In a press release dated October 25th Industrias Bachoco S.A.B. de C.V. (IBA), announced results for the 3rd quarter ending September 30th.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year. Values expressed as US$ x 1,000 except EPS (conversion of 20.64 pesos =US$)
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3rd Quarter Ending September 30th
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2021
|
2020
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Difference (%)
|
|
Sales:
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$980,100
|
$886,200
|
+10.6
|
|
Gross profit:
|
$126,500
|
$154,300
|
-18.2
|
|
Operating income:
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$35,800
|
$71,900
|
-50.2
|
|
Pre-tax Income
Net Income
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$58,100
$39,600
|
$59,000
$41,500
|
-1.5
-4.6
|
|
Diluted earnings per share:
|
$0.069
|
$0.067
|
+3.0
|
|
Gross Margin (%)
|
12.9
|
17.4
|
-25.9
|
|
Operating Margin (%)
|
3.7
|
8.1
|
-54.3
|
|
Profit Margin (%)
|
4.0
|
4.7
|
-14.9
|
|
Long-term Debt:
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$0
|
$70,700
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N/A
|
|
12 Months Trailing:
|
|
|
|
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Return on Assets (%)
|
8.5
|
|
|
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Return on Equity (%)
|
11.9
|
|
|
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Operating Margin (%)
|
10.6
|
|
|
|
Profit Margin (%)
|
7.0
|
|
|
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Total Assets
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$3,065,000
|
$2,833,000
|
|
|
Market Capitalization
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$2,180,000
|
|
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Of total revenue 26 percent is derived from the U.S. through OK Foods
Of total revenue 87.8 percent is derived from broilers and eggs the remainder from livestock and other agricultural enterprises.
52-Week Range in Share Price: $36.20 to $48.47 50-day Moving average $44.43
Trailing 12-month P/E 8.3 Beta 0.8
In commenting on Q3 results Rodolfo Ramos Arvizu, CEO of Bachoco, stated: “This was a typical third quarter for the Company, in terms of seasonality, with chicken prices at their weakest as compared to the first half of the year. In Me´xico, we observed lower demand that negatively affected our prices, unlike the U.S., where majot commodity prices remained strong for most of the quarter.
In terms of cost of sales, prices of corn and soybean meal remained high when compared to previous years, fully impacting our cost in Me´xico and the U.S. As a result, our cost of sales was 16.6% higher than reported in Q3 of 2020. Despite the challenging conditions of this quarter, the Company remained in a healthy financial condition which will allow us to continue to support our growth plans.”