Industrias Bachoco, S.A.B. de C.V., “Bachoco” or “the
Company”, (NYSE: IBA; BMV: Bachoco) announced today its
unaudited results for the fourth quarter (“4Q22”) and full year
(“2022”) ending on December 31st, 2022. All figures have been
prepared in accordance with International Financial Reporting
Standard (“IFRS”) and are presented in nominal million Mexican
Pesos (“$”).
HIGHLIGHTS 2022
- Net sales increased 11.2% in 4Q22 and increased 21.0% in year
2022 vs equivalent periods of 2021 respectively.
- EBITDA margin was 2.9% for 4Q22 and 10.0% for the whole
year.
- Earnings per basic and diluted share totaled $0.13 for the
quarter and $10.26 for the year.
CEO COMMENTS
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of
Bachoco, stated: “It is known that the last quarter of the year is
usually a challenging period, and 4Q22 was not the exception.
We kept observing high raw material prices compared to 2021
which had a negative impact in our cost of sales. Even when we had
been able to partially offset some of that increase thru pricing,
seasonal conditions on our markets, lowered our margins to
profitability levels below 4Q21 range.
On the other hand, for 4Q22 our SG&A increased 12.1% vs 4Q21
showing the impacts of higher fuel, energy and labor costs.
As a result, in 4Q22 we reported an operating income of $306.6
million, 38.7% lower than the $500.2 million achieved in the same
period of 2021. With operating margins of 1.3% and 2.4%
respectively. In terms of EBITDA margin this put us in a 2.9% for
4Q22 vs the 4.0% of 4Q21.
For the full year of 2022, the balance was good. With a very
strong first half of the year, we managed to achieve and EBITDA of
$9,916.2 million (10.0% margin) which is 35.3% higher compared to
the $7,328.2 million (9.0% margin) obtained in 2021.
As mentioned before, increases on raw material prices raised our
working capital and put pressure on our Free Cash Flow. However,
our financial discipline allowed us to end 2022 still with a solid
structure reporting a net cash position of $15,857.4 million vs the
$16,530.3 million reported in 2021.
Our CAPEX for 2022 were $4,666.2 million, a 34.1% increase vs
2021. Investments were oriented to our organic growth, and the
integration of RYC Alimentos.
We continue to be very focused on capturing efficiencies across
all our processes and being close to better serve our customers as
we know this is key for our growth."
EXECUTIVE SUMMARY
The following financial information is expressed in millions of
nominal pesos, except for amounts per share or per ADR, with
comparative figures for the same period in 2021.
QUARTERLY RESULTS
NET SALES BY GEOGRAPHY
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Net Sales
23,633.8
21,251.5
2,382.3
11.2
Net sales in Mexico
17,734.3
15,807.8
1,926.5
12.2
Net sales in the U.S.
5,899.5
5,443.8
455.7
8.4
NET SALES BY SEGMENT
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Net Sales
23,633.8
21,251.5
2,382.3
11.2
Poultry
20,000.6
18,727.7
1,272.9
6.8
Other
3,633.2
2,523.8
1,109.4
44.0
NET VOLUME SOLD BY SEGMENT
In tons
Change
4Q22
4Q21
Volume
%
Total sales volume:
591,687
605,925
(14,238.0)
(2.3)
Poultry
452,003
467,942
(15,939.1)
(3.4)
Others
139,684
137,983
1,701.1
1.2
The Company’s 4Q22 net sales totaled $23,633.8 million; $2,382.3
million or 11.2% more than $21,251.5 million reported in 4Q21. The
increase is a result of higher volume sold in Other and higher
prices in our main business lines as part of our strategy for
offsetting the increases on cost of sales.
In 4Q22, sales of our U.S. operations represented 25.0% of our
total sales compared to 25.6% in 4Q21.
GROSS PROFIT
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Cost of sales
21,089.3
18,670.6
2,418.7
13.0
Gross profit
2,544.5
2,580.9
(36.4)
(1.4)
Gross margin
10.8%
12.1%
-
-
In 4Q22 , cost of sales was $21,089.3 million; $2,418.7 million
or 13.0% higher than $18,670.6 million reported in 4Q21. This
increase was mainly due to higher unit cost in our main business
lines as we continued observing year over year increases in prices
of our main raw materials.
