Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document and Entity Information | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2020 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Industrias Bachoco S.A.B. de C.V. |
Entity Central Index Key | 0001044896 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Trading Symbol | IBA |
Title of 12(b) Security | American Depositary Shares, each representing twelveSeries B Shares |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 600,000,000 |
ICFR Auditor Attestation Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | |||
Cash and cash equivalents | $ 17,286,374 | $ 18,662,765 | $ 17,901,845 |
Investment in securities at fair value through profit or loss | 1,018,322 | 186,284 | 550,068 |
Investment in securities at fair value through other comprehensive income | 937,715 | 315,761 | 0 |
Derivative financial instruments | 18,098 | 6,570 | |
Accounts receivable, net | 4,366,019 | 3,867,110 | 3,486,354 |
Due from related parties | 686 | 13,674 | 99 |
Inventories | 5,688,338 | 4,710,207 | 4,575,596 |
Current biological assets | 2,012,668 | 2,043,237 | 2,073,526 |
Prepaid expenses and other current assets | 1,221,255 | 1,227,196 | 1,131,870 |
Assets held for sale | 54,630 | 52,916 | 49,068 |
Total currents assets | 32,586,007 | 31,097,248 | 29,774,996 |
Non-current assets: | |||
Property, plant and equipment, net | 19,733,822 | 18,556,646 | 18,018,176 |
Right-of-use assets | 678,845 | 822,732 | 0 |
Non-current biological assets | 1,991,530 | 1,818,911 | 1,721,728 |
Deferred income tax | 261,934 | 245,272 | 103,826 |
Goodwill | 1,650,716 | 1,578,994 | 1,631,771 |
Intangible assets | 753,224 | 772,640 | 949,355 |
Other non-current assets | 818,922 | 810,048 | 665,742 |
Total non-currents assets | 25,888,993 | 24,605,243 | 23,090,598 |
Total assets | 58,475,000 | 55,702,491 | 52,865,594 |
Current liabilities: | |||
Short-term debt | 848,061 | 3,440,399 | 3,427,820 |
Current portion of long-term debt | 209,499 | 0 | 64,973 |
Derivative financial instruments | 194,181 | 0 | 0 |
Trade payable and other accounts payable | 5,753,137 | 5,158,827 | 5,196,347 |
Lease liabilities | 278,981 | 149,538 | 0 |
Income tax payable | 815,082 | 82,665 | 248,290 |
Due to related parties | 80,842 | 76,704 | 147,514 |
Total current liabilities | 8,179,783 | 8,908,133 | 9,084,944 |
Long term liabilities: | |||
Long-term debt, excluding current installments | 1,460,405 | 1,488,208 | 1,544,807 |
Lease liabilities | 440,730 | 653,512 | 0 |
Deferred income tax | 3,874,980 | 3,904,493 | 3,767,320 |
Employee benefits | 592,294 | 487,810 | 302,818 |
Total long term liabilities | 6,368,409 | 6,534,023 | 5,614,945 |
Total liabilities | 14,548,192 | 15,442,156 | 14,699,889 |
Equity: | |||
Capital stock | 1,174,432 | 1,174,432 | 1,174,432 |
Share premium | 413,423 | 414,516 | 414,470 |
Reserve for repurchase of shares | 1,266,469 | 1,308,367 | 562,047 |
Retained earnings | 39,607,821 | 36,424,411 | 34,792,320 |
Effects of derivatives classified as hedging instruments | (267,352) | (19,771) | (307) |
Foreign currency translation reserve | 1,391,534 | 1,073,925 | 1,273,671 |
Actuarial remeasurements, net | (268,692) | (195,905) | (120,378) |
Equity attributable to controlling interest | 43,317,635 | 40,179,975 | 38,096,255 |
Non-controlling interest | 609,173 | 80,360 | 69,450 |
Total equity | 43,926,808 | 40,260,335 | 38,165,705 |
Commitments | |||
Contingencies | |||
Susequent events | 0 | 0 | |
Total liabilities and equity | $ 58,475,000 | $ 55,702,491 | $ 52,865,594 |
Consolidated Statements of Prof
Consolidated Statements of Profit and Loss and Other Comprehensive Income - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statements of Profit and Loss and Other Comprehensive Income | |||
Net revenues | $ 68,792,002 | $ 61,655,245 | $ 61,052,092 |
Cost of sales | (57,707,566) | (51,557,351) | (51,422,376) |
Gross profit | 11,084,436 | 10,097,894 | 9,629,716 |
General, selling and administrative expenses | (6,420,397) | (6,116,620) | (6,024,406) |
Other (expenses) income, net | (362,527) | (4,734) | 102,660 |
Operating income | 4,301,512 | 3,976,540 | 3,707,970 |
Finance income | 1,173,520 | 991,632 | 1,140,749 |
Finance costs | (291,329) | (610,368) | (332,168) |
Net finance income | 882,191 | 381,264 | 808,581 |
Profit before income taxes | 5,183,703 | 4,357,804 | 4,516,551 |
Income taxes | 1,211,611 | 1,124,978 | 1,154,978 |
Profit for the year | 3,972,092 | 3,232,826 | 3,361,573 |
Items that may be reclassified subsequently to profit or loss: | |||
Currency translation effect | 317,609 | (199,746) | 5,650 |
Net effects of derivatives classified as hedging instruments | (247,581) | (19,464) | (307) |
Items that will not be reclassified subsequently to profit or loss: | |||
Actuarial remeasurements | (103,982) | (107,897) | (30,629) |
Income taxes related to actuarial remeasurements | 31,195 | 32,370 | 9,189 |
Other comprehensive income | (2,759) | (294,737) | (16,097) |
Comprehensive income for the year | 3,969,333 | 2,938,089 | 3,345,476 |
Profit attributable to: | |||
Controlling interest | 3,935,672 | 3,219,931 | 3,349,967 |
Non-controlling interest | 36,420 | 12,895 | 11,606 |
Profit for the year | 3,972,092 | 3,232,826 | 3,361,573 |
Comprehensive income attributable to: | |||
Controlling interest | 3,932,913 | 2,925,194 | 3,333,870 |
Non-controlling interest | 36,420 | 12,895 | 11,606 |
Comprehensive income for the year | $ 3,969,333 | $ 2,938,089 | $ 3,345,476 |
Weighted average outstanding shares | 599,818,022 | 599,971,832 | 599,980,734 |
Basic and diluted earnings per share | $ 6.56 | $ 5.37 | $ 5.58 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - MXN ($) $ in Thousands | Capital stock [member] | Share premium [member] | Reserve for repurchase of shares [member] | Retained earnings [member] | Effects of derivatives classified as hedging instruments [member] | Foreign currency translation reserve [member] | Actuarial remeasurements net [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] | Total |
Balance at Dec. 31, 2017 | $ 1,174,432 | $ 414,385 | $ 493,141 | $ 32,367,912 | $ 0 | $ 1,268,021 | $ (98,938) | $ 35,618,953 | $ 58,975 | $ 35,677,928 |
Dividends paid | 0 | 0 | 0 | (852,000) | 0 | 0 | 0 | (852,000) | 0 | (852,000) |
Dividends paid to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,131) | (1,131) |
Reserve for repurchase of shares | 0 | 0 | 73,559 | (73,559) | 0 | 0 | 0 | 0 | 0 | 0 |
Repurchase and sale of shares | 0 | 85 | (4,653) | 0 | 0 | 0 | 0 | (4,568) | 0 | (4,568) |
Comprehensive income for the year: | ||||||||||
Profit for the year | 0 | 0 | 0 | 3,349,967 | 0 | 0 | 0 | 3,349,967 | 11,606 | 3,361,573 |
Other comprehensive income | 0 | 0 | 0 | 0 | (307) | 5,650 | (21,440) | (16,097) | 0 | (16,097) |
Total comprehensive income for the year | 0 | 0 | 0 | 3,349,967 | (307) | 5,650 | (21,440) | 3,333,870 | 11,606 | 3,345,476 |
Balance at Dec. 31, 2018 | 1,174,432 | 414,470 | 562,047 | 34,792,320 | (307) | 1,273,671 | (120,378) | 38,096,255 | 69,450 | 38,165,705 |
Dividends paid | 0 | 0 | 0 | (840,000) | 0 | 0 | 0 | (840,000) | 0 | (840,000) |
Dividends paid to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,985) | (1,985) |
Reserve for repurchase of shares | 0 | 0 | 747,840 | (747,840) | 0 | 0 | 0 | 0 | 0 | 0 |
Repurchase and sale of shares | 0 | 46 | (1,520) | 0 | 0 | 0 | 0 | (1,474) | 0 | (1,474) |
Comprehensive income for the year: | ||||||||||
Profit for the year | 0 | 0 | 0 | 3,219,931 | 0 | 0 | 0 | 3,219,931 | 12,895 | 3,232,826 |
Other comprehensive income | 0 | 0 | 0 | 0 | (19,464) | (199,746) | (75,527) | (294,737) | 0 | (294,737) |
Total comprehensive income for the year | 0 | 0 | 0 | 3,219,931 | (19,464) | (199,746) | (75,527) | 2,925,194 | 12,895 | 2,938,089 |
Balance at Dec. 31, 2019 | 1,174,432 | 414,516 | 1,308,367 | 36,424,411 | (19,771) | 1,073,925 | (195,905) | 40,179,975 | 80,360 | 40,260,335 |
Dividends paid | 0 | 0 | 0 | (791,744) | 0 | 0 | 0 | (791,744) | 0 | (791,744) |
Dividends paid to non-controlling interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,879) | (1,879) |
Reserve for repurchase of shares | 0 | 0 | (39,482) | 39,482 | 0 | 0 | 0 | 0 | 0 | 0 |
Repurchase and sale of shares | 0 | (1,093) | (2,416) | 0 | 0 | 0 | 0 | (3,509) | 0 | (3,509) |
Increase in non-controlling interest in acquired business | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 494,272 | 494,272 |
Comprehensive income for the year: | ||||||||||
Profit for the year | 0 | 0 | 0 | 3,935,672 | 0 | 0 | 0 | 3,935,672 | 36,420 | 3,972,092 |
Other comprehensive income | 0 | 0 | 0 | 0 | (247,581) | 317,609 | (72,787) | (2,759) | 0 | (2,759) |
Total comprehensive income for the year | 0 | 0 | 0 | 3,935,672 | (247,581) | 317,609 | (72,787) | 3,932,913 | 36,420 | 3,969,333 |
Balance at Dec. 31, 2020 | $ 1,174,432 | $ 413,423 | $ 1,266,469 | $ 39,607,821 | $ (267,352) | $ 1,391,534 | $ (268,692) | $ 43,317,635 | $ 609,173 | $ 43,926,808 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Profit for the year | $ 3,972,092 | $ 3,232,826 | $ 3,361,573 |
Adjustments for: | |||
Deferred income tax recognized in profit or loss | (109,443) | 60,677 | (91,869) |
Current income tax recognized in profit or loss | 1,321,054 | 1,064,301 | 1,246,847 |
Bargain purchase gain of domestic business acquisition | (90,889) | 0 | 0 |
Depreciation and amortization | 1,735,146 | 1,286,443 | 1,226,917 |
Depreciation of right-of-use assets | 307,757 | 302,804 | |
Intangible impairment loss | 0 | 73,733 | 21,430 |
Loss (gain) on disposal of plant and equipment | 12,987 | (85,937) | 23,227 |
Interest income earned | (705,986) | (991,632) | (1,077,507) |
Interest expense and financial expense | 291,038 | 330,119 | 332,168 |
Unrealized foreign exchange loss on loans | 320,880 | (139,830) | 43,400 |
Subtotal | 7,054,636 | 5,133,504 | 5,086,186 |
Derivative financial instruments | 212,279 | (11,528) | (13,391) |
Accounts receivable, net | (335,742) | (306,588) | 200,145 |
Due from related parties | 12,988 | (13,575) | 227 |
Inventories | (850,655) | (133,572) | 149,738 |
Current and non-current biological assets | (145,670) | (66,582) | (236,179) |
Prepaid expenses and other current assets | 32,866 | (95,201) | (493,442) |
Assets held for sale | (1,714) | (3,848) | 455 |
Trade payable and other accounts payable | 320,821 | (38,542) | 457,941 |
Due to related parties | 4,138 | (70,810) | 92,262 |
Income taxes paid | (590,836) | (1,302,902) | (1,787,959) |
Employee benefits | 104,484 | 184,992 | 49,853 |
Net cash provided by operating activities | 5,817,595 | 3,275,348 | 3,505,836 |
Cash flows from investing activities: | |||
Payments for acquisition of property, plant and equipment | (2,346,415) | (2,199,600) | (1,977,567) |
Proceeds from sale of plant and equipment | 23,802 | 197,059 | 32,455 |
Investment in securities at fair value through profit or loss | (832,038) | 363,784 | 577,773 |
Investment in securities at fair value through other comprehensive income | (621,954) | (315,761) | |
Other assets | (26,569) | 24,244 | (27,983) |
Interest collected | 705,986 | 991,632 | 1,077,507 |
Net cash used in investing activities | (3,097,188) | (938,642) | (317,815) |
Cash flows from financing activities: | |||
Payment for repurchase of shares | (15,594) | (10,729) | (6,454) |
Proceeds from issuance of repurchased shares | 12,085 | 9,255 | 1,887 |
Dividends paid | (791,744) | (840,000) | (852,000) |
Dividends paid to non-controlling interest | (1,879) | (1,985) | (1,131) |
Proceeds from borrowings | 4,030,700 | 4,839,000 | 3,370,400 |
Principal payment on loans | (6,762,222) | (4,808,163) | (3,588,067) |
Interest paid on lease | (53,639) | (37,797) | 0 |
Interest paid | (237,399) | (292,322) | (332,168) |
Payments of lease liabilities | (386,710) | (325,207) | |
Net cash used in by financing activities | (4,206,402) | (1,467,948) | (1,407,533) |
Net (decrease) increase in cash and cash equivalents | (1,485,994) | 868,758 | 1,780,488 |
Cash and cash equivalents at January 1 | 18,662,765 | 17,901,845 | 16,088,210 |
Effect of exchange rate fluctuations on cash and cash equivalents | 109,604 | (107,838) | 33,147 |
Cash and cash equivalents at December 31 | $ 17,286,374 | $ 18,662,765 | $ 17,901,845 |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2020 | |
Reporting entity | |
Reporting entity | (1) Reporting entity Industrias Bachoco, S.A.B. de C.V. and subsidiaries (hereinafter, “Bachoco” or the “Company”) is a publicly traded company and was incorporated on April 17, 1980, as a legal entity. The Company’s registered address is Avenida Tecnológico 401, Ciudad Industrial, Celaya, Guanajuato, Mexico. The Company is engaged in breeding, processing and marketing poultry (chicken and eggs), swine and other products (primarily balanced animal feed). Bachoco is a holding company that has control over a group of subsidiaries (see note 5). The shares of the Company are listed on the Mexican Stock Exchange (BMV for its Spanish acronym) under the ticker symbol “Bachoco,” and in the New York Stock Exchange (“NYSE”), under the ticker symbol “IBA”. |
Basis of preparation
Basis of preparation | 12 Months Ended |
Dec. 31, 2020 | |
Basis of preparation | |
Basis of preparation | (2) Basis of preparation a) Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), issued by the International Accounting Standard Board (“IASB”). On April 20, 2021, the accompanying consolidated financial statements and related notes were authorized for issuance by the Company’s Chief Financial Officer, Mr. Daniel Salazar Ferrer, for review and approval by the Audit Committee, Board of Directors and stockholders. In accordance with Mexican General Corporate Law and the Company’s bylaws, the stockholders are empowered to modify the consolidated financial statements after their issuance should they deem it necessary. b) Basis of measurement The accompanying consolidated financial statements were prepared on the historical cost basis (historical cost is generally based on the fair value of the consideration given in exchange for goods and services), except for the following items in the consolidated statement of financial position, which are measured at fair value: · Derivative financial instruments for trading and hedging, and investment in securities at fair value through profit or loss and investment in securities at fair value through other comprehensive income · Biological assets Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. In addition, for financial reporting purposes, fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurements in its entirety, which are described as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs, other than quoted prices included within Level 1, which are observable either directly or indirectly. Level 3 inputs are unobservable inputs. c) Functional and presentation currency These consolidated financial statements are presented in thousands of Mexican pesos (pesos or $), the official currency of Mexico, which is the currency in which the Company’s accounting records are maintained and functional currency for most of its subsidiaries, except for foreign subsidiaries for which the U.S. dollar is the functional currency as well as the currency in which accounting records are maintained. For disclosure purposes, in the notes to the consolidated financial statements, “thousands of pesos” or “$” means thousands of Mexican pesos, and “thousands of dollars” means thousands of U.S. dollars. When deemed relevant, certain amounts are included between parentheses as a translation into thousands of dollars, into thousands of Mexican pesos, or both, as applicable. These translations are performed for the convenience of the reader at the closing exchange rate issued by Bank of Mexico, which is $19.95, $18.89 and $19.67 pesos to one U.S. dollar as of December 31, 2020, 2019 and 2018, respectively. d) Use of estimates and judgments The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and significant assumptions are reviewed on an ongoing basis. Changes in estimates are recognized in the period in which they occur and in any future periods affected. The following are the critical accounting estimates and assumptions used by management in the application of the Company’s accounting policies, which are significant to the amounts recognized in the consolidated financial statements. Critical accounting judgments i. Fair value of biological assets The Company estimates the fair value of biological assets as the price that would be received or paid in an orderly transaction between market participants at the measurement date. As part of the estimate, the Company considers the maturity periods of such assets, the necessary time span for the biological assets to reach a productive stage, as well as future economic benefits obtained. The balance of current biological assets includes hatching eggs, growing pigs and growing poultry, while the balance of non-current biological assets includes poultry in its different production stages, and breeder pigs. Non-current biological assets are valued at production cost less accumulated depreciation or accumulated impairment losses, as there is no observable or reliable market for such assets. Additionally, the Company believes that there is no reliable method for measuring the fair value of non-current biological assets. Current biological assets are valued at fair value when there is an observable market, less estimated selling expenses. ii. Business combinations or acquisition of assets Management uses its professional judgment to determine whether the acquisition of a group of assets constitutes a business combination or acquisition of assets in accordance with IFRS. This determination may have a significant impact in how the acquired assets and assumed liabilities are accounted for, both on initial recognition and subsequent thereto. iii. Aggregation of operating segments The Company’s chicken and egg operating segments are aggregated to present one reportable segment (Poultry) as they have similar products and services, production processes, classes of customers, methods used for distribution, the nature of the regulatory environment in which they operate, and similar economic characteristics as evidenced by similar five-year trends in average gross profit margins. These factors are evaluated at least annually. iv. Discount rate estimation to calculate the present value of future minimum rent payments The Company estimates the discount rate to be used in determining the lease liability, based on the incremental borrowing rate (“IBR”). The Company uses a two-level model, with which it determines the elements that make up the discount rate: (i) reference rate, and (ii) credit risk component. In such model, Management also considers its policies and practices to obtain financing, distinguishing between borrowings obtained at the corporate level (that is, by the holding company), or at the level of each subsidiary. Finally, for real estate leases, or in which there is significant and observable evidence of their residual value, the Company estimates and evaluates an adjustment for the characteristics of the underlying asset, taking into account the possibility that such asset may be granted as collateral or guarantee against the risk of default. v. Estimate of the term of the lease contracts The Company defines the term of the leases as the period for which there is a contractual payment commitment, considering the non-cancellable period of the contract, as well as the renewal and early termination options that are likely to be exercised. The Company participates in lease agreements that do not have a defined mandatory term, a defined renewal period (if it contains a renewal clause), or annual automatic renewals. Accordingly, to measure the lease liability, the Company estimates the term of the contracts considering their contractual rights and limitations, the business plan, as well as Management's intentions for the use of the underlying asset. Additionally, the Company considers the early termination clauses of its contracts and the probability of exercising them, as part of its estimation of the lease term. Key sources of estimation uncertainty on the application of accounting policies i. Assessments to determine the recoverability of deferred tax assets On an annual basis the Company prepares financial projections to determine if it will generate sufficient taxable income to utilize its deferred tax assets associated with deductible temporary differences, including tax losses and other tax credits. ii. Useful lives and residual values of property, plant and equipment Useful lives and residual values of intangible assets and property, plant and equipment are used to determine amortization and depreciation expense of such assets and are determined with the assistance of internal and external specialists, as deemed necessary. Useful lives and residual values are reviewed periodically at least once a year, based on the current conditions of the assets and the estimate of the period during which they will continue to generate economic benefits to the Company. If there are changes in the related estimate, measurement of the net carrying amount of assets and the corresponding depreciation expense are affected prospectively. iii. Measurements and disclosures at fair value Fair value is a measurement based on the price a market participant would be willing to receive to sell an asset or pay to transfer a liability, and is not a measure specific to the Company. For some assets and liabilities, observable market transactions or market information may be available. For other assets and liabilities, observable market transactions and market information may not be available. However, the purpose of a measurement at fair value in both cases is to estimate the price at which an orderly transaction to sell the asset or to transfer the liabilities would be carried out among the market participants at the date of measurement under current market conditions. When the price of an identical asset or liability is not observable, the Company determines the fair value using another valuation technique which maximizes the use of relevant observable information and minimizes the use of unobservable information. As the fair value is a measurement based on the market, it is measured using the assumptions that market participants would use when they assign a price to an asset or liability, including assumptions about risk. iv. Impairment of long-lived assets and goodwill The carrying amount of long-lived assets is reviewed for impairment when situations or changes in circumstances indicate that it is not recoverable, except for goodwill which is reviewed on an annual basis. If there are indicators of impairment, a review is carried out to determine whether the carrying amount exceeds its recoverable value and whether it is impaired. The recoverable value is the highest of the asset’s fair value, less selling costs, and its value in use which is the present value of the future estimated cash flows generated by the asset. The value in use calculation requires the Company’s management to estimate the future cash flows expected to arise from the asset and/or from the cash-generating unit and an appropriate discount rate in order to calculate present value. v. Employee retirement benefits The Company uses assumptions to determine the best estimate for its employee retirement benefits. Assumptions and estimates are established in conjunction with independent actuaries. These assumptions include: demographic hypotheses, discount rates and expected increases in remunerations and future employee service periods, among others. Although the assumptions are deemed appropriate, a change in such assumptions could affect the value of the employee benefit liability and the results of the period in which it occurs. vi. Expected credit losses on accounts receivable The expected credit losses on financial assets are estimated using a provision matrix based on the Company's historical experience of credit losses, adjusted for factors that are specific to each of the Company's customer and debtor groups, general economic conditions and an assessment of both current and forecast conditions at each reporting date. vii. Contingencies A contingent liability is defined as: · A possible obligation that arises from past events and whose existence can only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company, or · A present obligation that arises from past events but is not recognized because: a. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or b. the amount of the obligation cannot be measured with sufficient reliability. The assessment of such contingencies requires the exercise of significant judgments and estimates on the possible outcome of those future events. The Company assesses the probability of loss arising from lawsuits and other contingencies with the assistance of its legal advisors. These estimates are reconsidered periodically at each reporting period. viii. Uncertainties Pandemics or disease outbreaks, such as the novel coronavirus (“COVID-19”), may alter consumption and trade patterns, supply chains, and production processes, which could affect the Company’s business and results of operations. e) COVID In March 2020, the World Health Organization declared the COVID-19 a Global pandemic. As a result, measures established by the federal, state and local authorities in Mexico and the United, that required the forced closure of certain activities considered non-essential (businesses, non-essential government agencies, educational sector, among others) which negatively affected the operations of some of the Company's customers. During 2020, Management performed an analysis to measure the financial impact on the Company derived from the possible effects of COVID 19, which included the following: " Review of potential impairment of non-financial assets (including goodwill) - Based on medium and long-term projections, a possible impairment in goodwill and intangible assets has not been identified. " Inventory valuation - The Company has not had a deterioration in the price of chicken and eggs. Due to the mobility restriction and in some cases of the forced closure in certain activities considered as non-essential, the Company had a negative impact in the demand from restaurant and hotel customers, mainly in the area of the Yucatan Peninsula of Mexico, which resulted in a change in the sales channels to home deliveries and sales by e-commerce platforms. This effect was offset by an increase in customer demand in self-service chains that has continued to date. As it relates to the acquisition of raw materials, even when there was volatility in the dollar exchange rate, the prices of the Company’s main raw materials such as corn and soybean paste were not affected in terms of cost and supply. For other raw materials, although a lack of supply presented itself in certain cases, it did not significantly affect the Company's production activities. " Provision for expected losses - The estimate for expected credit losses was reviewed and based on this analysis, Management considered that the allowance for doubtful accounts is sufficient to support an increase in credit risk for certain clients. During certain months of the year 2020, the level of the accounts receivable portfolio increased based on agreed terms and continues to be recovered considering the payment plans. " Measurement at fair value - investments recognized at fair value consider all relevant market factors for their proper valuation. " Breaches of agreements – The Company has fulfilled its commitments to suppliers and customers due to the fact that, as an essential sector, it has maintained its operations working normally, complying with the health protocols established by the competent authorities and due to its solid financial position. " Going concern - The Company qualified as an essential activity in the markets it operates in and continues to operate normally with full operations in its farms, plants, distribution centers, logistics, supply chain and offices, despite partially working remotely in some of its corporate locations. Management has also implemented strict additional measures to guarantee the well-being of clients, suppliers and workers, as well as the quality and safety of its products, working in coordination with the health authorities and attending to all the recommendations issued by them. " Labor relations have not been affected and no changes were made to contractual agreements with employees as the Company continues to operate normally. " Liquidity risk management - The Company has sufficient liquidity to continue assuming its current and long-term commitments. " Insurance recoveries related to business interruptions - The Company has insurance policies to cover business continuity, however, it is not expected that they will be used because it will continue to operate normally as it is considered to be an essential activity. " Income tax considerations - So far, no adverse tax impact is anticipated as a result of the pandemic. During 2020, the approximate amount of expenses incurred as non-recurring derived from the COVID-19 pandemic was $339,000. As the products that the Company manufactures and its industry is considered essential, there were no significant adverse effects on its consolidated position and financial performance resulting from COVID-19. As the date of issuance of the consolidated financial statements, the Company does not consider that it should substantially modify its budgets and / or financial projections or recognize significant losses in the valuation of its monetary and non-monetary assets. However, there is no guarantee that in the future the financial situation could be affected if the negative effects of the disruption to the national and global economy are significantly altered. f) Issuance of new IFRS i. New and amended IFRS that affect reported balances and/or disclosures in financial statements In the current year, the Company adopted a series of new and amended IFRS issued by the IASB which went into effect on January 1, 2020 as it relates to its consolidated financial statements. Initial impact of the application of the of Interest Rate Benchmark Reform (Amendment to IFRS 9, IAS 39, and IFRS 7). In September 2019, the IASB issued the document amendments to IFRS 9, IAS 39 and IFRS 7. These amendments modify specific requirements of hedge accounting, to allow hedge accounting to continue for the affected hedges during the period of uncertainty before the coverage of items or instruments affected by the current interest rate benchmark is modified as a result of the ongoing interest rate benchmark reforms. These modifications affect for the Company since it applies hedge accounting to its exposure to interest rate benchmark. The impacts of the modifications applied to the Company's accounting are as follows: · The Company has a variable rate of debt, indexed to IBOR, which hedges cash flows using interest rate swaps. · The Company will retain the accumulated gains or losses by reserving the hedge of cash flows designated to cash flows that are subject to the Interest Rate Benchmark Reform, even if there is some uncertainty about the Interest Rate Benchmark Reform regarding the time and quantity of the cash flow hedged items. The Company should consider that future cash flow hedges are not expected to occur due to reasons other than those of the Interest Rate Benchmark Reform, accumulated gains or losses will be immediately reclassified to results. Its adoption has not had any material impact on the disclosures or the amounts reported in these consolidated financial statements. Initial impact of concessions applied to Income under IFRS 16 due to issues related to COVID-19 In May 2020, the IASB issued the amendment to IFRS 16, COVID-19 Related Rent Concessions that provides practical resources for tenant rental concessions that occurred as a direct consequence of COVID-19, thus introducing a practical expedient. for IFRS 16. The practical expedient allows a tenant the choice to assess whether a COVID-19 related rental concession is a lease modification. The lessee making this choice must account for any change in rent payments resulting from the COVID-19 rental concession applying IFRS 16 as if the change were not a modification to the lease. The practical expedient applies only to rental concessions that occur as a direct consequence related to COVID-19 and only if the following conditions are met: · The change in lease payments results in a consideration that is substantially the same as, or less than, the lease consideration immediately prior to the change. · Any reduction in lease payments only affects payments due on or before June 30, 2021 (a rental concession meets this condition if it results in a reduction in payments before June 30, 2021 or increases payments of lease after June 30, 2021); and · There is no substantive change in any other clause or condition of the lease. The Company has not had any material impact for these amendments to IFRS 16 because it did not have any applicable rental concessions. Amendments to the Reference to the Conceptual Framework in IFRS The Company has adopted the amendments included in Amendments to the Reference to the Conceptual Framework in IFRS for the first time this year. The amendments include derivative amendments to the affected standards that now refer to the new Conceptual Framework . Not all amendments, however, update such pronouncements with respect to Conceptual Framework references and phrases that refer to the revised Conceptual Framework . Some pronouncements are only updated to indicate which version of the Conceptual Framework they refer to (the IASC Conceptual Framework adopted by the IASB in 2001, the IASB Conceptual Framework of 2010, or the new and revised Conceptual Framework of 2018) or to indicate the definitions of the standards that have not been updated with the new definitions developed in the revised Conceptual Framework . The standards that have had modifications are IFRS 2, IFRS 3, IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC 22, and SIC-32. The adoption of these amendments had no impact on the Company's consolidated financial statements. Amendments to IFRS 3 Definition of a business The amendments clarify that, while businesses usually have outputs, outputs are not required for a series of integrated activities and assets to qualify as a business. To be considered a business, a series of activities and acquired assets must include, as a minimum, an input and a substantial process that together contribute significantly to the ability to generate outputs. Additional guidance is provided to help determine if a substantial process has been acquired. The amendments introduce an optional test to identify fair value concentration, which allows a simplified assessment of whether a series of activities and assets acquired is not a business if substantially all of the fair value of gross assets acquired is concentrated in a unique identifiable asset, or a group of similar assets. The amendments apply prospectively to all business combinations and asset acquisitions whose acquisition date is on or after the first reporting period beginning on or after January 1, 2020, with early adoption permitted. Its adoption has not had any material impact on the disclosures, or the amounts reported in these consolidated financial statements. Amendments to IAS 1 and IAS 8 Definition of materiality The amendments are intended to simplify the definition of materiality in IAS 1, making it easier to understand and are not intended to alter the underlying concept of materiality in IFRS Standards. The concept of obscuring material information with immaterial information has been included in the new definition. The limit for influential materiality for users has been changed from "could influence" to "could reasonably be expected to influence". The definition of materiality in IAS 8 has been replaced by a reference to the definition of materiality in IAS 1. In addition, the IASB amended other standards and the Conceptual Framework that contained a definition of materiality or reference to the term materiality to ensure consistency. The amendment will be applied prospectively for reporting periods beginning on or after January 1, 2020, with early application permitted. The adoption of these improvements had no impact on the Company's consolidated financial statements. ii. New IFRS issued but not yet effective As of the date of these financial statements, the Company has not applied the following new and revised IFRS that have been issued but are not yet effective. IAS 39, IFRS 7, IFRS 4 and IFRS 16 Phase 2 of the Interest Rate Benchmark Reform (IBOR) IFRS 17 Insurance Contracts IFRS 10 and IAS 28 (amendments) Sale or contribution of assets between an investor and its associate or joint venture Amendments to IAS 1 Classification of liabilities as current or non-current. Amendments to IFRS 3 Definition of a business Amendments to IAS 16 Property, Plant and Equipment - before being used Amendments to IAS 37 Onerous contracts - costs of fulfilling a contract Annual improvements to IFRS 2018-2020 cycle Amendments to IFRS 1 First adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IFRS 16 Leases and IAS 41 Agriculture Additionally, the Company is continuously monitoring the progress of the interest rate benchmark reform project that modifies the regulations as mentioned below: Phase 2 of the interest rate benchmark reform (IBOR- Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) Interbank rates benchmark such as LIBOR, EURIBOR, and TIBOR, which represent the cost of obtaining unsecured funds, have been questioned about their viability as long-term funding benchmarks. The changes in the reform of the interest rates benchmark in its phase 2, refer to the modifications of financial assets, financial liabilities and lease liabilities, requirements for hedge accounting and disclosure of financial instruments. These improvements are effective as of January 1, 2021 with retrospective application, without it required to redo the comparative periods. With respect to modifying financial assets, financial liabilities and lease liabilities, the IASB introduced a practical expedient that involves updating the effective interest rate. On the other hand, with regard to hedge accounting, the hedge relationships and documentation must reflect the modifications to the hedged item, the hedging instrument and the risk to be hedged. Hedging relationships must meet all criteria for applying hedge accounting, including effectiveness requirements. Finally, with respect to disclosures, entities must disclose how they are managing the transition to alternative benchmark rates and the risks that may arise from the transition; in addition, they must include quantitative information on financial assets and non-derivative financial liabilities, as well as non-derivative financial instruments, that continue under the reference rates subject to the reform and the changes that have arisen to the risk management strategy. The Company is in the process of evaluating the impacts derived from the application of these amendments. IFRS 17 Insurance Contracts IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance contracts and replaces IFRS 4 - Insurance contracts. IFRS 17 describes a general model, which is modified for insurance contracts with direct participation features, which is described as the Variable Rate Approach. The general model is simplified if certain criteria are met when measuring the liability for remaining coverage using the premium allocation method. The general model will use current assumptions to estimate the amount, timing and uncertainty of future cash flows and will explicitly measure the cost of that uncertainty, taking into account market interest rates and the impact of options and guarantees of the insured. In June 2020, the IASB issued the amendments to IFRS 17 to address the concerns and implementation of the changes that were identified after IFRS 17 was published. The amendments defer the date of initial application of IFRS 17 (incorporating the amendments) to the annual report beginning on or after January 1, 2023. At the same time, the IASB issued a Temporary Extension of Exemption to Apply IFRS 9 (Amendments to IFRS 4) that extends the expiration date of the temporary exception to apply IFRS 9 to IFRS 4 for annual periods beginning on or after January 1, 2023. IFRS 17 should be applied retrospectively unless it is not practical, in which case the retrospective approach will be modified, or the fair value approach will be applied. In accordance with the transition requirements, the date of initial application is the beginning of the annual reporting period in which the entity first applies the Standard and, the transition date is the beginning of the period immediately preceding the date of the initial application. Amendments to IAS 1 Classification of Liabilities as Current and Non-Current The amendments to IAS 1 affect only the presentation of liabilities as current and non-current in the statement of financial position and not the amount or timing at which any asset, liability, income or expense is recognized, or the information disclosed about those items. The amendments clarify that the classification of liabilities as current and non-current is based on the rights to exist at the end of the reporting period, specify that the classification is not affected by expectations about whether the entity will exercise the right to defer settlement of the liability, explain that rights exist if there are covenants to be met at the end of the reporting period, and introduce a definition of ‘arrangement’ to make it clear that the arrangement refers to the transfer of cash from the counterparty, equity instruments, other assets or services. The amendments are applied retrospectively for annual periods beginning on or after January 1, 2023, with early application permitted . Amendments to IFRS 3 - Reference to the Conceptual Framework The amendments update IFRS 3 so that it can refer to the 2018 Conceptual Framework instead of the 1989 Framework. They also added a requirement that, for obligations within the scope of IAS 37, a buyer applies IAS 37 to determine whether the acquisition date is a present obligation or exists as a result of a past event. For liens that are within the scope of IFRIC 21 - Liens, the buyer applies IFRIC 21 to determine whether the obligation gives rise to a liability to pay the lien that occurred at the acquisition date. Finally, the amendments add an explicit statement that the buyer will not recognize a contingent asset acquired from a business combination. The amendments are effective for business combinations for which the acquisition date is on or after the initial period of the first annual period beginning on or after January 1, 2022. With an option for early application if the entity also applies all other updated references (published together with the Conceptual Framework ) at the same time or early. Amendments to IAS 16 - Property, Plant and Equipment - before Intended Use. The amendments prohibit the deduction from the cost of an asset of property, plant or equipment of any revenue from selling the asset after it is ready for use, for example, revenue while the asset is being brought to the location and the necessary refurbishment is being carried out to make it operable in the manner intended by management. Accordingly, an entity should recognize those sales revenues and costs in profit or loss. The entity measures the costs of these items in accordance with IAS 2 Inventories . The amendments clarify the meaning of ‘testing whether an asset is functioning properly’. IAS 16 now specifies this as an assessment in which the physical and technical performance of the asset is capable of being used in the production or supply of goods or services, for rental or other, or administrative purposes. If not presented separately in the statement of comprehensive income, the financial statements must disclose the amounts of revenues and costs in income related to items that are not an outflow from the entity's ordinary activities in the line item(s) in the statement of comprehensive income where |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Significant accounting policies | (3) Significant accounting policies The significant accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. a) Basis of consolidation i. Subsidiaries Subsidiaries are entities controlled by the Company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control is lost (see note 5). Profits and losses of subsidiaries acquired or sold during the year are included in the consolidated statements of profit and loss and other comprehensive income from the acquisition date to the disposal date. Where necessary, the financial statements of subsidiaries are adjusted to align their accounting policies with the Company’s consolidated accounting policies. ii. Transactions eliminated in consolidation Significant intercompany balances and transactions, and any unrealized gains and losses arising from transactions between consolidated companies have been eliminated in preparing these consolidated financial statements. iii. Non-controlling interest Non-controlling interests in subsidiaries are identified separately from the Company's capital in them. Non-controlling shareholders' interests that are current ownership interests that entitle their holders to a proportionate share of the net assets at liquidation may be initially measured at fair value or the non-controlling share of fair value. the identifiable network of the acquiree. The choice of measure is made acquisition by acquisition. Other non-controlling interests are initially measured at fair value. Post-acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the participation of non-controlling interests in subsequent changes in capital. Total comprehensive income is attributed to non-controlling interests even if this results in non-controlling interests having a negative balance. iv. Business combinations Business combinations are accounted for using the acquisition method. For each business combination, any non-controlling interest in the acquiree is valued either at fair value or according to the proportionate interest in the acquiree’s identifiable net assets. In a business combination, the Company evaluates the assets acquired and the liabilities assumed for proper classification and designation according to the contractual terms, economic circumstances and relevant conditions at the acquisition date. Goodwill is originally valued at cost and represents any excess of the transferred consideration over the net assets acquired and liabilities assumed. If the net amount of identifiable acquired assets and assumed liabilities as of the acquisition date exceeds the sum of the consideration transferred, the amount of any non-controlling interest in the acquired entity and the fair value of the prior shareholding of the acquirer in the acquired entity (if any), any excess is immediately recognized in the consolidated statement of profit and loss and other comprehensive income as a bargain purchase gain. Transaction costs, other than those associated with the issuance of debt or equity securities, that the Company incurs related to a business combination are expensed as incurred. Certain contingent consideration payable are measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognized in profit and loss. b) Foreign currency i. Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of the Company at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. The foreign currency gain and loss on monetary items is the difference between amortized cost in the functional currency at the beginning of the period, adjusted for interest and principal payments during the period, and the amortized cost in foreign currency translated at the exchange rate at the end of the reporting period. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. ii. Translation of foreign operations Assets and liabilities, including goodwill and fair value adjustments arising on acquisition, of foreign operations whose functional currency differs from the reporting currency, are translated into Mexican pesos at the exchange rates at the reporting date. Income and expenses are translated to pesos at the average exchange rate of the period of the transactions. Foreign currency differences associated with translating foreign operations into the reporting currency (Mexican peso) are recognized in other comprehensive income and presented in the foreign currency translation reserve in stockholders’ equity. Foreign exchange gains and losses arising from amounts receivable or payable to a foreign operation, whose settlement is neither planned nor likely in the foreseeable future, are considered part of a net investment in a foreign operation and are recognized under the other comprehensive income account and presented within stockholders’ equity in the foreign currency translation reserve. For the years ended December 31, 2020, 2019 and 2018 the Company did not enter into such transactions. c) Financial instruments i. Financial assets Classification of financial assets The Company classifies and measures its financial assets under the following criteria: The Company’s debt instruments are subsequently measured at amortized cost if the financial asset is maintained in a business model whose objective is to hold financial assets with the objective of obtaining contractual cash flows; and the contractual terms of the financial asset give rise on specific dates to cash flows that are only principal and interest payments on the amount of the principal. Furthermore, debt instruments are subsequently measured at fair value through other comprehensive income if the financial asset is maintained within a business model whose objective is met by obtaining contractual cash flows and selling financial assets; and the contractual terms of the financial asset give rise, on specific dates, to cash flows that are only principal and interest payments on the outstanding amount of the principal. By default, all other financial assets are subsequently measured at fair value through profit and loss. Recognition and derecognition of financial assets Assets are initially recognized on the date of the contract in which the Company becomes a member of the contractual provisions of the instruments and they are initially valued at their fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and liabilities (other than financial assets at fair value through profit or loss) are added to or reduced from the fair value of the financial assets or liabilities, where applicable, at initial recognition. Transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are recognized immediately in profit or loss. All regular purchases or sales of financial assets are recognized and derecognised on a trade date. Regular purchases or sales are purchases or sales of financial assets that require the delivery of assets within the period established by the regulation or usual practices in the market. All recognized financial assets are subsequently measured in full, either at amortized cost or fair value, according to the classification of financial assets. Financial assets of the Company include cash and cash equivalents, investment in securities at fair value through profit or loss, derivative financial instruments and trade receivables. The Company initially recognizes accounts receivable and cash equivalents on the date that they arise. All other financial assets (including assets measured at fair value through profit and loss) are initially recognized on the trading date, which is the date that the Company becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial asset when the contractual rights to cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which all the risks and rewards of ownership of the financial asset are substantially transferred. Financial assets and liabilities are offset and the net amount is presented in the consolidated statement of financial position solely if the Company has a legal right to offset the amounts and intends either to settle them on a net basis of financial assets and liabilities or otherwise realize the asset and settle the liability simultaneously. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the acquisition date, which are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments. Receivables Receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, receivables are measured at amortized cost. Receivables comprise trade, due from related parties and other receivables. Impairment of financial assets The Company evaluates whether its financial assets accounted for at amortized cost and at fair value through other comprehensive income are impaired on the basis of losses due to expected credit losses. The amount of expected credit losses is updated on each reporting date to reflect changes in credit risk since the initial recognition of the respective financial instrument. The Company recognizes lifetime expected credit losses for commercial accounts receivable, contract assets and accounts receivable for leases. The expected credit losses on these financial assets are estimated using a provision matrix based on the Company’s historical experience of credit losses, adjusted for factors that are specific to the debtors, the general economic conditions and management’s assessment of both the current and forecast conditions at the reporting date, including the time value of money when appropriate. For all other financial instruments, the Company recognizes the lifetime expected credit loss when there has been a significant increase in credit risk since the initial recognition. However, if the credit risk in the financial instrument has not increased significantly since the initial recognition, the Company measures the provision for losses for that financial instrument in an amount equal to the 12‑month expected credit losses. The Company considers a significant increase in credit risk to have occurred when the financial investment asset’s credit rating falls to the level of speculation, or when the rating provided by external ratings agencies has decreased by more than 2 levels with respect to the level at which it was acquired. Additionally, the Company considers that default has occurred when a financial asset is more than 90 days past-due, unless there is reasonable and reliable information demonstrating that a later default criterion is more appropriate. ii. Financial liabilities Debt and/or equity instruments are classified as financial liabilities or as equity according to the substance of the contractual agreement and the definitions of liability and equity. All financial instrument liabilities are initially recognized on the trade date, which is the date that the Company becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial instrument liability when its contractual obligations are met, cancelled or expire. The Company has the following non-derivative financial instrument liabilities: short-term and long-term debt, and trade and other payables and accounts payable to related parties. The aforementioned financial liabilities are originally recognized at fair value, plus costs directly attributable to the transaction. Subsequently, these financial liabilities are measured at amortized cost using the effective interest method or at fair value through profit or loss during their contractual term. iii. Derivative financial instruments The Company participates in a variety of derivative financial instruments to manage its exposure to exchange rate risks, including currency forward contracts. Derivative financial instruments entered into for fair value hedging or for trading purposes are initially recognized at fair value; any attributable transaction costs are recognized in profit and loss as incurred. Government grants are recognized initially as a liability, and subsequently recognized to profit and loss as the related obligation is settled. Subsequent to the initial recognition, such derivative financial instruments are measured at fair value, and changes in such value are immediately recognized in profit and loss unless the derivative is designated and is effective as a hedging instrument, in which case, its recognition in profit and loss will depend on the nature of the hedging. Fair value of derivative financial instruments that are traded in recognized financial markets is based on quotes issued by these markets; when a derivative financial instrument is traded in the “ Over the Counter ” market, the fair value is determined based on internal models and market inputs accepted in the financial environment. A derivative with a positive fair value is recognized as a financial asset, while a derivative with a negative fair value is recognized as a financial liability. Derivatives are not offset in the financial statements unless the Company has both the legal right and the intention to offset. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities. The Company analyzes if there are embedded derivatives that should be segregated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related. A separate instrument with the same terms as those of the embedded derivative meets the definition of a derivative, and the combined instrument is not measured at fair value through profit and loss. Changes in fair value of the separable embedded derivatives are immediately recognized in profit and loss. iv. Hedge Accounting The Company designates certain derivatives as hedging instruments with respect to foreign currency risk with fair value hedges, cash flow hedges or hedges of net investments in foreign operations. Firm commitments that hedge foreign currency risk are accounted for as cash flow hedges. At the beginning of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, together with its risk management objectives and its strategy to carry out various hedging transactions. In addition, at the beginning of the hedge and on an ongoing basis, the Company documents whether the instrument is effective to offset changes in the fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging relationships comply with all of the following coverage effectiveness requirements: · There is an economic relationship between the hedging instrument and the hedged item; · The effect of credit risk does not dominate the value of the changes resulting from the economic relationship; and · The coverage ratio of the coverage ratio is the same as that resulting from the amount of the hedged item that the Company actually covers and the amount of the hedging instrument that the Company actually uses to cover that amount of the hedged item. If the hedging instrument no longer meets the effectiveness requirement related to the hedging relationship, but the risk management objective for that designated hedging relationship remains the same, the Company adjusts the hedging relationship (that is, rebalances) so that it meets the qualification criteria again. The Company designates the entire change in the fair value of a forward contract (that is, it includes the forward elements) as the hedging instrument for all its hedging relationships that involve forward contracts. The Company designates only the intrinsic value of option contracts as a hedged item, that is, excluding the time value of the option. Changes in the fair value of the option are recognized in other comprehensive income and are accumulated in the cost of the hedge reserve. If the hedged item is related to the transaction, the fair value is reclassified to profit or loss when the hedged item affects the profit or loss. If the hedged item is related to the period of time, then the accumulated amount in the cost of the hedge reserve is reclassified to profit or loss in a rational manner: the Company amortizes the accumulated hedge reserve to profit or loss using the straight-line method. These reclassified amounts are recognized in profit or loss on the same line as the hedged item. If the hedged item is a non-financial item, the accumulated amount in the cost of the hedge reserve is eliminated directly from equity and is included in the initial carrying amount of the recognized non-financial item. In addition, if the Company expects that part or all of the accumulated loss in the cost of the hedge reserve will not be recovered in the future, that amount will be reclassified immediately to results. v. Capital stock Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of ordinary shares are recognized as a deduction from equity, net of any tax effects. Stock repurchase When share capital recognized as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the reserve for repurchase of shares. When treasury shares are sold or are re-issued subsequently, the amount received as well as the resulting surplus or deficit on the transaction is recognized in equity. d) Property, plant and equipment i. Recognition and measurement Property, plant and equipment, except for land, are recorded at acquisition cost less accumulated depreciation and any accumulated impairment losses. Land is measured at the acquisition costs less any accumulated impairment losses. Acquisition cost includes the purchase price, as well as any cost directly attributable to the acquisition of the asset, including all costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. When components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. An item of property, plant and equipment is derecognized at the time of disposal or when no future economic benefits are expected to arise from the continued use of the asset. Gains or losses on the sale of an item of property, plant and equipment are determined by comparing the proceeds from the sale with the carrying amount of property, plant and equipment, and are recognized net under “other income (expenses)” in profit and loss for the year. ii. Subsequent costs The replacement cost of an item of property, plant and equipment is capitalized if the future economic benefits associated with the cost are expected to flow to the Company and the related cost is reliably determined. The carrying amount of the replaced item is written off from the accounting records. Maintenance and repair expenses related to property, plant and equipment are expensed as incurred. iii. Depreciation Depreciation is calculated over the cost of the asset less its residual value, using the straight line method, based on the estimated useful life of the assets. Depreciation is recognized in profit and loss beginning from the time when the assets are available for use. Below are the estimated useful lives for 2020, 2019 and 2018: Average useful Life Buildings 46 Machinery and Equipment 19 Vehicles 11 Computers 8 Furniture 11 The Company has estimated the following residual values as of December 31, 2020, 2019 and 2018: Residual Value Buildings 9 % Machinery and Equipment 8 % Vehicles 5 % Computers 0 % Furniture 2 % e) Goodwill Goodwill arises as a result of the acquisition of a business over which control is obtained and is measured at cost less cumulative impairment losses; it is subject to annual tests for impairment. f) Intangible assets They are mainly comprised of trade names and customer relationships derived from the acquisition of businesses in the United States of America. The cost of intangible assets acquired through a business combination represents their fair value at the acquisition date and they are recognized separately from goodwill. Subsequently, they are valued at cost less amortization and accumulated impairment losses. Intangible assets are classified as having a definite or indefinite life. Those with a defined life are amortized under the straight-line method during their estimated life and when there are impairment indicators, they are tested for impairment. The amortization methods and the useful life of the assets are reviewed and adjusted, if necessary, at the date of each statement of financial position. Amortization is charged to income in the general expenses category. Those with an indefinite life are not amortized, but are subject to impairment tests at least annually. g) Biological assets Biological assets whose fair value can be measured reliably are measured at fair value less costs of sale, with any change therein recognized in profit and loss. Costs of sale include all costs that would be necessary to sell the assets, excluding finance costs and income taxes. The Company’s biological assets consist of growing poultry, poultry in its different production stages, hatching eggs, breeder pigs, and growing pigs. When fair value cannot be reliably, verifiably and objectively determined, assets are valued at production cost less accumulated depreciation, and any cumulative impairment loss. Depreciation related to biological assets forms part of the cost of inventories and current biological assets and is ultimately recognized within cost of sales in the statement of profit and loss and other comprehensive income. Depreciation of poultry and breeder pigs is estimated based on the expected future life of such assets and is calculated on a straight-line basis. Expected average useful life (weeks) Poultry in its different production stages 40-47 Breeder pigs Biological assets are classified as current and non-current assets, based on the nature of such assets and their purpose, whether for commercialization or for reproduction and production. h) Leased assets Until December 31, 2018 operating lease rentals paid by the Company were recognized in profit and loss using the straight-line method over the lease term, even though payments may not be made on the same basis. Assets held under finance leases were depreciated over their expected useful lives on the same basis as owned assets. However, when there is no reasonable certainty that ownership will be obtained at the end of the lease term, assets are depreciated over the shorter of the lease term or their useful lives. During 2020 and 2019, the Company evaluates whether a contract is or contains a lease at the beginning of the contract term. A lease is defined as a contract that grants the right to control the use of an identified asset, for a specified period, in exchange for consideration. The Company recognizes a right-of-use asset and a corresponding lease liability, with respect to all the lease agreements in which it operates as lessee, except in the following cases: short-term leases (defined as leases with a term of lease less than 12 months); low-value asset leases (defined as asset leases with an individual market value of less than 5 thousand dollars); and, the lease contracts whose payments are variable (without any fixed contractually defined payment). For these contracts that exclude the recognition of a right-of-use asset and a lease liability, the Company recognizes rental payments as a straight-line operating expense during the lease term. The right-of-use asset is made up of discounted lease payments at present value; direct costs of obtaining a lease; advance lease payments; and the dismantling or asset removal obligations. The Company depreciates the right-of-use asset over the shorter period of the lease term and the useful life of the underlying asset; In this sense, when a purchase option in the lease is likely to be exercised, the right-of-use asset depreciates over its useful life. Depreciation begins on the start date of the lease. The lease liability is measured at initial recognition by discounting future minimum income payments at present value according to a term, using a discount rate that represents the cost of obtaining financing in an amount equivalent to the value of the contract's income, for the acquisition of the underlying asset, in the same currency and for a period similar to the corresponding contract (incremental borrowing rate). When the contract payments contain non-lease components (services), the Company has chosen, for some asset classes, not to separate them and to measure all payments as a single lease component; however, for the rest of the asset classes, the Company measures the lease liability only considering the payments of components that are rents, while the services implicit in the payments are recognized directly in results as operating expenses. To determine the term of the lease, the Company considers the mandatory term, including the probability of exercising any right to extend the term and / or an early termination. Subsequently, the lease liability is measured by increasing the book value to reflect the interest on the lease liability (using the effective interest method) and reducing the book value to reflect the rental payments made. When there are modifications to the lease payments for inflation, the Company remits the lease liability from the date the new payments are known, without reconsidering the discount rate. However, if the modifications are related to the term of the contract or the exercise of a purchase option, the Company re-evaluates the discount rate in the measurement of the liability. Any increase or decrease in the value of the lease liability subsequent to this re-measurement is recognized by increasing or decreasing to the same extent, as the case may be, the value of the right-of-use asset. Finally, the lease liability is derecognized at the time the Company pays all of the contract's payments. When the Company determines that it is probable that it will exercise an early termination from the contract that merits a cash outlay, said consideration is part of the re-measurement of the liability mentioned in the preceding paragraph; however, in those cases in which the early termination does not imply a cash outlay, the Company pays the lease liability and the corresponding right of use asset, recognizing the difference between the two immediately in the consolidated statement of income. i) Inventories Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on average cost, and includes expenditures incurred for acquiring inventories, production or transformation costs, and other costs incurred for bringing them to their present location and condition. Agricultural products derived from biological asses are processed chickens and commercial eggs. Net realizable value is the estimated selling price in the ordinary course of business, less the costs necessary to make the sale. Cost of sales represents cost of inventories at the time of sale, increased, if applicable, by reductions in inventory to its net realizable value, if lower than cost, during the year. The Company records the necessary reductions in the value of its inventories for impairment, obsolescence, slow movement and other factors that may indicate that the use or performance of the items that are part of the inventory may be lower than the carrying value. j) Impairment i. Financial assets A financial asset that is not recorded at fair value through profit and loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of a loss event after the initial recognition of the asset, and that such loss event had a negative impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired includes default or delinquency by a debtor, restructuring of an amount due to the Company, evidence that a debtor may go bankrupt, or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged reduction in its fair value below its cost is objective evidence of impairment. The Company considers evidence of impairment for financial assets valued at amortized cost (accounts receivables) both individually and collectively. All individually significant receivables and other financial assets are assessed for specific impairment. Assets that are not individually significant are collectively assessed for impairment by grouping together assets with similar risk characteristics. In assessing collective impairment, the Company follows an expected loss model and the calculation is applicable to all receivables regardless of whether or not they have objective evidence of impairment. For these estimates, management uses historical trends of probabilities of default, timeliness of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current economic and credit conditions are such that the actual losses are greater or less than those implied by historical trends. An impairment loss related to a financial asset valued at amortized cost is calculated as the difference between the carrying amount of the asset and the present value of estimated future cash flows discounted at the effective interest rate. Losses are recognized in profit and loss and reflected in an allowance account against receivables. ii. Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories, biological assets and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the recoverable amount of the asset is estimated or cash generating units, as the lowest between its value in use and the fair value less cost of sale. Goodwill and indefinite-lived intangible assets are tested annually for impairment on the same dates. The Company defines the cash generating units and also estimates the periodicity and cash flows that they should generate. Subsequent changes in the group of cash-generating units, or changes in the assumptions that support the cash flow estimates or the discount rate could impact the carrying amounts of the respective asset. The main assumptions for developing estimates of recoverable amounts requires the Company’s management to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate its present value. The Company estimates cash flow projections considering current market conditions, determination of future prices of goods and volumes of production and sales. In addition, for the purposes of the discount and perpetuity growth rates, the Company uses indicators of market and expectations of long-term growth in the markets in which it |
Business and asset acquisitions
Business and asset acquisitions | 12 Months Ended |
Dec. 31, 2020 | |
Business and asset acquisitions | |
Business and asset acquisitions | (4) Business and asset acquisitions Acquisition of Sonora Agropecuaria, S.A. de C.V. On June 26, 2020, the Company acquired 54.80% of voting stock of Sonora Agropecuaria, S.A. de C.V. The operating results are included in the consolidated financial statements as of that date. Sonora Agropecuaria, S.A. de C.V. is dedicated to the processing and distribution of pigs, and has operations in the states of Sonora, Jalisco, Guanajuato, Mexico City and Yucatan, Mexico. The purchase price paid as a capital contribution amounted to $215,000. The purchase of Sonora Agropecuaria, S.A. de C.V. benefits the “Other” segment as it will allow it to accelerate the pace of growth and continue advancing in the process of diversifying other animal proteins. The assets acquired and the assumed liabilities of Sonora Agropecuaria, S.A. de C.V. were recognized based on the best estimate of their fair value at the acquisition date. The fair value of the assets was determined using cost and market approaches. The cost approach, which estimates the value based on the current replacement cost of an asset by another asset of equal usefulness, was used mainly for plant and equipment. The market approach, in which the value of an asset is based on available market prices for comparable assets, was used mainly for real estate. Due to their liquidity or short-term maturities, as appropriate, the Company concluded that Sonora Agropecuaria, S.A. de C.V.’s pre-acquisition carrying amounts for cash equivalents, accounts receivable, inventories, other current assets, accounts payable and other current liabilities approximate their fair value at the acquisition date. Identifiable assets acquired and liabilities assumed The following is a summary of the recognized amounts of acquired assets and assumed liabilities at the date, compared to the consideration paid: Acquisition value Current assets, other than inventories $ 349,834 Inventories 123,959 Property, plant and equipment 383,680 Total assets 857,473 Current liabilities (263,365) Deferred income tax (35,916) Acquired net identifiable assets 558,192 Controlling interest 305,889 Non-controlling interest 252,303 Consideration paid 215,000 Bargain purchase gain (note 30) $ 90,889 At the acquisition date, the non-controlling interest is measured on the basis of the proportional participation of the acquiree's identifiable net assets. The bargain purchase gain arises because the net of fair value of the assets at the acquisition date exceeds the amount of the consideration transferred. The business strategies followed by the acquiree in the past resulted in a high cost structure and limited opportunity for improving profitability, resulting in a fair value of the business below that of its component parts. For this reason, a gain was recognized in other (expense) income (see note 30) in the consolidated statement of profit or loss and other comprehensive income. Had the acquisition occurred on January 1, 2020, management estimates that consolidated revenues and consolidated profits for the year ended December 31, 2020 would have totaled $70,337,002 and $3,991,092, respectively. In determining these amounts, management has assumed that the provisional adjustments to fair value recognized at the date of acquisition would have been similar if the acquisition had occurred on January 1, 2020. Costs related to acquisition. During 2020, the Company incurred costs related to the acquisition of Sonora Agropecuaria, S.A. de C.V. of $1,704 corresponding to external legal fees and due diligence costs, which are included in other expenses in the Company’s consolidated statement of profit and loss and other comprehensive income. |
Subsidiaries of the Company
Subsidiaries of the Company | 12 Months Ended |
Dec. 31, 2020 | |
Subsidiaries of the Company | |
Subsidiaries of the Company | (5) Subsidiaries of the Company A list of subsidiaries and the Company’s shareholding percentage in such subsidiaries as of December 31, 2020, 2019 and 2018 are presented below: Shareholding percentage in subsidiaries December 31, Name Country 2020 2019 2018 Bachoco, S.A. de C.V. México 99.99 99.99 99.99 Bachoco USA, LLC. & Subsidiary U.S. 100.00 100.00 100.00 Campi Alimentos, S.A. de C.V. México 99.99 99.99 99.99 Induba Pavos, S.A. de C.V. México 99.99 99.99 99.99 Bachoco Comercial, S.A. de C.V. México 99.99 99.99 99.99 PEC LAB, S.A. de C.V. México 64.00 64.00 64.00 Aviser, S.A. de C.V. México 99.99 99.99 99.99 Operadora de Servicios de Personal, S.A. de C.V. México 99.99 99.99 99.99 Secba, S.A. de C.V. México 99.99 99.99 99.99 Servicios de Personal Administrativo, S.A. de C.V. México 99.99 99.99 99.99 Sepetec, S.A. de C.V. México 99.99 99.99 99.99 Wii kit RE LTD. Bermuda 100.00 100.00 100.00 Proveedora La Perla S.A. de C.V. México 100.00 100.00 100.00 Sonora Agropecuaria, S.A. de C.V. México 54.80 — — The main subsidiaries of the group and their activities are as follows: - Bachoco, S.A. de C.V. (“ BSACV ”) (includes four subsidiaries which are 51% owned, and over which BSACV has control). BSACV is engaged in breeding, processing and marketing poultry goods (chicken and eggs). - Bachoco USA, LLC. holds the shares of OK Foods, Inc. and, therefore, all operations controlled by the Company in the United States of America. The primary activities of Bachoco USA, LLC and its subsidiary are comprised of the production of chicken products and hatching eggs, mostly marketed in the United States of America and, to a lesser extent, in other foreign markets. - Campi Alimentos, S.A. de C.V., is engaged in producing and marketing balanced animal feed and pet treats, mainly for sales to third parties. - The main activity of Bachoco Comercial, S.A. de C.V. is the distribution of chicken, turkey and beef value-added products. - The main activity of Induba Pavos, S.A. de C.V. and Proveedora La Perla, S.A. of C.V. is the leasing of property, plant and equipment to its related parties. - PEC LAB, S.A. de C.V. is the holding of the shares of Pecuarius Laboratorios, S.A. de C.V. Its main activity consists of the production and distribution of medicines and vaccines for animal consumption. - Aviser, S.A. de C.V., Operadora de Servicios de Personal, S.A. de C.V., Secba, S.A. de C.V., Servicios de Personal Administrativo, S.A. de C.V. and Sepetec, S.A de C.V. are engaged in providing administrative and operating services rendered to their related parties. - Wii kit RE LTD. in Bermuda, it is a Class I reinsurance company that provides insurance coverage to its affiliates. - Sonora Agropecuaria, S.A. DE C.V., in Mexico, it is dedicated to the pig processing and distribution. None of the Company’s contracts or loan agreements restrict the net assets of its subsidiaries. |
Operating segments
Operating segments | 12 Months Ended |
Dec. 31, 2020 | |
Operating segments | |
Operating segments | (6) Operating segments Reportable segments have been determined based on a product line approach. Intersegment transactions have been eliminated. The poultry segment consists of chicken and egg operations. The information included in the “Others” segment corresponds to operations of swine, balanced feed for animal consumption and other by-products that do not meet the quantitative thresholds to be considered as reportable segments. Inter-segment pricing is determined on an arm’s length basis comparable to those which would be used with or between independent parties in comparable transactions. The accounting policies of operating segments are as those described in note 3 t). Below is the information related to each reportable segment. Performance is measured based on each segment’s income before taxes, in the same manner as it is included in management reports that are regularly reviewed by the Company’s Board of Directors. a) Operating segment information Year ended December 31, 2020 Poultry Other Total Net revenues $ 61,323,853 7,468,149 68,792,002 Cost of sales 51,165,650 6,541,916 57,707,566 Gross profit 10,158,203 926,233 11,084,436 Finance income 998,654 174,866 1,173,520 Finance costs 260,570 30,759 291,329 Income before taxes 4,626,582 557,121 5,183,703 Income taxes 1,060,876 150,735 1,211,611 Net income attributable to controlling interest 3,532,589 403,083 3,935,672 Property, plant and equipment, net 17,146,405 2,587,417 19,733,822 Goodwill 1,562,404 88,312 1,650,716 Intangible assets 753,224 — 753,224 Total assets 51,081,829 7,393,171 58,475,000 Total liabilities 13,144,941 1,403,251 14,548,192 Purchases of property, plant and equipment 1,978,818 773,463 2,752,281 Depreciation and amortization 1,542,031 193,115 1,735,146 Poultry Other Total revenues revenues revenues Total revenues $ 61,332,013 7,506,962 68,838,975 Intersegments (8,160) (38,813) (46,973) Net revenues $ 61,323,853 7,468,149 68,792,002 Year ended December 31, 2019 Poultry Other Total Net revenues $ 55,653,027 6,002,218 61,655,245 Cost of sales 46,456,076 5,101,275 51,557,351 Gross profit 9,196,951 900,943 10,097,894 Finance income 860,140 131,492 991,632 Finance costs 529,226 81,142 610,368 Income before taxes 3,854,474 503,330 4,357,804 Income taxes 993,652 131,326 1,124,978 Net income attributable to controlling interest 2,849,145 370,786 3,219,931 Property, plant and equipment, net 16,440,851 2,115,795 18,556,646 Goodwill 1,490,978 88,016 1,578,994 Intangible assets 772,640 — 772,640 Total assets 49,533,440 6,169,051 55,702,491 Total liabilities 14,066,224 1,375,932 15,442,156 Purchases of property, plant and equipment 1,811,086 258,241 2,069,327 Depreciation and amortization 1,171,200 115,243 1,286,443 Poultry Other Total revenues revenues revenues Total revenues $ 55,656,645 6,037,772 61,694,417 Intersegments (3,618) (35,554) (39,172) Net revenues $ 55,653,027 6,002,218 61,655,245 Year ended December 31, 2018 Poultry Other Total Net revenues $ 55,308,141 5,743,951 61,052,092 Cost of sales 46,562,214 4,860,162 51,422,376 Gross profit 8,745,927 883,789 9,629,716 Finance income 1,094,377 46,372 1,140,749 Finance costs 288,703 43,465 332,168 Income before taxes 4,025,050 491,501 4,516,551 Income taxes 1,028,335 126,643 1,154,978 Net income attributable to controlling interest 2,986,328 363,639 3,349,967 Property, plant and equipment, net 16,060,590 1,957,586 18,018,176 Goodwill 1,543,755 88,016 1,631,771 Intangible assets 962,738 (13,383) 949,355 Total assets 47,205,252 5,660,342 52,865,594 Total liabilities 13,364,922 1,334,967 14,699,889 Purchases of property, plant and equipment 1,747,286 235,297 1,982,583 Depreciation and amortization 1,121,751 105,166 1,226,917 Poultry Other Total revenues revenues revenues Total revenues $ 55,312,273 5,785,289 61,097,562 Intersegments (4,132) (41,338) (45,470) Net revenues $ 55,308,141 5,743,951 61,052,092 b) Geographical information When submitting information by geographic area, revenue is classified based on the geographic location where the Company’s customers are located. Segment assets are classified in accordance with their geographic location. Geographical information for the “Others” segment is not included below because the operations are carried out entirely within Mexico. Year ended December 31, 2020 Operations between Domestic Foreign geographical poultry poultry segments Total Net revenues $ 41,835,033 19,573,023 (84,203) 61,323,853 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies: Non-current biological assets 1,185,308 806,222 — 1,991,530 Property, plant and equipment, net 14,659,461 2,486,944 — 17,146,405 Goodwill 212,536 1,349,868 — 1,562,404 Intangible assets — 753,224 — 753,224 Year ended December 31, 2019 Operations between Domestic Foreign geographical poultry poultry segments Total Net revenues $ 38,778,025 16,931,735 (56,733) 55,653,027 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies: Non-current biological assets 1,058,126 760,785 — 1,818,911 Property, plant and equipment, net 13,799,774 2,641,077 — 16,440,851 Goodwill 212,833 1,278,145 — 1,490,978 Intangible assets — 772,640 — 772,640 Year ended December 31, 2018 Operations between Domestic Foreign geographical poultry poultry segments Total Net revenues $ 37,766,974 17,599,239 (58,072) 55,308,141 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies: Non-current biological assets 979,034 742,694 1,721,728 Property, plant and equipment, net 13,002,755 3,057,835 — 16,060,590 Goodwill 212,833 1,330,922 — 1,543,755 Intangible assets — 962,738 — 962,738 c) Major Customers In Mexico, the Company’s products are traded among a large number of customers, without significant concentration with any specific customer. Therefore, in 2020, 2019 and 2018, no customer represented over 10% of the Company’s total revenues. As of December 31, 2020, 2019 and 2018, the Company did not have operations with an individual customer that represented a significant concentration in the United States of America. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents. | |
Cash and cash equivalents | (7) Cash and cash equivalents The consolidated balances of cash and cash equivalents as of December 31, 2020, 2019 and 2018 are as follows: December 31, 2020 2019 2018 Cash and banks $ 12,941,334 13,106,862 13,566,098 Investments with maturities less than three months 4,305,998 5,513,276 4,331,423 17,247,332 18,620,138 17,897,521 Restricted cash 39,042 42,627 4,324 Total cash and cash equivalents $ 17,286,374 18,662,765 17,901,845 Restricted cash corresponds to the minimum margin required by the intermediary for the Company’s derivative financial instruments on commodities in order to meet future commitments that may stem from adverse market movements affecting prices on the open positions as of December 31, 2020, 2019 and 2018. |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments and risk management | |
Financial instruments and risk management | (8) Financial instruments and risk management The Company is exposed to market risks, liquidity risks and credit risks for the use of financial instruments, for which reason it exercises its risk management. This note presents information on the Company’s exposure to each one of the aforementioned risks, as well as the Company’s objectives, policies and processes for the measurement and management of financial risks. Risk management framework The philosophy adopted by the Company seeks to minimize risks and, therefore maximize business stability, focusing decisions on creating an optimum combination of products and assets that produce a risk – return ratio more in agreement with the risk profile of its stockholders. In order to establish a clear and optimal organizational structure with respect to risk management, a Risk Committee has been established which is the specialized body in charge of defining, proposing, approving and implementing the objectives, policies, procedures, methodologies and strategies, as well as the determination of the maximum limits of exposure to risk and contingency plans. At December 31, 2020, 2019 and 2018, the Company has not identified the existence of embedded derivatives. Some of the Company’s derivative financial instruments as of December 31, 2020, 2019 and 2018 meet the requirements to be treated as hedging instruments for accounting purposes (319,506, 24,352 and 1,500 thousand U.S. dollars of notional amounts). Some of the Company’s derivative financial instruments as of December 31, 2020 are recognized in earnings through profit or loss for accounting purposes (60,000 thousand U.S. dollars of notional amounts). During 2019 and 2018 certain derivative financial instruments held by the Company do not meet the requirements to be treated hedging instruments for accounting purposes. Management by type or risk a) Categories of financial assets and liabilities The Company’s financial assets and liabilities are shown below: December 31, 2020 2019 2018 Financial assets Cash and cash equivalents $ 17,286,374 18,662,765 17,901,845 Investment in securities at fair value through profit or loss 1,018,322 186,284 550,068 Investment in securities at fair value through other comprehensive income 937,715 315,761 — Investments in life insurance 71,431 65,545 66,177 Trade receivables 2,704,058 2,523,092 2,444,013 Due from related parties 686 13,674 99 Other long-term receivables 193,689 173,488 171,222 Derivative financial instruments — 18,098 6,570 Financial liabilities Current and non-current financial debt $ (2,517,965) (4,928,607) (5,037,600) Trade payables, sundry creditors and expenses payable (5,049,103) (4,491,171) (4,593,344) Current and non-current lease liabilities (719,711) (803,050) — Due to related parties (80,842) (76,704) (147,514) Derivative financial instruments (194,181) — — b) Credit risk Credit risk is defined as the potential loss of a portfolio of an amount owed to the Company due to lack of payment from a debtor, or for breach by a counterparty with which derivative financial instruments and investment in securities transactions are conducted. The risk management process contemplates the use of derivative financial instruments, which are exposed to a market risk, as well as counterparty risk. Measurement and monitoring of counterparty risk In terms of valuation and monitoring of Over the counter (“OTC”) derivative financial instruments and investments in securities, the Company currently measures its counterparty risk by identifying the Credit Valuation Adjustment (“CVA”) and Debit Valuation Adjustment (“DVA”). For investments in securities denominated in Mexican pesos, the financial instruments valuation models used by price vendors incorporate market movements and credit quality of issuers, thereby implicitly including the counterparty risk of the transaction in the fair value measurement; therefore, the position in investment in securities includes the counterparty risk and no additional adjustment is carried out. The price of the instruments obtained from the price vendor is the mid-point between the bid price and the ask price (the “mid-price”). Investments in securities denominated in a foreign currency, not listed in Mexico, are recorded at prices contained in the broker’s statements of account. The Company validates these market prices using Bloomberg, which incorporate market movements and the credit quality of issuers; thereby implicitly including the counterparty risk of the transaction and no related adjustment is carried out. The prices obtained from Bloomberg are mid prices. Trade accounts receivable and other accounts receivable measurement and monitoring It is the policy of the Company to establish an allowance for doubtful accounts to cover the balances of accounts receivable that are not likely to be recovered. To set the required allowance, the Company considers historical losses, assesses current market conditions, as well as customers’ financial conditions, accounts receivable in litigation, price differences, portfolio aging and current payment patterns. The impairment assessment of accounts receivable is performed on a collective basis, as there are no accounts with individually significant balances. The Company’s products are marketed to a large number of customers without, except as described in note 6 c, any significant concentration with a specific customer. As part of the objective evidence that an account receivable portfolio is impaired, the Company considers past experiences with respect to collection, increases in the number of overdue payments in the portfolio exceeding the average loan period, as well as observable changes in national and local economic conditions that correlate to defaults. The Company has a credit policy under which each new customer is analyzed individually in terms of its creditworthiness before offering it payment terms and conditions. The Company’s review includes internal and external assessments, and in some cases, bank references and a search in the Public Registry of Properties. For each customer, purchase limits are established, which represent the maximum credit amount. Customers that do not meet the Company’s credit references can solely conduct transactions in cash or through advance payments. The allowance for doubtful accounts includes trade accounts receivable that are in process of legal recovery, which amount to $143,278, $140,304 and $142,388 as of December 31, 2020, 2019 and 2018, respectively. The reconciliation of movements of the allowance for doubtful accounts, and the analysis of past-due accounts receivable but not impaired, are presented in note 9. The Company receives credit enhancements on credit lines granted to its clients, which consist of real and personal property, such as land, buildings, houses, vehicles, letters of credit, cash deposits and others. As of December 31, 2020, 2019 and 2018, the fair value of such credit enhancements, determined by an appraisal at the time the credit lines were granted, is $180,513, $663,500 and $572,085, respectively. The fair value of trade accounts receivable is similar to the carrying amount, as the terms granted under credit lines are of a short term nature and do not include significant finance components. Investments The Company limits its exposure to credit risk investing solely with counterparties that have been rated on a well-recognized credit rating scale or are deemed to be investment grade. Management