Poultry company Bachoco’s revenues increased 20% during the last quarter, in proportion to an increase in its cost of sales . Bachoco, like other food companies, has faced a constant increase in the price of its raw materials, such as corn paste and soybeans, in recent months as a result of the war between Russia and Ukraine, which has caused a shortage and an increase in the price of commodities .
“We continue to face the impacts of higher sales costs due to the increase in raw material prices both in US dollars and in Mexican pesos,” says the company’s report sent to the Mexican Stock Exchange.
The company’s total sales between Mexico and the United States were 24,457 million pesos during the quarter, an increase of 20.9%. The most considerable increase occurred in its non-poultry segments, such as pork and other value-added turkey and beef products, whose sales grew by more than 44%.
The increase in sales was driven by an increase in prices to the public, rather than by the volume displaced, which only grew by 1.4%.
The company’s cost of sales rose to 21,189 million during the period due to higher cost of raw materials in US dollars.
Despite this, the company increased its profits and reported an EBITDA of 1,525 million pesos, an increase of 35% compared to the same quarter last year.
In recent months, the food processor has faced a process to be delisted from the Mexican Stock Exchange, after the controlling family presented an offer to buy the remaining shares of the company that has not been accepted by the shareholders.