Industrias Bachoco Announces Second Quarter 2016 Results
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E-mailCELAYA, Mexico, July 25, 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 second quarter ("2Q16") and first half ("1H16") 2016 ended June 30, 2016. All figures have been prepared in accordance with International Financial Reporting Standard ("IFRS"), and are presented in nominal million Mexican Pesos ("$").
HIGHLIGHTS- 2016 vs 2015
- Net sales increased 12.9% in 2Q16.
- EBITDA margin was 17.4% for 2Q16.
- Earnings per basic and diluted share totaled $2.63 for 2Q16.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: "This second quarter was in line with the seasonal behavior of the poultry industry. We observed a normalized growth rate in both of the markets in which we compete, and a strong demand in the Mexican market, resulting in a better balance between supply and demand.
An increase in our volume sold and prices recovered, mainly in chicken, allowed us to increase our total sales by 12.9% in the quarter when compared to the same period of 2015.
The effects on the cost of raw materials we saw in 1Q16 due to the Mexican peso depreciation versus the US dollar, continued for the second quarter of 2016, increasing our cost of sales.
At the end of the quarter, we were able to reach an EBITDA of $2,329.6 million, 11.9% higher than the EBITDA of the same quarter of 2015. Our EBITDA margin for 2Q16 was 17.4% versus 17.6% of 2Q15.
Our earnings per basic and diluted share for 2Q16 was $2.63, higher than the $2.32 for same quarter of 2015.
The Company's net cash reached $11,283.0 million, strengthening our financial position."
EXECUTIVE SUMMARY
The following financial information is expressed in millions of nominal pesos, except for amounts per share or per ADR, with comparative figures for the same period in 2015.
QUARTERLY RESULTS
|
NET SALES BY GEOGRAPHY |
|||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net Sales |
13,362.1 |
11,837.2 |
1,524.9 |
12.9 | |
|
Net sales in Mexico |
10,115.5 |
9,123.9 |
991.6 |
10.9 | |
|
Net sales in the U.S. |
3,246.6 |
2,713.3 |
533.3 |
19.7 | |
|
NET SALES BY SEGMENT |
|||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net Sales |
13,362.1 |
11,837.2 |
1,524.9 |
12.9 | |
|
Poultry |
12,067.7 |
10,703.9 |
1,363.8 |
12.7 | |
|
Other |
1,294.4 |
1,133.3 |
161.1 |
14.2 | |
NET VOLUME SOLD BY SEGMENT
|
In tons |
Change | |||||
|
2Q16 |
2Q15 |
Volume |
% | |||
|
Total sales volume: |
524,083 |
499,355 |
24,729 |
4.95 | ||
|
Poultry |
403,217 |
392,749 |
10,468 |
2.67 | ||
|
Others |
120,867 |
106,606 |
14,261 |
13.38 | ||
The Company's 2Q16 net sales totaled $13,362.1 million, $1,524.9 million or 12.9% more than $11,837.2 million reported in 2Q15. The increase is a result of more volume sold in our main product lines and price increases in chicken, and swine. This was partially offset by lower prices in table eggs when compared to 2Q15.
In 2Q16, sales of our U.S. operations represented 24.3% of our total sales compared to 22.9% in 2Q15.
|
GROSS PROFIT |
|||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Cost of sales |
10,079.1 |
8,914.2 |
1,164.9 |
13.1 | |
|
Gross profit |
3,283.0 |
2,923.1 |
360.0 |
12.3 | |
|
Gross margin |
24.6% |
24.7% |
- |
- | |
In 2Q16, cost of sales was $10,079.1 million; $1,164.9 million or 13.1% higher than $8,914.2 million reported in 2Q15. This increase was due to higher volume sold and higher raw material costs in Mexican peso terms, in part due to depreciation of the Mexican peso versus US dollar.
