Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil Hydroworld Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Industrias Bachoco Announces Fourth Quarter and Full Year 2021 Results By: Industrias Bachoco, S.A.B. de C.V. via Business Wire February 03, 2022 at 17:15 PM EST 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 (“4Q21”) and full year (“2021”) ending on December 31st, 2021. All figures have been prepared in accordance with International Financial Reporting Standard (“IFRS”) and are presented in nominal million Mexican Pesos (“$”). HIGHLIGHTS 2021 Net sales increased 15.9% in 4Q21 and increased 18.8% in year 2021 vs equivalent periods of 2020. EBITDA margin was 4.1% for 4Q21 and 9.0% for the whole year. Earnings per basic and diluted share totaled $1.08 for the quarter and $8.45 for the year. CEO COMMENTS Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: “2021 was a year more in line with seasonal behavior compared to 2020. Which means, a year with a very good first half vs a challenging second one, particularly in terms of profitability. In the overall, we consider that, a balanced supply and demand and our participation in all the main channels allowed us to optimize our sales mix and deliver improved results vs full year 2020. Particularly for the 4Q21 we showed a recover in our volume sold, mainly in poultry, which reinforces our commitment with customers and market. More volume sold and better prices YOY allowed us to reach an increase in sales of 15.9% for the quarter and 18.8% for the full year. On the other hand, regarding our cost of sales, challenges in commodity prices remained. This has had a negative effect in our operations both Mexico and the U.S. Just for the quarter, our combined cost of sales increased 27.8% vs 4Q20 and 18.1% vs full year 2020. However, we managed to deliver positive results for the quarter and year-end. Our EBITDA was $881.7 million for 4Q21 and $7,359.9 million for 2021 with margins of 4.1% and 9.0% respectively. Those results allowed us to remain with a solid financial position generating net cash of $18,783.1 million an increase of 13.6% compared to 2020. This strength allowed us not only to face the volatility and challenges of our industry but also to support our growth plans. In this regard, after year-end, we announced the acquisition of RYC Alimentos which results will be consolidated in our 2022 financials. We look forward to start with the integration process of this operation in order to capture the synergies identified.” EXECUTIVE SUMMARY 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 2021. QUARTERLY RESULTS NET SALES BY GEOGRAPHY In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Sales 21,251.5 18,329.3 2,922.2 15.9 Net sales in Mexico 15,937.3 13,781.3 2,156.1 15.6 Net sales in the U.S. 5,314.2 4,548.0 766.1 16.8 NET SALES BY SEGMENT In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Sales 21,251.5 18,329.3 2,922.2 15.9 Poultry 18,598.1 16,138.1 2,460.0 15.2 Other 2,653.4 2,191.2 462.2 21.1 NET VOLUME SOLD BY SEGMENT In tons Change 4Q21 4Q20 Volume % Total sales volume: 605,925 585,064 20,860.8 3.6 Poultry 467,942 447,605 20,337.3 4.5 Others 137,983 137,459 523.5 0.4 The Company’s 4Q21 net sales totaled $21,251.5 million; $2,922.2 million or 15.9% more than $18,329.3 million reported in 4Q20. The increase is a result of higher volume sold in poultry as well as higher prices in our main business lines. In 4Q21, sales of our U.S. operations represented 25.0% of our total sales compared to 24.8% in 4Q20. GROSS PROFIT In millions of pesos 4Q21 4Q20 Change $ $ $ % Cost of sales 18,488.2 14,468.2 4,020.1 27.8 Gross profit 2,763.3 3,861.2 (1,097.9) (28.4) Gross margin 13.0% 21.1% - - In 4Q21, cost of sales was $18,488.2 million; $4,020.1 million or 27.8% higher than $14,468.2 million reported in 4Q20. This increase was mainly due to higher unit cost in our main business lines as we continued observing year over year increases in prices of our main raw materials. The Company´s gross profit in 4Q21 was $2,763.3 million, lower than the gross profit of $3,861.2 million in 4Q20, with a gross margin of 13.0% for 4Q21 vs 21.1% in 4Q20. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (“SG&A”) In millions of pesos 4Q21 4Q20 Change $ $ $ % Total SG&A 2,145.5 1,661.9 483.5 29.1 Total SG&A expenses in 4Q21 were $2,145.5 million; $483.5 million higher than the $1,661.9 million reported in 4Q20. Total SG&A expenses as a percentage of net sales represented 10.1% in 4Q21 and 9.1% in 4Q20. OTHER INCOME (EXPENSE), NET In millions of pesos 4Q21 4Q20 Change $ $ $ % Other income (expense), net (108.3) (51.3) (57.0) 111.0 This item mainly includes the sale of unused assets as well as hens and other by-products. We record such sales as expenses when the sale price is below the book value of those assets. In 4Q21, we recorded other expenses of $108.3 million, compared with other expenses of $51.3 million reported in 4Q20. OPERATING INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Operating income 509.5 2,147.9 (1,638.4) (76.3) Operating margin 2.4% 11.7% - - Operating income in 4Q21 totaled $509.5 million; $1,638.4 million lower than the Operating income of $2,147.9 million reported in 4Q20. This represents an operating margin of 2.4% for 4Q21, versus 11.7% operating margin in the same period of 2020. The decrease in operating income is mainly attributed to higher raw material costs. NET FINANCIAL INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Financial Income 149.6 (1,154.6) 1,304.2 (113.0) Financial Income 211.5 (1,111.7) 1,323.1 (119.0) Financial Expense 61.8 42.9 18.9 44.0 In 4Q21, the Company reported net financial income $149.6 million, compared to a financial loss of $1,154.6 million reported in the same period of 2020. Of the Financial Income, exchange rate valuation in 4Q21 was $32.4 million vs a negative $1,206.9 million obtained in 4Q20. TAXES FOR THE PERIOD In millions of pesos 4Q21 4Q20 Change $ $ $ % Total Taxes 49.0 3.3 45.7 1,377.0 Income tax 486.4 679.1 (192.7) (28.4) Deferred income tax (437.4) (675.8) 238.4 (35.3) Total taxes for the 4Q21 were $49.0 million, compared with total taxes of $3.3 million of the same period of 2020. NET CONTROLLING INTEREST INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Net income 610.2 990.0 (379.8) (38.4) Net margin 2.9% 5.4% - - Non-Controlling Interest income (38.0) (3.8) (34.2) n/a Net controlling interest income 648.2 993.8 (345.6) (34.8) Basic and diluted income per share1 1.08 1.66 (0.58) n/a Basic and diluted income per ADR2 12.97 19.88 (6.9) n/a Weighted average Shares outstanding3 599,624 599,820 - - 1 In pesos 2 in pesos, one ADR equals to twelve shares 3 In thousands of shares The net controlling interest income for 4Q21 was $648.2 million, representing $1.08 pesos of earnings per share, compared with a net controlling interest income of $993.8 million, which represented a $1.66 pesos of earnings per share in 4Q20. This decrease is mainly attributed to lower operating results. EBITDA In millions of pesos 4Q21 4Q20 Change $ $ $ % Net controlling interest income 648.2 993.8 (345.6) (34.8) Income tax expense (benefit) 49.0 3.3 45.7 1,377.0 Result in associates (38.0) (3.8) (34.2) 895.5 Net finance (income) expense (149.6) 1,154.6 (1,304.2) (113.0) Depreciation and amortization 372.1 307.8 64.4 20.9 EBITDA 881.7 2,455.7 (1,574.0) (64.1) EBITDA Margin (%) 4.1% 13.4% - - Net revenues 21,251.5 18,329.3 2,922.2 15.9 EBITDA in 4Q21 reached $881.7 million representing an EBITDA margin of 4.1%, compared to an EBITDA of $2,455.7 million in 4Q20, with an EBITDA margin of 13.4%. ACCUMULATED RESULTS NET SALES BY GEOGRAPHY In millions of pesos 2021 2020 Change $ $ $ % Net Sales 81,699.1 68,792.0 12,907.1 18.8 Net sales in Mexico 61,468.1 49,303.2 12,164.9 24.7 Net sales in the U.S. 20,231.0 19,488.8 742.2 3.8 NET SALES BY SEGMENT In millions of pesos 2021 2020 Change $ $ $ % Net Sales 81,699.1 68,792.0 12,907.1 18.8 Poultry 71,518.2 61,323.9 10,194.3 16.6 Other 10,180.9 7,468.1 2,712.8 36.3 NET VOLUME SOLD BY SEGMENT In metric tons Change 2021 2020 Volume % Total sales volume: 2,318,049 2,296,229 21,820.8 1.0 Poultry 1,769,071 1,772,528 (3,457.1) (0.2) Others 548,978 523,700 25,277.9 4.8 In 2021, net sales totaled $81,699.1 million; $12,907.1 million or 18.8% more than the $68,792.0 million reported in the same period of 2020. In 2021, sales of our U.S. operations represented 24.8% of our total sales, compared with 28.3% in 2020. OPERATING RESULTS In millions of pesos 2021 2020 Change $ $ $ % Cost of Sales 68,147.9 57,707.6 10,440.3 18.1 Gross Profit 13,551.2 11,084.4 2,466.7 22.3 Total SG&A 7,302.9 6,420.4 882.5 13.7 Other Income (expense) (352.6) (362.5) 9.9 (2.7) Operating Income 5,895.7 4,301.5 1,594.2 37.1 Net Financial Income 831.9 882.2 (50.3) (5.7) Income Tax 1,782.2 1,211.6 570.6 47.1 Net Income 4,945.3 3,972.1 973.2 24.5 Non-controlling interest (123.8) 36.4 (160.2) (439.9) Net controlling interest Income 5,069.1 3,935.7 1,133.4 28.8 In the 2021, the cost of sales totaled $68,147.9 million; $10,440.3 million or 18.1% higher than $57,707.6 million