Bachoco Announces First Quarter 2018 Results
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E-mailCELAYA, Mexico, April 25, 2018 /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 ("1Q18") ending March 31, 2018. 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- 2018 vs. 2017
- Net sales increased 11.8% in 1Q18.
- EBITDA margin was 13.7% in 1Q18 vs 8.8% in 1Q17, our EBITDA was $2,100.2 million, 74.5% more than in the 1Q17.
- Earnings per basic and diluted share were $2.09.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated, "In Mexico, this first quarter started strong. We believe that after the natural events that affected the economic dynamic in some regions of the country, demand for poultry products resumed its normal levels and combined with a moderate supply increase, allowed a balance supply – demand in the market. We did not see oversupply conditions as occurred in 1Q17.
The prices of our main raw material were stable, but we saw some volatility, mainly in soybean meal, in the second part of the quarter.
In the US market, we observed stable conditions when compared with the same quarter of last year. We continued with our process of integrating our 2017 acquisition and to capture synergies.
Sales and volume of our main product lines continued growing in both markets, which led us to an increase of 11.8% in total sales for 1Q18 when compared to the same quarter of 2017.
For 1Q18, we reached an EBITDA of $2,100.2 for 13.7% margin. This EBITDA represents an increase of 74.5% when compared with the 1Q17. Earnings per basic and diluted shares were $2.09 for the quarter.
The Company remained in a healthy financial condition as we reached a net cash level of $12,993.4 million, which will allow us to continue the support of our growth plans.
We will remain focused on continuous improvements and efficiencies across all of our processes and working close to our customers."
Executive SummaryThe 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 2017.
QUARTERLY RESULTS
|
NET SALES BY GEOGRAPHY |
|||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net sales |
15,303.0 |
13,684.9 |
1,618.1 |
11.8 | |
|
Net sales in Mexico |
11,091.5 |
9,949.3 |
1,142.2 |
11.5 | |
|
Net sales in the U.S. |
4,211.5 |
3,735.6 |
475.9 |
12.7 | |
|
NET SALES BY SEGMENT |
|||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net sales |
15,303.0 |
13,684.9 |
1,618.1 |
11.8 | |
|
Poultry |
13,774.5 |
12,286.6 |
1,487.9 |
12.1 | |
|
Other |
1,528.4 |
1,398.3 |
130.1 |
9.3 | |
|
NET VOLUME SOLD BY SEGMENT |
||||
|
In tons |
Change | |||
|
1Q18 |
1Q17 |
Volume |
% | |
|
Total sales volume: |
546,750 |
528,099 |
18,651 |
3.53 |
|
Poultry |
422,181 |
419,219 |
2,963 |
0.71 |
|
Others |
124,569 |
108,880 |
15,689 |
14.41 |
In 1Q18, the Company's net sales totaled $15,303.0 million; $1,618.1 million or 11.8% more than $13,684.9 million reported in 1Q17. This was a result of price increases in peso terms and more volume sold in our main product lines.
In 1Q18, sales of our U.S. operations were also strong and represented 27.5% of our total sales compared with 27.3% in 1Q17.
|
GROSS PROFIT |
|||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Cost of sales |
12,085.8 |
11,493.3 |
592.5 |
5.2 | |
|
Gross profit |
3,217.2 |
2,191.6 |
1,025.6 |
46.8 | |
|
Gross margin |
21.0% |
16.0% |
- |
- | |
The cost of sales totaled $12,085.8 million, representing $592.5 million or 5.2% higher than $11,493.3 million reported in the same period of 2017. This increase was a result of more volume sold, and a mix effect in our US operations for higher percentage of further process products.
The Company's gross profit in 1Q18 was $3,217.2 million, with a gross margin of 21.0%. This result is higher when compared to a gross profit of $2,191.6 million and a gross margin of 16.0% reported in 1Q17.
|
Selling, general and administrative expenses ("SG&A") | |||||
|
In millions of pesos |
|||||
|
1Q18 |
1Q17 |
Change | |||
|
$ |
$ |
$ |
% | ||
|
Total SG&A |
1,385.5 |
1,261.2 |
124.2 |
9.8 | |
Total SG&A expenses in 1Q18 were $1,385.5 million; $124.2 million or 9.8% more than the $1,261.2 million reported 1Q17. Total SG&A expenses, as a percentage of net sales, represent 9.1% in 1Q18 and 9.2% in 1Q17.
