first quarter ("1Q16") ending March 31, 2016. All figures have been prepared in accordance with International Financial Reporting Standard ("IFRS"), and are presented in nominal million Mexican Pesos ("$"), except earnings per share.
HIGHLIGHTS- 2016 vs. 2015
- Net sales increased 3.8% in 1Q16.
- EBITDA margin was 7.8% in 1Q16 vs 16.3% in 1Q15.
- Earnings per basic and diluted share were $0.99.
CEO COMMENTS
Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: "Conditions prevailing in the poultry industry in the second half of 2015 continued throughout most part of the first quarter of 2016. We observed over-supply conditions in Mexico, which put pressure on prices. In the US market, we also continued to observe lower prices, mainly in leg quarters and breast, as compared with the equivalent quarter of 2015.
Volatility in the Mexican peso continued affecting our cost of sales in Mexico during the quarter; as a result, our operating margins were lower when compared with the first quarter of the previous year.
However, we saw a good level of demand in the Mexican markets during this first quarter, enabling us to increase total sales by 3.8% year over year, and increase volume sold in all of our main product lines in both markets we participate.
We also were able to deliver positive results in both our Mexican and US Operations and observed improved conditions at the end of the quarter in both markets.
On the internal side, we continued working on our efficiency and productivity efforts. We continued with our CAPEX program, while taking advantage of projects we implemented to get closer to our customers.
Our financial structure continued strengthening as we reached a net cash level of $10,616.0 million, which will allow us to support our growth plans.
We will remain focused on continual improvements and efficiencies across all of our processes, and closely monitor those external factors we cannot control."
RECENT DEVELOPMENTS. At its 2016 annual shareholders meeting, the Company announced the paying of cash dividends in the amount of $1.3 pesos per share (or $15.6 pesos per ADR).
Executive Summary The following financial information is expressed in millions of nominal pesos, except for amounts per share and per ADR, with comparative figures for the same periods of 2015.
QUARTERLY RESULTS
|
NET SALES BY GEOGRAPHY |
|||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net sales |
11,839.3 |
11,406.0 |
433.3 |
3.8 | |
|
Net sales in Mexico |
8,821.5 |
8,644.7 |
176.9 |
2.0 | |
|
Net sales in the U.S. |
3,017.8 |
2,761.3 |
256.5 |
9.3 | |
|
NET SALES BY SEGMENT |
|||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net sales |
11,839.3 |
11,406.0 |
433.3 |
3.8 | |
|
Poultry |
10,644.5 |
10,445.3 |
199.2 |
1.9 | |
|
Other |
1,194.8 |
960.7 |
234.1 |
24.4 | |
NET VOLUME SOLD BY SEGMENT
|
In tons |
Change | |||||
|
1Q16 |
1Q15 |
Volume |
% | |||
|
Total sales volume: |
521,417 |
484,500 |
36,917 |
7.6 | ||
|
Poultry |
411,459 |
387,695 |
23,764 |
6.1 | ||
|
Others |
109,959 |
96,805 |
13,154 |
13.6 | ||
In 1Q16, the Company's net sales totaled $11,839.3 million; $433.3 million or 3.8% more than $11,406.0 million reported in 1Q15. This was a result of more volume sold in our main product lines during the quarter, partially compensated by a reduction in our poultry prices.
In 1Q16, sales of our U.S. operations were strong and represented 25.5% of our total sales compared with 24.4% in 1Q15.
|
GROSS PROFIT |
|||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Cost of sales |
10,012.2 |
8,722.4 |
1,289.7 |
14.8 | |
|
Gross profit |
1,827.2 |
2,683.6 |
(856.4) |
(31.9) | |
|
Gross margin |
15.4% |
23.5% |
- |
- | |
The cost of sales totaled $10,012.2 million, representing $1,289.7 million or 14.8% higher than $8,722.4 million reported in the same period of 2015. This increase was a result of more volume sold and higher raw material costs in Mexican peso terms.
