Industrias Bachoco SAB de CV (IBA) 2022 Q3 法說會逐字稿

Good morning. My name is Hilda, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2022 Industrias Bachoco Earnings Conference Call. (Operator Instructions) I will now turn the call over to Maria Jaquez. Maria, you may begin.

早安.我叫希爾達，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Industrias Bachoco 2022 年第三季財報電話會議。 （接線員指示）我現在將把電話轉給 Maria Jaquez。瑪麗亞，你可以開始了。

Thank you. Good morning, and welcome to Bachoco's Third Quarter Conference Call. We released our financials yesterday after market closed. If you need a copy of the release, please visit our website or request it from our Investor Relations department.

謝謝。早上好，歡迎參加 Bachoco 第三季電話會議。我們昨天在收市後發布了財務數據。如果您需要新聞稿的副本，請造訪我們的網站或向我們的投資者關係部門索取。

This morning's call contains certain information that could be considered forward-looking statements regarding anticipated future events and performance. These 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 report or 20-F, which could make our current results differ materially from the forward-looking statements discussed in this call.

今天早上的電話會議包含某些信息，這些信息可被視為有關預期未來事件和業績的前瞻性陳述。這些陳述反映了管理層基於當前可用資訊的當前信念，並非對未來業績的保證，而是基於我們的估計和假設，這些估計和假設受到風險和不確定性的影響，包括我們的年度報告或20 -F 中所述的風險和不確定性，這可能使我們的目前的結果與本次電話會議中討論的前瞻性陳述存在重大差異。

Except as required by applicable law, Industrias Bachoco undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Lastly, unless otherwise indicated, the amounts mentioned in this conference will be figures of 2022 with comparative figures of the same periods of 2021 in Mexican pesos. As a reference, the exchange rate as of September 30, 2022, was MXN 20.13 per U.S. dollar.

除適用法律要求外，Industrias Bachoco 不承擔公開更新或修改任何前瞻性聲明的義務，無論是由於新資訊、未來事件或其他原因。最後，除非另有說明，本次會議中提到的金額均為2022年的數字以及以墨西哥比索計算的2021年同期的比較數字。作為參考，截至 2022 年 9 月 30 日的匯率為 1 美元兌 20.13 墨西哥比索。

Here with me are our CEO, Mr. Rodolfo Ramos; and our CFO, Mr. Daniel Salazar. Now I will give the call to Mr. Ramos.

和我在一起的是我們的執行長魯道夫·拉莫斯 (Rodolfo Ramos) 先生；以及我們的財務長 Daniel Salazar 先生。現在我將打電話給拉莫斯先生。

Thank you, Maria, and good morning, everyone. This third quarter behaved according to the expected seasonality by showing lower margins compared to the first half of 2022. However, as we remain focused on efficiencies and sales mix, our overall results show an improvement versus the third quarter of '21.

謝謝你，瑪麗亞，大家早安。第三季的表現符合預期的季節性，與 2022 年上半年相比，利潤率較低。

Our cost of sales continued to be negatively impacted by higher corn and soybean meal prices, both in U.S. dollars and in Mexican pesos. Those main raw materials alone showed increases of around 20% versus the same period of '21.

我們的銷售成本持續受到以美元和墨西哥比索計的玉米和豆粕價格上漲的負面影響。光是這些主要原料就比 21 年同期成長了 20% 左右。

During the third quarter of '22 in terms of poultry markets in Mexico, we observed a slowdown in demand, which is a characteristic of this time of the year. This effect put some pressure on our net price compared to the first half of 2022.

22 年第三季墨西哥家禽市場方面，我們觀察到需求放緩，這是每年這個時候的一個特徵。與 2022 年上半年相比，這種影響給我們的淨價格帶來了一些壓力。

Despite that challenge, as a result of our commercial focus on sales, channel mix improvements and service, we were able to show better pricing when compared to the third quarter of '21. Regarding our other segments, we kept focus on operational efficiencies, both in SASA and (inaudible), and we consider we are heading towards the right direction.

