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 April 26, 2010
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 ¨
(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.
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Industrias
Bachoco, S.A. de C.V.
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(Registrant)
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Date:
April 26, 2010
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By
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/s/
Daniel Salazar Ferrer, CFO
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Industrias
Bachoco Announces its 2010 First Quarter Results
Celaya, Gto., Mexico, - April 26,
2010 - 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, announced today its unaudited results for the first quarter ended
March 31, 2010. All figures have been prepared in accordance with Mexican GAAP.
In line with the Mexican Accounting Principles, data is presented in nominal
Mexican pesos.
Highlights:
|
·
|
Total
sales increased 1.1% from 2009’s first
quarter
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·
|
The
Company recorded historic chicken volume sold, increasing 16.6% over 1Q09.
Volume sold also increased for table eggs and
swine
|
|
·
|
EBITDA
margin of 8.6% in 1Q10 was lower than the 11.2% in 2009’s first
quarter
|
|
·
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Earnings
per share for the quarter reached Ps.$ 0.458, compared to PS$ 0.457 in
1Q09
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CEO’s
Comments:
Cristobal
Mondragon, Bachoco’s CEO, stated, “While the economic conditions prevailing in
Mexico continued to slowly improve, we observed a good demand for our products,
impacting our first quarter results and showing an improvement from the previous
year in terms of sales and volume sold.
“In
particular, the chicken industry was stable with good demand, lower prices and
costs than in the previous quarter. The cost was lower mainly due to the
strength of the Mexican peso and stable cost for our main imports.
“As a
result of the business agreement reached last July, production efficiency and
some organic growth registered in the states of Chiapas and Yucatan, the Company
recorded an important increase in volume of chicken sold during this
quarter.
“Our egg
business, swine and balanced feed showed important improvements as seen in the
results for the quarter.
“Our
results were strong and sound, while our financial position remained solid even
after the investments made during the past quarters,” concluded Mr.
Mondragon.
Releases made during the
quarter:
On April
7, 2010, the Company reported to the market that its table eggs facilities
located in Mexicali, Baja California, which represent about 9% of its total
table eggs production, were affected by the earthquake registered on April 4,
2010.
 |
-2-
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FIRST
QUARTER 2010 RESULTS
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Net
sales
|
1Q10
(%)
|
1Q09
(%)
|
|
Chicken
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79.8%
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79.0%
|
|
Eggs
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10.1%
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10.2%
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|
Balanced
feed
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5.5%
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5.8%
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Swine
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1.2%
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1.0%
|
|
Other
lines
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3.4%
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4.0%
|
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Total
Sales
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100.00%
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100.00%
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Net
Sales
Net sales
for the first quarter amounted to Ps. 5,931.2 million, and were 1.1% above the
Ps. 5,866.8 million reported in the same 2009 quarter. This increase was mainly
driven by higher chicken, eggs and swine sales.
Operating
Results
Bachoco’s
first quarter gross margin was 17.2%, lower than 18.8% reported in 1Q09. This
result is directly attributed to a decrease in the sale prices of Bachoco’s main
line products.
The
Company registered an operating profit of Ps. 342.0 million, which is lower than
the operating profit of Ps. 494.8 million registered in the same 2009 quarter.
The operating margin for the first quarter of 2010 was 5.8%.
EBITDA
amounted to Ps. 511.9 million, below the Ps. 654.3 million reported in the same
2009 quarter.
Taxes
Total
taxes for the first quarter were Ps. 62.5 million.
Comprehensive
Financial Income (Cost)
The
Company’s comprehensive financial cost was Ps. 2.9 million during the quarter,
which was substantially below the comprehensive financial cost of Ps. 119.8
million reported in the same year-ago quarter.
Net
Majority Income (loss)
Net
majority income for the first quarter amounted to PS. 274.9 million, or Ps. 0.46
per share (US$0.44 per ADS), compared to a net majority income of Ps. 273.9
million, or Ps. 0.46 per share (US$0.44 per ADS) reported in the same 2009
period.
Balance
Sheet
The
financial position of the Company remained solid with cash and cash equivalents
amounting to Ps. 2,851.9 million as of March 31, 2010. The total debt
outstanding for the same period was of Ps. 863.4 million.
Capital
Expenditures
CAPEX
during the first quarter of 2010 amounted to Ps.60.8
million.
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-3-
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RESULTS
BY BUSINESS SEGMENT
Chicken
Sales of
chicken products increased 2.1%, when compared to 1Q09, as a result of the 16.6%
increase in volume, which is mainly attributed to productivity achievements,
organic growth and the integration of the new business agreements. This increase
in volume was partially offset by the 12.4% decline in chicken
prices.