constantly monitors credit ratings, and as it invests solely in securities with high credit ratings, it is not expected that any counterparty will fail to fulfill its obligations. Financial guarantees granted It is the Company’s policy to grant financial guarantees solely to 100% owned subsidiary companies. Exposure to credit risk The carrying amount of financial assets represents the maximum credit exposure, which as of the reporting date is as follows: December 31, 2020 2019 2018 Cash and cash equivalents $ 17,286,374 18,662,765 17,901,845 Investments in securities at fair value through profit or loss 1,018,322 186,284 550,068 Investment in securities at fair value through other comprehensive income 937,715 315,761 — Investments in life insurance 71,431 65,545 66,177 Accounts receivable net of guarantees received 2,717,920 2,046,754 1,986,102 Derivative financial instruments — 18,098 6,570 $ 22,031,762 21,295,207 20,510,762 c) Liquidity risk Liquidity risk is defined as the potential loss stemming from the impossibility to renew liabilities or enter into other liabilities under normal terms, the early or forced sale of assets or the need to grant unusual discounts in order to meet obligations, or by the fact that a position cannot be disposed of, acquired or covered promptly through the establishment of an equivalent contrary position. Liquidity risk management process considers the management of the assets and liabilities included in the consolidated statements of financial position ( Assets Liabilities Management - ALM) in order to anticipate funding difficulties because of extreme events. Monitoring The Company’s areas of risk management and financial planning measure, monitor and report to the Risk Committee liquidity risks associated with the ALM and prepare limits for the authorization, implementation and operation thereof, as well as contingent action measures in case of liquidity requirements. Liquidity risk caused by differences between current and projected cash flows at different dates are measured and monitored, considering all asset and liability positions of the Company denominated in local and foreign currency. Similarly, funding diversification and sources to which the Company has access are evaluated. The Company quantifies the potential loss arising from early or forced sale of assets or sale at unusual discounts to meet its obligations in a timely manner, as well as by the fact that a position cannot be disposed of, acquired or covered timely through the establishment of a contrary equivalent position. Liquidity risk monitoring considers a liquidity gap analysis, scenarios for lack of liquidity and use of alternative sources of financing. Below are the contractual maturities of the financial liabilities, including estimated interest payments. As of the date of the consolidated financial statements, there are no financial instruments which have been offset or recognized positions that are subject to offsetting rights. Maturity table December 31, 2020 Less than 1 year 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 5,049,103 — — Due to related parties 80,842 — — Derivative financial instruments 194,181 — — Lease liabilities 278,981 379,926 60,804 Financial debt, maturities at variable rates In U.S. dollars 778,050 — — In pesos 279,510 1,460,405 — Interest 85,340 44,613 — Total financial liabilities $ 6,746,007 1,884,944 60,804 December 31, 2019 Less than 1 year 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,491,171 — — Due to related parties 76,704 — — Lease liabilities 149,538 598,040 55,472 Financial debt, maturities at variable rates In U.S. dollars 2,831,191 — — In pesos 609,208 1,488,208 — Interest 134,535 207,643 — Total financial liabilities $ 8,292,347 2,293,891 55,472 December 31, 2018 Less than 1 year 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,593,344 — — Due to related parties 147,514 — — Financial debt, maturities at variable rates In U.S. dollars 2,757,459 — — In pesos 735,334 44,014 1,500,793 Interest 145,860 270,977 79,719 Total financial liabilities $ 8,379,511 314,991 1,580,512 At least on a monthly basis, management evaluates and advises the Board of Directors on its liquidity. As of December 31, 2020, the Company has evaluated that it has sufficient resources to meet its obligations in the short and long term; therefore, it does not consider having liquidity gaps in the future and it will not be necessary to sell assets to pay its debts at unusual discounts or at out-of-market prices. d) Market risk Market risk is defined as the potential loss arising from the portfolio of derivative financial instruments and investment in securities for changes in risk factors that affect the valuation of short or long positions. In this sense, the uncertainty of future losses resulting from changes in market conditions (interest rates, foreign currency, prices of commodities, among others), which directly affects movements in the price of both assets and liabilities, is detected. The Company measures, monitors and reports all financial instruments subject to market risk, using sensitivity measurement models to show the potential loss associated with movements in risk variables, according to different scenarios on rates, prices and types of change during the period. Monitoring Sensitivity analyses are prepared at least monthly and are compared with the limits established. Any excess identified is reported to the Risk Committee. Stress tests At least monthly, the Company conducts stress tests calculating the value of the portfolios and considering changes in risk factors observed in historical dates of financial stress. i. Commodities price risk With respect to risks related to commodities designated in a formal hedging relationship, the Company seeks protection against downward variations in the agreed-upon price of corn and/or sorghum with the producer, which may represent an opportunity cost as there are lower prices in the current market upon receiving the inventory, and to hedge the risk of a decline in prices between the receipt date and that of inventory consumption. Purchases of corn and/or sorghum are formalized through an agreement denominated "Forward buy-sell agreement", which has the following characteristics: · Transaction date · Number of agreed-upon tons · Harvest, state and agricultural cycle from which the harvest originates · Price of product per ton, plus quality award or penalty Agricultural agreements that result in firm commitments are linked to two corn and/or sorghum agricultural cycles, and in contracting purchases, both contracting cycles and dates are itemized as follows: · Fall-winter Cycle - The registration window period is at the discretion of the Agency of Services for Distribution and Development of Agricultural Markets (ASERCA, for its Spanish acronym), which is usually between December and March, while the fall-winter cycle harvest period takes place during May, June and July. However, corn and/or sorghum harvest could lengthen up to one month or several months, depending on the weather conditions, such as drought and frost. · Spring-summer Cycle - The registration window period is at the discretion of ASERCA; the spring-summer cycle usually takes place during the July and August and the harvest depends on each state of the country and is highly variable. During 2020 the Company did not participate in any program. As of December 31, 2019 and 2018, the Company participated in the ASERCA program as buyer of the corn and / or sorghum crops, for which the Company had to prove that a risk management instrument was maintained against market price fluctuations. Based on the foregoing, the Company entered into “put” options with maturities in March 2020 and 2019, July, September and December 2020, 2019 and 2018, with companies listed on the Chicago Mercantile Exchange. As of December 2019, and 2018, the gain on valuation is $574 (30 thousand dollars) and $217 (11 thousand dollars), respectively. As of December 31, 2020 and 2018, the Company did not receive any subsidy. During 2019 there is a subsidy of $50,730 by ASERCA for the purchase of hedging "puts" to the consumer. The Company participated in the "Agriculture by Contract" program with ASERCA, where contracts for the purchase of "put" options are registered with companies listed on the Chicago Mercantile Exchange and the benefit of this program is the recovery of the breach of Call hedge purchased, in turn, by the producer with ASERCA. The benefit under this scheme benefit as of December 31, 2019 is $1,802. During 2020 and 2018, no benefits have been realized under this scheme. With respect to the risk in commodities that are not designated in a formal hedging relationship and to which the Company is exposed, sensitivity tests on corn and sorghum futures agreements are performed, considering different (bullish and bearish) scenarios. The results of these sensitivity analyses are presented in paragraph g) of this note. ii. Chicken price risk The Company is exposed to financial risks mainly related to changes in the price of chicken. The Company presently does not anticipate that the price of chicken will decrease to a level that represents a risk to the Company in the future; therefore, as of December 31, 2020, 2019 and 2018, it has not entered into any derivative financial instrument or other agreement for managing the risk related to a decrease in the chicken price. The Company reviews chicken prices frequently in order to evaluate the need of having a financial instrument to manage the risk of price increases. iii. Exchange risk The Company is exposed to the effects of exchange rate volatility, mainly in relation to Mexican pesos/dollars exchange rates on the Company’s assets and liabilities, including: investments in securities and derivative financial instruments hedging commodities, which are denominated in a currency other than the Company’s functional currency. In this regard, the Company has implemented a sensitivity analysis to measure the effects that currency risk may have over the assets and liabilities described. The Company protects itself from exchange rate risk through economic hedging with derivative financial instruments, which cover a percentage of its estimated exposure to exchange rate volatility in relation to projected sale and purchase transactions. All instruments entered into as economic hedges of foreign exchange risk have maturities of less than one year from the contract date. As of December 31, 2020, 2019 and 2018, the Company entered into derivative financial instrument positions as economic hedges to mitigate exchange rate risks. iv. Foreign currency position The Company has financial instrument assets and liabilities denominated in foreign currency on which there is an exposure to currency risk. Below is the foreign currency position that the Company has as of December 31, 2020, 2019 and 2018. December 31, 2020 2019 2018 Mexican Mexican Mexican Dollars Pesos Dollars Pesos Dollars Pesos Assets Cash and cash equivalents $ 479,325 9,562,534 569,569 10,759,165 384,119 7,555,616 Investment in securities at fair value through profit or loss 40,424 806,459 4,576 86,447 19,447 382,519 Investment in securities at fair value through other comprehensive income 47,003 937,715 16,716 315,761 — — Accounts receivable 2,683 53,517 2,160 40,809 252 4,950 Total assets 569,435 11,360,225 593,021 11,202,182 403,818 7,943,085 Liabilities Trade accounts payable (107,224) (2,139,115) (120,699) (2,280,003) (194,701) (3,829,765) Financial debt (39,000) (778,050) (149,878) (2,831,191) (140,186) (2,757,459) Lease liabilities (6,558) (130,828) (7,635) (144,224) — — Total Liabilities (152,782) (3,047,993) (278,212) (5,255,418) (334,887) (6,587,224) Net asset position $ 416,653 8,312,232 314,809 5,946,764 68,931 1,355,861 The Company performs a sensitivity analysis related to the potential effects of changes in exchange rates on its financial information. These results are shown in paragraph g) of this note. This analysis represent the scenarios that Management considers reasonably possible of occurring. The following is a detail of exchange rates effective during the fiscal year: Spot exchange rate at Average exchange rate December 31, 2020 2019 2018 2020 2019 2018 Dollars $ 21.49 19.25 19.23 19.95 18.89 19.67 The exchange rate at the date of issuance of the consolidated financial statements is $19.84. v. Interest rate risk The Company is exposed to fluctuations in interest rates for certain financial instruments, such as its investments in financial instruments, bank loans and debt securities. This risk is managed taking into account market conditions and the criteria of its Risk Committee and Board of Directors. Interest rate fluctuations impacted mainly bank loans by changing either their fair value (fixed rate debt) or the future cash flows (variable rate debt). Management does not have a formal policy to determine how much of the Company's exposure to interest rates should be at fixed or variable. However, at the time of obtaining new loans, management uses its judgment considering technical analyses and market forecasts to decide whether fixed or variable rate instruments would be more favorable during the terms of such instruments. To monitor this risk, the Company performs sensitivity tests at least monthly to measure the effect of the change in interest rates in the instruments described in the preceding paragraph, which are summarized in subsection g) of this note. e) Financial instruments at fair value The amounts of accounts payable and accounts receivable approximate their fair value because of their nature and short-term maturities. The table below summarizes the fair value of the financial instruments that are recognized at amortized cost, together with the carrying amount included in the consolidated statements of financial position: Liabilities recorded at Carrying Carrying Carrying amortized cost amount Fair value amount Fair value amount Fair value 2020 2019 2018 Financial debt $ 2,517,965 2,550,758 4,928,607 4,952,445 5,037,600 5,037,688 f) Fair value hierarchy The fair value of financial assets and liabilities is determined as follows: · The fair value of the financial assets and liabilities that have standard terms and conditions and are traded in active liquid markets, which are determined by reference to quoted market prices (market approach), therefore, these instruments are considered Level 1 hierarchy according to the classification of fair value hierarchy described in note 2 b). · The fair value of derivative financial instruments of the Company (commodities) is determined based on the future prices of the Chicago Stock Exchange, so these instruments are considered Level 2 hierarchy. The following table summarizes financial instruments carried at fair value: Level 1 Level 2 Level 3 Total As of December 31, 2020 Investment in securities at fair value through profit or loss $ 1,018,322 — — 1,018,322 Investment in securities at fair value through other comprehensive income 937,715 — — 937,715 Derivative financial instruments — (194,181) — (194,181) $ 1,956,037 (194,181) — 1,761,856 Level 1 Level 2 Level 3 Total As of December 31, 2019 Investment in securities at fair value through profit or loss $ 186,284 — — 186,284 Investment in securities at fair value through other comprehensive income 315,761 — — 315,761 Derivative financial instruments — 18,098 — 18,098 $ 502,045 18,098 — 520,143 Level 1 Level 2 Level 3 Total As of December 31, 2018 Investment in securities at fair value through profit or loss $ 550,068 — — 550,068 Derivative financial instruments — 6,570 — 6,570 $ 550,068 6,570 — 556,638 Information regarding the hierarchy of fair value measurements related to financial liabilities that are not recognized at fair value, but for which disclosures are required, is summarized below: Level 1 Level 2 Level 3 Total As of December 31, 2020 Financial debt - bank institutions $ — (1,059,300) — (1,059,300) Financial debt – debt securities (1,491,458) — — (1,491,458) $ (1,491,458) (1,059,300) — (2,550,758) Level 1 Level 2 Level 3 Total As of December 31, 2019 Financial debt - bank institutions $ — (3,455,810) — (3,455,810) Financial debt – debt securities (1,496,635) — — (1,496,635) $ (1,496,635) (3,455,810) — (4,952,445) Level 1 Level 2 Level 3 Total As of December 31, 2018 Financial debt - bank institutions $ — (3,536,895) — (3,536,895) Financial debt – debt securities (1,500,793) — — (1,500,793) $ (1,500,793) (3,536,895) — (5,037,688) g) Quantitative sensitivity measurements The following are sensitivity analysis for the most significant risks to which the Company is exposed as of December 31, 2020, 2019 and 2018. These analysis represent the scenarios that management believes are reasonably possible of occurring in future periods and were evaluated in accordance with the policies of the Company’s Risk Committee. i. Derivative Financial Instruments related to exchange rate and commodities risks As of December 31, 2020, the Company has taken positions on derivative financial instruments to hedge exchange rate risks and commodities. A 15% increase in the Mexican peso with respect to the U.S. dollar as of the end of 2020, 2019 and 2018 would have resulted in a valuation gain of $506,705, $16,824 and $28,767 on the fair value of the Company’s exchange rate derivative financial instruments position. On the other hand, a decrease of 15% in the aforementioned rate would have resulted in an additional valuation loss during the respective periods of $1,405,538, $31,133 and $48,429. The following table shows the Company’s sensitivity to an increase and decrease of 15% for 2020, 2019 and 2018 in the “ bushell ” price of corn and short ton price of soybeans. Effect of Increase Effect of Decrease 2020 2019 2018 2020 2019 2018 Loss (profit) for the year $ (87,711) (121,762) (2,665) $ (12,530) 100,490 105 ii. Interest rate risk As described in Note 18, the Company has financial debt denominated in pesos and dollars, which bear interest at variable rates based on TIIE and LIBOR, respectively. The following table shows the Company’s sensitivity to an increase and decrease of 50 basis points for 2020, 2019 and 2018, in the variable rates to which the Company is exposed. Effect of Increase Effect of Decrease 2020 2019 2018 2020 2019 2018 Loss (profit) for the year $ 13,390 24,465 30,192 $ (13,390) (24,465) (30,192) iii. Exchange risk As of December 31, 2020, 2019 and 2018, the Company’s net monetary liability position in foreign currency was $ 8,312,232, $5,946,764 and $1,355,861, respectively. The following table shows the Company’s sensitivity of an increase and decrease of 30% for 2020 and 2019 and 10% for 2018, in exchange rate, which would have an effect in the result from foreign currency position. Effect of Increase Effect of Decrease 2020 2019 2018 2020 2019 2018 Loss (profit) for the year $ (2,493,673) (1,784,045) (135,586) $ 2,493,673 1,784,045 135,586 |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable, net | |
Accounts receivable, net | (9) Accounts receivable, net As of December 31, 2020, 2019 and 2018, accounts receivable are as follows: December 31, 2020 2019 2018 Trade receivables $ 2,772,418 2,595,978 2,523,950 Allowance for doubtful accounts (68,360) (72,886) (79,937) Income tax receivable 190,110 187,912 114,935 Recoverable value-added tax and other recoverable taxes 1,471,851 1,156,106 927,406 $ 4,366,019 3,867,110 3,486,354 Past-due but not impaired portfolio Below is a classification of trade accounts receivable according to their aging as of the reporting date, which has not been subject to impairment: December 31, 2020 2019 2018 Past due at 60 days 18,811 20,463 144,604 Past due by more than 60 days 98,054 47,573 17,250 $ 116,865 68,036 161,854 The Company believes that non-impaired amounts that are past-due by more than 60 days can still be collected, based on the historical behavior of payments and analysis of credit ratings of customers. Reconciliation of movements in allowance for doubtful accounts 2020 2019 2018 Balance as of January 1 $ (72,886) (79,937) (96,900) Increase in allowance (1,826) (57) (7,862) Amounts written off 6,458 7,030 24,826 Currency translation effect (106) 78 (1) Balance as of December 31, $ (68,360) (72,886) (79,937) As of December 31, 2020, 2019 and 2018 the Company has receivables in legal proceedings (receivables for which legal counsel is seeking recoverability) of $143,278, $140,304, and $142,388, respectively. To determine the recoverability of an account receivable, the Company considers any change in the credit quality of the account receivable from the date of authorization of the credit line to the end of the reference period. In addition, the Company estimates that the credit risk concentration is limited as the customer base is very large and there are no related party receivables or receivables from entities under common control. Expected credit losses Beginning in 2018, the Company recognizes expected credit losses for life for trade accounts receivable, which are estimated using a provision matrix based on the Company’s historical experience of credit losses, adjusted for factors that are specific each of the Company’s customer and debtor groups, general economic conditions and an assessment of both the current and forecast conditions at the reporting date, including the time value of money when appropriate. During 2017 the estimated credit losses were based on the incurred loss model. The expected credit losses for 2020, 2019 and 2018 in trade accounts receivable under IFRS 9 were estimated at $25,962, $50,753 and $45,823, considering the balances of the portfolio and the different customer groups of the Company. As part of the implementation analysis and once planned activities were executed, the Company decided to maintain its previously recorded estimated reserve for doubtful accounts for its subsidiaries, although such amounts were higher than the expected credit losses in 2020, 2019 and 2018. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Inventories | (10) Inventories As of December 31, 2020, 2019 and 2018, inventories are as follows: December 31, 2020 2019 2018 Raw materials and by-products $ 2,410,275 1,836,783 1,688,527 Medicine, materials and spare parts 1,110,559 877,837 903,337 Balanced feed 380,121 330,238 322,522 Processed chicken 1,575,985 1,554,115 1,548,597 Commercial eggs 55,364 56,599 52,050 Processed beef 151,402 47,954 39,709 Processed turkey 2,472 4,482 10,762 Other processed products 2,160 2,199 10,092 Total $ 5,688,338 4,710,207 4,575,596 Inventory consumption for the years ended December 31, 2020, 2019 and 2018 was $44,747,933, $39,823,395 and $40,115,184, respectively (note 23). The adjustment to the net realizable value of certain inventories during 2020, 2019 and 2018 was for $ 57,074, $ 35,328 and $ 30,242, respectively. |
Biological assets
Biological assets | 12 Months Ended |
Dec. 31, 2020 | |
Biological assets | |
Biological assets | (11) Biological assets For the years ended December 31, 2020, 2019 and 2018, biological assets are as follows: Current Non-current biological assets biological assets Total Balance as of January 1, 2020 $ 2,043,234 1,818,910 3,862,144 Increase due to purchases 686,756 797,039 1,483,795 Sales — 20,966 20,966 Net increase due to births 264,386 2,507,769 2,772,155 Production cost 35,585,551 1,877,418 37,462,969 Depreciation — (2,565,283) (2,565,283) Transfers to inventories (36,786,599) (2,507,769) (39,294,368) Other 219,340 42,480 261,820 Balance as of December 31, 2020 $ 2,012,668 1,991,530 4,000,198 Current Non-current biological assets biological assets Total Balance as of January 1, 2019 $ 2,073,526 1,721,728 3,795,254 Increase due to purchases 510,403 701,764 1,212,167 Sales — (73,409) (73,409) Net increase due to births 267,773 2,378,419 2,646,192 Production cost 32,894,675 1,761,456 34,656,131 Depreciation — (2,262,245) (2,262,245) Transfers to inventories (33,651,137) (2,378,419) (36,029,556) Other (52,003) (30,383) (82,386) Balance as of December 31, 2019 $ 2,043,237 1,818,911 3,862,148 Current Non-current biological assets biological assets Total Balance as of January 1, 2018 $ 1,942,193 1,617,503 3,559,696 Increase due to purchases 334,710 629,902 964,612 Sales — (119,297) (119,297) Net increase due to births 274,286 2,292,178 2,566,464 Production cost 33,189,920 1,729,478 34,919,398 Depreciation — (2,136,224) (2,136,224) Transfers to inventories (33,690,071) (2,292,178) (35,982,249) Other 22,488 366 22,854 Balance as of December 31, 2018 $ 2,073,526 1,721,728 3,795,254 The “Other” category includes the change in fair value of biological assets that resulted in a decrease of $31,701 in 2020, increase of $35,487 in 2019 and decrease of $22,270 in 2018. The Company is exposed to different risks relating to its biological assets: · Future excesses in the offer of poultry products and a decline in the demand growth of the chicken industry may negatively affect the Company’s results. · Increases in raw material prices and price volatility may negatively affect the Company’s margins and results. · In addition, in the case of the Company’s operations in the United States of America, the cost of corn and grain may be affected by an increase in the demand for ethanol, which may reduce the market’s available corn inventory. · Operations in Mexico and the United States of America are based on animal breeding and meat processing, which are subject to sanitary risks and natural disasters. · Hurricanes and other adverse climate conditions may result in additional inventory losses and damage to the Company’s facilities and equipment. |
Prepaid expenses and other curr
Prepaid expenses and other current assets | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid expenses and other current assets | |
Prepaid expenses and other current assets | (12) Prepaid expenses and other current assets As of December 31, 2020, 2019 and 2018, prepaid expenses and other current assets are as follows: December 31, 2020 2019 2018 Advances to suppliers of inventories $ 613,188 628,286 704,563 Prepaid expenses for services 303,345 280,950 217,074 Prepaid expenses for insurance and sureties 74,565 128,178 129,582 Other current assets 230,157 189,782 80,651 Total $ 1,221,255 1,227,196 1,131,870 |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2020 | |
Assets held for sale | |
Assets held for sale | (13) Assets held for sale As of December 31, 2020, 2019 and 2018, assets held for sale are as follows: December 31, 2020 2019 2018 Buildings $ 24,208 22,394 18,920 Land 29,563 29,563 27,310 Other 859 959 2,839 Total $ 54,630 52,916 49,068 The Company recognized gains (losses) on sales of these assets of $510, $2,311 and ($13) during 2020, 2019 and 2018, respectively. |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment. | |
Property, plant and equipment | (14) Property, plant and equipment As of December 31, 2020, 2019 and 2018, property, plant and equipment are comprised as follows: Balance as of Currency Balance as of January 1, translation December 31, Cost 2020 Additions Disposals effect 2020 Land $ 1,553,499 102,847 (5,900) 4,982 1,655,428 Buildings and construction 12,340,405 686,270 (297,490) 92,008 12,821,193 Machinery and equipment 15,866,952 1,240,779 (145,320) 154,497 17,116,908 Transportation equipment 2,111,999 462,344 (130,089) 1,380 2,445,634 Computer equipment 134,481 13,784 (244) 3,096 151,117 Furniture 190,289 21,325 (6,463) 782 205,933 Leasehold improvements 3,598 4,439 — — 8,037 Construction in progress 1,459,922 220,493 — (4,521) 1,675,894 Total $ 33,661,145 2,752,281 (585,506) 252,224 36,080,144 Balance as of Currency Balance as of January 1 Depreciation translation December 31, Accumulated depreciation 2020 for the year Disposals effect 2020 Buildings and construction $ (5,750,971) (299,865) 229,718 (15,632) (5,836,750) Machinery and equipment (8,253,772) (1,048,758) 96,589 (61,396) (9,267,337) Transportation equipment (856,429) (204,384) 96,553 (1,275) (965,535) Computer equipment (107,016) (21,721) 160 (1,610) (130,187) Furniture (136,311) (15,575) 5,863 (490) (146,513) Total $ (15,104,499) (1,590,303) 428,883 (80,403) (16,346,322) Balance as of Currency Balance as of January 1, translation December 31, Cost 2019 Additions Disposals effect 2019 Land $ 1,378,090 209,752 (30,677) (3,666) 1,553,499 Buildings and construction 11,943,476 472,095 (7,478) (67,688) 12,340,405 Machinery and equipment 15,182,044 891,008 (92,623) (113,477) 15,866,952 Transportation equipment 1,792,273 474,960 (154,116) (1,118) 2,111,999 Computer equipment 136,183 3,828 (3,257) (2,273) 134,481 Furniture 178,455 17,684 (5,295) (555) 190,289 Leasehold improvements 4,350 — (752) — 3,598 Construction in progress 1,501,697 — (38,065) (3,710) 1,459,922 Total $ 32,116,568 2,069,327 (332,263) (192,487) 33,661,145 Balance as of Currency Balance as of January 1 Depreciation translation December 31, Accumulated depreciation 2019 for the year Disposals effect 2019 Buildings and construction $ (5,536,825) (230,450) 2,199 14,105 (5,750,971) Machinery and equipment (7,505,222) (874,447) 65,136 60,761 (8,253,772) Transportation equipment (829,664) (134,708) 106,955 988 (856,429) Computer equipment (98,034) (13,635) 3,145 1,508 (107,016) Furniture (128,647) (12,151) 4,109 378 (136,311) Total $ (14,098,392) (1,265,391) 181,544 77,740 (15,104,499) Balance as of Currency Balance as of January 1, translation December 31, Cost 2018 Additions Disposals effect 2018 Land $ 1,353,643 24,400 — 47 1,378,090 Buildings and construction 11,440,284 513,033 (11,546) 1,705 11,943,476 Machinery and equipment 14,021,881 1,255,026 (96,727) 1,864 15,182,044 Transportation equipment 1,773,153 101,645 (82,543) 18 1,792,273 Computer equipment 125,991 10,441 (318) 69 136,183 Furniture 169,752 12,985 (4,258) (24) 178,455 Leasehold improvements 2,661 1,689 — — 4,350 Construction in progress 1,435,147 63,364 — 3,186 1,501,697 Total $ 30,322,512 1,982,583 (195,392) 6,865 32,116,568 Balance as of Currency Balance as of January 1 Depreciation translation December 31, Accumulated depreciation 2018 for the year Disposals effect 2018 Buildings and construction $ (5,323,314) (221,565) 9,315 (1,261) (5,536,825) Machinery and equipment (6,706,824) (857,930) 66,578 (7,046) (7,505,222) Transportation equipment (771,406) (118,439) 60,276 (95) (829,664) Computer equipment (81,504) (16,598) 305 (237) (98,034) Furniture (119,423) (12,385) 3,218 (57) (128,647) Total $ (13,002,471) (1,226,917) 139,692 (8,696) (14,098,392) December 31, Carrying amounts, net 2020 2019 2018 Land $ 1,655,428 1,553,499 1,378,090 Buildings and construction 6,984,443 6,589,434 6,406,651 Machinery and equipment 7,849,571 7,613,180 7,676,822 Transportation equipment 1,480,099 1,255,570 962,609 Computer equipment 20,930 27,465 38,149 Furniture 59,420 53,978 49,808 Leasehold improvements 8,037 3,598 4,350 Construction in progress 1,675,894 1,459,922 1,501,697 Total $ 19,733,822 18,556,646 18,018,176 Additions of property, plant and equipment in 2020 include assets acquired through business combinations of $383,680 that consist of the following: Land $ 62,050 Buildings and construction 231,264 Machinery and equipment 73,332 Transportation equipment 4,825 Computer equipment 1,761 Furniture 1,115 Construction in progress 9,333 Total $ 383,680 Depreciation expense during the years ended December 31, 2020, 2019 and 2018 was $1,590,303, $1,265,391 and $1,226,917, respectively, which was charged to cost of sales and operating expenses. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill. | |
Goodwill | (15) Goodwill 2020 2019 2018 Balances at beginning of the year $ 1,578,994 1,631,771 1,631,094 Foreign currency effects 71,722 (52,777) 677 Balances at end of year $ 1,650,716 1,578,994 1,631,771 The recoverable amount of the cash-generating unit is determined based on a calculation of its value in use, which uses projections of the estimated cash flows based on financial budgets approved by management for a determined projection period, which are discounted using an annual discount rate. Projections of the cash flows during the budgeted period are based on sales projections which include increases due to inflation, as well as the projection of expected gross margins and operating margins during the budgeted period. Cash flows that exceed such period are extrapolated using an annual stable growth rate, which is the long-term weighted average growth rate for the market in which the cash-generating unit operates. The assumptions and balances of each cash-generating unit are as follows: 2020 Annual Annual Final Projection discount growth balance of period rate rate Cash-generating unit the year (years) (%) (%) Bachoco - Istmo and Peninsula regions $ 212,833 5 12.95 % 3.00 % Campi 88,015 5 12.95 % 3.00 % Ok Farms - Morris Hatchery, Inc. Arkansas 66,162 5 3.43 % 0.00 % Ok Farms - Morris Hatchery Inc. Georgia 111,715 5 3.43 % 0.00 % Ok Foods- Albertville Quality Foods, Inc. 1,171,991 5 3.43 % 0.00 % $ 1,650,716 2019 Annual Annual Final Projection discount growth balance of period rate rate Cash-generating unit the year (years) (%) (%) Bachoco - Istmo and Peninsula regions $ 212,833 5 12.84 % 3.00 % Campi 88,015 5 12.84 % 3.00 % Ok Farms - Morris Hatchery, Inc. Arkansas 62,647 5 5.22 % 0.00 % Ok Farms - Morris Hatchery Inc. Georgia 105,780 5 5.22 % 0.00 % Ok Foods- Albertville Quality Foods, Inc. 1,109,719 5 5.22 % 0.00 % $ 1,578,994 2018 Annual Annual Final Projection discount growth balance of period rate rate Cash-generating unit the year (years) (%) (%) Bachoco - Istmo and Peninsula regions $ 212,833 5 13.17 % 3.00 % Campi 88,015 5 13.17 % 3.00 % Ok Farms - Morris Hatchery, Inc. Arkansas 65,233 5 5.87 % 0.00 % Ok Farms- Morris Hatchery Inc. Georgia 110,147 5 5.87 % 0.00 % Ok Foods- Albertville Quality Foods, Inc. 1,155,543 5 5.87 % 0.00 % $ 1,631,771 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets | |
Intangible assets | (16) Intangible assets The balances as of December 31, 2020, 2019 and 2018 for $753,224, $772,640 and $949,355 are mainly comprised of trade names and customer relationships derived from the purchase through its subsidiary OK Foods, Inc. Customer relationships are generally amortized over 15 years based on the pattern of revenue expected to be generated from the use of the asset. Indefinite life intangible assets are initially recorded at their fair value and are not amortized, but they are reviewed for impairment at least annually or more frequently if impairment indicators arise. During 2019 and 2018, the Company ended a relationship with clients for which an intangible asset was recognized. The Company does not expect to do future business with those clients resulting in an impairment in intangible assets from customer relationships of $73,733 and $6,139 in 2019 and 2018, respectively, which was charged to the results of the fiscal year as other expenses. During 2018 the Company decided to discontinue a product line that it was no longer producing and did not have any success in selling the trademarks associated with that line. Accordingly, an impairment charge of $11,756 in trade names was recognized. The remaining intangible assets were evaluated internally and an independent external impairment study was performed to determine the fair value. This study resulted in impairment charges of $3,535 in the trade names in addition to the amounts listed above. Therefore, total impairment charges recognized during 2018 for intangible assets were $21,430. a) Intangible assets consist of the following: 2020 2019 2018 Amortizable intangible assets Customer relationships $ 941,582 891,553 1,020,500 Accumulated amortization (219,702) (74,859) (95,911) Impairment loss — (73,733) (6,139) Total net amortizable intangible assets 721,880 742,961 918,450 Trade names not subject to amortization 31,344 29,679 46,196 Impairment loss — — (15,291) Total intangible assets $ 753,224 772,640 949,355 b) Reconciliation between the carrying amounts at the beginning and at the end of the intangible assets Trade names not subject Customer to relationships amortization Total Carrying amounts Balance as of January 1, 2020 $ 817,820 29,679 847,499 Additions — — — Currency translation effect 123,762 1,665 125,427 Balance as of December 31, 2020 941,582 31,344 972,926 Accumulated amortization Balance as of January 1, 2020 (74,859) — (74,859) Additions — — — Amortization expense (144,843) — (144,843) Balance as of December 31, 2020 (219,702) — (219,702) Total intangible assets $ 721,880 31,344 753,224 Trade names not subject Customer to relationships amortization Total Carrying amounts Balance as of January 1, 2019 $ 1,014,361 30,905 1,045,266 Additions — — — Impairment loss (73,733) — (73,733) Currency translation effect (122,808) (1,226) (124,034) Balance as of December 31, 2019 817,820 29,679 847,499 Accumulated amortization Balance as of January 1, 2019 (95,911) — (95,911) Additions — — — Amortization expense 21,052 — 21,052 Balance as of December 31, 2019 (74,859) — (74,859) Total intangible assets $ 742,961 29,679 772,640 |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2020 | |
Other non-current assets. | |
Other non-current assets | (17) Other non-current assets Other non-current assets consist of the following: December 31, 2020 2019 2018 Advances for purchase of property, plant and equipment $ 472,828 495,015 326,676 Investments in life insurance (note 3 (l)) 71,431 65,545 66,177 Security deposits 23,476 21,545 20,745 Other long-term receivable 193,689 173,488 171,222 Intangible assets in process 2,996 2,841 26,898 Other 54,502 51,614 54,024 Total non-current assets $ 818,922 810,048 665,742 |
Financial debt
Financial debt | 12 Months Ended |
Dec. 31, 2020 | |
Financial debt | |
Financial debt | (18) Financial debt a) Short-term financial debt is as follows: December 31, 2020 2019 2018 Loan denominated in pesos, maturing in January 2019, at TIIE (1) FIRA (2) rate plus 1.25 percentage points. $ — — 100,306 Loan in the amount of 140,000 thousand dollars, maturing in February 2019, at fixed rate 2.29 percentage points. — — 2,757,460 Loan denominated in pesos, maturing in February 2019, at TIIE (1) rate plus 1.25 percentage points. — — 300,028 Loan denominated in pesos, maturing in March 2019, at TIIE (1) rate plus 1.25 percentage points. — — 250,023 Loan denominated in pesos, maturing in May 2019, at TIIE (1) rate plus 0.40 percentage points. — — 20,003 Loan in the amount of 70,000 thousand dollars, maturing in January 2020, at LIBOR (3) rate plus 0.62 percentage points. — 1,322,176 — Loan denominated in pesos, maturing in January 2020, at TIIE (1) rate plus 0.50 percentage points. — 50,000 — Loan in the amount of 80,000 thousand dollars, maturing in February 2020, at LIBOR6 (4) rate plus 0.35 percentage points. — 1,509,015 — Loan denominated in pesos, maturing in February 2020, at TIIE (1) rate plus 1.05 percentage points. — 449,572 — Loan denominated in pesos, maturing in May 2020, at TIIE (1) rate plus 1.05 percentage points. — 99,678 — Loan denominated in pesos, maturing in June 2020, at TIIE (1) rate plus 0.50 percentage points. — 9,958 — Loan in the amount of 39,000 thousand dollars, maturing in January 2021, at LIBOR (3) rate plus 0.60 percentage points. 778,050 — — Loan denominated in pesos, maturing in February 2021, at TIIE (1) rate plus 0.90 percentage points. 70,011 — — Total short-term debt $ 848,061 3,440,399 3,427,820 The annual weighted average interest rate of short-term loans denominated in pesos for 2020, 2019 and 2018 was 6.71%, 9.24% and 9. 14%, respectively. The average interest rate for loans outstanding as of December 31, 2020, 2019 and 2018 was 5.50%, 8.77% and 9.15%, respectively. The annual weighted average interest rate of short-term loans denominated in dollars for the years 2020, 2019 and 2018 was 1.61%, 2.36% and 2.26%, respectively. The average interest rate for loans outstanding as of December 31, 2020, 2019 and 2018 was 0.75%, 2.37% and 2.29%, respectively. (1) TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate (2) FIRA (for its acronym in Spanish) = Agriculture Trust Funds (3) LIBOR= London Interbank Offered Rate (4) LIBOR6= London InterBank Offered Rate (6 months) b) Long-ter m debt consists of the following: December 31, 2020 2019 2018 Loan denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.25 percentage points. $ — — 53,980 Loan denominated in pesos, maturing in 2023, at TIIE (1) FIRA (2) plus 0 percentage points. — — 55,007 Loan denominated in pesos, maturing in May 2021, at TIIE (1) plus 1.05 percentage points. 209,499 — — Debt securities (subsection (d) of this note) 1,460,405 1,488,208 1,500,793 Total 1,669,904 1,488,208 1,609,780 Less current maturities (209,499) — (64,973) Long-term debt, excluding current maturities $ 1,460,405 1,488,208 1,544,807 The annual weighted average interest rate on long-term debt for 2020, 2019 and 2018 was 6.49%, 8.53% and 8.42%, respectively. The average rate for outstanding loans as of December 31, 2020, 2019 and 2018 was 4.91%, 8.26% and 8.46%, respectively. (1) TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate (2) FIRA (for its acronym in Spanish) = Trust Established in Relation to Agriculture During 2020 and 2019 the Company made early payments on its long-term debt of $17,877 and $51,000, during 2018 the Company did not make early payments on its long-term debt. As of December 31, 2020, 2019 and 2018, unused lines of credit amounted to $6,919,625, $3,325,981 and $5,723,011, respectively. In all such years, the Company did not pay any fee for undrawn balances. c) Maturities of long-term debt, excluding current maturities, as of December 31, 2020, are as follows: Year Amount 2022 $ 1,460,405 The amount of future unearned interest is $ 122,722. Interest expense on total loans during the years ended December 31, 2020, 2019 and 2018, amounted to $159,169, $250,820 and $185,913, respectively, (note 29). Certain bank loans establish certain affirmative and negative covenants, as well as the requirement to maintain certain financial ratios, which have been met as of December 31, 2020, among which are: a) Provide financial information at the request of the bank. b) Not to contract liabilities with financial cost or grant loans that may affect payment obligations. c) Notify the bank regarding the existence of legal issues that could substantially affect the financial situation of the Company. d) Not to perform substantial changes to the nature of the business, or the administrative structure. e) Not to merge, consolidate, separate, settle or dissolve except for those mergers in which the Company or surety are the merging company and do not constitute a change in control of the entities of the group to which the Company or the surety belong at the date of the agreement. d) Issuance of debt securities On August 25, 2017, a second issuance of debt securities was carried out for a total amount of $1,500,000 with ticker symbol: “BACHOCO 17” for a term of 1,820 days, equivalent to 65 periods of 28 days, approximately five years, with 15,000,000 debt securities and a par value of $100 pesos per certificate. From the date of issuance, and while the debt securities have not been paid, they will accrue annual gross interest on their face amount, at an annual interest rate, which is calculated by adding 0.31 percentage points at the 28‑day TIIE, and in the event the 28‑day TIIE is not published, at the nearest term published by the Bank of Mexico. The debt issue that expired in 2017 accrued a gross interest on its nominal value, at an annual interest rate, which was calculated by adding 0.60 percentage points to the 28‑day TIIE. The payment of the debt securities is carried out at the expiration of the contractual term of each issuance. Direct costs arising from debt issuance or contract are deferred and paid as part of financial expense using the effective interest rate through the term of each transaction. Such costs include commissions and professional fees. (1) UDIS = Investment units Derived from the issuance of debt securities, the Company is subject to certain requirements, affirmative and negative covenants, with which they comply as of December 31, 2020. e) Reconciliation of liabilities arising from financing debt December 31, 2020 2019 2018 Balance as of January 1 $ 4,928,607 5,037,600 5,249,024 Changes that represent cash flows Proceeds from borrowings 4,030,700 4,839,000 3,370,400 Principal payment on loans (6,762,222) (4,808,163) (3,588,067) Changes that do not represent cash flows Other 320,880 (139,830) 6,243 Balance as of December 31 $ 2,517,965 4,928,607 5,037,600 |
Trade accounts and other accoun
Trade accounts and other accounts payable | 12 Months Ended |
Dec. 31, 2020 | |
Trade accounts and other accounts payable | |
Trade accounts and other accounts payable | (19) Trade accounts and other accounts payable December 31, 2020 2019 2018 Trade payables $ 4,516,424 3,972,460 3,996,014 Sundry creditors and expenses payable 532,679 518,711 597,330 Provisions 24,099 64,154 103,494 Statutory employee profit sharing 62,075 86,710 68,432 Retained payroll taxes and other local taxes 375,086 275,214 259,828 Direct employee benefits 232,083 213,345 160,431 Interest payable 10,575 28,060 10,728 Others 116 173 90 $ 5,753,137 5,158,827 5,196,347 Note 8 discloses the Company’s exposure to the exchange and liquidity risks related to trade accounts payable and other accounts payable. In December 2009, the National Water Commission (CNA, for its Spanish acronym) imposed credits and fines to the Company for supposed infractions made by the Company in water administration for exploitation of livestock. The Company has recognized a provision for the amount that it expects to be probable to pay. Bachoco USA, LLC. is involved in claims with the United States of America Department of Labor and the Unites State Immigration and Customs Enforcement , and various other matters related to its business, including workers’ payment claims and environmental issues. As of December 31, 2020 and 2019 the Company has not recorded any provision. During 2018 the Company recorded provisions of $39,340 (2,000 thousand dollars) for estimated probable payments, which were reversed in 2019 based on Management's estimate of risk of loss. |
Transactions and balances with
Transactions and balances with related parties | 12 Months Ended |
Dec. 31, 2020 | |
Transactions and balances with related parties | |
Transactions and balances with related parties | (20) Transactions and balances with related parties a) Transactions with management Compensation The following table shows the compensation paid to the directors and executives for services provided in their respective positions for the years ended December 31, 2020, 2019 and 2018: December 31, 2020 2019 2018 Compensation $ 57,429 52,635 61,189 b) Transactions with other related parties Below is a summary of the Company’s transactions and balances with other related parties, which are comprised of affiliates that are under common control: i. Revenues and balances receivable to related parties Transaction value Balance as of December 31, December 31, 2020 2019 2018 2020 2019 2018 Sales of products to: Vimifos, S.A. de C.V. $ 4,055 9,323 8,812 $ 400 785 99 Frescopack, S.A. de C.V. 53 58 — — 58 — Taxis Aéreos del Noroeste, S.A. de C.V. 31 42 28 — — — Alimentos Kowi, S.A. de C.V. 832 934 — 286 337 — Sonora Agropecuaria, S.A. DE C.V. 123,756 178,624 — — 12,494 — $ 128,727 188,981 8,840 $ 686 13,674 99 ii. Expenses and balances payable to related parties Transaction value Balance as of December 31, December 31, 2020 2019 2018 2020 2019 2018 Purchases of food, raw materials and packing supplies Vimifos, S.A. de C.V. $ 411,129 582,458 557,490 $ 58,836 41,399 103,371 Frescopack, S.A. de C.V. 143,849 148,210 193,396 9,554 26,233 28,951 Pulmex 2000, S.A. de C.V. 21,414 20,667 37,794 2,407 3,976 5,227 Qualyplast, S.A. de C.V. 1,184 244 230 251 — 41 Alimentos Kowi, S.A. de C.V. — 907 — — 2 — Sonora Agropecuaria, S.A. de C.V. 4,425 3,374 — — — — Purchases of vehicles, tires and spare parts Maquinaria Agrícola, S.A. de C.V. $ — — — 5 5 64 Llantas y Accesorios, S.A. de C.V. 42,554 38,947 38,581 6,378 4,213 3,374 Autos y Accesorios, S.A. de C.V. 48,129 10,776 18,776 339 124 4,712 Autos y Tractores de Culiacán, S.A. de C.V. 42,857 11,519 17,671 336 149 1,486 Camiones y Tractocamiones de Sonora, S.A. de C.V. 91,098 270,968 19,490 2,636 149 216 Agencia MX-5, S.A de C.V. 63 904 47 6 9 7 Alfonso R. Bours, S.A. de C.V. 2,651 187 307 50 49 40 Cajeme Motors S.A. de C.V. 287 183 30 44 89 5 Airplane leasing expenses Taxis Aéreos del Noroeste, S.A. de C.V. $ — 24,971 8,368 — 307 20 $ 80,842 76,704 147,514 As of December 31, 2020, 2019 and 2018, balances payable to related parties correspond to current accounts denominated in pesos that bear no interest and are payable on a short-term basis. |