The Company´s gross profit in 2Q16 was $3,283.0 million, 12.3% higher than the gross profit of $2,923.1 million with a gross margin of 24.6% for 2Q16 vs 24.7% in 2Q15.
|
Selling, general and administrative expenses ("SG&A") | |||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Total SG&A |
1,185.0 |
1,044.5 |
140.5 |
13.4 | |
Total SG&A expenses in 2Q16 were $1,185.0 million, $140.5 million higher than the $1,044.5 million reported in 2Q15. Total SG&A expenses as a percentage of net sales represented 8.9% in 2Q16, similar to the one in 2Q15.
|
other income (expense), net | |||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Other income (expense), net |
(6.4) |
5.0 |
(11.4) |
(229.6) | |
This item mainly includes the sale of unused assets as well as hens and other by-products. We record such sales as expenses when the sale price is below the book value of those assets.
In 2Q16, we recorded other expense of $6.4 million, compared with other income of $5.0 million reported in 2Q15.This is mainly attributed to a loss on the sale of unused assets.
|
OPERATING INCOME |
|||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Operating income |
2,091.6 |
1,883.5 |
208.1 |
11.0 | |
|
Operating margin |
15.7% |
15.9% |
- |
- | |
Operating income in 2Q16 totaled $2,091.6 million, $208.1 higher than $1,883.5 million reported in 2Q15. This represents an operating margin of 15.7% for 2Q16, slightly lower when compared to the same period of 2015.
The increase in operating income is mainly attributed to higher gross income in 2Q16.
|
NET FINANCIAL INCOME |
|||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net Financial Income |
197.3 |
132.1 |
65.2 |
49.3 | |
|
Financial Income |
244.9 |
161.7 |
83.2 |
51.5 | |
|
Financial Expense |
47.6 |
29.6 |
18.0 |
61.0 | |
In 2Q16, the Company reported net financial income of $197.3 million, compared to $132.1 million reported in the same period of 2015. The increase is mainly attributed to higher interest income.
|
TAXES FOR THE PERIOD |
|||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Total Taxes |
708.9 |
621.1 |
87.8 |
14.1 | |
|
Income tax |
547.1 |
580.5 |
(33.4) |
(5.7) | |
|
Deferred income tax |
161.8 |
40.6 |
121.2 |
298.1 | |
Total taxes for the 2Q16 were $708.9 million, compared with total taxes of $621.1 million in the same period of 2015.This increase is attributed to higher income before taxes.
|
NET INCOME |
|||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net income |
1,580.0 |
1,394.5 |
185.5 |
13.3 | |
|
Net margin |
11.8% |
11.8% |
- |
- | |
|
Basic and diluted earnings per share1 |
2.63 |
2.32 |
- |
- | |
|
Basic and diluted earnings per ADR2 |
31.55 |
27.90 |
- |
- | |
|
Weighted average Shares outstanding3 |
599,946 |
599,442 |
- |
- | |
1 In pesos2 in pesos, one ADR equals to twelve shares3 In thousands of shares
The net income for 2Q16 was $1,580.0 million, representing a net income of $2.63 pesos per share, compared with a net income of $1,394.5 million, which represented $2.32 pesos of net income per share in 2Q15.This increase is mainly attributed to better operating and financial results.
Net margin in 2Q16 was 11.8%, same percentage as reported in 2Q15.
|
EBITDA AND ADJUSTED EBITDA |
|||||
|
In millions of pesos |
2Q16 |
2Q15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net income |
1,577.2 |
1,393.5 |
183.7 |
13.2 | |
|
Income tax expense (benefit) |
708.9 |
621.1 |
87.8 |
14.1 | |
|
Result in associates |
2.8 |
1.0 |
1.8 |
178.6 | |
|
Net finance (income) expense |
(197.3) |
(132.1) |
(65.2) |
49.3 | |
|
Depreciation and amortization |
238.0 |
197.5 |
40.6 |
20.5 | |
|
EBITDA |
2,329.6 |
2,081.0 |
248.6 |
11.9 | |
|
EBITDA Margin (%) |
17.4% |
17.6% |
- |
- | |
|
Other expense (income) net |
6.4 |
(5.0) |
11.4 |
(229.6) | |
|
Adjusted EBITDA |
2,336.1 |
2,076.0 |
260.0 |
12.5 | |
|
Adjusted EBITDA Margin |
17.5% |
17.5% |
- |
- | |
|
Net revenues |
13,362.1 |
11,837.2 |
1,524.9 |
12.9 | |
EBITDA in 2Q16 reached $2,329.6 million, representing an EBITDA margin of 17.4%, compared to an EBITDA of $2,081.0 million in 2Q15, with an EBITDA margin of 17.6%.
