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 (“1Q21”) ending March 31, 2021. 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- 2021 vs. 2020
- Net sales increased 23.0% in 1Q21.
- EBITDA margin was 15.1% in 1Q21 vs 6.0% in 1Q20.
- Earnings per basic and diluted share were $3.50 in 1Q21 vs $3.61 in 1Q20.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated, “We continued observing a good balance between supply and demand which allowed us to achieve outstanding results in our first quarter of 2021, despite adjustments in sales volume, as a result of remaining COVID-19 confinement measures that had effects in some of the markets in which we compete.
Regarding our cost of sales, this quarter we observed the impact of higher raw materials prices in USD terms. Overall, our cost was 11.7% higher than the same quarter of 2020. However, the good balance between supply and demand previously mentioned, allowed us to translate some of that increase to our sales price while we keep doing efforts to also absorb part of that increase thru efficiencies in our processes as well.
Additionally, we have managed to keep our SG&A under control. For 1Q21 ours SG&A as percentage of sales was 8.5%, compared to the 10% recorded in the same period of 2020.
By keeping focus on the things we can control and by doing our best to manage external factors, we were able to achieve an EBITDA in 1Q21 of $2,913.4 million or 15.1% EBITDA margin. This compares to the $947.3 million and 6.0% margin reported for 1Q20.
We remain committed to our investors that we will keep a strong financial position while continuing to grow. As a result, we reported CAPEX of $555.7 million for the quarter which compares to the $292.7 million for the same period of 2020. This was achieved while generating a net cash position of $17,208.1 million by the end of 1Q21.
Unfortunately, the Covid-19 pandemic continues affecting not only México, but also economic conditions all around the world. Even if we did not observe material impacts in our operations or results during 1Q21, we are aware that conditions might change overnight. Therefore, we remain focused on reinforcing our internal capabilities, which will allow us to keep performing at our very best.”
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 2020.
QUARTERLY RESULTS
NET SALES BY GEOGRAPHY |
|
|
|
|
|
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net sales |
|
19,357.6 |
15,738.4 |
3,619.2 |
23.0 |
Net sales in Mexico |
|
14,629.4 |
11,067.6 |
3,561.8 |
32.2 |
Net sales in the U.S. |
|
4,728.2 |
4,670.8 |
57.4 |
1.2 |
NET SALES BY SEGMENT |
|
|
|
|
|
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net sales |
|
19,357.6 |
15,738.4 |
3,619.2 |
23.0 |
Poultry |
|
16,983.9 |
14,162.8 |
2,821.1 |
19.9 |
Other |
|
2,373.8 |
1,575.6 |
798.1 |
50.7 |
NET VOLUME SOLD BY SEGMENT
In tons |
|
Change |
|||
|
1Q21 |
1Q20 |
Volume |
% |
|
Total sales volume: |
558,082 |
588,018 |
(29,935.7) |
(5.1) |
|
Poultry |
416,978 |
457,167 |
(40,189.3) |
(8.8) |
|
Others |
141,104 |
130,851 |
10,253.6 |
7.8 |
|
In 1Q21, the Company’s net sales totaled $19,357.6 million; $3,619.2 million or 23.0% more than $15,738.4 million reported in 1Q20. This was a result of better prices in our main business lines and higher volume sold in Others due to the integration of SASA.
In 1Q21, sales of our U.S. operations represented 24.4% of our total sales compared with 29.7% in 1Q20.
GROSS PROFIT |
|
|
|
|
|
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Cost of sales |
|
15,139.6 |
13,557.3 |
1,582.3 |
11.7 |
Gross profit |
|
4,218.0 |
2,181.1 |
2,036.9 |
93.4 |
Gross margin |
|
21.8% |
13.9% |
- |
- |
The cost of sales totaled $15,139.6 million, representing $1,582.3 million or 11.7% higher than $13,557.3 million reported in the same period of 2020. This increase was mainly driven higher raw material prices in dollar and in peso terms when compared to the same period of 2020.
The Company’s gross profit in 1Q21 was $4,218.0 million, with a gross margin of 21.8%. This result is higher when compared to a gross profit of $2,181.1 million and a gross margin of 13.9% reported in 1Q20.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (“SG&A”) |
|||||
In millions of pesos |
|
|
|
|
|
|
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Total SG&A |
|
1,637.3 |
1,572.7 |
64.6 |
4.1 |
Total SG&A expenses in 1Q21 were $1,637.3 million; $64.6 million or 4.1% more than the $1,572.7 million reported 1Q20. Total SG&A expenses, as a percentage of net sales, represent 8.5% in 1Q21 and 10.0% in 1Q20.