reported in the 2020. As a result, we reached a gross profit of $13,551.2 million and a gross margin of 16.6% in 2021, when compared to $11,084.4 million of gross profit and a gross margin of 16.1% reached in the same period of 2020. Total SG&A in 2021 were $7,302.9 million; $882.5 million or 13.7% higher than the $6,420.4 million reported in 2020. In 2021 total SG&A expenses as a percentage of net sales represented 8.9% in 2021 and 9.3% in 2020. In 2021 we had other expenses of $352.6 million, compared with other expenses of $362.5 million reported in 2020. Operating income in 2021 was $5,895.7 million, which represents an operating margin of 7.2%, an increase from an operating income of $4,301.5 million with an operating margin of 6.3% in 2020. Net financial income in 2021 was $831.9 million lower when compared to a net financial income of $882.2 million in 2020. Total taxes were $1,782.2 million as of December 31st, 2021. These include $1,540.4 million of income tax and $241.8 million of deferred income taxes. Those figures compare to an income tax of $1,296.5 million and deferred income taxes of $(84.9) million in 2020. After Non-controlling interest, all the above resulted in a Net controlling interest income of $5,069.1 million or 6.2% margin in 2021, which represents $8.45 pesos of earnings per share; while in the 2020 the Net controlling interest income totaled $3,935.7 million, 5.7% margin and $6.56 pesos of income per share. EBITDA In millions of pesos 2021 2020 Change $ $ $ % Net controlling interest profit 5,069.1 3,935.7 1,133.4 28.8 Income tax expense (benefit) 1,782.2 1,211.6 570.6 47.1 Result in associates (123.8) 36.4 (160.2) (439.9) Net finance (income) expense (831.9) (882.2) 50.3 (5.7) Depreciation and amortization 1,464.2 1,735.1 (271.0) (15.6) EBITDA 7,359.9 6,036.7 1,323.2 21.9 EBITDA Margin (%) 9.0% 8.8% - - Net revenues 81,699.1 68,792.0 12,907.1 18.8 EBITDA in 2021 reached $7,359.9 million, representing an EBITDA margin of 9.0%, compared to an EBITDA of $6,036.7 million in 2020, with an EBITDA margin of 8.8%. BALANCE SHEET BALANCE SHEET DATA In millions of pesos Dec. 31, 2021 Dec. 31, 2020 Change $ $ $ % TOTAL ASSETS 65,934.8 58,475.0 7,459.8 12.8 Cash and cash equivalents 20,707.1 19,242.4 1,464.7 7.6 Accounts receivable 5,252.5 4,366.7 885.8 20.3 TOTAL LIABILITIES 17,716.0 14,548.2 3,167.8 21.8 Accounts payable 8,565.1 5,834.0 2,731.1 46.8 Short-term debt 1,924.0 1,251.7 672.3 53.7 Long-term debt - 1,460.4 (1,460.4) (100.0) TOTAL STOCKHOLDERS’ EQUITY 48,218.8 43,926.8 4,292.0 9.8 Capital stock 1,173.9 1,174.3 (0.4) (0.0) Cash and equivalents as of December 31st, 2021, totaled $20,707.1 million vs $19,242.4 million as of December 31st, 2020. Total debt as of December 31st, 2021, was $1,924.0 million, compared to $2,712.1 million reported as of December 31st, 2020. Net cash as of December 31st, 2021, was $18,783.1 million, compared to net cash of $16,530.3 million as of December 31st, 2020. CAPITAL EXPENDITURES In millions of pesos 2021 2020 Change $ $ $ % Capital Expenditures 3,500.0 2,752.3 747.7 27.2 Total CAPEX for 2021 was $3,500.0 million vs $2,752.3 million in 2020, mainly allocated toward organic growth and productivity projects across all our facilities. STOCK INFORMATION As of December 31, 2021 Total Shares 600,000,000 Total free float 26.75% Market cap (millions of pesos) $42,810 Source: Yahoo Finances SHARE PRICE Mexican Stock Exchange The New York Stock Exchange Ticker Symbol: Bachoco Ticker Symbol: IBA In nominal pesos per Share In U.S. Dollar per ADR Month High Low Close High Low Close December 72.74 68.29 71.35 42.54 39.46 42.54 November 73.10 70.95 71.17 42.43 39.84 39.84 October 75.53 71.72 73.02 44.36 41.70 42.45 September 77.07 73.02 75.98 47.11 43.82 44.20 August 73.90 70.47 73.45 44.24 42.17 43.75 July 78.00 72.86 72.86 47.00 43.89 43.89 June 77.89 73.93 75.27 47.60 43.93 46.32 May 77.50 74.92 76.52 46.76 44.55 46.40 April 75.39 68.04 74.73 45.47 39.73 44.47 March 69.42 67.16 68.04 40.45 38.30 39.95 February 71.99 68.02 69.42 43.19 39.67 39.67 January 73.60 69.22 69.28 44.66 41.14 41.14 ANALYST COVERAGE Institution Analyst name E-mail ACTINVER Enrique Mendoza Farias emendoza@actinver.com.mx BBVA BANCOMER Pablo Abraham Peregrina pablo.abraham@bbva.com GBM Luis Rodrigo Willard Alonso lrwillard@gbm.com INTERCAM Richard Horbach Martinez rhorbach@intercam.com.mx JP MORGAN Ulises Argote ulises.argote@jpmorgan.com SANTANDER Alanis Peña Alan aalanis@santander.com.mx BANK OF AMERICA Fernando Olvera folvera@bofa.com APPENDICES For reference, some figures have been translated into millions of U.S. dollars (“USD”) using an exchange rate of $20.51 per USD, which corresponds to the rate at the close of December 31st, 2021 according to Mexico’s National Bank. Consolidated Statement of Financial Position Consolidated Statement of Income Consolidated Statement of Cash Flows Derivatives Position Report CONSOLIDATED STATEMENT OF FINANCIAL POSITION -Unaudited- In U.S. Dollar December 31, December 31*, In million pesos 2021 2021 2020* TOTAL ASSETS $ 3,214.8 65,934.8 58,475.0 Total current assets 1,851.3 37,970.5 32,586.0 Cash and cash equivalents 1,009.6 20,707.1 19,242.4 Total accounts receivable 256.1 5,252.5 4,366.7 Inventories 445.9 9,145.6 7,701.0 Other current assets 139.7 2,865.3 1,275.9 Total non current assets 1,363.4 27,964.3 25,889.0 Net property, plant and equipment 1,061.0 21,762.0 19,733.8 Other non current Assets 302.4 6,202.3 6,155.2 TOTAL LIABILITIES $ 863.8 17,716.0 14,548.2 Total current liabilities 618.4 12,682.5 8,179.8 Notes payable to banks 93.8 1,924.0 1,251.7 Accounts payable 417.6 8,565.1 5,834.0 Other taxes payable and other accruals 106.9 2,193.3 1,094.1 Total long-term liabilities 245.4 5,033.5 6,368.4 Long-term debt - - 1,460.4 Other non current liabilities 58.9 1,207.8 1,033.0 Deferred income taxes 186.5 3,825.7 3,875.0 TOTAL STOCKHOLDERS' EQUITY $ 2,351.0 48,218.8 43,926.8 Capital stock 57.2 1,173.9 1,174.3 Commission in shares issued 20.2 414.1 413.4 Repurchased shares - - - Retained earnings 2,192.0 44,957.2 40,874.4 Others accounts 57.7 1,182.7 855.5 Non controlling interest 23.9 490.9 609.2 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,214.8 65,934.8 58,475.0 *Audited CONSOLIDATED STATEMENT OF INCOME Fourth Quarter Results, ended December 31st: -Unaudited- U.S. Dollar In millions pesos 2021 2021 2020* Net sales $ 1,036.2 21,251.5 18,329.3 Cost of sales 901.4 18,488.2 14,468.2 Gross profit 134.7 2,763.3 3,861.2 SG&A 104.6 2,145.5 1,661.9 Other income (expenses), net (5.3 ) (108.3 ) (51.3 ) Operating income 24.8 509.5 2,147.9 Net finance income 7.3 149.6 (1,154.6 ) Income tax 2.4 49.0 3.3 Net Income $ 29.7 610.2 990.0 Non-controlling interest (1.85 ) (38.0 ) (3.8 ) Net controlling interest profit 31.60 648.2 993.8 Basic and diluted earnings per share 0.05 1.08 1.66 Basic and diluted earnings per ADR 0.63 12.97 19.88 Weighted average Shares outstanding1 599,624 599,624 599,820 EBITDA Result $ 43.0 881.7 2,455.7 Gross margin 13.0 % 13.0 % 21.1 % Operating margin 2.4 % 2.4 % 11.7 % Net margin 3.0 % 2.9 % 5.4 % EBITDA margin 4.1 % 4.1 % 13.4 % 1 In thousands * Audited CONSOLIDATED STATEMENT OF INCOME Annual Results -Unaudited- U.S. Dollar In millions pesos 2021 2021 2020* Net sales $ 3,983.4 81,699.1 68,792.0 Cost of sales 3,322.7 68,147.9 57,707.6 Gross profit 660.7 13,551.2 11,084.4 Selling, general and administrative expenses 356.1 7,302.9 6,420.4 Other income (expenses), net (17.2 ) (352.6 ) (362.5 ) Operating income 287.5 5,895.7 4,301.5 Net finance income 40.6 831.9 882.2 Income tax 86.9 1,782.2 1,211.6 Net income $ 241.1 4,945.3 3,972.1 Non-controlling interest (6.04 ) (123.8 ) 36.4 Net controlling interest profit 247.2 5,069.1 3,935.7 Basic and diluted earnings per share 0.41 8.45 6.56 Basic and diluted earnings per ADR 4.95 101.4 78.74 Weighted average Shares outstanding1 599,730 599,730 599,818 EBITDA Result $ 358.8 7,359.9 6,036.7 Gross margin 16.6 % 16.6 % 16.1 % Operating margin 7.2 % 7.2 % 6.3 % Net margin 6.2 % 6.1 % 5.8 % EBITDA margin 9.0 % 9.0 % 8.8 % 1 In thousands * Audited CONSOLIDATED STATEMENT OF CASH FLOWS In million of pesos -Unaudited- U.S. Dollar December 31, 2021 2021 2020 NET MAJORITY INCOME BEFORE INCOME TAX $ 328.0 6,727.5 5,183.7 ITEMS RELATING TO INVESTING ACTIVITIES: 80.1 1,642.6 1,640.9 Depreciation and others 89.2 1,829.6 2,042.9 Income (loss) on sale of plant and equipment 6.1 125.1 13.0 Other Items (15.2 ) (312.1 ) (414.9 ) NET CASH GENERATED FROM NET INCOME BEFORE TAXES 408.1 8,370.1 6,824.6 CASH GENERATED OR USED IN THE OPERATION: (11.8 ) (243.0 ) (1,043.5 ) Decrease (increase) in accounts receivable (19.4 ) (398.1 ) (322.8 ) Decrease (increase) in inventories (89.0 ) (1,824.8 ) (638.4 ) Increase (decrease) in accounts payable 241.4 4,950.6 288.5 Other Items (144.8 ) (2,970.7 ) (370.9 ) NET CASH FLOW FROM OPERATING ACTIVITIES 396.2 8,127.1 5,781.2 NET CASH FLOW FROM INVESTING ACTIVITIES (129.9 ) (2,663.6 ) (1,606.8 ) Acquisition of property, plant and equipment (170.7 ) (3,501.0 ) (2,346.4 ) Proceeds from sales of property plant and equipment 1.2 23.7 23.8 Other Items 39.7 813.7 