The adjusted EBITDA in 2Q16 reached $2,336.1 million, representing an adjusted EBITDA margin of 17.5%, compared to adjusted EBITDA of $2,076.0 million in 2Q15, with an adjusted EBITDA margin of 17.5%.
ACCUMULATED RESULTS
|
NET SALES BY GEOGRAPHY |
|||||
|
In millions of pesos |
1H16 |
1H15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net Sales |
25,201.5 |
23,243.2 |
1,958.2 |
8.4 | |
|
Net sales in Mexico |
18,937.1 |
17,768.6 |
1,168.5 |
6.6 | |
|
Net sales in the U.S. |
6,264.4 |
5,474.7 |
789.7 |
14.4 | |
|
NET SALES BY SEGMENT |
|||||
|
In millions of pesos |
1H16 |
1H15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net Sales |
25,201.5 |
23,243.2 |
1,958.2 |
8.4 | |
|
Poultry |
22,712.2 |
21,117.2 |
1,595.1 |
7.6 | |
|
Other |
2,489.2 |
2,126.0 |
363.2 |
17.1 | |
NET VOLUME SOLD BY SEGMENT
|
In metric tons |
Change | |||||
|
1H16 |
1H15 |
Volume |
% | |||
|
Total sales volume: |
1,045,501 |
983,855 |
61,646 |
6.27 | ||
|
Poultry |
814,676 |
780,444 |
34,232 |
4.39 | ||
|
Others |
230,825 |
203,411 |
27,414 |
13.48 | ||
During the first half of 2016, net sales totaled $25,201.5 million; $1,958.2 million or 8.4% more than $23,243.2 million reported in the same period of 2015. The increase in sales is mainly attributable to higher volume sold in our main product lines as compared with the first half of 2015.
In 1H16, sales of our U.S. operations represented 24.9% of our total sales, compared with 23.6% in 1H15.
|
Operating Results |
|||||
|
In millions of pesos |
1H16 |
1H15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Cost of Sales |
20,091.3 |
17,636.6 |
2,454.7 |
13.9 | |
|
Gross Profit |
5,110.2 |
5,606.6 |
(496.4) |
(8.9) | |
|
Total SG&A |
2,306.8 |
2,052.7 |
254.0 |
12.4 | |
|
Other Income (expense) |
(15.5) |
(8.2) |
(7.3) |
88.6 | |
|
Operating Income |
2,787.9 |
3,545.6 |
(757.8) |
(21.4) | |
|
Net Financial Income |
333.7 |
313.1 |
20.6 |
6.6 | |
|
Income Tax |
944.7 |
1,198.5 |
(253.8) |
(21.2) | |
|
Net Income |
2,176.9 |
2,660.2 |
(483.3) |
(18.2) | |
In 1H16, the cost of sales totaled $20,091.3 million; $2,454.7 million or 13.9% higher than $17,636.6 million reported in 1H15. The increase in cost of sales is mainly attributed to higher volume sold and higher raw material costs in Mexican peso terms when compared to the same period of 2015.
As a result, we reached a gross profit of $5,110.2 million and a gross margin of 20.3% in 1H16, a lower result than $5,606.6 million of gross profit and a margin of 24.1% reached in the same period of 2015.
Total SG&A expenses in 1H16 were $2,306.8 million, $254.0 million or 12.4% more than the $2,052.7million reported in 1H15. In 1H16 total SG&A expenses as a percentage of net sales represented 9.2% compare with 8.8% in 1H15. This increase is mainly attributed to higher volume sold.
In 1H16 we had other expenses of $15.5 million, compared with other expenses of $8.2 million reported in 1H15.
The operating income in 1H16 was $2,787.9 million, which represents an operating margin of 11.1%, a decrease of 21.4% from an operating income of $3,545.6 million and an operating margin of 15.3% in 1H15.
The net financial income in 1H16 was $333.7 million, higher when compared to a net financial income of $313.1 million in 1H15, mainly attributed to higher interest income.
