CONFORMED
Securities
and Exchange Commission
Washington,
D.C. 20549
FORM
6-K
Report
of
Foreign Issuer
Pursuant
to Rule 13a-16 Or 15d-16
Of
The
Securities
Exchange Act of 1934
For
the
month of October 25, 2007
BACHOCO
INDUSTRIES
(Translation
of Registrant’s name into English)
Avenida
Tecnológico No. #401
38010
Celaya, Guanajuato
(Address
of principal office)
(Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.)
(Check
One) Form
20-F x
Form
40-F
o
(Indicate
by check mark whether the registrant by furnishing the information contained
in
this Form is also thereby furnishing information to the Commission pursuant
to
Rule 12g-3-2(b) under the Securities Exchange Act of 1934.)
(Check
One) Yes o
No
x
(If
“Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b). 82__.)
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
Industrias
Bachoco, S.A. de C.V.
|
|
|
(Registrant)
|
|
|
Date:
October 25, 2007
|
By
/s/
Daniel Salazar Ferrer, CFO
|
Third
Quarter 2007 Results | Page 1
 |
Industrias
Bachoco Announces Third Quarter 2007 Results
|
|
Celaya,
Gto., Mexico, - October 25, 2007 - Industrias Bachoco S.A.B. de
C.V.
(“Bachoco” or “the Company”) (NYSE: IBA; BMV: Bachoco B), Mexico’s leading
producer and processor of poultry products, today announced its unaudited
results for the quarter ended September 30, 2007. All figures have
been
prepared in accordance with Mexican GAAP and are stated in constant
Mexican pesos as of September 30, 2007.
|
|
|
Highlights:
|
|
|
·
Bachoco
recorded sales of Ps. 4,623.1 during the quarter, 24.5% above the
Ps.
3,711.8 million reached in the same 2006 period
|
|
|
·
Operating margin for the quarter of 10.7%, compares to 6.9% in
3Q06
|
|
|
·
EBITDA,
of Ps. 635.6 million, was 62.3% above the Ps. 391.5 million of
3Q06
|
|
|
·
Bachoco
achieved an EPS of Ps. 0.61 (US$0.67 per ADS) for the quarter compared
to
an EPS of Ps. 0.39 (US$0.43 per ADS) for the same period last
year
|
|
|
CEO’s
Comments:
|
|
|
Cristóbal
Mondragón, Bachoco’s CEO, stated, “Favorable market conditions in the
quarter fueled the growth in sales and volume.
|
|
|
“We
will continue with our efforts to expand our presence and commercial
distribution channels in all Mexico to serve every costumer looking
for
Bachoco products.
|
|
|
“Our
financials will remain strong and our CAPEX will continue to be entirely
financed by internal resources.”
|
Third
Quarter 2007 Results | Page 2
THIRD
QUARTER 2007 RESULTS
Net
Sales
Net
sales
for the quarter reached Ps. 4,623.1 million, 24.5% above the Ps. 3,711.8 million
reported in 3Q06. This increase was mainly driven by the 29.0% increase in
chicken sales, 13.5% in table eggs sales, 34.9% in swine sales, and a 0.3%
increase in balanced feed sales.
|
Net
Sales by Product Line
|
3Q07
|
3Q06
|
|
%
|
%
|
|
|
CHICKEN
|
79.1
|
76.3
|
|
EGGS
|
9.1
|
10.0
|
|
BALANCED
FEED
|
7.7
|
9.6
|
|
SWINE
AND OTHER LINES
|
4.1
|
4.1
|
|
TOTAL
COMPANY
|
100.0
|
100.0
|
Operating
Results
Bachoco’s
third quarter gross margin of 22.9% was higher than 20.5% in 3Q06. The increase
is mainly attributed to the 24.5% sales increase, which partly contributed
to
the 20.8% increase in the cost of sales. However, the Company’s operating margin
of 10.7% compares favorably to the 6.9% margin of the same 2006 quarter. EBITDA
during the quarter totaled Ps. 635.6 million.