OTHER INCOME (EXPENSE), NET |
|||||
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Other income (expense), net |
|
(21.8) |
(4.5) |
(17.3) |
384.4 |
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.
OPERATING INCOME |
|
|
|
|
|
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Operating income |
|
2,559.0 |
604.0 |
1,955.0 |
323.7 |
Operating margin |
|
13.2% |
3.8% |
- |
- |
Operating income in 1Q21 totaled $2,559.0 million with an operating margin of 13.2%; higher than the operating income of $604.0 million and 3.8% operating margin reported in 1Q20. The increase in operating income is mainly attributed to higher revenues in our main business lines.
NET FINANCIAL INCOME |
|
|
|
|
|
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net Financial Income (Expense) |
|
319.6 |
2,426.5 |
(2,106.9) |
(86.8) |
Financial Income |
|
374.4 |
2,483.3 |
(2,108.9) |
(84.9) |
Financial Expense |
|
54.8 |
56.8 |
(2.0) |
(3.5) |
In 1Q21, the Company reported net financial income of $319.6 million, compared to net financial income of $2,426.5 million reported in the same period of 2020. This lower financial income was a result of the depreciation of the Mexican peso of around 2% from 4Q20 to 1Q21 vs the depreciation of around 26% from 4Q19 to 1Q20.
TAXES FOR THE PERIOD |
|
|
|
|
|
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Total Taxes |
|
803.9 |
860.3 |
(56.4) |
(6.6) |
Income tax |
|
524.7 |
910.5 |
(385.8) |
(42.4) |
Deferred income tax |
|
279.2 |
(50.2) |
329.4 |
(656.1) |
Total taxes for the 1Q21 were $803.9 million, compared to $860.3 million in the same period of 2020.
NET INCOME |
|
|
|
|
|
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net income |
|
2,074.6 |
2,170.2 |
(95.5) |
(4.4) |
Net margin |
|
10.7% |
13.8% |
- |
- |
Non-Controlling Interest income |
|
(25.8) |
3.5 |
(29.3) |
n/a |
Net controlling interest income |
|
2,100.4 |
2,166.6 |
(66.3) |
n/a |
Basic and diluted income per share1 |
|
3.50 |
3.61 |
(0.1) |
n/a |
Basic and diluted income per ADR2 |
|
42.02 |
43.34 |
(1.3) |
n/a |
Weighted average Shares outstanding3 |
|
599,835 |
599,843 |
- |
- |
1 In pesos
2 in pesos, an ADR is equal to twelve shares
3 In thousands of shares
The net income for 1Q21 was $2,074.6 million, representing a basic and diluted income of $3.50 pesos per share. This result compares to a net income of $2,170.1 million, which represented $3.61 pesos of basic and diluted income per share in 1Q20. Net margin for the 1Q21 was 10.7% compared to 13.8% reported in 1Q20.
EBITDA |
|
|
|
|
|
In millions of pesos |
|
1Q21 |
1Q20 |
Change |
|
|
|
$ |
$ |
$ |
% |
Net controlling interest income |
|
2,100.4 |
2,166.6 |
(66.3) |
(3.1) |
Income tax expense (benefit) |
|
803.9 |
860.3 |
(56.4) |
(6.6) |
Result in associates |
|
(25.8) |
3.5 |
(29.3) |
(830.2) |
Net finance (income) expense |
|
(319.6) |
(2,426.5) |
2,106.9 |
(86.8) |
Depreciation and amortization |
|
354.5 |
343.3 |
11.1 |
3.2 |
EBITDA |
|
2,913.4 |
947.3 |
1,966.1 |
207.6 |
EBITDA Margin (%) |
|
15.1% |
6.0% |
- |
- |
Net sales |
|
19,357.6 |
15,738.4 |
3,619.2 |
23.0 |
EBITDA in 1Q21 reached $2,913.4 million, representing an EBITDA margin of 15.1%, compared to an EBITDA of $947.3 million in 1Q20 with an EBITDA margin of 6.0%.
