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 July 24, 2008
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__.)
Industrias
Bachoco Announces Second Quarter 2008 Results
Celaya,
Mexico, - July 24, 2008 - Industrias Bachoco S.A.B. de C.V.
(“Bachoco” or “the Company”) (NYSE: IBA; BMV: Bachoco), Mexico’s leading
producer and processor of poultry products, today announced its unaudited
results for the second quarter ended June 30, 2008. All figures have been
prepared in accordance with Mexican GAAP. In line with the Mexican Accounting
Principles, 2008 data is presented in nominal pesos while that of 2007
is
presented in constant pesos as of December 31, 2007.
Highlights:
|
·
|
The
Company recorded sales of Ps. 4,987.5 million during the second
quarter of
2008, 3.0% above the Ps. 4,842.1 million reached during the same
period
last year.
|
|
·
|
Bachoco
sales increased in most of its business lines: chicken, eggs, swine
and
other.
|
|
·
|
The
company reached positive operating results during the quarter,
with an
operating margin of 6.2% and EBIDTA margin of 9.2%.
|
|
·
|
EPS
were Ps. 0.32 (US$ 0.38 per ADS) versus Ps. 0.80 (US$ 0.93 per
ADS)
reached in 2Q07.
|
CEO’s
Comments:
Cristobal
Mondragon, Bachoco’s CEO, stated, “Second quarter results continued largely
affected by the global trend of higher raw materials prices, which continued
to
affect the cost of grain and soybean meal. The cost of these ingredients
rose
even higher during this quarter and reached record levels. These increases
coupled with a sluggish economic condition in our markets that did not
allow us
to fully transfer cost increases into chicken prices, and continued to
affect
the Company’s results.
“Despite
said adverse difficulties, we were able to deliver positive results given
our
focus to reinforce productivity, and optimize our product mix, while keeping
the
best level of service for our customers.
“Our
commitment will continue to satisfy
your customers' needs by providing high quality products, delivering
satisfactory results to our shareholders and continuing
to implement our growth plans.” concluded Mr. Mondragon.
Releases
during the quarter:
| · |
On
April 16
the Company announced a partial fire at the secondary process
of its plant
located in Monterrey in northern Mexico.
|
| · |
On
May 29
the Company announced the construction of new farms to be built
in the
south of México.
|
To
see
the complete version of these releases, please visit our web page. http://www.bachoco.com.mx
SECOND
QUARTER 2008 RESULTS
Net
Sales
Net
sales
for the quarter reached Ps. 4,987.5 million, 3.0% above the Ps. 4,842.1 million
reported in 2Q07. This increase was mainly driven by the 1.3% increase in
chicken sales, 15.9% in table eggs sales and 61.4% in swine sales, which
was
partially offset by 7.2% decrease in balanced feed sales.
|
Net Sales
|
2Q08 (%)
|
2Q07 (%)
|
|||||
|
CHICKEN
|
77.8
|
79.1
|
|||||
|
EGGS
|
9.4
|
8.3
|
|||||
|
BALANCED
FEED
|
7.4
|
8.2
|
|||||
|
SWINE
|
1.1
|
0.7
|
|||||
|
OTHER
LINES
|
4.3
|
3.7
|
|||||
|
TOTAL
COMPANY
|
100.0
|
100.0
|
|||||
Operating
Results
Bachoco’s
second quarter gross margin was 17.9%, lower than 23.1% reached in 2Q07.
The
decrease is mainly attributed to the constant increases in raw materials
cost.
The Company’s operating profit was Ps. 311.6 million lower than Ps. 559.6
million reached in 2Q07. EBITDA for the quarter was Ps. 460.3 million,
with a
margin of 9.2%, lower than Ps. 698.5 million reached in the same period
of
2007.
Taxes
Taxes
recognized by the Company during the second quarter were Ps. 54.2
million.
Net
Income
Net
income for second quarter 2008 was Ps. 194.4 million, or Ps. 0.32 per share
(US$0.38 per ADS), compared to net income of Ps. 479.2 million, or Ps. 0.80
per
share (US$0.93 per ADS) reported in the same 2007 period.
RESULTS
BY BUSINESS SEGMENT
Chicken
Chicken
sales rose 1.3% during 2Q08 as a result of 1.4% increase in price while volume
sold remained at the same level of 2Q07. At the beginning of the quarter,
chicken prices remained at a good level, but the situation changed towards
the
end of the quarter, as chicken prices dropped lower than expected.