Income Tax
Income Tax | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax | |
Income Tax | (21) Income Tax Under the tax legislation in Mexico and the United States of America in effect through December 31, 2020, entities are subject to pay income tax (ISR, by its Spanish acronym). a) ISR The Company and each of its subsidiaries file separate income tax returns (including its foreign subsidiary, which files income tax returns in the United States of America, based on its fiscal year ending in April of every year). For the years ended December 31, 2020, 2019 and 2018, the applicable rate under the general tax regime in Mexico is 30%; this rate will be applicable in future years as well. The applicable rate during 2020, 2019 and 2018 for the Company’s US subsidiary is 21% (plus state taxes). As of December 31, 2020, 2019 and 2018, BSACV , the Company’s primary operating subsidiary is subject to the agriculture, cattle-raising, forestry and fishing regime of the ISR law, which is applicable to entities exclusively dedicated to such activities. The ISR Law establishes that such activities are exclusive when no more than 10% of an entity’s total revenues are generated from something other than those activities or from industrialized products. b) Tax charged to profit and loss For the years ended December 31, 2020, 2019 and 2018, the income tax (benefit) expense included in profit and loss is as follows: December 31 2020 2019 2018 Operation in Mexico: Current ISR $ 1,321,021 1,066,160 1,242,553 Deferred ISR 341,131 324,415 (33,718) 1,662,152 1,390,575 1,208,835 Foreign operations: Current ISR 33 (1,859) 4,294 Deferred ISR (450,574) (263,738) (58,151) Total ISR expense $ 1,211,611 1,124,978 1,154,978 Total income tax expense The income tax expense attributable to income before income taxes differed from the amount computed by applying the ISR rate of 30% in 2020, 2019 and 2018 due to the items listed below: December 31, 2020 2019 2018 ISR Percentage ISR Percentage ISR Percentage Expected expense $ 1,555,111 30 % $ 1,292,925 30 % $ 1,354,965 30 % Increase (decrease) resulting from: Net effects of inflation (196,379) (4) % (168,822) (4) % (276,758) (6) % (Non-taxable income) Non-deductible expenses 7,641 0 % 11,027 0 % 16,648 0 % Effect of rate difference of foreign subsidiary 20,907 0 % 48,658 1 % (16,572) (0) % Effect from non-deductible employee benefits 115,496 2 % 70,202 2 % 90,820 2 % Effect of tax incentive (69,920) (1) % (60,861) (1) % — — Effect of carryback tax losses in the United States of America (1) (190,144) (4) % — — — — Bargain purchase gain of domestic business acquisition (27,267) (0) % — — — — Other (3,834) (0) % (68,151) (2) % (14,126) (0) % Income tax expense $ 1,211,611 23 % $ 1,124,978 26 % $ 1,154,978 26 % (1) On March 27, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act was enacted. The most significant provisions of the CARES Act that will materially affect the Company’s accounting for income taxes includes a five-year carryback allowance for taxable net operating losses generated in tax year 2018 through 2020 and a technical correction to the Tax Cuts and Jobs Act, enacted on December 22, 2017, that disallowed the carrying back of taxable net operating losses to offset prior years’ taxable income. c) Deferred income tax The Company and each one of its subsidiaries determine the deferred taxes that are reflected at a consolidated level on stand-alone basis. BSACV , the main operating subsidiary of the Company, is subject to tax payment under the agriculture, cattle-raising, forestry and fishing regime, in which the tax base for ISR is determined on collected revenues minus paid deductions. The tax effects of temporary differences, tax losses and tax credits that give rise to significant portions of deferred tax assets and liabilities as of December 31, 2020, 2019 and 2018 are detailed below: December 31, 2020 2019 2018 Deferred tax assets Accounts payable $ 2,207 2,481 27,738 Employee benefits 199,087 164,019 53,398 PTU payable 16,690 26,020 20,536 Tax loss carryforwards 60,354 56,163 — Inventories — 616 — Property, plant and equipment 1,696 1,113 — Other provisions 648 — 2,205 Total deferred tax assets 280,682 250,412 103,877 Deferred tax liabilities Property, plant and equipment — — 51 Prepaid expenses 2,872 4,593 — Other provisions 7,655 547 — Derivative financial instruments 8,221 — — Total deferred tax liabilities 18,748 5,140 51 Net deferred tax assets $ 261,934 245,272 103,826 December 31, 2020 2019 2018 Deferred tax assets Accounts payable $ 1,090,676 1,097,422 1,483,275 PTU payable 1,037 Tax loss carryforwards 606,935 271,772 59,883 Goodwill — — 3,879 Other provisions 144,861 63,314 76,025 Total deferred tax assets 1,843,509 1,432,508 1,623,062 Deferred tax liabilities Inventories 1,820,929 1,696,300 1,639,156 Accounts receivable 497,655 445,198 366,825 Property, plant and equipment 2,915,222 2,667,824 2,503,172 Prepaid expenses 286,844 332,392 647,480 Goodwill 5,147 584 — Intangible assets 188,919 190,900 233,749 Derivative financial instruments 3,773 3,803 — Total deferred tax liabilities 5,718,489 5,337,001 5,390,382 Net deferred tax liability $ 3,874,980 3,904,493 3,767,320 d) Unrecognized deferred tax liabilities Deferred taxes related to investments in subsidiaries have not been recognized as the Company is able to control the moment of the reversal of the temporary difference, and the reversal is not expected to take place in the foreseeable future. Deferred income tax on investments in subsidiaries not recognized as of December 31, 2020, 2019 and 2018 amounts to $1,802,451, $1,919,720 and $2,049,327, respectively. The Company’s policy has been to distribute accounting profits when the respective taxes have been paid and in the case of foreign profits, such tax may be duly credited in Mexico. e) Movement in temporary differences during the fiscal year Acquired or/ Recognized Recognized January 1, in profit directly in December 31, 2020 and loss equity 2020 Accounts payable $ (1,099,903) 8,163 (1,143) (1,092,883) Employee benefits (164,060) (35,027) — (199,087) PTU payable (26,020) 8,293 — (17,727) Tax loss carryforwards (327,935) (314,628) (24,726) (667,289) Interest carryforwards — 1,551 (1,551) — Other provisions (62,767) (74,804) (283) (137,854) Goodwill 584 4,371 192 5,147 Intangible assets 190,900 (12,248) 10,267 188,919 Inventories 1,695,684 114,135 11,110 1,820,929 Accounts receivable 445,198 52,457 — 497,655 Property, plant and equipment 2,666,752 177,372 69,402 2,913,526 Prepaid expenses 336,985 (47,269) — 289,716 Derivative financial instruments 3,803 8,191 — 11,994 Net deferred tax liability $ 3,659,221 (109,443) 63,268 3,613,046 Acquired or/ Recognized Recognized January 1, in profit directly in December 31, 2019 and loss equity 2019 Accounts payable $ (1,511,013) 410,152 958 (1,099,903) Employee benefits (53,398) (197,728) 87,107 (164,060) PTU payable (20,536) (5,484) — (26,020) Tax loss carryforwards (59,883) (273,479) 5,427 (327,935) Other provisions (78,230) 15,436 27 (62,767) Goodwill (3,879) 4,391 72 584 Intangible assets 233,749 (34,220) (8,629) 190,900 Inventories 1,639,156 64,120 (7,592) 1,695,684 Accounts receivable 366,825 78,373 — 445,198 Property, plant and equipment 2,503,223 184,454 (20,966) 2,666,752 Prepaid expenses 647,480 (310,495) — 336,985 Derivative financial instruments — 3,803 — 3,803 Net deferred tax liability $ 3,663,494 (60,677) 56,404 3,659,221 Acquired or/ Recognized Recognized January 1, in profit directly in December 31, 2018 and loss equity 2018 Accounts payable $ (1,187,175) (323,784) (54) (1,511,013) Employee benefits (45,519) (1,317) (6,562) (53,398) PTU payable (12,917) (7,619) — (20,536) Tax loss carryforwards (22,013) (37,004) (866) (59,883) Other provisions (61,045) (17,240) 55 (78,230) Goodwill (7,562) 3,604 79 (3,879) Intangible assets 253,898 (19,825) (324) 233,749 Inventories 1,601,498 37,319 339 1,639,156 Accounts receivable 421,191 (54,366) — 366,825 Property, plant and equipment 2,428,417 74,819 (13) 2,503,223 Prepaid expenses 393,936 253,544 — 647,480 Net deferred tax liability $ 3,762,709 (91,869) (7,346) 3,663,494 f) Tax on assets and tax loss carryforwards As of December 31, 2020, tax loss carryforwards expire as shown below. Amounts are indexed for inflation as permitted by Mexican income tax law: Amount as of December 31, 2020 Tax loss Year of expiration / Year carryforwards maturity 2017 $ 59,033 2018 199,632 2019 1,250,964 2020 1,535,909 $ 3,045,538 |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefits | |
Employee benefits | (22) Employee benefits a) Employee benefits in Mexico Defined contribution plans The Company has a defined contribution plan which receives contributions from both the employees and the Company. Employees can make contributions from 1% to 5% of their wage and the Company is obligated to make contributions as follows: i) 20% of employee contributions for employees with 1 - 4.99 years of service, ii) 40% of employee contributions for employees with 5 – 9.99 years of service, and iii) 100% matching contributions for employees with 10 or more years of service or when the employee reaches 40 years of age, regardless of the years of service. When an employee retires from the Company he/she has the right to receive the contribution he/she has made to the plan, and i) if the employee retires between the first and the 4.99 year of services, he/she does not have the right to receive the contribution made by the Company, ii) if he/she retires on the fifth year of services he/she has the right to receive 50% of the contributions made by the Company and, for each additional service year, the employee has the right to receive an additional 10% of the contributions made by the Company. During 2020, 2019 and 2018 there were not the expenses for paid contributions to defined contribution plans, other than those mandated by Mexican law. The Company makes payments equivalent to 2% of the integrated wage of its workers to the defined contribution plan for the retirement saving fund system established by Mexican law. The expense for this concept was $72,121, $66,134 and $62,028, in 2020, 2019 and 2018, respectively. Defined benefits plan The Company has a defined benefit pension plan covering non-unionized personnel in Mexico. The benefits are based on the age, years of service and the employee’s payment. The retirement age is 65 years, with a minimum of 10 years of services, and there is an option for an anticipated retirement option, in certain circumstances, at 55 years of age. The Company’s policy to fund the pension plan is to make contributions up to the maximum amount that can be deducted for ISR. According to the Mexican Federal Labor Law, the Company is obligated to pay a seniority premium as a retirement benefit if an employee retires and has of least 15 years of services, which consists of a sole payment of 12 days for each worked year based on the last wage, limited to the two minimal wages established by law. The Company recognizes constructive obligations from past practices. Such constructive obligations are associated with service time the employee has worked for the Company. The payment of this benefit is disbursed in a single installment at the time the employee voluntarily stops working for the Company. As of 2018 and in future periods, this obligation is only recognized for directors and executives. The plans in Mexico expose the Company to actuarial risks such as interest rate risk, longevity risk and salary risk: Interest risk A decrease in the interest rate for the governmental bonds will increase the plan’s liability. Longevity risk The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability. Salary risk The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan’s liability. The projected net liability presented on the consolidated statements of financial position is as follows: December 31, 2020 2019 2018 Present value of unfunded obligations $ 592,294 487,810 302,818 Present value of funded obligations 163,651 148,392 197,254 Total present value of benefit obligations ("PBO") 755,945 636,202 500,072 Plan assets at fair value (163,651) (148,392) (197,254) Projected liability, net $ 592,294 487,810 302,818 i. Composition and return of plan assets Actual return of the plan assets Composition of the plan assets 2020 2019 2018 2020 2019 2018 Fixed income securities 11.28 % 12.67 % 5.10 % 63 % 62 % 67 % Variable income securities 9.47 % 15.65 % (10.95) % 37 % 38 % 33 % Total 100 % 100 % 100 % ii. Movements in the present value of PBO 2020 2019 2018 PBO as of January 1 $ 636,202 500,072 462,986 Benefits paid by the plan (78,149) (54,932) (38,393) Service cost 38,987 30,108 28,084 Interest cost 53,343 50,421 41,410 Actuarial losses recognized in other comprehensive income 105,562 110,533 494 Past service cost – plan amendments — — 5,491 PBO as of December 31 $ 755,945 636,202 500,072 iii. Movements in the fair value of plan assets 2020 2019 2018 Plan assets at fair value as of January 1 $ 148,392 197,247 259,245 Transfer of assets to fund defined contribution benefit plan — (39,079) (38,327) Benefits paid by the plan — (32,027) (16,772) Expected return on plan assets 13,678 19,615 23,244 Actuarial losses in other comprehensive income 1,581 2,636 (30,136) Fair value of plan assets as of December 31 $ 163,651 148,392 197,254 iv. Expense recognized in profit and loss 2020 2019 2018 Current service cost $ 38,987 30,108 28,084 Interest cost, net 39,665 30,806 18,166 $ 78,652 60,914 46,250 v. Actuarial gains and (losses) 2020 2019 2018 Amount accumulated as of January, 1 $ (279,144) (171,247) (140,617) Recognized during the year (103,982) (107,897) (30,630) Amount accumulated as of December, 31 $ (383,126) (279,144) (171,247) vi. Actuarial assumptions Primary actuarial assumptions at the consolidated financial statements date (expressed as weighted averages) are as follows. 2020 2019 2018 Discount rate as of December, 31 7.75 % 8.75 % 10.50 % Rate for future salary increases 4.50 % 4.50 % 4.50 % Social security wage increase rate 3.50 % 3.50 % 3.50 % The assumptions related to mortality are based on statistics and experiences over the Mexican population. The average expected life of an individual that retires at 65 years of age is 17.13 years for men and 10.92 years for women (Experience Chart of Demographic Mortality for Active EMSSA 1997). vii. Historical information December 31, 2020 2019 2018 Present value of defined benefit obligation $ 755,945 636,202 500,072 Plan assets at fair value (163,651) (148,392) (197,254) Plan deficit $ 592,294 487,810 302,818 Experience adjustments arising from plan liabilities $ (105,562) (110,533) (494) Experience adjustments arising from plan assets $ 1,581 2,636 (30,136) viii. Sensitivity analysis of the defined benefits obligations as of December 31, 2020, 2019 and 2018 Pension Seniority Constructive Total 2020 plan premium obligation PBO Discount rate 7.75% $ (531,251) (203,282) (21,412) (755,945) Rate increase (+ 1%) $ (511,884) (200,058) (21,209) (733,151) Rate decrease (- 1%) $ (554,180) (206,605) (21,619) (782,404) Pension Seniority Constructive Total 2019 plan premium obligation PBO Discount rate 8.75% $ (442,133) (173,401) (20,668) (636,202) Rate increase (+ 1%) $ (434,134) (170,812) (20,490) (625,436) Rate decrease (- 1%) $ (450,391) (176,067) (20,852) (647,310) Pension Seniority Constructive Total 2018 plan premium obligation PBO Discount rate 10.50% $ (358,635) (119,973) (21,464) (500,072) Rate increase (+ 1%) $ (313,585) (109,872) (20,258) (443,715) Rate decrease (- 1%) $ (364,699) (121,572) (21,649) (507,920) ix. Expected cash flows Total 2021‑2031 $ 640,387 x. Future contributions to the defined benefits plan The Company does not expect to make contributions to the defined benefit plans in the following financial year. b) Foreign employee benefits Defined contribution plans Bachoco USA, LLC. (foreign subsidiary) has a defined contribution retirement 401(k) plan, covering all employees who meet certain eligibility requirements. The Company contributes to the plan at the rate of 50% of employee’s contributions up to a maximum of 2% of the individual employee’s contribution. The cumulative contribution expense for this plan was $16,418, $14,919 and $12,999 for the year ended December 31, 2020, 2019 and 2018, respectively. Equity-based compensation Bachoco USA, LLC. has a deferred payment agreement with certain key employees. Amounts payable under this plan are vested after 10 years from the date of the agreement. The benefit value of each unit is equal to the increase in the initial book value from the date of the agreement to the conclusion of the vesting period. Under the agreement, 26,000 units were outstanding as of December 31, 2020, 2019 and 2018, all of which were fully vested. The total liability under this plan totaled $44,994, $32,874 and $20,922 as of December 31, 2020, 2019 and 2018, respectively. The expense recognized for this plan for the year ended December 31, 2020 and 2019 was $4,678 and $1,772, respectively. During 2018 no expense was recognized for this concept. c) PTU Industrias Bachoco, S.A.B de C.V. and BSACV has no employees. Each of the subsidiaries of the Company that has employees in Mexico is required under Mexican laws to pay employees, in addition to their payment and benefits, statutory employee profit sharing in an aggregate amount equal to 10% of each subsidiary’s taxable income. The accrued liability as of December 31, 2020, 2019 and 2018 is shown in note 19, Trade payable and other accounts payable. |
Costs and expenses by nature
Costs and expenses by nature | 12 Months Ended |
Dec. 31, 2020 | |
Costs and expenses by nature | |
Costs and expenses by nature | (23) Costs and expenses by nature 2020 2019 2018 Cost of sales $ 57,707,566 51,557,351 51,422,376 General, selling and administrative expenses 6,420,397 6,116,620 6,024,406 Total costs and expenses $ 64,127,963 57,673,971 57,446,782 Inventory consumption $ 44,747,933 39,823,395 40,115,184 Wages and salaries 8,507,124 7,561,229 7,348,795 Freight 5,037,768 5,047,007 4,809,678 Maintenance 2,006,848 1,715,820 1,719,907 Other utility expenses 1,402,459 1,595,993 1,591,920 Depreciation 1,590,303 1,265,391 1,226,917 Depreciation of right-of-use assets 307,757 302,804 — Leases (1) 119,592 96,825 453,162 Other 408,179 265,507 181,219 Total $ 64,127,963 57,673,971 57,446,782 (1) Leasing expense in 2020 and 2019 includes contracts classified as low value or those with terms less than twelve months. The expense corresponding to the 2018 annual period includes everything previously classified as operating leases under IAS 17 - Leases, which was replaced by IFRS 16 Leases. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Leases | (24) Leases Operating leases as lessee During 2018 the Company has entered operating leases for certain offices, production facilities, and automotive and computer equipment. Some leases contain renewal options. These agreements have terms between one and five years. 2018 Lease expenses $ 453,162 a) As of December 31, 2020 and 2019, the leased assets with recognized right of use are comprised as follows: Balance as of Balance as of January 1, Modifications December 31, Right-of-use assets 2020 Additions and disposal 2020 Buildings and construction $ 380,011 101,272 (11,896) 469,387 Machinery and equipment 447,179 39,020 (38,775) 447,424 Transportation equipment 283,332 4,767 61,109 349,208 Computer equipment 15,014 2,572 1,806 19,392 Total $ 1,125,536 147,631 12,244 1,285,411 Depreciation of right-of-use assets Balance as of Currency Balance as of January 1, Depreciation translation December 31, 2020 for the year effect 2019 Buildings and construction $ (97,736) (58,148) 1,897 (153,987) Machinery and equipment (116,391) (119,740) (199) (236,330) Transportation equipment (84,120) (126,211) 3,704 (206,627) Computer equipment (4,557) (3,658) (1,407) (9,622) Total $ (302,804) (307,757) 3,995 (606,566) Total right-of-use assets $ 822,732 678,845 Balance as of Balance as of December 31, Right-of-use assets January 1 Additions 2019 Buildings and construction $ 320,528 59,483 380,011 Machinery and equipment 370,410 76,769 447,179 Transportation equipment 219,132 64,200 283,332 Computer equipment 12,340 2,674 15,014 Total $ 922,410 203,126 1,125,536 Balance as of December 31, Depreciation of right-of-use assets 2019 Buildings and construction $ (97,736) Machinery and equipment (116,391) Transportation equipment (84,120) Computer equipment (4,557) Total $ (302,804) Total right-of-use assets $ 822,732 b) The movements in liabilities for these lease contracts were as follows: Balance as of Currency Balance as of January 1, Modifications Interest translation December 31, Lease liabilities 2020 Additions and disposals Payment paid effect 2020 Buildings and construction $ 280,277 101,272 31,213 (121,909) 17,903 1,258 310,014 Machinery and equipment 308,710 39,020 (19,990) (143,240) 26,143 28,007 238,650 Transportation equipment 204,258 4,767 57,473 (115,851) 9,228 2,517 162,392 Computer equipment 9,805 2,572 1,560 (5,710) 365 63 8,655 Total $ 803,050 147,631 70,256 (386,710) 53,639 31,845 719,711 Current Lease liabilities (149,538) (123,276) — — — (6,167) (278,981) Long term lease liabilities $ 653,512 24,355 70,256 (386,710) 53,639 25,678 440,730 Balance as of Currency Balance as January 1, Interest translation of December Lease liabilities 2019 Additions Payment paid effect 31, 2019 Buildings and construction $ 320,528 59,297 (113,097) 17,423 (3,874) 280,277 Machinery and equipment 370,410 63,662 (124,435) 11,933 (12,860) 308,710 Transportation equipment 219,132 64,129 (82,381) 8,070 (4,692) 204,258 Computer equipment 12,340 2,674 (5,294) 371 (286) 9,805 Total $ 922,410 189,762 (325,207) 37,797 (21,712) 803,050 Current Lease liabilities — — — — — (149,538) Long term lease liabilities $ — — — — — 653,512 c) The detail of the maturity of the long-term lease liabilities is shown below: 2022 $ 184,407 2023 137,727 2024 57,792 Subsequent 60,804 $ 440,730 d) During 2020 and 2019, an amount of $36,153 and $19,116 was charged as expense for rental contracts with a term of less than one year and $83,439 and $77,709 for rental contracts with insignificant amounts, a total of $119,592 and $96,825, respectively (note 23). |
Stockholders' equity and reserv
Stockholders' equity and reserves | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' equity and reserves | |
Stockholders' equity and reserves | (25) Stockholders’ equity and reserves a) Capital risk management An adequate capital risk management allows ongoing business continuity and the maximization of the return towards the Company’s investors, which is why management has taken actions that ensure the Company maintains an adequate balance of the funding sources that build its capital structure. Within its activities in risk management, the Company ensures that the ratio between financial debt and EBITDA of the last 12 months does not exceed 2.75 times and that the interest coverage ratio is at least 3 to 1. During 2020, 2019 and 2018 these ratios were below the thresholds established by the Company’s Risk Committee. b) Common stock and premiums As of December 31, 2020, 2019 and 2018, the Company’s capital stock is represented by 600,000,000 Series “B” registered shares with a par value of $1 peso per share. The Robinson Bours family owned 439,500,000 shares through two family trusts: the placement trust and the control trust, which collectively represented 73.25% of the Company’s total shares. The remaining 26.75% represents the floating position: Shareholding integration as of December 31, 2020, 2019 and 2018 Shares (1) Position Familiar Trusts 439,500,000 73.25 % - Control Trust 312,000,000 52.00 % - Placement Trust 127,500,000 21.25 % Floating Position (2) 160,500,000 26.75 % (1) All Series B shares with voting power. (2) Operating at the BMV and the NYSE. Based on the information provided to the Company, as of December 31, 2020, stockholders with 1% or more interest in the Company, in addition to the family trusts, are as follows: Shares Position Renaissance Technologies LLC 8,058,540 1.34 % GBM Fondo de Inversión Total, S.A. de C.V. 7,336,703 % c) Other comprehensive income items i. Foreign currency translation reserve This concept is related to the translation of the Company’s U.S. operations from their functional currency (U.S. dollar) to the reporting currency, the Mexican peso. ii. Actuarial remeasurements Actuarial remeasurements are recognized as other components of comprehensive income and are related to variations in actuarial assumptions that generate actuarial gains or losses as well as adjust the actual yields from plan assets from the net interest cost calculated over the net defined benefits liability balance. Actuarial remeasurements are presented net of income tax within other comprehensive income in the consolidated statement of changes in stockholders’ equity, the amount of these actuarial remeasurements net of taxes as of December 31, 2020, 2019 and 2018 amounts to $268,692, $195,905 and $120,378, which includes a deferred tax effect of $114,430, $83,236 and $50,867, respectively. iii. Derivatives classified as hedging instruments Derivatives classified as hedging instruments, are a hedge of the exposure to the variability of cash flows that is attributable to a particular risk associated with a recognized asset or liability or a forecasted transaction that may affect the income statement. A cash flow hedge, which meets all the hedging criteria, is accounted for as follows: · A portion of the gain or loss of the hedging instrument that is determined to be effective is recognized in other comprehensive income; and · The ineffective portion of the gain or loss of the hedging instrument is recognized immediately in the income statement. The amount of cash flow hedges as of December 31, 2020, 2019 and 2018 amounts to $267,352, $19,771 and $307, respectively. d) Reserve for repurchase of shares In 1998, the Company approved a stock repurchase plan in conformity with the Mexican Securities Trading Act and created a reserve for that purpose of $180,000 charged to retained earnings in such year. On April 22, 2020, pursuant to a resolution at the General Ordinary Stockholders’ Meeting, an amount of $1,260,000 was approved to be used in the reserve for acquisition own shares. The following table shows the movements of the reserve for acquisition of shares during the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Balance as of January 1 100,396 86,928 20,000 (+) Total shares purchased 212,860 133,488 86,928 (-) Total shares sold (160,488) (120,020) (20,000) Balance as of December 31 152,768 100,396 86,928 The net amount of repurchase and treasury share sale transactions was of ($3,509), ($1,474) and ($4,568), during the years ended December 31, 2020, 2019 and 2018, respectively. As of December 31, 2019, the Company has 152,768 treasury shares. e) Dividends During the years ended December 31, 2020, 2019 and 2018, the Company has declared and paid the following dividends: On April 22, 2020, the Company declared a payment of dividends in cash at nominal value of $791,744 or $1.32 pesos per outstanding share. The payment was made in two equal installments, on May 12 and July 7, 2020. On April 24, 2019, the Company declared a payment of dividends in cash at nominal value of $840,000 or $1.40 pesos per outstanding share. The payment was made in two equal installments, on May 14 and July 9, 2019. On April 25, 2018, the Company declared a payment of dividends in cash at nominal value of $852,000 or $1.42 pesos per outstanding share. The payment was made in two equal installments, on May 11 and July 6, 2018. Dividends that the Company pays to stockholders are subject to ISR solely insofar as such dividends exceed the balance in its net tax income account (“CUFIN”) consisting of income in which ISR is already paid by the Company. The ISR paid on dividends corresponds to a tax payable by legal entities and not by individuals. However, as a result of changes to the income tax law described in note 20(a), beginning on January 1, 2014, a new withholding tax of 10% for resident individuals in Mexico and for all residents in foreign countries who receive dividends from entities was established. Such tax is considered a withholding tax by the entity that pays the dividends. This tax will be applicable only to the income generated from period 2014. Thus, the Company must update its CUFIN from income generated up to December 31, 2013 and must calculate a new CUFIN with the income generated from January 1, 2014. The Company obtains most of its revenue and net income from BSACV . For fiscal years 2020, 2019 and 2018, net income of BSACV , accounted for 61%, 63% and 63%, respectively, of consolidated net income. Dividends for which BSACV pays ISR will be credited to the Company’s CUFIN account, and accordingly, any future liabilities arising from ISR will be incurred when such amounts are distributed as dividends to the stockholders. f) Tax balances of stockholders’ equity Balance as Balance CUFIN 2013 from 2014 Total IBSA individual $ 6,257,362 9,007,377 15,264,739 IBSA Consolidated 6,587,262 21,437,186 28,024,448 The restated amount as of December 31, 2020 on tax bases of the contributions made by stockholders (“CUCA”), totaling $3,151,852, may be refunded to them tax-free, to the extent that such amount is the same or higher than equity. |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings per share | |
Earnings per share | (26) Earnings per share The basic and diluted earnings per share for the years ended December 31, 2020, 2019 and 2018 are $6.56, $5.37 and $5.58, respectively. The calculation of earnings per share was based on income attributable to ordinary stockholders of the Company (net income attributable to controlling interest) $3,935,672, $3,219,931 and $3,349,967 for the years ended December 31, 2020, 2019 and 2018, respectively. The average weighted number of common outstanding in 2020, 2019 and 2018 was 599,818,022, 599,971,832 and 599, 980,734 shares, respectively. The Company has no ordinary shares with potential dilutive effects. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2020 | |
Commitments. | |
Commitments | (27) Commitments · Bachoco USA, LLC has self-insurance programs for health care costs and workers’ payments. The subsidiary is liable for health care claims up to $6,983 (350 thousand dollars) each year per plan participant and workers’ payments claims up to $19,950 (1,000 thousand dollars) per event. Self-insurance costs are recorded based on the aggregate of the liability for reported claims and an estimated liability for claims incurred but not reported. The provision for this concept is recorded in the accompanying consolidated statement of financial position within current liabilities amounting to $89,576 (4,327 thousand dollars), $81,737 (4,327 thousand dollars) and $74,766 (3,801 thousand dollars) as of December 31, 2020, 2019 and 2018, respectively. Additionally, the consolidated statement of comprehensive income includes expenses relating to self-insurance plans of $164,356 (6,565 thousand dollars), $126,376 (6,565 thousand dollars) and $139,783 (7,269 thousand dollars) for the years ended December 31, 2020, 2019 and 2018, respectively. The Company is required to maintain letters of credit on behalf of the subsidiary of $57,855 (2,900 thousand dollars) during 2020, $54,781 (2,900 thousand dollars) during 2019 and $57,043 (2,900 thousand dollars) during 2018, to secure self-insured workers’ payments. · The Company has entered into grain supply agreements with third parties as part of the regular course of its operations. · The Company has entered into certain contracts with suppliers under which advanced payments are rendered in order to assure the supply of materials and services. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Contingencies. | |
Contingencies | (28) Contingencies a) Insurance The Company has established a risk management program under a best practices methodology that assures the main risks of the business with the objective of reducing losses due to relevant claims. The Company set up a captive reinsurance company to complement its risk management strategy. Notwithstanding the foregoing, since all the exposures are not covered, there is a risk that the loss or destruction of certain assets may have a significant adverse effect on the Company’s operations and financial situation. b) Lawsuits The Company is involved in a number of lawsuits and claims arising from the regular course of business. In the opinion of the Company’s management, they are not expected to have significant effects on the Company’s financial position, operating results and future consolidated statements of cash flows. c) Tax contingencies In accordance with tax laws, Mexican authorities are empowered to review transactions carried out during the five years prior to the most recent ISR return filed. For the operations in the United States of America, the authorities of that country are empowered to review transactions carried out during the three years prior to the due date of the most recent annual tax return. The Company has not identified factors that may indicate the existence of a contingency. |
Financial income and costs
Financial income and costs | 12 Months Ended |
Dec. 31, 2020 | |
Financial income and costs | |
Financial income and costs | (29) Financial income and costs 2020 2019 2018 Interest income $ 698,962 988,005 1,072,991 Income from interest in accounts receivable 7,024 3,627 4,516 Foreign exchange gain, net 467,534 — 39,323 Effects of valuation of derivative financial instruments — — 23,919 Financial income 1,173,520 991,632 1,140,749 Effects of valuation of derivative financial instruments (291) (8,029) — Foreign exchange loss, net — (272,220) — Interest expense and financial expenses on financial debt (159,169) (250,820) (185,913) Interest paid on lease (53,639) (37,797) — Commissions and other financial expenses (78,230) (41,502) (146,255) Financial costs (291,329) (610,368) (332,168) Financial income, net $ 882,191 381,264 808,581 |
Other (expenses) income
Other (expenses) income | 12 Months Ended |
Dec. 31, 2020 | |
Other (expenses) income | |
Other (expenses) income | (30) Other (expenses) income 2020 2019 2018 Other income Sale of scrap of biological assets, raw materials, by-products and other $ 866,027 1,203,836 1,041,677 Bargain purchase gain of domestic business acquisition (note 4) 90,889 — — Total other income 956,916 1,203,836 1,041,677 Other expenses Cost of disposal of biological assets, raw materials, by-products and other (825,415) (944,848) (737,077) Other (494,028) (263,722) (201,940) Total other expenses (1,319,443) (1,208,570) (939,017) Total other (expenses) income, net $ (362,527) (4,734) 102,660 |
Subsequent events
Subsequent events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent events | |
Subsequent events | (31) Subsequent events The Company announced in December 2020 that an agreement was reached to invest in the company RYC Alimentos (“RYC”), a multiprotein processing and marketing company with production centers in the state of Puebla, Mexico. This agreement will allow the Company to continue taking solid steps towards consolidation in other proteins, as well as in value-added products. At the date of issuance of the consolidated financial statements, the acquisition is currently under review by the Federal Economic Competition Commission (COFECE, for its Spanish acronym). Management expects to complete the process associated with the acquisition during 2021. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Basis of consolidation | a) Basis of consolidation i. Subsidiaries Subsidiaries are entities controlled by the Company. The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control is lost (see note 5). Profits and losses of subsidiaries acquired or sold during the year are included in the consolidated statements of profit and loss and other comprehensive income from the acquisition date to the disposal date. Where necessary, the financial statements of subsidiaries are adjusted to align their accounting policies with the Company’s consolidated accounting policies. ii. Transactions eliminated in consolidation Significant intercompany balances and transactions, and any unrealized gains and losses arising from transactions between consolidated companies have been eliminated in preparing these consolidated financial statements. iii. Non-controlling interest Non-controlling interests in subsidiaries are identified separately from the Company's capital in them. Non-controlling shareholders' interests that are current ownership interests that entitle their holders to a proportionate share of the net assets at liquidation may be initially measured at fair value or the non-controlling share of fair value. the identifiable network of the acquiree. The choice of measure is made acquisition by acquisition. Other non-controlling interests are initially measured at fair value. Post-acquisition, the carrying amount of non-controlling interests is the amount of those interests at initial recognition plus the participation of non-controlling interests in subsequent changes in capital. Total comprehensive income is attributed to non-controlling interests even if this results in non-controlling interests having a negative balance. iv. Business combinations Business combinations are accounted for using the acquisition method. For each business combination, any non-controlling interest in the acquiree is valued either at fair value or according to the proportionate interest in the acquiree’s identifiable net assets. In a business combination, the Company evaluates the assets acquired and the liabilities assumed for proper classification and designation according to the contractual terms, economic circumstances and relevant conditions at the acquisition date. Goodwill is originally valued at cost and represents any excess of the transferred consideration over the net assets acquired and liabilities assumed. If the net amount of identifiable acquired assets and assumed liabilities as of the acquisition date exceeds the sum of the consideration transferred, the amount of any non-controlling interest in the acquired entity and the fair value of the prior shareholding of the acquirer in the acquired entity (if any), any excess is immediately recognized in the consolidated statement of profit and loss and other comprehensive income as a bargain purchase gain. Transaction costs, other than those associated with the issuance of debt or equity securities, that the Company incurs related to a business combination are expensed as incurred. Certain contingent consideration payable are measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it is not re-measured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognized in profit and loss. |
Foreign currency | b) Foreign currency i. Foreign currency transactions Transactions in foreign currencies are translated to the respective functional currencies of the Company at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to the functional currency at the exchange rate at that date. The foreign currency gain and loss on monetary items is the difference between amortized cost in the functional currency at the beginning of the period, adjusted for interest and principal payments during the period, and the amortized cost in foreign currency translated at the exchange rate at the end of the reporting period. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. ii. Translation of foreign operations Assets and liabilities, including goodwill and fair value adjustments arising on acquisition, of foreign operations whose functional currency differs from the reporting currency, are translated into Mexican pesos at the exchange rates at the reporting date. Income and expenses are translated to pesos at the average exchange rate of the period of the transactions. Foreign currency differences associated with translating foreign operations into the reporting currency (Mexican peso) are recognized in other comprehensive income and presented in the foreign currency translation reserve in stockholders’ equity. Foreign exchange gains and losses arising from amounts receivable or payable to a foreign operation, whose settlement is neither planned nor likely in the foreseeable future, are considered part of a net investment in a foreign operation and are recognized under the other comprehensive income account and presented within stockholders’ equity in the foreign currency translation reserve. For the years ended December 31, 2020, 2019 and 2018 the Company did not enter into such transactions. |