715.8 CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES 266.4 5,463.5 4,174.4 Net cash provided by financing activities: (195.0 ) (3,998.8 ) (4,096.8 ) Proceeds from loans 84.7 1,737.2 4,030.7 Principal payments on loans (110.2 ) (2,261.2 ) (6,762.2 ) Dividends paid (41.5 ) (851.6 ) (793.6 ) Other items (127.9 ) (2,623.1 ) (571.7 ) Net increase (decrease) in cash and equivalents 71.4 1,464.7 77.6 Cash and investments at the beginning of year $ 938.2 19,242.4 19,164.8 CASH AND INVESTMENTS AT END OF PERIOD $ 1,009.6 20,707.1 19,242.4 DERIVATIVES POSITION REPORT Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 TYPE OF FINANCIAL INSTRUMENT OBJECTIVE NOTIONAL VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTS DUE BY YEAR GUARANTIES REQUIRED 4Q-2021 3Q-2021 4Q-2021 3Q-2021 Forward Vanilla Hedge $ 11,238 $ 20.51 $ 20.64 $ -128 $ 63,580 100% in 2022 The deals consider the possibility of margin calls but not another kind of guarantee Futures for corn, soybean meal and soybean oil Hedge $ 149,102 CORN CORN $ 4,175 -$ 3,890 100% in 2022 In USD per Bushel In USD per Bushel month price month price Mar-22 $ 5.933 Dec-21 $ 5.368 Sep-22 $ 5.628 Mar-22 $ 5.445 SOYBEAN MEAL SOYBEAN MEAL In USD per ton In USD per ton month price month price Dec-21 $ 328.7 Jan-22 $ 331.0 Mar-22 $ 399.1 Mar-22 $ 333.4 May-22 $ 397.1 May-22 $ 337.1 Jul-22 $ 397.6 Jul-22 $ 340.5 Aug-22 $ 394.6 Aug-22 $ 341.4 Sep-22 $ 388.0 Sep-22 $ 341.3 Oct-22 $ 380.2 Oct-22 $ 339.1 Dec-22 $ 380.0 Dec-22 $ 340.3 SOYBEAN OIL In US cents per pound Month Price Mar-22 $ 56.53 Options of Corn Hedge $ 1,825 CORN CORN $ 340 $ 23,350 100% in 2022 In USD per Bushel In USD per Bushel month price month price Dec-21 $ 5.368 Mar-22 $ 5.933 Mar-22 $ 5.445 Options of soybean meal Hedge $ 44,959 SOYBEAN MEAL SOYBEAN MEAL $ 3,949 -$ 21,390 100% in 2022 In USD per ton In USD per ton month price month price Oct-21 $ 343.1 Dec-21 $ 328.7 Jan-22 $ 331.0 Mar-22 $ 399.1 Mar-22 $ 333.4 May-22 $ 397.1 May-22 $ 337.1 -The total financial instruments do not exceed 5% of total assets as of December 31, 2021. -The notional value represents the net position as of December 31, 2021 at the exchange rate of Ps.20.51 per one dollar. -A negative value means an unfavorable effect for the Company. Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 PROBABLE SCENARIO TYPE OF FINANCIAL INSTRUMENT REASONABLE VALUE VALUE OF THE RELATED COMMODITY EFFECT ON THE INCOME STATEMENT EFFECT ON THE CASH FLOW(3) Reference Value (1) -2.5% 2.5% 5.0% -2.5% 2.5% 5.0% Forward Vanilla -$ 128 $ 20.00 $ 21.02 $ 21.54 Direct -$ 5,889 $ 5,634 $ 11,396 -5% 5% 10% -5% 5% 10% Futures of Corn: (2) $ 4,175 $ 5.636 $ 6.229 $ 6.526 The effect will materialize as the inventory is consumed -$ 3,280 $ 11,630 $ 19,085 Futures of Soybean Meal: (2) $ 379.1 $ 419.1 $ 439.0 Futures for Soy Oil (2) $ 53.7 $ 59.4 $ 62.2 Options for Corn $ 340 $ 5.636 $ 6.229 $ 6.526 $ 249 $ 431 $ 522 Options of Soybean Meal $ 3,949 $ 379.1 $ 419.1 $ 439.0 $ 1,701 $ 6,197 $ 8,445 (1) The reference value is the exchange rate of Ps. $20.51 per USD as of December 31, 2021. (2) The reference values are; the future of corn for March 2022, $5.9325 USD/bushel, the future of soybeanmeal for March 2022, $399.10USD/ton and the future of soybean oil for March 2022, $56.53 usd cts / pound 'All the evaluations are performed according with the corresponding future, here only the first month futures are shown. (3) The Company has credit lines with the majority of its counterparts, so that the effect in cash flow is lower than the amount shown. -A negative value means an unfavorable effect for the Company. Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 STRESS SCENARIO TYPE OF FINANCIAL INSTRUMENT REASONABLEVALUE VALUE OF THE RELATED COMMODITY EFFECT ON THEINCOMESTATEMENT EFFECT ON THE CASH FLOW Reference Value -50% -25% 25% 50% -50% -25% 25% 50% Forward Vanilla -$128 $10.26 $15.38 $25.64 $30.77 Direct -$115,362 -$57,745 $57,490 $115,107 CONFERENCE CALL INFORMATION The Company will host its fourth quarter 2021 earnings call, on Friday, February 4th, 2022. The earnings call will take place at 11:00 am Central Time (12:00 pm ET). Toll free in the U.S.: 1 (888) 771-4371 Toll free in Mexico: 001 866 779 0965 A current list of available local and international free phone telephone numbers: http://web.meetme.net/r.aspx?p=12&a=UfuOzYSxaaXZLN Confirmation Number: 50274535 COMPANY DESCRIPTION Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally. The Company was founded in 1952, and became a public company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine, and turkey and beef value-added products. Bachoco owns and manages more than a thousand facilities, organized in nine production complexes and 80 distribution centers in Mexico, and a production complex in the United States. Currently the Company employs more than 29,000 people. The Company is rated AAA (MEX), the highest rating awarded by Fitch Mexico, S.A. de C.V., and HR AAA which signals that the Company and the offering both have the highest credit quality by HR Ratings de Mexico S.A. de C.V. DISCLAIMER The document contains certain information that could be considered forward looking statements concerning anticipated future events and performance of the Company. The statements reflect management’s current beliefs based on information currently available and are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Information Form, which could cause our actual results to differ materially from the forward-looking statements contained in this document. Those risks and uncertainties include risks associated with ownership in the poultry industry, competition for investments within the poultry industry, shareholder liability, governmental regulation, and environmental matters. As a result, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Industrias Bachoco, S.A.B. de C.V., undertakes no obligation to publicly update or revise any forward-looking statement. View source version on businesswire.com: https://www.businesswire.com/news/home/20220203005288/en/Contacts IR contact information: Maria Guadalupe Jaquez maria.jaquez@bachoco.net Andrea Guerrero andrea.guerrero@bachoco.net T. +52(461)618 3555 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
Industrias Bachoco Announces Fourth Quarter and Full Year 2021 Results By: Industrias Bachoco, S.A.B. de C.V. via Business Wire February 03, 2022 at 17:15 PM EST 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 (“4Q21”) and full year (“2021”) ending on December 31st, 2021. All figures have been prepared in accordance with International Financial Reporting Standard (“IFRS”) and are presented in nominal million Mexican Pesos (“$”). HIGHLIGHTS 2021 Net sales increased 15.9% in 4Q21 and increased 18.8% in year 2021 vs equivalent periods of 2020. EBITDA margin was 4.1% for 4Q21 and 9.0% for the whole year. Earnings per basic and diluted share totaled $1.08 for the quarter and $8.45 for the year. CEO COMMENTS Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: “2021 was a year more in line with seasonal behavior compared to 2020. Which means, a year with a very good first half vs a challenging second one, particularly in terms of profitability. In the overall, we consider that, a balanced supply and demand and our participation in all the main channels allowed us to optimize our sales mix and deliver improved results vs full year 2020. Particularly for the 4Q21 we showed a recover in our volume sold, mainly in poultry, which reinforces our commitment with customers and market. More volume sold and better prices YOY allowed us to reach an increase in sales of 15.9% for the quarter and 18.8% for the full year. On the other hand, regarding our cost of sales, challenges in commodity prices remained. This has had a negative effect in our operations both Mexico and the U.S. Just for the quarter, our combined cost of sales increased 27.8% vs 4Q20 and 18.1% vs full year 2020. However, we managed to deliver positive results for the quarter and year-end. Our EBITDA was $881.7 million for 4Q21 and $7,359.9 million for 2021 with margins of 4.1% and 9.0% respectively. Those results allowed us to remain with a solid financial position generating net cash of $18,783.1 million an increase of 13.6% compared to 2020. This strength allowed us not only to face the volatility and challenges of our industry but also to support our growth plans. In this regard, after year-end, we announced the acquisition of RYC Alimentos which results will be consolidated in our 2022 financials. We look forward to start with the integration process of this operation in order to capture the synergies identified.” EXECUTIVE SUMMARY 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 2021. QUARTERLY RESULTS NET SALES BY GEOGRAPHY In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Sales 21,251.5 18,329.3 2,922.2 15.9 Net sales in Mexico 15,937.3 13,781.3 2,156.1 15.6 Net sales in the U.S. 5,314.2 4,548.0 766.1 16.8 NET SALES BY SEGMENT In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Sales 21,251.5 18,329.3 2,922.2 15.9 Poultry 18,598.1 16,138.1 2,460.0 15.2 Other 2,653.4 2,191.2 462.2 21.1 NET VOLUME SOLD BY SEGMENT In tons Change 4Q21 4Q20 Volume % Total sales volume: 605,925 585,064 20,860.8 3.6 Poultry 467,942 447,605 20,337.3 4.5 Others 137,983 137,459 523.5 0.4 The Company’s 4Q21 net sales totaled $21,251.5 million; $2,922.2 million or 15.9% more than $18,329.3 million reported in 4Q20. The increase is a result of higher volume sold in poultry as well as higher prices in our main business lines. In 4Q21, sales of our U.S. operations represented 25.0% of our total sales compared to 24.8% in 4Q20. GROSS PROFIT In millions of pesos 4Q21 4Q20 Change $ $ $ % Cost of sales 18,488.2 14,468.2 4,020.1 27.8 Gross profit 2,763.3 3,861.2 (1,097.9) (28.4) Gross margin 13.0% 21.1% - - In 4Q21, cost of sales was $18,488.2 million; $4,020.1 million or 27.8% higher than $14,468.2 million reported in 4Q20. This increase was mainly due to higher unit cost in our main business lines as we continued observing year over year increases in prices of our main raw materials. The Company´s gross profit in 4Q21 was $2,763.3 million, lower than the gross profit of $3,861.2 million in 4Q20, with a gross margin of 13.0% for 4Q21 vs 21.1% in 4Q20. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (“SG&A”) In millions of pesos 4Q21 4Q20 Change $ $ $ % Total SG&A 2,145.5 1,661.9 483.5 29.1 Total SG&A expenses in 4Q21 were $2,145.5 million; $483.5 million higher than the $1,661.9 million reported in 4Q20. Total SG&A expenses as a percentage of net sales represented 10.1% in 4Q21 and 9.1% in 4Q20. OTHER INCOME (EXPENSE), NET In millions of pesos 4Q21 4Q20 Change $ $ $ % Other income (expense), net (108.3) (51.3) (57.0) 111.0 This item mainly includes the sale of unused assets as well as hens and other by-products. We record such sales as expenses when the sale price is below the book value of those assets. In 4Q21, we recorded other expenses of $108.3 million, compared with other expenses of $51.3 million reported in 4Q20. OPERATING INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Operating income 509.5 2,147.9 (1,638.4) (76.3) Operating margin 2.4% 11.7% - - Operating income in 4Q21 totaled $509.5 million; $1,638.4 million lower than the Operating income of $2,147.9 million reported in 4Q20. This represents an operating margin of 2.4% for 4Q21, versus 11.7% operating margin in the same period of 2020. The decrease in operating income is mainly attributed to higher raw material costs. NET FINANCIAL INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Financial Income 149.6 (1,154.6) 1,304.2 (113.0) Financial Income 211.5 (1,111.7) 1,323.1 (119.0) Financial Expense 61.8 42.9 18.9 44.0 In 4Q21, the Company reported net financial income $149.6 million, compared to a financial loss of $1,154.6 million reported in the same period of 2020. Of the Financial Income, exchange rate valuation in 4Q21 was $32.4 million vs a negative $1,206.9 million obtained in 4Q20. TAXES FOR THE PERIOD In millions of pesos 4Q21 4Q20 Change $ $ $ % Total Taxes 49.0 3.3 45.7 1,377.0 Income tax 486.4 679.1 (192.7) (28.4) Deferred income tax (437.4) (675.8) 238.4 (35.3) Total taxes for the 4Q21 were $49.0 million, compared with total taxes of $3.3 million of the same period of 2020. NET CONTROLLING INTEREST INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Net income 610.2 990.0 (379.8) (38.4) Net margin 2.9% 5.4% - - Non-Controlling Interest income (38.0) (3.8) (34.2) n/a Net controlling interest income 648.2 993.8 (345.6) (34.8) Basic and diluted income per share1 1.08 1.66 (0.58) n/a Basic and diluted income per ADR2 12.97 19.88 (6.9) n/a Weighted average Shares outstanding3 599,624 599,820 - - 1 In pesos 2 in pesos, one ADR equals to twelve shares 3 In thousands of shares The net controlling interest income for 4Q21 was $648.2 million, representing $1.08 pesos of earnings per share, compared with a net controlling interest income of $993.8 million, which represented a $1.66 pesos of earnings per share in 4Q20. This decrease is mainly attributed to lower operating results. EBITDA In millions of pesos 4Q21 4Q20 Change $ $ $ % Net controlling interest income 648.2 993.8 (345.6) (34.8) Income tax expense (benefit) 49.0 3.3 45.7 1,377.0 Result in associates (38.0) (3.8) (34.2) 895.5 Net finance (income) expense (149.6) 1,154.6 (1,304.2) (113.0) Depreciation and amortization 372.1 307.8 64.4 20.9 EBITDA 881.7 2,455.7 (1,574.0) (64.1) EBITDA Margin (%) 4.1% 13.4% - - Net revenues 21,251.5 18,329.3 2,922.2 15.9 EBITDA in 4Q21 reached $881.7 million representing an EBITDA margin of 4.1%, compared to an EBITDA of $2,455.7 million in 4Q20, with an EBITDA margin of 13.4%. ACCUMULATED RESULTS NET SALES BY GEOGRAPHY In millions of pesos 2021 2020 Change $ $ $ % Net Sales 81,699.1 68,792.0 12,907.1 18.8 Net sales in Mexico 61,468.1 49,303.2 12,164.9 24.7 Net sales in the U.S. 20,231.0 19,488.8 742.2 3.8 NET SALES BY SEGMENT In millions of pesos 2021 2020 Change $ $ $ % Net Sales 81,699.1 68,792.0 12,907.1 18.8 Poultry 71,518.2 61,323.9 10,194.3 16.6 Other 10,180.9 7,468.1 2,712.8 36.3 NET VOLUME SOLD BY SEGMENT In metric tons Change 2021 2020 Volume % Total sales volume: 2,318,049 2,296,229 21,820.8 1.0 Poultry 1,769,071 1,772,528 (3,457.1) (0.2) Others 548,978 523,700 25,277.9 4.8 In 2021, net sales totaled $81,699.1 million; $12,907.1 million or 18.8% more than the $68,792.0 million reported in the same period of 2020. In 2021, sales of our U.S. operations represented 24.8% of our total sales, compared with 28.3% in 2020. OPERATING RESULTS In millions of pesos 2021 2020 Change $ $ $ % Cost of Sales 68,147.9 57,707.6 10,440.3 18.1 Gross Profit 13,551.2 11,084.4 2,466.7 22.3 Total SG&A 7,302.9 6,420.4 882.5 13.7 Other Income (expense) (352.6) (362.5) 9.9 (2.7) Operating Income 5,895.7 4,301.5 1,594.2 37.1 Net Financial Income 831.9 882.2 (50.3) (5.7) Income Tax 1,782.2 1,211.6 570.6 47.1 Net Income 4,945.3 3,972.1 973.2 24.5 Non-controlling interest (123.8) 36.4 (160.2) (439.9) Net controlling interest Income 5,069.1 3,935.7 1,133.4 28.8 In the 2021, the cost of sales totaled $68,147.9 million; $10,440.3 million or 18.1% higher than $57,707.6 million reported in the 2020. As a result, we reached a gross profit of $13,551.2 million and a gross margin of 16.6% in 2021, when compared to $11,084.4 million of gross profit and a gross margin of 16.1% reached in the same period of 2020. Total SG&A in 2021 were $7,302.9 million; $882.5 million or 13.7% higher than the $6,420.4 million reported in 2020. In 2021 total SG&A expenses as a percentage of net sales represented 8.9% in 2021 and 9.3% in 2020. In 2021 we had other expenses of $352.6 million, compared with other expenses of $362.5 million reported in 2020. Operating income in 2021 was $5,895.7 million, which represents an operating margin of 7.2%, an increase from an operating income of $4,301.5 million with an operating margin of 6.3% in 2020. Net financial income in 2021 was $831.9 million lower when compared to a net financial income of $882.2 million in 2020. Total taxes were $1,782.2 million as of December 31st, 2021. These include $1,540.4 million of income tax and $241.8 million of deferred income taxes. Those figures compare to an income tax of $1,296.5 million and deferred income taxes of $(84.9) million in 2020. After Non-controlling interest, all the above resulted in a Net controlling interest income of $5,069.1 million or 6.2% margin in 2021, which represents $8.45 pesos of earnings per share; while in the 2020 the Net controlling interest income totaled $3,935.7 million, 5.7% margin and $6.56 pesos of income per share. EBITDA In millions of pesos 2021 2020 Change $ $ $ % Net controlling interest profit 5,069.1 3,935.7 1,133.4 28.8 Income tax expense (benefit) 1,782.2 1,211.6 570.6 47.1 Result in associates (123.8) 36.4 (160.2) (439.9) Net finance (income) expense (831.9) (882.2) 50.3 (5.7) Depreciation and amortization 1,464.2 1,735.1 (271.0) (15.6) EBITDA 7,359.9 6,036.7 1,323.2 21.9 EBITDA Margin (%) 9.0% 8.8% - - Net revenues 81,699.1 68,792.0 12,907.1 18.8 EBITDA in 2021 reached $7,359.9 million, representing an EBITDA margin of 9.0%, compared to an EBITDA of $6,036.7 million in 2020, with an EBITDA margin of 8.8%. BALANCE SHEET BALANCE SHEET DATA In millions of pesos Dec. 31, 2021 Dec. 31, 2020 Change $ $ $ % TOTAL ASSETS 65,934.8 58,475.0 7,459.8 12.8 Cash and cash equivalents 20,707.1 19,242.4 1,464.7 7.6 Accounts receivable 5,252.5 4,366.7 885.8 20.3 TOTAL LIABILITIES 17,716.0 14,548.2 3,167.8 21.8 Accounts payable 8,565.1 5,834.0 2,731.1 46.8 Short-term debt 1,924.0 1,251.7 672.3 53.7 Long-term debt - 1,460.4 (1,460.4) (100.0) TOTAL STOCKHOLDERS’ EQUITY 48,218.8 43,926.8 4,292.0 9.8 Capital stock 1,173.9 1,174.3 (0.4) (0.0) Cash and equivalents as of December 31st, 2021, totaled $20,707.1 million vs $19,242.4 million as of December 31st, 2020. Total debt as of December 31st, 2021, was $1,924.0 million, compared to $2,712.1 million reported as of December 31st, 2020. Net cash as of December 31st, 2021, was $18,783.1 million, compared to net cash of $16,530.3 million as of December 31st, 2020. CAPITAL EXPENDITURES