|
Other income (expense), net | |||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Other income (expense), net |
(9.2) |
(0.5) |
(8.7) |
1,637.9 | |
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 1Q18, we had other expenses of $9.2 million, compared with other expenses of $0.5 million reported in 1Q17.
|
OPERATING INCOME |
|||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Operating income |
1,822.5 |
929.8 |
892.7 |
96.0 | |
|
Operating margin |
11.9% |
6.8% |
- |
- | |
Operating income in 1Q18 totaled $1,822.5 million for an operating margin of 11.9%; higher than an operating income of $929.8 million and a 6.8% operating margin reported in 1Q17. The increase in operating income is mainly attributed to higher gross profit than in 1Q17.
|
NET FINANCIAL INCOME |
|||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net Financial Income (Expense) |
(93.8) |
(69.7) |
(24.0) |
34.4 | |
|
Financial Income |
204.6 |
143.0 |
61.7 |
43.1 | |
|
Financial Expense |
298.4 |
212.7 |
85.7 |
40.3 | |
In 1Q18, the Company reported net financial expenses of $93.8 million, compared to net financial expense of $69.7 million reported in the same period of 2017, mainly due to exchange losses as the Mexican peso strengthened at the end of the quarter.
|
TAXES FOR THE PERIOD |
|||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Total Taxes |
467.8 |
207.2 |
260.6 |
125.7 | |
|
Income tax |
315.9 |
131.2 |
184.7 |
140.7 | |
|
Deferred income tax |
151.9 |
76.0 |
75.9 |
99.9 | |
Total taxes for the 1Q18 were $467.8 million, compared to $207.2 million in the same period of 2017.
|
NET INCOME |
|||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net income |
1,260.9 |
652.8 |
608.1 |
93.1 | |
|
Net margin |
8.2% |
4.8% |
- |
- | |
|
Non-Controlling Interest income |
5.3 |
0.7 |
4.5 |
n/a | |
|
Net controlling interest income |
1,255.6 |
652.1 |
603.5 |
n/a | |
|
Basic and diluted income per share1 |
2.09 |
1.09 |
1.0 |
n/a | |
|
Basic and diluted income per ADR2 |
25.11 |
13.04 |
12.1 |
n/a | |
|
Weighted average Shares outstanding3 |
600,000 |
600,000 |
- |
- | |
|
1 In pesos | |||||
|
2 in pesos, an ADR is equal to twelve shares | |||||
|
3 In thousands of shares | |||||
The net income for 1Q18 was $1,260.9million, representing a basic and diluted income of $2.09 pesos per share. This result compares to a net income of $652.8 million, which represented a net income of $1.09 pesos of basic and diluted income per share in 1Q17. Net margin for the 1Q18 was 8.2% compared to 4.8% reported in 1Q17.
|
EBITDA AND ADJUSTED EBITDA |
|||||
|
In millions of pesos |
1Q18 |
1Q17 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net controlling interest income |
1,255.6 |
652.1 |
603.5 |
92.6 | |
|
Income tax expense (benefit) |
467.8 |
207.2 |
260.6 |
125.7 | |
|
Result in associates |
5.3 |
0.7 |
4.5 |
611.3 | |
|
Net finance (income) expense |
93.8 |
69.7 |
24.0 |
34.4 | |
|
Depreciation and amortization |
268.5 |
268.5 |
- |
- | |
|
EBITDA |
2,091.0 |
1,198.3 |
892.7 |
74.5 | |
|
EBITDA Margin (%) |
13.7% |
8.8% |
- |
- | |
|
Net sales |
15,303.0 |
13,684.9 |
1,618.1 |
11.8 | |
EBITDA in 1Q18 reached $2,091.0 million, representing an EBITDA margin of 13.7%, compared to an EBITDA of $1,198.3 million in 1Q17 with an EBITDA margin of 8.8%.