BALANCE SHEET DATA
BALANCE SHEET DATA |
|
|
|
|
|||
In millions of pesos |
|
Mar 31, 2021 |
Dec. 31, 2020 |
Change |
|||
|
|
$ |
$ |
$ |
% |
||
TOTAL ASSETS |
|
59,877.1 |
58,475.0 |
1,402.1 |
|
2.4 |
|
Cash and cash equivalents |
|
19,791.7 |
19,242.4 |
549.3 |
|
2.9 |
|
Accounts receivable |
|
4,655.5 |
4,366.7 |
288.8 |
|
6.6 |
|
TOTAL LIABILITIES |
|
13,612.9 |
14,548.2 |
(935.3 |
) |
(6.4 |
) |
Accounts payable |
|
4,217.4 |
5,834.0 |
(1,616.6 |
) |
(27.7 |
) |
Short-term debt |
|
1,119.0 |
1,251.7 |
(132.8 |
) |
(10.6 |
) |
Long-term debt |
|
1,464.7 |
1,460.4 |
4.3 |
|
0.3 |
|
TOTAL STOCKHOLDERS’ EQUITY |
|
46,264.3 |
43,926.8 |
2,337.5 |
|
5.3 |
|
Capital stock |
|
1,174.2 |
1,174.3 |
(0.1 |
) |
(0.0 |
) |
Cash and equivalents as of March 31, 2021 totaled $19,791.7 million; $549.3 million or 2.9% higher than $19,242.4 million as of December 31, 2020.
Total debt as of March 31, 2021 totaled $2,582.6 million, compared to $2,712.1 million reported as of December 31, 2020.
Net cash as of March 31, 2021 was $17,209.1 million, compared to net cash of $16,530.2 million as of December 31, 2020.
CAPEX
CAPITAL EXPENDITURES |
|||||
In millions of pesos |
|
2021 |
2020 |
Change |
|
|
|
$ |
$ |
$ |
% |
Capital Expenditures |
|
555.7 |
292.7 |
263.0 |
89.9 |
Total CAPEX for the 1Q21 was $555.7 million, which was mainly allocated toward organic growth and productivity projects across all our facilities.
STOCK INFORMATION
As of March 31, 2021 |
||
Total Shares |
600,000,000 |
|
Total free float |
26.75% |
|
Market cap (millions of pesos) |
$40,824 |
|
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 |
||
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 |
||
December |
75.48 |
71.41 |
74.85 |
|
45.28 |
42.52 |
45.16 |
||
November |
70.44 |
64.55 |
70.06 |
|
41.55 |
36.23 |
41.53 |
||
October |
70.79 |
66.42 |
66.42 |
|
39.92 |
37.31 |
37.31 |
||
Source: Yahoo Finances
ANALYST COVERAGE
Institution |
Analyst name |
|
ACTINVER |
Enrique Mendoza Farias |
|
BBVA BANCOMER |
Pablo Abraham Peregrina |
|
GBM |
Miguel Tortolero |
|
INTERCAM |
Richard Horbach Martinez |
|
JP MORGAN |
Ulises Argote |
|
SANTANDER |
Hector Maya López |
APPENDICES
For reference, some figures have been translated into millions of U.S. dollars (“USD”) using an exchange rate of $20.42 per USD $1.0, which corresponds to the rate at the close of March 31, 2021, 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 | 2021 |
2021 |
2020* |
|||
| TOTAL ASSETS | $ |
2,932.3 |
59,877.1 |
58,475.0 |
||
| Total current assets |
|
1,656.3 |
33,821.0 |
32,586.0 |
||
| Cash and cash equivalents |
|
969.2 |
19,791.7 |
19,242.4 |
||
| Total accounts receivable |
|
228.0 |
4,655.5 |
4,366.7 |
||
| Inventories |
|
404.7 |
8,264.9 |
7,701.0 |
||
| Other current assets |
|
54.3 |
1,108.8 |
1,275.9 |
||
| Total non current assets |
|
1,276.0 |
26,056.1 |
25,889.0 |
||
| Net property, plant and equipment |
|
979.0 |
19,991.8 |
19,733.8 |
||
| Other non current Assets |
|
297.0 |
6,064.3 |
6,155.2 |
||
| TOTAL LIABILITIES | $ |
666.6 |
13,612.9 |
14,548.2 |
||
| Total current liabilities |
|
355.5 |
7,259.3 |
8,179.8 |