Table
Eggs
Sales of
table eggs products increased 0.2% during the first quarter, mainly stemming
from a 2.4% increase in the volume sold. This growth was partially offset by the
2.0% decrease in table eggs prices. This business line remained solid with a
good level between demand and supply.
Balanced
Feed
Sales of
balanced feed decreased 3.8%, mainly due to the 0.8% decrease in prices and 3.1%
decrease in balance feed volume.
Swine
The swine
business line was stable during the first quarter. Sales were strong and rose
15.8%, as a result of a 20.1% gain in volume sold; which was partially offset by
a 3.6% decrease in swine prices when compared to the same 2009
quarter.
Other
Lines
Sales of
other lines decreased 13.6% when compared with 1Q09, as sales of turkey and
by-products declined.
Exhibits:
A.-
Consolidated Balanced Sheets
B.-
Consolidated Statement of Income
C.-
Consolidated Statement Cash Flow
D.-
Derivatives Position Report
Company
Description
Industrias
Bachoco S.A.B. de C.V. is the largest poultry company in Mexico, with over 800
production and distribution facilities currently organized in nine complexes
throughout the country. Bachoco’s main business lines are: chicken, eggs, and
balanced feed, among others. The Company is also present in other businesses
like swine, beef, margarine and turkey in Mexico. The Company’s headquarters are
located in Celaya, Guanajuato, Mexico.
For
more information, please visit Bachoco’s website at http://www.bachoco.com.mx or
contact our IR department.
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-4-
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Exhibit A: Consolidated Balance Sheets
INDUSTRIAS
BACHOCO, S.A.B. DE C.V.
Consolidated
Statements of Income
-unaudited-
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FIRST
QUARTER
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||||||||||||
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U.S.D.
|
Mexican
Pesos
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|||||||||||
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2010(1)
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2010(2)
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2009(2)
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||||||||||
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Net
sales
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$ | 480 | Ps | 5,931 | Ps | 5,867 | ||||||
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Cost
of sales
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397 | 4,911 | 4,765 | |||||||||
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Gross
profit (loss)
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83 | 1,020 | 1,102 | |||||||||
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Selling,
general and administrative expenses
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55 | 678 | 607 | |||||||||
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Operating
income (loss)
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28 | 342 | 495 | |||||||||
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Other
income (expense) net
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(0 | ) | (1 | ) | (32 | ) | ||||||
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Comprehensive
financing (cost) income
|
(0 | ) | (3 | ) | (120 | ) | ||||||
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Interest
income
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3 | 34 | 512 | |||||||||
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Interest
expense and financing expenses
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(2 | ) | (19 | ) | (637 | ) | ||||||
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Foreign
exchange gain (loss), net
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0 | 4 | 5 | |||||||||
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Other
financial income (expense) net
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(2 | ) | (22 | ) | - | |||||||
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Income
before income tax, asset tax
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27 | 338 | 343 | |||||||||
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Total
income taxes
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5 | 62 | 67 | |||||||||
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Income
tax, asset tax
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4 | 46 | 24 | |||||||||
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Deferred
income taxes
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1 | 17 | 43 | |||||||||
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Net
income
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$ | 22 | Ps | 276 | Ps | 276 | ||||||
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Minority
net income
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0 | 1 | 2 | |||||||||
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Majority
net income
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22 | 275 | 274 | |||||||||
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weighted
average shares outstanding (in thousands)
|
600,000 | 600,000 | 600,000 | |||||||||
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Net
majority Income per share (in U.S.D. per ADS)
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0.44 | 0.46 | 0.46 | |||||||||
(1)
For reference, in millions of U.S. dollars using an exchange rate of
$12.357
Source:
Mexico's National Bank, as of March 31, 2010.
(2)
Millions of Mexican nominal pesos
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-5-
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Exhibit B: Consolidated Statement of Income
Condensed
Consolidated Balance Sheets
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U.S.D.