BALANCE SHEET DATA
|
BALANCE SHEET DATA |
|||||
|
In millions of pesos |
Mar 31, 2017 |
Dec. 31, 2017 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
TOTAL ASSETS |
50,195.0 |
50,557.4 |
(362.4) |
(0.7) | |
|
Cash and cash equivalents |
17,857.3 |
17,240.1 |
617.1 |
3.6 | |
|
Accounts receivable |
3,357.4 |
3,627.2 |
(269.8) |
(7.4) | |
|
TOTAL LIABILITIES |
14,689.3 |
14,879.5 |
(190.2) |
(1.3) | |
|
Accounts payable |
4,306.9 |
3,739.5 |
567.4 |
15.2 | |
|
Short-term debt |
3,309.9 |
3,701.9 |
(392.0) |
(10.6) | |
|
Long-term debt |
1,554.0 |
1,554.0 |
(0.0) |
(0.0) | |
|
TOTAL STOCKHOLDERS' EQUITY |
36,569.2 |
35,677.9 |
891.3 |
2.5 | |
|
Capital stock |
1,174.4 |
1,174.4 |
- |
- | |
Cash and equivalents as of March 31, 2018 totaled $17,857.3 million; $617.1 million or 3.6% more than $17,240.1 million as of December 31, 2017.
Total debt as of March 31, 2017 totaled $4,863.9 million, compared to $5,255.9 million reported as of December 31, 2017.
Net cash as of March 31, 2018 was $12,993.4 million, compared to net cash of $11,984.2 million as of December 31, 2017.
CAPEX
|
CAPITAL EXPENDITURES | |||||
|
In millions of pesos |
2018 |
2017 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Capital Expenditures |
304.0 |
643.3 |
(339.4) |
(52.7) | |
Total CAPEX for the 1Q18 was $304.0 million, which was mainly allocated toward organic growth and productivity projects across all our facilities.
STOCK INFORMATION
|
As of March 31, 2018 | ||
|
Total Shares |
600,000,000 | |
|
Total free float |
26.75% | |
|
Market cap (millions of pesos) |
$57,180 | |
|
SHARE PRICE |
|||||||||
|
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 |
Close |
High |
Low |
Close |
|||
|
Mar-18 |
96.47 |
92.37 |
95.30 |
62.67 |
58.83 |
61.95 |
|||
|
Feb-18 |
94.06 |
89.88 |
91.66 |
61.46 |
57.41 |
58.01 |
|||
|
Jan-18 |
98.16 |
93.03 |
95.65 |
63.83 |
57.88 |
61.94 |
|||
|
Dec-17 |
95.56 |
89.31 |
93.62 |
60.06 |
56.87 |
57.30 |
|||
|
Nov-17 |
94.10 |
88.07 |
90.75 |
59.15 |
56.64 |
58.02 |
|||
|
Oct-17 |
102.00 |
93.52 |
94.15 |
67.61 |
58.70 |
58.89 |
|||
|
Source: Yahoo Finances |
|||||||||
|
ANALYST COVERAGE | ||
|
Institution |
Analyst name |
|
|
ACTINVER |
José Antonio Cebeira |
|
|
BBVA BANCOMER |
Miguel Ulloa |
|
|
GBM |
Miguel Mayorga |
|
|
INTERACCIONES CASA DE BOLSA |
Martin Lara |
|
|
JPMORGAN |
Ulises Argote |
|
|
INVEX |
Giselle Mojica |
|
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $18.30 per USD $1.0, which corresponds to the rate at the close of March 28, 2018, 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 |
2018 |
2018 |
2017* | ||||
|
TOTAL ASSETS |
$ |
2,742.9 |
50,195.0 |
50,557.4 | |||
|
Total current assets |
1,542.2 |
28,222.9 |
28,225.0 | ||||
|
Cash and cash equivalents |
975.8 |
17,857.3 |
17,240.1 | ||||
|
Total accounts receivable |
183.5 |
3,357.4 |
3,627.2 | ||||
|
Inventories |
334.0 |
6,111.4 |
6,669.5 | ||||
|
Other current assets |
49.0 |
896.8 |
688.2 | ||||
|
Total non current assets |
1,200.7 |
21,972.1 |
22,332.4 | ||||
|
Net property, plant and equipment |
934.2 |
17,095.6 |
17,320.0 | ||||
|
Other non current Assets |
266.5 |
4,876.5 |
5,012.3 | ||||
