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 January 31, 2008
BACHOCO INDUSTRIES
(Translation of Registrant's name into English)
Avenida Tecnologico 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 |_|
(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__.)
Industrias Bachoco Announces Fourth Quarter 2007 and Full Year Results
Celaya, Gto., Mexico, - January 31, 2008 - 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 December 31, 2007. All figures have been prepared
in accordance with Mexican GAAP and are stated in constant Mexican pesos as of
December 31, 2007.
Highlights:
o Bachoco recorded sales of Ps. 18,208.8 during 2007, 17.2% above the Ps.
15,537.5 million reached in 2006. Fourth quarter sales increased 11.0% as
compared with the same quarter of 2006.
o Bachoco achieved EPS of Ps. 2.13 (US$2.34 per ADS) for 2007, compared to
EPS of Ps. 1.54 (US$1.70 per ADS) for 2006. Fourth quarter EPS were Ps.
0.30 (US$ 0.33 per ADS) versus Ps. 0.19 (US$ 0.21 per ADS).
o In 2007, the company increased its facilities by adding two new complexes
as a result of the agreements reached with three different companies.
CEO's Comments:
Cristobal Mondragon, Bachoco's CEO, stated, "Fourth quarter results were again
affected, as it occurred during the whole year, by the increase in our costs due
to the rising pressure of raw materials worldwide. Nonetheless, we sold the
highest volume of chicken, our main product line, in a single quarter
historically. Total sales increased 11.0% during the quarter, we sold our entire
production volume for our main business lines and had an important improvement
in the table eggs business.
"Overall, 2007 was a challenging year. Despite the increase in raw materials, we
managed to improve our operational results, recording an increase of 5.3% from
last year.
"The Company successfully achieved these results under a difficult scenario,
mainly because of its efficiency, productivity and service improvement efforts,
which allowed us to obtain positive results.
"At the end of the year, the Company announced a business arrangement with
"AGRA", a table egg company located in northern Mexico, which will contribute to
reinforcing our presence in that region with branded table eggs," concluded Mr.
Mondragon.
FOURTH QUARTER 2007 RESULTS
Net Sales
Net sales for the quarter reached Ps. 4,602.6 million, 11.0% above the Ps.
4,145.5 million reported in 4Q06. This increase was mainly driven by the 7.7%
increase in chicken sales, 25.9% in table eggs sales, and 17.0% in swine sales,
which, in turn, were partially offset by a 2.1% decrease in balanced feed sales.
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Net Sales by Product Line 4Q07 (%) 4Q06 (%)
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CHICKEN 75.7 78.0
EGGS 10.6 9.4
BALANCED FEED 7.7 8.8
SWINE AND OTHER LINES 6.0 3.8
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TOTAL COMPANY 100.0 100.0
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Operating Results
Bachoco's fourth quarter gross margin of 17.0% was lower than the 26.2% in 4Q06.
The decrease is mainly attributed to the increase in raw materials costs. The
Company's operating margin dropped to 4.4%, from the 13.1% margin in the same
2006 quarter. EBITDA during the quarter totaled Ps. 347.6 million.
Taxes
Taxes recognized by the Company during the quarter were Ps. 70.8 million.
Net Income
Net income for 4Q07 was Ps. 180.3 million, or Ps. 0.30 per share (US$0.33 per
ADS), compared to net income of Ps.113.3 million, or Ps.0.19 per share (US$0.21
per ADS) reported in the same 2006 period. During the fourth quarter of 2006,
the Company recognized a special charge of Ps. 335.8 million, which did not
affect cash flow.
RESULTS BY BUSINESS SEGMENT
Chicken
Chicken sales rose 7.7% during 4Q07 as a result of a 10.4% increase in volume,
which was partially offset by 2.5% decrease in prices. During this quarter, the
demand for chicken was strong and prices for chicken were lower than expected.
The volume increase was driven by added capacity and productivity improvements.
Table Eggs
Sales of table eggs grew stronger by 25.9%, while volumes increased 4.1% and the
price jumped 20.9% from the same last year's quarter.
Balanced Feed
Balanced feed sales and volume decreased during this quarter by 2.1% and 12.1%,
respectively, when compared to 4Q06. Pricing, however, rose 11.3% driven by
worldwide pressure on grains and other raw materials.
Swine and Other Lines
Sales of swine and other lines increased 90.4% in the quarter. This increase was
mainly the result of turkey sales and a 22.3% increase in swine volume.
