-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DlJ4DYzw68XA85QIrEyBTTkyr3PX2oQD5s7yxhHyXJ8nNniApvTuy69cWq5a9KJv M5euHb9NlM8uZwMhVeJsuw== 0001157523-03-005953.txt : 20031028 0001157523-03-005953.hdr.sgml : 20031028 20031028170132 ACCESSION NUMBER: 0001157523-03-005953 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20031027 FILED AS OF DATE: 20031028 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INDUSTRIAS BACHOCO SA DE CV CENTRAL INDEX KEY: 0001044896 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 8880 [8880] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-07480 FILM NUMBER: 03961460 BUSINESS ADDRESS: STREET 1: 48 WALL ST STREET 2: C/O BANK OF NEW YORK CITY: NEW YORK STATE: NY ZIP: 10286 BUSINESS PHONE: 2128151727 MAIL ADDRESS: STREET 2: CELAYA GUANAJUATO CITY: MEXICO STATE: O5 ZIP: 9999999999 6-K 1 a4503039.txt INDUSTRIAS BACHOCO 6-K CONFORMED Securities and Exchange Commission Washington, D.C. 20549 FORM 6-K Report of Foreign Issuer Pursuant to Rule 13a-16 Or 15d-16 Of The Securities Exchange Act of 1934 For the month of October 2003 BACHOCO INDUSTRIES (Translation of Registrant's name into English) Avenida Tecnologico No. #401 38010 Celaya, Guanajuato (Address of principal office) (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.) (Check One) Form 20-F X Form 40-F --- --- (Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing information to the Commission pursuant to Rule 12g-3-2(b) under the Securities Exchange Act of 1934.) (Check One) Yes No X --- --- (If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b). 82__.) Bachoco Announces its Third Quarter 2003 Results CELAYA, Mexico--(BUSINESS WIRE)--Oct. 27, 2003--Industrias Bachoco S.A. de C.V. ("Bachoco" or "the Company") (NYSE: IBA; BMV: Bachoco UBL), Mexico's leading producer and processor of poultry products, today announced its unaudited results for the third quarter and first nine months ended September 30, 2003. All figures have been prepared in accordance with Mexican GAAP and are stated in constant Mexican pesos as of September 30, 2003. Third Quarter 2003 Highlights: -- Total sales for the quarter reached Ps. 2,508.2 million -- Chicken sales volume rose 3.3% -- Sales of table eggs increased 9.5%, swine sales also improved 15.9% -- EBITDA reached Ps. 113.8 million -- EPS of Ps. 0.23 for the quarter, compared to Ps. 0.90 in 3Q02 Comments from the CEO: Cristobal Mondragon, CEO of Bachoco stated, "This quarter, the Mexican peso showed high levels of volatility and expected annual GDP growth continued deteriorating. This caused a difficult quarter for our Company - the results for chicken, our main product line, were affected by higher feed costs and excess supply of domestic production. These factors, combined with the continued stagnation of the Mexican economy, made it difficult to increase our prices. On a positive note, the Company had an increase in volume of chicken sold and an improvement in the results of its table egg and swine product lines. The supply of table eggs was more stable. We had an important price recovery during the quarter compared to the third quarter of the previous year, in part as a result of our efforts to improve our product mix. In addition, our financial situation remains strong. We have cash and cash equivalents of Ps. 1,968.1 million and our debt remains at low levels - Ps. 164.1 million - while Capex continues to be financed entirely from resources generated by the Company's operations. In general, our sales volume rose year-over-year and our growth plans remain on track while we continue maintaining high quality and service levels in all of our markets." THIRD QUARTER 2003 RESULTS Net Sales Net sales for the quarter reached Ps. 2,508.2 million, a decrease of 3.8% compared to Ps. 2,607.1 million reported for 3Q02. This was mainly due to a decline of 6.5% in chicken sales, partially offset by sales increases of 9.5% in table eggs, 15.9% in swine and 0.1% in balance feed. Net Sales by