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Name | Symbol | Market | Type |
---|---|---|---|
Industrias Bachoco SAB de CV | NYSE:IBA | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 53.00 | 0 | 01:00:00 |
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
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
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 $19.51 per USD, which corresponds to the rate at the close of December 31st, 2022 according to Mexico’s National Bank.
In U.S. Dollar
December 31,
December 31,
In million pesos2022
2022
2021*
TOTAL ASSETS$
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, 2022PROBABLE 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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