Taxes
Taxes
recognized by the Company during the quarter were Ps. 106.7
million.
Net
Income
Net
income for 3Q07 was Ps. 364.5 million, or Ps. 0.61 per share (US$0.67 per ADS),
compared to net income of Ps.235.8 million, or Ps.0.39 per share (US$0.41 per
ADS) reported in the same period of 2006.
Third
Quarter 2007 Results | Page 3
RESULTS
BY BUSINESS SEGMENT
Chicken
Chicken
sales rose 29.0% during 3Q07 as a result of a 10.3% volume and a 16.9% price
increase. The chicken market remains in good shape and had a positive impact
in
pricing; the increase in volume resulted from added capacity driven in part
by
the new operations.
Table
Eggs
Volume
sales of table eggs grew 13.5%, with volumes increasing 3.4% and a price
increase of 9.8% when compared to same last year’s quarter.
Balanced
Feed
Sales
of
balanced feed increased slightly during this quarter by 0.3% when compared
to
3Q06; however, pricing rose by 16.8% and volume decreased by 14.1%.
Swine
and Other Lines
Sales
of
swine and other lines increased 34.9% in the quarter. This increase was mainly
the result of a 34.1% increase in volume of swine.
Third
Quarter 2007 Results | Page 4
NINE
MONTHS 2007
Net
Sales
Net
sales
for the first nine months were 19.4% higher at Ps. 13,403.0 million, when
compared to Ps. 11,221.9 million reported in the same 2006 period. Sales rose
mainly as chicken sales grew 20.7%, table eggs increased 20.8%, balanced feed
rose 6.5% and swine and other lines increased 21.5%.
|
Net
Sales by Product Line
|
Nine
Months 2007
|
Nine
Months 2006
|
|
|
%
|
%
|
|
CHICKEN
|
78.2
|
77.4
|
|
EGGS
|
9.3
|
9.2
|
|
BALANCED
FEED
|
8.1
|
9.1
|
|
SWINE
AND OTHER LINES
|
4.4
|
4.3
|
|
TOTAL
COMPANY
|
100.0%
|
100.0%
|
Operating
Results
Bachoco’s
gross margin reached 21.7% during the first nine months of the year, well above
the 21.0% gross margin reported in the same 2006 period. The increase was
primarily due to a 19.4% increase in sales, which was partially offset by an
18.5% increase in the cost of sales. Bachoco’s operating margin of 9.5% compares
favorably to the 7.6% operating margin reached in the same 2006 period. EBITDA
during this period reached Ps. 1,686.0 million.
Taxes
The
taxes
recognized by the Company during the year were Ps.316.1 million.
Net
Income
Net
income for the year ended September 30, 2007, was Ps. 1,081.6 million. Earnings
per share reached Ps. 1.80, (U.S. $1.98 per ADS), compared to Ps. 1.33 (U.S.
$1.46 per ADS) reported for the same 2006 period.
Balance
Sheet
The
Company maintained a healthy financial structure. Liquidity remained solid
with
cash and cash equivalents at Ps. 3,446.2 million as of September 30, 2007.
Debt
was Ps. 116.7 million as of September 30, 2007.
Capex
during the nine-month period was Ps. 471.8 million.
Third
Quarter 2007 Results | Page 5
Company
Description
Industrias
Bachoco S.A.B. de C.V. (also referred to in this report as Bachoco or the
Company) was founded by the Robinson Bours family in 1952, in the state of
Sonora. Since then, it has grown into the largest poultry company in Mexico,
with over 700 production and distribution facilities currently organized in
seven complexes throughout the country. Bachoco’s main business lines are
chicken, eggs, and swine, and the Company is also an important player in the
balanced feed industry in Mexico. The Company’s headquarters are based in
Celaya, Guanajuato, located in Mexico’s central region.