The Company's gross profit in 1Q16 was $1,827.2 million, with a gross margin of 15.4%; this result is lower when compared to a gross profit of $2,683.6 million and gross margin of 23.5% reported in 1Q15.
|
Selling, general and administrative expenses ("SG&A") | |||||
|
In millions of pesos |
|||||
|
1Q16 |
1Q15 |
Change | |||
|
$ |
$ |
$ |
% | ||
|
Total SG&A |
1,121.8 |
1,008.3 |
113.5 |
11.3 | |
Total SG&A expenses in 1Q16 were $1,121.8 million; $113.5 million or 11.3% more than the $1,008.3 million reported 1Q15. This increase is mainly attributed to higher sales and distribution expenses as our volume sold increased. Total SG&A expenses, as a percentage of net sales, represent 9.5% in 1Q16; an increase compared with 8.8% in the same quarter of 2015.
|
other income (expense), net | |||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Other income (expense), net |
(9.1) |
(13.2) |
4.1 |
(31.1) | |
Other income or other expenses include the sale of byproducts and unused assets; we register such sales as expenses when the sales price is below the book value of those assets.
In 1Q16, we had other expenses of $9.1 million, compared with other expenses of $13.2 million reported in 1Q15.
|
OPERATING INCOME |
|||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Operating income |
696.3 |
1,662.1 |
(965.8) |
(58.1) | |
|
Operating margin |
5.9% |
14.6% |
- |
- | |
Operating income in 1Q16 totaled $696.3 million for an operating margin of 5.9%; lower than an operating income of $1,662.1 million and a 14.6% in operating margin reported in 1Q15. The decrease in operating income is mainly attributed to lower gross income and higher operating expenses in 1Q16 when compared to 1Q15.
|
NET FINANCIAL INCOME |
|||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net Financial Income |
136.5 |
181.0 |
(44.5) |
(24.6) | |
|
Financial Income |
190.0 |
208.7 |
(18.7) |
(9.0) | |
|
Financial Expense |
53.5 |
27.7 |
25.8 |
93.3 | |
In 1Q16, the Company reported net financial income of $136.5 million, compared to $181.0 million reported in the same period of 2015.
|
TAXES FOR THE PERIOD |
|||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Total Taxes |
235.8 |
577.4 |
(341.6) |
(59.2) | |
|
Income tax |
157.5 |
542.7 |
(385.3) |
(71.0) | |
|
Deferred income tax |
78.4 |
34.7 |
43.7 |
126.0 | |
Total taxes for the 1Q16 were $235.8 million, compared to $577.4 million in the same period of 2015. The variation is mainly attributed to lower operating results.
|
NET INCOME |
|||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net income |
596.9 |
1,265.7 |
(668.8) |
(52.8) | |
|
Net margin |
5.0% |
11.1% |
- |
- | |
|
Non-Controlling Interest income |
1.7 |
2.4 |
(0.6) |
n/a | |
|
Net controlling interest income |
595.2 |
1,263.3 |
(668.2) |
n/a | |
|
Basic and diluted income per share1 |
0.99 |
2.11 |
- |
n/a | |
|
Basic and diluted income per ADR2 |
11.90 |
25.29 |
- |
n/a | |
|
Weighted average Shares outstanding3 |
599,946 |
599,535 |
- |
- | |
|
1 In pesos2 in pesos, an ADR is equal to twelve shares3 In thousands of shares | |||||
The net income for 1Q16 was $596.9 million, representing a basic and diluted income of $0.99 pesos per share; this result compares to net income of $1,265.7 million, which represented a net income $2.11 pesos of basic and diluted income per share, in 1Q15. Net margin for the 1Q16 was 5.0% compared to 11.1% reported in 1Q15.
|
EBITDA AND ADJUSTED EBITDA |
|||||
|
In millions of pesos |
1Q16 |
1Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net controlling interest income |
595.2 |
1,263.3 |
(668.2) |
(52.9) | |
|
Income tax expense (benefit) |
235.8 |
577.4 |
(341.6) |
n/a | |
|
Result in associates |
1.7 |
2.4 |
(0.6) |
n/a | |
|
Net finance (income) expense |
(136.5) |
(181.0) |
44.5 |
n/a | |
|
Depreciation and amortization |
224.8 |
199.4 |
25.3 |
12.7 | |
|
EBITDA |
921.1 |
1,861.6 |
(940.5) |
(50.5) | |
|
EBITDA Margin (%) |
7.8 |
16.3 |
(8.5) |
(52.3) | |
|
Other expense (income) net |
9.1 |
13.2 |
(4.1) |
(31.1) | |
|
Adjusted EBITDA |
930.2 |
1,874.8 |
(944.6) |
(50.4) | |
|
Adjusted EBITDA Margin |
7.86% |
16.44% |
- |
- | |
|
Net sales |
11,839.3 |
11,406.0 |
433.3 |
3.8 | |
EBITDA in 1Q16 reached $921.1 million, representing an EBITDA margin of 7.8%, compared to $1,861.6 million EBITDA in 1Q15 and 16.3% EBITDA margin.
