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 (“2Q22”) and first half (“1H22”) 2022 ended on
June 30, 2022. 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- 2022 vs.
2021
- Net sales increased 26.7% in 2Q22 and increased 26.3% in
1H22
- EBITDA margin was 15.9% for 2Q22 and 15.2% for the 1H22
- SG&A as percentage of net sales was 8.0% and 8.1% for 2Q22
and 1H22 respectively.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of
Bachoco, stated, “Seasonally, the second quarter is one of the
strongest of the year and this 2Q22 performed that way. Even when
we kept observing important increases in raw material costs like
corn and soybean meal, the good balance between supply and demand
and our participation in all main channels, in poultry, allowed us
to capture better prices and offset the negative impacts due to
higher costs.
We reached an increase in total sales of 26.7% for 2Q22 when
compared to the same period of 2021. Part of that increase was
related to an 8.3% higher volume sold in our Others segment as we
integrated sales from RYC Alimentos in this business line.
Our cost of sales in 2Q22 increased 21.4% vs 2Q21. Most of that
increase was related to higher raw material costs, as
aforementioned, which had a negative impact both in our Mexican and
U.S. operations.
In terms of expenses, we kept our SG&A under control as a
percentage of sales, we reported 8.0% for the quarter which
compares to the 8.3% of 2Q21.
As a result, our operating income for 2Q22 was $3,831.0 million
which represents a 14.5% margin; this compares to the $2,088.8
million and 10.0% margin achieved in 2Q21.
We reported an EBITDA of $4,212.5 million in 2Q22 and 15.9%
margin, which compares to the $2,437.4 million and 11.7% obtained
in the same period of 2021.
CAPEX for the first half of 2022 was $1,908.5 million compared
to $1,307.5 million for the same period of 2021. This was achieved
while ending with a net cash position of $17,904.5 million by the
end of 2Q22.”
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 2021.
QUARTERLY RESULTS
NET SALES BY GEOGRAPHY
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Net Sales
26,432.1
20,860.9
5,571.1
26.7
Net sales in Mexico
19,839.8
15,937.6
3,902.2
24.5
Net sales in the U.S.
6,592.3
4,923.4
1,668.9
33.9
NET SALES BY SEGMENT
In millions of pesos
2Q22
2Q21
Change
$
$
$
$
Net Sales
26,432.1
20,860.9
5,571.1
26.7
Poultry
22,605.9
18,170.5
4,435.5
24.4
Other
3,826.1
2,690.5
1,135.7
42.2
NET VOLUME SOLD BY SEGMENT
In tons
Change
2Q22
2Q21
Volume
%
Total sales volume:
591,738
583,661
8,077.2
1.4
Poultry
437,723
441,486
(3,763.4)
(0.9)
Others
154,015
142,175
11,840.6
8.3
The Company’s 2Q22 net sales totaled $26,432.1 million; $5,571.1
million or 26.7% more than the $20,860.9 million reported in 2Q21.
The increase was mainly a result of higher volume sold in Others
and higher price across our main business lines.
In 2Q22, sales of our U.S. operations represented 24.9% of our
total sales compared to a 23.6% in the same period of 2021.
GROSS PROFIT
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Cost of sales
20,518.5
16,901.1
3,617.4
21.4
Gross profit
5,913.6
3,959.8
1,953.8
49.3
Gross margin
22.4%
19.0%
-
-
In 2Q22, cost of sales was $20,518.5 million; $3,617.4 million
or 21.4% higher than the $16,901.1 million reported in 2Q21. This
increase was due to higher unit cost in our main business lines as
a result of higher raw material prices in USD terms.
The Company´s gross profit in 2Q22 was $5,913.6 million, higher
than the gross profit of $3,959.8 million in 2Q21, with a gross
margin of 22.4% for 2Q22 vs 19.0% in 2Q21.