Financial instruments | c) Financial instruments i. Financial assets Classification of financial assets The Company classifies and measures its financial assets under the following criteria: The Company’s debt instruments are subsequently measured at amortized cost if the financial asset is maintained in a business model whose objective is to hold financial assets with the objective of obtaining contractual cash flows; and the contractual terms of the financial asset give rise on specific dates to cash flows that are only principal and interest payments on the amount of the principal. Furthermore, debt instruments are subsequently measured at fair value through other comprehensive income if the financial asset is maintained within a business model whose objective is met by obtaining contractual cash flows and selling financial assets; and the contractual terms of the financial asset give rise, on specific dates, to cash flows that are only principal and interest payments on the outstanding amount of the principal. By default, all other financial assets are subsequently measured at fair value through profit and loss. Recognition and derecognition of financial assets Assets are initially recognized on the date of the contract in which the Company becomes a member of the contractual provisions of the instruments and they are initially valued at their fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and liabilities (other than financial assets at fair value through profit or loss) are added to or reduced from the fair value of the financial assets or liabilities, where applicable, at initial recognition. Transaction costs directly attributable to the acquisition of financial assets and liabilities at fair value through profit or loss are recognized immediately in profit or loss. All regular purchases or sales of financial assets are recognized and derecognised on a trade date. Regular purchases or sales are purchases or sales of financial assets that require the delivery of assets within the period established by the regulation or usual practices in the market. All recognized financial assets are subsequently measured in full, either at amortized cost or fair value, according to the classification of financial assets. Financial assets of the Company include cash and cash equivalents, investment in securities at fair value through profit or loss, derivative financial instruments and trade receivables. The Company initially recognizes accounts receivable and cash equivalents on the date that they arise. All other financial assets (including assets measured at fair value through profit and loss) are initially recognized on the trading date, which is the date that the Company becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial asset when the contractual rights to cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which all the risks and rewards of ownership of the financial asset are substantially transferred. Financial assets and liabilities are offset and the net amount is presented in the consolidated statement of financial position solely if the Company has a legal right to offset the amounts and intends either to settle them on a net basis of financial assets and liabilities or otherwise realize the asset and settle the liability simultaneously. Cash and cash equivalents Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the acquisition date, which are subject to an insignificant risk of changes in their fair value, and are used by the Company in the management of its short-term commitments. Receivables Receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognized initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, receivables are measured at amortized cost. Receivables comprise trade, due from related parties and other receivables. Impairment of financial assets The Company evaluates whether its financial assets accounted for at amortized cost and at fair value through other comprehensive income are impaired on the basis of losses due to expected credit losses. The amount of expected credit losses is updated on each reporting date to reflect changes in credit risk since the initial recognition of the respective financial instrument. The Company recognizes lifetime expected credit losses for commercial accounts receivable, contract assets and accounts receivable for leases. The expected credit losses on these financial assets are estimated using a provision matrix based on the Company’s historical experience of credit losses, adjusted for factors that are specific to the debtors, the general economic conditions and management’s assessment of both the current and forecast conditions at the reporting date, including the time value of money when appropriate. For all other financial instruments, the Company recognizes the lifetime expected credit loss when there has been a significant increase in credit risk since the initial recognition. However, if the credit risk in the financial instrument has not increased significantly since the initial recognition, the Company measures the provision for losses for that financial instrument in an amount equal to the 12‑month expected credit losses. The Company considers a significant increase in credit risk to have occurred when the financial investment asset’s credit rating falls to the level of speculation, or when the rating provided by external ratings agencies has decreased by more than 2 levels with respect to the level at which it was acquired. Additionally, the Company considers that default has occurred when a financial asset is more than 90 days past-due, unless there is reasonable and reliable information demonstrating that a later default criterion is more appropriate. ii. Financial liabilities Debt and/or equity instruments are classified as financial liabilities or as equity according to the substance of the contractual agreement and the definitions of liability and equity. All financial instrument liabilities are initially recognized on the trade date, which is the date that the Company becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial instrument liability when its contractual obligations are met, cancelled or expire. The Company has the following non-derivative financial instrument liabilities: short-term and long-term debt, and trade and other payables and accounts payable to related parties. The aforementioned financial liabilities are originally recognized at fair value, plus costs directly attributable to the transaction. Subsequently, these financial liabilities are measured at amortized cost using the effective interest method or at fair value through profit or loss during their contractual term. iii. Derivative financial instruments The Company participates in a variety of derivative financial instruments to manage its exposure to exchange rate risks, including currency forward contracts. Derivative financial instruments entered into for fair value hedging or for trading purposes are initially recognized at fair value; any attributable transaction costs are recognized in profit and loss as incurred. Government grants are recognized initially as a liability, and subsequently recognized to profit and loss as the related obligation is settled. Subsequent to the initial recognition, such derivative financial instruments are measured at fair value, and changes in such value are immediately recognized in profit and loss unless the derivative is designated and is effective as a hedging instrument, in which case, its recognition in profit and loss will depend on the nature of the hedging. Fair value of derivative financial instruments that are traded in recognized financial markets is based on quotes issued by these markets; when a derivative financial instrument is traded in the “ Over the Counter ” market, the fair value is determined based on internal models and market inputs accepted in the financial environment. A derivative with a positive fair value is recognized as a financial asset, while a derivative with a negative fair value is recognized as a financial liability. Derivatives are not offset in the financial statements unless the Company has both the legal right and the intention to offset. A derivative is presented as a non-current asset or a non-current liability if the remaining maturity of the instrument is more than 12 months and it is not expected to be realized or settled within 12 months. Other derivatives are presented as current assets or current liabilities. The Company analyzes if there are embedded derivatives that should be segregated from the host contract and accounted for separately if the economic characteristics and risks of the host contract and the embedded derivative are not closely related. A separate instrument with the same terms as those of the embedded derivative meets the definition of a derivative, and the combined instrument is not measured at fair value through profit and loss. Changes in fair value of the separable embedded derivatives are immediately recognized in profit and loss. iv. Hedge Accounting The Company designates certain derivatives as hedging instruments with respect to foreign currency risk with fair value hedges, cash flow hedges or hedges of net investments in foreign operations. Firm commitments that hedge foreign currency risk are accounted for as cash flow hedges. At the beginning of the hedge relationship, the Company documents the relationship between the hedging instrument and the hedged item, together with its risk management objectives and its strategy to carry out various hedging transactions. In addition, at the beginning of the hedge and on an ongoing basis, the Company documents whether the instrument is effective to offset changes in the fair values or cash flows of the hedged item attributable to the hedged risk, which is when the hedging relationships comply with all of the following coverage effectiveness requirements: · There is an economic relationship between the hedging instrument and the hedged item; · The effect of credit risk does not dominate the value of the changes resulting from the economic relationship; and · The coverage ratio of the coverage ratio is the same as that resulting from the amount of the hedged item that the Company actually covers and the amount of the hedging instrument that the Company actually uses to cover that amount of the hedged item. If the hedging instrument no longer meets the effectiveness requirement related to the hedging relationship, but the risk management objective for that designated hedging relationship remains the same, the Company adjusts the hedging relationship (that is, rebalances) so that it meets the qualification criteria again. The Company designates the entire change in the fair value of a forward contract (that is, it includes the forward elements) as the hedging instrument for all its hedging relationships that involve forward contracts. The Company designates only the intrinsic value of option contracts as a hedged item, that is, excluding the time value of the option. Changes in the fair value of the option are recognized in other comprehensive income and are accumulated in the cost of the hedge reserve. If the hedged item is related to the transaction, the fair value is reclassified to profit or loss when the hedged item affects the profit or loss. If the hedged item is related to the period of time, then the accumulated amount in the cost of the hedge reserve is reclassified to profit or loss in a rational manner: the Company amortizes the accumulated hedge reserve to profit or loss using the straight-line method. These reclassified amounts are recognized in profit or loss on the same line as the hedged item. If the hedged item is a non-financial item, the accumulated amount in the cost of the hedge reserve is eliminated directly from equity and is included in the initial carrying amount of the recognized non-financial item. In addition, if the Company expects that part or all of the accumulated loss in the cost of the hedge reserve will not be recovered in the future, that amount will be reclassified immediately to results. v. Capital stock Ordinary shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issuance of ordinary shares are recognized as a deduction from equity, net of any tax effects. Stock repurchase When share capital recognized as equity is repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the reserve for repurchase of shares. When treasury shares are sold or are re-issued subsequently, the amount received as well as the resulting surplus or deficit on the transaction is recognized in equity. |
Property, plant and equipment | d) Property, plant and equipment i. Recognition and measurement Property, plant and equipment, except for land, are recorded at acquisition cost less accumulated depreciation and any accumulated impairment losses. Land is measured at the acquisition costs less any accumulated impairment losses. Acquisition cost includes the purchase price, as well as any cost directly attributable to the acquisition of the asset, including all costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. When components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. An item of property, plant and equipment is derecognized at the time of disposal or when no future economic benefits are expected to arise from the continued use of the asset. Gains or losses on the sale of an item of property, plant and equipment are determined by comparing the proceeds from the sale with the carrying amount of property, plant and equipment, and are recognized net under “other income (expenses)” in profit and loss for the year. ii. Subsequent costs The replacement cost of an item of property, plant and equipment is capitalized if the future economic benefits associated with the cost are expected to flow to the Company and the related cost is reliably determined. The carrying amount of the replaced item is written off from the accounting records. Maintenance and repair expenses related to property, plant and equipment are expensed as incurred. iii. Depreciation Depreciation is calculated over the cost of the asset less its residual value, using the straight line method, based on the estimated useful life of the assets. Depreciation is recognized in profit and loss beginning from the time when the assets are available for use. Below are the estimated useful lives for 2020, 2019 and 2018: Average useful Life Buildings 46 Machinery and Equipment 19 Vehicles 11 Computers 8 Furniture 11 The Company has estimated the following residual values as of December 31, 2020, 2019 and 2018: Residual Value Buildings 9 % Machinery and Equipment 8 % Vehicles 5 % Computers 0 % Furniture 2 % |
Goodwill | e) Goodwill Goodwill arises as a result of the acquisition of a business over which control is obtained and is measured at cost less cumulative impairment losses; it is subject to annual tests for impairment. |
Intangible assets | f) Intangible assets They are mainly comprised of trade names and customer relationships derived from the acquisition of businesses in the United States of America. The cost of intangible assets acquired through a business combination represents their fair value at the acquisition date and they are recognized separately from goodwill. Subsequently, they are valued at cost less amortization and accumulated impairment losses. Intangible assets are classified as having a definite or indefinite life. Those with a defined life are amortized under the straight-line method during their estimated life and when there are impairment indicators, they are tested for impairment. The amortization methods and the useful life of the assets are reviewed and adjusted, if necessary, at the date of each statement of financial position. Amortization is charged to income in the general expenses category. Those with an indefinite life are not amortized, but are subject to impairment tests at least annually. |
Biological assets | g) Biological assets Biological assets whose fair value can be measured reliably are measured at fair value less costs of sale, with any change therein recognized in profit and loss. Costs of sale include all costs that would be necessary to sell the assets, excluding finance costs and income taxes. The Company’s biological assets consist of growing poultry, poultry in its different production stages, hatching eggs, breeder pigs, and growing pigs. When fair value cannot be reliably, verifiably and objectively determined, assets are valued at production cost less accumulated depreciation, and any cumulative impairment loss. Depreciation related to biological assets forms part of the cost of inventories and current biological assets and is ultimately recognized within cost of sales in the statement of profit and loss and other comprehensive income. Depreciation of poultry and breeder pigs is estimated based on the expected future life of such assets and is calculated on a straight-line basis. Expected average useful life (weeks) Poultry in its different production stages 40-47 Breeder pigs Biological assets are classified as current and non-current assets, based on the nature of such assets and their purpose, whether for commercialization or for reproduction and production. |
Leased assets | h) Leased assets Until December 31, 2018 operating lease rentals paid by the Company were recognized in profit and loss using the straight-line method over the lease term, even though payments may not be made on the same basis. Assets held under finance leases were depreciated over their expected useful lives on the same basis as owned assets. However, when there is no reasonable certainty that ownership will be obtained at the end of the lease term, assets are depreciated over the shorter of the lease term or their useful lives. During 2020 and 2019, the Company evaluates whether a contract is or contains a lease at the beginning of the contract term. A lease is defined as a contract that grants the right to control the use of an identified asset, for a specified period, in exchange for consideration. The Company recognizes a right-of-use asset and a corresponding lease liability, with respect to all the lease agreements in which it operates as lessee, except in the following cases: short-term leases (defined as leases with a term of lease less than 12 months); low-value asset leases (defined as asset leases with an individual market value of less than 5 thousand dollars); and, the lease contracts whose payments are variable (without any fixed contractually defined payment). For these contracts that exclude the recognition of a right-of-use asset and a lease liability, the Company recognizes rental payments as a straight-line operating expense during the lease term. The right-of-use asset is made up of discounted lease payments at present value; direct costs of obtaining a lease; advance lease payments; and the dismantling or asset removal obligations. The Company depreciates the right-of-use asset over the shorter period of the lease term and the useful life of the underlying asset; In this sense, when a purchase option in the lease is likely to be exercised, the right-of-use asset depreciates over its useful life. Depreciation begins on the start date of the lease. The lease liability is measured at initial recognition by discounting future minimum income payments at present value according to a term, using a discount rate that represents the cost of obtaining financing in an amount equivalent to the value of the contract's income, for the acquisition of the underlying asset, in the same currency and for a period similar to the corresponding contract (incremental borrowing rate). When the contract payments contain non-lease components (services), the Company has chosen, for some asset classes, not to separate them and to measure all payments as a single lease component; however, for the rest of the asset classes, the Company measures the lease liability only considering the payments of components that are rents, while the services implicit in the payments are recognized directly in results as operating expenses. To determine the term of the lease, the Company considers the mandatory term, including the probability of exercising any right to extend the term and / or an early termination. Subsequently, the lease liability is measured by increasing the book value to reflect the interest on the lease liability (using the effective interest method) and reducing the book value to reflect the rental payments made. When there are modifications to the lease payments for inflation, the Company remits the lease liability from the date the new payments are known, without reconsidering the discount rate. However, if the modifications are related to the term of the contract or the exercise of a purchase option, the Company re-evaluates the discount rate in the measurement of the liability. Any increase or decrease in the value of the lease liability subsequent to this re-measurement is recognized by increasing or decreasing to the same extent, as the case may be, the value of the right-of-use asset. Finally, the lease liability is derecognized at the time the Company pays all of the contract's payments. When the Company determines that it is probable that it will exercise an early termination from the contract that merits a cash outlay, said consideration is part of the re-measurement of the liability mentioned in the preceding paragraph; however, in those cases in which the early termination does not imply a cash outlay, the Company pays the lease liability and the corresponding right of use asset, recognizing the difference between the two immediately in the consolidated statement of income. |
Inventories | i) Inventories Inventories are measured at the lower of cost and net realizable value. The cost of inventories is based on average cost, and includes expenditures incurred for acquiring inventories, production or transformation costs, and other costs incurred for bringing them to their present location and condition. Agricultural products derived from biological asses are processed chickens and commercial eggs. Net realizable value is the estimated selling price in the ordinary course of business, less the costs necessary to make the sale. Cost of sales represents cost of inventories at the time of sale, increased, if applicable, by reductions in inventory to its net realizable value, if lower than cost, during the year. The Company records the necessary reductions in the value of its inventories for impairment, obsolescence, slow movement and other factors that may indicate that the use or performance of the items that are part of the inventory may be lower than the carrying value. |
Impairment | j) Impairment i. Financial assets A financial asset that is not recorded at fair value through profit and loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if there is objective evidence of a loss event after the initial recognition of the asset, and that such loss event had a negative impact on the estimated future cash flows of that asset that can be estimated reliably. Objective evidence that financial assets are impaired includes default or delinquency by a debtor, restructuring of an amount due to the Company, evidence that a debtor may go bankrupt, or the disappearance of an active market for a security. In addition, for an investment in an equity security, a significant or prolonged reduction in its fair value below its cost is objective evidence of impairment. The Company considers evidence of impairment for financial assets valued at amortized cost (accounts receivables) both individually and collectively. All individually significant receivables and other financial assets are assessed for specific impairment. Assets that are not individually significant are collectively assessed for impairment by grouping together assets with similar risk characteristics. In assessing collective impairment, the Company follows an expected loss model and the calculation is applicable to all receivables regardless of whether or not they have objective evidence of impairment. For these estimates, management uses historical trends of probabilities of default, timeliness of recoveries and the amount of loss incurred, adjusted for management’s judgment as to whether current economic and credit conditions are such that the actual losses are greater or less than those implied by historical trends. An impairment loss related to a financial asset valued at amortized cost is calculated as the difference between the carrying amount of the asset and the present value of estimated future cash flows discounted at the effective interest rate. Losses are recognized in profit and loss and reflected in an allowance account against receivables. ii. Non-financial assets The carrying amounts of the Company’s non-financial assets, other than inventories, biological assets and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the recoverable amount of the asset is estimated or cash generating units, as the lowest between its value in use and the fair value less cost of sale. Goodwill and indefinite-lived intangible assets are tested annually for impairment on the same dates. The Company defines the cash generating units and also estimates the periodicity and cash flows that they should generate. Subsequent changes in the group of cash-generating units, or changes in the assumptions that support the cash flow estimates or the discount rate could impact the carrying amounts of the respective asset. The main assumptions for developing estimates of recoverable amounts requires the Company’s management to estimate the future cash flows expected to arise from the cash-generating unit and a suitable discount rate in order to calculate its present value. The Company estimates cash flow projections considering current market conditions, determination of future prices of goods and volumes of production and sales. In addition, for the purposes of the discount and perpetuity growth rates, the Company uses indicators of market and expectations of long-term growth in the markets in which it operates. The Company estimates a discount rate before taxes for the purposes of the goodwill impairment test that reflects the risk of the corresponding cash-generating units and that enables the calculation of present value of expected future cash flows, as well as to reflect risks that were not included in the cash flow projection assumptions and premises. The discount rate that the Company estimates is based on the weighted average cost of capital. In addition, the discount rate estimated by the Company reflects the return that market participants would require if they had made a decision about an equivalent asset, as well as the expected generation of cash flow, time, and risk-and-return profiles. The Company annually reviews the circumstances which led to an impairment loss arising from cash-generating units to determine whether such circumstances have been changed and that may result in the reversal of previously recognized impairment losses. An impairment loss in respect of goodwill is not reversed. For other long-lived assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if the impairment loss had not been recognized. Impairment losses are recognized in profit and loss. Impairment losses recognized in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the cash-generating unit (or group of CGUs), and subsequently to reduce the carrying amount of the other long-lived assets within the cash-generating unit (or group of CGUs) on a pro rata basis. |
Held-for-sale assets | k) Held-for-sale assets Available for sale assets mainly consist of foreclosed assets. Foreclosed assets are initially recorded at the lower of fair value less costs to sell or the net carrying amount of the related account receivable. Immediately before being classified as held-for-sale, assets are valued according to the Company’s accounting policies in accordance with the applicable IFRS. Subsequently, held-for-sale assets are recorded at the lower of the carrying amount and fair value less costs to sell. Impairment losses on initial classification of held-for-sale assets and subsequent remeasurement gains and losses are recognized in profit and loss. Recognized gains shall not exceed cumulative impairment losses previously recognized. |
Other assets | l) Other assets Other long-term assets primarily include advances for the purchase of property, plant and equipment, investments in insurance policies and security deposits. The Company owns life insurance policies of some of the former stockholders of Bachoco USA, LLC (foreign subsidiary). The Company records these policies at their net cash surrender value which approximates its fair value (see note 17). |
Employee benefits | m) Employee benefits The Company grants to its employees in Mexico and abroad, different types of benefits as described below and as detailed in note 22. i. Defined contribution plan A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a separate entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution plans are recognized as an employee benefit expense in profit and loss in the periods during which the related services are rendered by employees. Prepaid contributions are recognized as an asset to the extent that the Company has the right to a cash refund or a reduction in future payments is available. Contributions to a defined contribution plan due more than 12 months after the end of the period in which the employees render the service are discounted at present value. ii. Defined benefit plan A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. It is funded by contributions made by the Company and is intended to meet the Company’s labor obligations to its employees. The Company´s net obligations in respect of defined benefit plans is calculated separately for each plan, estimating the amount of the future benefit that the employees have earned in return for their service in the current and prior years; that benefit is discounted to determine its present value, and is reduced by the fair value of the plan assets. The discount rate is the yield at the end of the reporting period on high quality corporate bonds (or governmental bonds in the instance that a deep market does not exist for high quality corporate bonds, which is the case in Mexico) that have maturity dates approximating the terms of the Company´s obligations and that are denominated in the currency in which the benefits are expected to be paid. Net interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset. Defined benefit costs are categorized as follows: · Service cost (including current service cost, past service cost, as well as gains and losses on curtailments and settlements) · Net interest expense or income The Company presents service cost as part of operating income in the consolidated statements of profit or loss and other comprehensive income (loss). Gains and losses for reduction of service are accounted for as past service costs. The calculation is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a benefit to the Company, the recognized asset is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans. When the benefits of a plan are modified or improved, the portion of the improved benefits related to past services by employees is recognized in profit and loss on the earlier of the following dates: when there is a modification or curtailment to the plan, or when the Company recognizes the related restructuring costs or termination benefits. Remeasurement adjustments, comprising actuarial gains and losses, the effect of changes to the asset ceiling (if applicable) and the return on plan assets (excluding interest), are reflected immediately with a charge or credit recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in equity and is not reclassified to profit or loss. iii. Short-term benefits Short-term employee benefits are valued on a non-discounted basis and are expensed as the respective services are rendered. A liability is recognized for the amount expected to be paid under the short-term cash bonus plans or statutory employee profit sharing (PTU for its acronym in Spanish), if the Company has a legal or constructive obligation to pay such amounts as a result of prior services rendered by the employee, and the obligation may be reliably estimated. iv. Termination benefits from constructive obligations The Company recognizes, as a defined benefit plan, a constructive obligation from past practices. The liability accrues based on the services rendered by the employee. Payment of this benefit is made in one installment at the time that the employee voluntarily ceases working for the Company. |
Provisions | n) Provisions A provision is recognized if, as a result of a past event, the Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. When the effect of time value of money is significant, the amount of the provision is the present value of the disbursements expected to be necessary to settle the obligation. The discount rate applied is determined before taxes and reflects market conditions at the reporting date and takes into account the specific risk of the relevant liability, if any. The unwinding of the present value discount is recognized as a financial cost. |
Interests in joint operations | o) Interests in joint operations A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. The Company as a joint operator recognizes, in relation to its interest in a joint operation: its assets, including its share of any assets held jointly; its liabilities, including its share of any liabilities incurred jointly; its revenue from the sale of its share of the output arising from the joint operation; its share of the revenue from the sale of the output by the joint operation, and its expenses, including its share of any expenses incurred jointly. The Company accounts for the assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the IFRSs applicable to such assets, liabilities, revenues and expenses. The Company has joint operations derived from the agreements for the development of its biological assets. For such operations, the Company accounts for its biological assets, its obligations derived from technical support, as well as the expenses it incurs with respect to the joint operations. The live poultry produced by the joint operation is ultimately used internally by the Company and may be sold by the Company to third parties. As a result, the joint operation itself does not generate any revenues with third parties. |
Revenues | p) Revenues Revenues from the sale of goods in the course of ordinary activities are measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenues are recognized when persuasive evidence exists, usually in the form of an executed sales agreement, that control over the product has been transferred to the customer. If it is probable that discounts will be granted and the amount can be measured reliably, the discount is recognized as a reduction of revenue. The Company generally does not accept sales returns. No asset is recognized for product returns, due to the fact that such products are not expected to be sold or recovered in another manner given that they are perishable. To the extent sales returns occur, the product returns are made simultaneously with the delivery and acceptance of the product (same day). The Company has concluded that all performance obligations are satisfied at the time of delivery of the product to the customer. The Company has a variety of credit terms for its various distribution channels, all of which have short terms, consistent with market and industry practices. Accordingly, there are no financing components. A significant portion of sales in Mexico are collected in cash on delivery. |
Financial income and costs and dividend income | q) Financial income and costs and dividend income Financial income comprises interest income from funds invested, fair value changes on financial assets at fair value through profit or loss and foreign currency exchange gains. Interest income is recognized in profit and loss, using the effective interest method. Dividend income is recognized in profit and loss on the date that the Company´s right to receive the payment is established. Financial costs comprise interest expense for borrowings, foreign currency exchange losses and fair value changes on financial assets at fair value through profit and loss. Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognized in profit and loss using the effective interest method. Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the costs of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. Exchange gains and losses are reported on a net basis. |
Income taxes | r) Income taxes Income tax expense is comprised of current and deferred tax. Current income taxes and deferred income taxes are recognized in profit and loss provided they do not relate to a business combination, or items recognized directly in equity or in other comprehensive income. Current income tax is the expected tax payable or receivable on the taxable income or loss for the fiscal year, which can be applied to taxable income from previous years, using tax rates enacted or substantively enacted in each jurisdiction at the reporting date, plus any adjustment to taxes payable with respect to previous years. Current income tax payable also includes any tax liability arising from the payment of dividends. Deferred income tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities and the amounts used for tax purposes. Deferred income tax is not recognized for: · the initial recognition of assets or liabilities in a transaction that is not a business combination and did not affect either accounting or taxable profit or loss; · differences related to investments in subsidiaries to the extent that it is probable that the Company is able to control the reversal date, and the reversion is not expected to take place in the near future. · taxable temporary differences arising from the initial recognition of goodwill. Deferred income tax is determined by applying the tax rates that are expected to apply in the period in which the temporary differences will reverse, based on the regulations enacted or substantively enacted at the reporting date. The measurement of deferred income tax assets and liabilities reflect the tax consequences derived from the manner in which the Company expects to recover or settle the carrying amounts of its assets and liabilities. In determining the amount of current and deferred income tax, the Company takes into account the impact of uncertain tax positions and whether additional taxes and interest may be due. The Company believes that the balance for its income tax liabilities are appropriate for all tax years subject to be reviewed by the tax authorities based on its assessment of several factors, including the interpretation of the tax laws and prior experience. A deferred income tax asset is recognized for unused tax losses, tax credits and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred income tax assets are reviewed at each reporting date and are reduced to the extent that it is not probable that the related tax benefit will be realized. |
Earnings per share | s) Earnings per share The Company presents information on basic and diluted earnings per share (“EPS”) related to its ordinary shares. Basic EPS is computed by dividing the profit and loss attributable to the holders of the Company’s common shares by the weighted average number of outstanding ordinary shares during the period, adjusted for treasury shares held. Diluted EPS is determined by adjusting the profit and loss attributable to the holders of the ordinary shares and the outstanding weighted average number of ordinary shares, adjusted for treasury shares held, for the potential dilutive effects of all ordinary shares, including convertible instruments and options on shares granted to employees. At December 31, 2020, 2019 and 2018, the Company has no potentially dilutive shares, for which reason basic and diluted EPS are the same. |
Segment information | t) Segment information An operating segment is a component of the Company: i) that is engaged in business activities from which revenues and expenses may be obtained and incurred, including revenues and expenses related to transactions with any of the other components of the Company, ii) whose results are reviewed periodically by the chief operating decision maker for the purpose of resource allocation and assessment of segment performance, and iii) for which discrete financial information exists. The Company discloses reportable segments based on operating segments whose revenues exceed 10% of the combined revenues from all segments, whose absolute value of profit or loss exceeds 10% of the combined absolute value of profit or loss from all segments, whose assets exceed 10% of the combined assets from all segments, or that result from the aggregation of two or more operating segments that share similar economic characteristics and meet the aggregation criteria under IFRS (note 2 d) iii. ). |
Costs and expenses by function | u) Costs and expenses by function Costs and expenses in the consolidated statements of profit and loss and other comprehensive income were classified by their function. The nature of costs and expenses is presented in Note 23. |
Statement of cash flows | v) Statement of cash flows The Company presents cash flows from operating activities by using the indirect method, in which the income or loss is adjusted by the effects of items that do not require cash flows, including those related to investing or financing activities. The Company classifies all interest received from its investments and accounts receivable as investment activities, and all interest paid as financing activities. |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Significant accounting policies | |
Schedule of estimated useful lives | Below are the estimated useful lives for 2020, 2019 and 2018: Average useful Life Buildings 46 Machinery and Equipment 19 Vehicles 11 Computers 8 Furniture 11 |
Schedule of estimated residual values | The Company has estimated the following residual values as of December 31, 2020, 2019 and 2018: Residual Value Buildings 9 % Machinery and Equipment 8 % Vehicles 5 % Computers 0 % Furniture 2 % |
Schedule of estimated Depreciation of poultry and breeder pigs | Depreciation of poultry and breeder pigs is estimated based on the expected future life of such assets and is calculated on a straight-line basis. Expected average useful life (weeks) Poultry in its different production stages 40-47 Breeder pigs |
Business and asset acquisitio_2
Business and asset acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Sonora Agropecuaria, S.A. de C.V. | |
Business and asset acquisitions | |
Schedule of identifiable assets acquired and liabilities assumed | The following is a summary of the recognized amounts of acquired assets and assumed liabilities at the date, compared to the consideration paid: Acquisition value Current assets, other than inventories $ 349,834 Inventories 123,959 Property, plant and equipment 383,680 Total assets 857,473 Current liabilities (263,365) Deferred income tax (35,916) Acquired net identifiable assets 558,192 Controlling interest 305,889 Non-controlling interest 252,303 Consideration paid 215,000 Bargain purchase gain (note 30) $ 90,889 |
Subsidiaries of the Company (Ta
Subsidiaries of the Company (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Subsidiaries of the Company | |
Schedule of list of subsidiaries and the company's shareholding percentage in such subsidiaries | A list of subsidiaries and the Company’s shareholding percentage in such subsidiaries as of December 31, 2020, 2019 and 2018 are presented below: Shareholding percentage in subsidiaries December 31, Name Country 2020 2019 2018 Bachoco, S.A. de C.V. México 99.99 99.99 99.99 Bachoco USA, LLC. & Subsidiary U.S. 100.00 100.00 100.00 Campi Alimentos, S.A. de C.V. México 99.99 99.99 99.99 Induba Pavos, S.A. de C.V. México 99.99 99.99 99.99 Bachoco Comercial, S.A. de C.V. México 99.99 99.99 99.99 PEC LAB, S.A. de C.V. México 64.00 64.00 64.00 Aviser, S.A. de C.V. México 99.99 99.99 99.99 Operadora de Servicios de Personal, S.A. de C.V. México 99.99 99.99 99.99 Secba, S.A. de C.V. México 99.99 99.99 99.99 Servicios de Personal Administrativo, S.A. de C.V. México 99.99 99.99 99.99 Sepetec, S.A. de C.V. México 99.99 99.99 99.99 Wii kit RE LTD. Bermuda 100.00 100.00 100.00 Proveedora La Perla S.A. de C.V. México 100.00 100.00 100.00 Sonora Agropecuaria, S.A. de C.V. México 54.80 — — |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Operating segments | |
Schedule of operating segment information | Below is the information related to each reportable segment. Performance is measured based on each segment’s income before taxes, in the same manner as it is included in management reports that are regularly reviewed by the Company’s Board of Directors. a) Operating segment information Year ended December 31, 2020 Poultry Other Total Net revenues $ 61,323,853 7,468,149 68,792,002 Cost of sales 51,165,650 6,541,916 57,707,566 Gross profit 10,158,203 926,233 11,084,436 Finance income 998,654 174,866 1,173,520 Finance costs 260,570 30,759 291,329 Income before taxes 4,626,582 557,121 5,183,703 Income taxes 1,060,876 150,735 1,211,611 Net income attributable to controlling interest 3,532,589 403,083 3,935,672 Property, plant and equipment, net 17,146,405 2,587,417 19,733,822 Goodwill 1,562,404 88,312 1,650,716 Intangible assets 753,224 — 753,224 Total assets 51,081,829 7,393,171 58,475,000 Total liabilities 13,144,941 1,403,251 14,548,192 Purchases of property, plant and equipment 1,978,818 773,463 2,752,281 Depreciation and amortization 1,542,031 193,115 1,735,146 Poultry Other Total revenues revenues revenues Total revenues $ 61,332,013 7,506,962 68,838,975 Intersegments (8,160) (38,813) (46,973) Net revenues $ 61,323,853 7,468,149 68,792,002 Year ended December 31, 2019 Poultry Other Total Net revenues $ 55,653,027 6,002,218 61,655,245 Cost of sales 46,456,076 5,101,275 51,557,351 Gross profit 9,196,951 900,943 10,097,894 Finance income 860,140 131,492 991,632 Finance costs 529,226 81,142 610,368 Income before taxes 3,854,474 503,330 4,357,804 Income taxes 993,652 131,326 1,124,978 Net income attributable to controlling interest 2,849,145 370,786 3,219,931 Property, plant and equipment, net 16,440,851 2,115,795 18,556,646 Goodwill 1,490,978 88,016 1,578,994 Intangible assets 772,640 — 772,640 Total assets 49,533,440 6,169,051 55,702,491 Total liabilities 14,066,224 1,375,932 15,442,156 Purchases of property, plant and equipment 1,811,086 258,241 2,069,327 Depreciation and amortization 1,171,200 115,243 1,286,443 Poultry Other Total revenues revenues revenues Total revenues $ 55,656,645 6,037,772 61,694,417 Intersegments (3,618) (35,554) (39,172) Net revenues $ 55,653,027 6,002,218 61,655,245 Year ended December 31, 2018 Poultry Other Total Net revenues $ 55,308,141 5,743,951 61,052,092 Cost of sales 46,562,214 4,860,162 51,422,376 Gross profit 8,745,927 883,789 9,629,716 Finance income 1,094,377 46,372 1,140,749 Finance costs 288,703 43,465 332,168 Income before taxes 4,025,050 491,501 4,516,551 Income taxes 1,028,335 126,643 1,154,978 Net income attributable to controlling interest 2,986,328 363,639 3,349,967 Property, plant and equipment, net 16,060,590 1,957,586 18,018,176 Goodwill 1,543,755 88,016 1,631,771 Intangible assets 962,738 (13,383) 949,355 Total assets 47,205,252 5,660,342 52,865,594 Total liabilities 13,364,922 1,334,967 14,699,889 Purchases of property, plant and equipment 1,747,286 235,297 1,982,583 Depreciation and amortization 1,121,751 105,166 1,226,917 Poultry Other Total revenues revenues revenues Total revenues $ 55,312,273 5,785,289 61,097,562 Intersegments (4,132) (41,338) (45,470) Net revenues $ 55,308,141 5,743,951 61,052,092 |
Schedule of information about revenue classified based on geographical location | When submitting information by geographic area, revenue is classified based on the geographic location where the Company’s customers are located. Segment assets are classified in accordance with their geographic location. Geographical information for the “Others” segment is not included below because the operations are carried out entirely within Mexico. Year ended December 31, 2020 Operations between Domestic Foreign geographical poultry poultry segments Total Net revenues $ 41,835,033 19,573,023 (84,203) 61,323,853 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies: Non-current biological assets 1,185,308 806,222 — 1,991,530 Property, plant and equipment, net 14,659,461 2,486,944 — 17,146,405 Goodwill 212,536 1,349,868 — 1,562,404 Intangible assets — 753,224 — 753,224 Year ended December 31, 2019 Operations between Domestic Foreign geographical poultry poultry segments Total Net revenues $ 38,778,025 16,931,735 (56,733) 55,653,027 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies: Non-current biological assets 1,058,126 760,785 — 1,818,911 Property, plant and equipment, net 13,799,774 2,641,077 — 16,440,851 Goodwill 212,833 1,278,145 — 1,490,978 Intangible assets — 772,640 — 772,640 Year ended December 31, 2018 Operations between Domestic Foreign geographical poultry poultry segments Total Net revenues $ 37,766,974 17,599,239 (58,072) 55,308,141 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies: Non-current biological assets 979,034 742,694 1,721,728 Property, plant and equipment, net 13,002,755 3,057,835 — 16,060,590 Goodwill 212,833 1,330,922 — 1,543,755 Intangible assets — 962,738 — 962,738 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and cash equivalents. | |
Schedule of cash and cash equivalents | The consolidated balances of cash and cash equivalents as of December 31, 2020, 2019 and 2018 are as follows: December 31, 2020 2019 2018 Cash and banks $ 12,941,334 13,106,862 13,566,098 Investments with maturities less than three months 4,305,998 5,513,276 4,331,423 17,247,332 18,620,138 17,897,521 Restricted cash 39,042 42,627 4,324 Total cash and cash equivalents $ 17,286,374 18,662,765 17,901,845 |
Financial instruments and ris_2
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial instruments and risk management | |
Schedule of categories of financial assets and liabilities | The Company’s financial assets and liabilities are shown below: December 31, 2020 2019 2018 Financial assets Cash and cash equivalents $ 17,286,374 18,662,765 17,901,845 Investment in securities at fair value through profit or loss 1,018,322 186,284 550,068 Investment in securities at fair value through other comprehensive income 937,715 315,761 — Investments in life insurance 71,431 65,545 66,177 Trade receivables 2,704,058 2,523,092 2,444,013 Due from related parties 686 13,674 99 Other long-term receivables 193,689 173,488 171,222 Derivative financial instruments — 18,098 6,570 Financial liabilities Current and non-current financial debt $ (2,517,965) (4,928,607) (5,037,600) Trade payables, sundry creditors and expenses payable (5,049,103) (4,491,171) (4,593,344) Current and non-current lease liabilities (719,711) (803,050) — Due to related parties (80,842) (76,704) (147,514) Derivative financial instruments (194,181) — — |
Schedule of credit risk exposure | The carrying amount of financial assets represents the maximum credit exposure, which as of the reporting date is as follows: December 31, 2020 2019 2018 Cash and cash equivalents $ 17,286,374 18,662,765 17,901,845 Investments in securities at fair value through profit or loss 1,018,322 186,284 550,068 Investment in securities at fair value through other comprehensive income 937,715 315,761 — Investments in life insurance 71,431 65,545 66,177 Accounts receivable net of guarantees received 2,717,920 2,046,754 1,986,102 Derivative financial instruments — 18,098 6,570 $ 22,031,762 21,295,207 20,510,762 |
Schedule of maturity analysis for derivative financial liabilities | December 31, 2020 Less than 1 year 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 5,049,103 — — Due to related parties 80,842 — — Derivative financial instruments 194,181 — — Lease liabilities 278,981 379,926 60,804 Financial debt, maturities at variable rates In U.S. dollars 778,050 — — In pesos 279,510 1,460,405 — Interest 85,340 44,613 — Total financial liabilities $ 6,746,007 1,884,944 60,804 December 31, 2019 Less than 1 year 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,491,171 — — Due to related parties 76,704 — — Lease liabilities 149,538 598,040 55,472 Financial debt, maturities at variable rates In U.S. dollars 2,831,191 — — In pesos 609,208 1,488,208 — Interest 134,535 207,643 — Total financial liabilities $ 8,292,347 2,293,891 55,472 December 31, 2018 Less than 1 year 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,593,344 — — Due to related parties 147,514 — — Financial debt, maturities at variable rates In U.S. dollars 2,757,459 — — In pesos 735,334 44,014 1,500,793 Interest 145,860 270,977 79,719 Total financial liabilities $ 8,379,511 314,991 1,580,512 |