The adjusted EBITDA in 1Q16 was $930.2 million, representing an adjusted EBITDA margin of 7.86%, compared to adjusted EBITDA of $1,874.8 million in 1Q15, with an adjusted EBITDA margin of 16.44%.
BALANCE SHEET DATA
|
BALANCE SHEET DATA |
|||||
|
In millions of pesos |
Mar 31, 2016 |
Dec. 31, 2015 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
TOTAL ASSETS |
40,127.4 |
40,446.6 |
(319.2) |
(0.8) | |
|
Cash and cash equivalents |
14,586.9 |
15,288.9 |
(702.0) |
(4.6) | |
|
Accounts receivable |
2,939.2 |
2,727.9 |
211.3 |
7.7 | |
|
TOTAL LIABILITIES |
11,737.9 |
12,667.2 |
(929.3) |
(7.3) | |
|
Accounts payable |
3,226.0 |
3,966.0 |
(740.0) |
(18.7) | |
|
Short-term debt |
1,477.9 |
1,631.9 |
(154.0) |
(9.4) | |
|
Long-term debt |
2,493.1 |
2,495.1 |
(2.0) |
(0.1) | |
|
TOTAL STOCKHOLDERS' EQUITY |
28,389.5 |
27,779.4 |
610.1 |
2.2 | |
|
Capital stock |
1,174.3 |
1,174.4 |
(0.1) |
0.0 | |
Cash and equivalents as of March 31, 2016 totaled $14,586.9 million; $702.0 million or 4.6% less than $15,288.9 million as of December 31, 2015.
Total debt as of March 31, 2016 totaled $3,970.9 million, compared to $4,127.0 million reported as of December 31, 2015.
Net cash as of March 31, 2016 was $10,616.0 million, compared to net cash of $11,161.9 million as of December 31, 2015.
CAPEX
|
CAPITAL EXPENDITURES | |||||
|
In millions of pesos |
2016 |
2015 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Capital Expenditures |
659.9 |
254.5 |
405.4 |
159.3 | |
Total CAPEX for the 1Q16 was $659.9 million which was mainly allocated toward organic growth in Mexico, a fully cooked plant acquisition in Oklahoma City, as well as productivity projects across all of our facilities.
STOCK INFORMATION
STOCK INFORMATION
|
As of March 31, 2016 | ||
|
Total Shares |
600,000,000 | |
|
Total free float |
26.75% | |
|
Total shares in treasury as of March 31, 2016 |
62,157 | |
|
Market cap (millions of pesos) |
$44,346 | |
SHARE PRICEs
|
Mexican Stock Exchange |
The New York Stock Exchange | |||||||||||
|
Ticker Symbol: Bachoco |
Ticker Symbol: IBA | |||||||||||
|
In nominal pesos per Share |
In U.S. Dollar per ADR | |||||||||||
|
Month |
High |
Low |
Average |
Close |
Volume |
High |
Low |
Average |
Close |
Volume | ||
|
Mar-16 |
77.40 |
73.05 |
74.94 |
73.91 |
7,407,913 |
53.52 |
49.11 |
51.00 |
51.28 |
309,703 | ||
|
Feb-16 |
74.00 |
65.45 |
70.89 |
72.98 |
7,185,805 |
49.11 |
43.15 |
46.12 |
48.28 |
355,347 | ||
|
Jan-16 |
70.40 |
62.51 |
67.45 |
65.45 |
9,777,602 |
48.67 |
41.17 |
44.82 |
43.32 |
474,206 | ||
|
Dec-15 |
71.03 |
65.95 |
69.04 |
70.05 |
8,183,685 |
50.99 |
45.64 |
48.54 |
49.23 |
624,963 | ||
|
Nov-15 |
78.97 |
69.37 |
72.69 |
69.37 |
9,375,235 |
57.22 |
49.87 |
52.48 |
50.18 |
517,771 | ||
|
Oct-15 |
85.80 |
75.18 |
81.68 |
75.18 |
14,257,551 |
61.13 |
54.72 |
59.11 |
54.72 |
455,668 | ||
|
Source: yahoo finances | ||||||||||||
ANALYST COVERAGE
|
Institution |
Analyst name |
|
|
ACTINVER |
Jose Antonio Cebeira |
|
|
BBVA BANCOMER |
Fernando Olvera |
|
|
GBM |
Miguel Mayorga |
|
|
INTERACCIONES CASA DE BOLSA |
Brian Flores |
|
|
JPMORGAN |
Pedro Leduc |
|
|
INTERCAM GRUPO FINANCIERO |
Alejandra Marcos |
|
|
SIGNUM RESEARCH |
Emma Ochoa |
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $17.29 per USD$1.0, which corresponds to the rate at the close of March 31, 2016, according to Mexico's National Bank.