The Company´s gross profit in 4Q22 was $2,544.5 million, 1.4%
lower than the gross profit of $2,580.9 million in 4Q21, with a
gross margin of 10.8% for 4Q22 vs 12.1% in 4Q21.
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES (“SG&A”)
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Total SG&A
2,243.8
2,002.2
241.6
12.1
Total SG&A expenses in 4Q22 were $2,243.8 million; $241.6
million higher than the $2,002.2 million reported in 4Q21. Total
SG&A expenses as a percentage of net sales represented 9.5% in
4Q22 and 9.4% in 4Q21.
OTHER INCOME (EXPENSE), NET
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Other income (expense), net
5.9
(78.5)
84.4
(107.5)
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.
OPERATING INCOME
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Operating income
306.6
500.2
(193.6)
(38.7)
Operating margin
1.3%
2.4%
-
-
Operating income in 4Q22 totaled $306.6 million; $193.6 million
lower than the Operating income of $500.2 million reported in 4Q21.
This represents an operating margin of 1.3% for 4Q22, versus 2.4%
operating margin in the same period of 2021. The decrease in
operating income is mainly attributed to higher raw material costs
and higher SG&A.
NET FINANCIAL INCOME
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Net Financial Income
(359.3)
167.6
(526.9)
(314.3)
Financial Income
495.7
204.2
291.4
142.7
Financial Expense
855.0
36.6
818.4
2,235.4
In 4Q22, the Company reported net financial expenses of $359.3
million, compared to a net financial income of $167.6 million
reported in the same period of 2021. From the $855.0 million of
Financial Expenses, $465.5 million are a result of exchange rate
valuation.
TAXES FOR THE PERIOD
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Total Taxes
(110.7)
72.7
(183.4)
(252.2)
Income tax
498.3
736.6
(238.3)
(32.4)
Deferred income tax
(609.0)
(663.9)
54.9
(8.3)
Total taxes for the 4Q22 were a credit of $110.7 million,
compared with total taxes of $72.7 million charged for the same
period of 2021. This was a result of lower income before taxes for
the 4Q22.
NET CONTROLLING INTEREST INCOME
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Net income
58.0
595.1
(537.1)
(90.3)
Net margin
0.2%
2.8%
-
-
Non-Controlling Interest
income
(21.5)
(45.7)
24.2
n/a
Net controlling interest
income
79.5
640.8
(561.3)
n/a
Basic and diluted income per
share1
0.13
1.07
(0.9)
n/a
Basic and diluted income per
ADR2
1.59
12.82
(11.2)
n/a
Weighted average Shares
outstanding3
599,380
599,624
-
-
1 In pesos
2 in pesos, one ADR equals to twelve
shares
3 In thousands of shares
The net controlling interest income for 4Q22 was $79.5 million,
representing $0.13 pesos of earnings per share, compared with a net
controlling interest income of $640.8 million, which represented a
$1.07 pesos of earnings per share in 4Q21. This decrease is mainly
attributed to lower operating results and higher financial
expenses.
EBITDA
In millions of pesos
4Q22
4Q21
Change
$
$
$
%
Net controlling interest income
79.5
640.8
(561.3)
(87.6)
Income tax expense (benefit)
(110.7)
72.7
(183.4)
(252.2)
Result in associates
(21.5)
(45.7)
24.2
(53.0)
Net finance (income) expense
359.3
(167.6)
526.9
(314.3)
Depreciation and amortization
388.0
349.7
38.2
10.9
EBITDA
694.6
850.0
(155.4)
(18.3)
EBITDA Margin (%)
2.9%
4.0%
-
-
Net revenues
23,633.8
21,251.5
2,382.3
11.2
EBITDA in 4Q22 reached $694.6 million representing an EBITDA
margin of 2.9%, compared to an EBITDA of $850.0 million in 4Q21,
with an EBITDA margin of 4.0%.