|
TOTAL LIABILITIES |
$ |
744.6 |
13,625.9 |
14,879.5 | |||
|
Total current liabilities |
425.2 |
7,780.3 |
9,185.7 | ||||
|
Notes payable to banks |
180.9 |
3,309.9 |
3,701.9 | ||||
|
Accounts payable |
177.2 |
3,243.5 |
3,739.5 | ||||
|
Other taxes payable and other accruals |
67.0 |
1,226.9 |
1,744.3 | ||||
|
Total long-term liabilities |
319.4 |
5,845.6 |
5,693.8 | ||||
|
Long-term debt |
84.9 |
1,554.0 |
1,554.0 | ||||
|
Other non current liabilities |
14.3 |
262.3 |
296.4 | ||||
|
Deferred income taxes |
220.2 |
4,029.4 |
3,843.4 | ||||
|
TOTAL STOCKHOLDERS' EQUITY |
$ |
1,998.3 |
36,569.2 |
35,677.9 | |||
|
Capital stock |
64.2 |
1,174.4 |
1,174.4 | ||||
|
Commission in shares issued |
22.6 |
414.4 |
414.4 | ||||
|
Repurchased shares |
- |
- |
- | ||||
|
Retained earnings |
1,864.3 |
34,116.7 |
32,861.1 | ||||
|
Others accounts |
43.7 |
799.4 |
1,169.1 | ||||
|
Non controlling interest |
3.5 |
64.3 |
59.0 | ||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
2,742.9 |
50,195.0 |
50,557.4 | |||
|
*Audited | |||||||
CONSOLIDATED STATEMENT OF INCOME
|
First Quarter Results, ended March 31: | ||||||
|
-Unaudited- | ||||||
|
U.S. Dollar |
||||||
|
In millions pesos |
2018 |
2018 |
2017* | |||
|
Net sales |
$ |
836.2 |
15,303.0 |
13,684.9 | ||
|
Cost of sales |
660.4 |
12,085.8 |
11,493.3 | |||
|
Gross profit |
175.8 |
3,217.2 |
2,191.6 | |||
|
SG&A |
75.7 |
1,385.5 |
1,261.2 | |||
|
Other income (expenses), net |
(0.5) |
(9.2) |
(0.5) | |||
|
Operating income |
99.6 |
1,822.5 |
929.8 | |||
|
Net finance income |
(5.1) |
(93.8) |
-69.7 | |||
|
Income tax |
25.6 |
467.8 |
207.2 | |||
|
Net Income |
$ |
68.9 |
1,260.9 |
652.8 | ||
|
Non-controlling interest |
0.29 |
5.3 |
0.7 | |||
|
Net controlling interest profit |
68.6 |
1,255.6 |
652.1 | |||
|
Basic and diluted earnings per share |
0.11 |
2.09 |
1.09 | |||
|
Basic and diluted earnings per ADR |
1.37 |
25.11 |
13.04 | |||
|
Weighted average Shares outstanding1 |
600,000 |
600,000 |
600,000 | |||
|
EBITDA Result |
$ |
114.3 |
2,091.0 |
1,198.3 | ||
|
Gross margin |
21.0% |
21.0% |
16.0% | |||
|
Operating margin |
11.9% |
11.9% |
6.8% | |||
|
Net margin |
8.2% |
8.2% |
4.8% | |||
|
EBITDA margin |
13.7% |
13.7% |
8.8% | |||
|
1 In thousands | ||||||
|
* Audited | ||||||
CONSOLIDATED STATEMENT OF CASH FLOWS
|
In million of pesos |
||||||
|
-Unaudited- |
||||||
|
U.S. Dollar |
March 31, | |||||
|
2018 |
2018 |
2017 | ||||
|
NET MAJORITY INCOME BEFORE INCOME TAX |
$ |
94.5 |
1,728.7 |
860.1 | ||
|
ITEMS RELATING TO INVESTING ACTIVITIES: |
9.4 |
172.0 |
219.5 | |||
|
Depreciation and others |
16.7 |
305.0 |
268.5 | |||
|
Income (loss) on sale of plant and equipment |
0.2 |
3.7 |
6.0 | |||
|
Other Items |
(7.5) |
(136.7) |
(55.0) | |||
|
NET CASH GENERATED FROM NET INCOME BEFORE TAXES |
103.9 |
1,900.8 |
1,079.5 | |||
|
CASH GENERATED OR USED IN THE OPERATION: |
(32.2) |
(589.6) |
(398.8) | |||
|
Decrease (increase) in accounts receivable |
6.5 |
119.3 |
489.9 | |||
|
Decrease (increase) in inventories |
27.2 |
498.1 |
358.9 | |||
|
Increase (decrease) in accounts payable |
(20.8) |
(380.9) |
(667.9) | |||
|
Increase (decrease) in other liabilities |
