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 FIRST QUARTER ENDED AS OF MARCH 31, 2020

 

BACHOCO INDUSTRIES

(Translation of Registrant’s name into English)

 

 

Avenida Tecnológico #401

38010 Celaya, Guanajuato, Mexico

(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 ¨

 

(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 ¨     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.B. de C.V. (Registrant)

/s/ Daniel Salazar Ferrer, CFO

 

 

Date: April 28, 2020

 

 

 

 

Exhibit 99.1

 

 

 

BACHOCO ANNOUNCES FIRST QUARTER 2020 RESULTS

 

Celaya, Guanajuato, Mexico – April 28th, 2020

 

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 (“1Q20”) ending March 31, 2020. 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- 2020 vs. 2019

·Net sales increased 9.9% in 1Q20.
·EBITDA margin was 6.0% in 1Q20 vs 4.6% in 1Q19, our EBITDA was $947.3 million.
·Earnings per basic and diluted share were $3.61

 

CEO COMMENTS

 

Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated, “We ended the first quarter of the year with good results, growing in terms of volume both in Mexico and the U.S. Even when we observed a soft demand at the beginning of the year, the industry was able to get back in balance for the remaining period.

 

As a result, we achieved an overall increase of 6.3% in volume sold and an increase in net sales close to 10%, both when compared to 1Q19.

 

Prices of our main raw material were stable in USD terms but, volatility by the end of the quarter in the Mexican peso exchange rate vs the US dollar partially offset this benefit.

 

We managed to keep our SG&A under control as it represents 10.0% of total sales, a rate slightly lower when compared to the same period of 2019.

 

For 1Q20, we reached an EBITDA of $947.3 for a 6.0% margin. This EBITDA represents an increase when compared with the 4.6% of 1Q19. Earnings per basic and diluted shares were $3.61 for the 1Q20.

 

The Company remained in a healthy financial condition as we reached a net cash level of $16,527.8 million, which will allow us to continue to support our growth plans.

 

By the end of the quarter, Mexico started experiencing some of the impacts of pandemic COVID-19. Even when during 1Q20 we did not observe a material impact in our results, as the situation quickly evolves, we might see some economic disruptions in the months to come.

 

As a result, we will remain focused on efficiencies across all of our processes which allow us to supply our markets and customers as best as we can”

 

 

Contact Information

inversionistas@bachoco.net / T. +52(461)618 3555

 

 

 

 

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 2019.

 

QUARTERLY RESULTS

 

NET SALES BY GEOGRAPHY        
In millions of pesos   1Q20 1Q19 Change
    $ $ $ %
Net sales   15,738.4 14,323.6      1,414.8                  9.9
Net sales in Mexico   11,067.6 10,311.3         756.2                  7.3
Net sales in the U.S.   4,670.8 4,012.3         658.5                16.4

 

NET SALES BY SEGMENT        
In millions of pesos   1Q20 1Q19 Change
    $ $ $ %
Net sales      15,738.4      14,323.6      1,414.8                  9.9
Poultry      14,162.8      12,852.8      1,309.9                10.2
Other        1,575.6        1,470.8         104.8                  7.1

 

NET VOLUME SOLD BY SEGMENT

In tons       Change
    1Q20 1Q19 Volume %
Total sales volume:   588,018 553,175    34,842.6                  6.3
Poultry   457,167 425,745    31,422.0                  7.4
Others   130,851 127,430      3,420.7                  2.7

 

In 1Q20, the Company’s net sales totaled $15,738.4 million; $1,414.8 million or 9.9% more than $14,323.6 million reported in 1Q19. This was a result of more volume sold in our main business lines as well as better prices in poultry.

 

In 1Q20, sales of our U.S. operations represented 29.7% of our total sales compared with 28.0% in 1Q19.

 

 2

 

 

GROSS PROFIT        
In millions of pesos   1Q20 1Q19 Change
    $ $ $ %
Cost of sales   13,557.3 12,515.7 1,041.6 8.3
Gross profit   2,181.1 1,807.9 373.2 20.6
Gross margin   13.9% 12.6% - -

 

The cost of sales totaled $13,557.3 million, representing $1,041.6 million or 8.3% higher than $12,515.7 million reported in the same period of 2019. This increase was mainly driven by more volume sold.

  

The Company’s gross profit in 1Q20 was $2,181.1 million, with a gross margin of 13.9%. This result is higher when compared to a gross profit of $1,807.9 million and a gross margin of 12.6% reported in 1Q19.