Industrias
Bachoco made an initial public stock offering in September 1997. Its securities
are listed and traded on the Mexican Stock Exchange (Bolsa Mexicana de Valores
or BMV) under the ticker symbol Bachoco B, and on the New York Stock Exchange
(NYSE) under the ticker symbol IBA.
The
Company posted net sales of U.S. $1.39 billion for 2006, divided among the
Company’s four main product lines as follows: 77.6% chicken, 9.2% table eggs,
9.0% balanced feed, and 4.2% swine and other lines.
For
more
information, please visit Bachoco’s website at
http://www.bachoco.com.mx.
This
press
release contains certain forward-looking statements that are subject to a number
of uncertainties, assumptions and risk factors that may influence its accuracy.
Actual results may differ. Factors that could cause these projections to differ,
include, but are not limited to: supply and demand, industry competition,
environmental risks, economic and financial market conditions in Mexico and
operating cost estimates. For more information regarding Bachoco and its
outlook, please contact the Company’s Investor Relations Department.
Third
Quarter 2007 Results | Page 6
Condensed
Consolidated Statements of Income
(millions
of constant pesos as of September 30, 2007, and millions of U.S. dollars,
except
per share data)
|
Third
Quarter
|
Nine
Months Ended
|
||||||||||||||||||
|
Sep
'30
|
Sep
'30
|
Sep
'30
|
Sep
'30
|
Sep
'30
|
Sep
'30
|
||||||||||||||
|
|
2007(1)
|
2007
|
2006
|
2007(1)
|
2007
|
2006
|
|||||||||||||
|
Net
Sales
|
US |
423
|
Ps |
4,623
|
Ps |
3,712
|
US |
1,226
|
Ps |
13,403
|
Ps |
11,222
|
|||||||
|
Cost
of Sales
|
326
|
3,563
|
2,950
|
960
|
10,498
|
8,860
|
|||||||||||||
|
Gross
Profit
|
97
|
1,060
|
762
|
266
|
2,905
|
2,361
|
|||||||||||||
|
Selling,
general and administrative expenses
|
52
|
567
|
504
|
150
|
1,637
|
1,507
|
|||||||||||||
|
Operating
Income
|
45
|
493
|
257
|
116
|
1,268
|
854
|
|||||||||||||
|
Comprehensive
Financing Cost (income)
|
|||||||||||||||||||
|
Interest
Expense (Income)
|
(4
|
)
|
(38
|
)
|
(48
|
)
|
(14
|
)
|
(153
|
)
|
(123
|
)
|
|||||||
|
Foreign
Exchange Loss (gain)
|
(0
|
)
|
(5
|
)
|
9
|
0
|
1
|
(50
|
)
|
||||||||||
|
Gain
from Monetary Position
|
3
|
34
|
35
|
4
|
45
|
48
|
|||||||||||||
|
Total
Comprehensive Financing Cost (income)
|
(1
|
)
|
(10
|
)
|
(4
|
)
|
(10
|
)
|
(107
|
)
|
(125
|
)
|
|||||||
|
Other
Income Net
|
(3
|
)
|
(31
|
)
|
37
|
2
|
25
|
22
|
|||||||||||
|
Income
before Provisions for Income
|
|||||||||||||||||||
|
Tax,
Employee Profit Sharing and Minoritary
|
|||||||||||||||||||
|
Interest
|
43
|
471
|
298
|
128
|
1,400
|
1,001
|
|||||||||||||
|
|
|||||||||||||||||||
|
Provisions
for:
|
|||||||||||||||||||
|
Income
Tax, Asset Tax
|
(5
|
)
|
(54
|
)
|
(19
|
)
|
(11
|
)
|
(126
|
)
|
(167
|
)
|
|||||||
|
Deferred
Income Taxes
|
(5
|
)
|
(53
|
)
|
(42
|
)
|
(17
|
)
|
(191
|
)
|
(32
|
)
|
|||||||
|
Income
before Minority Interest
|
33
|
365
|
237
|
99
|
1,084
|
801
|
|||||||||||||
|
Minority
Interest
|
(0
|
)
|
(0
|
)
|
(1
|
)
|
(0
|
)
|
(2
|
)
|
(2
|
)
|
|||||||
|
Net
Income
|
33
|
365
|
236
|
99
|
1,082
|
800
|
|||||||||||||
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
|
Weighted
Average Shares Outstanding (Thousand)
|
600,000
|
600,000
|
599,704
|
600,000
|
600,000
|
599,427
|
|||||||||||||
|
Net
Income per Share
|
0.67
|
0.61
|
0.39
|
1.98
|
1.80
|
1.33
|
|||||||||||||
|
Dividend
per Share
|
-
|
-
|
-
|
0.05
|
0.60
|
0.62
|
|||||||||||||
|
|
|||||||||||||||||||
|
(1)
|
Peso
amounts have been translated into U.S. dollars, solely for the
convenience
of the reader, at the rate of Ps. 10.9315 per U.S. dollar, the
noon buying
rate at September 28, 2007.