儘管面臨這項挑戰，由於我們對銷售、通路組合改進和服務的商業關注，我們能夠展示比 21 年第三季更好的定價。至於我們的其他部門，我們一直在關注 SASA 和（聽不清楚）的營運效率，我們認為我們正在朝著正確的方向前進。

About our U.S. operation during the third quarter of '22, we started to observe some slowdown on commodity markets, particularly for white meat and [late quarter] prices. Despite those challenges, and by working towards efficiencies, we managed to keep delivering positive results. The aforementioned resulted in report sales will increase of 20.9% for the quarter and 24.5% for the 9-month period when compared to the same period of 2021. While in terms of cost of sales, we showed an increases of 20.3% for the quarter and 22.7% for the 9 months of 2022. This led us to an EBITDA of MXN 1,525.8 million with a margin of 6.2% for the third quarter of '22 compared to the MXN 1,127.4 million and 5.6% of the third quarter of '21.

關於 2022 年第三季我們在美國的業務，我們開始觀察到商品市場出現一些放緩，特別是白肉和[季度末]價格。儘管面臨這些挑戰，透過努力提高效率，我們設法繼續取得積極的成果。上述結果表明，與 2021 年同期相比，本季銷售額將成長 20.9%，前 9 個月銷售額將成長 24.5%。月的成長率為22.7%。

Challenging conditions in terms of raw material cost has also required higher investment on working capital. However, our financial discipline allow us not only to cover those requirements, but also to maintain a healthy financial position, reaching a net cash level of MXN 16,413.5 million, which will allow us to face potential uncertainties in the near future and to continue supporting our growth strategies. Now Daniel will join us for a discussion of the financial results.

原物料成本方面的挑戰也要求增加營運資本投資。然而，我們的財務紀律不僅使我們能夠滿足這些要求，而且還能保持健康的財務狀況，達到164.135 億墨西哥比索的淨現金水平，這將使我們能夠在不久的將來面對潛在的不確定性，並繼續支持我們的業務。現在丹尼爾將與我們一起討論財務表現。

Thank you, Rodolfo, and good morning, everyone. As a result of the conditions I've mentioned before, our company's third quarter 2022 net sales totaled MXN 24,457.8 million, MXN 4,228 million or 20.9% higher than the MXN 20,229 million reported in the third quarter of '21. Total cost of sales for the quarter was MXN 21,189.7 million, representing an increase of 20.3% when compared to the MXN 17,619 million for the same period of 2021. In terms of the first 9 months for the year, cost of sales increased [22.47%] versus the same period of 2021. Gross profit for the quarter was MXN 3,268.1 million with a gross margin of 13.4%, which is higher when compared to the MXN 2,610 million, 12.9% reported in the same period of 2021. For the first 9 months of the year, we reached gross profit of MXN 14,308.2 million, with a margin of 19%. This amount is higher than the gross profit of MXN 10,787.9 million and 17.8% margin risk in the 9 months of 2021.

謝謝你，魯道夫，大家早安。由於我之前提到的條件，我們公司 2022 年第三季的淨銷售額總計為 244.578 億墨西哥比索，比 2021 年第三季報告的 202.29 億墨西哥比索高出 42.28 億墨西哥比索，即 20.9%。本季總銷售成本為 211.897 億墨西哥比索，較 2021 年同期的 176.19 億墨西哥比索成長 20.3%。 32.681 億墨西哥比索，毛利率為13.4%，高於2021 年同期的26.10 億墨西哥比索，毛利率為12.9%。 %。這筆金額高於 2021 年 9 個月的毛利 107.879 億墨西哥比索和 17.8% 的保證金風險。

Total SG&A for the second quarter was MXN 2,114.2 million, representing 8.6% of our total sales, which compares to the MXN 1,790.9 million, an 8.9% of the total sales achieved in the third quarter of '21. For the 9 months of '22, we reported an SG&A of MXN 6,236.7 million or 8.3% of total sales, while in the 9 months of '21, we reported MXN 5,157.4 million and 8.5% of total sales.

