Business Wire | Apr 29, 2021 05:15PM EDT

Bachoco Announces First Quarter 2021 Results

Apr. 29, 2021

CELAYA, Mexico--(BUSINESS WIRE)--Apr. 29, 2021--Industrias Bachoco, S.A.B. de C.V., "Bachoco" or "the Company", (NYSE: IBA; BMV: Bachoco) announced today its unaudited results for the first quarter ("1Q21") ending March 31, 2021. All figures have been prepared in accordance with International Financial Reporting Standard ("IFRS") and are presented in nominal million Mexican Pesos ("$"), except earnings per share.

HIGHLIGHTS- 2021 vs. 2020

* Net sales increased 23.0% in 1Q21. * EBITDA margin was 15.1% in 1Q21 vs 6.0% in 1Q20. * Earnings per basic and diluted share were $3.50 in 1Q21 vs $3.61 in 1Q20.

CEO COMMENTS

Mr. Rodolfo Ramos Arvizu, Chief Executive Officer of Bachoco, stated, "We continued observing a good balance between supply and demand which allowed us to achieve outstanding results in our first quarter of 2021, despite adjustments in sales volume, as a result of remaining COVID-19 confinement measures that had effects in some of the markets in which we compete.

Regarding our cost of sales, this quarter we observed the impact of higher raw materials prices in USD terms. Overall, our cost was 11.7% higher than the same quarter of 2020. However, the good balance between supply and demand previously mentioned, allowed us to translate some of that increase to our sales price while we keep doing efforts to also absorb part of that increase thru efficiencies in our processes as well.

Additionally, we have managed to keep our SG&A under control. For 1Q21 ours SG&A as percentage of sales was 8.5%, compared to the 10% recorded in the same period of 2020.

By keeping focus on the things we can control and by doing our best to manage external factors, we were able to achieve an EBITDA in 1Q21 of $2,913.4 million or 15.1% EBITDA margin. This compares to the $947.3 million and 6.0% margin reported for 1Q20.

We remain committed to our investors that we will keep a strong financial position while continuing to grow. As a result, we reported CAPEX of $555.7 million for the quarter which compares to the $292.7 million for the same period of 2020. This was achieved while generating a net cash position of $17,208.1 million by the end of 1Q21.

Unfortunately, the Covid-19 pandemic continues affecting not only Mxico, but also economic conditions all around the world. Even if we did not observe material impacts in our operations or results during 1Q21, we are aware that conditions might change overnight. Therefore, we remain focused on reinforcing our internal capabilities, which will allow us to keep performing at our very best."

Executive Summary

The following financial information is expressed in millions of nominal pesos, except for amounts per share and per ADR, with comparative figures for the same periods of 2020.

QUARTERLY RESULTS

NET SALES BY GEOGRAPHY

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Net sales 19,357.6 15,738.4 3,619.2 23.0

Net sales in Mexico 14,629.4 11,067.6 3,561.8 32.2

Net sales in the U.S. 4,728.2 4,670.8 57.4 1.2

NET SALES BY SEGMENT

In millions of pesos

1Q21

1Q20

Change

$

$

$

%

Net sales

19,357.6

15,738.4

3,619.2

23.0

Poultry

16,983.9

14,162.8

2,821.1

19.9

Other

2,373.8

1,575.6

798.1

50.7

NET VOLUME SOLD BY SEGMENT

NET SALES BY SEGMENT

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Net sales 19,357.6 15,738.4 3,619.2 23.0

Poultry 16,983.9 14,162.8 2,821.1 19.9

Other 2,373.8 1,575.6 798.1 50.7

NET VOLUME SOLD BY SEGMENT

In tons Change

1Q21 1Q20 Volume %

Total sales volume: 558,082 588,018 (29,935.7) (5.1)

Poultry 416,978 457,167 (40,189.3) (8.8)

Others 141,104 130,851 10,253.6 7.8

In 1Q21, the Company's net sales totaled $19,357.6 million; $3,619.2 million or 23.0% more than $15,738.4 million reported in 1Q20. This was a result of better prices in our main business lines and higher volume sold in Others due to the integration of SASA.

In 1Q21, sales of our U.S. operations represented 24.4% of our total sales compared with 29.7% in 1Q20.