 

Selling, general and administrative expenses (“SG&A”)
In millions of pesos        
    1Q20 1Q19 Change
    $ $ $ %
Total SG&A   1,572.7 1,474.4              98.3                     6.7

 

Total SG&A expenses in 1Q20 were $1,572.7 million; $98.3 million or 6.7% more than the $1,474.4 million reported 1Q19. Total SG&A expenses, as a percentage of net sales, represent 10.0% in 1Q20 and 10.3% in 1Q19.

 

other income (expense), net
In millions of pesos   1Q20 1Q19 Change
    $ $ $ %
Other income (expense), net                 (4.5)                  1.6              (6.1)               (377.8)

 

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   1Q20 1Q19 Change
    $ $ $ %
Operating income   604.0 335.2 268.8 80.2
Operating margin   3.8% 2.3% - -

 

Operating income in 1Q20 totaled $604.0 million for an operating margin of 3.8%; higher than an operating income of $335.2 million and a 2.3% operating margin reported in 1Q19. The increase in operating income is mainly attributed to higher gross profit than in 1Q19.

 


NET FINANCIAL INCOME		        
In millions of pesos   1Q20 1Q19 Change
    $ $ $ %
Net Financial Income (Expense)   2,426.5 76.0 2,350.5 3,092.5
Financial Income   2,483.3 135.4 2,348.0 1,734.3
Financial Expense   56.8 59.4 (2.6) (4.3)

 

In 1Q20, the Company reported net financial income of $2,426.5 million, compared to net financial income of $76.0 million reported in the same period of 2019.

 

Given that part of our cash position is in dollar terms, the Mexican peso depreciation with respect to the US dollar by the end of the quarter, resulted in higher financial income when compared to the same period of 2019.

 

 

TAXES FOR THE PERIOD        
In millions of pesos   1Q20 1Q19 Change
    $ $ $ %
Total Taxes              860.3              108.7         751.7              691.8
Income tax           910.5 49.3         861.2           1,745.5
Deferred income tax            (50.2)             59.3       (109.5)            (184.6)

 

Total taxes for the 1Q20 were $860.3 million, compared to $108.7 million in the same period of 2019. This was a result of higher operating income in 1Q20.

 

 3

 

 

NET INCOME        
In millions of pesos   1Q20 1Q19 Change
    $ $ $ %
Net income   2,170.2 302.5 1,867.6 617.3
Net margin   13.8% 2.1% - -
Non-Controlling Interest income   3.5 3.8 (0.2) n/a
Net controlling interest income   2,166.6 298.8 1,867.9 n/a
Basic and diluted income per share1   3.61 0.50 3.1 n/a
Basic and diluted income per ADR2   43.34 5.98 37.4 n/a
Weighted average Shares outstanding3   599,843 599,920 - -

1 In pesos

2 in pesos, an ADR is equal to twelve shares

3 In thousands of shares

 

The net income for 1Q20 was $2,170.2 million, representing a basic and diluted income of $3.61 pesos per share. This result compares to a net income of $302.5 million, which represented a net income of $0.50 pesos of basic and diluted income per share in 1Q19. Net margin for the 1Q20 was 13.8% compared to 2.1% reported in 1Q19.

 

EBITDA        
In millions of pesos   1Q20 1Q19 Change
    $ $ $ %
Net controlling interest income   2,166.6 298.8 1,867.9 625.2
   Income tax expense (benefit)   860.3 108.7 751.7 691.8
   Result in associates   3.5 3.8 (0.2) (6.5)
   Net finance (income) expense   (2,426.5) (76.0) (2,350.5) 3,092.5
   Depreciation and amortization   343.3 319.7 23.6 7.4
EBITDA   947.3 654.9 292.4 44.7
EBITDA Margin (%)   6.0% 4.6% - -
Net sales   15,738.4 14,323.6 1,414.8 9.9

 

EBITDA in 1Q20 reached $947.3 million, representing an EBITDA margin of 6.0%, compared to an EBITDA of $654.9 million in 1Q19 with an EBITDA margin of 4.6%.

