Earnings Results to Track: Industrias Bachoco, S.A.B. de C.V. (NYSE: IBA)

Elizabeth Villa

I am Elizabeth Villa and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets.

I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

Address: 4211 Angie Drive, Los Angeles, CA 90017, USA
Phone: (+1) 714-933-4836
Email: elizabeth.villa@up24news.com
Elizabeth Villa

CELAYA, Mexico, June 21, 2019 – Industrias Bachoco SAB de CV (IBA) recently reported first-quarter earnings of $15.60M.

In 1Q19, the Company’s net sales totaled $14,323.60M; $979.40M or 6.4% less than $15.303.00M reported in 1Q18.  This was a result of price decreases in our main product lines.

GROSS PROFIT

The cost of sales totaled $12,515.70M, representing $429.90M or 3.6% higher than $12,085.80M reported in the same period of 2018. This increase was a result of more volume sold, and a boost in our feed costs expressed in Mexican pesos.

The Company’s gross profit in 1Q19 was $1,807.90M, with a gross margin of 12.6%. This result is lower when contrasts to a gross profit of $3,217.20M and a gross margin of 21.0% reported in 1Q18.

Total SG&A expenses in 1Q19 were $1,474.40M; $88.90M or 6.4% more than the $1,385.50M reported 1Q18. Total SG&A expenses, as a percentage of net sales, represent 10.3% in 1Q19 and 9.1% in 1Q18.

OPERATING INCOME

Operating income in 1Q19 totaled $335.20M for an operating margin of 2.3%; lower than an operating income of $1,822.50M and a 11.9% operating margin reported in 1Q18. The decrease in operating income is mainly attributed to lower gross profit than in 1Q18.

NET FINANCIAL INCOME

In 1Q19, the Company reported net financial income of $76.00M, contrast to net financial expense of $93.80M reported in the same period of 2018, mainly because of lower financial expense.

TAXES FOR THE PERIOD

Total taxes for the 1Q19 were $108.70M, contrast to $467.80M in the same period of 2018.

NET INCOME:

The net income for 1Q19 was $302.50M, representing a basic and diluted income of $0.50 pesos per share. This result compares to a net income of $1,260.90M, which represented a net income of $2.09 pesos of basic and diluted income per share in 1Q18. Net margin for the 1Q19 was 2.1% contrast to 8.2% reported in 1Q18.

EBITDA AND ADJUSTED EBITDA

EBITDA in 1Q19 reached $654.90M, representing an EBITDA margin of 4.6%, contrast to an EBITDA of $2,091.00M in 1Q18 with an EBITDA margin of 13.7%.

BALANCE SHEET DATA

Cash and equivalents as of March 31, 2019 totaled $16,201.40M; $2,257.10M or 12.2% lower than $18,458.50M as of December 31, 2018.

Total debt as of March 31, 2019 totaled $3,766.70M, contrast to $5,037.60Mreported as of December 31, 2018.

Net cash as of March 31, 2019 was $12,434.70M, contrast to net cash of $13,420.90M as of December 31, 2018.

CAPEX

Total CAPEX for the 1Q19 was $409.90M, which was mainly allocated toward organic growth and productivity projects across all our facilities.

Avatar

Elizabeth Villa

I am Elizabeth Villa and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking. Address: 4211 Angie Drive, Los Angeles, CA 90017, USA Phone: (+1) 714-933-4836 Email: elizabeth.villa@up24news.com

Leave a Reply

Your email address will not be published. Required fields are marked *