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CELAYA, Mexico,– 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 (“4Q19”) and full year (“2019”) ending on December 31st, 2019. All figures have been prepared in accordance with International Financial Reporting Standard (“IFRS”) and are presented in nominal million Mexican Pesos (“$”).
Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: “Under challenging conditions by the end of the year, particularly regarding economic growth in Mexico, we managed to end 2019 with positive results vs 2018 in terms of profitability, despite a difficult 4Q19.
In Mexico, during the quarter, we observed some oversupply conditions in poultry which, in combination with a softer demand, pressured down our prices and volume, particularly in our traditional channels.
On the other hand, in the U.S. industry, towards the end of the quarter, we observed some recovery in prices particularly for leg quarters. However, lower volume sold and the appreciation of the Mexican peso vs the U.S. dollar negatively impacted us in this segment.
As a result, we reported a decrease in total sales of 1.8% in 4Q19 when compared to 4Q18. For the full year, we reached an increase of 1.0% vs 2018.
Regarding cost of sales, even when prices of grain negatively impacted our feed cost quarter over quarter, efficiencies in our feed conversion and the appreciation of the Mexican peso vs the U.S. dollar allowed us to offset the increase in raw materials.
In terms of volume sold, our Others segment, particularly Balance Feed, exceeded our expectations by reaching a double digit increase for both the quarter and full year when compared to the same periods of 2018.
Through our efforts and projects to keep SG&A under control, we saw a decrease of almost 5% quarter over quarter in Mexican peso terms.
As a result, our EBITDA was $517.5 million with a margin of 3.8% which is lower than the EBITDA of the same quarter of 2018.
For the full year of 2019, our EBITDA was $5,215.6 with a margin of 8.5% which is higher than the same figures of 2018.
Our financial structure remained solid and allowed us to keep with our growth plans. We reported a net cash position of $14,254.3 and CAPEX of $2,025.1 million.
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.”
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 2019.