||
| Notes payable to banks |
|
54.8 |
1,119.0 |
1,251.7 |
||
| Accounts payable |
|
206.5 |
4,217.4 |
5,834.0 |
||
| Other taxes payable and other accruals |
|
94.2 |
1,922.9 |
1,094.1 |
||
| Total long-term liabilities |
|
311.1 |
6,353.6 |
6,368.4 |
||
| Long-term debt |
|
71.7 |
1,464.7 |
1,460.4 |
||
| Other non current liabilities |
|
48.7 |
993.8 |
1,033.0 |
||
| Deferred income taxes |
|
190.7 |
3,895.1 |
3,875.0 |
||
| TOTAL STOCKHOLDERS' EQUITY | $ |
2,265.6 |
46,264.3 |
43,926.8 |
||
| Capital stock |
|
57.5 |
1,174.2 |
1,174.3 |
||
| Commission in shares issued |
|
20.2 |
413.3 |
413.4 |
||
| Retained earnings |
|
2,104.1 |
42,965.2 |
40,874.4 |
||
| Others accounts |
|
55.3 |
1,129.5 |
855.5 |
||
| Non controlling interest |
|
28.5 |
582.1 |
609.2 |
||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ |
2,932.3 |
59,877.1 |
58,475.0 |
||
| *Audited | ||||||
| CONSOLIDATED STATEMENT OF INCOME | |||||||||
| First Quarter Results, ended March 31st: | |||||||||
| -Unaudited- | |||||||||
| U.S. Dollar | |||||||||
| In millions pesos | 2021 |
2021 |
2020 |
||||||
| Net sales | $ |
948.0 |
|
19,357.6 |
|
15,738.4 |
|
||
| Cost of sales |
|
741.4 |
|
15,139.6 |
|
13,557.3 |
|
||
| Gross profit |
|
206.6 |
|
4,218.0 |
|
2,181.1 |
|
||
| SG&A |
|
80.2 |
|
1,637.3 |
|
1,572.7 |
|
||
| Other income (expenses), net |
|
(1.1 |
) |
(21.8 |
) |
(4.5 |
) |
||
| Operating income |
|
125.3 |
|
2,559.0 |
|
604.0 |
|
||
| Net finance income |
|
15.7 |
|
319.6 |
|
2,426.5 |
|
||
| Income tax |
|
39.4 |
|
803.9 |
|
860.3 |
|
||
| Net Income | $ |
101.6 |
|
2,074.6 |
|
2,170.2 |
|
||
| Non-controlling interest |
|
(1.3 |
) |
(25.8 |
) |
3.5 |
|
||
| Net controlling interest profit |
|
102.9 |
|
2,100.4 |
|
2,166.6 |
|
||
| Basic and diluted earnings per share |
|
0.17 |
|
3.50 |
|
3.61 |
|
||
| Basic and diluted earnings per ADR |
|
2.06 |
|
42.02 |
|
43.34 |
|
||
| Weighted average Shares outstanding1 |
|
599,835 |
|
599,835 |
|
599,843 |
|
||
| EBITDA Result | $ |
142.7 |
|
2,913.4 |
|
947.3 |
|
||
| Gross margin |
|
21.8 |
% |
21.8 |
% |
13.9 |
% |
||
| Operating margin |
|
13.2 |
% |
13.2 |
% |
3.8 |
% |
||
| Net margin |
|
10.9 |
% |
10.7 |
% |
13.8 |
% |
||
| EBITDA margin |
|
15.1 |
% |
15.1 |
% |
6.0 |
% |
||
| 1 In thousands | |||||||||
| CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||
| In million of pesos | |||||||||
| -Unaudited- | |||||||||
| U.S. Dollar | March 31, | ||||||||
2021 |
2021 |
2020 |
|||||||
| NET MAJORITY INCOME BEFORE INCOME TAX | $ |
141.0 |
|
2,878.5 |
3,030.5 |
|
|||
| ITEMS RELATING TO INVESTING ACTIVITIES: |
|
21.1 |
|
431.8 |
336.5 |
|
|||
| Depreciation and others |
|
23.3 |
|
476.6 |
433.3 |
|
|||
| Income (loss) on sale of plant and equipment |
|
0.5 |
|
11.1 |
14.1 |
|
|||
| Other Items |
|
(2.7 |
) |
(55.9 |
) |
(110.9 |
) |
||
| NET CASH GENERATED FROM NET INCOME BEFORE TAXES |
|
162.1 |
|
3,310.3 |
3,367.0 |
|
|||
| CASH GENERATED OR USED IN THE OPERATION: |
|
(116.4 |
) |
(2,376.9 |
) |
(875.3 |
) |
||
| Decrease (increase) in accounts receivable |
|
(6.8 |
) |
(139.3 |
) |
(564.8 |
) |
||
| Decrease (increase) in inventories |