- Consolidated Statement of Financial Position
- Consolidated Statement of Income
- Consolidated Statement of Cash Flows
- Derivatives Position Report
|
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
|||
|
-Unaudited- |
|||
|
In U.S. Dollar |
March 31, |
December 31, | |
|
In million pesos |
2016 |
2016 |
2015* |
|
TOTAL ASSETS |
$ 2,320.8 |
40,127.4 |
40,446.6 |
|
Total current assets |
1,380.8 |
23,874.0 |
24,722.0 |
|
Cash and cash equivalents |
843.7 |
14,586.9 |
15,288.9 |
|
Total accounts receivable |
170.0 |
2,939.2 |
2,727.9 |
|
Inventories |
272.1 |
4,704.1 |
5,056.1 |
|
Other current assets |
95.1 |
1,643.7 |
1,649.1 |
|
Total non current assets |
940.0 |
16,253.4 |
15,724.6 |
|
Net property, plant and equipment |
788.5 |
13,633.1 |
13,188.1 |
|
Other non current Assets |
151.5 |
2,620.3 |
2,536.5 |
|
TOTAL LIABILITIES |
$ 678.9 |
11,737.9 |
12,667.2 |
|
Total current liabilities |
326.3 |
5,641.7 |
6,642.8 |
|
Notes payable to banks |
85.5 |
1,477.9 |
1,631.9 |
|
Accounts payable |
186.6 |
3,226.0 |
3,966.0 |
|
Other taxes payable and other accruals |
54.2 |
937.9 |
1,044.9 |
|
Total long-term liabilities |
352.6 |
6,096.2 |
6,024.4 |
|
Long-term debt |
144.2 |
2,493.1 |
2,495.1 |
|
Other non current liabilities |
9.7 |
168.3 |
160.2 |
|
Deferred income taxes |
198.7 |
3,434.8 |
3,369.0 |
|
TOTAL STOCKHOLDERS' EQUITY |
$ 1,642.0 |
28,389.5 |
27,779.4 |
|
Capital stock |
67.9 |
1,174.3 |
1,174.4 |
|
Commission in shares issued |
23.9 |
414.0 |
414.0 |
|
Repurchased shares |
0.2 |
4.1 |
0.7 |
|
Retained earnings |
1,510.9 |
26,122.7 |
25,527.9 |
|
Others accounts |
36.0 |
622.1 |
611.8 |
|
Non controlling interest |
3.0 |
52.2 |
50.4 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 2,320.8 |
40,127.4 |
40,446.6 |
|
*Audited |
|||
|
CONSOLIDATED STATEMENT OF INCOME |
|||
|
First Quarter Results, ended March 31: |
|||
|
-Unaudited- |
|||
|
U.S. Dollar |
|||
|
In millions pesos |
2016 |
2016 |
2015 |
|
Net sales |
$ 684.8 |
11,839.3 |
11,406.0 |
|
Cost of sales |
579.1 |
10,012.2 |
8,722.4 |
|
Gross profit |
105.7 |
1,827.2 |
2,683.6 |
|
SG&A |
64.9 |
1,121.8 |
1,008.3 |
|
Other income (expenses), net |
(0.5) |
(9.1) |
(13.2) |
|
Operating income |
40.3 |
696.3 |
1,662.1 |
|
Net finance income |
7.9 |
136.5 |
181.0 |
|
Income tax |
13.6 |
235.8 |
577.4 |
|
Net Income |
$ 34.5 |
596.9 |
1,265.7 |
|
Non-controlling interest |
0.1 |
1.7 |
2.4 |
|
Net controlling interest profit |
34.4 |
595.2 |
1,263.3 |
|
Basic and diluted earnings per share |
0.06 |
0.99 |
2.11 |
|
Basic and diluted earnings per ADR |
0.69 |
11.90 |
25.32 |
|
Weighted average Shares outstanding1 |
599,946 |
599,946 |
599,535 |
|
EBITDA Result |
$ 53.3 |
921.1 |
1,861.6 |
|
Gross margin |
15.4% |
15.4% |
23.5% |
|
Operating margin |
5.9% |
5.9% |
14.6% |
|
Net margin |
5.0% |
5.0% |
11.1% |
|
EBITDA margin |
7.8% |
7.8% |
16.3% |
|
1 In thousands |