Table
Eggs
During
this quarter sales of table eggs were stronger, increasing by 15.9% from
the
same quarter last year, as a result of 23.8% increase in egg prices, due
partially to a better balance in the market supply, as well as a better
product
mix of the company’s products, with
both issues contributing
to partially offsetting a 6.4% decrease in volume.
Balanced
Feed
Sales
of
Balanced Feed declined 7.2% when compared with 2Q07, despite a 16.9% price
increase. Volume of balance feed sold dropped 20.7%, as a result of the
large
period of higher costs in our main raw material.
Swine
Sales
of
swine increased 61.4.0% from the previous year, the strong increase stems
from a
23.8% volume gain and a 30.4% increase in swine prices, as the Mexican market’s
swine oversupply softened.
Other
Lines
Sales
of
other lines rose 21.1% during 2Q08, mainly as a result of increases in sales
of
turkey and other lines.
FIRST
HALF OF 2008
Net
Sales
Net
sales
for the first half of 2008 amounted to Ps. 9,730.8 million, 9.2% above
Ps.
8,913.0 million reported in 1H07. The increase was mainly driven by the
8.1%
increase in chicken sales, 20.8% in table eggs sales and 35.2% in swine
sales,
which was partially offset by 0.6% decrease in sales of balanced
feed.
|
Net Sales
|
1H 2008
(%)
|
1H 2007
(%)
|
|||||
|
CHICKEN
|
77.0
|
77.8
|
|||||
|
EGGS
|
10.3
|
9.4
|
|||||
|
BALANCED
FEED
|
7.6
|
8.3
|
|||||
|
SWINE
|
1.0
|
0.8
|
|||||
|
OTHER
LINES
|
4.1
|
3.8
|
|||||
|
TOTAL
COMPANY
|
100.0
|
100.0
|
|||||
Operating
Results
Bachoco’s
gross margin for the first half was 17.7%, lower than 21.0% in 1H07. The
decrease is directly attributed to the standing increases in raw materials
costs. The Company’s operating profit was Ps. 556.0 million lower than Ps. 786.8
million reached in 1H07. EBITDA was Ps. 853.7 million; lower than Ps. 1,066.4
million in the same period of 2007. EBITDA margin was 8.8%.
Taxes
Taxes
recognized by the Company during the first half of the year were Ps. 117.3
million.
Net
Income
Net
income for first half of the year was Ps. 425.2 million, or Ps. 0.71 per
share
(US$0.83 per ADS), compared to net income of Ps. 728.0 million, or Ps. 1.21
per
share (US$1.41 per ADS) reported in the same 2007 period.
Balance
Sheet
The
Company’s financial structure remained healthy. Liquidity is solid with cash and
cash equivalents of Ps. 2,878.8 million as of June 30, 2008. Total debt
outstanding was Ps. 72.7 million as of June 30, 2008.
CAPEX
during the first half of 2008 amounted to Ps. 685.7 million.
Adoption
of New Accounting Standards
As
of
January 1,
2008,
the Company has adopted the changes to “Inflationary Effects” in accordance with
the Mexican Accounting Principles. Due to the relatively low inflation
that the
country has consistently achieved during the past several years, a new
accounting principle went into effect on January 1,
2008,
which eliminates the recognition of inflationary effects in its financial
information. Consequently, financial information corresponding to the year
2007
is expressed in millions of Mexican pesos with purchasing power as of December
31, 2007, while the financial information for the year 2008 is stated in
current
or nominal Mexican pesos.
Company
Description
Industrias
Bachoco S.A.B. de C.V. (also referred in this report as Bachoco) was founded
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 and balanced feed, and the Company also is present in other business
like
swine, beef, margarine and turkey. The Company’s headquarters are in Celaya,
Guanajuato.
Industrias
Bachoco made an initial public stock offering in September 1997. Its securities
are listed and traded on the BMV (Bachoco) 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.
Consolidated
Statements of Income
|
SECOND QUARTER
|
FIRST HALF
|
||||||||||||||||||
|
U.S.D.
|
Mexican Pesos
|
U.S.D.