Total taxes were $944.7 million as of June 30, 2016. These taxes include $704.6 million of income tax and $240.1 million of deferred income taxes. This figure compares to total taxes of $1,198.5 million in 1H15; the decrease was due to lower income before taxes.
All the above resulted in a net income of $2,176.9 million or 8.6% of net margin in the 1H16, which represents $3.62 pesos of earnings per share, while in the 1H15 the net income totaled $2,660.2 million, 11.4% of net margin and $4.43 pesos of net income per share.
|
EBITDA AND ADJUSTED EBITDA |
|||||
|
In millions of pesos |
1H16 |
1H15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Net controlling interest profit |
2,172.4 |
2,656.9 |
(484.5) |
(18.2) | |
|
Income tax expense (benefit) |
944.7 |
1,198.5 |
(253.8) |
(21.2) | |
|
Result in associates |
4.6 |
3.4 |
1.2 |
35.4 | |
|
Net finance (income) expense |
(333.7) |
(313.1) |
(20.6) |
6.6 | |
|
Depreciation and amortization |
462.8 |
396.9 |
65.9 |
16.6 | |
|
EBITDA |
3,250.7 |
3,942.5 |
(691.9) |
(17.5) | |
|
EBITDA Margin (%) |
12.9% |
17.0% |
- |
- | |
|
Other expense (income) net |
15.5 |
8.2 |
7.3 |
88.6 | |
|
Adjusted EBITDA |
3,266.2 |
3,950.8 |
(684.6) |
(17.3) | |
|
Adjusted EBITDA Margin |
13.0% |
17.0% |
- |
- | |
|
Net revenues |
25,201.5 |
23,243.2 |
1,958.2 |
8.4 | |
EBITDA in 1H16 reached $3,250.7 million, representing an EBITDA margin of 12.9%, compared to EBITDA of $3,942.5 million in 1H15, with an EBITDA margin of 17.0%.
The adjusted EBITDA in 1H16 reached $3,266.2 million, representing an adjusted EBITDA margin of 13.0%, compared to adjusted EBITDA of $3,950.8 million in 1H15, with an adjusted EBITDA margin of 17.0%.
BALANCE SHEET
|
BALANCE SHEET DATA |
|||||
|
In millions of pesos |
June 30, 2016 |
Dec. 31, 2015 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
TOTAL ASSETS |
42,808.7 |
40,446.6 |
2,362.1 |
5.8 | |
|
Cash and cash equivalents |
15,243.0 |
15,288.9 |
(45.9) |
(0.3) | |
|
Accounts receivable |
3,128.0 |
2,727.9 |
400.1 |
14.7 | |
|
TOTAL LIABILITIES |
13,409.1 |
12,667.2 |
741.9 |
5.9 | |
|
Accounts payable |
3,890.8 |
3,966.0 |
(75.3) |
(1.9) | |
|
Short-term debt |
1,518.1 |
1,631.9 |
(113.7) |
(7.0) | |
|
Long-term debt |
2,441.9 |
2,495.1 |
(53.2) |
(2.1) | |
|
TOTAL STOCKHOLDERS' EQUITY |
29,399.7 |
27,779.4 |
1,620.3 |
5.8 | |
|
Capital stock |
1,174.4 |
1,174.4 |
0.0 |
0.0 | |
Cash and equivalents as of June 30, 2016 totaled $15,243.0 million vs $15,288.9 million as of December 31, 2015.
Total debt as of June 30, 2016 was $3,960.0 million, compared to $4,127.0 million reported as of December 31, 2015, mainly as a result of lower short-term bank debt.
Net cash as of June 30, 2016 was $11,283.0 million, compared to net cash of $11,161.9 million as of December 31, 2015.
|
CAPITAL EXPENDITURES | |||||
|
In millions of pesos |
1H16 |
1H15 |
Change | ||
|
$ |
$ |
$ |
% | ||
|
Capital Expenditures |
1,188.2 |
605.0 |
583.2 |
96.4 | |
Total CAPEX for the 1H16 was $1,188.2 million and $605.0 million in 1H15, mainly allocated toward organic growth and productivity projects across all of our facilities.