|||
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
|||
|
In million of pesos |
|||
|
-Unaudited- |
|||
|
U.S. Dollar |
March 31, | ||
|
2016 |
2016 |
2015 | |
|
NET MAJORITY INCOME BEFORE INCOME TAX |
$ 48.2 |
832.7 |
1,843.1 |
|
ITEMS THAT DO NOT REQUIRE CASH: |
- |
- |
- |
|
ITEMS RELATING TO INVESTING ACTIVITIES: |
(1.3) |
(22.5) |
121.8 |
|
Depreciation and others |
13.0 |
224.8 |
199.4 |
|
Income (loss) on sale of plant and equipment |
0.0 |
0.7 |
34.8 |
|
Other Items |
(14.3) |
(248.0) |
(112.5) |
|
ITEMS RELATING TO FINANCING ACTIVITIES: |
3.1 |
53.5 |
27.7 |
|
Interest income (expense) |
3.1 |
53.5 |
27.7 |
|
Other Items |
- |
- |
- |
|
NET CASH GENERATED FROM NET INCOME BEFORE TAXES |
50.0 |
863.7 |
1,992.6 |
|
CASH GENERATED OR USED IN THE OPERATION: |
(54.7) |
(946.4) |
(313.5) |
|
Decrease (increase) in accounts receivable |
(14.8) |
(255.2) |
195.9 |
|
Decrease (increase) in inventories |
25.0 |
432.6 |
350.8 |
|
Decrease (increase) in accounts payable |
(64.5) |
(1,115.0) |
(854.6) |
|
Decrease (increase) in other liabilities |
(0.5) |
(8.7) |
(5.6) |
|
NET CASH FLOW FROM OPERATING ACTIVITIES |
(4.8) |
(82.7) |
1,679.0 |
|
NET CASH FLOW FROM INVESTING ACTIVITIES |
(24.1) |
(416.3) |
(175.8) |
|
Acquisition of property, plant and equipment |
(38.2) |
(659.9) |
(254.5) |
|
Proceeds from sales of property plant and equipment |
0.3 |
4.9 |
20.2 |
|
Other Items |
13.8 |
238.8 |
58.6 |
|
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES |
(28.9) |
(498.9) |
1,503.3 |
|
Net cash provided by financing activities: |
(11.7) |
(203.1) |
230.0 |
|
Proceeds from loans |
15.5 |
267.5 |
1,085.8 |
|
Principal payments on loans |
(24.9) |
(430.3) |
(697.6) |
|
Dividends paid |
- |
- |
- |
|
Other items |
(2.3) |
(40.2) |
(158.2) |
|
Net increase (decrease) in cash and equivalents |
(40.6) |
(702.0) |
1,663.5 |
|
Cash and investments at the beginning of year |
$ 884.3 |
15,288.9 |
11,961.6 |
|
CASH AND INVESTMENTS AT END OF PERIOD |
$ 843.7 |
14,586.9 |
13,625.2 |
DERIVATIVES POSITION REPORT
|
First Quarter 2016 |
||||||||||
|
Thousands of Mexican Pesos, as of march 31, 2016 |
ANEXO 1 | |||||||||
|
TYPE OF FINANCIAL INSTRUMENT |
OBJETIVE |
NOTIONAL |
VALUE OF THE RELATED COMMODITY |
REASONABLE VALUE |
AMOUNTS DUEBY YEAR |
GUARANTIES REQUIRED | ||||
|
1Q-2016 |
4Q-2015 |
1Q-2016 |
4Q-2015 | |||||||
|
Knock out forwards. |
Hedge |
$ 345,800 |
$ 17.29 |
$ 17.21 |
$-2,304 |
$ - |
in 2016 |
The deals consider the possibility of margin calls but not another kind of guarantee | ||
|
Futures for corn and soybean meal |
Hedge |
$ 317,899 |
CORN |
CORN |
-$ 2,376 |
-$ 5,851 |
89.4% in 2016and 10.6% in2017 | |||
|
In USD per Bushel |
In USD per Bushel | |||||||||
|
month |
price |
month |
price | |||||||
|
May-16 |
$ 3.515 |
|||||||||
|
Jul-16 |
$ 3.558 |
|||||||||
|
Sep-16 |
$ 3.605 |
Mar-2016 |
$ 3.588 | |||||||
|
Dic-16 |