|
Mexican
Pesos
|
|||||||||||
|
2010(1)
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2010(2)
|
2009(2)
|
||||||||||
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As
of March 31,
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As
of March 31,
|
|||||||||||
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ASSETS
|
||||||||||||
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Current
assets
|
||||||||||||
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Cash
and cash equivalents
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$ | 231 | Ps | 2,852 | Ps | 2,449 | ||||||
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Total
accounts receivable
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121 | 1,495 | 1,332 | |||||||||
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Inventories
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346 | 4,278 | 3,862 | |||||||||
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Other
current assets
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- | - | - | |||||||||
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Total
current assets
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698 | 8,625 | 7,643 | |||||||||
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Net
property, plant and equipment
|
875 | 10,812 | 10,684 | |||||||||
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Other
non current assets
|
34 | 417 | 516 | |||||||||
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TOTAL
ASSETS
|
$ | 1,607 | Ps | 19,853 | Ps | 18,842 | ||||||
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LIABILITIES
|
||||||||||||
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Current
liabilities
|
||||||||||||
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Notes
payable to banks
|
49 | 611 | 235 | |||||||||
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Accounts
payable
|
117 | 1,441 | 1,099 | |||||||||
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Other
taxes payable and other accruals
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36 | 446 | 381 | |||||||||
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Total
current liabilities
|
202 | 2,498 | 1,714 | |||||||||
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Long-term
debt
|
20 | 253 | 382 | |||||||||
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Labor
obligations
|
8 | 100 | 86 | |||||||||
|
Deferred
income taxes and others
|
169 | 2,088 | 2,317 | |||||||||
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Total
long-term liabilities
|
198 | 2,441 | 2,785 | |||||||||
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TOTAL
LIABILITIES
|
$ | 400 | Ps | 4,938 | Ps | 4,499 | ||||||
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STOCKHOLDERS'
EQUITY
|
||||||||||||
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Majority
stockholder's equity:
|
||||||||||||
|
Capital
stock
|
186 | 2,295 | 2,295 | |||||||||
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Paid-in
capital
|
60 | 745 | 744 | |||||||||
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Reserve
for repurchase of shares
|
13 | 159 | 158 | |||||||||
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Retained
earnings
|
922 | 11,389 | 10,829 | |||||||||
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Net
majority income of the year
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22 | 275 | 274 | |||||||||
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Deficit
from restatement of stockholder's equity
|
- | - | - | |||||||||
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Derivate
financial instruments
|
- | - | - | |||||||||
|
Total
majority stockholder's equity
|
1,203 | 14,863 | 14,299 | |||||||||
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Minority
interest
|
4 | 51 | 45 | |||||||||
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TOTAL
STOCKHOLDERS' EQUITY
|
1,207 | 14,914 | 14,344 | |||||||||
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TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 1,607 | Ps | 19,853 | Ps | 18,842 | ||||||
(1)
For reference, in millions of U.S. dollars using an exchange rate of
$12.357
Source:
Mexico's National Bank, as of March 31, 2010.
(2)
Millions of Mexican nominal pesos
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|
-6-
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Exhibit C: Consolidated Statement of Cash Flows
Consolidated
Statement of Cash Flows
|
Mexican
Pesos
|
||||||||||||
|
U.S.D.
|
2010(2)
|
2009(2)
|
||||||||||
|
2010(1)
|
As
of March 31,
|
As
of March 31,
|
||||||||||
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NET
MAJORITY INCOME BEFORE INCOME TAX
|
$ | 27 | Ps. | 338 | Ps. | 343 | ||||||
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ITEMS
THAT DO NOT REQUIRE CASH:
|
(3 | ) | (33 | ) | (70 | ) | ||||||
|
Other
Items
|
(3 | ) | (33 | ) | (70 | ) | ||||||
|
ITEMS
RELATING TO INVESTING ACTIVITIES:
|
13 | 162 | 148 | |||||||||
|
Depreciation
and others
|
14 | 170 | 160 | |||||||||
|
Income
(loss) on sale of plant and equipment
|
(1 | ) | (7 | ) | (10 | ) | ||||||
|
Other
Items
|
(0 | ) | (1 | ) | (2 | ) | ||||||
|
ITEMS
RELATING TO FINANCING ACTIVITIES:
|
4 | 53 | 76 | |||||||||
|
Interest
income (expense)
|
2 | 19 | 25 | |||||||||
|
Other
Items
|
3 | 34 | 51 | |||||||||
|
NET
CASH GENERATED FROM NET INCOME BEFORE TAXES
|
$ | 42 | Ps. | 521 | Ps. | 496 | ||||||
|
CASH
GENERATED OR USED IN THE OPERATION
|
6 | 77 | 164 | |||||||||
|
Decrease
(increase) in accounts receivable
|
5 | 68 | 183 | |||||||||
|
Decrease
(increase) in inventories
|
19 | 235 | 1,256 | |||||||||
|
Increase
(decrease) in accounts payable
|
(23 | ) | (280 | ) | (883 | ) | ||||||
|
Income
taxes paid
|
4 | 54 | (391 | ) | ||||||||
|
NET
CASH FLOW FROM FINANCING ACTIVITIES
|
$ | 48 | Ps. | 598 | Ps. | 661 | ||||||
|
INVESTING
ACTIVITIES
|
||||||||||||
|
NET
CASH FLOW FROM INVESTING ACTIVITIES
|
(11 | ) | (142 | ) | (176 | ) | ||||||
|
Acquisition
of property, plant and equipment
|
(5 | ) | (61 | ) | (140 | ) | ||||||
|
Proceeds
from sales of property plant and equipment
|
(0 | ) | (4 | ) | (4 | ) | ||||||
|
Other
Items
|
(6 | ) | (78 | ) | (31 | ) | ||||||
|
CASH
FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN
|
||||||||||||
|
FINANCING
ACTIVITIES
|
$ | 37 | Ps. | 456 | Ps. | 485 | ||||||
|
FINANCING
ACTIVITIES
|
||||||||||||
|
Net
cash provided by financing activities:
|
(8 | ) | (99 | ) | (8 | ) | ||||||
|
Proceeds
from loans
|
18 | 226 | 15 | |||||||||
|
Principal
payments on loans
|
(26 | ) | (326 | ) | (24 | ) | ||||||
|
Dividends
paid
|
- | - | - | |||||||||
|
Other
items
|
0 | 1 | 1 | |||||||||
|
NET
INCREASE (DECREASE) IN CASH AND EQUIVALENTS
|
28 | 349 | 476 | |||||||||
|
CASH
AND INVESTMENTS AT THE BEGINNING OF YEAR
|
203 | 2,503 | 1,972 | |||||||||
|
CASH
AND INVESTMENTS AT END OF PERIOD
|
$ | 231 | Ps. | 2,852 | Ps. | 2,449 | ||||||
(1)
For reference, in millions of U.S. dollars using an exchange rate of
$12.357
Source:
Mexico's National Bank, as of March 31, 2010.
