Industrias Bachoco, Mexico’s leading poultry processor, has seen operating results hampered by increased costs during the first quarter of the year.
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While sales increased by 9.3%, rising costs drove down margins, the company said. Sales for the quarter ended 31 March totalled MXN3.96bn (US$361m). The group posted earnings per share of MXN0.40, up slightly from MXN0.39 for the corresponding quarter of last year.
However, CEO Cristobal Mondragon revealed that margins were depressed by the increased cost corn and feed.
“Our operating results were affected by price increases in our main raw materials that impacted our cost of sales. These costs were not offset in this period by price increases in our main product lines,” Mondragon said.
Gross margin for the quarter was 18.5%, compared to 21.2% achieved during the first quarter of last year. EBITDA margin for the period totalled 9%, the group added.