$ 3.693 |
May-2016 |
$ 3.645 | |||||||
|
Mar-17 |
$ 3.783 |
|||||||||
|
SOYBEAN MEAL |
SOYBEAN MEAL | |||||||||
|
In USD per ton |
In USD per ton | |||||||||
|
month |
price |
month |
price | |||||||
|
May-2016 |
$ 270.3 |
|||||||||
|
Jul-2016 |
$ 273.1 |
|||||||||
|
Aug-2016 |
$ 274.4 |
Jan-2016 |
$ 264.300 | |||||||
|
Oct-2016 |
$ 276.6 |
Mar-2016 |
$ 265.500 | |||||||
|
Jan-2017 |
$ 279.6 |
May-2016 |
$ 269.000 | |||||||
|
Mar-2017 |
$ 279.6 |
Aug-2016 |
$ 274.200 | |||||||
|
May-2017 |
$ 278.9 |
|||||||||
|
Jul-2017 |
$ 280.1 |
|||||||||
|
Options of Corn |
Hedge |
$ - |
CORN |
CORN |
$ - |
-$ 121 |
2016 | |||
|
In USD per Bushel |
In USD per Bushel | |||||||||
|
month |
price |
month |
price | |||||||
|
Mar-2016 |
$ 3.59 | |||||||||
|
May-2016 |
$ 3.65 | |||||||||
|
Options of soybean meal |
Hedge |
$ 1,402 |
SOYBEAN MEAL |
SOYBEAN MEAL |
-$ 2 |
-$ 110 |
in 2016 | |||
|
In USD per ton |
In USD per ton | |||||||||
|
month |
price |
month |
price | |||||||
|
Mar-2016 |
$ 265.50 | |||||||||
|
May-2016 |
$ 270.30 |
May-2016 |
$ 269.00 | |||||||
|
NOTES |
||||||||||
|
-The total financial instruments not exceed 5% of total assets as of March 31, 2016. |
||||||||||
|
-The notional value represents the net position as of March 31, 2016 at the exchange rate of Ps.17.29 per one dollar. |
||||||||||
|
-A negative value means an unfavorable effect for the Company. |
||||||||||
PROBABLE SCENARIO
|
First Quarter 2016 |
||||||||
|
Thousands of Mexican Pesos, as of march 31, 2016 |
PROBABLE SCENARIO | |||||||
|
TYPE OF FINANCIAL INSTRUMENT |
REASONABLE VALUE |
VALUE OF THE RELATED COMMODITY |
EFFECT ON THE INCOME STATEMENT |
EFFECT ON THE CASH FLOW(3) | ||||
|
Reference Value | ||||||||
|
-2.5% |
2.5% |
5.0% |
-2.5% |
2.5% |
5.0% | |||
|
Knock Out Forwards (1) |
-$ 2,304 |
$ 16.86 |
$ 17.72 |
$ 18.15 |
Direct |
-$ 6,627 |
$ 2,018 |
$ 1,058 |
|
-5% |
5% |
10% |
-5% |
5% |
10% | |||
|
Futures of Corn: (2) |
-$ 2,376 |
$ 3.339 |
$ 3.691 |
$ 3.867 |
The effect willmaterialize as theinventory is consumed |
-$ 18,266 |
$ 13,514 |
$ 29,405 |
|
Futures of Soybean Meal: (2) |
$ 256.8 |
$ 283.8 |
$ 297.3 | |||||
|
Options for Corn |
$ - |
$ - |
$ - |
$ - |
$ - |
$ - |
$ - | |
|
Options of Soybean Meal |
-$ 2 |
$ 256.8 |
$ 283.8 |
$ 297.3 |
-$ 72 |
$ 68 |
$ 138 | |
|
NOTES |
||||||||
|
(1) The reference value is the exchange rate of Ps. $17.29 per USD as of March 31, 2016. |
||||||||
|
(2) The reference values are; the future of corn for March 2016, $3.5150 USD/bushel and the future of soybean meal for May 2016, $270.30 USD/ton. | ||||||||
|
All the evaluations are performed according with the corresponding future, here only the first month futures are shown. |
||||||||
|
(3) The Company has credit lines with the majority of its counterparts, so that the effect in cash flow is lower than the amount shown. |
||||||||
|