In millions of pesos 2021 2020 Change $ $ $ % Capital Expenditures 3,500.0 2,752.3 747.7 27.2 Total CAPEX for 2021 was $3,500.0 million vs $2,752.3 million in 2020, mainly allocated toward organic growth and productivity projects across all our facilities. STOCK INFORMATION As of December 31, 2021 Total Shares 600,000,000 Total free float 26.75% Market cap (millions of pesos) $42,810 Source: Yahoo Finances SHARE PRICE Mexican Stock Exchange The New York Stock Exchange Ticker Symbol: Bachoco Ticker Symbol: IBA In nominal pesos per Share In U.S. Dollar per ADR Month High Low Close High Low Close December 72.74 68.29 71.35 42.54 39.46 42.54 November 73.10 70.95 71.17 42.43 39.84 39.84 October 75.53 71.72 73.02 44.36 41.70 42.45 September 77.07 73.02 75.98 47.11 43.82 44.20 August 73.90 70.47 73.45 44.24 42.17 43.75 July 78.00 72.86 72.86 47.00 43.89 43.89 June 77.89 73.93 75.27 47.60 43.93 46.32 May 77.50 74.92 76.52 46.76 44.55 46.40 April 75.39 68.04 74.73 45.47 39.73 44.47 March 69.42 67.16 68.04 40.45 38.30 39.95 February 71.99 68.02 69.42 43.19 39.67 39.67 January 73.60 69.22 69.28 44.66 41.14 41.14 ANALYST COVERAGE Institution Analyst name E-mail ACTINVER Enrique Mendoza Farias emendoza@actinver.com.mx BBVA BANCOMER Pablo Abraham Peregrina pablo.abraham@bbva.com GBM Luis Rodrigo Willard Alonso lrwillard@gbm.com INTERCAM Richard Horbach Martinez rhorbach@intercam.com.mx JP MORGAN Ulises Argote ulises.argote@jpmorgan.com SANTANDER Alanis Peña Alan aalanis@santander.com.mx BANK OF AMERICA Fernando Olvera folvera@bofa.com APPENDICES For reference, some figures have been translated into millions of U.S. dollars (“USD”) using an exchange rate of $20.51 per USD, which corresponds to the rate at the close of December 31st, 2021 according to Mexico’s National Bank. Consolidated Statement of Financial Position Consolidated Statement of Income Consolidated Statement of Cash Flows Derivatives Position Report CONSOLIDATED STATEMENT OF FINANCIAL POSITION -Unaudited- In U.S. Dollar December 31, December 31*, In million pesos 2021 2021 2020* TOTAL ASSETS $ 3,214.8 65,934.8 58,475.0 Total current assets 1,851.3 37,970.5 32,586.0 Cash and cash equivalents 1,009.6 20,707.1 19,242.4 Total accounts receivable 256.1 5,252.5 4,366.7 Inventories 445.9 9,145.6 7,701.0 Other current assets 139.7 2,865.3 1,275.9 Total non current assets 1,363.4 27,964.3 25,889.0 Net property, plant and equipment 1,061.0 21,762.0 19,733.8 Other non current Assets 302.4 6,202.3 6,155.2 TOTAL LIABILITIES $ 863.8 17,716.0 14,548.2 Total current liabilities 618.4 12,682.5 8,179.8 Notes payable to banks 93.8 1,924.0 1,251.7 Accounts payable 417.6 8,565.1 5,834.0 Other taxes payable and other accruals 106.9 2,193.3 1,094.1 Total long-term liabilities 245.4 5,033.5 6,368.4 Long-term debt - - 1,460.4 Other non current liabilities 58.9 1,207.8 1,033.0 Deferred income taxes 186.5 3,825.7 3,875.0 TOTAL STOCKHOLDERS' EQUITY $ 2,351.0 48,218.8 43,926.8 Capital stock 57.2 1,173.9 1,174.3 Commission in shares issued 20.2 414.1 413.4 Repurchased shares - - - Retained earnings 2,192.0 44,957.2 40,874.4 Others accounts 57.7 1,182.7 855.5 Non controlling interest 23.9 490.9 609.2 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,214.8 65,934.8 58,475.0 *Audited CONSOLIDATED STATEMENT OF INCOME Fourth Quarter Results, ended December 31st: -Unaudited- U.S. Dollar In millions pesos 2021 2021 2020* Net sales $ 1,036.2 21,251.5 18,329.3 Cost of sales 901.4 18,488.2 14,468.2 Gross profit 134.7 2,763.3 3,861.2 SG&A 104.6 2,145.5 1,661.9 Other income (expenses), net (5.3 ) (108.3 ) (51.3 ) Operating income 24.8 509.5 2,147.9 Net finance income 7.3 149.6 (1,154.6 ) Income tax 2.4 49.0 3.3 Net Income $ 29.7 610.2 990.0 Non-controlling interest (1.85 ) (38.0 ) (3.8 ) Net controlling interest profit 31.60 648.2 993.8 Basic and diluted earnings per share 0.05 1.08 1.66 Basic and diluted earnings per ADR 0.63 12.97 19.88 Weighted average Shares outstanding1 599,624 599,624 599,820 EBITDA Result $ 43.0 881.7 2,455.7 Gross margin 13.0 % 13.0 % 21.1 % Operating margin 2.4 % 2.4 % 11.7 % Net margin 3.0 % 2.9 % 5.4 % EBITDA margin 4.1 % 4.1 % 13.4 % 1 In thousands * Audited CONSOLIDATED STATEMENT OF INCOME Annual Results -Unaudited- U.S. Dollar In millions pesos 2021 2021 2020* Net sales $ 3,983.4 81,699.1 68,792.0 Cost of sales 3,322.7 68,147.9 57,707.6 Gross profit 660.7 13,551.2 11,084.4 Selling, general and administrative expenses 356.1 7,302.9 6,420.4 Other income (expenses), net (17.2 ) (352.6 ) (362.5 ) Operating income 287.5 5,895.7 4,301.5 Net finance income 40.6 831.9 882.2 Income tax 86.9 1,782.2 1,211.6 Net income $ 241.1 4,945.3 3,972.1 Non-controlling interest (6.04 ) (123.8 ) 36.4 Net controlling interest profit 247.2 5,069.1 3,935.7 Basic and diluted earnings per share 0.41 8.45 6.56 Basic and diluted earnings per ADR 4.95 101.4 78.74 Weighted average Shares outstanding1 599,730 599,730 599,818 EBITDA Result $ 358.8 7,359.9 6,036.7 Gross margin 16.6 % 16.6 % 16.1 % Operating margin 7.2 % 7.2 % 6.3 % Net margin 6.2 % 6.1 % 5.8 % EBITDA margin 9.0 % 9.0 % 8.8 % 1 In thousands * Audited CONSOLIDATED STATEMENT OF CASH FLOWS In million of pesos -Unaudited- U.S. Dollar December 31, 2021 2021 2020 NET MAJORITY INCOME BEFORE INCOME TAX $ 328.0 6,727.5 5,183.7 ITEMS RELATING TO INVESTING ACTIVITIES: 80.1 1,642.6 1,640.9 Depreciation and others 89.2 1,829.6 2,042.9 Income (loss) on sale of plant and equipment 6.1 125.1 13.0 Other Items (15.2 ) (312.1 ) (414.9 ) NET CASH GENERATED FROM NET INCOME BEFORE TAXES 408.1 8,370.1 6,824.6 CASH GENERATED OR USED IN THE OPERATION: (11.8 ) (243.0 ) (1,043.5 ) Decrease (increase) in accounts receivable (19.4 ) (398.1 ) (322.8 ) Decrease (increase) in inventories (89.0 ) (1,824.8 ) (638.4 ) Increase (decrease) in accounts payable 241.4 4,950.6 288.5 Other Items (144.8 ) (2,970.7 ) (370.9 ) NET CASH FLOW FROM OPERATING ACTIVITIES 396.2 8,127.1 5,781.2 NET CASH FLOW FROM INVESTING ACTIVITIES (129.9 ) (2,663.6 ) (1,606.8 ) Acquisition of property, plant and equipment (170.7 ) (3,501.0 ) (2,346.4 ) Proceeds from sales of property plant and equipment 1.2 23.7 23.8 Other Items 39.7 813.7 715.8 CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES 266.4 5,463.5 4,174.4 Net cash provided by financing activities: (195.0 ) (3,998.8 ) (4,096.8 ) Proceeds from loans 84.7 1,737.2 4,030.7 Principal payments on loans (110.2 ) (2,261.2 ) (6,762.2 ) Dividends paid (41.5 ) (851.6 ) (793.6 ) Other items (127.9 ) (2,623.1 ) (571.7 ) Net increase (decrease) in cash and equivalents 71.4 1,464.7 77.6 Cash and investments at the beginning of year $ 938.2 19,242.4 19,164.8 CASH AND INVESTMENTS AT END OF PERIOD $ 1,009.6 20,707.1 19,242.4 DERIVATIVES POSITION REPORT Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 TYPE OF FINANCIAL INSTRUMENT OBJECTIVE NOTIONAL VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTS DUE BY YEAR GUARANTIES REQUIRED 4Q-2021 3Q-2021 4Q-2021 3Q-2021 Forward Vanilla Hedge $ 11,238 $ 20.51 $ 20.64 $ -128 $ 63,580 100% in 2022 The deals consider the possibility of margin calls but not another kind of guarantee Futures for corn, soybean meal and soybean oil Hedge $ 149,102 CORN CORN $ 4,175 -$ 3,890 100% in 2022 In USD per Bushel In USD per Bushel month price month price Mar-22 $ 5.933 Dec-21 $ 5.368 Sep-22 $ 5.628 Mar-22 $ 5.445 SOYBEAN MEAL SOYBEAN MEAL In USD per ton In USD per ton month price month price Dec-21 $ 328.7 Jan-22 $ 331.0 Mar-22 $ 399.1 Mar-22 $ 333.4 May-22 $ 397.1 May-22 $ 337.1 Jul-22 $ 397.6 Jul-22 $ 340.5 Aug-22 $ 394.6 Aug-22 $ 341.4 Sep-22 $ 388.0 Sep-22 $ 341.3 Oct-22 $ 380.2 Oct-22 $ 339.1 Dec-22 $ 380.0 Dec-22 $ 340.3 SOYBEAN OIL In US cents per pound Month Price Mar-22 $ 56.53 Options of Corn Hedge $ 1,825 CORN CORN $ 340 $ 23,350 100% in 2022 In USD per Bushel In USD per Bushel month price month price Dec-21 $ 5.368 Mar-22 $ 5.933 Mar-22 $ 5.445 Options of soybean meal Hedge $ 44,959 SOYBEAN MEAL SOYBEAN MEAL $ 3,949 -$ 21,390 100% in 2022 In USD per ton In USD per ton month price month price Oct-21 $ 343.1 Dec-21 $ 328.7 Jan-22 $ 331.0 Mar-22 $ 399.1 Mar-22 $ 333.4 May-22 $ 397.1 May-22 $ 337.1 -The total financial instruments do not exceed 5% of total assets as of December 31, 2021. -The notional value represents the net position as of December 31, 2021 at the exchange rate of Ps.20.51 per one dollar. -A negative value means an unfavorable effect for the Company. Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 PROBABLE SCENARIO TYPE OF FINANCIAL INSTRUMENT REASONABLE VALUE VALUE OF THE RELATED COMMODITY EFFECT ON THE INCOME STATEMENT EFFECT ON THE CASH FLOW(3) Reference Value (1) -2.5% 2.5% 5.0% -2.5% 2.5% 5.0% Forward Vanilla -$ 128 $ 20.00 $ 21.02 $ 21.54 Direct -$ 5,889 $ 5,634 $ 11,396 -5% 5% 10% -5% 5% 10% Futures of Corn: (2) $ 4,175 $ 5.636 $ 6.229 $ 6.526 The effect will materialize as the inventory is consumed -$ 3,280 $ 11,630 $ 19,085 Futures of Soybean Meal: (2) $ 379.1 $ 419.1 $ 439.0 Futures for Soy Oil (2) $ 53.7 $ 59.4 $ 62.2 Options for Corn $ 340 $ 5.636 $ 6.229 $ 6.526 $ 249 $ 431 $ 522 Options of Soybean Meal $ 3,949 $ 379.1 $ 419.1 $ 439.0 $ 1,701 $ 6,197 $ 8,445 (1) The reference value is the exchange rate of Ps. $20.51 per USD as of December 31, 2021. (2) The reference values are; the future of corn for March 2022, $5.9325 USD/bushel, the future of soybeanmeal for March 2022, $399.10USD/ton and the future of soybean oil for March 2022, $56.53 usd cts / pound 'All the evaluations are performed according with the corresponding future, here only the first month futures are shown. (3) The Company has credit lines with the majority of its counterparts, so that the effect in cash flow is lower than the amount shown. -A negative value means an unfavorable effect for the Company. Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 STRESS SCENARIO TYPE OF FINANCIAL INSTRUMENT REASONABLEVALUE VALUE OF THE RELATED COMMODITY EFFECT ON THEINCOMESTATEMENT EFFECT ON THE CASH FLOW Reference Value -50% -25% 25% 50% -50% -25% 25% 50% Forward Vanilla -$128 $10.26 $15.38 $25.64 $30.77 Direct -$115,362 -$57,745 $57,490 $115,107 CONFERENCE CALL INFORMATION The Company will host its fourth quarter 2021 earnings call, on Friday, February 4th, 2022. The earnings call will take place at 11:00 am Central Time (12:00 pm ET). Toll free in the U.S.: 1 (888) 771-4371 Toll free in Mexico: 001 866 779 0965 A current list of available local and international free phone telephone numbers: http://web.meetme.net/r.aspx?p=12&a=UfuOzYSxaaXZLN Confirmation Number: 50274535 COMPANY DESCRIPTION Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally. The Company was founded in 1952, and became a public company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine, and turkey and beef value-added products. Bachoco owns and manages more than a thousand facilities, organized in nine production complexes and 80 distribution centers in Mexico, and a production complex in the United States. Currently the Company employs more than 29,000 people. The Company is rated AAA (MEX), the highest rating awarded by Fitch Mexico, S.A. de C.V., and HR AAA which signals that the Company and the offering both have the highest credit quality by HR Ratings de Mexico S.A. de C.V. DISCLAIMER The document contains certain information that could be considered forward looking statements concerning anticipated future events and performance of the Company. The statements reflect management’s current beliefs based on information currently available and are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Information Form, which could cause our actual results to differ materially from the forward-looking statements contained in this document. Those risks and uncertainties include risks associated with ownership in the poultry industry, competition for investments within the poultry industry, shareholder liability, governmental regulation, and environmental matters. As a result, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Industrias Bachoco, S.A.B. de C.V., undertakes no obligation to publicly update or revise any forward-looking statement. View source version on businesswire.com: https://www.businesswire.com/news/home/20220203005288/en/Contacts IR contact information: Maria Guadalupe Jaquez maria.jaquez@bachoco.net Andrea Guerrero andrea.guerrero@bachoco.net T. +52(461)618 3555
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 (“4Q21”) and full year (“2021”) ending on December 31st, 2021. All figures have been prepared in accordance with International Financial Reporting Standard (“IFRS”) and are presented in nominal million Mexican Pesos (“$”). HIGHLIGHTS 2021 Net sales increased 15.9% in 4Q21 and increased 18.8% in year 2021 vs equivalent periods of 2020. EBITDA margin was 4.1% for 4Q21 and 9.0% for the whole year. Earnings per basic and diluted share totaled $1.08 for the quarter and $8.45 for the year. CEO COMMENTS Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated: “2021 was a year more in line with seasonal behavior compared to 2020. Which means, a year with a very good first half vs a challenging second one, particularly in terms of profitability. In the overall, we consider that, a balanced supply and demand and our participation in all the main channels allowed us to optimize our sales mix and deliver improved results vs full year 2020. Particularly for the 4Q21 we showed a recover in our volume sold, mainly in poultry, which reinforces our commitment with customers and market. More volume sold and better prices YOY allowed us to reach an increase in sales of 15.9% for the quarter and 18.8% for the full year. On the other hand, regarding our cost of sales, challenges in commodity prices remained. This has had a negative effect in our operations both Mexico and the U.S. Just for the quarter, our combined cost of sales increased 27.8% vs 4Q20 and 18.1% vs full year 2020. However, we managed to deliver positive results for the quarter and year-end. Our EBITDA was $881.7 million for 4Q21 and $7,359.9 million for 2021 with margins of 4.1% and 9.0% respectively. Those results allowed us to remain with a solid financial position generating net cash of $18,783.1 million an increase of 13.6% compared to 2020. This strength allowed us not only to face the volatility and challenges of our industry but also to support our growth plans. In this regard, after year-end, we announced the acquisition of RYC Alimentos which results will be consolidated in our 2022 financials. We look forward to start with the integration process of this operation in order to capture the synergies identified.” EXECUTIVE SUMMARY 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 2021. QUARTERLY RESULTS NET SALES BY GEOGRAPHY In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Sales 21,251.5 18,329.3 2,922.2 15.9 Net sales in Mexico 15,937.3 13,781.3 2,156.1 15.6 Net sales in the U.S. 5,314.2 4,548.0 766.1 16.8 NET SALES BY SEGMENT In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Sales 21,251.5 18,329.3 2,922.2 15.9 Poultry 18,598.1 16,138.1 2,460.0 15.2 Other 2,653.4 2,191.2 462.2 21.1 NET VOLUME SOLD BY SEGMENT In tons Change 4Q21 4Q20 Volume % Total sales volume: 605,925 585,064 20,860.8 3.6 Poultry 467,942 447,605 20,337.3 4.5 Others 137,983 137,459 523.5 0.4 The Company’s 4Q21 net sales totaled $21,251.5 million; $2,922.2 million or 15.9% more than $18,329.3 million reported in 4Q20. The increase is a result of higher volume sold in poultry as well as higher prices in our main business lines. In 4Q21, sales of our U.S. operations represented 25.0% of our total sales compared to 24.8% in 4Q20. GROSS PROFIT In millions of pesos 4Q21 4Q20 Change $ $ $ % Cost of sales 18,488.2 14,468.2 4,020.1 27.8 Gross profit 2,763.3 3,861.2 (1,097.9) (28.4) Gross margin 13.0% 21.1% - - In 4Q21, cost of sales was $18,488.2 million; $4,020.1 million or 27.8% higher than $14,468.2 million reported in 4Q20. This increase was mainly due to higher unit cost in our main business lines as we continued observing year over year increases in prices of our main raw materials. The Company´s gross profit in 4Q21 was $2,763.3 million, lower than the gross profit of $3,861.2 million in 4Q20, with a gross margin of 13.0% for 4Q21 vs 21.1% in 4Q20. SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (“SG&A”) In millions of pesos 4Q21 4Q20 Change $ $ $ % Total SG&A 2,145.5 1,661.9 483.5 29.1 Total SG&A expenses in 4Q21 were $2,145.5 million; $483.5 million higher than the $1,661.9 million reported in 4Q20. Total SG&A expenses as a percentage of net sales represented 10.1% in 4Q21 and 9.1% in 4Q20. OTHER INCOME (EXPENSE), NET In millions of pesos 4Q21 4Q20 Change $ $ $ % Other income (expense), net (108.3) (51.3) (57.0) 111.0 This item mainly includes the sale of unused assets as well as hens and other by-products. We record such sales as expenses when the sale price is below the book value of those assets. In 4Q21, we recorded other expenses of $108.3 million, compared with other expenses of $51.3 million reported in 4Q20. OPERATING INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Operating income 509.5 2,147.9 (1,638.4) (76.3) Operating margin 2.4% 11.7% - - Operating income in 4Q21 totaled $509.5 million; $1,638.4 million lower than the Operating income of $2,147.9 million reported in 4Q20. This represents an operating margin of 2.4% for 4Q21, versus 11.7% operating margin in the same period of 2020. The decrease in operating income is mainly attributed to higher raw material costs. NET FINANCIAL INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Net Financial Income 149.6 (1,154.6) 1,304.2 (113.0) Financial Income 211.5 (1,111.7) 1,323.1 (119.0) Financial Expense 61.8 42.9 18.9 44.0 In 4Q21, the Company reported net financial income $149.6 million, compared to a financial loss of $1,154.6 million reported in the same period of 2020. Of the Financial Income, exchange rate valuation in 4Q21 was $32.4 million vs a negative $1,206.9 million obtained in 4Q20. TAXES FOR THE PERIOD In millions of pesos 4Q21 4Q20 Change $ $ $ % Total Taxes 49.0 3.3 45.7 1,377.0 Income tax 486.4 679.1 (192.7) (28.4) Deferred income tax (437.4) (675.8) 238.4 (35.3) Total taxes for the 4Q21 were $49.0 million, compared with total