 

BALANCE SHEET DATA

 

BALANCE SHEET DATA        
In millions of pesos   Mar 31, 2020 Dec. 31, 2019 Change
    $ $ $ %
TOTAL ASSETS      60,095.0      55,702.5      4,392.5                  7.9
Cash and cash equivalents      20,895.1      19,182.9      1,712.2                  8.9
Accounts receivable        4,535.5        3,880.8         654.7                16.9
TOTAL LIABILITIES      16,493.9      15,442.2      1,051.8                  6.8
Accounts payable        4,907.1        5,235.5       (328.5)                (6.3)
Short-term debt        2,692.2        3,440.4       (748.2)              (21.7)
Long-term debt        1,675.1        1,488.2         186.9                12.6
TOTAL STOCKHOLDERS’ EQUITY      43,601.1      40,260.3      3,340.8                  8.3
Capital stock        1,174.2        1,174.3           (0.1)                (0.0)

 

 4

 

 

Cash and equivalents as of March 31, 2020 totaled $20,895.1 million; $1,712.2 million or 8.9% higher than $19,182.9 million as of December 31, 2019.

 

Total debt as of March 31, 2020 totaled $4,367.3 million, compared to $4,928.6 million reported as of December 31, 2019.

 

Net cash as of March 31, 2020 was $16,527.8 million, compared to net cash of $14,254.3 million as of December 31, 2019.

 

CAPEX

 

CAPITAL EXPENDITURES
In millions of pesos   2020 2019 Change
    $ $ $ %
Capital Expenditures   292.7 409.2 105.2 34.6

 

Total CAPEX for the 1Q20 was $409.2 million, which was mainly allocated toward organic growth and productivity projects across all our facilities.

 

STOCK INFORMATION

 

As of March 31, 2020
Total Shares   600,000,000
Total free float   26.75%
Market cap (millions of pesos)   $40,488

 

 

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 71.07 58.76 67.48   44.14 28.67 34.00  
February 75.83 68.57 71.07   48.87 42.67 43.04  
January 82.40 75.01 75.82   52.70 47.78 48.34  
December 83.46 79.77 81.43   52.99 51.09 52.00  
November 85.92 80.00 84.69   53.72 49.26 51.18  
October 84.46 81.35 86.38   54.99 49.56 53.84  
                           

 

Source: Yahoo Finances

 

 

ANALYST COVERAGE

 

Institution Analyst name E-mail
ACTINVER José Antonio Cebeira jcebeira@actinver.com.mx
BBVA BANCOMER Pablo Abraham Peregrina pablo.abraham@bbva.com
GBM Miguel Tortolero matortolero@gbm.com.mx
INTERCAM Cristian M. Sánchez Arenas crsancheza@intercam.com.mx 
INVEX Giselle Mojica gmojica@invex.com
JP MORGAN Ulises Argote ulises.argote@jpmorgan.com
MONEX Blanca Jimena Colin Fernandez bjcolinf@monex.com.mx
SANTANDER Hector Maya López hmmaya@santander.com.mx

 

 5

 

 

 

APPENDICES

 

For reference, some figures have been translated into millions of U.S. dollars (“USD”) using an exchange rate of $23.80 per USD $1.0, which corresponds to the rate at the close of March 31, 2020, according to Mexico’s National Bank.

 

·Consolidated Statement of Financial Position

 

·Consolidated Statement of Income

 

·Consolidated Statement of Cash Flows

 

·Derivatives Position Report

 

 6

 

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

-Unaudited-      

 

   In U.S. Dollar   March 31,   December 31, 
In million pesos   2020    2020    2019*
                
TOTAL ASSETS  $2,525.0    60,095.0    55,702.5 
                
Total current assets   1,438.7    34,241.3    31,097.2 
   Cash and cash equivalents   877.9    20,895.1    19,182.9 
   Total accounts receivable   190.6    4,535.5    3,880.8 
   Inventories   330.8    7,872.0    6,753.4 
   Other current assets   39.4    938.6    1,280.1 
                
Total non current assets   1,086.3    25,853.8    24,605.2 
   Net property, plant and equipment   805.4    19,169.3    18,556.6 
   Other non current Assets   280.9    6,684.5    6,048.6 
                
TOTAL LIABILITIES  $693.0    16,493.9    15,442.2 
                
Total current liabilities   377.3    8,978.7    8,908.1 
   Notes payable to banks   113.1    2,692.2    3,440.4 
   Accounts payable   206.2    4,907.1    5,235.5 
   Other taxes payable and other accruals   58.0    1,379.4    232.2 
                
Total long-term liabilities   315.8    7,515.3    6,534.0 
   Long-term debt   70.4    1,675.1    1,488.2 
   Other  non current liabilities   53.2    1,265.2    1,141.3 
   Deferred income taxes   192.2    4,574.9    3,904.5 
                
