Grupo Bafar with two digit growth in Operating Income and

THIRD QUARTER RESULTS FOR 2011
 Grupo Bafar with two digit growth in
Operating Income and Operation Flow
Third Quarter 2011 versus Third Quarter 2010
Sales volumes increased by 6.3%
Sales increased in 6.1
% (8.4% in USD), and reached $1,546 million pesos (U.S. $123.7)
Operating income increased by 14% (16.5% in dollars)
EBITDA increased by 12.2% (14.6% in dollars)
Accumulated 2011 vs Accumulated 2010
Sales volumes increased by 5.3%
Sales increased by 6.2% (11.8% in dollars) and amounted to $4,505 million in pesos (U.S.
$373.3)
Operating income increased by 12.4% (18.3% in dollars)
EBITDA increased by 13.3% (19.3% in dollars)
Chihuahua, Chih., Mexico, 28 de October de 2011 – Grupo Bafar, S.A.B. de C.V., leading company in
Mexico, with production and commercialization of meat products, published results for third quarter,
2011.
Comments from Management
Eugenio Baeza Fares, Grupo Bafar's General Director, expressed his comments about the results
attained: We still have high prices in raw materials and the increase in exchange rate raised the pressure
to keep competitive prices; however, at a stable market and leveraging on our strengths, I am pleased
again to announce a two digit growth in operating profit and operating flow (EBITDA), strongly
supported by the results of the third quarter, 2011, we attained an accumulated increase in sales of
6.2%, while the performance at the operation profit level showed a relevant increase of 12%, due to our
growth in organics, which allowed us to attain a 13% increase in operating flow.
Financial and Operating Results
Net Sales
1
Sales for the third quarter of 2011 amounted to $1,546 million pesos (U.S. $123.7), compared to $1,457
million pesos (U.S. $114) from the same period last year, a growth of 6.1% (8.4% in USD). This growth
was driven by the 6.2% increase in sales volume.
Accumulated sales in 2011 amounted to $4,504 million pesos (U.S. $373.3), compared to $4,241 million
pesos (U.S. $333.8) from the same period last year, a growth of 6.2% (11.8% in USD). This growth was
driven by the 5.3% increase in sales volume.
Sales Cost
Sales cost for the third quarter in 2011 was $1,069.3 million pesos (U.S. $85.5) and accounted for 69.1%
of sales, a higher percentage than the one in the third quarter of 2010 (67.8%) mainly because of high
cost in raw materials. Gross profit for the third quarter in 2011 was $476.5 million pesos (U.S. $38.1)
while in 2010 it was $468.7 million pesos (U.S. $36.7), resulting in a growth of 1.6% (3.9% in dollars).
Accumulated sales cost up to September, 2011 was $2,994.6 million pesos (U.S. $248.2) and accounted
for 66.4% of sales, less than the figure attained in the third quarter of 2010 (66.6%). Accumulated gross
profit up to September, 2011 was $1,510 million pesos (U.S. $125.1) while in 2010 it was $1,416 million
pesos (U.S. $111.5), resulting in a growth of 6.6% (12.2% in dollars).
General Expenses
General expenses were $382.1 million pesos (U.S. $30.5) in the third quarter of 2011, compared to
$385.8 million in pesos (U.S. $30.2) in the third quarter of 2010, and the percentage in relation to sales
was 24.7% for 2011 and 26.4% for 2010.
Accumulated expenses up to September, 2011 were $1,221 million pesos (U.S. $101.2) compared to
$1,159 million pesos (U.S. $91.2) in 2010, and the percentage in relation to sales was 27.1% in 2011 and
27.3% in 2010.
Operating Income
The operating income for the third quarter of 2011 significantly increased by 14% (16.5% in USD), in
comparison with the same time period in the previous year, and totaled $94.4 million pesos (U.S. $7.5)
or 6.1% of sales, compared to $82.8 million pesos (U.S. $6.4), or 5.7% of sales.
The accumulated operating income also showed an important increase of 12.4% (18.3% in USD), in
comparison with the same time period in the previous year, and totaled $288.8 million pesos (U.S.
$23.9) or 6.4% of sales, compared to $256.9 million pesos (U.S. $20.2), or 6% of sales.