Product Line 3Q03 3Q02 % % - ------------------------------------------------------------- CHICKEN 78.03% 80.28% - ------------------------------------------------------------- EGGS 11.22% 9.85% - ------------------------------------------------------------- BALANCE FEED 7.16% 6.89% - ------------------------------------------------------------- SWINE AND OTHER LINES 3.59% 2.98% - ------------------------------------------------------------- TOTAL COMPANY 100% 100% - ------------------------------------------------------------- Operating Results Bachoco's gross margin was 16.5% in 3Q03, compared to 26.1% in 3Q02, mainly as a result of a reduction in gross margin of our main product line. The Company's operating margin was 1.0%, compared to 12.0% in the same quarter of 2002. EBITDA during the quarter reached Ps. 113.8 million. Taxes Taxes recognized by the Company during the quarter were Ps. 35.8 million, which includes a net effect of Ps. 2.6 million as per Bulletin E-1. Net Income Net income for the three-month period ended September 30, 2003, was Ps. 70.0 million. Earnings per share reached Ps. 0.23 compared to Ps. 0.90 reported for the same period of 2002. RESULTS BY BUSINESS SEGMENT Chicken Volume of chicken sold during the quarter increased 3.3% with respect to the same quarter of last year. Chicken prices suffered a reduction of 9.5%, as a result of an excess supply stemming from domestic production and the continued weakness of the Mexican economy, which affected the purchasing power of consumers. Therefore, it was not possible to pass on increases in unit costs, caused by higher feed prices experienced during the quarter, to final prices. Table Eggs Table egg sales increased by 9.5%, as a result of a significant price recovery, due to a more stable supply of this product in the market. Gross profit increased significantly, by 42.1%, in this business line. Bachoco continues to work on improving its sales mix by introducing packaged products with high brand identification. Balance Feed Sales of balanced feed remained relatively flat with a slight increase of 0.1% with respect to the same quarter of last year, due to a price increase that was partially offset by an increase in unit costs. Prices and unit costs increased mainly as a result of higher raw material prices. Overall, the gross margin improved. Swine and Other Lines Sales of swine rose 15.9%, as a result of a 9.2% price increase and a 6.1% sales volume increase. This price increase resulted from more moderate imports, while unit costs remained practically at the same level as in 3Q02. NINE MONTH 2003 RESULTS Net Sales Net sales for the first nine months of 2003 reached Ps. 7,805.2 million, a slight reduction of 1.7% compared to Ps. 7,939.3 million reported for the same period of 2002. This was mainly due to sales increases of 16.4% in table eggs and 1.1% in balance feed, offset by declines of 5.3% in chicken sales and 1.8% in swine sales. These variations were mainly the result of decreases in volume of our main product lines. Net Sales by Product Line 9M03 9M02 - ------------------------------------------------------------- CHICKEN 78.26% 81.26% - ------------------------------------------------------------- EGGS 10.91% 9.22% - ------------------------------------------------------------- BALANCE FEED 7.05% 6.86% - ------------------------------------------------------------- SWINE AND OTHER LINES 3.78% 2.66% - ------------------------------------------------------------- TOTAL COMPANY 100% 100% - ------------------------------------------------------------- Operating Results Bachoco's gross margin reached 20.3% during the first nine months of 2003, compared to 27.1% in the same period of 2002, mainly due to increases in unit costs of our main product lines, which were affected by price increases in raw materials. Consequently, the Company's operating margin was 5.7% compared to 13.2% in the same period of 2002. EBITDA during the first nine months reached