The sale of more poultry products, as well as an increase in their prices, led Bachoco to record a positive 2021, despite the fact that the last quarter had negative results.
In 2021, Bachoco’s revenues increased 18.8% to 81,699 million pesos and net income rose 24.5% to 4,945 million pesos. However, in the fourth quarter, sales were up 16%, but EBITDA fell 64% to 882 million pesos and profits fell 38.4% to 610.2 million pesos.
Fourth quarter results were pressured by an increase in raw material costs. “This has had a negative effect on our operations both in Mexico and in the United States,” said Rodolfo Ramos, general director of Bachoco, in the quarterly report.
From October to December, the company’s cost of sales increased 28%. And although the fourth quarter was challenging for the company, Ramos commented that they consider “that there was a balanced supply and demand, and that our participation in all channels allowed us to optimize our sales mix in order to offer better results compared to 2020.”
In the year, the Mexican market, which represents 75% of the company’s total sales, was the one with the best performance, registering a 25% increase in sales, while those of the United States increased 4%.
Thanks to the results, the company managed to close the year with cash in hand for 18,783 million pesos, 14% more than in 2020. “This strength allowed us not only to face the volatility and challenges of our industry, but also to support our plans of growth”. At the end of the year, Bachoco announced the purchase of RYC Alimentos.