ACCUMULATED RESULTS
NET SALES BY GEOGRAPHY
In millions of pesos
2022
2021
Change
$
$
$
%
Net Sales
98,890.7
81,699.1
17,191.6
21.0
Net sales in Mexico
73,653.2
61,338.5
12,314.8
20.1
Net sales in the U.S.
25,237.4
20,360.6
4,876.8
24.0
NET SALES BY SEGMENT
In millions of pesos
2022
2021
Change
$
$
$
%
Net Sales
98,890.7
81,699.1
17,191.6
21.0
Poultry
84,373.5
71,647.7
12,725.7
17.8
Other
14,517.2
10,051.3
4,465.9
44.4
NET VOLUME SOLD BY SEGMENT
In metric tons
Change
2022
2021
Volume
%
Total sales volume:
2,358,390
2,318,049
40,340.1
1.7
Poultry
1,764,623
1,769,071
(4,448.7)
(0.3)
Others
593,767
548,978
44,788.8
8.2
In 2022, net sales totaled $98,890.7 million; $17,191.6 million
or 21.0% more than the $81,699.1 million reported in the same
period of 2021.
In 2022, sales of our U.S. operations represented 25.5% of our
total sales, compared with 24.9% in 2021.
OPERATING RESULTS
In millions of pesos
2022
2021
Change
$
$
$
%
Cost of Sales
82,038.0
68,356.7
13,681.3
20.0
Gross Profit
16,852.7
13,342.4
3,510.3
26.3
Total SG&A
8,480.4
7,133.3
1,347.2
18.9
Other Income (expense)
38.8
(322.8)
361.5
(112.0)
Operating Income
8,411.0
5,886.4
2,524.6
42.9
Net Financial Income
(320.7)
849.9
(1,170.5)
(137.7)
Income Tax
2,007.2
1,806.0
201.2
11.1
Net Income
6,083.1
4,930.3
1,152.8
23.4
Non-controlling interest
(69.1)
(131.5)
62.3
(47.4)
Net controlling interest Income
6,152.2
5,061.7
1,090.5
21.5
In the 2022, the cost of sales totaled $82,038.0 million;
$13,681.3 million or 20.0% higher than $68,356.7 million reported
in the 2021.
As a result, we reached a gross profit of $16,852.7 million and
a gross margin of 17.0% in 2022, when compared to $13,342.4 million
of gross profit and a gross margin of 16.3% reached in the same
period of 2021.
Total SG&A in 2022 were $8,480.4 million; $1,347.2 million
or 18.9% higher than the $7,133.3 million reported in 2021. Total
SG&A expenses as a percentage of net sales represented 8.6% in
2022 and 8.7% in 2021.
In 2022 we had other income of $38.8 million, compared with
other expenses of $322.8 million reported in 2021.
Operating income in 2022 was $8,411.0 million, which represents
an operating margin of 8.5%, an increase from an operating income
of $5,886.4 million with an operating margin of 7.2% in 2021.
We had Net financial expenses in 2022 of $320.7 million which
compares to a Net financial income of $849.9 million in 2021.
Total taxes were $2,007.2 million as of December 31st, 2022.
These include $1,667.4 million of income tax and $339.9 million of
deferred income taxes. Those figures compare to an income tax of
$1,790.6 million and deferred income taxes of $15.4 million in
2021.
After Non-controlling interest, all the above resulted in a Net
controlling interest income of $6,152.2 million or 6.2% margin in
2022, which represents $10.26 pesos of earnings per share; while in
the 2021 the Net controlling interest income totaled $5,061.7
million, 5.1% margin and $8.44 pesos of income per share.