TOTAL STOCKHOLDERS' EQUITY  $1,832.0    43,601.1    40,260.3 
                
Capital stock   49.3    1,174.2    1,174.3 
Commission in shares issued   17.4    414.5    414.5 
Retained earnings   1,676.1    39,890.2    37,732.9 
Others accounts   85.6    2,038.3    858.2 
Non controlling interest   3.5    83.9    80.4 
                
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $2,525.0    60,095.0    55,702.5 

 

 

 

*Audited                        

 

 7

 

 

 

CONSOLIDATED STATEMENT OF INCOME

First Quarter Results, ended March 31st:

-Unaudited-    

 

 

   U.S. Dollar         
In millions pesos  2020   2020   2019 
Net sales  $661.3    15,738.4    14,323.6 
Cost of sales   569.6    13,557.3    12,515.7 
Gross profit   91.6    2,181.1    1,807.9 
SG&A   66.1    1,572.7    1,474.4 
Other income (expenses), net   (0.2)   (4.5)   1.6 
Operating income   25.4    604.0    335.2 
Net finance income   102.0    2,426.5    76.0 
Income tax   36.1    860.3    108.7 
Net Income  $91.2    2,170.2    302.5 
                
Non-controlling interest   0.15    3.5    3.8 
Net controlling interest profit   91.0    2,166.6    298.8 
Basic and diluted earnings per share   0.15    3.61    0.50 
Basic and diluted earnings per ADR   1.82    43.34    5.98 
Weighted average Shares outstanding1   599,843    599,843    599,920 
                
EBITDA Result  $39.8    947.3    654.9 
                
Gross margin   13.9%   13.9%   12.6%
Operating margin   3.8%   3.8%   2.3%
Net margin   13.8%   13.8%   2.1%
EBITDA margin   6.0%   6.0%   4.6%

 

1 In thousands      

 

 8

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

In million of pesos

-Unaudited-  

 

 

   U.S. Dollar   March 31, 
   2020   2020   2019 
             
NET MAJORITY INCOME BEFORE INCOME TAX  $127.3    3,030.5    411.2 
                
ITEMS RELATING TO INVESTING ACTIVITIES:   14.1    336.5    151.6 
      Depreciation and others   18.2    433.3    319.7 
      Income (loss) on sale of plant and equipment   0.6    14.1    (3.2)
      Other Items   (4.7)   (110.9)   (164.9)
                
NET CASH GENERATED FROM NET INCOME BEFORE TAXES   141.5    3,367.0    562.7 
CASH GENERATED OR USED IN THE OPERATION:   (36.8)   (875.3)   (1,310.4)
   Decrease (increase) in accounts receivable   (23.7)   (564.8)   (458.0)
   Decrease (increase) in inventories   (37.8)   (899.0)   284.0 
   Increase (decrease) in accounts payable   58.5    1,393.4    (2,653.0)
   Other Items   (33.8)   (805.0)   1,516.7 
                
NET CASH FLOW FROM OPERATING ACTIVITIES   104.7    2,491.7    (747.7)
                
NET CASH FLOW FROM INVESTING ACTIVITIES   (9.1)   (216.9)   (100.0)
      Acquisition of property, plant and equipment   (12.3)   (292.7)   (409.2)
      Proceeds from sales of property plant and equipment   0.2    5.6    33.0 
      Other Items   3.0    70.2    276.3 
                
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES   95.6    2,274.9    (847.6)
                
Net cash provided by financing activities:   (25.5)   (605.8)   (1,410.9)
   Proceeds from loans   103.4    2,459.7    1,992.4 
   Principal payments on loans   (143.5)   (3,415.5)   (3,211.2)
   Other items   14.7    350.0    (192.1)
Net increase (decrease) in cash and equivalents   70.1    1,669.1    (2,258.5)
                
Cash and investments at the beginning of year  $805.2    19,164.8    18,451.9 
CASH AND INVESTMENTS AT END OF PERIOD  $875.4    20,833.9    16,193.4 

 

 9

 

 

DERIVATIVES POSITION REPORT

 

First Quarter 2020

Thousands of Mexican Pesos, as of March 31, 2020

 