(45.1) |
(826.2) |
(579.7) | |||
|
NET CASH FLOW FROM OPERATING ACTIVITIES |
71.6 |
1,311.1 |
680.7 | |||
|
NET CASH FLOW FROM INVESTING ACTIVITIES |
(3.4) |
(61.6) |
(392.8) | |||
|
Acquisition of property, plant and equipment |
(16.6) |
(304.0) |
(643.3) | |||
|
Proceeds from sales of property plant and equipment |
0.2 |
4.4 |
12.9 | |||
|
Other Items |
13.0 |
238.0 |
237.7 | |||
|
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES |
68.3 |
1,249.5 |
287.9 | |||
|
Net cash provided by financing activities: |
(34.6) |
(632.4) |
(529.7) | |||
|
Proceeds from loans |
164.3 |
3,006.8 |
- | |||
|
Principal payments on loans |
(174.9) |
(3,201.5) |
(1.0) | |||
|
Dividends paid |
- |
- |
- | |||
|
Other items |
(23.9) |
(437.6) |
(528.6) | |||
|
Net increase (decrease) in cash and equivalents |
33.7 |
617.1 |
(241.7) | |||
|
Cash and investments at the beginning of year |
$ |
942.1 |
17,240.1 |
15,651.5 | ||
|
CASH AND INVESTMENTS AT END OF PERIOD |
$ |
975.8 |
17,857.3 |
15,409.8 | ||
DERIVATIVES POSITION REPORT
|
First Quarter 2018 | |||||||||||||||||||
|
Thousands of Mexican Pesos, as of March 31, 2018 |
ANEXO 1 | ||||||||||||||||||
|
TYPE OF FINANCIAL INSTRUMENT |
OBJECTIVE |
NOTIONAL |
VALUE OF THE RELATED COMMODITY |
REASONABLE VALUE |
AMOUNTS DUE BY YEAR |
GUARANTIES REQUIRED | |||||||||||||
|
1Q-2018 |
4Q-2017 |
1Q-2018 |
4Q-2017 | ||||||||||||||||
|
Forward Vanilla and KO Forwards |
Hedge |
$ |
1,175,566 |
$ |
18.30 |
$ |
19.66 |
$ |
-41,144 |
$ |
-8,030 |
in 2018 |
The deals consider the possibility of margin calls but not another kind of guarantee | ||||||
|
Futures for corn and soybean meal |
Hedge |
$ |
28,669 |
CORN |
CORN |
$ |
842 |
-$ |
3,329 |
in 2018 | |||||||||
|
In USD per Bushel |
In USD per Bushel | ||||||||||||||||||
|
month |
price |
month |
price | ||||||||||||||||
|
May-18 |
$ |
3.878 |
Mar-18 |
$ |
3.508 | ||||||||||||||
|
Sep-18 |
$ |
4.033 |
Sep-18 |
$ |
3.748 | ||||||||||||||
|
SOYBEAN MEAL |
SOYBEAN MEAL | ||||||||||||||||||
|
In USD per ton |
In USD per ton | ||||||||||||||||||
|
month |
price |
month |
price | ||||||||||||||||
|
May-18 |
$ |
384.0 |
Mar-18 |
$ |
316.8 | ||||||||||||||
|
Options of Corn |
Hedge |
$ |
68,384 |
CORN |
CORN |
$ |
814 |
$ |
172 |
92% in 2018 and 8% in 2019 | |||||||||
|
In USD per Bushel |
In USD per Bushel | ||||||||||||||||||
|
month |
price |
month |
price | ||||||||||||||||
|
Jul-18 |
$ |
3.678 |
Mar-18 |
$ |
3.508 | ||||||||||||||
|
Sep-18 |
$ |
4.033 |
May-18 |
$ |
3.590 | ||||||||||||||
|
Dec-18 |
$ |
3.970 |
|||||||||||||||||
|
Mar-19 |
$ |
4.183 |
Jul-18 |
$ |
3.678 | ||||||||||||||
|
Options of soybean meal |
Hedge |
$ |
94,633 |
SOYBEAN MEAL |
SOYBEAN MEAL |
-$ |
784 |
$ |
227 |
86% in 2018 and 14% in 2019 | |||||||||
|
In USD per ton |
In USD per ton | ||||||||||||||||||
|
month |
price |
month |
price | ||||||||||||||||
|
May-18 |
$ |
384.0 |
|||||||||||||||||
|
Aug-18 |
$ |
383.2 |
|||||||||||||||||
|
Sep-18 |
$ |
380.0 |
Mar-18 |
$ |
316.8 | ||||||||||||||
|
-The total financial instruments do not exceed 5% of total assets as of March 31, 2018 | |||||||||||||||||||
|