GROSS PROFIT

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Cost of sales 15,139.6 13,557.3 1,582.3 11.7

Gross profit 4,218.0 2,181.1 2,036.9 93.4

Gross margin 21.8% 13.9% - -

The cost of sales totaled $15,139.6 million, representing $1,582.3 million or 11.7% higher than $13,557.3 million reported in the same period of 2020. This increase was mainly driven higher raw material prices in dollar and in peso terms when compared to the same period of 2020.

The Company's gross profit in 1Q21 was $4,218.0 million, with a gross margin of 21.8%. This result is higher when compared to a gross profit of $2,181.1 million and a gross margin of 13.9% reported in 1Q20.

SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ("SG&A")

In millions of pesos

1Q21 1Q20 Change

$ $ $ %

Total SG&A 1,637.3 1,572.7 64.6 4.1

Total SG&A expenses in 1Q21 were $1,637.3 million; $64.6 million or 4.1% more than the $1,572.7 million reported 1Q20. Total SG&A expenses, as a percentage of net sales, represent 8.5% in 1Q21 and 10.0% in 1Q20.

OTHER INCOME (EXPENSE), NET

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Other income (expense), net (21.8) (4.5) (17.3) 384.4

Other income or other expenses include the sale of byproducts and unused assets. We register such sales as expenses when the sales price is below the book value of those assets.

OPERATING INCOME

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Operating income 2,559.0 604.0 1,955.0 323.7

Operating margin 13.2% 3.8% - -

Operating income in 1Q21 totaled $2,559.0 million with an operating margin of 13.2%; higher than the operating income of $604.0 million and 3.8% operating margin reported in 1Q20. The increase in operating income is mainly attributed to higher revenues in our main business lines.

NET FINANCIAL INCOME

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Net Financial Income (Expense) 319.6 2,426.5 (2,106.9) (86.8)

Financial Income 374.4 2,483.3 (2,108.9) (84.9)

Financial Expense 54.8 56.8 (2.0) (3.5)

In 1Q21, the Company reported net financial income of $319.6 million, compared to net financial income of $2,426.5 million reported in the same period of 2020. This lower financial income was a result of the depreciation of the Mexican peso of around 2% from 4Q20 to 1Q21 vs the depreciation of around 26% from 4Q19 to 1Q20.

TAXES FOR THE PERIOD

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Total Taxes 803.9 860.3 (56.4) (6.6)

Income tax 524.7 910.5 (385.8) (42.4)

Deferred income tax 279.2 (50.2) 329.4 (656.1)

Total taxes for the 1Q21 were $803.9 million, compared to $860.3 million in the same period of 2020.

NET INCOME

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Net income 2,074.6 2,170.2 (95.5) (4.4)

Net margin 10.7% 13.8% - -

Non-Controlling Interest income (25.8) 3.5 (29.3) n/a

Net controlling interest income 2,100.4 2,166.6 (66.3) n/a

Basic and diluted income per share^1 3.50 3.61 (0.1) n/a

Basic and diluted income per ADR^2 42.02 43.34 (1.3) n/a

Weighted average Shares outstanding^3 599,835 599,843 - -

1 In pesos 2 in pesos, an ADR is equal to twelve shares 3 In thousands of shares

The net income for 1Q21 was $2,074.6 million, representing a basic and diluted income of $3.50 pesos per share. This result compares to a net income of $2,170.1 million, which represented $3.61 pesos of basic and diluted income per share in 1Q20. Net margin for the 1Q21 was 10.7% compared to 13.8% reported in 1Q20.

EBITDA

In millions of pesos 1Q21 1Q20 Change

$ $ $ %

Net controlling interest income 2,100.4 2,166.6 (66.3) (3.1)

Income tax expense (benefit) 803.9 860.3 (56.4) (6.6)

Result in associates (25.8) 3.5 (29.3) (830.2)

Net finance (income) expense (319.6) (2,426.5) 2,106.9 (86.8)

Depreciation and amortization 354.5 343.3 11.1 3.2

EBITDA 2,913.4 947.3 1,966.1 207.6

EBITDA Margin (%) 15.1% 6.0% - -

Net sales 19,357.6 15,738.4 3,619.2 23.0

EBITDA in 1Q21 reached $2,913.4 million, representing an EBITDA margin of 15.1%, compared to an EBITDA of $947.3 million in 1Q20 with an EBITDA margin of 6.0%.