EBITDA
In millions of pesos
2022
2021
Change
$
$
$
%
Net controlling interest profit
6,152.2
5,061.7
1,090.5
21.5
Income tax expense (benefit)
2,007.2
1,806.0
201.2
11.1
Result in associates
(69.1)
(131.5)
62.3
(47.4)
Net finance (income) expense
320.7
(849.9)
1,170.5
(137.7)
Depreciation and amortization
1,505.2
1,441.8
63.4
4.4
EBITDA
9,916.2
7,328.2
2,588.0
35.3
EBITDA Margin (%)
10.0%
9.0%
-
-
Net revenues
98,890.7
81,699.1
17,191.6
21.0
EBITDA in 2022 reached $9,916.2 million, representing an EBITDA
margin of 10.0%, compared to an EBITDA of $7,328.2 million in 2021,
with an EBITDA margin of 9.0%.
BALANCE SHEET
BALANCE SHEET DATA
In millions of pesos
Dec. 31, 2022
Dec. 31, 2021
Change
$
$
$
%
TOTAL ASSETS
72,236.1
65,988.8
6,247.3
9.5
Cash and cash equivalents
20,049.5
20,777.0
(727.5)
(3.5)
Accounts receivable
5,860.8
5,108.5
752.4
14.7
TOTAL LIABILITIES
19,193.0
17,704.7
1,488.3
8.4
Accounts payable
6,841.2
10,200.7
(3,359.4)
(32.9)
Short-term debt
1,181.5
1,993.9
(812.4)
(40.7)
Long-term debt
3,010.5
-
3,010.5
-
TOTAL STOCKHOLDERS’ EQUITY
53,043.0
48,284.1
4,759.0
9.9
Capital stock
1,174.4
1,174.4
(0.0)
(0.0)
Cash and equivalents as of December 31st, 2022, totaled
$20,049.5 million vs $20,777.0 million as of December 31st,
2021.
Total debt as of December 31st, 2022, was $4,192.0 million,
compared to $1,993.9 million reported as of December 31st,
2021.
Net cash as of December 31st, 2022, was $15,857.4 million,
compared to net cash of $18,783.1 million as of December 31st,
2021.
CAPITAL EXPENDITURES
In millions of pesos
2022
2021
Change
$
$
$
%
Capital Expenditures
4,666.2
3,479.5
1,186.7
34.1
Total CAPEX for 2022 was $4,666.2 million vs $3,479.5 million in
2021, mainly allocated toward organic growth and productivity
projects across all our facilities.
STOCK INFORMATION
As of December 31, 2022
Total Shares
600,000,000
Total free float
12.32%
Market cap (millions of pesos)
$50,706
Source: Yahoo Finances
SHARE PRICE
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
December
84.51
81.66
84.51
51.03
48.97
50.99
November
86.31
80.84
82.64
53.44
49.17
51.11
October
81.40
77.77
80.91
49.06
46.25
49.06
September
80.00
76.81
77.86
48.13
45.78
46.03
August
79.98
75.34
79.97
48.05
43.97
47.33
July
76.56
69.97
76.56
45.18
40.56
45.18
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
ANALYST COVERAGE
Institution
Analyst name
E-mail
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 $19.51 per USD,
which corresponds to the rate at the close of December 31st, 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
December 31,
December 31,
In million pesos
2022
2022
2021*
TOTAL ASSETS
$
3,702.5
72,236.1
65,988.8
Total current assets
2,047.9
39,955.0
37,845.6
Cash and cash equivalents
1,027.7
20,049.5
20,777.0
Total accounts receivable
300.4
5,860.8
5,108.5
Inventories
595.0
11,607.6
9,145.6
Other current assets
124.9
2,437.1
2,814.6
Total non current assets
1,654.6
32,280.5
28,143.2
Net property, plant and equipment
1,263.0
24,640.5
21,763.4
Other non current Assets
391.6
7,640.0
6,379.8
TOTAL LIABILITIES
$
983.8
19,193.0
17,704.7
Total current liabilities
541.2
10,558.4
12,835.3
Notes payable to banks
60.6