|
Mexican Pesos
|
||||||||||||||||
|
2008(1)
|
2008(2)
|
2007(3)
|
2008(1)
|
2008(2)
|
2007(3)
|
||||||||||||||
|
|
|||||||||||||||||||
|
Net
Sales
|
$
|
484
|
Ps
|
4,987
|
Ps
|
4,842
|
US
|
944
|
Ps |
9,731
|
Ps
|
8,913
|
|||||||
|
Cost
of Sales
|
397
|
4,093
|
3,721
|
777
|
8,011
|
7,041
|
|||||||||||||
|
Gross
Profit (loss)
|
87
|
895
|
1,121
|
167
|
1,720
|
1,872
|
|||||||||||||
|
Selling,
general and administrative expenses
|
57
|
583
|
561
|
113
|
1,164
|
1,086
|
|||||||||||||
|
Operating
Income (loss)
|
30
|
312
|
560
|
54
|
556
|
787
|
|||||||||||||
|
Comprehensive
financing (cost) income
|
(5
|
)
|
(47
|
)
|
38
|
(2
|
)
|
(17
|
)
|
99
|
|||||||||
|
Interest
income
|
3
|
31
|
69
|
9
|
98
|
154
|
|||||||||||||
|
Interest
expense and financing cost
|
5
|
49
|
20
|
7
|
70
|
37
|
|||||||||||||
|
Forein
exchange gain (loss), net
|
(3
|
)
|
(30
|
)
|
(11
|
)
|
(4
|
)
|
(45
|
)
|
(18
|
)
|
|||||||
|
Other
income (expense) net
|
(1
|
)
|
(14
|
)
|
12
|
1
|
6
|
54
|
|||||||||||
|
Income
before income tax, asset tax
|
24
|
250
|
610
|
53
|
545
|
939
|
|||||||||||||
|
Total
income taxes
|
5
|
54
|
131
|
11
|
117
|
209
|
|||||||||||||
|
Income
tax, asset tax
|
2
|
24
|
23
|
12
|
127
|
72
|
|||||||||||||
|
Deferred
income taxes
|
3
|
30
|
108
|
(1
|
)
|
(9
|
)
|
138
|
|||||||||||
|
Net
Income
|
$
|
19
|
Ps
|
196
|
Ps
|
479
|
|
42
|
|
428
|
730
|
||||||||
|
Minority
net income
|
0
|
2
|
0
|
0
|
2
|
2
|
|||||||||||||
|
Mayority
net income
|
19
|
194
|
479
|
41
|
425
|
728
|
|||||||||||||
|
weighted
average shares outstanding (in thousands)
|
600,000
|
600,000
|
600,000
|
600,000
|
600,000
|
600,000
|
|||||||||||||
|
Net
mayority Income per share (in U.S.D per ADR)
|
0.38
|
0.32
|
0.80
|
0.83
|
0.71
|
1.21
|
|||||||||||||
(1)
Million of U.S. dollar (Peso at the rate of Ps. 10.3035)
(2)
Million of constant pesos as of June 30, 2008
(2)
Million of constant pesos as of December 31, 2007
|
U.S.D.
|
Mexican Pesos
|
|||||||||
|
2008(1)
|
2008(2)
|
2007(3)
|
||||||||
|
ASSETS
|
||||||||||
|
Current
assets
|
||||||||||
|
Cash
and cash equivalents
|
$
|
279
|
Ps |
2,879
|
Ps
|
3,480
|
||||
|
Total
accounts receivable
|
124
|
1,283
|
946
|
|||||||
|
Inventories
|
434
|
4,473
|
3,838
|
|||||||
|
Other
current assets
|
-
|
-
|
||||||||
|
Total
current assets
|
838
|
8,634
|
8,264
|
|||||||
|
Net
property, plant and equipment
|
1,032
|
10,637
|
9,829
|
|||||||
|
Other
non current assets
|
36
|
374
|
378
|
|||||||
|
TOTAL
ASSETS
|
$
|
1,907
|
Ps
|
19,645
|
Ps
|
18,470
|
||||
|
|
||||||||||
|
LIABILITIES
|
||||||||||
|
Current
liabilities
|
||||||||||
|
Notes
payable to banks
|
6
|
67
|
61
|
|||||||
|
Accounts
payable
|
131
|
1,348
|
848
|
|||||||
|
Other
taxes payable and other accruals
|
59
|
611
|
573
|
|||||||
|
Total
current liabilities
|
197
|
2,025
|
1,482
|
|||||||
|
Long-term
debt
|
7
|
73
|
62
|
|||||||
|
Labor
obligations
|
5
|
56
|
44
|
|||||||
|
Deferred
income taxes and others
|
188
|
1,937
|
2,338
|
|||||||
|
Total
long-term liabilities
|
201
|
2,066
|
2,445
|
|||||||
|
TOTAL
LIABILITIES
|
$
|
397
|
Ps
|
4,091
|