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES (“SG&A”)
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Total SG&A
2,123.3
1,729.2
394.1
22.8
Total SG&A expenses in 2Q22 were $2,123.3 million; $394.1
million higher than the $1,729.2 million reported in 2Q21. Total
SG&A expenses as a percentage of net sales were 8.0% in 2Q22
and 8.3% in 2Q21.
OTHER INCOME (EXPENSE), NET
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Other income (expense), net
40.7
(141.8)
182.5
(128.7)
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 2Q22, we recorded other income of $40.7 million, compared
with other expenses of $141.8 million reported in 2Q21.
OPERATING INCOME
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Operating income
3,831.0
2,088.8
1,742.2
83.4
Operating margin
14.5%
10.0%
-
-
Operating income in 2Q22 totaled $3,831.0 million; $1,742.2
million higher than the $2,088.8 million reported in 2Q21. This
represents an operating margin of 14.5% for 2Q22, higher when
compared to the same period of 2021.
NET FINANCIAL INCOME
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Net Financial Income
157.9
(97.0)
254.8
(262.8)
Financial Income
333.6
2.1
331.5
15,578.6
Financial Expense
175.8
99.1
76.7
77.4
In 2Q22, the Company reported net financial income of $157.9
million, compared to the net financial expenses of $97.0 million
reported in the same period of 2021.
TAXES FOR THE PERIOD
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Total Taxes
1,054.1
548.7
505.5
92.1
Income tax
394.7
804.5
(409.8)
(50.9)
Deferred income tax
659.4
(255.9)
915.3
(357.7)
As a result of a higher operating income, Total taxes for the
2Q22 were $1,054.1 million compared with total taxes of $548.7
million in the same period of 2021.
NET controlling interest
INCOME
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Net income
2,934.7
1,443.2
1,491.6
103.4
Net margin
11.1%
6.9%
-
-
Non-Controlling Interest income
(9.3)
(33.6)
24.3
n/a
Net controlling interest income
2,944.1
1,476.8
1,467.3
n/a
Basic and diluted income per share1
4.91
2.46
2.4
n/a
Basic and diluted income per ADR2
58.94
29.55
29.4
n/a
Weighted average Shares outstanding3
599,380
599,743
-
-
1 In pesos
2 in pesos, one ADR equals to twelve shares 3 In thousands of
shares
For the 2Q22 we had Net controlling interest income of $2,944.1
million, representing a basic and diluted income per share of $4.91
compared with a Net controlling interest income of $1,476.8
million, and $2.46 pesos of income per share in 2Q21. This increase
was attributed to higher operating results.
EBITDA
In millions of pesos
2Q22
2Q21
Change
$
$
$
%
Net controlling interest income
2,944.1
1,476.8
1,467.3
99.4
Income tax expense (benefit)
1,054.1
548.7
505.5
92.1
Result in associates
(9.3)
(33.6)
24.3
(72.2)
Net finance (income) expense
(157.9)
97.0
(254.8)
(262.8)
Depreciation and amortization
381.5
348.6
32.9
9.4
EBITDA
4,212.5
2,437.4
1,775.1
72.8
EBITDA Margin (%)
15.9%
11.7%
-
-
Net revenues
26,432.1
20,860.9
5,571.1
26.7
EBITDA in 2Q22 reached $4,212.5 million, representing an EBITDA
margin of 15.9%, compared to an EBITDA of $2,437.4 million in 2Q21,
with an EBITDA margin of 11.7%.
ACCUMULATED RESULTS
NET SALES BY GEOGRAPHY
In millions of pesos
1H22
1H21
Change
$
$
$
%
Net Sales
50,799.1
40,218.6
10,580.5
26.3
Net sales in Mexico
37,936.2
30,566.9
7,369.3
24.1
Net sales in the U.S.