BALANCE SHEET DATA

BALANCE SHEET DATA

In millions of pesos Mar 31, 2021 Dec. 31, 2020 Change

$ $ $ %

TOTAL ASSETS 59,877.1 58,475.0 1,402.1 2.4

Cash and cash equivalents 19,791.7 19,242.4 549.3 2.9

Accounts receivable 4,655.5 4,366.7 288.8 6.6

TOTAL LIABILITIES 13,612.9 14,548.2 (935.3 ) (6.4 )

Accounts payable 4,217.4 5,834.0 (1,616.6 ) (27.7 )

Short-term debt 1,119.0 1,251.7 (132.8 ) (10.6 )

Long-term debt 1,464.7 1,460.4 4.3 0.3

TOTAL STOCKHOLDERS' EQUITY 46,264.3 43,926.8 2,337.5 5.3

Capital stock 1,174.2 1,174.3 (0.1 ) (0.0 )

Cash and equivalents as of March 31, 2021 totaled $19,791.7 million; $549.3 million or 2.9% higher than $19,242.4 million as of December 31, 2020.

Total debt as of March 31, 2021 totaled $2,582.6 million, compared to $2,712.1 million reported as of December 31, 2020.

Net cash as of March 31, 2021 was $17,209.1 million, compared to net cash of $16,530.2 million as of December 31, 2020.

CAPEX

CAPITAL EXPENDITURES

In millions of pesos 2021 2020 Change

$ $ $ %

Capital Expenditures 555.7 292.7 263.0 89.9

Total CAPEX for the 1Q21 was $555.7 million, which was mainly allocated toward organic growth and productivity projects across all our facilities.

STOCK INFORMATION

As of March 31, 2021

Total Shares 600,000,000

Total free float 26.75%

Market cap (millions of pesos) $40,824

SHARE PRICE

Mexican Stock Exchange

The New York Stock Exchange

Ticker Symbol: Bachoco

Ticker Symbol: IBA

In nominal pesos per Share

In U.S. Dollar per ADR

Month

High

Low

Close

High

Low

Close

March

69.42

67.16

68.04

40.45

38.30

39.95

February

71.99

68.02

69.42

43.19

39.67

39.67

January

73.60

69.22

69.28

44.66

41.14

41.14

December

75.48

71.41

74.85

45.28

42.52

45.16

November

70.44

64.55

70.06

41.55

36.23

41.53

October

70.79

66.42

66.42

39.92

37.31

37.31

Source: Yahoo Finances

ANALYST COVERAGE

SHARE PRICE



Mexican Stock Exchange The New York Stock Exchange

Ticker Symbol: Bachoco Ticker Symbol: IBA

In nominal pesos per Share In U.S. Dollar per ADR

Month High Low Close High Low Close

March 69.42 67.16 68.04 40.45 38.30 39.95

February 71.99 68.02 69.42 43.19 39.67 39.67

January 73.60 69.22 69.28 44.66 41.14 41.14

December 75.48 71.41 74.85 45.28 42.52 45.16

November 70.44 64.55 70.06 41.55 36.23 41.53

October 70.79 66.42 66.42 39.92 37.31 37.31

Source: Yahoo Finances

ANALYST COVERAGE

Institution Analyst name E-mail

ACTINVER Enrique Mendoza Farias emendoza@actinver.com.mx

BBVA BANCOMER Pablo Abraham Peregrina pablo.abraham@bbva.com

GBM Miguel Tortolero matortolero@gbm.com.mx

INTERCAM Richard Horbach Martinez rhorbach@intercam.com.mx

JP MORGAN Ulises Argote ulises.argote@jpmorgan.com

SANTANDER Hector Maya L?pez hmmaya@santander.com.mx

APPENDICES

For reference, some figures have been translated into millions of U.S. dollars ("USD") using an exchange rate of $20.42 per USD $1.0, which corresponds to the rate at the close of March 31, 2021, according to Mexico's National Bank.