|
2.7 |
|
54.9 |
(899.0 |
) |
|||
| Increase (decrease) in accounts payable |
|
(2.8 |
) |
(56.9 |
) |
1,393.4 |
|
||
| Other Items |
|
(109.5 |
) |
(2,235.7 |
) |
(805.0 |
) |
||
| NET CASH FLOW FROM OPERATING ACTIVITIES |
|
45.7 |
|
933.4 |
2,491.7 |
|
|||
| NET CASH FLOW FROM INVESTING ACTIVITIES |
|
(14.6 |
) |
(298.2 |
) |
(216.9 |
) |
||
| Acquisition of property, plant and equipment |
|
(27.2 |
) |
(555.6 |
) |
(292.7 |
) |
||
| Proceeds from sales of property plant and equipment |
|
0.1 |
|
1.8 |
5.6 |
|
|||
| Other Items |
|
12.5 |
|
255.7 |
70.2 |
|
|||
| CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES |
|
31.1 |
|
635.2 |
2,274.9 |
|
|||
| Net cash provided by financing activities: |
|
(4.2 |
) |
(85.9 |
) |
(605.8 |
) |
||
| Proceeds from loans |
|
42.5 |
|
867.2 |
2,459.7 |
|
|||
| Principal payments on loans |
|
(41.3 |
) |
(844.2 |
) |
(3,415.5 |
) |
||
| Other items |
|
(5.3 |
) |
(108.8 |
) |
350.0 |
|
||
| Net increase (decrease) in cash and equivalents |
|
26.9 |
|
549.3 |
1,669.1 |
|
|||
| Cash and investments at the beginning of year | $ |
942.3 |
|
19,242.4 |
19,164.8 |
|
|||
| CASH AND INVESTMENTS AT END OF PERIOD | $ |
969.2 |
|
19,791.7 |
20,833.9 |
||||
DERIVATIVES POSITION REPORT
| First Quarter 2021 | |||||||||||||||||
| Thousands of Mexican Pesos, as of March 31, 2021 | |||||||||||||||||
| TYPE OF FINANCIAL INSTRUMENT | OBJECTIVE | NOTIONAL | VALUE OF THE RELATED COMMODITY | REASONABLE VALUE | AMOUNTS DUE BY YEAR | GUARANTIES REQUIRED | |||||||||||
| 1Q-2021 | 4Q-2020 | 1Q-2021 | 4Q-2020 | ||||||||||||||
| Forward Vanilla, KO Fwd and options | Hedge | $ |
378,061 |
$ |
20.42 |
$ |
19.95 |
$ |
-231,713 |
$ |
-449,417 |
99% in 2021; 1% 2022 | The deals consider the possibility of margin calls but not another kind of guarantee | ||||
| Futures for corn and soybean meal | Hedge | $ |
264,981 |
CORN | CORN | $ |
12,899 |
$ |
14,342 |
100% in 2021 | |||||||
| In USD per Bushel | In USD per Bushel | ||||||||||||||||
| month | price | month | price | ||||||||||||||
| May-21 | $ |
5.643 |
|||||||||||||||
| Jul-21 | $ |
5.475 |
Mar-21 | $ |
4.840 |
||||||||||||
| Sep-21 | $ |
4.960 |
|||||||||||||||
| Dec-21 | $ |
4.775 |
|||||||||||||||
| Oct-21 | $ |
399.6 |
|||||||||||||||
| SOYBEAN MEAL | SOYBEAN MEAL | ||||||||||||||||
| In USD per ton | In USD per ton | ||||||||||||||||
| month | price | month | price | ||||||||||||||
| May-21 | $ |
423.2 |
Aug-21 | $ |
406.9 |
||||||||||||
| Jul-21 | $ |
424.8 |
Sep-21 | $ |
302.6 |
||||||||||||
| Aug-21 | $ |
419.6 |
Oct-21 | $ |
366.4 |
||||||||||||
| Sep-21 | $ |
410.7 |
Dec-21 | $ |
365.3 |
||||||||||||
| Oct-21 | $ |
399.6 |
|||||||||||||||
| Dec-21 | $ |
397.5 |
Mar-21 | $ |
429.4 |
||||||||||||
| May-21 | $ |
423.4 |
|||||||||||||||
| Jul-21 | $ |
419.5 |
|||||||||||||||
| Options of Corn | Hedge | $ |
545,125 |
CORN | CORN | $ |
33,523 |
$ |
14,055 |
99% in 2021 and 1% in 2022 | |||||||
| In USD per Bushel | In USD per Bushel | ||||||||||||||||
| month | price | month | price | ||||||||||||||
| May-21 | $ |
5.643 |
|||||||||||||||
| Jul-21 | $ |
5.475 |
Mar-21 | $ |
4.840 |
||||||||||||