1,181.5
1,993.9
Accounts payable
350.7
6,841.2
10,200.7
Other taxes payable and other accruals
130.0
2,535.7
640.7
Total long-term liabilities
442.6
8,634.6
4,869.4
Long-term debt
154.3
3,010.5
-
Other non current liabilities
50.1
976.5
1,027.9
Deferred income taxes
238.2
4,647.5
3,841.5
TOTAL STOCKHOLDERS' EQUITY
$
2,718.8
53,043.0
48,284.1
Capital stock
60.2
1,174.4
1,174.4
Commission in shares issued
21.2
414.1
414.1
Repurchased shares
-
-
-
Retained earnings
2,573.1
50,201.5
45,038.6
Others accounts
43.4
846.3
1,179.2
Non controlling interest
20.8
406.7
477.7
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
3,702.5
72,236.1
65,988.8
*Audited
CONSOLIDATED STATEMENT OF INCOME Fourth
Quarter Results, ended December 31st: -Unaudited-
U.S. Dollar
In millions pesos
2022
2022
2021*
Net sales
$
1,211.4
23,633.8
21,251.5
Cost of sales
1,080.9
21,089.3
18,670.6
Gross profit
130.4
2,544.5
2,580.9
SG&A
115.0
2,243.8
2,002.2
Other income (expenses), net
0.3
5.9
(78.5
)
Operating income
15.7
306.6
500.2
Net finance income
(18.4
)
(359.3
)
167.6
Income tax
(5.7
)
(110.7
)
72.7
Net Income
$
3.0
58.0
595.1
Non-controlling interest
(1.10
)
(21.5
)
(45.7
)
Net controlling interest profit
4.07
79.5
640.8
Basic and diluted earnings per share
0.01
0.13
1.07
Basic and diluted earnings per ADR
0.08
1.59
12.82
Weighted average Shares outstanding1
599,380
599,380
599,624
EBITDA Result
$
35.6
694.6
850.0
Gross margin
10.8
%
10.8
%
12.1
%
Operating margin
1.3
%
1.3
%
2.4
%
Net margin
0.3
%
0.2
%
2.8
%
EBITDA margin
2.9
%
2.9
%
4.0
%
1 In thousands * Audited
CONSOLIDATED STATEMENT OF
INCOME Annual Results -Unaudited-
U.S. Dollar
In millions pesos
2022
2022
2021*
Net sales
$
5,068.7
98,890.7
81,699.1
Cost of sales
4,204.9
82,038.0
68,356.7
Gross profit
863.8
16,852.7
13,342.4
Selling, general and administrative expenses
434.7
8,480.4
7,133.3
Other income (expenses), net
2.0
38.8
(322.8
)
Operating income
431.1
8,411.0
5,886.4
Net finance income
(16.44
)
(320.7
)
849.88
Income tax
102.9
2,007.2
1,806.0
Net income
$
311.8
6,083.1
4,930.3
Non-controlling interest
(3.54
)
(69.1
)
(131.5
)
Net controlling interest profit
315.3
6,152.2
5,061.7
Basic and diluted earnings per share
0.53
10.26
8.44
Basic and diluted earnings per ADR
6.31
123.2
101.28
Weighted average Shares outstanding1
599,380
599,380
599,730
EBITDA Result
$
508.3
9,916.2
7,328.2
Gross margin
17.0
%
17.0
%
16.3
%
Operating margin
8.5
%
8.5
%
7.2
%
Net margin
6.2
%
6.2
%
6.0
%
EBITDA margin
10.0
%
10.0
%
9.0
%
1 In thousands * Audited
CONSOLIDATED STATEMENT OF CASH
FLOWS In million of pesos -Unaudited-
U.S. Dollar
December 31,
2022
2022
2021*
NET MAJORITY INCOME BEFORE INCOME TAX
$
414.7
8,090.3
6,737.9
ITEMS RELATING TO INVESTING ACTIVITIES:
85.4
1,666.8
1,570.9
Depreciation and others
98.2
1,915.1
1,807.2
Income (loss) on sale of plant and equipment
3.5
69.1
95.3
Other Items
(16.3
)
(317.4
)
(331.6
)
NET CASH GENERATED FROM NET INCOME BEFORE TAXES
500.1
9,757.1
8,308.8
CASH GENERATED OR USED IN THE OPERATION:
(202.6
)
(3,952.1
)
(120.1
)
Decrease (increase) in accounts receivable
(36.1
)
(704.6
)
(811.6
)
Decrease (increase) in inventories
(145.4
)
(2,836.0
)
(732.3
)