* Consolidated Statement of Financial Position * Consolidated Statement of Income * Consolidated Statement of Cash Flows * Derivatives Position Report

CONSOLIDATED STATEMENT OF FINANCIAL POSITION-Unaudited- In U.S. March 31, December 31, DollarIn million pesos 2021 2021 2020*

TOTAL ASSETS $ 2,932.3 59,877.1 58,475.0

Total current assets 1,656.3 33,821.0 32,586.0

Cash and cash equivalents 969.2 19,791.7 19,242.4

Total accounts receivable 228.0 4,655.5 4,366.7

Inventories 404.7 8,264.9 7,701.0

Other current assets 54.3 1,108.8 1,275.9

Total non current assets 1,276.0 26,056.1 25,889.0

Net property, plant and equipment 979.0 19,991.8 19,733.8

Other non current Assets 297.0 6,064.3 6,155.2

TOTAL LIABILITIES $ 666.6 13,612.9 14,548.2

Total current liabilities 355.5 7,259.3 8,179.8

Notes payable to banks 54.8 1,119.0 1,251.7

Accounts payable 206.5 4,217.4 5,834.0

Other taxes payable and other accruals 94.2 1,922.9 1,094.1

Total long-term liabilities 311.1 6,353.6 6,368.4

Long-term debt 71.7 1,464.7 1,460.4

Other non current liabilities 48.7 993.8 1,033.0

Deferred income taxes 190.7 3,895.1 3,875.0

TOTAL STOCKHOLDERS' EQUITY $ 2,265.6 46,264.3 43,926.8

Capital stock 57.5 1,174.2 1,174.3

Commission in shares issued 20.2 413.3 413.4

Retained earnings 2,104.1 42,965.2 40,874.4

Others accounts 55.3 1,129.5 855.5

Non controlling interest 28.5 582.1 609.2

TOTAL LIABILITIES AND STOCKHOLDERS' $ 2,932.3 59,877.1 58,475.0EQUITY *AuditedCONSOLIDATED STATEMENT OF INCOMEFirst Quarter Results, ended March 31st:-Unaudited-U.S. DollarIn millions pesos2021

2021

2020

Net sales$

948.0

19,357.6

15,738.4

Cost of sales741.4

15,139.6

13,557.3

Gross profit206.6

4,218.0

2,181.1

SG&A80.2

1,637.3

1,572.7

Other income (expenses), net(1.1

)

(21.8

)

(4.5

)

Operating income125.3

2,559.0

604.0

Net finance income15.7

319.6

2,426.5

Income tax39.4

803.9

860.3

Net Income$

101.6

2,074.6

2,170.2

Non-controlling interest(1.3

)

(25.8

)

3.5

Net controlling interest profit102.9

2,100.4

2,166.6

Basic and diluted earnings per share0.17

3.50

3.61

Basic and diluted earnings per ADR2.06

42.02

43.34

Weighted average Shares outstanding1599,835

599,835

599,843

EBITDA Result$

142.7

2,913.4

947.3

Gross margin21.8

%

21.8

%

13.9

%

Operating margin13.2

%

13.2

%

3.8

%

Net margin10.9

%

10.7

%

13.8

%

EBITDA margin15.1

%

15.1

%

6.0

%

1 In thousandsCONSOLIDATED STATEMENT OF INCOMEFirst Quarter Results, ended March 31st:-Unaudited- U.S. DollarIn millions pesos 2021 2021 2020

Net sales $ 948.0 19,357.6 15,738.4

Cost of sales 741.4 15,139.6 13,557.3

Gross profit 206.6 4,218.0 2,181.1

SG&A 80.2 1,637.3 1,572.7

Other income (expenses), net (1.1 ) (21.8 ) (4.5 )

Operating income 125.3 2,559.0 604.0

Net finance income 15.7 319.6 2,426.5

Income tax 39.4 803.9 860.3

Net Income $ 101.6 2,074.6 2,170.2

Non-controlling interest (1.3 ) (25.8 ) 3.5

Net controlling interest profit 102.9 2,100.4 2,166.6

Basic and diluted earnings per share 0.17 3.50 3.61

Basic and diluted earnings per ADR 2.06 42.02 43.34

Weighted average Shares outstanding^1 599,835 599,835 599,843

EBITDA Result $ 142.7 2,913.4 947.3

Gross margin 21.8 % 21.8 % 13.9 %

Operating margin 13.2 % 13.2 % 3.8 %

Net margin 10.9 % 10.7 % 13.8 %

EBITDA margin 15.1 % 15.1 % 6.0 %

^1 In thousandsCONSOLIDATED STATEMENT OF CASH FLOWSIn million of pesos-Unaudited-U.S. DollarMarch 31,2021