Schedule of foreign currency position | Below is the foreign currency position that the Company has as of December 31, 2020, 2019 and 2018. December 31, 2020 2019 2018 Mexican Mexican Mexican Dollars Pesos Dollars Pesos Dollars Pesos Assets Cash and cash equivalents $ 479,325 9,562,534 569,569 10,759,165 384,119 7,555,616 Investment in securities at fair value through profit or loss 40,424 806,459 4,576 86,447 19,447 382,519 Investment in securities at fair value through other comprehensive income 47,003 937,715 16,716 315,761 — — Accounts receivable 2,683 53,517 2,160 40,809 252 4,950 Total assets 569,435 11,360,225 593,021 11,202,182 403,818 7,943,085 Liabilities Trade accounts payable (107,224) (2,139,115) (120,699) (2,280,003) (194,701) (3,829,765) Financial debt (39,000) (778,050) (149,878) (2,831,191) (140,186) (2,757,459) Lease liabilities (6,558) (130,828) (7,635) (144,224) — — Total Liabilities (152,782) (3,047,993) (278,212) (5,255,418) (334,887) (6,587,224) Net asset position $ 416,653 8,312,232 314,809 5,946,764 68,931 1,355,861 |
Schedule of detail of exchange rates | The following is a detail of exchange rates effective during the fiscal year: Spot exchange rate at Average exchange rate December 31, 2020 2019 2018 2020 2019 2018 Dollars $ 21.49 19.25 19.23 19.95 18.89 19.67 |
Schedule of financial instruments at fair value | e) Financial instruments at fair value The amounts of accounts payable and accounts receivable approximate their fair value because of their nature and short-term maturities. The table below summarizes the fair value of the financial instruments that are recognized at amortized cost, together with the carrying amount included in the consolidated statements of financial position: Liabilities recorded at Carrying Carrying Carrying amortized cost amount Fair value amount Fair value amount Fair value 2020 2019 2018 Financial debt $ 2,517,965 2,550,758 4,928,607 4,952,445 5,037,600 5,037,688 |
Schedule of fair value of financial instruments | The following table summarizes financial instruments carried at fair value: Level 1 Level 2 Level 3 Total As of December 31, 2020 Investment in securities at fair value through profit or loss $ 1,018,322 — — 1,018,322 Investment in securities at fair value through other comprehensive income 937,715 — — 937,715 Derivative financial instruments — (194,181) — (194,181) $ 1,956,037 (194,181) — 1,761,856 Level 1 Level 2 Level 3 Total As of December 31, 2019 Investment in securities at fair value through profit or loss $ 186,284 — — 186,284 Investment in securities at fair value through other comprehensive income 315,761 — — 315,761 Derivative financial instruments — 18,098 — 18,098 $ 502,045 18,098 — 520,143 Level 1 Level 2 Level 3 Total As of December 31, 2018 Investment in securities at fair value through profit or loss $ 550,068 — — 550,068 Derivative financial instruments — 6,570 — 6,570 $ 550,068 6,570 — 556,638 |
Schedule of fair value measurements related to financial liabilities | Information regarding the hierarchy of fair value measurements related to financial liabilities that are not recognized at fair value, but for which disclosures are required, is summarized below: Level 1 Level 2 Level 3 Total As of December 31, 2020 Financial debt - bank institutions $ — (1,059,300) — (1,059,300) Financial debt – debt securities (1,491,458) — — (1,491,458) $ (1,491,458) (1,059,300) — (2,550,758) Level 1 Level 2 Level 3 Total As of December 31, 2019 Financial debt - bank institutions $ — (3,455,810) — (3,455,810) Financial debt – debt securities (1,496,635) — — (1,496,635) $ (1,496,635) (3,455,810) — (4,952,445) Level 1 Level 2 Level 3 Total As of December 31, 2018 Financial debt - bank institutions $ — (3,536,895) — (3,536,895) Financial debt – debt securities (1,500,793) — — (1,500,793) $ (1,500,793) (3,536,895) — (5,037,688) |
Schedule of sensitivity analysis for types of risks | The following table shows the Company’s sensitivity to an increase and decrease of 15% for 2020, 2019 and 2018 in the “ bushell ” price of corn and short ton price of soybeans. Effect of Increase Effect of Decrease 2020 2019 2018 2020 2019 2018 Loss (profit) for the year $ (87,711) (121,762) (2,665) $ (12,530) 100,490 105 ii. Interest rate risk As described in Note 18, the Company has financial debt denominated in pesos and dollars, which bear interest at variable rates based on TIIE and LIBOR, respectively. The following table shows the Company’s sensitivity to an increase and decrease of 50 basis points for 2020, 2019 and 2018, in the variable rates to which the Company is exposed. Effect of Increase Effect of Decrease 2020 2019 2018 2020 2019 2018 Loss (profit) for the year $ 13,390 24,465 30,192 $ (13,390) (24,465) (30,192) iii. Exchange risk As of December 31, 2020, 2019 and 2018, the Company’s net monetary liability position in foreign currency was $ 8,312,232, $5,946,764 and $1,355,861, respectively. The following table shows the Company’s sensitivity of an increase and decrease of 30% for 2020 and 2019 and 10% for 2018, in exchange rate, which would have an effect in the result from foreign currency position. Effect of Increase Effect of Decrease 2020 2019 2018 2020 2019 2018 Loss (profit) for the year $ (2,493,673) (1,784,045) (135,586) $ 2,493,673 1,784,045 135,586 |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounts receivable, net | |
Schedule of accounts receivable, net | As of December 31, 2020, 2019 and 2018, accounts receivable are as follows: December 31, 2020 2019 2018 Trade receivables $ 2,772,418 2,595,978 2,523,950 Allowance for doubtful accounts (68,360) (72,886) (79,937) Income tax receivable 190,110 187,912 114,935 Recoverable value-added tax and other recoverable taxes 1,471,851 1,156,106 927,406 $ 4,366,019 3,867,110 3,486,354 |
Schedule of past-due but not impaired portfolio | Below is a classification of trade accounts receivable according to their aging as of the reporting date, which has not been subject to impairment: December 31, 2020 2019 2018 Past due at 60 days 18,811 20,463 144,604 Past due by more than 60 days 98,054 47,573 17,250 $ 116,865 68,036 161,854 |
Schedule of movements in allowance for doubtful accounts | Reconciliation of movements in allowance for doubtful accounts 2020 2019 2018 Balance as of January 1 $ (72,886) (79,937) (96,900) Increase in allowance (1,826) (57) (7,862) Amounts written off 6,458 7,030 24,826 Currency translation effect (106) 78 (1) Balance as of December 31, $ (68,360) (72,886) (79,937) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventories | |
Schedule of inventories | As of December 31, 2020, 2019 and 2018, inventories are as follows: December 31, 2020 2019 2018 Raw materials and by-products $ 2,410,275 1,836,783 1,688,527 Medicine, materials and spare parts 1,110,559 877,837 903,337 Balanced feed 380,121 330,238 322,522 Processed chicken 1,575,985 1,554,115 1,548,597 Commercial eggs 55,364 56,599 52,050 Processed beef 151,402 47,954 39,709 Processed turkey 2,472 4,482 10,762 Other processed products 2,160 2,199 10,092 Total $ 5,688,338 4,710,207 4,575,596 |
Biological assets (Tables)
Biological assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Biological assets | |
Schedule of biological assets | For the years ended December 31, 2020, 2019 and 2018, biological assets are as follows: Current Non-current biological assets biological assets Total Balance as of January 1, 2020 $ 2,043,234 1,818,910 3,862,144 Increase due to purchases 686,756 797,039 1,483,795 Sales — 20,966 20,966 Net increase due to births 264,386 2,507,769 2,772,155 Production cost 35,585,551 1,877,418 37,462,969 Depreciation — (2,565,283) (2,565,283) Transfers to inventories (36,786,599) (2,507,769) (39,294,368) Other 219,340 42,480 261,820 Balance as of December 31, 2020 $ 2,012,668 1,991,530 4,000,198 Current Non-current biological assets biological assets Total Balance as of January 1, 2019 $ 2,073,526 1,721,728 3,795,254 Increase due to purchases 510,403 701,764 1,212,167 Sales — (73,409) (73,409) Net increase due to births 267,773 2,378,419 2,646,192 Production cost 32,894,675 1,761,456 34,656,131 Depreciation — (2,262,245) (2,262,245) Transfers to inventories (33,651,137) (2,378,419) (36,029,556) Other (52,003) (30,383) (82,386) Balance as of December 31, 2019 $ 2,043,237 1,818,911 3,862,148 Current Non-current biological assets biological assets Total Balance as of January 1, 2018 $ 1,942,193 1,617,503 3,559,696 Increase due to purchases 334,710 629,902 964,612 Sales — (119,297) (119,297) Net increase due to births 274,286 2,292,178 2,566,464 Production cost 33,189,920 1,729,478 34,919,398 Depreciation — (2,136,224) (2,136,224) Transfers to inventories (33,690,071) (2,292,178) (35,982,249) Other 22,488 366 22,854 Balance as of December 31, 2018 $ 2,073,526 1,721,728 3,795,254 |
Prepaid expenses and other cu_2
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Prepaid expenses and other current assets | |
Schedule of prepaid expenses and other current assets | As of December 31, 2020, 2019 and 2018, prepaid expenses and other current assets are as follows: December 31, 2020 2019 2018 Advances to suppliers of inventories $ 613,188 628,286 704,563 Prepaid expenses for services 303,345 280,950 217,074 Prepaid expenses for insurance and sureties 74,565 128,178 129,582 Other current assets 230,157 189,782 80,651 Total $ 1,221,255 1,227,196 1,131,870 |
Assets held for sale (Tables)
Assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Assets held for sale | |
Schedule of assets held for sale | As of December 31, 2020, 2019 and 2018, assets held for sale are as follows: December 31, 2020 2019 2018 Buildings $ 24,208 22,394 18,920 Land 29,563 29,563 27,310 Other 859 959 2,839 Total $ 54,630 52,916 49,068 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, plant and equipment. | |
Schedule of property, plant and equipment | As of December 31, 2020, 2019 and 2018, property, plant and equipment are comprised as follows: Balance as of Currency Balance as of January 1, translation December 31, Cost 2020 Additions Disposals effect 2020 Land $ 1,553,499 102,847 (5,900) 4,982 1,655,428 Buildings and construction 12,340,405 686,270 (297,490) 92,008 12,821,193 Machinery and equipment 15,866,952 1,240,779 (145,320) 154,497 17,116,908 Transportation equipment 2,111,999 462,344 (130,089) 1,380 2,445,634 Computer equipment 134,481 13,784 (244) 3,096 151,117 Furniture 190,289 21,325 (6,463) 782 205,933 Leasehold improvements 3,598 4,439 — — 8,037 Construction in progress 1,459,922 220,493 — (4,521) 1,675,894 Total $ 33,661,145 2,752,281 (585,506) 252,224 36,080,144 Balance as of Currency Balance as of January 1 Depreciation translation December 31, Accumulated depreciation 2020 for the year Disposals effect 2020 Buildings and construction $ (5,750,971) (299,865) 229,718 (15,632) (5,836,750) Machinery and equipment (8,253,772) (1,048,758) 96,589 (61,396) (9,267,337) Transportation equipment (856,429) (204,384) 96,553 (1,275) (965,535) Computer equipment (107,016) (21,721) 160 (1,610) (130,187) Furniture (136,311) (15,575) 5,863 (490) (146,513) Total $ (15,104,499) (1,590,303) 428,883 (80,403) (16,346,322) Balance as of Currency Balance as of January 1, translation December 31, Cost 2019 Additions Disposals effect 2019 Land $ 1,378,090 209,752 (30,677) (3,666) 1,553,499 Buildings and construction 11,943,476 472,095 (7,478) (67,688) 12,340,405 Machinery and equipment 15,182,044 891,008 (92,623) (113,477) 15,866,952 Transportation equipment 1,792,273 474,960 (154,116) (1,118) 2,111,999 Computer equipment 136,183 3,828 (3,257) (2,273) 134,481 Furniture 178,455 17,684 (5,295) (555) 190,289 Leasehold improvements 4,350 — (752) — 3,598 Construction in progress 1,501,697 — (38,065) (3,710) 1,459,922 Total $ 32,116,568 2,069,327 (332,263) (192,487) 33,661,145 Balance as of Currency Balance as of January 1 Depreciation translation December 31, Accumulated depreciation 2019 for the year Disposals effect 2019 Buildings and construction $ (5,536,825) (230,450) 2,199 14,105 (5,750,971) Machinery and equipment (7,505,222) (874,447) 65,136 60,761 (8,253,772) Transportation equipment (829,664) (134,708) 106,955 988 (856,429) Computer equipment (98,034) (13,635) 3,145 1,508 (107,016) Furniture (128,647) (12,151) 4,109 378 (136,311) Total $ (14,098,392) (1,265,391) 181,544 77,740 (15,104,499) Balance as of Currency Balance as of January 1, translation December 31, Cost 2018 Additions Disposals effect 2018 Land $ 1,353,643 24,400 — 47 1,378,090 Buildings and construction 11,440,284 513,033 (11,546) 1,705 11,943,476 Machinery and equipment 14,021,881 1,255,026 (96,727) 1,864 15,182,044 Transportation equipment 1,773,153 101,645 (82,543) 18 1,792,273 Computer equipment 125,991 10,441 (318) 69 136,183 Furniture 169,752 12,985 (4,258) (24) 178,455 Leasehold improvements 2,661 1,689 — — 4,350 Construction in progress 1,435,147 63,364 — 3,186 1,501,697 Total $ 30,322,512 1,982,583 (195,392) 6,865 32,116,568 Balance as of Currency Balance as of January 1 Depreciation translation December 31, Accumulated depreciation 2018 for the year Disposals effect 2018 Buildings and construction $ (5,323,314) (221,565) 9,315 (1,261) (5,536,825) Machinery and equipment (6,706,824) (857,930) 66,578 (7,046) (7,505,222) Transportation equipment (771,406) (118,439) 60,276 (95) (829,664) Computer equipment (81,504) (16,598) 305 (237) (98,034) Furniture (119,423) (12,385) 3,218 (57) (128,647) Total $ (13,002,471) (1,226,917) 139,692 (8,696) (14,098,392) December 31, Carrying amounts, net 2020 2019 2018 Land $ 1,655,428 1,553,499 1,378,090 Buildings and construction 6,984,443 6,589,434 6,406,651 Machinery and equipment 7,849,571 7,613,180 7,676,822 Transportation equipment 1,480,099 1,255,570 962,609 Computer equipment 20,930 27,465 38,149 Furniture 59,420 53,978 49,808 Leasehold improvements 8,037 3,598 4,350 Construction in progress 1,675,894 1,459,922 1,501,697 Total $ 19,733,822 18,556,646 18,018,176 Additions of property, plant and equipment in 2020 include assets acquired through business combinations of $383,680 that consist of the following: Land $ 62,050 Buildings and construction 231,264 Machinery and equipment 73,332 Transportation equipment 4,825 Computer equipment 1,761 Furniture 1,115 Construction in progress 9,333 Total $ 383,680 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill. | |
Schedule of reconciliation of changes in goodwill | 2020 2019 2018 Balances at beginning of the year $ 1,578,994 1,631,771 1,631,094 Foreign currency effects 71,722 (52,777) 677 Balances at end of year $ 1,650,716 1,578,994 1,631,771 |
Schedule of assumptions and balances of each cash-generating unit | 2020 Annual Annual Final Projection discount growth balance of period rate rate Cash-generating unit the year (years) (%) (%) Bachoco - Istmo and Peninsula regions $ 212,833 5 12.95 % 3.00 % Campi 88,015 5 12.95 % 3.00 % Ok Farms - Morris Hatchery, Inc. Arkansas 66,162 5 3.43 % 0.00 % Ok Farms - Morris Hatchery Inc. Georgia 111,715 5 3.43 % 0.00 % Ok Foods- Albertville Quality Foods, Inc. 1,171,991 5 3.43 % 0.00 % $ 1,650,716 2019 Annual Annual Final Projection discount growth balance of period rate rate Cash-generating unit the year (years) (%) (%) Bachoco - Istmo and Peninsula regions $ 212,833 5 12.84 % 3.00 % Campi 88,015 5 12.84 % 3.00 % Ok Farms - Morris Hatchery, Inc. Arkansas 62,647 5 5.22 % 0.00 % Ok Farms - Morris Hatchery Inc. Georgia 105,780 5 5.22 % 0.00 % Ok Foods- Albertville Quality Foods, Inc. 1,109,719 5 5.22 % 0.00 % $ 1,578,994 2018 Annual Annual Final Projection discount growth balance of period rate rate Cash-generating unit the year (years) (%) (%) Bachoco - Istmo and Peninsula regions $ 212,833 5 13.17 % 3.00 % Campi 88,015 5 13.17 % 3.00 % Ok Farms - Morris Hatchery, Inc. Arkansas 65,233 5 5.87 % 0.00 % Ok Farms- Morris Hatchery Inc. Georgia 110,147 5 5.87 % 0.00 % Ok Foods- Albertville Quality Foods, Inc. 1,155,543 5 5.87 % 0.00 % $ 1,631,771 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Intangible assets | |
Schedule of Intangible assets | a) Intangible assets consist of the following: 2020 2019 2018 Amortizable intangible assets Customer relationships $ 941,582 891,553 1,020,500 Accumulated amortization (219,702) (74,859) (95,911) Impairment loss — (73,733) (6,139) Total net amortizable intangible assets 721,880 742,961 918,450 Trade names not subject to amortization 31,344 29,679 46,196 Impairment loss — — (15,291) Total intangible assets $ 753,224 772,640 949,355 |
Schedule of reconciliation between the carrying amounts at the beginning and at the end of the intangible assets | Trade names not subject Customer to relationships amortization Total Carrying amounts Balance as of January 1, 2020 $ 817,820 29,679 847,499 Additions — — — Currency translation effect 123,762 1,665 125,427 Balance as of December 31, 2020 941,582 31,344 972,926 Accumulated amortization Balance as of January 1, 2020 (74,859) — (74,859) Additions — — — Amortization expense (144,843) — (144,843) Balance as of December 31, 2020 (219,702) — (219,702) Total intangible assets $ 721,880 31,344 753,224 Trade names not subject Customer to relationships amortization Total Carrying amounts Balance as of January 1, 2019 $ 1,014,361 30,905 1,045,266 Additions — — — Impairment loss (73,733) — (73,733) Currency translation effect (122,808) (1,226) (124,034) Balance as of December 31, 2019 817,820 29,679 847,499 Accumulated amortization Balance as of January 1, 2019 (95,911) — (95,911) Additions — — — Amortization expense 21,052 — 21,052 Balance as of December 31, 2019 (74,859) — (74,859) Total intangible assets $ 742,961 29,679 772,640 |
Other non-current assets (Table
Other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other non-current assets. | |
Schedule of Other non-current assets | Other non-current assets consist of the following: December 31, 2020 2019 2018 Advances for purchase of property, plant and equipment $ 472,828 495,015 326,676 Investments in life insurance (note 3 (l)) 71,431 65,545 66,177 Security deposits 23,476 21,545 20,745 Other long-term receivable 193,689 173,488 171,222 Intangible assets in process 2,996 2,841 26,898 Other 54,502 51,614 54,024 Total non-current assets $ 818,922 810,048 665,742 |
Financial debt (Tables)
Financial debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial debt | |
Schedule of Short-term financial debt | December 31, 2020 2019 2018 Loan denominated in pesos, maturing in January 2019, at TIIE (1) FIRA (2) rate plus 1.25 percentage points. $ — — 100,306 Loan in the amount of 140,000 thousand dollars, maturing in February 2019, at fixed rate 2.29 percentage points. — — 2,757,460 Loan denominated in pesos, maturing in February 2019, at TIIE (1) rate plus 1.25 percentage points. — — 300,028 Loan denominated in pesos, maturing in March 2019, at TIIE (1) rate plus 1.25 percentage points. — — 250,023 Loan denominated in pesos, maturing in May 2019, at TIIE (1) rate plus 0.40 percentage points. — — 20,003 Loan in the amount of 70,000 thousand dollars, maturing in January 2020, at LIBOR (3) rate plus 0.62 percentage points. — 1,322,176 — Loan denominated in pesos, maturing in January 2020, at TIIE (1) rate plus 0.50 percentage points. — 50,000 — Loan in the amount of 80,000 thousand dollars, maturing in February 2020, at LIBOR6 (4) rate plus 0.35 percentage points. — 1,509,015 — Loan denominated in pesos, maturing in February 2020, at TIIE (1) rate plus 1.05 percentage points. — 449,572 — Loan denominated in pesos, maturing in May 2020, at TIIE (1) rate plus 1.05 percentage points. — 99,678 — Loan denominated in pesos, maturing in June 2020, at TIIE (1) rate plus 0.50 percentage points. — 9,958 — Loan in the amount of 39,000 thousand dollars, maturing in January 2021, at LIBOR (3) rate plus 0.60 percentage points. 778,050 — — Loan denominated in pesos, maturing in February 2021, at TIIE (1) rate plus 0.90 percentage points. 70,011 — — Total short-term debt $ 848,061 3,440,399 3,427,820 (1) TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate (2) FIRA (for its acronym in Spanish) = Agriculture Trust Funds (3) LIBOR= London Interbank Offered Rate (4) LIBOR6= London InterBank Offered Rate (6 months) |
Schedule of Long-term debt | December 31, 2020 2019 2018 Loan denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.25 percentage points. $ — — 53,980 Loan denominated in pesos, maturing in 2023, at TIIE (1) FIRA (2) plus 0 percentage points. — — 55,007 Loan denominated in pesos, maturing in May 2021, at TIIE (1) plus 1.05 percentage points. 209,499 — — Debt securities (subsection (d) of this note) 1,460,405 1,488,208 1,500,793 Total 1,669,904 1,488,208 1,609,780 Less current maturities (209,499) — (64,973) Long-term debt, excluding current maturities $ 1,460,405 1,488,208 1,544,807 |
Schedule of Maturities of long-term debt | c) Maturities of long-term debt, excluding current maturities, as of December 31, 2020, are as follows: Year Amount 2022 $ 1,460,405 |
Reconciliation of liabilities arising from financing activities | December 31, 2020 2019 2018 Balance as of January 1 $ 4,928,607 5,037,600 5,249,024 Changes that represent cash flows Proceeds from borrowings 4,030,700 4,839,000 3,370,400 Principal payment on loans (6,762,222) (4,808,163) (3,588,067) Changes that do not represent cash flows Other 320,880 (139,830) 6,243 Balance as of December 31 $ 2,517,965 4,928,607 5,037,600 |
Trade accounts and other acco_2
Trade accounts and other accounts payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Trade accounts and other accounts payable | |
Schedule of trade accounts and other accounts payable | December 31, 2020 2019 2018 Trade payables $ 4,516,424 3,972,460 3,996,014 Sundry creditors and expenses payable 532,679 518,711 597,330 Provisions 24,099 64,154 103,494 Statutory employee profit sharing 62,075 86,710 68,432 Retained payroll taxes and other local taxes 375,086 275,214 259,828 Direct employee benefits 232,083 213,345 160,431 Interest payable 10,575 28,060 10,728 Others 116 173 90 $ 5,753,137 5,158,827 5,196,347 |
Transactions and balances wit_2
Transactions and balances with related parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Transactions and balances with related parties | |
Schedule of compensation paid to the directors and executives for services | The following table shows the compensation paid to the directors and executives for services provided in their respective positions for the years ended December 31, 2020, 2019 and 2018: December 31, 2020 2019 2018 Compensation $ 57,429 52,635 61,189 |
Schedule of Company's transactions and balances with other related parties | i. Revenues and balances receivable to related parties Transaction value Balance as of December 31, December 31, 2020 2019 2018 2020 2019 2018 Sales of products to: Vimifos, S.A. de C.V. $ 4,055 9,323 8,812 $ 400 785 99 Frescopack, S.A. de C.V. 53 58 — — 58 — Taxis Aéreos del Noroeste, S.A. de C.V. 31 42 28 — — — Alimentos Kowi, S.A. de C.V. 832 934 — 286 337 — Sonora Agropecuaria, S.A. DE C.V. 123,756 178,624 — — 12,494 — $ 128,727 188,981 8,840 $ 686 13,674 99 ii. Expenses and balances payable to related parties Transaction value Balance as of December 31, December 31, 2020 2019 2018 2020 2019 2018 Purchases of food, raw materials and packing supplies Vimifos, S.A. de C.V. $ 411,129 582,458 557,490 $ 58,836 41,399 103,371 Frescopack, S.A. de C.V. 143,849 148,210 193,396 9,554 26,233 28,951 Pulmex 2000, S.A. de C.V. 21,414 20,667 37,794 2,407 3,976 5,227 Qualyplast, S.A. de C.V. 1,184 244 230 251 — 41 Alimentos Kowi, S.A. de C.V. — 907 — — 2 — Sonora Agropecuaria, S.A. de C.V. 4,425 3,374 — — — — Purchases of vehicles, tires and spare parts Maquinaria Agrícola, S.A. de C.V. $ — — — 5 5 64 Llantas y Accesorios, S.A. de C.V. 42,554 38,947 38,581 6,378 4,213 3,374 Autos y Accesorios, S.A. de C.V. 48,129 10,776 18,776 339 124 4,712 Autos y Tractores de Culiacán, S.A. de C.V. 42,857 11,519 17,671 336 149 1,486 Camiones y Tractocamiones de Sonora, S.A. de C.V. 91,098 270,968 19,490 2,636 149 216 Agencia MX-5, S.A de C.V. 63 904 47 6 9 7 Alfonso R. Bours, S.A. de C.V. 2,651 187 307 50 49 40 Cajeme Motors S.A. de C.V. 287 183 30 44 89 5 Airplane leasing expenses Taxis Aéreos del Noroeste, S.A. de C.V. $ — 24,971 8,368 — 307 20 $ 80,842 76,704 147,514 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax | |
Schedule of income tax (benefit) expense included in profit and loss | For the years ended December 31, 2020, 2019 and 2018, the income tax (benefit) expense included in profit and loss is as follows: December 31 2020 2019 2018 Operation in Mexico: Current ISR $ 1,321,021 1,066,160 1,242,553 Deferred ISR 341,131 324,415 (33,718) 1,662,152 1,390,575 1,208,835 Foreign operations: Current ISR 33 (1,859) 4,294 Deferred ISR (450,574) (263,738) (58,151) Total ISR expense $ 1,211,611 1,124,978 1,154,978 |
Schedule of income tax expense attributable to income before income taxes | The income tax expense attributable to income before income taxes differed from the amount computed by applying the ISR rate of 30% in 2020, 2019 and 2018 due to the items listed below: December 31, 2020 2019 2018 ISR Percentage ISR Percentage ISR Percentage Expected expense $ 1,555,111 30 % $ 1,292,925 30 % $ 1,354,965 30 % Increase (decrease) resulting from: Net effects of inflation (196,379) (4) % (168,822) (4) % (276,758) (6) % (Non-taxable income) Non-deductible expenses 7,641 0 % 11,027 0 % 16,648 0 % Effect of rate difference of foreign subsidiary 20,907 0 % 48,658 1 % (16,572) (0) % Effect from non-deductible employee benefits 115,496 2 % 70,202 2 % 90,820 2 % Effect of tax incentive (69,920) (1) % (60,861) (1) % — — Effect of carryback tax losses in the United States of America (1) (190,144) (4) % — — — — Bargain purchase gain of domestic business acquisition (27,267) (0) % — — — — Other (3,834) (0) % (68,151) (2) % (14,126) (0) % Income tax expense $ 1,211,611 23 % $ 1,124,978 26 % $ 1,154,978 26 % |
Schedule of tax effects of temporary differences, tax losses and tax credits | The tax effects of temporary differences, tax losses and tax credits that give rise to significant portions of deferred tax assets and liabilities as of December 31, 2020, 2019 and 2018 are detailed below: December 31, 2020 2019 2018 Deferred tax assets Accounts payable $ 2,207 2,481 27,738 Employee benefits 199,087 164,019 53,398 PTU payable 16,690 26,020 20,536 Tax loss carryforwards 60,354 56,163 — Inventories — 616 — Property, plant and equipment 1,696 1,113 — Other provisions 648 — 2,205 Total deferred tax assets 280,682 250,412 103,877 Deferred tax liabilities Property, plant and equipment — — 51 Prepaid expenses 2,872 4,593 — Other provisions 7,655 547 — Derivative financial instruments 8,221 — — Total deferred tax liabilities 18,748 5,140 51 Net deferred tax assets $ 261,934 245,272 103,826 December 31, 2020 2019 2018 Deferred tax assets Accounts payable $ 1,090,676 1,097,422 1,483,275 PTU payable 1,037 Tax loss carryforwards 606,935 271,772 59,883 Goodwill — — 3,879 Other provisions 144,861 63,314 76,025 Total deferred tax assets 1,843,509 1,432,508 1,623,062 Deferred tax liabilities Inventories 1,820,929 1,696,300 1,639,156 Accounts receivable 497,655 445,198 366,825 Property, plant and equipment 2,915,222 2,667,824 2,503,172 Prepaid expenses 286,844 332,392 647,480 Goodwill 5,147 584 — Intangible assets 188,919 190,900 233,749 Derivative financial instruments 3,773 3,803 — Total deferred tax liabilities 5,718,489 5,337,001 5,390,382 Net deferred tax liability $ 3,874,980 3,904,493 3,767,320 |
Schedule of Movement in temporary differences during the fiscal year | Acquired or/ Recognized Recognized January 1, in profit directly in December 31, 2020 and loss equity 2020 Accounts payable $ (1,099,903) 8,163 (1,143) (1,092,883) Employee benefits (164,060) (35,027) — (199,087) PTU payable (26,020) 8,293 — (17,727) Tax loss carryforwards (327,935) (314,628) (24,726) (667,289) Interest carryforwards — 1,551 (1,551) — Other provisions (62,767) (74,804) (283) (137,854) Goodwill 584 4,371 192 5,147 Intangible assets 190,900 (12,248) 10,267 188,919 Inventories 1,695,684 114,135 11,110 1,820,929 Accounts receivable 445,198 52,457 — 497,655 Property, plant and equipment 2,666,752 177,372 69,402 2,913,526 Prepaid expenses 336,985 (47,269) — 289,716 Derivative financial instruments 3,803 8,191 — 11,994 Net deferred tax liability $ 3,659,221 (109,443) 63,268 3,613,046 Acquired or/ Recognized Recognized January 1, in profit directly in December 31, 2019 and loss equity 2019 Accounts payable $ (1,511,013) 410,152 958 (1,099,903) Employee benefits (53,398) (197,728) 87,107 (164,060) PTU payable (20,536) (5,484) — (26,020) Tax loss carryforwards (59,883) (273,479) 5,427 (327,935) Other provisions (78,230) 15,436 27 (62,767) Goodwill (3,879) 4,391 72 584 Intangible assets 233,749 (34,220) (8,629) 190,900 Inventories 1,639,156 64,120 (7,592) 1,695,684 Accounts receivable 366,825 78,373 — 445,198 Property, plant and equipment 2,503,223 184,454 (20,966) 2,666,752 Prepaid expenses 647,480 (310,495) — 336,985 Derivative financial instruments — 3,803 — 3,803 Net deferred tax liability $ 3,663,494 (60,677) 56,404 3,659,221 Acquired or/ Recognized Recognized January 1, in profit directly in December 31, 2018 and loss equity 2018 Accounts payable $ (1,187,175) (323,784) (54) (1,511,013) Employee benefits (45,519) (1,317) (6,562) (53,398) PTU payable (12,917) (7,619) — (20,536) Tax loss carryforwards (22,013) (37,004) (866) (59,883) Other provisions (61,045) (17,240) 55 (78,230) Goodwill (7,562) 3,604 79 (3,879) Intangible assets 253,898 (19,825) (324) 233,749 Inventories 1,601,498 37,319 339 1,639,156 Accounts receivable 421,191 (54,366) — 366,825 Property, plant and equipment 2,428,417 74,819 (13) 2,503,223 Prepaid expenses 393,936 253,544 — 647,480 Net deferred tax liability $ 3,762,709 (91,869) (7,346) 3,663,494 |
Schedule of tax on assets and tax loss carryforwards and its expiration period | As of December 31, 2020, tax loss carryforwards expire as shown below. Amounts are indexed for inflation as permitted by Mexican income tax law: Amount as of December 31, 2020 Tax loss Year of expiration / Year carryforwards maturity 2017 $ 59,033 2018 199,632 2019 1,250,964 2020 1,535,909 $ 3,045,538 |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Employee benefits | |
Schedule of defined benefits plan | The projected net liability presented on the consolidated statements of financial position is as follows: December 31, 2020 2019 2018 Present value of unfunded obligations $ 592,294 487,810 302,818 Present value of funded obligations 163,651 148,392 197,254 Total present value of benefit obligations ("PBO") 755,945 636,202 500,072 Plan assets at fair value (163,651) (148,392) (197,254) Projected liability, net $ 592,294 487,810 302,818 |
Schedule of composition and return of plan assets | i. Composition and return of plan assets Actual return of the plan assets Composition of the plan assets 2020 2019 2018 2020 2019 2018 Fixed income securities 11.28 % 12.67 % 5.10 % 63 % 62 % 67 % Variable income securities 9.47 % 15.65 % (10.95) % 37 % 38 % 33 % Total 100 % 100 % 100 % |
Schedule of movements in the present value of defined benefit obligations (PBO) | ii. Movements in the present value of PBO 2020 2019 2018 PBO as of January 1 $ 636,202 500,072 462,986 Benefits paid by the plan (78,149) (54,932) (38,393) Service cost 38,987 30,108 28,084 Interest cost 53,343 50,421 41,410 Actuarial losses recognized in other comprehensive income 105,562 110,533 494 Past service cost – plan amendments — — 5,491 PBO as of December 31 $ 755,945 636,202 500,072 |
Schedule of movements in the fair value of plan assets | iii. Movements in the fair value of plan assets 2020 2019 2018 Plan assets at fair value as of January 1 $ 148,392 197,247 259,245 Transfer of assets to fund defined contribution benefit plan — (39,079) (38,327) Benefits paid by the plan — (32,027) (16,772) Expected return on plan assets 13,678 19,615 23,244 Actuarial losses in other comprehensive income 1,581 2,636 (30,136) Fair value of plan assets as of December 31 $ 163,651 148,392 197,254 |
Schedule of expense recognized in profit and loss | iv. Expense recognized in profit and loss 2020 2019 2018 Current service cost $ 38,987 30,108 28,084 Interest cost, net 39,665 30,806 18,166 $ 78,652 60,914 46,250 |
Schedule of actuarial gains and (losses) | v. Actuarial gains and (losses) 2020 2019 2018 Amount accumulated as of January, 1 $ (279,144) (171,247) (140,617) Recognized during the year (103,982) (107,897) (30,630) Amount accumulated as of December, 31 $ (383,126) (279,144) (171,247) |
Schedule of actuarial assumptions | vi. Actuarial assumptions Primary actuarial assumptions at the consolidated financial statements date (expressed as weighted averages) are as follows. 2020 2019 2018 Discount rate as of December, 31 7.75 % 8.75 % 10.50 % Rate for future salary increases 4.50 % 4.50 % 4.50 % Social security wage increase rate 3.50 % 3.50 % 3.50 % |
Schedule of historical information | vii. Historical information December 31, 2020 2019 2018 Present value of defined benefit obligation $ 755,945 636,202 500,072 Plan assets at fair value (163,651) (148,392) (197,254) Plan deficit $ 592,294 487,810 302,818 Experience adjustments arising from plan liabilities $ (105,562) (110,533) (494) Experience adjustments arising from plan assets $ 1,581 2,636 (30,136) |
Schedule of sensitivity analysis of the defined benefits obligations | viii. Sensitivity analysis of the defined benefits obligations as of December 31, 2020, 2019 and 2018 Pension Seniority Constructive Total 2020 plan premium obligation PBO Discount rate 7.75% $ (531,251) (203,282) (21,412) (755,945) Rate increase (+ 1%) $ (511,884) (200,058) (21,209) (733,151) Rate decrease (- 1%) $ (554,180) (206,605) (21,619) (782,404) Pension Seniority Constructive Total 2019 plan premium obligation PBO Discount rate 8.75% $ (442,133) (173,401) (20,668) (636,202) Rate increase (+ 1%) $ (434,134) (170,812) (20,490) (625,436) Rate decrease (- 1%) $ (450,391) (176,067) (20,852) (647,310) Pension Seniority Constructive Total 2018 plan premium obligation PBO Discount rate 10.50% $ (358,635) (119,973) (21,464) (500,072) Rate increase (+ 1%) $ (313,585) (109,872) (20,258) (443,715) Rate decrease (- 1%) $ (364,699) (121,572) (21,649) (507,920) |
Schedule of expected cash flows | ix. Expected cash flows Total 2021‑2031 $ 640,387 |
Costs and expenses by nature (T
Costs and expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Costs and expenses by nature | |
Schedule of costs and expenses by nature | 2020 2019 2018 Cost of sales $ 57,707,566 51,557,351 51,422,376 General, selling and administrative expenses 6,420,397 6,116,620 6,024,406 Total costs and expenses $ 64,127,963 57,673,971 57,446,782 Inventory consumption $ 44,747,933 39,823,395 40,115,184 Wages and salaries 8,507,124 7,561,229 7,348,795 Freight 5,037,768 5,047,007 4,809,678 Maintenance 2,006,848 1,715,820 1,719,907 Other utility expenses 1,402,459 1,595,993 1,591,920 Depreciation 1,590,303 1,265,391 1,226,917 Depreciation of right-of-use assets 307,757 302,804 — Leases (1) 119,592 96,825 453,162 Other 408,179 265,507 181,219 Total $ 64,127,963 57,673,971 57,446,782 (1) Leasing expense in 2020 and 2019 includes contracts classified as low value or those with terms less than twelve months. The expense corresponding to the 2018 annual period includes everything previously classified as operating leases under IAS 17 - Leases, which was replaced by IFRS 16 Leases. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases | |
Schedule of operating lease expenses recognized | 2018 Lease expenses $ 453,162 |
Summary of leased assets with recognized right of use | Balance as of Balance as of January 1, Modifications December 31, Right-of-use assets 2020 Additions and disposal 2020 Buildings and construction $ 380,011 101,272 (11,896) 469,387 Machinery and equipment 447,179 39,020 (38,775) 447,424 Transportation equipment 283,332 4,767 61,109 349,208 Computer equipment 15,014 2,572 1,806 19,392 Total $ 1,125,536 147,631 12,244 1,285,411 Depreciation of right-of-use assets Balance as of Currency Balance as of January 1, Depreciation translation December 31, 2020 for the year effect 2019 Buildings and construction $ (97,736) (58,148) 1,897 (153,987) Machinery and equipment (116,391) (119,740) (199) (236,330) Transportation equipment (84,120) (126,211) 3,704 (206,627) Computer equipment (4,557) (3,658) (1,407) (9,622) Total $ (302,804) (307,757) 3,995 (606,566) Total right-of-use assets $ 822,732 678,845 Balance as of Balance as of December 31, Right-of-use assets January 1 Additions 2019 Buildings and construction $ 320,528 59,483 380,011 Machinery and equipment 370,410 76,769 447,179 Transportation equipment 219,132 64,200 283,332 Computer equipment 12,340 2,674 15,014 Total $ 922,410 203,126 1,125,536 Balance as of December 31, Depreciation of right-of-use assets 2019 Buildings and construction $ (97,736) Machinery and equipment (116,391) Transportation equipment (84,120) Computer equipment (4,557) Total $ (302,804) Total right-of-use assets $ 822,732 |
Summary of movements in liabilities for these lease contracts | Balance as of Currency Balance as of January 1, Modifications Interest translation December 31, Lease liabilities 2020 Additions and disposals Payment paid effect 2020 Buildings and construction $ 280,277 101,272 31,213 (121,909) 17,903 1,258 310,014 Machinery and equipment 308,710 39,020 (19,990) (143,240) 26,143 28,007 238,650 Transportation equipment 204,258 4,767 57,473 (115,851) 9,228 2,517 162,392 Computer equipment 9,805 2,572 1,560 (5,710) 365 63 8,655 Total $ 803,050 147,631 70,256 (386,710) 53,639 31,845 719,711 Current Lease liabilities (149,538) (123,276) — — — (6,167) (278,981) Long term lease liabilities $ 653,512 24,355 70,256 (386,710) 53,639 25,678 440,730 Balance as of Currency Balance as January 1, Interest translation of December Lease liabilities 2019 Additions Payment paid effect 31, 2019 Buildings and construction $ 320,528 59,297 (113,097) 17,423 (3,874) 280,277 Machinery and equipment 370,410 63,662 (124,435) 11,933 (12,860) 308,710 Transportation equipment 219,132 64,129 (82,381) 8,070 (4,692) 204,258 Computer equipment 12,340 2,674 (5,294) 371 (286) 9,805 Total $ 922,410 189,762 (325,207) 37,797 (21,712) 803,050 Current Lease liabilities — — — — — (149,538) Long term lease liabilities $ — — — — — 653,512 |
Summary of Maturity Analysis of Operating Lease Payment | 2022 $ 184,407 2023 137,727 2024 57,792 Subsequent 60,804 $ 440,730 |
Stockholders' equity and rese_2
Stockholders' equity and reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' equity and reserves | |
Schedule of sale of the shares, the Company's capital stock | Shareholding integration as of December 31, 2020, 2019 and 2018 Shares (1) Position Familiar Trusts 439,500,000 73.25 % - Control Trust 312,000,000 52.00 % - Placement Trust 127,500,000 21.25 % Floating Position (2) 160,500,000 26.75 % (1) All Series B shares with voting power. (2) Operating at the BMV and the NYSE. |
Schedule of stockholders with 1% or more interest stockholders with 1% or more interest in the Company | Based on the information provided to the Company, as of December 31, 2020, stockholders with 1% or more interest in the Company, in addition to the family trusts, are as follows: Shares Position Renaissance Technologies LLC 8,058,540 1.34 % GBM Fondo de Inversión Total, S.A. de C.V. 7,336,703 % |
Schedule of movements of the reserve for acquisition of shares | The following table shows the movements of the reserve for acquisition of shares during the years ended December 31, 2020, 2019 and 2018: 2020 2019 2018 Balance as of January 1 100,396 86,928 20,000 (+) Total shares purchased 212,860 133,488 86,928 (-) Total shares sold (160,488) (120,020) (20,000) Balance as of December 31 152,768 100,396 86,928 |
Schedule of tax balances of stockholders' equity | Balance as Balance CUFIN 2013 from 2014 Total IBSA individual $ 6,257,362 9,007,377 15,264,739 IBSA Consolidated 6,587,262 21,437,186 28,024,448 |
Financial income and costs (Tab
Financial income and costs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial income and costs | |
Schedule of financial income and costs | 2020 2019 2018 Interest income $ 698,962 988,005 1,072,991 Income from interest in accounts receivable 7,024 3,627 4,516 Foreign exchange gain, net 467,534 — 39,323 Effects of valuation of derivative financial instruments — — 23,919 Financial income 1,173,520 991,632 1,140,749 Effects of valuation of derivative financial instruments (291) (8,029) — Foreign exchange loss, net — (272,220) — Interest expense and financial expenses on financial debt (159,169) (250,820) (185,913) Interest paid on lease (53,639) (37,797) — Commissions and other financial expenses (78,230) (41,502) (146,255) Financial costs (291,329) (610,368) (332,168) Financial income, net $ 882,191 381,264 808,581 |
Other (expenses) income (Tables
Other (expenses) income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other (expenses) income | |
Schedule of other (expenses) income | 2020 2019 2018 Other income Sale of scrap of biological assets, raw materials, by-products and other $ 866,027 1,203,836 1,041,677 Bargain purchase gain of domestic business acquisition (note 4) 90,889 — — Total other income 956,916 1,203,836 1,041,677 Other expenses Cost of disposal of biological assets, raw materials, by-products and other (825,415) (944,848) (737,077) Other (494,028) (263,722) (201,940) Total other expenses (1,319,443) (1,208,570) (939,017) Total other (expenses) income, net $ (362,527) (4,734) 102,660 |
Basis of preparation (Details)
Basis of preparation (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Basis of preparation | ||||
Closing foreign exchange rate | 19.95 | 18.89 | 19.67 | |
Right-of-use assets | $ 1,285,411 | $ 1,125,536 | $ 922,410 | |
Depreciation, right-of-use assets | 606,566 | 302,804 | ||
Interest paid on lease | 53,639 | 37,797 | ||
Payment of lease liability | $ 386,710 | $ 325,207 | ||
Non-recurring expenses incurred due to COVID | $ 339,000 |
Significant accounting polici_4
Significant accounting policies - Estimated useful lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | |
Disclosure Of Significant Accounting Policies | |
Useful lives or depreciation rates, property, plant and equipment | 46 years |
Machinery and Equipment | |
Disclosure Of Significant Accounting Policies | |
Useful lives or depreciation rates, property, plant and equipment | 19 years |
Vehicles | |
Disclosure Of Significant Accounting Policies | |
Useful lives or depreciation rates, property, plant and equipment | 11 years |
Computer | |
Disclosure Of Significant Accounting Policies | |
Useful lives or depreciation rates, property, plant and equipment | 8 years |
Furniture | |
Disclosure Of Significant Accounting Policies | |
Useful lives or depreciation rates, property, plant and equipment | 11 years |
Significant accounting polici_5
Significant accounting policies - Estimated residual values (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings | |
Disclosure Of Significant Accounting Policies | |
Estimated rates of residual, property, plant and equipment | 9.00% |
Machinery and Equipment | |
Disclosure Of Significant Accounting Policies | |
Estimated rates of residual, property, plant and equipment | 8.00% |
Vehicles | |
Disclosure Of Significant Accounting Policies | |
Estimated rates of residual, property, plant and equipment | 5.00% |
Computer | |
Disclosure Of Significant Accounting Policies | |
Estimated rates of residual, property, plant and equipment | 0.00% |
Furniture | |
Disclosure Of Significant Accounting Policies | |
Estimated rates of residual, property, plant and equipment | 2.00% |
Significant accounting polici_6
Significant accounting policies - Estimated Depreciation of poultry and breeder pigs (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Poultry in its different production stages [Member] | Bottom of range [member] | |
Disclosure Of Significant Accounting Policies | |
Expected avg useful life | 280 days |
Poultry in its different production stages [Member] | Top of range [member] | |
Disclosure Of Significant Accounting Policies | |
Expected avg useful life | 329 days |
Breeder pigs [Member] | |
Disclosure Of Significant Accounting Policies | |
Expected avg useful life | 1092 days |
Business and asset acquisitio_3
Business and asset acquisitions - Sonora Agropecuaria, S.A. de C.V (Details) - MXN ($) $ in Thousands | Jun. 26, 2020 | Jan. 26, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Business And Asset Acquisitions [Line Items] | |||||
Bargain purchase gain (note 30) | $ 90,889 | $ 0 | $ 0 | ||
Sonora Agropecuaria, S.A. de C.V. | |||||
Disclosure Of Business And Asset Acquisitions [Line Items] | |||||
Current assets, other than inventories | $ 349,834 | ||||
Inventories | 123,959 | ||||
Property, plant and equipment | 383,680 | ||||
Total assets | 857,473 | ||||
Current liabilities | (263,365) | ||||
Deferred income tax | (35,916) | ||||
Acquired net identifiable assets, net | 558,192 | ||||
Controlling interest | 305,889 | ||||
Non-controlling interest | 252,303 | ||||
Consideration paid | $ 215,000 | 215,000 | |||
Bargain purchase gain (note 30) | $ 90,889 |
Business and asset acquisitio_4
Business and asset acquisitions - Additional information (Details) - Sonora Agropecuaria, S.A. de C.V. - MXN ($) $ in Thousands | Jun. 26, 2020 | Jan. 26, 2020 | Dec. 31, 2020 |
Disclosure Of Business And Asset Acquisitions [Line Items] | |||
Percentage of voting equity interests acquired | 54.80% | ||
Consideration paid | $ 215,000 | $ 215,000 | |
Revenue of combined entity as if combination occurred at beginning of period | $ 70,337,002 | ||
Profit (loss) of combined entity as if combination occurred at beginning of period | 3,991,092 | ||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | $ 1,704 |
Subsidiaries of the Company (De
Subsidiaries of the Company (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Bachoco SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 51.00% | ||
MEXICO | Bachoco SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | Campi Alimentos SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | Induba Pavos SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | Bachoco Comercial SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | PEC LAB SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 64.00% | 64.00% | 64.00% |
MEXICO | Aviser SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | Operadora de Servicios de Personal SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | Secba SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | Servicios de Personal Administrativo SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | Sepetec SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
MEXICO | Proveedora La Perla SA of CV [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
MEXICO | SonoraAgropecuariaS.a.DeC.v. [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 54.80% | 0.00% | 0.00% |
UNITED STATES | Bachoco USA LLC Subsidiary [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
BERMUDA | Wii kit RE LTD [Member] | |||
Disclosure Of Subsidiaries Of Company | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Operating segments - Operating
Operating segments - Operating segment information (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||||
Net revenues | $ 68,792,002 | $ 61,655,245 | $ 61,052,092 | |
Cost of sales | 57,707,566 | 51,557,351 | 51,422,376 | |
Gross profit | 11,084,436 | 10,097,894 | 9,629,716 | |
Finance income | 1,173,520 | 991,632 | 1,140,749 | |
Finance costs | 291,329 | 610,368 | 332,168 | |
Income before taxes | 5,183,703 | 4,357,804 | 4,516,551 | |
Income taxes | 1,211,611 | 1,124,978 | 1,154,978 | |
Net income attributable to controlling interest | 3,935,672 | 3,219,931 | 3,349,967 | |
Property, plant and equipment, net | 19,733,822 | 18,556,646 | 18,018,176 | |
Goodwill | 1,650,716 | 1,578,994 | 1,631,771 | $ 1,631,094 |
Intangible assets | 753,224 | 772,640 | 949,355 | |
Total assets | 58,475,000 | 55,702,491 | 52,865,594 | |
Total liabilities | 14,548,192 | 15,442,156 | 14,699,889 | |
Purchases of property, plant and equipment | 2,752,281 | 2,069,327 | 1,982,583 | |