Operating Flow - EBITDA
The EBITDA for the third quarter of 2011 was $142.9 million pesos (U.S. $11.4), an increase of 12.1%
(14.6% in dollars) in comparison with the same period last year. The accumulated figure also increased
in 13.3% (19.3% in USD), attaining $435.7 million pesos ($36.1 USD).
Comprehensive Income (or Loss) from Financing
2
The comprehensive income (or loss) from financing for the third quarter in 2011 reached $89.4 million
pesos, compared to the $6.5 million pesos attained during the same time period the previous year. The
breakdown is as follows:
The comprehensive income from financing, accumulated up to September, 2011 reached $102.6 million
pesos, compared to the $3.8 million pesos attained during the same time period the previous year. The
breakdown is as follows:
Net Majority Income
This third quarter, 2011 there was a Net majority loss, showing ($17.3) million pesos (U.S. $1.3),
compared to the $72.8 million pesos (U.S. $5.7) of profit attained in the third quarter of 2010, as a result
of the loss in exchange rate, $93.6 million pesos in the variance in exchange rate, 3Q11 versus 3Q10.
Accumulated net majority profit decreased in 40.3% (37.1% in USD), attaining $124.8 million pesos
($10.3 USD), as a result of the above mentioned situation.
Rates and proportions
The ratio of current assets to current liabilities was 1.28 times versus 1.5 times in 2010, while the
portfolio stood at 32 days, almost the same as the previous year. Also, inventory turns was 8 times,
versus 10 day turns in 2010.
Liabilities in banks increased as a result of the depreciation of peso versus dollar, and we had to leverage
in dollars in order to honor our commitments with suppliers; however, net cash liabilities in banks
increased just in 3.7%, considering the operations for funds allocated to third parties.
**last twelve months
Performance ratios were affected, as we already mentioned, by the increase in the Peso-Dollar
exchange rate, which significantly reduced net profit created in the last twelve months. The following
graph shows the variance percentages compared to the third quarter of the previous year. Net profit
figures are:
**last twelve months
3
Grupo Bafar, S.A.B. de C.V.
Balance General
Al 30 de Septiembre de 2011 y 2010
(miles de pesos)
CONCEPTOS
Septiembre 2011
Importe
Septiembre 2010
%
Importe
%
ACTIVO TOTAL
4,959,726
100%
4,153,084
100%
ACTIVO CIRCULANTE
Efectivo e inversiones disponibles
Cuentas y documentos por cobrar a clientes (neto)
Otras cuentas y documentos por cobrar (neto)
Inventarios
Otros activos circulantes
ACTIVO A LARGO PLAZO
Cuentas y documentos por cobrar (neto)
Inversiones en acciones de subs. no consolidadas,
negocios conjuntos y asoc.
Otras inversiones
INMUEBLES, PLANTA Y EQUIPO (NETO)
Inmuebles
Maquinaria y equipo industrial
Otros equipos
Depreciacion acumulada
Construcciones en proceso
1,851,626
554,089
529,326
251,399
514,150
2,661
37%
1,192,787
103,635
578,614
131,660
372,339
6,538
29%
1,758,744
1,080,895
1,044,324
543,357
1,031,774
121,942
35%
40%
2%
1,670,671
990,757
928,416
519,872
854,537
86,163
328,745
7%
266,472
6%
OTROS ACTIVOS
1,020,611
21%
1,023,154
25%
PASIVO TOTAL
2,050,680
100%
1,370,129
100%
PASIVO CIRCULANTE
Proveedores
Créditos bancarios
Otros créditos con costo
Impuestos por pagar
Otros pasivos circulantes sin costo
PASIVO A LARGO PLAZO
Créditos bancarios
OTROS PASIVOS LARGO PLAZO SIN COSTO
1,450,468
437,451
856,878
60,059
17,236
78,844
154,500
154,500
445,712
71%
58%
22%
796,106
362,193
265,327
67,979
15,970
84,636
194,500
194,500
379,523
CAPITAL CONTABLE
2,909,047
100%
2,782,955
100%
18,548
1%
12,765
0%
CAPITAL CONTABLE DE LA PARTICIPACION CONTROLADORA
2,890,499
99%
2,770,190
100%
CAPITAL CONTRIBUIDO
Capital social pagado
Prima en venta de acciones
CAPITAL GANADO (PERDIDO)
Resultados acumulados y reservas de capital
Otro resultado integral acumulado
472,615
150,795
321,820
2,417,884
2,601,532
(183,647 )
16%
546,793
148,929
397,864
2,223,396
2,407,044
(183,647 )
20%
ACTIVOS INTANGIBLES Y CARGOS DIFERIDOS (NETO)
CAPITAL CONTABLE DE LA PARTICIPACION NO
CONTROLADORA
11%
11%
5%
10%
0%
22%
21%
11%
21%
21%
42%
3%
1%
4%
8%
8%
5%
11%
83%
89%
-6%
2%
14%
3%
9%
0%
24%
22%
13%
21%
2%
26%
19%
5%
1%
6%
14%
14%
28%
5%
14%
80%
86%
-7%
4
Grupo Bafar, S.A.B. de C.V.