STOCK INFORMATION
|
As of June 30, 2016 | ||
|
Total Shares |
600,000,000 | |
|
Total free float |
26.75% | |
|
Market cap (millions of pesos) |
$45,168 | |
Source: yahoo finances
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 |
Average |
Close |
High |
Low |
Average |
Close |
||||||
|
Jun-16 |
76.20 |
73.61 |
74.92 |
75.28 |
50.05 |
46.04 |
48.22 |
48.98 |
||||||
|
May-16 |
77.31 |
70.42 |
74.25 |
75.85 |
51.46 |
46.60 |
49.08 |
49.55 |
||||||
|
Apr-16 |
76.78 |
71.63 |
74.69 |
72.30 |
52.68 |
49.70 |
51.32 |
50.32 |
||||||
|
Mar-16 |
77.40 |
73.05 |
74.94 |
73.91 |
53.52 |
49.11 |
51.00 |
51.28 |
||||||
|
Feb-16 |
74.00 |
65.45 |
70.89 |
72.98 |
49.11 |
43.15 |
46.12 |
48.28 |
||||||
|
Jan-16 |
70.40 |
62.51 |
67.45 |
65.45 |
48.67 |
41.17 |
44.82 |
43.32 |
||||||
ANALYST COVERAGE
|
Institution |
Analyst name |
|
|
ACTINVER |
José Antonio Cebeira |
|
|
BBVA BANCOMER |
Fernando Olvera |
|
|
GBM |
Miguel Mayorga |
|
|
INTERACCIONES CASA DE BOLSA |
Emma Ochoa |
|
|
JPMORGAN |
Pedro Leduc |
|
|
PUNTO CASA DE BOLSA |
Cristina Morales |
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $18.26 per USD $1.0, which corresponds to the rate at the close of June 30, 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 |
June 30, |
December 31, | |
|
In million pesos |
2016 |
2016 |
2015* |
|
TOTAL ASSETS |
$ 2,344.4 |
42,808.7 |
40,446.6 |
|
Total current assets |
1,423.0 |
25,983.3 |
24,722.0 |
|
Cash and cash equivalents |
834.8 |
15,243.0 |
15,288.9 |
|
Total accounts receivable |
171.3 |
3,128.0 |
2,727.9 |
|
Inventories |
310.1 |
5,662.0 |
5,056.1 |
|
Other current assets |
106.8 |
1,950.3 |
1,649.1 |
|
Total non current assets |
921.4 |
16,825.4 |
15,724.6 |
|
Net property, plant and equipment |
769.4 |
14,050.0 |
13,188.1 |
|
Other non current Assets |
152.0 |
2,775.4 |
2,536.5 |
|
TOTAL LIABILITIES |
$ 734.3 |
13,409.1 |
12,667.2 |
|
Total current liabilities |
390.9 |
7,138.5 |
6,642.8 |
|
Notes payable to banks |
83.1 |
1,518.1 |
1,631.9 |
|
Accounts payable |
213.1 |
3,890.8 |
3,966.0 |
|
Other taxes payable and other accruals |
94.7 |
1,729.6 |
1,044.9 |
|
Total long-term liabilities |
343.4 |
6,270.6 |
6,024.4 |
|
Long-term debt |
133.7 |
2,441.9 |
2,495.1 |
|
Other non current liabilities |
9.7 |
176.5 |
160.2 |
|
Deferred income taxes |
200.0 |
3,652.2 |
3,369.0 |
|
TOTAL STOCKHOLDERS' EQUITY |
$ 1,610.1 |
29,399.7 |
27,779.4 |
|
Capital stock |
64.3 |
1,174.4 |
1,174.4 |
|
Commission in shares issued |
22.7 |
414.4 |
414.0 |
|
Repurchased shares |
- |
- |
0.7 |
|
Retained earnings |
1,474.3 |
26,920.0 |
25,527.9 |
|
Others accounts |
45.8 |
835.9 |
611.8 |
|
Non controlling interest |
3.0 |
55.0 |
50.4 |
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY |
$ 2,344.4 |
42,808.7 |
40,446.6 |
|
*Audited |
|||
|
CONSOLIDATED STATEMENT OF INCOME | |||
|
Second Quarter Results, ended June 30: |