taxes of $3.3 million of the same period of 2020. NET CONTROLLING INTEREST INCOME In millions of pesos 4Q21 4Q20 Change $ $ $ % Net income 610.2 990.0 (379.8) (38.4) Net margin 2.9% 5.4% - - Non-Controlling Interest income (38.0) (3.8) (34.2) n/a Net controlling interest income 648.2 993.8 (345.6) (34.8) Basic and diluted income per share1 1.08 1.66 (0.58) n/a Basic and diluted income per ADR2 12.97 19.88 (6.9) n/a Weighted average Shares outstanding3 599,624 599,820 - - 1 In pesos 2 in pesos, one ADR equals to twelve shares 3 In thousands of shares The net controlling interest income for 4Q21 was $648.2 million, representing $1.08 pesos of earnings per share, compared with a net controlling interest income of $993.8 million, which represented a $1.66 pesos of earnings per share in 4Q20. This decrease is mainly attributed to lower operating results. EBITDA In millions of pesos 4Q21 4Q20 Change $ $ $ % Net controlling interest income 648.2 993.8 (345.6) (34.8) Income tax expense (benefit) 49.0 3.3 45.7 1,377.0 Result in associates (38.0) (3.8) (34.2) 895.5 Net finance (income) expense (149.6) 1,154.6 (1,304.2) (113.0) Depreciation and amortization 372.1 307.8 64.4 20.9 EBITDA 881.7 2,455.7 (1,574.0) (64.1) EBITDA Margin (%) 4.1% 13.4% - - Net revenues 21,251.5 18,329.3 2,922.2 15.9 EBITDA in 4Q21 reached $881.7 million representing an EBITDA margin of 4.1%, compared to an EBITDA of $2,455.7 million in 4Q20, with an EBITDA margin of 13.4%. ACCUMULATED RESULTS NET SALES BY GEOGRAPHY In millions of pesos 2021 2020 Change $ $ $ % Net Sales 81,699.1 68,792.0 12,907.1 18.8 Net sales in Mexico 61,468.1 49,303.2 12,164.9 24.7 Net sales in the U.S. 20,231.0 19,488.8 742.2 3.8 NET SALES BY SEGMENT In millions of pesos 2021 2020 Change $ $ $ % Net Sales 81,699.1 68,792.0 12,907.1 18.8 Poultry 71,518.2 61,323.9 10,194.3 16.6 Other 10,180.9 7,468.1 2,712.8 36.3 NET VOLUME SOLD BY SEGMENT In metric tons Change 2021 2020 Volume % Total sales volume: 2,318,049 2,296,229 21,820.8 1.0 Poultry 1,769,071 1,772,528 (3,457.1) (0.2) Others 548,978 523,700 25,277.9 4.8 In 2021, net sales totaled $81,699.1 million; $12,907.1 million or 18.8% more than the $68,792.0 million reported in the same period of 2020. In 2021, sales of our U.S. operations represented 24.8% of our total sales, compared with 28.3% in 2020. OPERATING RESULTS In millions of pesos 2021 2020 Change $ $ $ % Cost of Sales 68,147.9 57,707.6 10,440.3 18.1 Gross Profit 13,551.2 11,084.4 2,466.7 22.3 Total SG&A 7,302.9 6,420.4 882.5 13.7 Other Income (expense) (352.6) (362.5) 9.9 (2.7) Operating Income 5,895.7 4,301.5 1,594.2 37.1 Net Financial Income 831.9 882.2 (50.3) (5.7) Income Tax 1,782.2 1,211.6 570.6 47.1 Net Income 4,945.3 3,972.1 973.2 24.5 Non-controlling interest (123.8) 36.4 (160.2) (439.9) Net controlling interest Income 5,069.1 3,935.7 1,133.4 28.8 In the 2021, the cost of sales totaled $68,147.9 million; $10,440.3 million or 18.1% higher than $57,707.6 million reported in the 2020. As a result, we reached a gross profit of $13,551.2 million and a gross margin of 16.6% in 2021, when compared to $11,084.4 million of gross profit and a gross margin of 16.1% reached in the same period of 2020. Total SG&A in 2021 were $7,302.9 million; $882.5 million or 13.7% higher than the $6,420.4 million reported in 2020. In 2021 total SG&A expenses as a percentage of net sales represented 8.9% in 2021 and 9.3% in 2020. In 2021 we had other expenses of $352.6 million, compared with other expenses of $362.5 million reported in 2020. Operating income in 2021 was $5,895.7 million, which represents an operating margin of 7.2%, an increase from an operating income of $4,301.5 million with an operating margin of 6.3% in 2020. Net financial income in 2021 was $831.9 million lower when compared to a net financial income of $882.2 million in 2020. Total taxes were $1,782.2 million as of December 31st, 2021. These include $1,540.4 million of income tax and $241.8 million of deferred income taxes. Those figures compare to an income tax of $1,296.5 million and deferred income taxes of $(84.9) million in 2020. After Non-controlling interest, all the above resulted in a Net controlling interest income of $5,069.1 million or 6.2% margin in 2021, which represents $8.45 pesos of earnings per share; while in the 2020 the Net controlling interest income totaled $3,935.7 million, 5.7% margin and $6.56 pesos of income per share. EBITDA In millions of pesos 2021 2020 Change $ $ $ % Net controlling interest profit 5,069.1 3,935.7 1,133.4 28.8 Income tax expense (benefit) 1,782.2 1,211.6 570.6 47.1 Result in associates (123.8) 36.4 (160.2) (439.9) Net finance (income) expense (831.9) (882.2) 50.3 (5.7) Depreciation and amortization 1,464.2 1,735.1 (271.0) (15.6) EBITDA 7,359.9 6,036.7 1,323.2 21.9 EBITDA Margin (%) 9.0% 8.8% - - Net revenues 81,699.1 68,792.0 12,907.1 18.8 EBITDA in 2021 reached $7,359.9 million, representing an EBITDA margin of 9.0%, compared to an EBITDA of $6,036.7 million in 2020, with an EBITDA margin of 8.8%. BALANCE SHEET BALANCE SHEET DATA In millions of pesos Dec. 31, 2021 Dec. 31, 2020 Change $ $ $ % TOTAL ASSETS 65,934.8 58,475.0 7,459.8 12.8 Cash and cash equivalents 20,707.1 19,242.4 1,464.7 7.6 Accounts receivable 5,252.5 4,366.7 885.8 20.3 TOTAL LIABILITIES 17,716.0 14,548.2 3,167.8 21.8 Accounts payable 8,565.1 5,834.0 2,731.1 46.8 Short-term debt 1,924.0 1,251.7 672.3 53.7 Long-term debt - 1,460.4 (1,460.4) (100.0) TOTAL STOCKHOLDERS’ EQUITY 48,218.8 43,926.8 4,292.0 9.8 Capital stock 1,173.9 1,174.3 (0.4) (0.0) Cash and equivalents as of December 31st, 2021, totaled $20,707.1 million vs $19,242.4 million as of December 31st, 2020. Total debt as of December 31st, 2021, was $1,924.0 million, compared to $2,712.1 million reported as of December 31st, 2020. Net cash as of December 31st, 2021, was $18,783.1 million, compared to net cash of $16,530.3 million as of December 31st, 2020. CAPITAL EXPENDITURES In millions of pesos 2021 2020 Change $ $ $ % Capital Expenditures 3,500.0 2,752.3 747.7 27.2 Total CAPEX for 2021 was $3,500.0 million vs $2,752.3 million in 2020, mainly allocated toward organic growth and productivity projects across all our facilities. STOCK INFORMATION As of December 31, 2021 Total Shares 600,000,000 Total free float 26.75% Market cap (millions of pesos) $42,810 Source: Yahoo Finances SHARE PRICE Mexican Stock Exchange The New York Stock Exchange Ticker Symbol: Bachoco Ticker Symbol: IBA In nominal pesos per Share In U.S. Dollar per ADR Month High Low Close High Low Close December 72.74 68.29 71.35 42.54 39.46 42.54 November 73.10 70.95 71.17 42.43 39.84 39.84 October 75.53 71.72 73.02 44.36 41.70 42.45 September 77.07 73.02 75.98 47.11 43.82 44.20 August 73.90 70.47 73.45 44.24 42.17 43.75 July 78.00 72.86 72.86 47.00 43.89 43.89 June 77.89 73.93 75.27 47.60 43.93 46.32 May 77.50 74.92 76.52 46.76 44.55 46.40 April 75.39 68.04 74.73 45.47 39.73 44.47 March 69.42 67.16 68.04 40.45 38.30 39.95 February 71.99 68.02 69.42 43.19 39.67 39.67 January 73.60 69.22 69.28 44.66 41.14 41.14 ANALYST COVERAGE Institution Analyst name E-mail ACTINVER Enrique Mendoza Farias emendoza@actinver.com.mx BBVA BANCOMER Pablo Abraham Peregrina pablo.abraham@bbva.com GBM Luis Rodrigo Willard Alonso lrwillard@gbm.com INTERCAM Richard Horbach Martinez rhorbach@intercam.com.mx JP MORGAN Ulises Argote ulises.argote@jpmorgan.com SANTANDER Alanis Peña Alan aalanis@santander.com.mx BANK OF AMERICA Fernando Olvera folvera@bofa.com APPENDICES For reference, some figures have been translated into millions of U.S. dollars (“USD”) using an exchange rate of $20.51 per USD, which corresponds to the rate at the close of December 31st, 2021 according to Mexico’s National Bank. Consolidated Statement of Financial Position Consolidated Statement of Income Consolidated Statement of Cash Flows Derivatives Position Report CONSOLIDATED STATEMENT OF FINANCIAL POSITION -Unaudited- In U.S. Dollar December 31, December 31*, In million pesos 2021 2021 2020* TOTAL ASSETS $ 3,214.8 65,934.8 58,475.0 Total current assets 1,851.3 37,970.5 32,586.0 Cash and cash equivalents 1,009.6 20,707.1 19,242.4 Total accounts receivable 256.1 5,252.5 4,366.7 Inventories 445.9 9,145.6 7,701.0 Other current assets 139.7 2,865.3 1,275.9 Total non current assets 1,363.4 27,964.3 25,889.0 Net property, plant and equipment 1,061.0 21,762.0 19,733.8 Other non current Assets 302.4 6,202.3 6,155.2 TOTAL LIABILITIES $ 863.8 17,716.0 14,548.2 Total current liabilities 618.4 12,682.5 8,179.8 Notes payable to banks 93.8 1,924.0 1,251.7 Accounts payable 417.6 8,565.1 5,834.0 Other taxes payable and other accruals 106.9 2,193.3 1,094.1 Total long-term liabilities 245.4 5,033.5 6,368.4 Long-term debt - - 1,460.4 Other non current liabilities 58.9 1,207.8 1,033.0 Deferred income taxes 186.5 3,825.7 3,875.0 TOTAL STOCKHOLDERS' EQUITY $ 2,351.0 48,218.8 43,926.8 Capital stock 57.2 1,173.9 1,174.3 Commission in shares issued 20.2 414.1 413.4 Repurchased shares - - - Retained earnings 2,192.0 44,957.2 40,874.4 Others accounts 57.7 1,182.7 855.5 Non controlling interest 23.9 490.9 609.2 