Increase (decrease) in accounts payable
(127.6
)
(2,490.1
)
3,988.3
Other Items
106.5
2,078.6
(2,564.5
)
NET CASH FLOW FROM OPERATING ACTIVITIES
297.5
5,805.0
8,188.7
NET CASH FLOW FROM INVESTING ACTIVITIES
(215.9
)
(4,211.8
)
(2,382.7
)
Acquisition of property, plant and equipment
(238.2
)
(4,647.7
)
(3,479.5
)
Proceeds from sales of property plant and equipment
4.3
83.3
29.8
Other Items
18.1
352.5
1,067.1
CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN
FINANCING ACTIVITIES
81.7
1,593.2
5,806.0
Net cash provided by financing activities:
(115.4
)
(2,250.8
)
(4,341.3
)
Proceeds from loans
239.7
4,676.0
1,709.1
Principal payments on loans
(127.0
)
(2,477.9
)
(2,267.3
)
Dividends paid
(50.4
)
(983.0
)
(853.6
)
Other items
(177.7
)
(3,466.0
)
(2,929.5
)
Net increase (decrease) in cash and equivalents
(33.7
)
(657.7
)
1,464.7
Cash and investments at the beginning of year
$
1,061.4
20,707.1
19,242.4
CASH AND INVESTMENTS AT END OF PERIOD
$
1,027.7
20,049.5
20,707.1
*Audited
DERIVATIVES POSITION REPORT
Fourth Quarter 2022 Thousands of Mexican Pesos, as
of December 31, 2022 TYPE OF FINANCIALINSTRUMENT
OBJECTIVE NOTIONAL VALUE OF THE RELATED
COMMODITY REASONABLE VALUE AMOUNTS DUEBY YEAR
GUARANTIESREQUIRED 4Q-2022 3Q-2022
4Q-2022 3Q-2022 Forward Vanilla y KO Fwd Hedge
$
190,950
$
19.51
$
20.13
$
-136,757
$
-48,982
95% in 2023and 5% in 2024 The deals considerthe possibility of
margin callsbut not another kindof guarantee Futures for corn,
soybean meal,soybean oil and natural gas Hedge
$
442,441
CORN CORN
$
16,178
$
12,462
100% in 2023 In USD per Bushel In USD per Bushel
month
price month price Mar-23
$
6.785
May-23
$
6.780
Jul-23
$
6.718
Sep-23
$
6.270
Dec-23
$
6.108
Dec-22
$
6.775
SOYBEAN MEAL SOYBEAN MEAL In USD per ton In USD per
ton
month price month price Mar-23
$
471.0
May-23
$
461.0
Jul-23
$
454.3
Aug-23
$
443.1
Sep-23
$
428.2
Oct-23
$
413.6
Dec-23
$
411.6
Dec-22
$
403.0
SOYBEAN OIL SOYBEAN OIL In US cents per pound In US
cents per pound
Month Price Month Price
Mar-23
$
64.07
May-23
$
63.94
Jul-23
$
63.56
Dec-22
$
61.56
NATURAL GAS NATURAL GAS In USD/MM BTU In USD/MM BTU
Month Price Month Price Nov-22
$
6.77
Dec-22
$
7.07
Jan-23
$
7.25
Feb-23
$
4.475
Feb-23
$
6.94
Options of Corn Hedge
$
890,801
CORN CORN
$
25,296
$
37,181
95% in 2023and 5% in 2024 In USD per Bushel In USD per Bushel
month price month price Mar-23
$
6.785
May-23
$
6.780
Jul-23
$
6.718
Sep-23
$
6.270
Dec-23
$
6.108
Dec-22
$
6.775
Mar-24
$
6.180
Mar-23
$
6.840
Options of soybean meal Hedge
$
950,696
SOYBEAN MEAL SOYBEAN MEAL
$
109,976
$
12,013
89% in 2023and 11% in 2024 In USD per ton In USD per ton
month price month price Mar-23
$
471.0
May-23
$
461.0
Jul-23
$
454.3
Aug-23
$
443.1
Sep-23
$
428.2
Oct-23
$
413.6
Dec-22
$
403.0
Dec-23
$
411.6
Jan-23
$
401.3
Jan-24
$
408.8
Mar-23
$
397.2
Mar-24
$
402.9
May-23
$
395.0
Options of Soybean oil Hedge
-$
3,750
SOYBEAN OIL
$
-
$
-
100% in 2023 In US cents per pound Mes Precio Feb-23
$
64.07
-The total financial instruments do not exceed 5% of total
assets as of December 31, 2022. -The notional value represents the
net position as of December 31, 2022 at the exchange rate of
Ps.19.51 per one dollar.
