Document And Entity Information
Document And Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Industrias Bachoco S.A.B. de C.V. |
Entity Central Index Key | 1,044,896 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 0 |
Series B Capital Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 600,000,000 |
Consolidated Statements of Fina
Consolidated Statements of Financial Position - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | |||
Cash and cash equivalents | $ 16,112,268 | $ 14,681,204 | $ 14,046,262 |
Investment in securities at fair value through profit or loss | 1,127,841 | 970,292 | 1,242,614 |
Derivative financial instruments | 0 | 8,308 | 1,244 |
Current biological assets | 1,942,193 | 1,961,191 | 1,651,794 |
Prepaid expenses and other current assets | 638,671 | 1,503,945 | 1,587,808 |
Accounts receivable, net | 3,626,878 | 3,629,144 | 2,533,427 |
Due from related parties | 326 | 148,855 | 194,522 |
Inventories | 4,727,333 | 3,970,688 | 3,404,269 |
Total currents assets | 28,225,033 | 26,930,355 | 24,721,988 |
Assets held for sale | 49,523 | 56,728 | 60,048 |
Non-current assets: | |||
Property, plant and equipment, net | 17,320,041 | 15,081,105 | 13,188,131 |
Non-current biological assets | 1,617,503 | 1,668,543 | 1,434,131 |
Deferred income tax | 80,670 | 60,132 | 54,127 |
Goodwill | 1,631,094 | 484,877 | 454,295 |
Intangible assets | 1,040,042 | 0 | 0 |
Other non-current assets | 643,006 | 865,454 | 593,906 |
Total non-currents assets | 22,332,356 | 18,160,111 | 15,724,590 |
Total assets | 50,557,389 | 45,090,466 | 40,446,578 |
Current liabilities: | |||
Short-term debt | 2,852,400 | 1,444,800 | 1,622,850 |
Current portion of long-term debt | 842,651 | 1,652,725 | 9,033 |
Derivative financial instruments | 6,821 | 0 | 0 |
Trade payable and other accounts payable | 4,740,366 | 4,545,177 | 4,597,103 |
Income tax payable | 731,654 | 483,618 | 248,205 |
Due to related parties | 55,252 | 189,966 | 165,628 |
Total current liabilities | 9,229,144 | 8,316,286 | 6,642,819 |
Long term liabilities: | |||
Long-term debt, excluding current installments | 1,553,973 | 950,412 | 2,495,127 |
Deferred income tax | 3,843,379 | 3,912,575 | 3,369,036 |
Employee benefits | 252,965 | 195,019 | 160,218 |
Total long term liabilities | 5,650,317 | 5,058,006 | 6,024,381 |
Total liabilities | 14,879,461 | 13,374,292 | 12,667,200 |
Equity: | |||
Capital stock | 1,174,432 | 1,174,432 | 1,174,432 |
Share premium | 414,385 | 414,385 | 414,017 |
Reserve for repurchase of shares | 493,141 | 449,641 | 777,622 |
Retained earnings | 32,367,912 | 28,244,970 | 24,749,616 |
Foreign currency translation reserve | 1,268,021 | 1,465,657 | 710,439 |
Actuarial remeasurements, net | (98,938) | (86,774) | (97,196) |
Equity attributable to controlling interest | 35,618,953 | 31,662,311 | 27,728,930 |
Non-controlling interest | 58,975 | 53,863 | 50,448 |
Total equity | 35,677,928 | 31,716,174 | 27,779,378 |
Commitments | |||
Contingencies | |||
Total liabilities and equity | $ 50,557,389 | $ 45,090,466 | $ 40,446,578 |
Consolidated Statements of Prof
Consolidated Statements of Profit and Loss and Other Comprehensive Income - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Net revenues | $ 58,050,025 | $ 52,020,303 | $ 46,229,049 |
Cost of sales | (47,502,959) | (42,635,071) | (36,847,508) |
Gross profit | 10,547,066 | 9,385,232 | 9,381,541 |
General, selling and administrative expenses | (5,423,379) | (4,847,858) | (4,323,374) |