12,862.9
9,651.6
3,211.3
33.3
NET SALES BY SEGMENT
In millions of pesos
1H22
1H21
Change
$
$
$
%
Net Sales
50,799.1
40,218.6
10,580.5
26.3
Poultry
43,482.1
35,154.3
8,327.8
23.7
Other
7,316.9
5,064.2
2,252.7
44.5
NET VOLUME SOLD BY SEGMENT
In metric tons
Change
1H22
1H21
Volume
%
Total sales volume:
1,175,400
1,141,743
33,656.4
2.9
Poultry
879,210
858,464
20,745.4
2.4
Others
296,190
283,279
12,911.1
4.6
During the first half of 2022, net sales totaled $50,799.1
million; $10,580.5 million or 26.3% more than $40,218.6 million
reported in the same period of 2021. The increase in sales is
mainly attributable to higher prices of our main business lines
when compared to the first half of 2021.
In 1H22, sales of our U.S. operations represented 25.3% of our
total sales, compared with 24.0% in 1H21.
OPERATING RESULTS
In millions of pesos
1H22
1H21
Change
$
$
$
%
Cost of Sales
39,759.0
32,040.7
7,718.3
24.1
Gross Profit
11,040.1
8,177.9
2,862.2
35.0
Total SG&A
4,122.4
3,366.5
755.9
22.5
Other Income (expense)
55.5
(163.6)
219.1
(133.9)
Operating Income
6,973.2
4,647.7
2,325.4
50.0
Net Financial Income
(77.9)
222.6
(300.5)
(135.0)
Income Tax
1,832.6
1,352.6
480.0
35.5
Net controlling interest income
5,100.7
3,577.2
1,523.5
42.6
In 1H22, the cost of sales totaled $39,759.0 million; $7,718.3
million or 24.1% higher than the $32,040.7 million reported in
1H21.
As a result, we reached a gross profit of $11,040.0 million and
a gross margin of 21.7% in 1H22, when compared to $8,177.9 million
of gross profit and margin of 20.3% reached in the same period of
2021.
Total SG&A expenses in 1H22 were $4,122.4 million; $755.9
million or 22.5% more than the $3,366.5 million reported in 1H21.
In 1H22 total SG&A expenses as a percentage of net sales
represented 8.1% compared with 8.4% in 1H21.
In 1H22 we had other income of $55.5 million, compared with
other expenses of $163.6 million reported in 1H21.
Operating income in 1H22 was $6,973.2 million, which represents
an operating margin of 13.7%, an increase compared to the operating
income of $4,647.7 million and the operating margin of 11.6% in
1H21.
Net financial expenses in 1H22 was $77.9 million, compared to a
net financial income of $222.6 million in 1H21.
Total taxes were $ 1,832.6 million as of June 30, 2022. These
taxes include $999.3 million of income tax and $833.3 million of
deferred income taxes. These figures compare to total taxes of
$1,352.6 million in 1H21.
All the above resulted in a Net controlling interest income of
$5,100.7 million or 10.0% of margin in the 1H22, which represents
$8.51 pesos of earnings per share; while in the 1H21 the Net
controlling interest income totaled $ 3,577.2 million, 8.9% of
margin and $5.96 pesos of earnings per share.
EBITDA
In millions of pesos
1H22
1H21
Change
$
$
$
%
Net controlling interest profit
5,100.7
3,577.2
1,523.5
42.6
Income tax expense (benefit)
1,832.6
1,352.6
480.0
35.5
Result in associates
(37.9)
(59.4)
21.4
(36.1)
Net finance (income) expense
77.9
(222.6)
300.5
(135.0)
Depreciation and amortization
756.3
703.1
53.2
7.6
EBITDA
7,729.5
5,350.8
2,378.7
44.5
EBITDA Margin (%)
15.2%
13.3%
-
-
Net revenues
50,799.1
40,218.6
10,580.5
26.3
EBITDA in 1H22 reached $7,729.5 million, representing an EBITDA
margin of 15.2%, compared to an EBITDA of $5,350.8 million in 1H21,
with a margin of 13.3%.