|||
|
-Unaudited- |
|||
|
U.S. Dollar |
|||
|
In millions pesos |
2016 |
2016 |
2015 |
|
Net sales |
$ 731.8 |
13,362.1 |
11,837.2 |
|
Cost of sales |
552.0 |
10,079.1 |
8,914.2 |
|
Gross profit |
179.8 |
3,283.0 |
2,923.1 |
|
SG&A |
64.9 |
1,185.0 |
1,044.5 |
|
Other income (expenses), net |
(0.4) |
(6.4) |
5.0 |
|
Operating income |
114.5 |
2,091.6 |
1,883.5 |
|
Net finance income |
10.8 |
197.3 |
132.1 |
|
Income tax |
38.8 |
708.9 |
621.1 |
|
Net Income |
$ 86.5 |
1,580.0 |
1,394.5 |
|
Non-controlling interest |
0.2 |
2.8 |
1.0 |
|
Net controlling interest profit |
86.4 |
1,577.2 |
1,393.5 |
|
Basic and diluted earnings per share |
0.14 |
2.63 |
2.32 |
|
Basic and diluted earnings per ADR |
1.73 |
31.55 |
27.90 |
|
Weighted average Shares outstanding1 |
599,946 |
599,946 |
599,442 |
|
EBITDA Result |
$ 127.6 |
2,329.6 |
2,081.0 |
|
Gross margin |
24.6% |
24.6% |
24.7% |
|
Operating margin |
15.7% |
15.7% |
15.9% |
|
Net margin |
11.8% |
11.8% |
11.8% |
|
EBITDA margin |
17.4% |
17.4% |
17.6% |
|
1In thousands |
|||
|
CONSOLIDATED STATEMENT OF INCOME | |||
|
Accumulated results, for the six months ended June 30. | |||
|
-Unaudited- |
|||
|
U.S. Dollar |
|||
|
In millions pesos |
2016 |
2016 |
2015 |
|
Net sales |
$ 1,380.1 |
25,201.5 |
23,243.2 |
|
Cost of sales |
1,100.3 |
20,091.3 |
17,636.6 |
|
Gross profit |
279.9 |
5,110.2 |
5,606.6 |
|
SG&A |
126.3 |
2,306.8 |
2,052.7 |
|
Other income (expenses), net |
(0.9) |
(15.5) |
(8.2) |
|
Operating income |
152.7 |
2,787.9 |
3,545.6 |
|
Net finance income |
18.3 |
333.7 |
313.1 |
|
Income tax |
51.7 |
944.7 |
1,198.5 |
|
Net income |
$ 189.2 |
2,176.9 |
2,660.2 |
|
Non-controlling interest |
0.2 |
4.6 |
3.4 |
|
Net controlling interest profit |
119.5 |
2,172.4 |
2,656.9 |
|
Basic and diluted earnings per share |
0.20 |
3.62 |
4.43 |
|
Basic and diluted earnings per ADR |
2.38 |
43.5 |
53.18 |
|
Weighted average Shares outstanding1 |
599,959 |
599,959 |
599,488 |
|
EBITDA Result |
$ 178.0 |
3,250.7 |
3,942.5 |
|
Gross margin |
20.3% |
20.3% |
24.1% |
|
Operating margin |
11.1% |
11.1% |
15.3% |
|
Net margin |
8.7% |
8.6% |
11.4% |
|
EBITDA margin |
12.9% |
12.9% |
17.0% |
|
1In thousands |
|||
|
CONSOLIDATED STATEMENT OF CASH FLOWS | |||
|
In million of pesos |
|||
|
-Unaudited- |
|||
|
U.S. Dollar |
June 30, | ||
|
2016 |
2016 |
2015 | |
|
NET MAJORITY INCOME BEFORE INCOME TAX |
$ 171.0 |
3,121.6 |
3,858.8 |
|
ITEMS THAT DO NOT REQUIRE CASH: |
- |
- |
- |
|
ITEMS RELATING TO INVESTING ACTIVITIES: |
(0.7) |
(12.0) |
193.0 |
|
Depreciation and others |
25.3 |
462.8 |
396.9 |
|
Income (loss) on sale of plant and equipment |
0.8 |
14.1 |
37.0 |
|
Other Items |
(26.8) |
(488.9) |
(240.9) |
|
ITEMS RELATING TO FINANCING ACTIVITIES: |
5.5 |
101.1 |
57.3 |
|
Interest income (expense) |
5.5 |
101.1 |
57.3 |
|
Other Items |
- |
- |
- |
|
NET CASH GENERATED FROM NET INCOME BEFORE TAXES |