Depreciation and amortization | 1,735,146 | 1,286,443 | 1,226,917 | |
Elimination of intersegment amounts [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | (46,973) | (39,172) | (45,470) | |
Total revenues | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 68,838,975 | 61,694,417 | 61,097,562 | |
Poultry revenues segment | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 61,323,853 | 55,653,027 | 55,308,141 | |
Cost of sales | 51,165,650 | 46,456,076 | 46,562,214 | |
Gross profit | 10,158,203 | 9,196,951 | 8,745,927 | |
Finance income | 998,654 | 860,140 | 1,094,377 | |
Finance costs | 260,570 | 529,226 | 288,703 | |
Income before taxes | 4,626,582 | 3,854,474 | 4,025,050 | |
Income taxes | 1,060,876 | 993,652 | 1,028,335 | |
Net income attributable to controlling interest | 3,532,589 | 2,849,145 | 2,986,328 | |
Property, plant and equipment, net | 17,146,405 | 16,440,851 | 16,060,590 | |
Goodwill | 1,562,404 | 1,490,978 | 1,543,755 | |
Intangible assets | 753,224 | 772,640 | 962,738 | |
Total assets | 51,081,829 | 49,533,440 | 47,205,252 | |
Total liabilities | 13,144,941 | 14,066,224 | 13,364,922 | |
Purchases of property, plant and equipment | 1,978,818 | 1,811,086 | 1,747,286 | |
Depreciation and amortization | 1,542,031 | 1,171,200 | 1,121,751 | |
Poultry revenues segment | Elimination of intersegment amounts [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | (8,160) | (3,618) | (4,132) | |
Poultry revenues segment | Total revenues | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 61,332,013 | 55,656,645 | 55,312,273 | |
Other Segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 7,468,149 | 6,002,218 | 5,743,951 | |
Cost of sales | 6,541,916 | 5,101,275 | 4,860,162 | |
Gross profit | 926,233 | 900,943 | 883,789 | |
Finance income | 174,866 | 131,492 | 46,372 | |
Finance costs | 30,759 | 81,142 | 43,465 | |
Income before taxes | 557,121 | 503,330 | 491,501 | |
Income taxes | 150,735 | 131,326 | 126,643 | |
Net income attributable to controlling interest | 403,083 | 370,786 | 363,639 | |
Property, plant and equipment, net | 2,587,417 | 2,115,795 | 1,957,586 | |
Goodwill | 88,312 | 88,016 | 88,016 | |
Intangible assets | 0 | (13,383) | ||
Total assets | 7,393,171 | 6,169,051 | 5,660,342 | |
Total liabilities | 1,403,251 | 1,375,932 | 1,334,967 | |
Purchases of property, plant and equipment | 773,463 | 258,241 | 235,297 | |
Depreciation and amortization | 193,115 | 115,243 | 105,166 | |
Other Segments [Member] | Elimination of intersegment amounts [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | (38,813) | (35,554) | (41,338) | |
Other Segments [Member] | Total revenues | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | $ 7,506,962 | $ 6,037,772 | $ 5,785,289 |
Operating segments - Geographic
Operating segments - Geographical information (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of operating segments [line items] | ||||
Net revenues | $ 68,792,002 | $ 61,655,245 | $ 61,052,092 | |
Non-current biological assets | 1,991,530 | 1,818,911 | 1,721,728 | |
Property, plant and equipment, net | 19,733,822 | 18,556,646 | 18,018,176 | |
Goodwill | 1,650,716 | 1,578,994 | 1,631,771 | $ 1,631,094 |
Intangible assets | 753,224 | 772,640 | 949,355 | |
Domestic poultry [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 41,835,033 | 38,778,025 | 37,766,974 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies | 0 | 0 | 0 | |
Non-current biological assets | 1,185,308 | 1,058,126 | 979,034 | |
Property, plant and equipment, net | 14,659,461 | 13,799,774 | 13,002,755 | |
Goodwill | 212,536 | 212,833 | 212,833 | |
Intangible assets | 0 | 0 | ||
Foreign poultry [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 19,573,023 | 16,931,735 | 17,599,239 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies | 0 | 0 | 0 | |
Non-current biological assets | 806,222 | 760,785 | 742,694 | |
Property, plant and equipment, net | 2,486,944 | 2,641,077 | 3,057,835 | |
Goodwill | 1,349,868 | 1,278,145 | 1,330,922 | |
Intangible assets | 753,224 | 772,640 | 962,738 | |
Operation between geographical segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | (84,203) | (56,733) | (58,072) | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies | 0 | 0 | 0 | |
Non-current biological assets | 0 | 0 | ||
Property, plant and equipment, net | 0 | 0 | 0 | |
Goodwill | 0 | 0 | 0 | |
Intangible assets | 0 | 0 | 0 | |
Total [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 61,323,853 | 55,653,027 | 55,308,141 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies | 0 | 0 | 0 | |
Non-current biological assets | 1,991,530 | 1,818,911 | 1,721,728 | |
Property, plant and equipment, net | 17,146,405 | 16,440,851 | 16,060,590 | |
Goodwill | 1,562,404 | 1,490,978 | 1,543,755 | |
Intangible assets | $ 753,224 | $ 772,640 | $ 962,738 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and cash equivalents. | |||
Cash and banks | $ 12,941,334 | $ 13,106,862 | $ 13,566,098 |
Investments with maturities less than three months | 4,305,998 | 5,513,276 | 4,331,423 |
Cash and cash equivalents | 17,247,332 | 18,620,138 | 17,897,521 |
Restricted cash | 39,042 | 42,627 | 4,324 |
Total cash and cash equivalents | $ 17,286,374 | $ 18,662,765 | $ 17,901,845 |
Financial instruments and ris_3
Financial instruments and risk management - Categories of financial assets and liabilities (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities | |||
Financial liabilities | $ 2,517,965 | $ 4,928,607 | $ 5,037,600 |
Financial debt [Member] | |||
Financial liabilities | |||
Financial liabilities | (2,517,965) | (4,928,607) | (5,037,600) |
Trade payables, sundry creditors and expenses payable [Member] | |||
Financial liabilities | |||
Financial liabilities | (5,049,103) | (4,491,171) | (4,593,344) |
Lease liabilities [member] | |||
Financial liabilities | |||
Financial liabilities | (719,711) | (803,050) | 0 |
Due to related parties [Member] | |||
Financial liabilities | |||
Financial liabilities | (80,842) | (76,704) | (147,514) |
Cash and cash equivalent [Member] | |||
Financial assets | |||
Financial assets | 17,286,374 | 18,662,765 | 17,901,845 |
Investment in securities at fair value through profit or loss [Member] | |||
Financial assets | |||
Financial assets | 1,018,322 | 186,284 | 550,068 |
Investment in Securities Measured At Fair Value Through Other Comprehensive Income [Member] | |||
Financial assets | |||
Financial assets | 937,715 | 315,761 | 0 |
Investment in Life Insurance [Member] | |||
Financial assets | |||
Financial assets | 71,431 | 65,545 | 66,177 |
Trade Receivables [Member] | |||
Financial assets | |||
Financial assets | 2,704,058 | 2,523,092 | 2,444,013 |
Due from related parties [Member] | |||
Financial assets | |||
Financial assets | 686 | 13,674 | 99 |
Long-term receivables [Member] | |||
Financial assets | |||
Financial assets | 193,689 | 173,488 | 171,222 |
Derivative financial instruments | |||
Financial assets | |||
Financial assets | 0 | 18,098 | 6,570 |
Financial liabilities | |||
Financial liabilities | $ (194,181) | $ 0 | $ 0 |
Financial instruments and ris_4
Financial instruments and risk management - Exposure to credit risk (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | $ 22,031,762 | $ 21,295,207 | $ 20,510,762 |
Cash and cash equivalent [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | 17,286,374 | 18,662,765 | 17,901,845 |
Investment in securities at fair value through profit or loss [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | 1,018,322 | 186,284 | 550,068 |
Investment in Securities Measured At Fair Value Through Other Comprehensive Income [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | 937,715 | 315,761 | 0 |
Investment in Life Insurance [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | 71,431 | 65,545 | 66,177 |
Accounts receivable net of guarantees received [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | 2,717,920 | 2,046,754 | 1,986,102 |
Derivative financial instruments | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | $ 0 | $ 18,098 | $ 6,570 |
Financial instruments and ris_5
Financial instruments and risk management - Maturity table (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | $ 2,517,965 | $ 4,928,607 | $ 5,037,600 |
Trade payables, sundry creditors and expenses payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | (5,049,103) | (4,491,171) | (4,593,344) |
Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | (80,842) | (76,704) | (147,514) |
Lease liabilities [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | (719,711) | (803,050) | 0 |
Not later than one year [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 6,746,007 | 8,292,347 | 8,379,511 |
Not later than one year [member] | Trade payables, sundry creditors and expenses payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 5,049,103 | 4,491,171 | 4,593,344 |
Not later than one year [member] | Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 80,842 | 76,704 | |
Not later than one year [member] | Derivative financial instruments | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 194,181 | ||
Not later than one year [member] | Lease liabilities [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 278,981 | 149,538 | |
Not later than one year [member] | Floating interest rate [member] | Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 147,514 | ||
Not later than one year [member] | Floating interest rate [member] | Variable rate maturities in us dollar [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 778,050 | 2,831,191 | 2,757,459 |
Not later than one year [member] | Floating interest rate [member] | Variable rate maturities in pesos [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 279,510 | 609,208 | 735,334 |
Not later than one year [member] | Floating interest rate [member] | Interest payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 85,340 | 134,535 | 145,860 |
Later than one year and not later than three years [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 1,884,944 | 2,293,891 | 314,991 |
Later than one year and not later than three years [member] | Trade payables, sundry creditors and expenses payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | 0 | 0 |
Later than one year and not later than three years [member] | Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | 0 | |
Later than one year and not later than three years [member] | Derivative financial instruments | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | ||
Later than one year and not later than three years [member] | Lease liabilities [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 379,926 | 598,040 | |
Later than one year and not later than three years [member] | Variable rate maturities in us dollar [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | ||
Later than one year and not later than three years [member] | Floating interest rate [member] | Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | ||
Later than one year and not later than three years [member] | Floating interest rate [member] | Variable rate maturities in us dollar [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | 0 | 0 |
Later than one year and not later than three years [member] | Floating interest rate [member] | Variable rate maturities in pesos [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 1,460,405 | 1,488,208 | 44,014 |
Later than one year and not later than three years [member] | Floating interest rate [member] | Interest payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 44,613 | 207,643 | 270,977 |
Later than three years and not later than five years [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 60,804 | 55,472 | 1,580,512 |
Later than three years and not later than five years [member] | Trade payables, sundry creditors and expenses payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | 0 | 0 |
Later than three years and not later than five years [member] | Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | 0 | |
Later than three years and not later than five years [member] | Derivative financial instruments | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | ||
Later than three years and not later than five years [member] | Lease liabilities [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 60,804 | 55,472 | |
Later than three years and not later than five years [member] | Floating interest rate [member] | Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | ||
Later than three years and not later than five years [member] | Floating interest rate [member] | Variable rate maturities in us dollar [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | 0 | 0 |
Later than three years and not later than five years [member] | Floating interest rate [member] | Variable rate maturities in pesos [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 0 | 0 | 1,500,793 |
Later than three years and not later than five years [member] | Floating interest rate [member] | Interest payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | $ 0 | $ 0 | $ 79,719 |
Financial instruments and ris_6
Financial instruments and risk management - Foreign currency position (Details) $ in Thousands, $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) |
Assets | ||||||
Cash and cash equivalents | $ 17,286,374 | $ 18,662,765 | $ 17,901,845 | |||
Investment in securities at fair value through profit or loss | 1,018,322 | 186,284 | 550,068 | |||
Investment in securities at fair value through other comprehensive income | 937,715 | 315,761 | 0 | |||
Accounts receivable | 4,366,019 | 3,867,110 | 3,486,354 | |||
Total assets | 58,475,000 | 55,702,491 | 52,865,594 | |||
Liabilities | ||||||
Trade accounts payable | (5,753,137) | (5,158,827) | (5,196,347) | |||
Financial debt | (209,499) | 0 | (64,973) | |||
Lease liabilities | (719,711) | (803,050) | (922,410) | |||
Total Liabilities | (14,548,192) | (15,442,156) | (14,699,889) | |||
Currency risk [member] | ||||||
Assets | ||||||
Cash and cash equivalents | $ 479,325 | 9,562,534 | $ 569,569 | 10,759,165 | $ 384,119 | 7,555,616 |
Investment in securities at fair value through profit or loss | 40,424 | 806,459 | 4,576 | 86,447 | 19,447 | 382,519 |
Investment in securities at fair value through other comprehensive income | 47,003 | 937,715 | 16,716 | 315,761 | 0 | 0 |
Accounts receivable | 2,683 | 53,517 | 2,160 | 40,809 | 252 | 4,950 |
Total assets | 569,435 | 11,360,225 | 593,021 | 11,202,182 | 403,818 | 7,943,085 |
Liabilities | ||||||
Trade accounts payable | (107,224) | (2,139,115) | (120,699) | (2,280,003) | (194,701) | (3,829,765) |
Financial debt | (39,000) | (778,050) | (149,878) | (2,831,191) | (140,186) | (2,757,459) |
Lease liabilities | (6,558) | (130,828) | (7,635) | (144,224) | 0 | 0 |
Total Liabilities | (152,782) | (3,047,993) | (278,212) | (5,255,418) | (334,887) | (6,587,224) |
Net asset position | $ 416,653 | $ 8,312,232 | $ 314,809 | $ 5,946,764 | $ 68,931 | $ 1,355,861 |
Financial instruments and ris_7
Financial instruments and risk management - Exchange rates (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018Rate | |
Financial instruments and risk management | |||
Average exchange rate | 21.49 | 19.25 | 19.23 |
Spot exchange rate | 19.95 | 18.89 | 19.67 |
Financial instruments and ris_8
Financial instruments and risk management - Financial instruments at fair value (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financial instruments and risk management | |||
Carrying amount | $ 2,517,965 | $ 4,928,607 | $ 5,037,600 |
Fair value | $ 2,550,758 | $ 4,952,445 | $ 5,037,688 |
Financial instruments and ris_9
Financial instruments and risk management - Fair value hierarchy (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | $ 1,761,856 | $ 520,143 | $ 556,638 |
Investment in securities at fair value through profit or loss [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 1,018,322 | 186,284 | 550,068 |
Investment in Securities Measured At Fair Value Through Other Comprehensive Income [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 937,715 | 315,761 | |
Derivative financial instruments | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | (194,181) | 18,098 | 6,570 |
Level 1 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 1,956,037 | 502,045 | 550,068 |
Level 1 of fair value hierarchy [member] | Investment in securities at fair value through profit or loss [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 1,018,322 | 186,284 | 550,068 |
Level 1 of fair value hierarchy [member] | Investment in Securities Measured At Fair Value Through Other Comprehensive Income [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 937,715 | 315,761 | |
Level 1 of fair value hierarchy [member] | Derivative financial instruments | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 0 | 0 | 0 |
Level 2 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | (194,181) | 18,098 | 6,570 |
Level 2 of fair value hierarchy [member] | Investment in securities at fair value through profit or loss [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 0 | 0 | 0 |
Level 2 of fair value hierarchy [member] | Investment in Securities Measured At Fair Value Through Other Comprehensive Income [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Level 2 of fair value hierarchy [member] | Derivative financial instruments | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | (194,181) | 18,098 | 6,570 |
Level 3 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 0 | 0 | 0 |
Level 3 of fair value hierarchy [member] | Investment in securities at fair value through profit or loss [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 0 | 0 | 0 |
Level 3 of fair value hierarchy [member] | Investment in Securities Measured At Fair Value Through Other Comprehensive Income [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 0 | 0 | |
Level 3 of fair value hierarchy [member] | Derivative financial instruments | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | $ 0 | $ 0 | $ 0 |
Financial instruments and ri_10
Financial instruments and risk management - Financial liabilities at fair value (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | $ (2,550,758) | $ (4,952,445) | $ (5,037,688) |
Financial debt related to bank institutions [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (1,059,300) | (3,455,810) | (3,536,895) |
Financial debt related to debt securities [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (1,491,458) | (1,496,635) | (1,500,793) |
Level 1 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (1,491,458) | (1,496,635) | (1,500,793) |
Level 1 of fair value hierarchy [member] | Financial debt related to bank institutions [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | 0 | 0 | 0 |
Level 1 of fair value hierarchy [member] | Financial debt related to debt securities [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (1,491,458) | (1,496,635) | (1,500,793) |
Level 2 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (1,059,300) | (3,455,810) | (3,536,895) |
Level 2 of fair value hierarchy [member] | Financial debt related to bank institutions [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (1,059,300) | (3,455,810) | (3,536,895) |
Level 2 of fair value hierarchy [member] | Financial debt related to debt securities [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | 0 | 0 | 0 |
Level 3 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | 0 | 0 | 0 |
Level 3 of fair value hierarchy [member] | Financial debt related to bank institutions [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | 0 | 0 | 0 |
Level 3 of fair value hierarchy [member] | Financial debt related to debt securities [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | $ 0 | $ 0 | $ 0 |
Financial instruments and ri_11
Financial instruments and risk management - Sensitivity analysis (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | $ 3,972,092 | $ 3,232,826 | $ 3,361,573 |
Other price risk increase [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | (87,711) | (121,762) | (2,665) |
Other price risk decrease [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | (12,530) | 100,490 | 105 |
Interest rate risk increase [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | 13,390 | 24,465 | 30,192 |
Interest rate risk decrease [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | (13,390) | (24,465) | (30,192) |
Currency risk increase [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | (2,493,673) | (1,784,045) | (135,586) |
Currency risk decrease [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | $ 2,493,673 | $ 1,784,045 | $ 135,586 |
Financial instruments and ri_12
Financial instruments and risk management - Additional information (Details) $ in Thousands, $ in Thousands | 12 Months Ended | 24 Months Ended | 36 Months Ended | |||||||
Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Disclosure of financial instruments and risk management [Line Items] | ||||||||||
Provisions for doubtful debts related to outstanding balances of related party transaction | $ 143,278 | $ 140,304 | $ 142,388 | |||||||
Financial assets that are individually determined to be impaired, fair value of collateral held and other credit enhancements | $ 180,513 | 663,500 | 572,085 | |||||||
Gain (loss) on change in fair value of hedging instrument used as basis for recognising hedge ineffectiveness | $ 30 | $ 574 | $ 11 | $ 217 | ||||||
Subsidy for purchase of hedging "puts" to the consumer | 50,730 | |||||||||
Benefit under this scheme benefit | $ 1,802 | $ 0 | ||||||||
Percentage of increase in foreign exchange | 15.00% | 15.00% | ||||||||
Percentage of decrease in foreign exchange | 15.00% | 15.00% | ||||||||
Sensitivity analysis for percentage increase in bushell price of corn and short ton price of soybeans | 15.00% | |||||||||
Sensitivity analysis for percentage decrease in bushell price of corn and short ton price of soybeans | 10.00% | 10.00% | 30.00% | |||||||
Exchange rate | 19.84 | |||||||||
Foreign Currency Increase [Member] | ||||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||||
Gains (losses) on hedged item attributable to hedged risk, fair value hedges | $ 506,705 | 16,824 | $ 28,767 | |||||||
Foreign Currency decrease [Member] | ||||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||||
Gains (losses) on hedged item attributable to hedged risk, fair value hedges | $ 1,405,538 | $ 31,133 | $ 48,429 | |||||||
Currency risk [member] | ||||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||||
Assets (liabilities) | 314,809 | $ 68,931 | $ 416,653 | $ 8,312,232 | $ 5,946,764 | $ 1,355,861 | ||||
Embedded Derivative Financial Instruments [Member] | ||||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||||
Notional amount | 60,000 | |||||||||
Embedded Derivative Financial Instruments [Member] | Hedges | ||||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||||
Notional amount | $ 24,352 | $ 1,500 | $ 319,506 | |||||||
Financial Guarantees Granted [Member] | ||||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||||
Proportion of ownership interest in subsidiary | 100.00% |
Accounts receivable, net (Detai
Accounts receivable, net (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, net | ||||
Trade receivables | $ 2,772,418 | $ 2,595,978 | $ 2,523,950 | |
Allowance for doubtful accounts | (68,360) | (72,886) | (79,937) | $ (96,900) |
Income tax receivable | 190,110 | 187,912 | 114,935 | |
Recoverable value-added tax and other recoverable taxes | 1,471,851 | 1,156,106 | 927,406 | |
Trade and other current receivables | $ 4,366,019 | $ 3,867,110 | $ 3,486,354 |
Accounts receivable, net - Past
Accounts receivable, net - Past-due but not impaired portfolio (Details) - Financial assets past due but not impaired [member] - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure Of Accounts Receivable, Net [Line Items] | |||
Trade receivables | $ 116,865 | $ 68,036 | $ 161,854 |
Past due at 60 days | |||
Disclosure Of Accounts Receivable, Net [Line Items] | |||
Trade receivables | 18,811 | 20,463 | 144,604 |
Past due by more than 60 days | |||
Disclosure Of Accounts Receivable, Net [Line Items] | |||
Trade receivables | $ 98,054 | $ 47,573 | $ 17,250 |
Accounts receivable, net - Reco
Accounts receivable, net - Reconciliation of movements in allowance for doubtful accounts (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts receivable, net | |||
Balance as of January 1 | $ (72,886) | $ (79,937) | $ (96,900) |
Increase in allowance | (1,826) | (57) | (7,862) |
Amounts written off | 6,458 | 7,030 | 24,826 |
Currency translation effect | (106) | 78 | (1) |
Balance as of December 31, | $ (68,360) | $ (72,886) | $ (79,937) |
Accounts receivable, net - Addi
Accounts receivable, net - Additional information (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, net | |||
Legal Proceedings Receivables | $ 143,278 | $ 140,304 | $ 142,388 |
Expected Credit Loss Recognized in Trade Receivables under IFRS 9 | $ 25,962 | $ 50,753 | $ 45,823 |
Inventories (Details)
Inventories (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Inventories | |||
Raw materials and by-products | $ 2,410,275 | $ 1,836,783 | $ 1,688,527 |
Medicine, materials and spare parts | 1,110,559 | 877,837 | 903,337 |
Balanced feed | 380,121 | 330,238 | 322,522 |
Processed chicken | 1,575,985 | 1,554,115 | 1,548,597 |
Commercial eggs | 55,364 | 56,599 | 52,050 |
Processed beef | 151,402 | 47,954 | 39,709 |
Processed turkey | 2,472 | 4,482 | 10,762 |
Other processed products | 2,160 | 2,199 | 10,092 |
Total | $ 5,688,338 | $ 4,710,207 | $ 4,575,596 |
Inventories - Additional inform
Inventories - Additional information (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventories | |||
Raw materials and consumables used | $ 44,747,933 | $ 39,823,395 | $ 40,115,184 |
Adjustment to net realizable value of certain inventories | $ 57,074 | $ 35,328 | $ 30,242 |
Biological assets (Details)
Biological assets (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of biological assets [Line Items] | |||
Balance | $ 3,862,148 | $ 3,795,254 | $ 3,559,696 |
Increase due to purchases | 1,212,167 | 964,612 | |
Sales | (73,409) | (119,297) | |
Net increase due to births | 2,646,192 | 2,566,464 | |
Production cost | 34,656,131 | 34,919,398 | |
Depreciation | (2,262,245) | (2,136,224) | |
Transfers to inventories | (36,029,556) | (35,982,249) | |
Other | (82,386) | 22,854 | |
Balance | 3,862,148 | 3,795,254 | |
Current Reported | |||
Disclosure of biological assets [Line Items] | |||
Balance | 3,862,144 | ||
Increase due to purchases | 1,483,795 | ||
Sales | 20,966 | ||
Net increase due to births | 2,772,155 | ||
Production cost | 37,462,969 | ||
Depreciation | (2,565,283) | ||
Transfers to inventories | (39,294,368) | ||
Other | 261,820 | ||
Balance | 4,000,198 | 3,862,144 | |
Current biological assets [member] | |||
Disclosure of biological assets [Line Items] | |||
Balance | 2,043,237 | 2,073,526 | 1,942,193 |
Increase due to purchases | 510,403 | 334,710 | |
Sales | 0 | 0 | |
Net increase due to births | 267,773 | 274,286 | |
Production cost | 32,894,675 | 33,189,920 | |
Depreciation | 0 | 0 | |
Transfers to inventories | (33,651,137) | (33,690,071) | |
Other | (52,003) | 22,488 | |
Balance | 2,043,237 | 2,073,526 | |
Current biological assets [member] | Current Reported | |||
Disclosure of biological assets [Line Items] | |||
Balance | 2,043,234 | ||
Increase due to purchases | 686,756 | ||
Net increase due to births | 264,386 | ||
Production cost | 35,585,551 | ||
Transfers to inventories | (36,786,599) | ||
Other | 219,340 | ||
Balance | 2,012,668 | 2,043,234 | |
Non-current biological assets [member] | |||
Disclosure of biological assets [Line Items] | |||
Balance | 1,818,911 | 1,721,728 | 1,617,503 |
Increase due to purchases | 701,764 | 629,902 | |
Sales | (73,409) | (119,297) | |
Net increase due to births | 2,378,419 | 2,292,178 | |
Production cost | 1,761,456 | 1,729,478 | |
Depreciation | (2,262,245) | (2,136,224) | |
Transfers to inventories | (2,378,419) | (2,292,178) | |
Other | (30,383) | 366 | |
Balance | 1,818,911 | $ 1,721,728 | |
Non-current biological assets [member] | Current Reported | |||
Disclosure of biological assets [Line Items] | |||
Balance | 1,818,910 | ||
Increase due to purchases | 797,039 | ||
Sales | 20,966 | ||
Net increase due to births | 2,507,769 | ||
Production cost | 1,877,418 | ||
Depreciation | (2,565,283) | ||
Transfers to inventories | (2,507,769) | ||
Other | 42,480 | ||
Balance | $ 1,991,530 | $ 1,818,910 |
Biological assets - Additional
Biological assets - Additional information (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Biological assets | |||
Change in fair value of biological assets | $ 31,701 | $ (35,487) | $ 22,270 |
Prepaid expenses and other cu_3
Prepaid expenses and other current assets (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and other current assets | |||
Advances to suppliers of inventories | $ 613,188 | $ 628,286 | $ 704,563 |
Prepaid expenses for services | 303,345 | 280,950 | 217,074 |
Prepaid expenses for insurance and sureties | 74,565 | 128,178 | 129,582 |
Other current assets | 230,157 | 189,782 | 80,651 |
Total | $ 1,221,255 | $ 1,227,196 | $ 1,131,870 |
Assets held for sale (Details)
Assets held for sale (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of assets held for sale [Line Items] | |||
Non-current assets or disposal groups classified as held for sale | $ 54,630 | $ 52,916 | $ 49,068 |
Buildings | |||
Disclosure of assets held for sale [Line Items] | |||
Non-current assets or disposal groups classified as held for sale | 24,208 | 22,394 | 18,920 |
Land [Member] | |||
Disclosure of assets held for sale [Line Items] | |||
Non-current assets or disposal groups classified as held for sale | 29,563 | 29,563 | 27,310 |
Other Assets [Member] | |||
Disclosure of assets held for sale [Line Items] | |||
Non-current assets or disposal groups classified as held for sale | $ 859 | $ 959 | $ 2,839 |
Assets held for sale - Addition
Assets held for sale - Additional information (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets held for sale | |||
Gains (losses) on disposals of property, plant and equipment | $ 510 | $ 2,311 | $ (13) |
Property, plant and equipment_2
Property, plant and equipment (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | $ 18,556,646 | $ 18,018,176 | |
Depreciation for the year | (307,757) | (302,804) | |
Balance as at December 31 | 19,733,822 | 18,556,646 | $ 18,018,176 |
Property, plant and equipment | 19,733,822 | 18,556,646 | 18,018,176 |
Acquisitions through business combinations, property, plant and equipment | 383,680 | ||
Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 1,553,499 | 1,378,090 | |
Balance as at December 31 | 1,655,428 | 1,553,499 | 1,378,090 |
Property, plant and equipment | 1,655,428 | 1,553,499 | 1,378,090 |
Acquisitions through business combinations, property, plant and equipment | 62,050 | ||
Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 6,589,434 | 6,406,651 | |
Balance as at December 31 | 6,984,443 | 6,589,434 | 6,406,651 |
Property, plant and equipment | 6,984,443 | 6,589,434 | 6,406,651 |
Acquisitions through business combinations, property, plant and equipment | 231,264 | ||
Machinery and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 7,613,180 | 7,676,822 | |
Balance as at December 31 | 7,849,571 | 7,613,180 | 7,676,822 |
Property, plant and equipment | 7,849,571 | 7,613,180 | 7,676,822 |
Acquisitions through business combinations, property, plant and equipment | 73,332 | ||
Vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 1,255,570 | 962,609 | |
Balance as at December 31 | 1,480,099 | 1,255,570 | 962,609 |
Property, plant and equipment | 1,480,099 | 1,255,570 | 962,609 |
Acquisitions through business combinations, property, plant and equipment | 4,825 | ||
Computer | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 27,465 | 38,149 | |
Balance as at December 31 | 20,930 | 27,465 | 38,149 |
Property, plant and equipment | 20,930 | 27,465 | 38,149 |
Acquisitions through business combinations, property, plant and equipment | 1,761 | ||
Furniture [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 53,978 | 49,808 | |
Balance as at December 31 | 59,420 | 53,978 | 49,808 |
Property, plant and equipment | 59,420 | 53,978 | 49,808 |
Acquisitions through business combinations, property, plant and equipment | 1,115 | ||
Leasehold improvements [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 3,598 | 4,350 | |
Balance as at December 31 | 8,037 | 3,598 | 4,350 |
Property, plant and equipment | 8,037 | 3,598 | 4,350 |
Construction in progress [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 1,459,922 | 1,501,697 | |
Balance as at December 31 | 1,675,894 | 1,459,922 | 1,501,697 |
Property, plant and equipment | 1,675,894 | 1,459,922 | 1,501,697 |
Acquisitions through business combinations, property, plant and equipment | 9,333 | ||
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 33,661,145 | 32,116,568 | 30,322,512 |
Additions | 2,752,281 | 2,069,327 | 1,982,583 |
Disposals | (585,506) | (332,263) | (195,392) |
Currency translation | 252,224 | (192,487) | 6,865 |
Balance as at December 31 | 36,080,144 | 33,661,145 | 32,116,568 |
Property, plant and equipment | 36,080,144 | 33,661,145 | 32,116,568 |
Gross carrying amount [member] | Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 1,553,499 | 1,378,090 | 1,353,643 |
Additions | 102,847 | 209,752 | 24,400 |
Disposals | (5,900) | (30,677) | |
Currency translation | 4,982 | (3,666) | 47 |
Balance as at December 31 | 1,655,428 | 1,553,499 | 1,378,090 |
Property, plant and equipment | 1,655,428 | 1,553,499 | 1,378,090 |
Gross carrying amount [member] | Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 12,340,405 | 11,943,476 | 11,440,284 |
Additions | 686,270 | 472,095 | 513,033 |
Disposals | (297,490) | (7,478) | (11,546) |
Currency translation | 92,008 | (67,688) | 1,705 |
Balance as at December 31 | 12,821,193 | 12,340,405 | 11,943,476 |
Property, plant and equipment | 12,821,193 | 12,340,405 | 11,943,476 |
Gross carrying amount [member] | Machinery and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 15,866,952 | 15,182,044 | 14,021,881 |
Additions | 1,240,779 | 891,008 | 1,255,026 |
Disposals | (145,320) | (92,623) | (96,727) |
Currency translation | 154,497 | (113,477) | 1,864 |
Balance as at December 31 | 17,116,908 | 15,866,952 | 15,182,044 |
Property, plant and equipment | 17,116,908 | 15,866,952 | 15,182,044 |
Gross carrying amount [member] | Vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 2,111,999 | 1,792,273 | 1,773,153 |
Additions | 462,344 | 474,960 | 101,645 |
Disposals | (130,089) | (154,116) | (82,543) |
Currency translation | 1,380 | (1,118) | 18 |
Balance as at December 31 | 2,445,634 | 2,111,999 | 1,792,273 |
Property, plant and equipment | 2,445,634 | 2,111,999 | 1,792,273 |
Gross carrying amount [member] | Computer | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 134,481 | 136,183 | 125,991 |
Additions | 13,784 | 3,828 | 10,441 |
Disposals | (244) | (3,257) | (318) |
Currency translation | 3,096 | (2,273) | 69 |
Balance as at December 31 | 151,117 | 134,481 | 136,183 |
Property, plant and equipment | 151,117 | 134,481 | 136,183 |
Gross carrying amount [member] | Furniture [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 190,289 | 178,455 | 169,752 |
Additions | 21,325 | 17,684 | 12,985 |
Disposals | (6,463) | (5,295) | (4,258) |
Currency translation | 782 | (555) | (24) |
Balance as at December 31 | 205,933 | 190,289 | 178,455 |
Property, plant and equipment | 205,933 | 190,289 | 178,455 |
Gross carrying amount [member] | Leasehold improvements [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 3,598 | 4,350 | 2,661 |
Additions | 4,439 | 0 | 1,689 |
Disposals | 0 | (752) | 0 |
Currency translation | 0 | 0 | 0 |
Balance as at December 31 | 8,037 | 3,598 | 4,350 |
Property, plant and equipment | 8,037 | 3,598 | 4,350 |
Gross carrying amount [member] | Construction in progress [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | 1,459,922 | 1,501,697 | 1,435,147 |
Additions | 220,493 | 63,364 | |
Disposals | 0 | (38,065) | 0 |
Currency translation | (4,521) | (3,710) | 3,186 |
Balance as at December 31 | 1,675,894 | 1,459,922 | 1,501,697 |
Property, plant and equipment | 1,675,894 | 1,459,922 | 1,501,697 |
Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | (15,104,499) | (14,098,392) | (13,002,471) |
Disposals | 428,883 | 181,544 | 139,692 |
Currency translation | (80,403) | 77,740 | (8,696) |
Depreciation for the year | (1,590,303) | (1,265,391) | (1,226,917) |
Balance as at December 31 | (16,346,322) | (15,104,499) | (14,098,392) |
Property, plant and equipment | (16,346,322) | (15,104,499) | (14,098,392) |
Accumulated depreciation and amortisation [member] | Buildings | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | (5,750,971) | (5,536,825) | (5,323,314) |
Disposals | 229,718 | 2,199 | 9,315 |
Currency translation | (15,632) | 14,105 | (1,261) |
Depreciation for the year | (299,865) | (230,450) | (221,565) |
Balance as at December 31 | (5,836,750) | (5,750,971) | (5,536,825) |
Property, plant and equipment | (5,836,750) | (5,750,971) | (5,536,825) |
Accumulated depreciation and amortisation [member] | Machinery and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | (8,253,772) | (7,505,222) | (6,706,824) |
Disposals | 96,589 | 65,136 | 66,578 |
Currency translation | (61,396) | 60,761 | (7,046) |
Depreciation for the year | (1,048,758) | (874,447) | (857,930) |
Balance as at December 31 | (9,267,337) | (8,253,772) | (7,505,222) |
Property, plant and equipment | (9,267,337) | (8,253,772) | (7,505,222) |
Accumulated depreciation and amortisation [member] | Vehicles | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | (856,429) | (829,664) | (771,406) |
Disposals | 96,553 | 106,955 | 60,276 |
Currency translation | (1,275) | 988 | (95) |
Depreciation for the year | (204,384) | (134,708) | (118,439) |
Balance as at December 31 | (965,535) | (856,429) | (829,664) |
Property, plant and equipment | (965,535) | (856,429) | (829,664) |
Accumulated depreciation and amortisation [member] | Computer | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | (107,016) | (98,034) | (81,504) |
Disposals | 160 | 3,145 | 305 |
Currency translation | (1,610) | 1,508 | (237) |
Depreciation for the year | (21,721) | (13,635) | (16,598) |
Balance as at December 31 | (130,187) | (107,016) | (98,034) |
Property, plant and equipment | (130,187) | (107,016) | (98,034) |
Accumulated depreciation and amortisation [member] | Furniture [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1 | (136,311) | (128,647) | (119,423) |
Disposals | 5,863 | 4,109 | 3,218 |
Currency translation | (490) | 378 | (57) |
Depreciation for the year | (15,575) | (12,151) | (12,385) |
Balance as at December 31 | (146,513) | (136,311) | (128,647) |
Property, plant and equipment | $ (146,513) | $ (136,311) | $ (128,647) |
Property, plant and equipment -
Property, plant and equipment - Additional information (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, plant and equipment. | |||
Acquisitions through business combinations, property, plant and equipment | $ 383,680 | ||
Depreciation expense | $ 1,590,303 | $ 1,265,391 | $ 1,226,917 |
Goodwill (Details)
Goodwill (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill. | |||
Balances at beginning of the year | $ 1,578,994 | $ 1,631,771 | $ 1,631,094 |
Foreign currency effects | 71,722 | (52,777) | 677 |
Balances at end of year | $ 1,650,716 | $ 1,578,994 | $ 1,631,771 |
Goodwill - assumptions and bala
Goodwill - assumptions and balances of each cash-generating unit (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 1,650,716 | $ 1,578,994 | $ 1,631,771 | $ 1,631,094 |
Bachoco Istmo and peninsula regions [Member] | ||||
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 212,833 | $ 212,833 | $ 212,833 | |
Projection period (years) | P5Y | P5Y | P5Y | |
Annual discount rate | 12.95% | 12.84% | 13.17% | |
Annual growth rate | 3.00% | 3.00% | 3.00% | |
Campi [Member] | ||||
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 88,015 | $ 88,015 | $ 88,015 | |
Projection period (years) | P5Y | P5Y | P5Y | |
Annual discount rate | 12.95% | 12.84% | 13.17% | |
Annual growth rate | 3.00% | 3.00% | 3.00% | |
Ok Farms - Morris Hatchery, Inc. Arkansas [Member] | ||||
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 66,162 | $ 62,647 | $ 65,233 | |
Projection period (years) | P5Y | P5Y | P5Y | |
Annual discount rate | 3.43% | 5.22% | 5.87% | |
Annual growth rate | 0.00% | 0.00% | 0.00% | |
Ok Farms - Morris Hatchery Inc. Georgia [Member] | ||||
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 111,715 | $ 105,780 | $ 110,147 | |
Projection period (years) | P5Y | P5Y | P5Y | |
Annual discount rate | 3.43% | 5.22% | 5.87% | |
Annual growth rate | 0.00% | 0.00% | 0.00% | |
Ok Foods- Albertville Quality Foods, Inc [Member] | ||||
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 1,171,991 | $ 1,109,719 | $ 1,155,543 | |
Projection period (years) | P5Y | P5Y | P5Y | |
Annual discount rate | 3.43% | 5.22% | 5.87% | |
Annual growth rate | 0.00% | 0.00% | 0.00% |
Intangible assets (Details)
Intangible assets (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | $ 753,224 | $ 772,640 | $ 949,355 |
Impairment loss | 0 | 73,733 | 21,430 |
Customer relationships [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | 721,880 | 742,961 | 918,450 |
Customer relationships [Member] | Gross carrying amount [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | 941,582 | 891,553 | 1,020,500 |
Customer relationships [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | (219,702) | (74,859) | (95,911) |
Impairment loss | (73,733) | (6,139) | |
Trade names [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | $ 31,344 | 29,679 | 46,196 |
Trade names [member] | Accumulated depreciation, amortisation and impairment [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Impairment loss | $ 0 | $ (15,291) |
Intangible assets - Reconciliat
Intangible assets - Reconciliation (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Carrying amount, Balance | $ 847,499 | $ 1,045,266 | |
Carrying amount, Impairment loss | (73,733) | ||
Carrying amount, Currency translation effect | 125,427 | (124,034) | |
Carrying amount, Balance | 972,926 | 847,499 | |
Accumulated amortization, Balance | (74,859) | (95,911) | |
Accumulated amortization, Amorization expense | (144,843) | 21,052 | |
Accumulated amortization, Balance | (219,702) | (74,859) | |
Intangible assets | 753,224 | 772,640 | $ 949,355 |
Customer relationships [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Carrying amount, Balance | 817,820 | 1,014,361 | |
Carrying amount, Impairment loss | (73,733) | ||
Carrying amount, Currency translation effect | 123,762 | (122,808) | |
Carrying amount, Balance | 941,582 | 817,820 | |
Accumulated amortization, Balance | (74,859) | (95,911) | |
Accumulated amortization, Amorization expense | (144,843) | 21,052 | |
Accumulated amortization, Balance | (219,702) | (74,859) | |
Intangible assets | 721,880 | 742,961 | 918,450 |
Trade names [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Carrying amount, Balance | 29,679 | 30,905 | |
Carrying amount, Currency translation effect | 1,665 | (1,226) | |
Carrying amount, Balance | 31,344 | 29,679 | |
Intangible assets | $ 31,344 | $ 29,679 | $ 46,196 |
Intangible assets - Additional
Intangible assets - Additional information (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets other than goodwill | $ 753,224 | $ 772,640 | $ 949,355 |
Intangible impairment loss | $ 0 | 73,733 | 21,430 |
Addition In Impairment of Intangible Assets and Goodwill | 3,535 | ||
Trade names [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible impairment loss | 11,756 | ||
Customer relationships [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible impairment loss | $ 73,733 | $ 6,139 |
Other non-current assets (Detai
Other non-current assets (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Other non-current assets. | |||
Advances for purchase of property, plant and equipment | $ 472,828 | $ 495,015 | $ 326,676 |
Investments in life insurance (note 3 (l)) | 71,431 | 65,545 | 66,177 |
Security deposits | 23,476 | 21,545 | 20,745 |
Other long-term receivable | 193,689 | 173,488 | 171,222 |
Intangible assets in process | 2,996 | 2,841 | 26,898 |
Other | 54,502 | 51,614 | 54,024 |
Total non-current assets | $ 818,922 | $ 810,048 | $ 665,742 |
Financial debt - Short-term fin
Financial debt - Short-term financial debt (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | $ 848,061 | $ 3,440,399 | $ 3,427,820 | |
Loan of 140,000 thousand dollars, maturing in February 2019, at fixed rate 2.29 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 0 | 0 | 2,757,460 | |
Denominated in pesos, maturing in January 2019, at TIIE (1) FIRA (2) rate plus 1.25 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [1],[2] | 0 | 0 | 100,306 |
Denominated in pesos, maturing in February 2019, at TIIE (1) rate plus 1.25 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [2] | 0 | 0 | 300,028 |
Denominated in pesos, maturing in March 2019, at TIIE (1) rate plus 1.25 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [2] | 0 | 0 | 250,023 |
Denominated in pesos, maturing in May 2019, at TIIE (1) rate plus 0.40 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 0 | 0 | 20,003 | |
Loan in the amount of 70,000 thousand dollars, maturing in January 2020, at LIBOR (3) rate plus 0.62 percentage points | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 0 | 1,322,176 | 0 | |
Loan denominated in pesos, maturing in January 2020, at TIIE (1) rate plus 0.50 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 0 | 50,000 | 0 | |
Loan denominated in pesos, maturing in February 2020, at TIIE (1) rate plus 1.05 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 0 | 449,572 | 0 | |
Loan in the amount of 80,000 thousand dollars, maturing in February 2020, at LIBOR6 (4) rate plus 0.35 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 0 | 1,509,015 | 0 | |
Loan denominated in pesos, maturing in May 2020, at TIIE (1) rate plus 1.05 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 0 | 99,678 | 0 | |
Loan denominated in pesos, maturing in June 2020, at TIIE (1) rate plus 0.50 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 0 | 9,958 | 0 | |
Loan in the amount of 39,000 thousand dollars, maturing in January 2021, at LIBOR (3) rate plus 0.60 percentage points | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | 778,050 | 0 | 0 | |
Loan denominated in pesos, maturing in February 2021, at TIIE (1) rate plus 0.90 percentage points | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | $ 70,011 | $ 0 | $ 0 | |
[1] | FIRA (for its acronym in Spanish) = Agriculture Trust Funds | |||
[2] | TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate |
Financial debt - Parenthetical
Financial debt - Parenthetical (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Denominated in pesos, maturing in January 2019, at TIIE (1) FIRA (2) rate plus 1.25 percentage points [member] | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | January 2019 |
Loan of 140,000 thousand dollars, maturing in February 2019, at fixed rate 2.29 percentage points [member] | |
Disclosure of financial debt [Line Items] | |
Notional amount | $ 140,000 |
Borrowings, maturity | February 2019 |
Denominated in pesos, maturing in February 2019, at TIIE (1) rate plus 1.25 percentage points. | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | February 2019 |
Denominated in pesos, maturing in March 2019, at TIIE (1) rate plus 1.25 percentage points. | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | March 2019 |