第二季的銷售及管理費用總額為 21.142 億墨西哥比索，占我們總銷售額的 8.6%，而 21 年第三季為 17.909 億墨西哥比索，佔總銷售額的 8.9%。在22 年9 個月中，我們報告的銷售及管理費用為62.367 億墨西哥比索，佔總銷售額的8.3%，而在21 年9 個月中，我們報告為51.574 億墨西哥比索，佔總銷售額的8.5%。

Operating income for the third quarter of 2022 totaled at MXN 1,131.2 million and operating margin of 4.6% higher than the MXN 738.4 million and 3.7% margin reached for the third quarter of 2021. Operating margin for the 9 months of 2022 was 10.8% compared to the 8.9% reached in the same period of 2021. Our EBITDA margin was 6.2% for the quarter, an increase when compared with 5.6% in the third quarter of '21.

2022 年第三季的營業收入總計為11.312 億墨西哥比索，營業利潤率比2021 年第三季的7.384 億墨西哥比索高出4.6%，利潤率為3.7%。 10.8%，而2021 年第三季的營業利潤率為10.8%，較 2021 年同期達到 8.9%。

For the first 9 months of the year of '22 and '21 EBITDA margins were 12.3% and 10.7%, respectively. For the quarter, we had a net financial income of MXN 116.5 million and MXN 38.6 million for the 9 months of 2022, compared to the net financial income of MXN 459.6 million for the third quarter of '21 and MXN 682.2 million for the 9 months of '21.

22 年和 21 年前 9 個月的 EBITDA 利潤率分別為 12.3% 和 10.7%。本季度，我們的淨財務收入為1.165 億墨西哥比索，2022 年前9 個月為3,860 萬墨西哥比索，而2021 年第三季的淨財務收入為4.596 億墨西哥比索，前9 個月為6.822 億墨西哥比索'21.

Our total taxes were MXN 285.3 million for the third quarter compared to MXN 380.6 million recognized in the same period of 2021. For the 9 months for 2022, our total taxes were MXN 2,117.9 million, higher than the income taxes of MXN 1,733.3 million for the same period of 2021. All the above led us to a positive net control in interest income of MXN 972.1 million and 3.97% margin for the third quarter of '22 compared to MXN 843.8 million and [4.178%] margin reported in the third quarter of '21.

我們第三季的稅金總額為2.853 億墨西哥比索，而2021 年同期確認的稅金為3.806 億墨西哥比索。億墨西哥比索。比索和[4.178%] 利潤率'21。

For the 9 months of 2022, net control and interest income totaled MXN 6,072.7 million with 8.1% margin, which is higher than the MXN 4,420.9 million, 7.3% margin of 9 months of '21. Going into our balance sheet, we kept a healthy financial structure with a net cash level of MXN 17,413.55 million at the end of September '22, and this has allowed us to keep with our CapEx allocation plans, which showed an increase of 31.3% when compared to the same period in 2021. Thank you, and I will turn the call back to Rodolfo for final comments.

2022 年 9 個月，淨控制權和利息收入總計 60.727 億墨西哥比索，利潤率 8.1%，高於 2021 年 9 個月的 44.209 億墨西哥比索，利潤率 7.3%。從我們的資產負債表來看，我們保持了健康的財務結構，截至22 年9 月末的淨現金水準為174.1355 億墨西哥比索，這使我們能夠堅持我們的資本支出分配計劃，該計劃在2022 年9月增長了31.3%與 2021 年同期相比。

Thanks, Daniel. Now we are entering in the fourth quarter, which historically is a good one in terms of volumes sold. Particularly in the United States, we think that most of the negative impact of the slowdown of prices will be seen in the fourth quarter of '22. In terms of cost, even when we have seen soybean meal prices starting to decline, there is a lot of uncertainties in this arena, so we will remain following closely those trends while being disciplined with our hedging policy.

謝謝，丹尼爾。現在我們進入了第四季度，從銷售量來看，這在歷史上是一個不錯的季度。特別是在美國，我們認為價格放緩的大部分負面影響將在 22 年第四季顯現。在成本方面，即使我們看到豆粕價格開始下跌，但這個領域仍然存在許多不確定性，因此我們將繼續密切關注這些趨勢，同時遵守我們的對沖政策。

We will remain focused in serving all of our commercial channels and be close to our final customers and consumers bringing high-quality products to their table. Even when the near future can be volatile as a result of the macroeconomic uncertainties in the country in which we compete, we continue to focus on our growth plans. We have a very solid financial structure that enable us to support our projects and add value to our investors.