TYPE OF FINANCIAL INSTRUMENT OBJECTIVE NOTIONAL VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTS DUE BY YEAR GUARANTIES REQUIRED
1Q-2020 4Q-2019 1Q-2020 4Q-2019
Forward Vanilla and KO Fwd Hedge  $      45,435  $         23.80    $         18.89    $  111,955  $     -9,431 100% in 2020 The deals consider the possibility of margin calls but not another kind of guarantee
Futures for corn and soybean meal Hedge  $      656,372  CORN   CORN  -$      33,818  $        8,557 90% in 2020 and 10% in 2021
 In USD per Bushel   In USD per Bushel 
 month   price   month   price 
May-20  $           3.408 Mar-20  $           3.878
Jul-20  $           3.460 May-20  $           3.948
Sep-20  $           3.498 Jul-20  $           4.010
Dec-20  $           3.575 Sep-20  $           4.010
Mar-21  $           3.685 Dec-20  $           4.025
May-21  $           3.745    
Jul-21  $           3.775    
Dec-21  $           3.775    
 SOYBEAN MEAL   SOYBEAN MEAL 
 In USD per ton   In USD per ton 
 month   price   month   price 
Jul-20  $           318.9    
Aug-20  $           314.0    
Jan-21  $           305.4    
Mar-21  $           295.8 Mar-20  $           304.7
May-21  $           293.0 May-20  $           308.5
Jul-21  $           294.9    
Aug-21  $           295.0    
Sep-21  $           294.0    
Oct-21  $           291.7    
Dec-21  $           292.5    
Options of Corn Hedge  $      78,635  CORN   CORN   $        1,912  $           622 78% in 2020 and 22% in 2021
 In USD per Bushel   In USD per Bushel 
 month   price   month   price 
May-20  $           3.408    
Jul-20  $           3.460    
Sep-20  $           3.498 Mar-20  $           3.878
Dec-20  $           3.575 May-20  $           3.948
Mar-21  $           3.685 Jul-20  $           4.010
Options of soybean meal Hedge  $        98,064  SOYBEAN MEAL   SOYBEAN MEAL   $        4,059  $             10 73% in 2020 and 27% in 2021
 In USD per ton   In USD per ton 
 month   price   month   price 
May-20  $           321.5    
Jul-20  $           318.9    
Aug-20  $           314.0    
Sep-20  $           310.0    
Oct-20  $           308.0 Mar-20  $           304.7
Dec-20  $           308.4 May-20  $           308.5
Jan-21  $           305.4 Jul-20  $           312.0
Mar-21  $           295.8    

 

-The total financial instruments do not exceed 5% of total assets as of March 31, 2020.

-The notional value represents the net position as of March 31, 2020 at the exchange rate of Ps. 23.80 per one dollar.

-A negative value means an unfavorable effect for the Company.          

 

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First Quarter 2020                
Thousands of Mexican Pesos, as of March 31, 2020         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 and KO Fwd  $          111,955 $23.21  $       24.40  $       24.99  Direct   $   92,656  $ 118,756  $ 134,485
    -5% 5% 10%   -5% 5% 10%
Futures of Corn: (2) -$            33,818  $       3.237  $       3.578  $       3.748  The effect will materialize as the inventory is consumed  -$     2,800 -$        999  $   31,819
Futures of Soybean Meal: (2)  $       305.4  $       337.6  $       353.7
Options for Corn  $               1,912  $       3.237  $       3.578  $       3.748 -$           85  $     5,844  $      9,776
Options of Soybean Meal  $               4,059  $       305.4  $       337.6  $       353.7 -$           35  $     8,962  $   13,866

 

  (1) The reference value is the exchange  rate of Ps. $23.80 per USD as of March 31, 2020.

  (2) The reference values are; the future of corn for May 2020, $3.4075 USD/bushel and the future of soybeanmeal for May 2020, $321.50  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.          

 

 

 

First Quarter 2020                    
Thousands of Mexican Pesos, as of March 31, 2020         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 and KO Fwd  $           111,955 $11.90 $17.85 $29.75 $35.70  Direct  -$363,903 -$93,565 $218,273 $339,862

 

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CONFERENCE CALL INFORMATION

 

The Company will host its first quarter 2020 earnings call, on Wednesday, April 29th, 2020. The earnings call will take place at 9:00 am Central Time (10:00 am 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=UDQOBydiqguyam

 

 

Confirmation Number: 49569210

 

 

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 28,000 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

 

maria.jaquez@bachoco.net

 

Andrea Guerrero

 

andrea.guerrero@bachoco.net

 

T. +52(461)618 3555

 

 

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