Industrias Bachoco reported that it made capital investments of Ps. 2,954.9 million in the first nine months of 2022, representing an increase of 31.3% year-on-year.
Most of this was allocated to organic growth and productivity projects at all of the company’s facilities.
On January 24, 2022, Bachoco acquired 100% of the shares of RYC Alimentos, a multi-protein processor and distributor with production operations in Puebla, Mexico.
This transaction was approved by the Comisión Federal de Competencia Económica (Cofece).
The purchase price was Ps. 1,251.5 million and the agreement contemplates the acquisition of two plants located in Puebla, Puebla, as well as its scheme of approximately 21 stores located in four states of the Mexican Republic (Puebla, Oaxaca, Veracruz and Tlaxcala).
In 2020, the company made property, plant and equipment acquisitions of Ps. 2,752.3 million, which were mainly allocated to its productivity projects, the replacement of part of its transportation fleet and other equipment for its facilities, as well as its organic growth plans.
Then, in 2021, Bachoco made property, plant and equipment acquisitions of Ps. 3,479.5 million, which were used for practically the same purposes as the previous year.
The company limits its exposure to credit risk by investing only with counterparties that have an investment-grade or investment-grade credit rating.
Bachoco constantly monitors credit ratings and because it only invests in securities with high credit ratings, it does not anticipate that any counterparty will default on its obligations.
The company is a leader in the Mexican poultry industry and the sixth largest poultry company in the world.
Founded in 1952, Bachoco is headquartered in Celaya, Mexico, and is vertically integrated.
Its main lines of business are chicken, eggs, feed, pork, and value-added turkey and beef products.
The company has more than 1,000 facilities organized in nine production complexes and 80 distribution centers in Mexico and a business unit in the United States.
It currently generates more than 32,000 direct jobs.