|
Third
Quarter 2007 Results | Page 7
Condensed
Consolidated Balance Sheets
(millions
of constant pesos as of September 30, 2007, and millions of U.S.
dollars)
|
Sep
'30
2007(1)
|
Sep
'30
2007
|
Dec
'31
2006
|
||||||||
|
|
||||||||||
|
ASSETS
|
||||||||||
|
Current
Assets:
|
||||||||||
|
Cash
and Cash Equivalents
|
US |
315
|
Ps |
3,446
|
Ps |
3,535
|
||||
|
Accounts
Receivable less Allowance for Doubtful
|
||||||||||
|
Accounts
|
54
|
585
|
532
|
|||||||
|
Inventories
|
378
|
4,133
|
2,792
|
|||||||
|
Other
Current Assets
|
45
|
492
|
384
|
|||||||
|
Total
Current Assets
|
792
|
8,656
|
7,244
|
|||||||
|
Net
Property, Plant and Equipment
|
891
|
9,745
|
9,740
|
|||||||
|
Other
Non Current Assets
|
32
|
347
|
335
|
|||||||
|
Total
Non Current Assets
|
923
|
10,092
|
10,075
|
|||||||
|
TOTAL
ASSETS
|
1,715
|
18,748
|
17,319
|
|||||||
|
|
||||||||||
|
LIABILITIES
|
||||||||||
|
Current
Liabilities:
|
||||||||||
|
Notes
Payable to Banks
|
6
|
64
|
10
|
|||||||
|
Trade
Accounts Payable
|
93
|
1,019
|
838
|
|||||||
|
Other
Accrued Liabilities
|
55
|
603
|
296
|
|||||||
|
Total
Current Liabilities
|
154
|
1,686
|
1,144
|
|||||||
|
Long-Term
Debt
|
5
|
53
|
35
|
|||||||
|
Labor
Obligations
|
5
|
50
|
78
|
|||||||
|
Deferred
Income Taxes and Others
|
208
|
2,272
|
2,152
|
|||||||
|
Total
Long-Term Liabilities
|
217
|
2,375
|
2,265
|
|||||||
|
TOTAL
LIABILITIES
|
371
|
4,061
|
3,409
|
|||||||
|
|
||||||||||
|
STOCKHOLDERS'
EQUITY
|
||||||||||
|
Capital
stock
|
208
|
2,279
|
2,264
|
|||||||
|
Premium
in Public Offering of Shares
|
59
|
650
|
734
|
|||||||
|
Retained
Earnings
|
1,412
|
15,431
|
18,619
|
|||||||
|
Net
Income for the Year
|
99
|
1,082
|
894
|
|||||||
|
Deficit
from Restatement of Stockholders' Equity
|
(334
|
)
|
(3,647
|
)
|
(3,703
|
)
|
||||
|
Reserve
for Repurchase of Shares
|
22
|
240
|
157
|
|||||||
|
Minimum
Seniority Premium Liability Adjustment
|
-
|
-
|
(1
|
)
|
||||||
|
Effect
of Deferred Income Taxes
|
(128
|
)
|
(1,394
|
)
|
(5,099
|
)
|
||||
|
Total
Majority Stockholder's Equity
|
1,339
|
14,640
|
13,865
|
|||||||
|
Minority
Interest
|
4
|
47
|
45
|
|||||||
|
TOTAL
STOCKHOLDERS' EQUITY
|
1,344
|
14,687
|
13,910
|
|||||||
|
|
||||||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
1,715
|
18,748
|
17,319
|
|||||||
|
|
||||||||||
|
(1)
|
Peso
amounts have been translated into U.S. dollars, solely for the
convenience
of the reader, at the rate of Ps. 10.9315 per U.S. dollar, the
noon buying
rate at September 28, 2007.