-The notional value represents the net position as of March 31, 2018 at the exchange rate of Ps. 18.30 per one dolar | |||||||||||||||||||
|
-A negative value means an unfavorable effect for the Company | |||||||||||||||||||
|
First Quarter 2018 | ||||||||||||||||
|
Thousands of Mexican Pesos, as of March 31, 2018 |
PROBABLE SCENARIO | |||||||||||||||
|
TYPE OF FINANCIAL NSTRUMENT |
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% | |||||||||||
|
Forwards Vanilla and Ko Forwards |
-$ |
41,144 |
$ |
17.85 |
$ |
18.76 |
$ |
19.22 |
Direct |
-$ |
70,533 |
-$ |
11,755 |
$ |
17,634 | |
|
-5% |
5% |
10% |
-5% |
5% |
10% | |||||||||||
|
Futures of Corn: (2) |
$ |
842 |
$ |
3.684 |
$ |
4.072 |
$ |
4.266 |
The effect will materialize as the inventory is consumed |
-$ |
591 |
$ |
2,275 |
$ |
3,708 | |
|
Futures of Soybean Meal: (2) |
$ |
364.8 |
$ |
403.2 |
$ |
422.4 | ||||||||||
|
Options for Corn |
$ |
814 |
$ |
3.684 |
$ |
4.072 |
$ |
4.266 |
$ |
1,443 |
$ |
4,233 |
$ |
7,651 | ||
|
Options of Soybean Meal |
-$ |
784 |
$ |
364.8 |
$ |
403.2 |
$ |
422.4 |
-$ |
5,515 |
$ |
3,946 |
$ |
8,676 | ||
|
(1)The reference value is the exchange rate of Ps. $18.30 per USD as of March 31, 2018. | ||||||||||||||||
|
(2)The reference values are; the future of corn for May 2018, $3.8780 USD/bushel and the future of soybeanmeal for May 2018, $384.0 USD/ton. | ||||||||||||||||
|
All the evaluations are performed according with the corresponding future, here only the first month futures are shown | ||||||||||||||||
|
(3)The Company has credit lines with the majority of its counterparts, so that the effect in cash flow is lower than the amount shown. | ||||||||||||||||
|
-A negative value means an unfavorable effect for the Company.
| ||||||||||||||||
|
First Quarter 2018 | |||||||||||
|
Thousands of Mexican Pesos, as of March 31, 2018 |
STRESS SCENARIO | ||||||||||
|
TYPE OF FINANCIAL INSTRUMENT |
REASONABLE VALUE |
VALUE OF THE RELATED COMMODITY |
EFFECT ON THE INCOME STATEMENT |
EFFECT ON THE CASH FLOW | |||||||
|
Reference Value | |||||||||||
|
-50% |
-25% |
25% |
50% |
-50% |
-25% |
25% |
50% | ||||
|
Forward Vanilla |
-$ |
41,144 |
$9.15 |
$13.73 |
$22.88 |
$27.46 |
Direct |
-$628,927 |
-$335,035 |
$218,504 |
$477,616 |
CONFERENCE CALL INFORMATION
The Company will host its first quarter 2018 earnings call, on Thursday, April 26th, 2018. The earnings call will take place at 9:00 am Central Time (10:00 am ET).
To participate in the earnings call, please dial:
Toll free in the U.S.: 1 (888) 771-4371Toll free in Mexico: 001 866 779 0965Toll Local Mexico: 52 55 6722 5257Toll in the Brazil: 0800 761 0710
A current list of available local and international free phone telephone numbers: http://web.meetme.net/r.aspx?p=12&a=UOLvXrKVZpvjqE
Confirmation Number: 46815920
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.
IR contact information: Maria Guadalupe Jaquez[email protected] Andrea Guerrero[email protected] T. +52(461)618 3555
View original content:http://www.prnewswire.com/news-releases/bachoco-announces-first-quarter-2018-results-300636583.html
SOURCE Industrias Bachoco, S.A.B. de C.V.
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