175.8 |
3,210.8 |
4,109.0 |
|
CASH GENERATED OR USED IN THE OPERATION: |
(109.0) |
(1,989.9) |
(517.6) |
|
Decrease (increase) in accounts receivable |
(43.7) |
(798.5) |
407.8 |
|
Decrease (increase) in inventories |
(25.7) |
(469.0) |
94.5 |
|
Decrease (increase) in accounts payable |
(47.5) |
(867.1) |
(1,032.9) |
|
Decrease (increase) in other liabilities |
7.9 |
144.8 |
12.9 |
|
NET CASH FLOW FROM OPERATING ACTIVITIES |
66.9 |
1,220.9 |
3,591.4 |
|
NET CASH FLOW FROM INVESTING ACTIVITIES |
(40.7) |
(743.8) |
(370.1) |
|
Acquisition of property, plant and equipment |
(65.1) |
(1,188.2) |
(605.0) |
|
Proceeds from sales of property plant and equipment |
0.9 |
16.0 |
39.7 |
|
Other Items |
23.5 |
428.4 |
195.3 |
|
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES |
26.1 |
477.1 |
3,221.3 |
|
Net cash provided by financing activities: |
(28.6) |
(523.0) |
(38.3) |
|
Proceeds from loans |
98.8 |
1,804.0 |
1,874.5 |
|
Principal payments on loans |
(112.5) |
(2,055.0) |
(1,254.0) |
|
Dividends paid |
(21.4) |
(390.0) |
(449.6) |
|
Other items |
6.5 |
118.0 |
(209.2) |
|
Net increase (decrease) in cash and equivalents |
(2.5) |
(45.9) |
3,183.0 |
|
Cash and investments at the beginning of year |
$ 837.3 |
15,288.9 |
11,036.1 |
|
CASH AND INVESTMENTS AT END OF PERIOD |
$ 834.8 |
15,243.0 |
14,219.1 |
|
DERIVATIVES POSITION REPORT | ||||||||||
|
Second Quarter 2016 |
||||||||||
|
Thousands of Mexican Pesos, as of june 30, 2016 |
||||||||||
|
TYPE OF FINANCIAL INSTRUMENT |
OBJECTIVE |
NOTIONAL |
VALUE OF THE RELATED COMMODITY |
REASONABLE VALUE |
AMOUNTS DUE BY YEAR |
GUARANTIES REQUIRED | ||||
|
2Q-2016 |
1Q-2016 |
2Q-2016 |
1Q-2016 |
|||||||
|
Forward Vanilla |
Hedge |
$ 26,112 |
$ 18.26 |
$ 17.29 |
$ 1,127 |
$ -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 |
$ 270,194 |
CORN |
CORN |
$ 29,008 |
-$ 2,376 |
96.6% in 2016 and 3.4% in 2017 | |||
|
In USD per Bushel |
In USD per Bushel | |||||||||
|
month |
price |
month |
price | |||||||
|
$ - |
May-16 |
$ 3.5150 | ||||||||
|
Jul-16 |
$ 3.588 |
Jul-16 |
$ 3.5575 | |||||||
|
Sep-16 |
$ 3.655 |
Sep-16 |
$ 3.6050 | |||||||
|
Dec-16 |
$ 3.713 |
Dec-16 |
$ 3.6925 | |||||||
|
Mar-17 |
$ 3.795 |
Mar-17 |
$ 3.7825 | |||||||
|
May-17 |
$ 3.845 |
|||||||||
|
Sep-17 |
$ 3.828 |
|||||||||
|
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 |
$ 405.8 |
Aug-2016 |
$ 274.4 | |||||||
|
Sep-2016 |
$ 403.7 |
|||||||||
|
Oct-2016 |
$ 401.1 |
Oct-2016 |
276.6 | |||||||
|
Dec-2016 |
$ 401.0 |
|||||||||
|
Jan-2017 |
$ 279.6 | |||||||||
|
Mar-2017 |
$ 279.6 | |||||||||
|
May-2017 |
$ 278.9 | |||||||||
|
Jul-2017 |
$ 280.1 |
|||||||||
|
Options of Corn |
Hedge |
$ 8,903 |
CORN |
CORN |
-$ 1,961 |
$ - |
2016 | |||
|
In USD per Bushel |
In USD per Bushel | |||||||||
|
month |
price |
month |
price | |||||||
|
Jul-16 |
$ 3.588 |
|||||||||
|
Sep-16 |
$ 3.655 |