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,214.8 65,934.8 58,475.0 *Audited CONSOLIDATED STATEMENT OF INCOME Fourth Quarter Results, ended December 31st: -Unaudited- U.S. Dollar In millions pesos 2021 2021 2020* Net sales $ 1,036.2 21,251.5 18,329.3 Cost of sales 901.4 18,488.2 14,468.2 Gross profit 134.7 2,763.3 3,861.2 SG&A 104.6 2,145.5 1,661.9 Other income (expenses), net (5.3 ) (108.3 ) (51.3 ) Operating income 24.8 509.5 2,147.9 Net finance income 7.3 149.6 (1,154.6 ) Income tax 2.4 49.0 3.3 Net Income $ 29.7 610.2 990.0 Non-controlling interest (1.85 ) (38.0 ) (3.8 ) Net controlling interest profit 31.60 648.2 993.8 Basic and diluted earnings per share 0.05 1.08 1.66 Basic and diluted earnings per ADR 0.63 12.97 19.88 Weighted average Shares outstanding1 599,624 599,624 599,820 EBITDA Result $ 43.0 881.7 2,455.7 Gross margin 13.0 % 13.0 % 21.1 % Operating margin 2.4 % 2.4 % 11.7 % Net margin 3.0 % 2.9 % 5.4 % EBITDA margin 4.1 % 4.1 % 13.4 % 1 In thousands * Audited CONSOLIDATED STATEMENT OF INCOME Annual Results -Unaudited- U.S. Dollar In millions pesos 2021 2021 2020* Net sales $ 3,983.4 81,699.1 68,792.0 Cost of sales 3,322.7 68,147.9 57,707.6 Gross profit 660.7 13,551.2 11,084.4 Selling, general and administrative expenses 356.1 7,302.9 6,420.4 Other income (expenses), net (17.2 ) (352.6 ) (362.5 ) Operating income 287.5 5,895.7 4,301.5 Net finance income 40.6 831.9 882.2 Income tax 86.9 1,782.2 1,211.6 Net income $ 241.1 4,945.3 3,972.1 Non-controlling interest (6.04 ) (123.8 ) 36.4 Net controlling interest profit 247.2 5,069.1 3,935.7 Basic and diluted earnings per share 0.41 8.45 6.56 Basic and diluted earnings per ADR 4.95 101.4 78.74 Weighted average Shares outstanding1 599,730 599,730 599,818 EBITDA Result $ 358.8 7,359.9 6,036.7 Gross margin 16.6 % 16.6 % 16.1 % Operating margin 7.2 % 7.2 % 6.3 % Net margin 6.2 % 6.1 % 5.8 % EBITDA margin 9.0 % 9.0 % 8.8 % 1 In thousands * Audited CONSOLIDATED STATEMENT OF CASH FLOWS In million of pesos -Unaudited- U.S. Dollar December 31, 2021 2021 2020 NET MAJORITY INCOME BEFORE INCOME TAX $ 328.0 6,727.5 5,183.7 ITEMS RELATING TO INVESTING ACTIVITIES: 80.1 1,642.6 1,640.9 Depreciation and others 89.2 1,829.6 2,042.9 Income (loss) on sale of plant and equipment 6.1 125.1 13.0 Other Items (15.2 ) (312.1 ) (414.9 ) NET CASH GENERATED FROM NET INCOME BEFORE TAXES 408.1 8,370.1 6,824.6 CASH GENERATED OR USED IN THE OPERATION: (11.8 ) (243.0 ) (1,043.5 ) Decrease (increase) in accounts receivable (19.4 ) (398.1 ) (322.8 ) Decrease (increase) in inventories (89.0 ) (1,824.8 ) (638.4 ) Increase (decrease) in accounts payable 241.4 4,950.6 288.5 Other Items (144.8 ) (2,970.7 ) (370.9 ) NET CASH FLOW FROM OPERATING ACTIVITIES 396.2 8,127.1 5,781.2 NET CASH FLOW FROM INVESTING ACTIVITIES (129.9 ) (2,663.6 ) (1,606.8 ) Acquisition of property, plant and equipment (170.7 ) (3,501.0 ) (2,346.4 ) Proceeds from sales of property plant and equipment 1.2 23.7 23.8 Other Items 39.7 813.7 715.8 CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES 266.4 5,463.5 4,174.4 Net cash provided by financing activities: (195.0 ) (3,998.8 ) (4,096.8 ) Proceeds from loans 84.7 1,737.2 4,030.7 Principal payments on loans (110.2 ) (2,261.2 ) (6,762.2 ) Dividends paid (41.5 ) (851.6 ) (793.6 ) Other items (127.9 ) (2,623.1 ) (571.7 ) Net increase (decrease) in cash and equivalents 71.4 1,464.7 77.6 Cash and investments at the beginning of year $ 938.2 19,242.4 19,164.8 CASH AND INVESTMENTS AT END OF PERIOD $ 1,009.6 20,707.1 19,242.4 DERIVATIVES POSITION REPORT Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 TYPE OF FINANCIAL INSTRUMENT OBJECTIVE NOTIONAL VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTS DUE BY YEAR GUARANTIES REQUIRED 4Q-2021 3Q-2021 4Q-2021 3Q-2021 Forward Vanilla Hedge $ 11,238 $ 20.51 $ 20.64 $ -128 $ 63,580 100% in 2022 The deals consider the possibility of margin calls but not another kind of guarantee Futures for corn, soybean meal and soybean oil Hedge $ 149,102 CORN CORN $ 4,175 -$ 3,890 100% in 2022 In USD per Bushel In USD per Bushel month price month price Mar-22 $ 5.933 Dec-21 $ 5.368 Sep-22 $ 5.628 Mar-22 $ 5.445 SOYBEAN MEAL SOYBEAN MEAL In USD per ton In USD per ton month price month price Dec-21 $ 328.7 Jan-22 $ 331.0 Mar-22 $ 399.1 Mar-22 $ 333.4 May-22 $ 397.1 May-22 $ 337.1 Jul-22 $ 397.6 Jul-22 $ 340.5 Aug-22 $ 394.6 Aug-22 $ 341.4 Sep-22 $ 388.0 Sep-22 $ 341.3 Oct-22 $ 380.2 Oct-22 $ 339.1 Dec-22 $ 380.0 Dec-22 $ 340.3 SOYBEAN OIL In US cents per pound Month Price Mar-22 $ 56.53 Options of Corn Hedge $ 1,825 CORN CORN $ 340 $ 23,350 100% in 2022 In USD per Bushel In USD per Bushel month price month price Dec-21 $ 5.368 Mar-22 $ 5.933 Mar-22 $ 5.445 Options of soybean meal Hedge $ 44,959 SOYBEAN MEAL SOYBEAN MEAL $ 3,949 -$ 21,390 100% in 2022 In USD per ton In USD per ton month price month price Oct-21 $ 343.1 Dec-21 $ 328.7 Jan-22 $ 331.0 Mar-22 $ 399.1 Mar-22 $ 333.4 May-22 $ 397.1 May-22 $ 337.1 -The total financial instruments do not exceed 5% of total assets as of December 31, 2021. -The notional value represents the net position as of December 31, 2021 at the exchange rate of Ps.20.51 per one dollar. -A negative value means an unfavorable effect for the Company. Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 PROBABLE SCENARIO TYPE OF FINANCIAL INSTRUMENT REASONABLE VALUE VALUE OF THE RELATED COMMODITY EFFECT ON THE INCOME STATEMENT EFFECT ON THE CASH FLOW(3) Reference Value (1) -2.5% 2.5% 5.0% -2.5% 2.5% 5.0% Forward Vanilla -$ 128 $ 20.00 $ 21.02 $ 21.54 Direct -$ 5,889 $ 5,634 $ 11,396 -5% 5% 10% -5% 5% 10% Futures of Corn: (2) $ 4,175 $ 5.636 $ 6.229 $ 6.526 The effect will materialize as the inventory is consumed -$ 3,280 $ 11,630 $ 19,085 Futures of Soybean Meal: (2) $ 379.1 $ 419.1 $ 439.0 Futures for Soy Oil (2) $ 53.7 $ 59.4 $ 62.2 Options for Corn $ 340 $ 5.636 $ 6.229 $ 6.526 $ 249 $ 431 $ 522 Options of Soybean Meal $ 3,949 $ 379.1 $ 419.1 $ 439.0 $ 1,701 $ 6,197 $ 8,445 (1) The reference value is the exchange rate of Ps. $20.51 per USD as of December 31, 2021. (2) The reference values are; the future of corn for March 2022, $5.9325 USD/bushel, the future of soybeanmeal for March 2022, $399.10USD/ton and the future of soybean oil for March 2022, $56.53 usd cts / pound 'All the evaluations are performed according with the corresponding future, here only the first month futures are shown. (3) The Company has credit lines with the majority of its counterparts, so that the effect in cash flow is lower than the amount shown. -A negative value means an unfavorable effect for the Company. Fourth Quarter 2021 Thousands of Mexican Pesos, as of December 31, 2021 STRESS SCENARIO TYPE OF FINANCIAL INSTRUMENT REASONABLEVALUE VALUE OF THE RELATED COMMODITY EFFECT ON THEINCOMESTATEMENT EFFECT ON THE CASH FLOW Reference Value -50% -25% 25% 50% -50% -25% 25% 50% Forward Vanilla -$128 $10.26 $15.38 $25.64 $30.77 Direct -$115,362 -$57,745 $57,490 $115,107 CONFERENCE CALL INFORMATION The Company will host its fourth quarter 2021 earnings call, on Friday, February 4th, 2022. The earnings call will take place at 11:00 am Central Time (12:00 pm ET). Toll free in the U.S.: 1 (888) 771-4371 Toll free in Mexico: 001 866 779 0965 A current list of available local and international free phone telephone numbers: http://web.meetme.net/r.aspx?p=12&a=UfuOzYSxaaXZLN Confirmation Number: 50274535 COMPANY DESCRIPTION Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally. The Company was founded in 1952, and became a public company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine, and turkey and beef value-added products. Bachoco owns and manages more than a thousand facilities, organized in nine production complexes and 80 distribution centers in Mexico, and a production complex in the United States. Currently the Company employs more than 29,000 people. The Company is rated AAA (MEX), the highest rating awarded by Fitch Mexico, S.A. de C.V., and HR AAA which signals that the Company and the offering both have the highest credit quality by HR Ratings de Mexico S.A. de C.V. DISCLAIMER The document contains certain information that could be considered forward looking statements concerning anticipated future events and performance of the Company. The statements reflect management’s current beliefs based on information currently available and are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Information Form, which could cause our actual results to differ materially from the forward-looking statements contained in this document. Those risks and uncertainties include risks associated with ownership in the poultry industry, competition for investments within the poultry industry, shareholder liability, governmental regulation, and environmental matters. As a result, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Industrias Bachoco, S.A.B. de C.V., undertakes no obligation to publicly update or revise any forward-looking statement. 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IR contact information: Maria Guadalupe Jaquez maria.jaquez@bachoco.net Andrea Guerrero andrea.guerrero@bachoco.net T. +52(461)618 3555