(2)
Millions of Mexican nominal pesos
|
Industrias
Bachoco, S.A.B. de C.V.
|
||||
|
Thousands
of Mexican Pesos, as of March 31, 2010
|
Quarter:
1
|
|||
|
ANEXO
1
|
||||
|
Type
of Financial Instrument
|
Objective
of the Instrument
|
Notional
|
Value
of the Related Commodity
|
Reasonable
Value
|
Amounts
Due by Year
|
Guaranties
Required
|
||
|
1Q-2010
|
4Q-2009
|
1Q-2010
|
4Q-2009
|
|||||
|
Forwards,
knock out forwards, puts, collares and others under different amounts and
conditions
|
Hedge
and negotiation
|
$468,454
|
$12.36
|
$13.08
|
-$24,664
|
$ 2,004
|
99.6%
in 2010 and 0.4% in 2011
|
The
deals consider the possibility of margin calls but not another kind of
guarantee
|
|
Futures
for corn and Soybean meal
|
Hedge
|
$ 48,158
|
Corn for May 2010: $
3.45 USD/bushel. Soybean meal; $ 265.8 and $248.6 USD/ton for
May and December 2010 respectively
|
Corn of March 2010:
$4.145 USD/bushel
|
-$ 2,068
|
-$ 1,404
|
2010
|
|
|
Options
for corn
|
Hedge
and negotiation
|
$ -
|
-
|
Corn of March 2010:
$4.145 USD/bushel
|
$ -
|
$ 1,651
|
||
None
of the financial instruments exceed 5% of total assets as of March 31,
2010.
A
negative value means an unfavorable effect for the Company.
The
notional value represents the net position as of March 31, 2010 at the exchange
rate of Ps.12.357 per USD.
|
Industrias
Bachoco, S.A.B. de C.V.
|
|||
|
Thousands
of Mexican Pesos, as of March 31, 2010
|
Quarter:
1
|
||
|
Table
2
|
|||
|
Type
of Financial Instrument
|
Reasonable
Value as of March 31, 2010
|
Value
of the Related Commodity-reference
value
|
Effect
on the Income Statement
|
Effect
on the Cash Flow ***
|
||||
|
-2.5%
|
2.5%
|
5.0%
|
-2.5%
|
2.5%
|
5.0%
|
|||
|
Forwards,
knock out forwards, puts, collares and others under different amounts and
conditions*
|
-$ 24,664
|
$12.05
|
$ 12.67
|
$ 12.97
|
Direct
|
-$ 40,933
|
-$ 12,952
|
$ 1,382
|
|
-5%
|
5%
|
10%
|
-5%
|
5%
|
10%
|
|||
|
Futures
for corn and Soybean meal**
|
$ 3.2775
|
$ 3.6225
|
$ 3.7950
|
The
effect will materialize as the inventory is consumed
|
||||
|
-$ 2,068
|
$ 252.51
|
$ 279.09
|
$ 292.38
|
-$ 4,372
|
$ 237
|
$ 2,541
|
||
|
Options
for corn**
|
$ -
|
-
|
-
|
-
|
$ -
|
$ -
|
$ -
|
|
A
negative value means an unfavorable effect for the Company.
* The
reference value for the peso/USD as of March 31, 2010 is $12.357
** The
reference value is the Futures of corn for May 2010, $3.45 USD per
bushel and of soybean meal for may 2010, $265.8 USD per ton
*** The
company has credit lines with the majority of its counterparts, so that the
effect in cash flow is lower than the amount shown