Estado de Resultados trimestral
Del 1 de Julio al 30 de Septiembre de 2011 y 2010
(miles de pesos)
CONCEPTOS
Ventas Netas
Costo de ventas
Utilidad (pérdida) bruta
Gastos generales
Utilidad (pérdida) de operación
Otros ingresos y (gastos), neto
Resultado integral de financiamiento
Trimestre año actual
Importe
Trimestre año anterior
%
1,545,879 100%
1,069,334 69%
476,545 31%
382,141 25%
94,405
6%
( 13,297 ) -1%
(89,462 ) -6%
Importe
%
1,456,873 100%
988,164 68%
468,708 32%
385,896 26%
82,814
6%
( 1,124 )
0%
6,594
0%
Variación
% aumento /
(disminución)
89,006
81,170
7,837
(3,754 )
11,591
(12,172 )
(96,056 )
6.1%
8.2%
1.7%
-1.0%
14.0%
1082.7%
-1456.7%
Utilidad (pérdida) antes de impuestos a la utilidad
( 8,354 )
-1%
88,284
6%
( 96,637 )
-109.5%
Impuestos a la utilidad
Utilidad (pérdida) antes de las operaciones
discontinuadas
Operaciones discontinuadas
Utilidad (pérdida) neta consolidada
Participación no controladora en la utilidad
(pérdida) neta
Participación controladora en la utilidad (pérdida)
neta
2,135
0%
11,563
1%
(9,428 )
-81.5%
( 10,489 )
-1%
76,720
5%
( 87,209 )
-113.7%
( 10,489 )
-1%
76,720
5%
( 87,209 )
-113.7%
(6,903 )
0%
3,869
0%
(10,772 )
-278.4%
( 17,392 )
-1%
72,851
5%
( 90,244 )
-123.9%
5
Grupo Bafar, S.A.B. de C.V.
Estado de Resultados
Del 1 de Enero al 30 de Septiembre de 2011 y 2010
(miles de pesos)
CONCEPTOS
Ventas Netas
Costo de ventas
Utilidad (pérdida) bruta
Gastos generales
Utilidad (pérdida) de operación
Otros ingresos y (gastos), neto
Resultado integral de financiamiento
Año Actual
Importe
Año Anterior
%
4,504,620 100%
2,994,608 66%
1,510,012 34%
1,221,135 27%
288,877
6%
( 14,363 )
0%
( 102,632 ) -2%
Importe
%
4,241,238 100%
2,824,593 67%
1,416,645 33%
1,159,660 27%
256,985
6%
( 2,208 )
0%
( 3,824 )
0%
Variación
% aumento /
(disminución)
263,382
170,015
93,366
61,475
31,892
(12,155 )
(98,808 )
6%
6%
7%
5%
12%
551%
2584%
Utilidad (pérdida) antes de impuestos a la utilidad
171,882
4%
250,953
6%
(79,070 )
-32%
Impuestos a la utilidad
Utilidad (pérdida) antes de las operaciones
discontinuadas
Operaciones discontinuadas
Utilidad (pérdida) neta consolidada
Participación no controladora en la utilidad
(pérdida) neta
Participación controladora en la utilidad (pérdida)
neta
32,775
1%
36,085
1%
(3,310 )
-9%
139,108
3%
214,867
5%
(75,760 )
-35%
139,108
3%
214,867
5%
(75,760 )
-35%
14,238
0%
5,615
0%
8,624
154%
124,869
3%
209,253
5%
(84,384 )
-40%
6