2021

2020

NET MAJORITY INCOME BEFORE INCOME TAX$

141.0

2,878.5

3,030.5

ITEMS RELATING TO INVESTING ACTIVITIES:21.1

431.8

336.5

Depreciation and others23.3

476.6

433.3

Income (loss) on sale of plant and equipment0.5

11.1

14.1

Other Items(2.7

)

(55.9

)

(110.9

)

NET CASH GENERATED FROM NET INCOME BEFORE TAXES162.1

3,310.3

3,367.0

CASH GENERATED OR USED IN THE OPERATION:(116.4

)

(2,376.9

)

(875.3

)

Decrease (increase) in accounts receivable(6.8

)

(139.3

)

(564.8

)

Decrease (increase) in inventories2.7

54.9

(899.0

)

Increase (decrease) in accounts payable(2.8

)

(56.9

)

1,393.4

Other Items(109.5

)

(2,235.7

)

(805.0

)

NET CASH FLOW FROM OPERATING ACTIVITIES45.7

933.4

2,491.7

NET CASH FLOW FROM INVESTING ACTIVITIES(14.6

)

(298.2

)

(216.9

)

Acquisition of property, plant and equipment(27.2

)

(555.6

)

(292.7

)

Proceeds from sales of property plant and equipment0.1

1.8

5.6

Other Items12.5

255.7

70.2

CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE USED IN FINANCING ACTIVITIES31.1

635.2

2,274.9

Net cash provided by financing activities:(4.2

)

(85.9

)

(605.8

)

Proceeds from loans42.5

867.2

2,459.7

Principal payments on loans(41.3

)

(844.2

)

(3,415.5

)

Other items(5.3

)

(108.8

)

350.0

Net increase (decrease) in cash and equivalents26.9

549.3

1,669.1

Cash and investments at the beginning of year$

942.3

19,242.4

19,164.8

CASH AND INVESTMENTS AT END OF PERIOD$

969.2

19,791.7

20,833.9

DERIVATIVES POSITION REPORT

CONSOLIDATED STATEMENT OF CASH FLOWSIn million of pesos-Unaudited- U.S. March 31, Dollar 2021 2021 2020

NET MAJORITY INCOME BEFORE INCOME TAX $ 141.0 2,878.5 3,030.5

ITEMS RELATING TO INVESTING ACTIVITIES: 21.1 431.8 336.5

Depreciation and others 23.3 476.6 433.3

Income (loss) on sale of plant and equipment 0.5 11.1 14.1

Other Items (2.7 ) (55.9 ) (110.9 )

NET CASH GENERATED FROM NET INCOME BEFORE 162.1 3,310.3 3,367.0 TAXESCASH GENERATED OR USED IN THE OPERATION: (116.4 ) (2,376.9 ) (875.3 )

Decrease (increase) in accounts receivable (6.8 ) (139.3 ) (564.8 )

Decrease (increase) in inventories 2.7 54.9 (899.0 )

Increase (decrease) in accounts payable (2.8 ) (56.9 ) 1,393.4

Other Items (109.5 ) (2,235.7 ) (805.0 )

NET CASH FLOW FROM OPERATING ACTIVITIES 45.7 933.4 2,491.7

NET CASH FLOW FROM INVESTING ACTIVITIES (14.6 ) (298.2 ) (216.9 )

Acquisition of property, plant and equipment (27.2 ) (555.6 ) (292.7 )

Proceeds from sales of property plant and 0.1 1.8 5.6 equipmentOther Items 12.5 255.7 70.2

CASH FLOW SURPLUS (REQUIREMENTS OF) TO BE 31.1 635.2 2,274.9 USED IN FINANCING ACTIVITIES Net cash provided by financing activities: (4.2 ) (85.9 ) (605.8 )

Proceeds from loans 42.5 867.2 2,459.7

Principal payments on loans (41.3 ) (844.2 ) (3,415.5 )

Other items (5.3 ) (108.8 ) 350.0

Net increase (decrease) in cash and 26.9 549.3 1,669.1 equivalents Cash and investments at the beginning of $ 942.3 19,242.4 19,164.8 yearCASH AND INVESTMENTS AT END OF PERIOD $ 969.2 19,791.7 20,833.9