BALANCE SHEET
BALANCE SHEET DATA
In millions of pesos
June 30, 2022
Dec. 31st, 2021
Change
$
$
$
%
TOTAL ASSETS
70,429.6
65,988.8
4,440.8
6.7
Cash and cash equivalents
20,479.8
20,777.0
(297.1)
(1.4)
Accounts receivable
5,048.4
5,108.5
(60.0)
(1.2)
TOTAL LIABILITIES
18,193.6
17,704.7
488.9
2.8
Accounts payable
6,460.3
10,200.7
(3,740.3)
(36.7)
Short-term debt
2,575.3
1,993.9
581.4
29.2
Long-term debt
-
-
-
-
TOTAL STOCKHOLDERS’ EQUITY
52,236.0
48,284.1
3,951.9
8.2
Capital stock
1,173.9
1,174.4
(0.5)
(0.0)
Cash and equivalents as of June 30, 2022 totaled $20,479.8
million vs $20,777.0 million as of December 31, 2021.
Total debt as of June 30, 2022 was $2,575.3 million, compared to
$ 1,993.9 million reported as of December 31, 2021.
Net cash as of June 30, 2022 was $ 17,904.5 million, compared to
net cash of $ 18,783.1 million as of December 31, 2021.
CAPITAL EXPENDITURES
In millions of pesos
1H22
1H21
Change
$
$
$
%
Capital Expenditures
1,908.8
1,307.5
601.3
46.0
Total CAPEX for the 1H22 was $1,908.8 million and $1,307.5
million in 1H21, mainly allocated toward organic growth and
productivity projects across all of our facilities.
STOCK INFORMATION
As of June 30, 2022
Total Shares
600,000,000
Total free float
26.75%
Market cap (millions of pesos)
$43,458
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
June
76.90
68.56
72.43
47.25
39.70
43.35
May
78.17
76.03
76.27
47.09
44.75
46.86
April
77.83
74.96
77.83
46.64
44.42
45.78
March
69.42
67.16
68.04
40.45
38.30
39.95
February
71.99
68.02
69.42
43.19
39.67
39.67
January
73.60
69.22
69.28
44.66
41.14
41.14
Source: Yahoo Finances
ANALYST COVERAGE
Institution
Analyst name
E-mail
BANK OF AMERICA
Fernando Olvera
folvera@bofa.com
BBVA BANCOMER
Pablo Abraham Peregrina
pablo.abraham@bbva.com
GBM
Luis Rodrigo Willard Alonso
lrwillard@gbm.com
INTERCAM
Richard Horbach Martinez
rhorbach@intercam.com.mx
JP MORGAN
Ulises Argote
ulises.argote@jpmorgan.com
SANTANDER
Alan Alanis Peña
aalanis@santander.com.mx
APPENDICES
For reference, some figures have been translated into millions
of U.S. dollars (“USD”) using an exchange rate of $20.14 per USD
$1.0, which corresponds to the rate at the close of June 30, 2022,
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
2022
2022
2021*
TOTAL ASSETS
$
3,497.0
70,429.6
65,988.8
Total current assets
2,001.3
40,305.4
37,845.6
Cash and cash equivalents
1,016.9
20,479.8
20,777.0
Total accounts receivable
250.7
5,048.4
5,108.5
Inventories
653.3
13,156.5
9,145.6
Other current assets
80.5
1,620.6
2,814.6
Total non current assets
1,495.7
30,124.2
28,143.2
Net property, plant and equipment
1,132.9
22,816.9
21,763.4
Other non current Assets
362.8
7,307.3
6,379.8
TOTAL LIABILITIES
$
903.4
18,193.6
17,704.7
Total current liabilities
593.3
11,948.6
12,835.3
Notes payable to banks
127.9
2,575.3
1,993.9
Accounts payable
320.8
6,460.3
10,200.7
Other taxes payable and other accruals
144.6
2,912.9
640.7
Total long-term liabilities
310.1
6,245.0
4,869.4
Long-term debt
-
-
-
Other non current liabilities
56.4