|||||||||
|
Dec-16 |
$ 3.713 |
|||||||||
|
Options of soybean meal |
Hedge |
$ 11,771 |
SOYBEAN MEAL |
SOYBEAN MEAL |
$ 1,759 |
-$ 2 |
in 2016 | |||
|
In USD per ton |
In USD per ton | |||||||||
|
month |
price |
month |
price | |||||||
|
Aug-2016 |
$ 405.80 |
|||||||||
|
Sep-2016 |
$ 403.70 |
May-2016 |
$ 270.3 | |||||||
|
Oct-2016 |
$ 401.10 |
|||||||||
|
Dec-2016 |
$ 401.00 |
|||||||||
|
NOTES | ||||||||||
|
-The total financial instruments not exceed 5% of total assets as of June 30, 2016. | ||||||||||
|
-The notional value represents the net position as of June 30, 2016 at the exchange rate of Ps.18.26 per one dolar. | ||||||||||
|
-A negative value means an unfavorable effect for the Company. | ||||||||||
|
PROBABLE SCENARIO | ||||||||
|
Second Quarter 2016 |
||||||||
|
Thousands of Mexican Pesos, as of june 30, 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% | |||
|
Forwards Vanilla (1) |
$ 1,127 |
$17.80 |
$ 18.72 |
$ 19.17 |
Direct |
$ 474 |
$ 1,780 |
$ 2,432 |
|
-5% |
5% |
10% |
-5% |
5% |
10% | |||
|
Futures of Corn: (2) |
$ 29,008 |
$ 3.408 |
$ 3.767 |
$ 3.946 |
The effect willmaterialize as theinventory is consumed |
$ 15,499 |
$ 42,518 |
$ 56,028 |
|
Futures of Soybean Meal: (2) |
$ 385.5 |
$ 426.1 |
$ 446.4 | |||||
|
Options for Corn |
-$ 1,961 |
$ 3.408 |
$ 3.767 |
$ 3.946 |
-$ 4,141 |
$ 19 |
$ 714 | |
|
Options of Soybean Meal |
$ 1,759 |
$ 385.5 |
$ 426.1 |
$ 446.4 |
$ 1,170 |
$ 2,347 |
$ 2,936 | |
|
(1) The reference value is the exchange rate of Ps. $18.26 per USD as of June 30, 2016. | ||||||||
|
(2) The reference values are; the future of corn for June 2016, $3.5875 USD/bushel and the future of soybeanmeal for Aug 2016, $405.80 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. | ||||||||
|
Second Quarter 2016 | ||||||||||
|
Thousands of Mexican Pesos, as of june 30, 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 Vanilla |
$ 1,127 |
$9.13 |
$13.70 |
$22.83 |
$27.39 |
Direct |
-$11,929 |
-$5,401 |
$7,655 |
$14,183 |
CONFERENCE CALL INFORMATIONThe Company will host its second quarter 2016 earnings call, on Tuesday, July 26, 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) 771-4371Toll free in Mexico: 001 866 779 0965A current list of available local and international free phone telephone numbers: https://www.yourconferencecenter.com/AlternateNumbers/alternatenumbers.aspx?100374&t=P&o=ULACEtBoBQAtcp
Confirmation Number: 42944364
Visit the following link to access the webcast: http://edge.media-server.com/m/p/b5z95ddu
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]
Kathy Chaurand[email protected]T. +52(461)618 3555T. +52(461)618 3500 Ext. 10146
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/industrias-bachoco-announces-second-quarter-2016-results-300302853.html
SOURCE Industrias Bachoco, S.A.B. de C.V.
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