|
Third
Quarter 2007 Results | Page 8
Condensed
Consolidated Statements of Changes in Financial Position
(millions
of constant pesos as of September 30, 2007, and millions of U.S.
dollars)
|
|
Sep-30
2007(1)
|
Sep
'30
2007
|
Dec
'31
2006
|
|||||||
|
Operating
Activities:
|
||||||||||
|
Net
Income
|
US$ |
99
|
Ps. |
1,084
|
Ps. |
801
|
||||
|
Adjustments
to Reconcile Net Income to Resources
|
||||||||||
|
Provided
by Operating Activities:
|
||||||||||
|
Depreciation
and Others
|
38
|
416
|
395
|
|||||||
|
Changes
in Operating Assets and Liabilities
|
(86
|
)
|
(938
|
)
|
16
|
|||||
|
Deferred
Income Taxes
|
11
|
122
|
37
|
|||||||
|
Resources
Provided by Operating Activities
|
63
|
684
|
1,251
|
|||||||
|
|
||||||||||
|
Financing
Activities:
|
||||||||||
|
Increase
of Capital Stock
|
0
|
0
|
0
|
|||||||
|
Proceeds
from Long-term Debt
|
-
|
-
|
-
|
|||||||
|
Proceeds
from Short-term Debt
|
12
|
132
|
44
|
|||||||
|
Repayment
of Long-term Debt and Notes Payable
|
(4
|
)
|
(49
|
)
|
(69
|
)
|
||||
|
Decrease
in Long-term Debt in Constant Pesos
|
(1
|
)
|
(11
|
)
|
(4
|
)
|
||||
|
Cash
Dividends Paid
|
(33
|
)
|
(357
|
)
|
(373
|
)
|
||||
|
Resources
Provided by (Used in) Financing Activities
|
(26
|
)
|
(285
|
)
|
(401
|
)
|
||||
|
|
||||||||||
|
Investing
Activities:
|
||||||||||
|
Acquisition
of Property, Plant and Equipment
|
(43
|
)
|
(472
|
)
|
(584
|
)
|
||||
|
Minority
Interest
|
0
|
2
|
(1
|
)
|
||||||
|
Others
|
(1
|
)
|
(13
|
)
|
(28
|
)
|
||||
|
Resources
Used in Investing Activities
|
(44
|
)
|
(483
|
)
|
(613
|
)
|
||||
|
|
||||||||||
|
Net
(Decrease) Increase in Cash and Cash
|
||||||||||
|
Equivalents
|
(8
|
)
|
(84
|
)
|
237
|
|||||
|
|
||||||||||
|
Cash
and Cash Equivalents at Beginning of Period
|
323
|
3,530
|
3,369
|
|||||||
|
|
||||||||||
|
Cash
and Cash Equivalents at End of Period
|
US$ |
315
|
Ps. |
3,446
|
Ps. |
3,606
|
||||
|
|
||||||||||
|
(1)
|
Peso
amounts have been translated into U.S. dollars, solely for the
convenience
of the reader, at the rate of Ps. 10.9315 per U.S. dollar, the
noon buying
rate at September 28, 2007.
|