Ps. 706.0 million. Taxes The taxes recognized by the Company during the first nine months were Ps. 89.2 million, which includes a positive effect of Bulletin E-1 in the amount of Ps. 31.9 million. Net Income Net income for the nine-month period ended September 30, 2003, was Ps. 465.6 million. Earnings per share reached Ps. 1.56, compared to Ps. 3.73 reported for the same period of 2002. Balance Sheet The Company maintained a healthy financial structure at the end of third quarter of 2003. Liquidity remained solid with cash and cash equivalents of Ps. 1,968.1 million as of September 30, 2003. Debt was reduced from Ps. 195.4 million as of December 31, 2002 to Ps. 164.1 million as of September 30, 2003. The current ratio reached 4.3x compared to 1.0x. Capex during the first three quarters was Ps. 551.3 million, financed entirely from resources generated by the operations. Company Description Industrias Bachoco S.A. de C.V. is Mexico's leading producer and processor of poultry products with over 700 production and distribution facilities throughout the country. The Company is also Mexico's third largest producer of table eggs. It sells swine to meat packers for the production of pork products and is an important player in the balanced feed industry. The Company posted net sales of Ps. 10,357.4 million for fiscal 2002 divided among the Company's four main product lines as follows: 80.89 % chicken and chicken-related products, 6.87% balanced feed, 9.43% table eggs, and 2.81% swine and other lines. Industrias Bachoco's shares are listed on the Mexican Stock Exchange and its American Depositary Shares (ADS) are listed on the New York Stock Exchange. One ADS represents six units each consisting of one Series B and one Series L Share. For more information, please visit Bachoco's website at http://www.bachoco.com.mx. This press release contains certain forward-looking statements that are subject to a number of uncertainties, assumptions and risk factors that may influence its accuracy. Actual results may differ. Factors that could cause these projections to differ, include, but are not limited to: supply and demand, industry competition, environmental risks, economic and financial market conditions in Mexico and operating cost estimates. For more information regarding Bachoco and its outlook, please contact the Company's Investor Relations Department. INDUSTRIAS BACHOCO, S.A. DE C.V. AND SUBSIDIARIES CONSOLIDATED INCOME STATEMENT (millions of constant pesos as of September 30, 2003, and millions of U.S. dollars, except per share data) 3Q03 3Q02 9M03 9M02 US$(1) Ps. Ps. US$(1) Ps. Ps. --------------- -------- ---------------- -------- Net Sales 228 2,508 2,607 709 7,805 7,939 Cost of Sales 190 2,094 1,927 565 6,218 5,785 Gross Profit 38 414 680 144 1,587 2,154 Selling, General and Administrative Expenses 35 390 368 104 1,141 1,103 Operating Income 2 24 312 41 446 1,051 Comprehensive Financing Cost (Income) Interest Expense (Income) (5) (58) (24) (11) (117) (55) Foreign Exchange Loss (gain) (2) (20) (7) (3) (28) (34) Gain from Monetary Position 0 5 1 1 12 (5) Total (7) (73) (30) (12) (133) (93) Other Income Net 1 9 (3) (2) (22) (6) Income before Provisions for Income Tax, Employee Profit Sharing and Minority Interest 10 106 339 51 557 1,138 Provisions for: Income Tax & Asset Tax (1) (9) (14) (3) (32) (39) Employee Profit Sharing - - - - - - Deferred Income Taxes (1) (15) (56) (8) (89) 11 Income before Minority Interest 8 83 269 40 436 1,110 Minority Interest (0) (1) (1) (0) (3) (1) Net Income 8 83 268 39 434 1,110 Effects of Bulletin E-1 (1) (13) 0 3 32 0 Net income after Bulletin e-1 6 70 268 42 466 1,110 Weighted Average Units Out. (000) 298,754 298,754 297,803 298,106 298,106 297,899 Net Income per Unit 0.02 0.23 0.90 0.14 1.56 3.73 Dividend per Unit - - - 0.09 1.01 0.95 - -------------------------------- -------- ---------------- -------- (1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps.11.003 per U.S. dollar, the noon