-A negative value means an unfavorable
effect for the Company. Fourth Quarter 2022 Thousands
of Mexican Pesos, as of December 31, 2022
PROBABLE SCENARIO
TYPE OF FINANCIALINSTRUMENT REASONABLEVALUE VALUE
OF THE RELATED COMMODITY EFFECT ON THEINCOME 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
-$
136,757
$
19.02
$
20.00
$
20.48
Direct
-$
229,887
-$
43,623
$
49,506
-5
%
5
%
10
%
-5
%
5
%
10
%
Futures of Corn: (2)
$
16,178
$
6.45
$
7.12
$
7.46
The effect willmaterialize as theinventory is consumed
-$
5,945
$
38,301
$
60,424
Futures of Soybean Meal: (2)
$
447.5
$
494.6
$
518.1
Futures for Soy Oil (2)
$
60.9
$
67.3
$
70.5
Futures for Natural Gas (2)
$
4.3
$
4.7
$
4.9
Options for Corn
$
25,296
$
6.45
$
7.12
$
7.46
-$
16,930
$
67,521
$
109,747
Options of Soybean Meal
$
109,976
$
447.5
$
494.6
$
518.1
$
62,438
$
157,513
$
205,050
Options of Soybean Oil
$
-
$
60.87
$
67.27
$
70.48
$
125
$
-
$
-
(1) The reference value is the exchange rate of Ps. $19.51
per USD as of December 31, 2022. (2) The reference values are:
future of corn Mar 2023, $6.7850 USD/bushel, the future of soybean
meal Mar 2023, $471.00 USD/ton, the future of soybean oil Mar 2023,
$64.07 usd cts / pound and the future of natural gas Feb 2023,
$4.48 usd/ MM BTU. 'All the evaluations are performed according
with the corresponding future, here only the first month futures
are shown. (3) The Company has credit lines with the majority of
its counterparts, so that the effect in cash flow is lower than the
amount shown.
-A negative value means an unfavorable effect for
the Company. Fourth Quarter 2022 Thousands of Mexican
Pesos, as of December 31, 2022
STRESS SCENARIO
TYPE OF FINANCIALINSTRUMENT REASONABLEVALUE VALUE
OF THE RELATED COMMODITY EFFECT ON THEINCOME STATEMENT
EFFECT ON THE CASH FLOW Reference Value
-50
%
-25
%
25
%
50
%
-50
%
-25
%
25
%
50
%
Forward Vanilla y KO Fwd -$ 136,757
$
9.75
$
14.63
$
24.39
$
29.26
Direct -$ 1,999,432 -$ 1,068,092
$
547,632
$
1,228,504
CONFERENCE CALL INFORMATION
The Company will host its fourth quarter 2022 earnings call, on
Friday, February 10th, 2023. The earnings call will take place at
11:00 am Central Time (12:00 pm ET).
Mexico (Main number):
55 4742 9168
Mexico (Altern number):
55 4742 9169
USA/ Canada:
+1 (888) 207 2216
International:
+1 (800) 750 9038
Access Code: 2603
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/20230209005511/en/
IR contact information: maria.jaquez@bachoco.net
andrea.guerrero@bachoco.net T. +52(461)618 3555
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