FULL YEAR 2007
Net Sales
Net sales for 2007 were 17.2% higher at Ps. 18,208.8 million, when compared to
Ps. 15,537.5 million reported in 2006. Sales rose mainly as chicken sales grew
17.2%, table eggs increased 22.2%, balanced feed rose 4.2% and swine increased
24.3%.
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Net Sales by Product Line 2007 (%) 2006 (%)
------------------------------------------------------------------
CHICKEN 77.6 77.6
EGGS 9.6 9.2
BALANCED FEED 8.0 9.0
SWINE AND OTHER LINES 4.8 4.2
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TOTAL COMPANY 100.0 100.0
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Operating Results
Bachoco's gross margin reached 20.5% during the year, below the 22.4% gross
margin reported in 2006. The 17.2% increase in sales was partially offset by a
20.1% increase in the cost of sales. Bachoco's operating margin was 8.2% lower
than the 9.1% of the same 2006 period. EBITDA during the year reached Ps.
2,059.2 million, a 5.5% increase over 2006.
Taxes
The taxes recognized by the Company during the year were Ps.386.9 million.
Net Income
Net income for the year ended December 31, 2007, was Ps. 1,278.3 million.
Earnings per share reached Ps. 2.13, (U.S. $2.34 per ADS), compared to Ps. 1.54
(U.S. $1.70 per ADS) reported in 2006.
Balance Sheet
The Company maintained a healthy financial structure. Liquidity remained solid
with cash and cash equivalents at Ps. 3,040.0 million as of December 31, 2007.
Debt was Ps. 109.6 million as of December 31, 2007.
Capex during the year was Ps. 861.7 million.
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. The Company is
the largest poultry company in Mexico, with over 700 production and distribution
facilities currently organized in nine complexes throughout the country.
Bachoco's main business lines are chicken, eggs, swine and turkey, 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 BMV (Bachoco B) and on the NYSE (IBA).
For more information, please visit Bachoco's website at
http://www.bachoco.com.mx or contact our IR department.
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.
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INDUSTRIAS BACHOCO, S.A.B. DE C.V. AND SUBSIDIARIES
Condensed Consolidated Statements of Income
(millions of constant pesos as of December 31, 2007, and millions
of U.S. dollars, except per share data)
----------------------------------------------------------------------------------------------------------------------------------
Fourth Quarter Full Year
----------------------------------------------------------------------------------------------------------------------------------
Dec 31 Dec 31 Dec 31 Dec 31 Dec 31 Dec 31
2007(1) 2007 2006 2007(1) 2007 2006
----------------------------------------------------------------------------------------------------------------------------------
Net Sales US 422 Ps 4,603 Ps 4,145 US 1,668 Ps 18,209 Ps 15,537
Cost of Sales 350 3,821 3,058 1,326 14,478 12,053
--------------------------------------- ---------------------------------------
Gross Profit 72 782 1,087 342 3,731 3,485
Selling, general and administrative expenses 53 581 542 205 2,243 2,072
--------------------------------------- ---------------------------------------
Operating Income 18 201 545 136 1,488 1,412
Comprehensive
Financing Cost
(income)
Interest Expense
(Income) (2) (22) (59) (16) (177) (183)
Foreign Exchange
Loss (gain) 0 2 10 0 3 (41)
Gain from Monetary
Position 3 30 31 7 76 79
--------------------------------------- ---------------------------------------
Total Comprehensive Financing Cost (income) 1 10 (18) (9) (98) (145)
Other Income Net 5 60 (6) 7 80 13
Income before
Provisions for
Income Tax,
Employee Profit
Sharing and
Minority Interest 23 250 557 153 1,666 1,570
Provisions for:
Income Tax, Asset Tax (1) (7) (75) (12) (132) (242)
Deferred Income Taxes (6) (64) (370) (23) (255) (402)
--------------------------------------- ---------------------------------------
Income before Minority Interest 16 180 113 117 1,280 926
Minority Interest 0 1 1 (0) (1) (1)
--------------------------------------- ---------------------------------------
Net Income 17 180 113 117 1,278 925
Weighted Average Shares Outstanding (Thousand) 600,000 600,000 600,000 600,000 600,000 599,571
Net Income per Share 0.33 0.30 0.19 2.34 2.13 1.54
Dividend per Share - - - 0.05 0.60 0.62
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(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.9170 per U.S. dollar, the
noon buying rate at December 31, 2007.