1,135.1
1,027.9
Deferred income taxes
253.7
5,109.9
3,841.5
TOTAL STOCKHOLDERS' EQUITY
$
2,593.6
52,236.0
48,284.1
Capital stock
58.3
1,173.9
1,174.4
Commission in shares issued
20.6
414.1
414.1
Retained earnings
2,443.3
49,207.3
45,038.6
Others accounts
49.7
1,000.9
1,179.2
Non controlling interest
21.8
439.8
477.7
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
3,497.0
70,429.6
65,988.8
*Audited
CONSOLIDATED STATEMENT OF INCOME Second
Quarter Results, ended June 30th: -Unaudited-
U.S. Dollar
In millions pesos
2022
2022
2021
Net sales
$
1,312.4
26,432.1
20,860.9
Cost of sales
1,018.8
20,518.5
16,901.1
Gross profit
293.6
5,913.6
3,959.8
SG&A
105.4
2,123.3
1,729.2
Other income (expenses), net
2.0
40.7
(141.8
)
Operating income
190.2
3,831.0
2,088.8
Net finance income
7.8
157.9
(97.0
)
Income tax
52.3
1,054.1
548.7
Net Income
$
145.7
2,934.7
1,443.2
Non-controlling interest
(0.46
)
(9.3
)
(33.6
)
Net controlling interest profit
146.18
2,944.1
1,476.8
Basic and diluted earnings per share
0.24
4.91
2.46
Basic and diluted earnings per ADR
2.93
58.94
29.55
Weighted average Shares outstanding1
599,380
599,380
599,743
EBITDA Result
$
209.2
4,212.5
2,437.4
Gross margin
22.4
%
22.4
%
19.0
%
Operating margin
14.5
%
14.5
%
10.0
%
Net margin
11.1
%
11.1
%
6.9
%
EBITDA margin
15.9
%
15.9
%
11.7
%
1 In thousands
CONSOLIDATED STATEMENT OF INCOME
Accumulated results, for the six months ended June 30.
-Unaudited-
U.S. Dollar
In millions pesos
2022
2022
2021
Net sales
$
2,522.3
50,799.1
40,218.6
Cost of sales
1,974.1
39,759.0
32,040.7
Gross profit
548.2
11,040.1
8,177.9
Selling, general and administrative expenses
204.7
4,122.4
3,366.5
Other income (expenses), net
2.8
55.5
(163.6
)
Operating income
346.2
6,973.2
4,647.7
Net finance income
(3.87
)
(77.9
)
222.64
Income tax
91.0
1,832.6
1,352.6
Net income
$
251.4
5,062.7
3,517.8
Non-controlling interest
(1.88
)
(37.9
)
(59.4
)
Net controlling interest profit
253.3
5,100.7
3,577.2
Basic and diluted earnings per share
0.42
8.51
5.96
Basic and diluted earnings per ADR
5.07
102.1
71.57
Weighted average Shares outstanding1
599,380
599,380
599,790
EBITDA Result
$
383.8
7,729.5
5,350.8
Gross margin
21.7
%
21.7
%
20.3
%
Operating margin
13.7
%
13.7
%
11.6
%
Net margin
10.0
%
10.0
%
8.7
%
EBITDA margin
15.2
%
15.2
%
13.3
%
1 In thousands
CONSOLIDATED STATEMENT OF CASH FLOWS
In million of pesos -Unaudited-
U.S. Dollar
June 30,
2022
2022
2021
NET MAJORITY INCOME BEFORE INCOME TAX
$
342.4
6,895.3
4,870.4
ITEMS RELATING TO INVESTING ACTIVITIES:
45.7
919.6
821.6
Depreciation and others
50.5
1,016.7
911.5
Income (loss) on sale of plant and equipment
1.2
23.2
43.3
Other Items
(6.0
)
(120.3
)
(133.2
)
NET CASH GENERATED FROM NET INCOME BEFORE TAXES
388.0
7,814.9
5,691.9
CASH GENERATED OR USED IN THE OPERATION:
(195.2
)
(3,932.2
)
284.7
Decrease (increase) in accounts receivable
(12.5
)
(251.1
)
(70.5
)
Decrease (increase) in inventories
(206.8
)
(4,165.5
)
(310.0
)
Increase (decrease) in accounts payable
(99.0
)
(1,993.0
)
1,855.0
Other Items
123.0