我們將繼續專注於為我們所有的商業管道提供服務，並貼近我們的最終客戶和消費者，將高品質的產品帶到他們的餐桌上。即使在不久的將來由於我們所在國家的宏觀經濟不確定性而可能出現波動，我們仍會繼續專注於我們的成長計劃。我們擁有非常穩固的財務結構，使我們能夠支持我們的項目並為投資者增加價值。

In this regard, it is key for us to continue focusing on those things we can control while delivering positive results in terms of profitability and growth. With that, we will now take your questions.

在這方面，我們的關鍵是繼續專注於我們可以控制的事情，同時在獲利能力和成長方面取得積極成果。現在，我們將回答您的問題。

(Operator Instructions) We have a question from Juan Ponce from Bradesco BBI.

（操作員說明）我們有來自 Bradesco BBI 的 Juan Ponce 的問題。

So we saw this morning reports on bird flu places in Mexico stayed than previously in Jalisco. How much do these states represent total supply? And do you think it will be contained? And in the same context, what are your views on the government waiving importation requirements to stimulate supply?

因此，我們今天早上看到有關墨西哥禽流感場所的報道比哈利斯科州之前的情況要多。這些州代表了多少總供應量？你認為它會被遏制嗎？在同樣的背景下，您對政府放棄進口要求以刺激供應有何看法？

Yes, the report of (inaudible) just one wild bird, I think, it was a falcon, and they found it and obviously dead and they discover it was positive to (inaudible) influenza. But that's it. And there is no other reports that it was very close was in an area of the Jalisco state, and that's the report just in wild birds and backyard but it's not in the commercial. And all these outbreaks are under control according to the (inaudible).

是的，（聽不清楚）只有一隻野鳥的報告，我想，它是一隻獵鷹，他們發現了它，顯然已經死了，他們發現它對（聽不清楚）流感呈陽性。但僅此而已。沒有其他報導稱它非常接近哈利斯科州的某個地區，這只是在野鳥和後院的報道，但廣告中沒有。根據（聽不清楚），所有這些疫情都已控制。

Okay. And what are your views on the government weighting importation requirements (inaudible)? Do you think there is a risk in terms of sanitary regulations, et cetera?

好的。您對政府加權進口要求有何看法（聽不清楚）？您認為衛生法規等方面是否有風險？

Well, we are -- and the whole industry is following the rules of the sanitary officials. So even we subscribe the act, we are going to follow all the rules of all the measures to maintain this, the health of the industry in terms of diseases and all the risk, that any importation can cause in Mexico. So -- but Bachoco as a company agreed to keep working with the actual regulations. And I think it's the same thoughts of all the whole industry to keep the country in the same way in terms of health and biosecurity.

嗯，我們是──整個產業都在遵守衛生官員的規則。因此，即使我們同意該法案，我們也將遵守所有措施的所有規則，以維護該行業在疾病方面的健康以及任何進口可能在墨西哥造成的所有風險。所以，但 Bachoco 作為一家公司同意繼續遵守實際法規。我認為整個產業都有同樣的想法，讓國家在健康和生物安全方面保持一致。

(Operator Instructions) And at this moment, I show no further questions. I would like to turn the call back to you for any final remarks.

（操作員指示）此時此刻，我沒有再提出任何問題。我想將電話轉回給您，以便您發表最後的意見。

Thank you all for joining us this morning. If you have any further questions, please contact our Investor Relations area who will be glad to assist you. Thank you very much.

感謝大家今天早上加入我們。如果您還有任何疑問，請聯絡我們的投資者關係區域，他們將很樂意為您提供協助。非常感謝。

Thank you. Ladies and gentlemen, this concludes today's conference. We thank you for participating. You may now disconnect.

謝謝。女士們、先生們，今天的會議到此結束。我們感謝您的參與。您現在可以斷開連線。