-A negative value means an unfavorable effect for the Company. |
||||||||
|
First Quarter 2016 |
||||||||||
|
Thousands of Mexican Pesos, as of march 31, 2016 |
STRESS SCENARIO | |||||||||
|
TYPE OF FINANCIAL INSTRUMENT |
REASONABLE VALUE |
VALUE OF THE RELATED COMMODITY |
EFFECT ON THE INCOME STATEMENT |
EFFECT ON THE CASH FLOW | ||||||
|
Reference Value | ||||||||||
|
-50% |
-25% |
25% |
50% |
-50% |
-25% |
25% |
50% | |||
|
Forward and Knock Out Forwards |
-$ 2,304 |
$8.65 |
$12.97 |
$21.61 |
$25.94 |
Direct |
-$88,754 |
-$45,529 |
$0 |
$0 |
CONFERENCE CALL INFORMATION
The Company will host its first quarter 2016 earnings call, on Friday, April 29, 2016. The earnings call will take place at 9:00 am Central Time (10:00 am ET).
Toll free in the U.S.: 1 (888) 771-4371 Toll free in Mexico: 001 866 779 0965
A current list of available local and international free phone telephone numbers: https://www.yourconferencecenter.com/AlternateNumbers/alternatenumbers.aspx?100374&t=P&o=USRplZrxzFBxXT
Confirmation Number: 42377518
Visit the following link to access the webcast: http://edge.media-server.com/m/p/nfj2cnxa
COMPANY DESCRIPTION
Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally. The Company was founded in 1952, and became a public company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine, and turkey and beef value-added products. Bachoco owns and manages more than a thousand facilities, organized in nine production complexes and 64 distribution centers in Mexico, and a production complex in the United States. Currently the Company employs more than 25,000 people.
The Company is rated AAA (MEX), the highest rating awarded by Fitch Mexico, S.A. de C.V., and HR AAA which signals that the Company and the offering both have the highest credit quality by HR Ratings de Mexico S.A. de C.V.
DISCLAIMER
The document contains certain information that could be considered forward looking statements concerning anticipated future events and performance of the Company. The statements reflect management's current beliefs based on information currently available and are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Information Form, which could cause our actual results to differ materially from the forward-looking statements contained in this document. Those risks and uncertainties include risks associated with ownership in the poultry industry, competition for investments within the poultry industry, shareholder liability, governmental regulation, and environmental matters. As a result, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Industrias Bachoco, S.A.B. de C.V., undertakes no obligation to publicly update or revise any forward-looking statement.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/bachoco-announces-first-quarter-2016-results-300257990.html
SOURCE Industrias Bachoco, S.A.B. de C.V.
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