2,477.5
(1,189.9
)
NET CASH FLOW FROM OPERATING ACTIVITIES
192.8
3,882.7
5,976.7
NET CASH FLOW FROM INVESTING ACTIVITIES
(124.5
)
(2,508.4
)
(882.8
)
Acquisition of property, plant and equipment
(94.8
)
(1,908.9
)
(1,306.2
)
Proceeds from sales of property plant and equipment
2.7
53.5
1.8
Other Items
(32.4
)
(653.1
)
421.6
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN
FINANCING ACTIVITIES
68.2
1,374.2
5,093.9
Net cash provided by financing activities:
(79.5
)
(1,601.5
)
(2,875.3
)
Proceeds from loans
28.3
570.0
1,237.2
Principal payments on loans
0.6
11.4
(1,912.3
)
Dividends paid
(21.1
)
(425.8
)
(425.8
)
Other items
(87.2
)
(1,757.1
)
(1,774.4
)
Net increase (decrease) in cash and equivalents
(11.3
)
(227.3
)
2,218.5
Cash and investments at the beginning of year
$
1,028.2
20,707.1
19,242.4
CASH AND INVESTMENTS AT END OF PERIOD
$
1,016.9
20,479.8
21,461.0
DERIVATIVES POSITION REPORT
Second Quarter 2022 Thousands of Mexican Pesos, as of
June 30, 2022 TYPE OF FINANCIAL INSTRUMENT
OBJECTIVE NOTIONAL VALUE OF THE RELATED
COMMODITY REASONABLE VALUE AMOUNTS DUE BY YEAR
GUARANTIES REQUIRED 2Q-2022 1Q-2022
2Q-2022 1Q-2022
Forward Vanilla y KO Fwd
Hedge
$
224,433
$
20.14
$
19.89
$
-80,565
$
-157,022
90% in 2022 and 10% in 2023
The deals consider the possibility of margin calls but not another
kind of guarantee
Futures for corn, soybean meal
and soybean oil
Hedge
$
566,793
CORN CORN
$
24,903
$
66,687
100% in 2022
In USD per Bushel In USD per Bushel
month price
month price May-22
$
7.488
Jul-22
$
7.330
Sep-22
$
6.288
Sep-22
$
6.963
Dec-22
$
6.198
Dec-22
$
6.838
SOYBEAN MEAL SOYBEAN MEAL In USD per ton In USD per
ton
month price month price May-22
$
467.5
Jul-22
$
459.4
Aug-22
$
435.5
Aug-22
$
447.9
Sep-22
$
416.1
Sep-22
$
432.2
Oct-22
$
405.7
Oct-22
$
414.5
Dec-22
$
406.7
Dec-22
$
411.5
SOYBEAN OIL SOYBEAN OIL In US cents per pound In US
cents per pound
month price month price
Aug-22
$
67.01
May-22
$
69.94
Sep-22
$
65.68
Options of Corn
Hedge
$
620,897
CORN CORN
$
27,649
$
138,102
92% in 2022 and 8% in 2023
In USD per Bushel In USD per Bushel
month price
month price May-22
$
7.488
Jul-22
$
7.330
Sep-22
$
6.288
Sep-22
$
6.963
Dec-22
$
6.198
Dec-22
$
6.838
Mar-23
$
6.263
Mar-23
$
6.845
Options of soybean meal
Hedge
$
878,302
SOYBEAN MEAL SOYBEAN MEAL
$
34,539
$
66,894
78% in 2022 and 22% in 2023
In USD per ton In USD per ton
month price
month price May-22
$
467.5
Aug-22
$
435.5
Jul-22
$
459.4
Sep-22
$
416.1
Aug-22
$
447.9
Oct-22
$
405.7
Sep-22
$
432.2
Dec-22
$
406.7
Oct-22
$
414.5
Jan-23
$
405.9
Dec-22
$
411.5
Mar-23
$
401.3
Jan-23
$
406.1
May-23
$
398.3
Mar-23
$
394.8
Options of Soybean oil
Hedge
$
63,655
SOYBEAN OIL SOYBEAN OIL
-$ 973
$
521
100% in 2022
In US cents per pound In US cents per pound
month
price month price Aug-22
$
67.01
Sep-22
$
65.68
May-22
$
69.94
-The total financial instruments do not exceed 5% of total
assets as of June 30, 2022. -The notional value represents the net
position as of June 30, 2022 at the exchange rate of Ps.20.14 per
one dollar.
