The director confirmed his participation in the Package against inflation and famine (PACIC)which the federal government presented at the beginning of May, for which they maintain the prices for warehouse chicken and in the retail segment.
Other companies that maintain prices to the public since they participate in the government program are Alpurawith fresh milk and bimbo, with its large white bread. The intention of the PACIC is to contain the increase in prices in 24 products of the basic basket, including eggs.
“The government understood very well that the impact of inflation on the cost is mainly due to the prices of raw materials. And, in that sense, they announced some programs to increase grain production, some gasoline subsidies and things like that, become a little bit more efficient in terms of the cost of production, but we reflect the increases in the cost of raw materials,” Ramos said.
an optimistic future
According to the manager, the second half of the year is usually weak for the industry, but he considers that there is a good balance between supply and demand. Although he foresaw that there will be pressure on volumes, he expects a recovery towards the end of the year.
One of the company’s catalysts will be RYC Foods, the Puebla-based company Bachoco acquired in January that produces beef and pork protein. This company has sales of about 150 million dollars a year,
“We expect the growth of this company to be between 5 to 6% per year. But in the medium term, we estimate adding a couple of percentage points more growth and reach 8% growth year over yearwhich is a little above the company’s growth level,” added Ramos Arvizu.
Although they did not have a presence in the market, the manager considered that today there is the possibility of expanding their business in the field. “They have a very good Department of Innovation and new product development. So I think it is a very good opportunity to increase our presence in the value-added segment of the industry. It is a different business model, but it is an opportunity to expand these capabilities,” he said.
In the second quarter of the year, Bachoco’s sales increased 26.7% to 26,432 million pesos, compared to the same period in 2021, when it reported 20,860.9 million. Net income increased 42.6% to 5,100 million pesos.
The operating flow -or Ebitda- amounted to 4,212.5 million, 72.8% more compared to the 2,437.4 million reported in the same period of 2021.
Bachoco’s director stated that for now there is no further information regarding its Public Offer of Acquisition (OPA) to acquire the shares of the company in fluctuation and delist it from the Mexican Stock Exchange (BMV). “We are still awaiting approval from the authorities,” he said.