DERIVATIVES POSITION REPORT

First Quarter 2021Thousands of Mexican Pesos, as ofMarch 31, 2021TYPE OF VALUE OF THE RELATED COMMODITY REASONABLE VALUE AMOUNTSFINANCIAL OBJECTIVE NOTIONAL DUE BY GUARANTIESINSTRUMENT 1Q-2021 4Q-2020 1Q-2021 4Q-2020 YEAR REQUIRED

Forward 99% inVanilla, Hedge $ 378,061 $ 20.42 $ 19.95 $ -231,713 $ -449,417 2021;KO Fwd and 1% 2022options CORN CORN In USD per In USD per Bushel Bushel month price month price May-21 $ 5.643

Jul-21 $ 5.475 Mar-21 $ 4.840

Sep-21 $ 4.960

Dec-21 $ 4.775

Oct-21 $ 399.6

Futures for corn SOYBEAN MEAL SOYBEAN MEALand Hedge $ 264,981 In USD per ton In USD per ton $ 12,899 $ 14,342 100% insoybean month price month price 2021meal May-21 $ 423.2 Aug-21 $ 406.9

Jul-21 $ 424.8 Sep-21 $ 302.6

Aug-21 $ 419.6 Oct-21 $ 366.4

Sep-21 $ 410.7 Dec-21 $ 365.3

Oct-21 $ 399.6 The deals consider Dec-21 $ 397.5 Mar-21 $ 429.4 the possibility May-21 $ 423.4 of margin calls but Jul-21 $ 419.5 not another kind of guarantee CORN CORN In USD per In USD per Bushel Bushel month price month price May-21 $ 5.643 99% inOptions of Hedge $ 545,125 Jul-21 $ 5.475 Mar-21 $ 4.840 $ 33,523 $ 14,055 2021Corn and 1% Sep-21 $ 4.960 May-21 $ 4.833 in 2022

Dec-21 $ 4.775 Jul-21 $ 4.803

Mar-22 $ 4.194

SOYBEAN MEAL SOYBEAN MEAL In USD per ton In USD per ton month price month price May-21 $ 423.2

Jul-21 $ 424.8

Aug-21 $ 419.6 91% inOptions of $ 634,109 $ 36,364 $ 21,970 2021soybean Hedge Sep-21 $ 410.7 and 9%meal in 2022 Oct-21 $ 399.6 Jan-21 $ 434.4

Dec-21 $ 397.5 Mar-21 $ 429.4

Jan-22 $ 394.2 May-21 $ 423.4

Mar-22 $ 383.9 Jul-21 $ 419.5

-The total financial instruments do not exceed 5% oftotal assets as of March 31, 2021.-The notional value represents the net position as of March 31, 2021 at theexchange rate of Ps.20.42 per one dollar.-A negative value means an unfavorable effectfor the Company.First Quarter 2021Thousands of Mexican Pesos, as of March 31, 2021PROBABLE SCENARIO

TYPE OF FINANCIAL INSTRUMENTREASONABLE VALUEVALUE OF THE RELATED COMMODITYEFFECT ON THEINCOME STATEMENTEFFECT ON THE CASH FLOW(3)Reference Value (1)-2.5%

2.5%

5.0%

-2.5%

2.5%

5.0%

Forward Vanilla, KO Fwd and options-$ 231,713

$ 19.91

$ 20.93

$ 21.44

Direct-$ 394,065

-$ 69,325

$ 119,506

-5%

5%

10%

-5%

5%

10%

Futures of Corn: (2)$ 12,899

$ 5.360

$ 5.925

$ 6.207

The effect willmaterialize as theinventory is consumed-$ 350

$ 26,148

$ 39,397

Futures of Soybean Meal: (2)$ 402.0

$ 444.4

$ 465.5

Options for Corn$ 33,523

$ 5.360

$ 5.925

$ 6.207

$ 6,524

$ 60,523

$ 87,522

Options of Soybean Meal$ 36,364

$ 402.0

$ 444.4

$ 465.5

$ 5,161

$ 66,773

$ 97,182

(1) The reference value is the exchange rate of Ps. $20.42 per USD as of March 31, 2021.(2) The reference values are; the future of corn for May 2021, $5.6425 USD/bushel and the future of soybeanmeal for May 2021, $423.20USD/ton.'All the evaluations are performed according with the corresponding future, here only the first month futures are shown.(3) The Company has credit lines with the majority of its counterparts, so that the effect in cash flow is lower than the amount shown.-A negative value means an unfavorable effect for the Company.First Quarter 2021Thousands of Mexican Pesos, as of March 31, PROBABLE SCENARIO2021 VALUE OF THETYPE OF RELATED COMMODITY EFFECT ON ^EFFECT ON THE CASHFINANCIAL REASONABLE Reference Value THE FLOW(3)INSTRUMENT VALUE (1) INCOME -2.5% 2.5% 5.0% STATEMENT -2.5% 2.5% 5.0%