-A negative value means an unfavorable effect for
the Company. Second Quarter 2022 Thousands of Mexican
Pesos, as of June 30, 2022
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 (1)
-2.5%
2.5%
5.0%
-2.5%
2.5%
5.0%
Forward Vanilla y KO Fwd
-$ 80,565
$
19.64
$
20.64
$
21.15
Direct
-$193,539
$
32,409
$ 94,048
-5%
5%
10%
-5%
5%
10%
Futures of Corn: (2)
$ 24,903
$
5.974
$
6.602
$
6.917
The effect will materialize as
the inventory is consumed
-$ 3,437
$
53,243
$ 81,582
Futures of Soybean Meal: (2)
$
413.7
$
457.3
$
479.1
Futures for Soy Oil (2)
$
63.7
$
70.4
$
73.7
Options for Corn
$ 27,649
$
5.974
$
6.602
$
6.917
-$ 3,396
$
58,694
$ 89,738
Options of Soybean Meal
$ 34,539
$
413.7
$
457.3
$
479.1
-$ 3,718
$
74,727
$ 114,914
Options of soybean Oil
-$ 973
$
63.66
$
70.36
$
73.71
-$ 1,374
-$ 573
-$ 172
(1) The reference value is the exchange rate of Ps. $20.14
per USD as of June 30, 2022. (2) The reference values are: future
of corn Sep 2022, $6.2880 USD/bushel, the future of soybeanmeal Aug
2022, $435.50 USD/ton and the future of soybean oil Aug 2022,
$67.01 usd cts / pound '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 2022 Thousands of Mexican
Pesos, as of June 30, 2022 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 y KO Fwd -$80,565
$10.07
$15.11
$25.18
$30.21
Direct -$2,340,042 -$1,210,303
$737,767
$1,579,072
CONFERENCE CALL INFORMATION
The Company will host its second quarter 2022 earnings call on
Thursday, July 28th, 2022. The earnings call will take place at
10:00 am Central Time (11:00 am ET).
To participate in the earnings call, please dial:
Toll free in the U.S.: 866 374 5140
Toll free in Mexico: 1 866 779 1760
Toll Local Mexico: 52 55 6722 5258
Toll in the Brazil: 800 761 0711
To access the event online:
https://onlinexperiences.com/Launch/QReg/ShowUUID=A1D63B38-F85B-4377-8636-68C0716DB2D4&LangLocaleID=1033
Confirmation Number: 68053969#
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 80 distribution centers in Mexico, and a production complex in
the United States. Currently the Company employs more than 32,000
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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220727005721/en/
Maria Guadalupe Jaquez maria.jaquez@bachoco.net
Andrea Guerrero andrea.guerrero@bachoco.net T.
+52(461)618 3555
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