| Sep-21 | $ |
4.960 |
May-21 | $ |
4.833 |
||||||||||||
| Dec-21 | $ |
4.775 |
Jul-21 | $ |
4.803 |
||||||||||||
| Mar-22 | $ |
4.194 |
|||||||||||||||
| Options of soybean meal | Hedge | $ |
634,109 |
SOYBEAN MEAL | SOYBEAN MEAL | $ |
36,364 |
$ |
21,970 |
91% in 2021 and 9% in 2022 | |||||||
| In USD per ton | In USD per ton | ||||||||||||||||
| month | price | month | price | ||||||||||||||
| May-21 | $ |
423.2 |
|||||||||||||||
| Jul-21 | $ |
424.8 |
|||||||||||||||
| Aug-21 | $ |
419.6 |
|||||||||||||||
| Sep-21 | $ |
410.7 |
|||||||||||||||
| Oct-21 | $ |
399.6 |
Jan-21 | $ |
434.4 |
||||||||||||
| Dec-21 | $ |
397.5 |
Mar-21 | $ |
429.4 |
||||||||||||
| Jan-22 | $ |
394.2 |
May-21 | $ |
423.4 |
||||||||||||
| Mar-22 | $ |
383.9 |
Jul-21 | $ |
419.5 |
||||||||||||
| -The total financial instruments do not exceed 5% of total assets as of March 31, 2021. | |||||||||||||||||
| -The notional value represents the net position as of March 31, 2021 at the exchange rate of Ps.20.42 per one dollar. | |||||||||||||||||
| -A negative value means an unfavorable effect for the Company. | |||||||||||||||||
| First Quarter 2021 | ||||||||
| Thousands of Mexican Pesos, as of March 31, 2021 | 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, KO Fwd and options | -$ 231,713 |
$ 19.91 |
$ 20.93 |
$ 21.44 |
Direct | -$ 394,065 |
-$ 69,325 |
$ 119,506 |
-5% |
5% |
10% |
-5% |
5% |
10% |
|||
| Futures of Corn: (2) | $ 12,899 |
$ 5.360 |
$ 5.925 |
$ 6.207 |
The effect will materialize as the inventory is consumed |
-$ 350 |
$ 26,148 |
$ 39,397 |
| Futures of Soybean Meal: (2) | $ 402.0 |
$ 444.4 |
$ 465.5 |
|||||
| Options for Corn | $ 33,523 |
$ 5.360 |
$ 5.925 |
$ 6.207 |
$ 6,524 |
$ 60,523 |
$ 87,522 |
|
| Options of Soybean Meal | $ 36,364 |
$ 402.0 |
$ 444.4 |
$ 465.5 |
$ 5,161 |
$ 66,773 |
$ 97,182 |
|
| (1) The reference value is the exchange rate of Ps. $20.42 per USD as of March 31, 2021. | ||||||||
| (2) The reference values are; the future of corn for May 2021, $5.6425 USD/bushel and the future of soybeanmeal for May 2021, $423.20USD/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 2021 | ||||||||||
| Thousands of Mexican Pesos, as of March 31, 2021 | 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, KO Fwd and options | -$231,713 | $10.21 |
$15.32 |
$25.53 |
$30.63 |
Direct | -$3,479,097 | -$1,855,396 | $1,376,441 |
$3,007,800 |
CONFERENCE CALL INFORMATION
The Company will host its first quarter 2021 earnings call, on Friday, April 30th, 2021. The earnings call will take place at 11:00 am Central Time (12:00 pm ET).
To participate in the earnings call, please dial:
Toll free in the U.S.: 1 (888) 771-4371
Toll free in Mexico: 001 866 779 0965
Toll Local Mexico: 52 55 6722 5257
Toll 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=UDnqvRcOZDNBup
Confirmation Number: 50123677
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 29,000 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/20210429005410/en/
Contacts
IR contact information:
Maria Guadalupe Jaquez
maria.jaquez@bachoco.net
Andrea Guerrero
andrea.guerrero@bachoco.net
T. +52(461)618 3555