buying rate at September 30, 2003. INDUSTRIAS BACHOCO, S.A. DE C.V. AND SUBSIDIARIES CASH FLOW STATEMENT (millions of constant pesos as of September 30, 2003, and millions of U.S. dollars) September September 30, 2003 30, 2002 US$(1) Ps. Ps. --------- ------ --------- OPERATING ACTIVITIES: Net Income 42 466 1,110 Adjustments to Reconcile Net Income to Resources Provided by Operating Activities: Depreciation and Others 24 260 242 Changes in Operating Assets and Liabilities 20 215 82 Deferred Income Taxes 6 61 (82) RESOURCES PROVIDED BY OPERATING ACTIVITIES 91 1,002 1,352 FINANCING ACTIVITIES: Increase of Capital Stock 0 0 0 Proceeds from Long-term Debt (3) (39) 4 Proceeds from Short-term Debt 6 70 57 Repayment of Long-term Debt and Notes Payable (12) (135) (156) Decrease in Long-term Debt in Constant Pesos 7 73 (20) Cash Dividends Paid (27) (301) (284) Others 0 1 (0) RESOURCES PROVIDED BY (USED IN) FINANCING (30) (332) (400) INVESTING ACTIVITIES: Acquisition of Property, Plant and Equipment (41) (443) (255) Minority Interest 0 2 (1) Others 0 5 18 RESOURCES USED IN INVESTING ACTIVITIES (41) (437) (237) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 20 233 714 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 158 1,735 1,265 CASH AND CASH EQUIVALENTS AT END OF PERIOD 178 1,968 1,979 - ----------------------------------------------------- ------ --------- (1) Peso amounts have been translated in to U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 11.003 per U.S. dollar, the noon buying rate at September 30, 2003. INDUSTRIAS BACHOCO, S.A. DE C.V. AND SUBSIDIARIES Consolidated Condensed Balance Sheets (millions of constant pesos as of September 30, 2003, and millions of U.S. dollars, except per share data) September December 30, 2003 31, 2002 US$(1) Ps. Ps. --------- ------- -------- ASSETS: Current Assets Cash and Cash Equivalents 179 1,968 1,735 Accounts Receivable less Allowance for Doubtful Accounts 28 310 390 Inventories 181 1,992 1,764 Other Current Assets 30 334 330 Total Current Assets 418 4,603 4,219 Non Current Assets Net Property, Plant and Equipment 694 7,639 7,296 Other Non Current Assets 30 327 315 Total Non Current Assets 724 7,967 7,612 TOTAL ASSETS 1,142 12,570 11,831 LIABILITIES: Current Liabilities Notes Payable to Banks 6 68 120 Trade Accounts Payable 62 678 268 Other Accrued Liabilities 29 314 153 Total Current Liabilities 96 1,060 542 Long-Term Liabilities Long-Term Debt 9 96 75 Labor Obligations 4 43 29 Deferred Income Taxes 141 1,554 1,492 Total Long-Term Liabilities 154 1,694 1,597 TOTAL LIABILITIES 250 2,753 2,139 STOCKHOLDERS' EQUITY: Capital stock 175 1,923 1,923 Premium in Public Offering of Shares 46 510 546 Retained Earnings 969 10,663 9,452 Net Income for the Year 42 466 1,513 Deficit from Restatement of Stockholders' Equity (257) (2,826) (2,767) Reserve for Repurchase of Shares 20 224 171 Minimum Seniority Premium Liability Adjustment 0 0 (1) Effect of Deferred Income Taxes (108) (1,186) (1,186) Total Majority Stockholder's Equity 888 9,773 9,650 Minority Interest 4 44 42 TOTAL STOCKHOLDERS' EQUITY 892 9,816 9,692 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1,142 12,570 11,831 - ----------------------------------------------------- ------- -------- (1) Peso amounts have been translated into U.S. dollars, solely for the convenience of the reader, at the rate of Ps. 11.003 per U.S. dollar, the noon buying rate at September 30, 2003. CONTACT: Industrias Bachoco S.A. de C.V., Mexico Cristobal Mondragon or Maria Appendini phone: 011-52-461-618-3555 email: maria.appendini@bachoco.net or i-advize Corporate Communications, New York Melanie Carpenter or Blanca Hirani, 212-406-3690 bachoco@i-advize.com SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Industrias Bachoco, S.A. de C.V. (Registrant) Date: October 27, 2003 By: /s/ CP Daniel Salazar Ferrer ------------------------------- Name: CP Daniel Salazar Ferrer Title: Financial Director -----END PRIVACY-ENHANCED MESSAGE-----