Production costs leads to weak Q4, fiscal year results for Industrias Bachoco
Industrias Bachoco S.A.B. de C.V. announced its unaudited results for the fourth quarter and full year 2011 ended December 31, 2011. Bachoco reported the highest quarterly and annual net sales in the company's history; this figure rose 34.4% in 4Q11 vs 4Q10 and 11.8% in 2011 vs 2010. However, Bachoco and the poultry industry in general continued experiencing large increases in production costs, driven by global increases in prices of corn, soybean meal, among other components of the production cost. This, combined with challenging economic conditions and high depreciation of the Mexican peso at the end of the year, lead Bachoco to post negative profit for the fourth quarter and weak results for the year 2011.
Bachoco's operating loss for 4Q11 was Ps. 244.7 million, compared to an operating profit of Ps. 584.5 million reached in 4Q10. While for the year 2011 operating losses totaled Ps. 59.6 million a sharp reduction compare to an operating income of Ps. 2,521.6 million, reported in 2010. The company's 4Q11 net sales totaled Ps. 8,564.3 million, showing a 34.4% increase over the Ps. 6,374.6 million reported in 4Q10.