Denominated in pesos, maturing in May 2019, at TIIE (1) rate plus 0.40 percentage points. | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | May 2019 |
Loan in the amount of 70,000 thousand dollars, maturing in January 2020, at LIBOR (3) rate plus 0.62 percentage points | |
Disclosure of financial debt [Line Items] | |
Notional amount | $ 70,000 |
Borrowings, maturity | January 2020 |
Loan denominated in pesos, maturing in January 2020, at TIIE (1) rate plus 0.50 percentage points. | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | January 2020 |
Loan denominated in pesos, maturing in February 2020, at TIIE (1) rate plus 1.05 percentage points. | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | February 2020 |
Loan in the amount of 80,000 thousand dollars, maturing in February 2020, at LIBOR6 (4) rate plus 0.35 percentage points. | |
Disclosure of financial debt [Line Items] | |
Notional amount | $ 80,000 |
Borrowings, maturity | February 2020 |
Loan denominated in pesos, maturing in May 2020, at TIIE (1) rate plus 1.05 percentage points. | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | May 2020 |
Loan denominated in pesos, maturing in June 2020, at TIIE (1) rate plus 0.50 percentage points. | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | June 2020 |
Loan in the amount of 39,000 thousand dollars, maturing in January 2021, at LIBOR (3) rate plus 0.60 percentage points | |
Disclosure of financial debt [Line Items] | |
Notional amount | $ 39,000 |
Borrowings, maturity | January 2021 |
Loan denominated in pesos, maturing in February 2021, at TIIE (1) rate plus 0.90 percentage points | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | February 2021 |
Financial debt - Long-term debt
Financial debt - Long-term debt (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of financial debt [Line Items] | ||||
Total Long-term debt | $ 1,669,904 | $ 1,488,208 | $ 1,609,780 | |
Financial debt | (209,499) | 0 | (64,973) | |
Long-term debt, excluding current maturities | 1,460,405 | 1,488,208 | 1,544,807 | |
Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.25 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total Long-term debt | [1],[2] | 0 | 0 | 53,980 |
Denominated in pesos, maturing in 2023, at TIIE (1) FIRA (2) plus 0 percentage points. | ||||
Disclosure of financial debt [Line Items] | ||||
Total Long-term debt | [1],[2] | 0 | 0 | 55,007 |
Loan denominated in pesos, maturing in May 2021, at TIIE (1) plus 1.05 percentage points | ||||
Disclosure of financial debt [Line Items] | ||||
Total Long-term debt | 209,499 | 0 | 0 | |
Debt securities (subsection (d)) [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total Long-term debt | $ 1,460,405 | $ 1,488,208 | $ 1,500,793 | |
[1] | FIRA (for its acronym in Spanish) = Trust Established in Relation to Agriculture | |||
[2] | TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate |
Financial debt - Long-term de_2
Financial debt - Long-term debt - Parenthetical (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.25 percentage points [member] | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | 2019 |
Denominated in pesos, maturing in 2023, at TIIE (1) FIRA (2) plus 0 percentage points. | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | 2023 |
Financial debt - Maturities of
Financial debt - Maturities of long-term debt (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of financial debt [Line Items] | |||
Non-current portion of non-current borrowings | $ 1,460,405 | $ 1,488,208 | $ 1,544,807 |
2022 [Member] | |||
Disclosure of financial debt [Line Items] | |||
Non-current portion of non-current borrowings | $ 1,460,405 |
Financial debt - Reconciliation
Financial debt - Reconciliation of liabilities arising from financing activities (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial debt | |||
Begining Balance | $ 4,928,607 | $ 5,037,600 | $ 5,249,024 |
Changes that represent cash flows | |||
Proceeds from borrowings | 4,030,700 | 4,839,000 | 3,370,400 |
Principal payment on loans | (6,762,222) | (4,808,163) | (3,588,067) |
Changes that do not represent cash flows | |||
Others | 320,880 | (139,830) | 6,243 |
Ending Balance | $ 2,517,965 | $ 4,928,607 | $ 5,037,600 |
Financial debt - Additional inf
Financial debt - Additional information (Details) - MXN ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Aug. 25, 2017 | |
Disclosure of financial debt [Line Items] | ||||
Repayments of non-current borrowings | $ 17,877 | $ 51,000 | ||
Non-current portion of non-current borrowings | 1,460,405 | 1,488,208 | $ 1,544,807 | |
Interest expense on borrowings | 159,169 | $ 250,820 | $ 185,913 | |
Debt securities, number | 15,000,000 | |||
Debt securities, par value | $ 100 | |||
Unearned interest | $ 122,722 | |||
Pesos denominated short term loans [Member] | ||||
Disclosure of financial debt [Line Items] | ||||
Borrowings, interest rate | 5.50% | 8.77% | 9.15% | |
Debt instruments issued | $ 1,500,000 | |||
Pesos denominated short term loans [Member] | Weighted Average [Member] | ||||
Disclosure of financial debt [Line Items] | ||||
Borrowings, interest rate | 6.71% | 9.24% | 9.14% | |
Dollar denominated short term loans [Member] | ||||
Disclosure of financial debt [Line Items] | ||||
Borrowings, interest rate | 0.75% | 2.37% | 2.29% | |
Dollar denominated short term loans [Member] | Weighted Average [Member] | ||||
Disclosure of financial debt [Line Items] | ||||
Borrowings, interest rate | 1.61% | 2.36% | 2.26% | |
Long term loans [Member] | ||||
Disclosure of financial debt [Line Items] | ||||
Borrowings, interest rate | 4.91% | 8.26% | 8.46% | |
Long term loans [Member] | Weighted Average [Member] | ||||
Disclosure of financial debt [Line Items] | ||||
Borrowings, interest rate | 6.49% | 8.53% | 8.42% | |
Unused lines of credit facility [Member] | ||||
Disclosure of financial debt [Line Items] | ||||
Non-current portion of non-current borrowings | $ 6,919,625 | $ 3,325,981 | $ 5,723,011 |
Trade accounts and other acco_3
Trade accounts and other accounts payable (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Trade accounts and other accounts payable | |||
Trade payables | $ 4,516,424 | $ 3,972,460 | $ 3,996,014 |
Sundry creditors and expenses payable | 532,679 | 518,711 | 597,330 |
Provisions | 24,099 | 64,154 | 103,494 |
Statutory employee profit sharing | 62,075 | 86,710 | 68,432 |
Retained payroll taxes and other local taxes | 375,086 | 275,214 | 259,828 |
Direct employee benefits | 232,083 | 213,345 | 160,431 |
Interest payable | 10,575 | 28,060 | 10,728 |
Others | 116 | 173 | 90 |
Trade and other current payables | $ 5,753,137 | $ 5,158,827 | $ 5,196,347 |
Trade accounts and other acco_4
Trade accounts and other accounts payable - Additional information (Details) - Dec. 31, 2018 $ in Thousands, $ in Thousands | USD ($) | MXN ($) |
Trade accounts and other accounts payable | ||
Provisions | $ 2,000 | $ 39,340 |
Transactions and balances wit_3
Transactions and balances with related parties - compensation paid to the directors and executives for services (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Transactions and balances with related parties | |||
Compensation | $ 57,429 | $ 52,635 | $ 61,189 |
Transactions and balances wit_4
Transactions and balances with related parties (Details 1) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | $ 128,727 | $ 188,981 | $ 8,840 |
Amounts receivable, related parties transactions | 686 | 13,674 | 99 |
Amounts payable, related party transactions | 80,842 | 76,704 | 147,514 |
Vimifos, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 4,055 | 9,323 | 8,812 |
Amounts receivable, related parties transactions | 400 | 785 | 99 |
Purchases of goods, related party transactions | 411,129 | 582,458 | 557,490 |
Amounts payable, related party transactions | 58,836 | 41,399 | 103,371 |
Frescopack, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 53 | 58 | |
Amounts receivable, related parties transactions | 0 | 58 | |
Purchases of goods, related party transactions | 143,849 | 148,210 | 193,396 |
Amounts payable, related party transactions | 9,554 | 26,233 | 28,951 |
Maquinaria agricola, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 5 | 5 | 64 |
Purchases of property and other assets, related party transactions | 0 | 0 | 0 |
Autos y accesorios, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 339 | 124 | 4,712 |
Purchases of property and other assets, related party transactions | 48,129 | 10,776 | 18,776 |
Alfonso R. bours, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 50 | 49 | 40 |
Purchases of property and other assets, related party transactions | 2,651 | 187 | 307 |
Taxis aereos del noroeste, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 31 | 42 | 28 |
Amounts receivable, related parties transactions | 0 | ||
Amounts payable, related party transactions | 307 | 20 | |
Leases as lessee, related party transactions | 24,971 | 8,368 | |
Alimentos Kowi, S.A. de C.V. | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 832 | 934 | |
Amounts receivable, related parties transactions | 286 | 337 | |
Purchases of goods, related party transactions | 907 | ||
Amounts payable, related party transactions | 2 | ||
Sonora Agropecuaria, S.A. de C.V. | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 123,756 | 178,624 | |
Amounts receivable, related parties transactions | 0 | 12,494 | |
Purchases of goods, related party transactions | 4,425 | 3,374 | |
Pulmex 2000, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Purchases of goods, related party transactions | 21,414 | 20,667 | 37,794 |
Amounts payable, related party transactions | 2,407 | 3,976 | 5,227 |
Qualyplast, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Purchases of goods, related party transactions | 1,184 | 244 | 230 |
Amounts payable, related party transactions | 251 | 41 | |
Llantas y Accesorios, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 6,378 | 4,213 | 3,374 |
Purchases of property and other assets, related party transactions | 42,554 | 38,947 | 38,581 |
Autos y Tractores de Culiacan, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 336 | 149 | 1,486 |
Purchases of property and other assets, related party transactions | 42,857 | 11,519 | 17,671 |
Camiones y Tractocamiones de Sonora, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 2,636 | 149 | 216 |
Purchases of property and other assets, related party transactions | 91,098 | 270,968 | 19,490 |
Agencia MX-5, S.A de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 6 | 9 | 7 |
Purchases of property and other assets, related party transactions | 63 | 904 | 47 |
Cajeme Motors S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 44 | 89 | 5 |
Purchases of property and other assets, related party transactions | $ 287 | $ 183 | $ 30 |
Income Tax - income tax (benefi
Income Tax - income tax (benefit) expense included in profit and loss (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Income Tax | |||
Total ISR expense | $ 1,211,611 | $ 1,124,978 | $ 1,154,978 |
Country of domicile [member] | |||
Disclosure of Income Tax | |||
Current ISR | 1,321,021 | 1,066,160 | 1,242,553 |
Deferred ISR | 341,131 | 324,415 | (33,718) |
Total ISR expense | 1,662,152 | 1,390,575 | 1,208,835 |
Foreign countries [member] | |||
Disclosure of Income Tax | |||
Current ISR | 33 | (1,859) | 4,294 |
Deferred ISR | (450,574) | (263,738) | (58,151) |
Total ISR expense | $ 1,211,611 | $ 1,124,978 | $ 1,154,978 |
Income Tax - income tax expense
Income Tax - income tax expense attributable to income before income taxes (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax | |||
Expected expense (ISR) | $ 1,555,111 | $ 1,292,925 | $ 1,354,965 |
Expected expense (Percentage) | 30.00% | 30.00% | 30.00% |
Increase (decrease) resulting from: | |||
Net effects of inflation (ISR) | $ (196,379) | $ (168,822) | $ (276,758) |
Net effects of inflation (Percentage) | (4.00%) | (4.00%) | (6.00%) |
(Non-taxable income) Non-deductible expenses (ISR) | $ 7,641 | $ 11,027 | $ 16,648 |
(Non-taxable income) Non-deductible expenses (Percentage) | 0.00% | 0.00% | 0.00% |
Effect of rate difference of foreign subsidiary (ISR) | $ 20,907 | $ 48,658 | $ (16,572) |
Effect of rate difference of foreign subsidiary (Percentage) | 0.00% | 1.00% | 0.00% |
Effect from non-deductible employee benefits (ISR) | $ 115,496 | $ 70,202 | $ 90,820 |
Effect from non-deductible employee benefits (Percentage) | 2.00% | 2.00% | 2.00% |
Effect of tax incentive | $ (69,920) | $ (60,861) | $ 0 |
Effect of tax incentive (Percentage) | (1.00%) | (1.00%) | 0.00% |
Effect of carryback tax losses in the United States of America (ISR) | $ (190,144) | $ 0 | $ 0 |
Effect of carryback tax losses in the United States of America (Percentage) | (4.00%) | 0.00% | 0.00% |
Bargain purchase gain of domestic business acquisition (ISR) | $ (27,267) | $ 0 | $ 0 |
Bargain purchase gain of domestic business acquisition (Percentage) | 0.00% | 0.00% | 0.00% |
Other (ISR) | $ (3,834) | $ (68,151) | $ (14,126) |
Other (Percentage) | 0.00% | (2.00%) | 0.00% |
Income tax expense (ISR) | $ 1,211,611 | $ 1,124,978 | $ 1,154,978 |
Income tax expense (Percentage) | 23.00% | 26.00% | 26.00% |
Income Tax - tax effects of tem
Income Tax - tax effects of temporary differences, tax losses and tax credits (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | |||
Deferred tax assets | $ 261,934 | $ 245,272 | $ 103,826 |
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 3,874,980 | 3,904,493 | 3,767,320 |
Net deferred tax assets | 1,843,509 | 1,432,508 | 1,623,062 |
Net deferred tax liability | 5,718,489 | 5,337,001 | 5,390,382 |
BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 280,682 | 250,412 | 103,877 |
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 18,748 | 5,140 | 51 |
Net deferred tax assets | 261,934 | 245,272 | 103,826 |
Accounts payables | |||
Deferred tax assets | |||
Deferred tax assets | 1,090,676 | 1,097,422 | 1,483,275 |
Accounts payables | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 2,207 | 2,481 | 27,738 |
Employee benefits | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 199,087 | 164,019 | 53,398 |
PTU payable | |||
Deferred tax assets | |||
Deferred tax assets | 1,037 | ||
PTU payable | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 16,690 | 26,020 | 20,536 |
Accounts receivables | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 497,655 | 445,198 | 366,825 |
Tax loss carryforwards | |||
Deferred tax assets | |||
Deferred tax assets | 606,935 | 271,772 | 59,883 |
Tax loss carryforwards | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 60,354 | 56,163 | 0 |
Property, plant and equipments [Member | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 2,915,222 | 2,667,824 | 2,503,172 |
Property, plant and equipments [Member | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 1,696 | 1,113 | |
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 51 | ||
Prepaid expenses | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 286,844 | 332,392 | 647,480 |
Prepaid expenses | BSACV [Member] | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 2,872 | 4,593 | 0 |
Other provision | |||
Deferred tax assets | |||
Deferred tax assets | 144,861 | 63,314 | 76,025 |
Other provision | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 648 | 2,205 | |
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 7,655 | 547 | |
Goodwill | |||
Deferred tax assets | |||
Deferred tax assets | 3,879 | ||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 5,147 | 584 | |
Derivative financial instruments | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 3,773 | 3,803 | 0 |
Derivative financial instruments | BSACV [Member] | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 8,221 | ||
Inventories | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 1,820,929 | 1,696,300 | 1,639,156 |
Inventories | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 616 | ||
Intangible assets [Member] | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | $ 188,919 | $ 190,900 | $ 233,749 |
Income Tax - Movement in tempor
Income Tax - Movement in temporary differences during the fiscal year (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Income Tax | |||
Balance at January 1 | $ 3,659,221 | $ 3,663,494 | $ 3,762,709 |
Recognized in profit and loss | (109,443) | (60,677) | (91,869) |
Acquired or/ Recognized directly in equity | 63,268 | 56,404 | (7,346) |
Balance at December 31 | 3,613,046 | 3,659,221 | 3,663,494 |
Accounts payables | |||
Disclosure of Income Tax | |||
Balance at January 1 | (1,099,903) | (1,511,013) | (1,187,175) |
Recognized in profit and loss | 8,163 | 410,152 | (323,784) |
Acquired or/ Recognized directly in equity | (1,143) | 958 | (54) |
Balance at December 31 | (1,092,883) | (1,099,903) | (1,511,013) |
Employee benefits | |||
Disclosure of Income Tax | |||
Balance at January 1 | (164,060) | (53,398) | (45,519) |
Recognized in profit and loss | (35,027) | (197,728) | (1,317) |
Acquired or/ Recognized directly in equity | 0 | 87,107 | (6,562) |
Balance at December 31 | (199,087) | (164,060) | (53,398) |
PTU payable | |||
Disclosure of Income Tax | |||
Balance at January 1 | (26,020) | (20,536) | (12,917) |
Recognized in profit and loss | 8,293 | (5,484) | (7,619) |
Acquired or/ Recognized directly in equity | 0 | 0 | |
Balance at December 31 | (17,727) | (26,020) | (20,536) |
Tax loss carryforwards | |||
Disclosure of Income Tax | |||
Balance at January 1 | (327,935) | (59,883) | (22,013) |
Recognized in profit and loss | (314,628) | (273,479) | (37,004) |
Acquired or/ Recognized directly in equity | (24,726) | 5,427 | (866) |
Balance at December 31 | (667,289) | (327,935) | (59,883) |
Interest carryforwards | |||
Disclosure of Income Tax | |||
Balance at January 1 | 0 | ||
Recognized in profit and loss | 1,551 | ||
Acquired or/ Recognized directly in equity | (1,551) | ||
Balance at December 31 | 0 | 0 | |
Other provision | |||
Disclosure of Income Tax | |||
Balance at January 1 | (62,767) | (78,230) | (61,045) |
Recognized in profit and loss | (74,804) | 15,436 | (17,240) |
Acquired or/ Recognized directly in equity | (283) | 27 | 55 |
Balance at December 31 | (137,854) | (62,767) | (78,230) |
Goodwill | |||
Disclosure of Income Tax | |||
Balance at January 1 | 584 | (3,879) | (7,562) |
Recognized in profit and loss | 4,371 | 4,391 | 3,604 |
Acquired or/ Recognized directly in equity | 192 | 72 | 79 |
Balance at December 31 | 5,147 | 584 | (3,879) |
Intangible assets | |||
Disclosure of Income Tax | |||
Balance at January 1 | 190,900 | 233,749 | 253,898 |
Recognized in profit and loss | (12,248) | (34,220) | (19,825) |
Acquired or/ Recognized directly in equity | 10,267 | (8,629) | (324) |
Balance at December 31 | 188,919 | 190,900 | 233,749 |
Inventories | |||
Disclosure of Income Tax | |||
Balance at January 1 | 1,695,684 | 1,639,156 | 1,601,498 |
Recognized in profit and loss | 114,135 | 64,120 | 37,319 |
Acquired or/ Recognized directly in equity | 11,110 | (7,592) | 339 |
Balance at December 31 | 1,820,929 | 1,695,684 | 1,639,156 |
Accounts receivables | |||
Disclosure of Income Tax | |||
Balance at January 1 | 445,198 | 366,825 | 421,191 |
Recognized in profit and loss | 52,457 | 78,373 | (54,366) |
Acquired or/ Recognized directly in equity | 0 | 0 | |
Balance at December 31 | 497,655 | 445,198 | 366,825 |
Property, plant and equipments [Member | |||
Disclosure of Income Tax | |||
Balance at January 1 | 2,666,752 | 2,503,223 | 2,428,417 |
Recognized in profit and loss | 177,372 | 184,454 | 74,819 |
Acquired or/ Recognized directly in equity | 69,402 | (20,966) | (13) |
Balance at December 31 | 2,913,526 | 2,666,752 | 2,503,223 |
Prepaid expenses | |||
Disclosure of Income Tax | |||
Balance at January 1 | 336,985 | 647,480 | 393,936 |
Recognized in profit and loss | (47,269) | (310,495) | 253,544 |
Acquired or/ Recognized directly in equity | 0 | 0 | |
Balance at December 31 | 289,716 | 336,985 | 647,480 |
Derivative financial instruments | |||
Disclosure of Income Tax | |||
Balance at January 1 | 3,803 | 0 | |
Recognized in profit and loss | 8,191 | 3,803 | |
Acquired or/ Recognized directly in equity | 0 | 0 | |
Balance at December 31 | $ 11,994 | $ 3,803 | $ 0 |
Income Tax - Tax on assets and
Income Tax - Tax on assets and tax loss carryforwards expire (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Disclosure of Income Tax | |
Tax loss carryforwards | $ 3,045,538 |
2017 | |
Disclosure of Income Tax | |
Tax loss carryforwards | $ 59,033 |
Year of expiration / maturity | P2027Y |
2018 | |
Disclosure of Income Tax | |
Tax loss carryforwards | $ 199,632 |
Year of expiration / maturity | P2028Y |
2019 | |
Disclosure of Income Tax | |
Tax loss carryforwards | $ 1,250,964 |
Year of expiration / maturity | 2029 |
2020 | |
Disclosure of Income Tax | |
Tax loss carryforwards | $ 1,535,909 |
Year of expiration / maturity | 2030 |
Income Tax - Additional informa
Income Tax - Additional information (Details) - MXN ($) $ in Thousands | 12 Months Ended | 24 Months Ended | 36 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2020 | |
Disclosure of Income Tax | |||||
Applicable tax rate | 30.00% | 30.00% | 30.00% | ||
Temporary differences associated with investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | $ 1,802,451 | $ 1,919,720 | $ 2,049,327 | $ 1,919,720 | $ 1,802,451 |
Country of domicile [member] | |||||
Disclosure of Income Tax | |||||
Applicable tax rate | 30.00% | ||||
Foreign countries [member] | |||||
Disclosure of Income Tax | |||||
Applicable tax rate | 21.00% |
Employee benefits - Defined ben
Employee benefits - Defined benefits plan (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of Employee benefits | ||||
Total present value of benefit obligations (PBO) | $ 755,945 | $ 636,202 | $ 500,072 | |
Plan assets at fair value | (163,651) | (148,392) | (197,254) | $ (259,245) |
Projected liability, net | 592,294 | 487,810 | 302,818 | |
Present value of unfunded obligations | ||||
Disclosure of Employee benefits | ||||
Total present value of benefit obligations (PBO) | 592,294 | 487,810 | 302,818 | |
Present value of funded obligations | ||||
Disclosure of Employee benefits | ||||
Total present value of benefit obligations (PBO) | $ 163,651 | $ 148,392 | $ 197,254 |
Employee benefits - Composition
Employee benefits - Composition and return of plan assets (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Employee benefits | |||
Composition Rate of the plan's assets | 100.00% | 100.00% | 100.00% |
Fixed incomes securities [Member] | |||
Disclosure of Employee benefits | |||
Actual Rate Of Return Of Plan's Assets | 11.28% | 12.67% | 5.10% |
Composition Rate of the plan's assets | 63.00% | 62.00% | 67.00% |
Variable income securities [Member] | |||
Disclosure of Employee benefits | |||
Actual Rate Of Return Of Plan's Assets | 9.47% | 15.65% | (10.95%) |
Composition Rate of the plan's assets | 37.00% | 38.00% | 33.00% |
Employee benefits - Movements i
Employee benefits - Movements in the present value of defined benefit obligations (PBO) (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Employee benefits | |||
Benefits paid by the plan | $ (16,772) | ||
Actuarial losses recognized in other comprehensive income | $ 1,581 | (30,136) | |
Present value of defined benefit obligation [member] | |||
Disclosure of Employee benefits | |||
PBO as at January 1 | 636,202 | $ 500,072 | 462,986 |
Benefits paid by the plan | (78,149) | (54,932) | (38,393) |
Service cost | 38,987 | 30,108 | 28,084 |
Interest cost | 53,343 | 50,421 | 41,410 |
Actuarial losses recognized in other comprehensive income | 105,562 | 110,533 | 494 |
Past service cost - plan amendments | 0 | 0 | 5,491 |
PBO as at December 31 | $ 755,945 | $ 636,202 | $ 500,072 |
Employee benefits - Movements_2
Employee benefits - Movements in the fair value of plan assets (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Employee benefits [Line Items] | |||
Plan assets at fair value as at January 1 | $ 148,392 | $ 197,254 | $ 259,245 |
Transfer of assets to fund defined contribution benefit plan | (38,327) | ||
Benefits paid by the plan | (16,772) | ||
Expected return on plan assets | 13,678 | 23,244 | |
Actuarial losses recognized in other comprehensive income | 1,581 | (30,136) | |
Fair value of plan assets as at December 31 | 163,651 | 148,392 | 197,254 |
Current Reported | |||
Disclosure of Employee benefits [Line Items] | |||
Plan assets at fair value as at January 1 | $ 148,392 | 197,247 | |
Transfer of assets to fund defined contribution benefit plan | (39,079) | ||
Benefits paid by the plan | (32,027) | ||
Expected return on plan assets | 19,615 | ||
Actuarial losses recognized in other comprehensive income | 2,636 | ||
Fair value of plan assets as at December 31 | $ 148,392 | $ 197,247 |
Employee benefits - Expense rec
Employee benefits - Expense recognized in profit and loss (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee benefits | |||
Current service cost | $ 38,987 | $ 30,108 | $ 28,084 |
Interest cost, net | 39,665 | 30,806 | 18,166 |
Termination expense | $ 78,652 | $ 60,914 | $ 46,250 |
Employee benefits - Actuarial g
Employee benefits - Actuarial gains and (losses) (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Employee benefits | |||
Amount accumulated as at January, 1 | $ (195,905) | $ (120,378) | |
Recognized during the year | (103,982) | (107,897) | $ (30,629) |
Amount accumulated as at December, 31 | (268,692) | (195,905) | (120,378) |
Present value of defined benefit obligation [member] | |||
Disclosure of Employee benefits | |||
Amount accumulated as at January, 1 | (279,144) | (171,247) | (140,617) |
Recognized during the year | (103,982) | (107,897) | (30,630) |
Amount accumulated as at December, 31 | $ (383,126) | $ (279,144) | $ (171,247) |
Employee benefits - Actuarial a
Employee benefits - Actuarial assumptions (Details) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Employee benefits | |||
Discount rate as at December, 31 | 7.75% | 8.75% | 10.50% |
Rate for future salary increases | 4.50% | 4.50% | 4.50% |
Social security wage increase rate | 3.50% | 3.50% | 3.50% |
Employee benefits - Historical
Employee benefits - Historical information (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of Employee benefits | ||||
Present value of defined benefit obligation | $ 755,945 | $ 636,202 | $ 500,072 | |
Plan assets at fair value | (163,651) | (148,392) | (197,254) | $ (259,245) |
Plan deficit | 592,294 | 487,810 | 302,818 | |
Experience adjustments arising from plan assets/liabilities | (1,581) | 30,136 | ||
Present value of defined benefit obligation [member] | ||||
Disclosure of Employee benefits | ||||
Experience adjustments arising from plan assets/liabilities | (105,562) | (110,533) | (494) | |
Experience adjustments arising from plan assets [Member] | ||||
Disclosure of Employee benefits | ||||
Experience adjustments arising from plan assets/liabilities | $ (1,581) | $ (2,636) | $ 30,136 |
Employee benefits - Sensitivity
Employee benefits - Sensitivity analysis of the defined benefits obligations (Details) - MXN ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of sensitivity analysis for actuarial assumptions | |||
Total present value of benefit obligations (PBO) | $ (755,945) | $ (636,202) | $ (500,072) |
Rate increase (+ 1%) | (733,151) | (625,436) | (443,715) |
Rate decrease (- 1%) | $ (782,404) | $ (647,310) | $ (507,920) |
Actuarial assumption of discount rates | 7.75% | 8.75% | 10.50% |
Pension plan | |||
Disclosure of sensitivity analysis for actuarial assumptions | |||
Total present value of benefit obligations (PBO) | $ (531,251) | $ (442,133) | $ (358,635) |
Rate increase (+ 1%) | (511,884) | ||
Rate decrease (- 1%) | (554,180) | ||
Pension plan | Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions | |||
Rate increase (+ 1%) | (434,134) | (313,585) | |
Rate decrease (- 1%) | (450,391) | (364,699) | |
Seniority premium | |||
Disclosure of sensitivity analysis for actuarial assumptions | |||
Total present value of benefit obligations (PBO) | (203,282) | (173,401) | (119,973) |
Rate increase (+ 1%) | (200,058) | ||
Rate decrease (- 1%) | (206,605) | ||
Seniority premium | Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions | |||
Rate increase (+ 1%) | (170,812) | (109,872) | |
Rate decrease (- 1%) | (176,067) | (121,572) | |
Constructive obligation | |||
Disclosure of sensitivity analysis for actuarial assumptions | |||
Total present value of benefit obligations (PBO) | (21,412) | (20,668) | (21,464) |
Rate increase (+ 1%) | (21,209) | ||
Rate decrease (- 1%) | $ (21,619) | ||
Constructive obligation | Discount rate | |||
Disclosure of sensitivity analysis for actuarial assumptions | |||
Rate increase (+ 1%) | (20,490) | (20,258) | |
Rate decrease (- 1%) | $ (20,852) | $ (21,649) |
Employee benefits - Expected ca
Employee benefits - Expected cash flows (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020MXN ($) | |
Employee benefits | |
20212031 | $ 640,387 |
Employee benefits - Additional
Employee benefits - Additional information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020MXN ($)Rate | Dec. 31, 2019MXN ($)Rate | Dec. 31, 2018MXN ($)Rate | Dec. 31, 2016 | |
Disclosure of Employee benefits | ||||
Defined benefit obligation, at present value | $ 755,945 | $ 636,202 | $ 500,072 | |
Statutory employee profit sharing percentage | 10.00% | |||
Description Of Rights To Receive The Contribution | i) if the employee retires between the first and the 4.99 year of services, he/she does not have the right to receive the contribution made by the Company, ii) if he/she retires on the fifth year of services he/she has the right to receive 50% of the contributions made by the Company and, for each additional service year, the employee has the right to receive an additional 10% of the contributions made by the Company. | |||
Description of nature of benefits provided by plan | i) 20% of employee contributions for employees with 1 - 4.99 years of service, ii) 40% of employee contributions for employees with 5 – 9.99 years of service, and iii) 100% matching contributions for employees with 10 or more years of service or when the employee reaches 40 years of age, regardless of the years of service. | |||
Actuarial assumption of retirement age | 65 years | |||
Mortality average expected life | 65 years | |||
Men [Member] | ||||
Disclosure of Employee benefits | ||||
Mortality average expected life | 17 years 1 month 17 days | |||
Women [Member] | ||||
Disclosure of Employee benefits | ||||
Mortality average expected life | 10 years 11 months 1 day | |||
Bachoco USA, LLC [Member] | ||||
Disclosure of Employee benefits | ||||
Employee benefits expense | $ 4,678 | 1,772 | ||
Foreign defined benefit plans [Member] | Bachoco USA, LLC [Member] | ||||
Disclosure of Employee benefits | ||||
Defined Contribution Plan, Employer Contribution Percentage | 50.00% | |||
Employee benefits expense | $ 16,418 | $ 14,919 | $ 12,999 | |
Defined Contribution Plan, Employer Contribution Percentage Per Employee | 2.00% | |||
Description of vesting requirements for share-based payment arrangement | P10Y | |||
Number of other equity instruments outstanding in share-based payment arrangement | Rate | 26,000 | 26,000 | 26,000 | |
Defined benefit obligation, at present value | $ 44,994 | $ 32,874 | $ 20,922 | |
State defined benefit plans [member] | ||||
Disclosure of Employee benefits | ||||
Employee benefits expense | $ 72,121 | $ 66,134 | $ 62,028 | |
Defined Contribution Plan, Employer Contribution Percentage Per Employee | 2.00% | |||
Bottom of range [member] | ||||
Disclosure of Employee benefits | ||||
Defined Contribution Plan, Employer Contribution Percentage | 1.00% | |||
Actuarial assumption of retirement age | 10 years | |||
Top of range [member] | ||||
Disclosure of Employee benefits | ||||
Defined Contribution Plan, Employer Contribution Percentage | 5.00% | |||
Actuarial assumption of retirement age | 55 years |
Costs and expenses by nature (D
Costs and expenses by nature (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Costs and expenses by nature | ||||
Cost of sales | $ 57,707,566 | $ 51,557,351 | $ 51,422,376 | |
General, selling and administrative expenses | 6,420,397 | 6,116,620 | 6,024,406 | |
Total costs and expenses | 64,127,963 | 57,673,971 | 57,446,782 | |
Inventory consumption | 44,747,933 | 39,823,395 | 40,115,184 | |
Wages and salaries | 8,507,124 | 7,561,229 | 7,348,795 | |
Freight | 5,037,768 | 5,047,007 | 4,809,678 | |
Maintenance | 2,006,848 | 1,715,820 | 1,719,907 | |
Other utility expenses | 1,402,459 | 1,595,993 | 1,591,920 | |
Depreciation | 1,590,303 | 1,265,391 | 1,226,917 | |
Depreciation of right-of-use assets | 307,757 | 302,804 | ||
Leases | [1] | 119,592 | 96,825 | 453,162 |
Other | 408,179 | 265,507 | 181,219 | |
Total | $ 64,127,963 | $ 57,673,971 | $ 57,446,782 | |
[1] | Leasing expense in 2020 and 2019 includes contracts classified as low value or those with terms less than twelve months. The expense corresponding to the 2018 annual period includes everything previously classified as operating leases under IAS 17 - Leases, which was replaced by IFRS 16 Leases. |
Leases (Details)
Leases (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
Leases | ||||
Lease expenses | [1] | $ 119,592 | $ 96,825 | $ 453,162 |
[1] | Leasing expense in 2020 and 2019 includes contracts classified as low value or those with terms less than twelve months. The expense corresponding to the 2018 annual period includes everything previously classified as operating leases under IAS 17 - Leases, which was replaced by IFRS 16 Leases. |
Leases - leased assets with rec
Leases - leased assets with recognized right of use (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of quantitative information about right-of-use assets | |||
Balance at the beginning | $ 1,125,536 | $ 922,410 | |
Additions | 147,631 | 203,126 | |
Modifications and disposal | 12,244 | ||
Balance at the end | 1,285,411 | 1,125,536 | $ 922,410 |
Depreciation | (606,566) | (302,804) | |
Depreciation for the year | (307,757) | (302,804) | |
Currency translation effect | 3,995 | ||
Total | (606,566) | (302,804) | |
Total right of use assets | 678,845 | 822,732 | 0 |
Buildings | |||
Disclosure of quantitative information about right-of-use assets | |||
Balance at the beginning | 380,011 | 320,528 | |
Additions | 101,272 | 59,483 | |
Modifications and disposal | (11,896) | ||
Balance at the end | 469,387 | 380,011 | 320,528 |
Depreciation | (153,987) | (97,736) | |
Depreciation for the year | (58,148) | ||
Currency translation effect | 1,897 | ||
Total | (153,987) | (97,736) | |
Machinery and equipment | |||
Disclosure of quantitative information about right-of-use assets | |||
Balance at the beginning | 447,179 | 370,410 | |
Additions | 39,020 | 76,769 | |
Modifications and disposal | (38,775) | ||
Balance at the end | 447,424 | 447,179 | 370,410 |
Depreciation | (236,330) | (116,391) | |
Depreciation for the year | (119,740) | ||
Currency translation effect | (199) | ||
Total | (236,330) | (116,391) | |
Transportation equipment | |||
Disclosure of quantitative information about right-of-use assets | |||
Balance at the beginning | 283,332 | 219,132 | |
Additions | 4,767 | 64,200 | |
Modifications and disposal | 61,109 | ||
Balance at the end | 349,208 | 283,332 | 219,132 |
Depreciation | (206,627) | (84,120) | |
Depreciation for the year | (126,211) | ||
Currency translation effect | 3,704 | ||
Total | (206,627) | (84,120) | |
Computer | |||
Disclosure of quantitative information about right-of-use assets | |||
Balance at the beginning | 15,014 | 12,340 | |
Additions | 2,572 | 2,674 | |
Modifications and disposal | 1,806 | ||
Balance at the end | 19,392 | 15,014 | $ 12,340 |
Depreciation | (9,622) | (4,557) | |
Depreciation for the year | (3,658) | ||
Currency translation effect | (1,407) | ||
Total | $ (9,622) | $ (4,557) |
Leases - movements in liabiliti
Leases - movements in liabilities for these lease contracts (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lease liabilities | ||
Balance at the beginning | $ 803,050 | $ 922,410 |
Additions | 147,631 | 189,762 |
Modifications and disposals | 70,256 | |
Payment | (386,710) | (325,207) |
Interest paid | 53,639 | 37,797 |
Currency translation effect | 31,845 | (21,712) |
Balance at the end | 719,711 | 803,050 |
Balance at the beginning | (149,538) | 0 |
Additions | (123,276) | |
Currency translation effect | (6,167) | |
Balance at the end | (278,981) | (149,538) |
Balance at the beginning | 653,512 | 0 |
Additions | 24,355 | |
Modifications and Disposals | 70,256 | |
Payment | (386,710) | |
Interest paid | 53,639 | |
Currency translation effect | 25,678 | |
Balance at the end | 440,730 | 653,512 |
Buildings | ||
Lease liabilities | ||
Balance at the beginning | 280,277 | 320,528 |
Additions | 101,272 | 59,297 |
Modifications and disposals | 31,213 | |
Payment | (121,909) | (113,097) |
Interest paid | 17,903 | 17,423 |
Currency translation effect | 1,258 | (3,874) |
Balance at the end | 310,014 | 280,277 |
Machinery and equipment | ||
Lease liabilities | ||
Balance at the beginning | 308,710 | 370,410 |
Additions | 39,020 | 63,662 |
Modifications and disposals | (19,990) | |
Payment | (143,240) | (124,435) |
Interest paid | 26,143 | 11,933 |
Currency translation effect | 28,007 | (12,860) |
Balance at the end | 238,650 | 308,710 |
Transportation equipment | ||
Lease liabilities | ||
Balance at the beginning | 204,258 | 219,132 |
Additions | 4,767 | 64,129 |
Modifications and disposals | 57,473 | |
Payment | (115,851) | (82,381) |
Interest paid | 9,228 | 8,070 |
Currency translation effect | 2,517 | (4,692) |
Balance at the end | 162,392 | 204,258 |
Computer | ||
Lease liabilities | ||
Balance at the beginning | 9,805 | 12,340 |
Additions | 2,572 | 2,674 |
Modifications and disposals | 1,560 | |
Payment | (5,710) | (5,294) |
Interest paid | 365 | 371 |
Currency translation effect | 63 | (286) |
Balance at the end | $ 8,655 | $ 9,805 |
Leases - analysis of the maturi
Leases - analysis of the maturity of the long-term lease liabilities (Details) - MXN ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Maturity of the long-term lease liabilities | $ 440,730 | |
Expense for rental contracts with a term of less than one year | 36,153 | $ 19,116 |
Rental contracts with insignificant amounts | 83,439 | 77,709 |
Total rental contracts | 119,592 | $ 96,825 |
2022 | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Maturity of the long-term lease liabilities | 184,407 | |
2023 | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Maturity of the long-term lease liabilities | 137,727 | |
2024 | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Maturity of the long-term lease liabilities | 57,792 | |
Subsequent | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Maturity of the long-term lease liabilities | $ 60,804 |
Stockholders' equity and rese_3
Stockholders' equity and reserves - Common stock and premiums (Details) | Dec. 31, 2020shares | |
Before the Transaction [Member] | Familiar Trusts [Member] | ||
Disclosure of Stockholders' Equity and Reserves | ||
Number of shares outstanding | 439,500,000 | [1] |
Number of shares outstanding Percentage | 73.25% | |
Before the Transaction [Member] | Floating Position [Member] | ||
Disclosure of Stockholders' Equity and Reserves | ||
Number of shares outstanding Percentage | 26.75% | |
After the Transaction [Member] | Familiar Trusts [Member] | ||
Disclosure of Stockholders' Equity and Reserves | ||
Number of shares outstanding | 439,500,000 | [1] |
Number of shares outstanding Percentage | 73.25% | [1] |
After the Transaction [Member] | Control Trust [Member] | ||
Disclosure of Stockholders' Equity and Reserves | ||
Number of shares outstanding | 312,000,000 | [1] |
Number of shares outstanding Percentage | 52.00% | [1] |
After the Transaction [Member] | Placement Trust [Member] | ||
Disclosure of Stockholders' Equity and Reserves | ||
Number of shares outstanding | 127,500,000 | [1] |
Number of shares outstanding Percentage | 21.25% | [1] |
After the Transaction [Member] | Floating Position [Member] | ||
Disclosure of Stockholders' Equity and Reserves | ||
Number of shares outstanding | 160,500,000 | [1],[2] |
Number of shares outstanding Percentage | 26.75% | [2] |
[1] | All Series B shares with voting power. | |
[2] | Operating at the BMV and the NYSE. |
Stockholders' equity and rese_4
Stockholders' equity and reserves - Stockholders with 1% or more interest in the Company (Details) | Dec. 31, 2020shares |
Renaissance Technologies LLC [Member] | |
Disclosure of Stockholders' Equity and Reserves | |
Number of shares outstanding | 8,058,540 |
Number of Shares outstanding Percentage | 1.34% |
GBM Fondo de Inversin Total, S.A. de C.V [Member] | |
Disclosure of Stockholders' Equity and Reserves | |
Number of shares outstanding | 7,336,703 |
Number of Shares outstanding Percentage | 1.22% |
Stockholders' equity and rese_5
Stockholders' equity and reserves - Reserve for repurchase of shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Stockholders' equity and reserves | |||
Balance as of January 1 | 100,396 | 86,928 | 20,000 |
(+) Total shares purchased | 212,860 | 133,488 | 86,928 |
(-) Total shares sold | (160,488) | (120,020) | (20,000) |
Balance as of December 31 | 152,768 | 100,396 | 86,928 |
Stockholders' equity and rese_6
Stockholders' equity and reserves - Tax balances of stockholders' equity (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2014 | Dec. 31, 2013 | |
IBSA individual [Member] | |||
Disclosure of Stockholders' Equity and Reserves | |||
Current and deferred tax relating to items credited (charged) directly to equity | $ 15,264,739 | $ 9,007,377 | $ 6,257,362 |
IBSA Consolidated [Member] | |||
Disclosure of Stockholders' Equity and Reserves | |||
Current and deferred tax relating to items credited (charged) directly to equity | $ 28,024,448 | $ 21,437,186 | $ 6,587,262 |
Stockholders' equity and rese_7
Stockholders' equity and reserves - Additional information (Details) $ / shares in Units, $ in Thousands | Apr. 22, 2020MXN ($)$ / shares | Apr. 25, 2019MXN ($)$ / shares | Apr. 25, 2018MXN ($)$ / shares | Dec. 31, 2020MXN ($)$ / sharesshares | Dec. 31, 2019MXN ($)$ / sharesshares | Dec. 31, 2018MXN ($)$ / sharesshares | Dec. 31, 2014 | Apr. 24, 2019MXN ($) | Dec. 31, 1998MXN ($) | |
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Debt to EBITDA ratio | 2.75 | |||||||||
Capital redemption reserve | $ 1,266,469 | $ 1,308,367 | $ 562,047 | $ 1,260,000 | $ 180,000 | |||||
Dividend payables | $ 791,744 | $ 840,000 | $ 852,000 | |||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | $ / shares | $ 1.32 | $ 1.40 | $ 1.42 | |||||||
Withholding tax | 10.00% | |||||||||
Tax Bases On Contributions Made By Stockholders Taxfree Refunded | 3,151,852 | |||||||||
Reserve of remeasurements of defined benefit plans | 268,692 | 195,905 | 120,378 | |||||||
Amount of cash flow hedges | $ (267,352) | (19,771) | (307) | |||||||
Treasury shares [member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Number of shares outstanding | shares | 152,768 | |||||||||
Share premium [member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Sale or issue of treasury shares | $ (3,509) | (1,474) | (4,568) | |||||||
Actuarial Remeasurement [Member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Deferred tax expense (income) | $ 114,430 | $ 83,236 | $ 50,867 | |||||||
BSACV [Member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Percentage of entity's revenue | 61.00% | 63.00% | 63.00% | |||||||
Series B registered shares [Member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Number of shares outstanding | shares | 600,000,000 | 600,000,000 | 600,000,000 | |||||||
Par value per share | $ / shares | $ 1 | $ 1 | $ 1 | |||||||
Familiar Trusts [Member] | Before the Transaction [Member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Number of shares outstanding | shares | [1] | 439,500,000 | ||||||||
Number of shares outstanding Percentage | 73.25% | |||||||||
Floating Position [Member] | Before the Transaction [Member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Number of shares outstanding Percentage | 26.75% | |||||||||
Top of range [member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Interest coverage ratio | 3 | |||||||||
Bottom of range [member] | ||||||||||
Disclosure of Stockholders' Equity and Reserves | ||||||||||
Interest coverage ratio | 1 | |||||||||
[1] | All Series B shares with voting power. |
Earnings per share (Details)
Earnings per share (Details) - MXN ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per share | |||
Basic and diluted earnings (loss) per share | $ 6.56 | $ 5.37 | $ 5.58 |
Profit (loss), attributable to owners of parent | $ 3,935,672 | $ 3,219,931 | $ 3,349,967 |
Weighted average number of ordinary shares outstanding | 599,818,022 | 599,971,832 | 599,980,734 |
Commitments (Details)
Commitments (Details) $ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2020USD ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018MXN ($) | Dec. 31, 2020MXN ($) | Dec. 31, 2019MXN ($) | Dec. 31, 2018MXN ($) | |
Disclosure of Commitments | |||||||||
Expense arising from insurance contracts | $ 6,565 | $ 164,356 | $ 6,565 | $ 126,376 | $ 7,269 | $ 139,783 | |||
Borrowings | $ 1,669,904 | $ 1,488,208 | $ 1,609,780 | ||||||
Letters Of credit facility [Member] | Bottom of range [member] | |||||||||
Disclosure of Commitments | |||||||||
Borrowings | 2,900 | 2,900 | 2,900 | 57,855 | 54,781 | 57,043 | |||
Bachoco USA, LLC [Member] | |||||||||
Disclosure of Commitments | |||||||||
Provisions for future non-participating benefits | 4,327 | $ 4,327 | $ 3,801 | 89,576 | $ 81,737 | $ 74,766 | |||
Bachoco USA, LLC [Member] | Health care insurance [Member] | |||||||||
Disclosure of Commitments | |||||||||
Liabilities under insurance contracts and reinsurance contracts issued | 350 | 6,983 | |||||||
Bachoco USA, LLC [Member] | Workers payments insurance [Member] | |||||||||
Disclosure of Commitments | |||||||||
Liabilities under insurance contracts and reinsurance contracts issued | $ 1,000 | $ 19,950 |
Financial income and costs (Det
Financial income and costs (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial income and costs | |||
Interest income | $ 698,962 | $ 988,005 | $ 1,072,991 |
Income from interest in accounts receivable | 7,024 | 3,627 | 4,516 |
Foreign exchange gain, net | 467,534 | 39,323 | |
Effects of valuation of derivative financial instruments | 0 | 0 | 23,919 |
Financial income | 1,173,520 | 991,632 | 1,140,749 |
Effects of valuation of derivative financial instruments | (291) | (8,029) | 0 |
Foreign exchange loss, net | (272,220) | ||
Interest expense and financial expenses on financial debt | (159,169) | (250,820) | (185,913) |
Interest paid on lease | (53,639) | (37,797) | |
Commissions and other financial expenses | (78,230) | (41,502) | (146,255) |
Financial costs | (291,329) | (610,368) | (332,168) |
Financial income, net | $ 882,191 | $ 381,264 | $ 808,581 |
Other (expenses) income (Detail
Other (expenses) income (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Other income | |||
Sale of scrap of biological assets, raw materials, by-products and other | $ 866,027 | $ 1,203,836 | $ 1,041,677 |
Bargain purchase gain of domestic business acquisition (note 4) | 90,889 | 0 | 0 |
Total other income | 956,916 | 1,203,836 | 1,041,677 |
Other expenses | |||
Cost of disposal of biological assets, raw materials, by-products and other | (825,415) | (944,848) | (737,077) |
Other | (494,028) | (263,722) | (201,940) |
Total other expenses | (1,319,443) | (1,208,570) | (939,017) |
Total other (expenses) income, net | $ (362,527) | $ (4,734) | $ 102,660 |