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INDUSTRIAS BACHOCO, S.A.B. DE C.V. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(millions of constant pesos as of December 31, 2007,
and millions of U.S. dollars)
----------------------------------------------------
Dec 31 Dec 31 Dec 31
2007(1) 2007 2006
--------------------------------------------------------------------------------------------------------------
ASSETS
Current Assets:
Cash and Cash Equivalents US 278 Ps 3,040 Ps 3,588
Accounts Receivable less Allowance for Doubtful
Accounts 66 725 541
Inventories 387 4,220 2,835
Other Current Assets 49 534 390
Total Current Assets 780 8,520 7,354
Net Property, Plant and Equipment 929 10,140 9,888
Other Non Current Assets 32 354 340
Total Non Current Assets 961 10,494 10,228
TOTAL ASSETS 1,742 19,015 17,582
----------------------------------------------------
LIABILITIES
Current Liabilities:
Notes Payable to Banks 5 59 10
Trade Accounts Payable 104 1,138 851
Other Accrued Liabilities 29 320 300
Total Current Liabilities 139 1,517 1,161
Long-Term Debt 5 51 36
Labor Obligations 5 53 79
Deferred Income Taxes and Others 214 2,333 2,185
Total Long-Term Liabilities 223 2,437 2,300
TOTAL LIABILITIES 362 3,954 3,461
----------------------------------------------------
STOCKHOLDERS' EQUITY
Capital stock 212 2,314 2,298
Premium in Public Offering of Shares 60 660 745
Retained Earnings 1,435 15,665 18,901
Net Income for the Year 117 1,278 907
Deficit from Restatement of Stockholders' Equity (342) (3,732) (3,759)
Reserve for Repurchase of Shares 22 244 160
Minimum Seniority Premium Liability Adjustment - - (1)
Effect of Deferred Income Taxes (130) (1,415) (5,176)
Total Majority Stockholders' Equity 1,375 15,014 14,076
Minority Interest 4 47 45
TOTAL STOCKHOLDERS' EQUITY 1,380 15,061 14,121
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,742 19,015 17,582
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(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.9170 per U.S. dollar, the
noon buying rate at December 31, 2007.
--------------------------------------------------------------------------------
INDUSTRIAS BACHOCO, S.A.B. DE C.V. AND SUBSIDIARIES
Condensed Consolidated Statements of Changes in Financial Position
(millions of constant pesos as of December 31, 2007,
and millions of U.S. dollars)
-------------------------------------------------
Dec 31 Dec 31 Dec 31
2007(1) 2007 2006
------------------------------------------------------------------------------------------------------------
Operating Activities:
Net Income US$ 117 Ps. 1,280 Ps. 926
Adjustments to Reconcile Net Income to Resources
Provided by Operating Activities:
Depreciation and Others 52 570 539
Changes in Operating Assets and Liabilities (126) (1,371) (202)
Deferred Income Taxes 14 151 369
Resources Provided by Operating Activities 58 630 1,633
-------------------------------------------------
Financing Activities:
Increase of Capital Stock 0 0 0
Proceeds from Long-term Debt - - -
Proceeds from Short-term Debt 12 135 44
Repayment of Long-term Debt and Notes Payable (5) (59) (149)
Decrease in Long-term Debt in Constant Pesos (1) (12) (6)
Cash Dividends Paid (33) (362) (378)
Resources Provided by (Used in) Financing Activities (27) (298) (489)
-------------------------------------------------
Investing Activities:
Acquisition of Property, Plant and Equipment (79) (862) (961)
Minority Interest 0 1 (1)
Others (1) (16) (17)
Resources Used in Investing Activities (80) (876) (979)
-------------------------------------------------
Net (Decrease) Increase in Cash
and Cash Equivalents (50) (544) 165
-------------------------------------------------
Cash and Cash Equivalents at Beginning of Period 328 3,584 3,420
Cash and Cash Equivalents at End of Period US$ 278 Ps. 3,040 Ps. 3,585
--------------------------------------------------------------------------------
(1) Peso amounts have been translated into U.S. dollars, solely for the
convenience of the reader, at the rate of Ps. 10.9170 per U.S. dollar, the
noon buying rate at December 31, 2007.
--------------------------------------------------------------------------------
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: January 31, 2008 By /s/ Daniel Salazar Ferrer, CFO
------------------------------