Forward -$ 231,713 $ $ $ -$ -$ $Vanilla, KO Fwd 19.91 20.93 21.44 Direct 394,065 69,325 119,506and options -5% 5% 10% -5% 5% 10%

Futures of $ $ $Corn: (2) 5.360 5.925 6.207 $ $ $ 12,899 -$ 350 26,148 39,397Futures of $ $ $ The effectSoybean Meal: 402.0 444.4 465.5 will(2) materializeOptions for $ 33,523 $ $ $ as the $ 6,524 $ $Corn 5.360 5.925 6.207 inventory 60,523 87,522 is consumedOptions of $ 36,364 $ $ $ $ 5,161 $ $Soybean Meal 402.0 444.4 465.5 66,773 97,182

(1) The reference value is the exchange rate of Ps.$20.42 per USD as of March 31, 2021.(2) The reference values are; the future of corn for May 2021, $5.6425 USD/bushel and the future of soybeanmeal for May 2021, $423.20USD/ton.'All the evaluations are performed according with the corresponding future,here only the first month futures are shown.(3) The Company has credit lines with the majority of its counterparts, so thatthe effect in cash flow is lower than the amount shown.-A negative value means an unfavorable effect for the Company.First Quarter 2021Thousands of Mexican Pesos, as of March 31, 2021STRESS SCENARIO

TYPE OF FINANCIALINSTRUMENTREASONABLEVALUEVALUE OF THE RELATED COMMODITYEFFECT ON THEINCOMESTATEMENTEFFECT ON THE CASH FLOWReference Value-50%

-25%

25%

50%

-50%

-25%

25%

50%

Forward Vanilla, KO Fwd and options-$231,713$10.21

$15.32

$25.53

$30.63

Direct-$3,479,097-$1,855,396$1,376,441

$3,007,800

CONFERENCE CALL INFORMATION

The Company will host its first quarter 2021 earnings call, on Friday, April 30th, 2021. The earnings call will take place at 11:00 am Central Time (12:00 pm ET).

To participate in the earnings call, please dial:

Toll free in the U.S.: 1 (888) 771-4371 Toll free in Mexico: 001 866 779 0965 Toll Local Mexico: 52 55 6722 5257 Toll in the Brazil: 0800 761 0710

A current list of available local and international free phone telephone numbers: http://web.meetme.net/r.aspx?p=12&a=UDnqvRcOZDNBup

Confirmation Number: 50123677

COMPANY DESCRIPTION

Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest poultry producers globally. The Company was founded in 1952, and became a public company in 1997, via a public offering of shares on the Mexican and The New York Stock Exchange. Bachoco is a vertically integrated company headquartered in Celaya, Guanajuato located in Central Mexico. Its main business lines are: chicken, eggs, balanced feed, swine, and turkey and beef value-added products. Bachoco owns and manages more than a thousand facilities, organized in nine production complexes and 80 distribution centers in Mexico, and a production complex in the United States. Currently the Company employs more than 29,000 people.

The Company is rated AAA (MEX), the highest rating awarded by Fitch Mexico, S.A. de C.V., and HR AAA which signals that the Company and the offering both have the highest credit quality by HR Ratings de Mexico S.A. de C.V.

DISCLAIMER

The document contains certain information that could be considered forward looking statements concerning anticipated future events and performance of the Company. The 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 Information Form, which could cause our actual results to differ materially from the forward-looking statements contained in this document. Those risks and uncertainties include risks associated with ownership in the poultry industry, competition for investments within the poultry industry, shareholder liability, governmental regulation, and environmental matters. As a result, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Industrias Bachoco, S.A.B. de C.V., undertakes no obligation to publicly update or revise any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210429005410/en/

CONTACT: IR contact information: Maria Guadalupe Jaquez maria.jaquez@bachoco.net Andrea Guerrero andrea.guerrero@bachoco.net T. +52(461)618 3555