Ps
|
3,926
|
||||
|
STOCKHOLDERS'
EQUITY
|
||||||||||
|
Majority
stockholder's equity:
|
||||||||||
|
Capital
stock
|
223
|
2,295
|
2,295
|
|||||||
|
Pain-in
capital
|
64
|
660
|
660
|
|||||||
|
Reserve
for repurchase of shares
|
24
|
244
|
244
|
|||||||
|
Retained
earnings
|
1,471
|
15,156
|
14,250
|
|||||||
|
Net
majority income of the year
|
41
|
425
|
728
|
|||||||
|
Deficit
from restatement of stockholder's equity
|
(363
|
)
|
(3,738
|
)
|
(3,664
|
)
|
||||
|
Derivate
financial instruments
|
46
|
469
|
(15
|
)
|
||||||
|
Total
majority stockholder's equity
|
1,505
|
15,510
|
14,498
|
|||||||
|
Minority
interest
|
4
|
44
|
46
|
|||||||
|
TOTAL
STOCKHOLDERS' EQUITY
|
1,510
|
15,554
|
14,544
|
|||||||
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
1,907
|
Ps
|
19,645
|
Ps
|
18,470
|
||||
(1)
Million of U.S. dollar (Peso at the rate of Ps. 10.3035)
(2)
Million of constant pesos as of June 30, 2008
(2)
Million of constant pesos as of December 31, 2007
Condensed
Consolidated Statements of Changes in Financial
Position
|
U.S.D.
|
Mexican Pesos
|
|||||||||
|
2008(1)
|
2008(2)
|
2007(3)
|
||||||||
|
Operating
Activities:
|
||||||||||
|
Net
Income
|
$
|
42
|
Ps. |
428
|
Ps.
|
730
|
||||
|
Adjustments
to Reconcile Net Income to Resources
|
||||||||||
|
Provided
by Operating Activities:
|
||||||||||
|
Depreciation
and Others
|
29
|
295
|
278
|
|||||||
|
Changes
in Operating Assets and Liabilities
|
35
|
357
|
(900
|
)
|
||||||
|
Deferred
Income Taxes
|
(42
|
)
|
(438
|
)
|
156
|
|||||
|
Resources
Provided by Operating Activities
|
$
|
62
|
Ps.
|
643
|
Ps.
|
264
|
||||
|
|
||||||||||
|
Financing
Activities:
|
||||||||||
|
Increase
of Capital Stock
|
0
|
0
|
(0
|
)
|
||||||
|
Proceeds
from Long-term Debt
|
-
|
-
|
32
|
|||||||
|
Proceeds
from Short-term Debt
|
12
|
123
|
51
|
|||||||
|
Repayment
of Long-term Debt and Notes Payable
|
9
|
94
|
(5
|
)
|
||||||
|
Decrease
in Long-term Debt in Constant Pesos
|
(18
|
)
|
(187
|
)
|
(0
|
)
|
||||
|
Cash
Dividends Paid
|
(11
|
)
|
(118
|
)
|
(122
|
)
|
||||
|
Resources
Provided by (Used in) Financing Activities
|
$
|
(9
|
)
|
Ps.
|
(88
|
)
|
Ps.
|
(44
|
)
|
|
|
|
||||||||||
|
Investing
Activities:
|
||||||||||
|
Acquisition
of Property, Plant and Equipment
|
(67
|
)
|
(686
|
)
|
(287
|
)
|
||||
|
Minority
Interest
|
(0
|
)
|
(3
|
)
|
1
|
|||||
|
Others
|
(3
|
)
|
(27
|
)
|
(38
|
)
|
||||
|
Resources
Used in Investing Activities
|
$
|
(69
|
)
|
Ps.
|
(715
|
)
|
Ps.
|
(324
|
)
|
|
|
|
||||||||||
|
Net
(Decrease) Increase in Cash and Cash
|
||||||||||
|
Equivalents
|
$
|
(16
|
)
|
Ps.
|
(161
|
)
|
Ps.
|
(104
|
)
|
|
|
|
||||||||||
|
Cash
and Cash Equivalents at Beginning of Period
|
295
|
3,040
|
3,584
|
|||||||
|
|
||||||||||
|
Cash
and Cash Equivalents at End of Period
|
$
|
279
|
Ps.
|
2,879
|
Ps.
|
3,480
|
||||
(1)
Million of U.S. dollar (Peso at the rate of Ps. 10.3035)
(2)
Million of constant pesos as of June 30, 2008
(2)
Million of constant pesos as of 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:
July 24, 2008
|
By
|
/s/
Daniel Salazar Ferrer, CFO
|
||