Other income (expenses), net | 167,642 | 260,202 | (4,640) |
Operating income | 5,291,329 | 4,797,576 | 5,053,527 |
Finance income | 1,087,641 | 969,174 | 593,845 |
Finance costs | (340,091) | (172,154) | (147,292) |
Net finance income | 747,550 | 797,020 | 446,553 |
Profit before income taxes | 6,038,879 | 5,594,596 | 5,500,080 |
Income taxes | 1,084,444 | 1,643,433 | 1,680,560 |
Profit for the year | 4,954,435 | 3,951,163 | 3,819,520 |
Items that may be reclassified subsequently to profit or loss: | |||
Currency translation effect | (197,636) | 755,218 | 502,332 |
Items that will not be reclassified subsequently to profit or loss: | |||
Actuarial remeasurements | (17,377) | 14,888 | (25,944) |
Income taxes related to actuarial remeasurements | 5,213 | (4,466) | 7,783 |
Other comprehensive income | (209,800) | 765,640 | 484,171 |
Comprehensive income for the year | 4,744,635 | 4,716,803 | 4,303,691 |
Profit attributable to: | |||
Controlling interest | 4,948,242 | 3,946,634 | 3,812,840 |
Non-controlling interest | 6,193 | 4,529 | 6,680 |
Profit for the year | 4,954,435 | 3,951,163 | 3,819,520 |
Comprehensive income attributable to: | |||
Controlling interest | 4,738,442 | 4,712,274 | 4,297,011 |
Non-controlling interest | 6,193 | 4,529 | 6,680 |
Comprehensive income for the year | $ 4,744,635 | $ 4,716,803 | $ 4,303,691 |
Weighted average outstanding shares | 599,997,696 | 599,979,844 | 599,631,383 |
Basic and diluted earnings per share | $ 8.25 | $ 6.58 | $ 6.36 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - MXN ($) $ in Thousands | Total | Capital stock [member] | Share premium [member] | Reserve for repurchase of shares [member] | Retained earnings [member] | Foreign currency translation reserve [member] | Actuarial remeasurements net [member] | Equity attributable to owners of parent [member] | Non-controlling interests [member] |
Balance at Dec. 31, 2014 | $ 24,362,050 | $ 1,174,432 | $ 399,641 | $ 101,105 | $ 22,513,154 | $ 208,107 | $ (79,035) | $ 24,317,404 | $ 44,646 |
Dividends paid | (899,162) | 0 | 0 | 0 | (899,162) | 0 | 0 | (899,162) | 0 |
Dividends paid to non-controlling interest | (878) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (878) |
Repurchase and sale of shares, net | 0 | 0 | 0 | 677,216 | (677,216) | 0 | 0 | 0 | 0 |
Disposal of non-controlling interest from disolution | 13,677 | 0 | 14,376 | (699) | 0 | 0 | 0 | 13,677 | 0 |
Comprehensive income for the year: | |||||||||
Profit for the year | 3,819,520 | 0 | 0 | 0 | 3,812,840 | 0 | 0 | 3,812,840 | 6,680 |
Other comprehensive income | 484,171 | 0 | 0 | 0 | 0 | 502,332 | (18,161) | 484,171 | 0 |
Total comprehensive income for the year | 4,303,691 | 0 | 0 | 0 | 3,812,840 | 502,332 | (18,161) | 4,297,011 | 6,680 |
Balance at Dec. 31, 2015 | 27,779,378 | 1,174,432 | 414,017 | 777,622 | 24,749,616 | 710,439 | (97,196) | 27,728,930 | 50,448 |
Dividends paid | (779,960) | 0 | 0 | 0 | (779,960) | 0 | 0 | (779,960) | 0 |
Dividends paid to non-controlling interest | (1,114) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,114) |
Reserve for repurchase of shares | 0 | 0 | 0 | (328,680) | 328,680 | 0 | 0 | 0 | 0 |
Repurchase and sale of shares, net | 1,067 | 0 | 368 | 699 | 0 | 0 | 0 | 1,067 | 0 |
Comprehensive income for the year: | |||||||||
Profit for the year | 3,951,163 | 0 | 0 | 0 | 3,946,634 | 0 | 0 | 3,946,634 | 4,529 |
Other comprehensive income | 765,640 | 0 | 0 | 0 | 0 | 755,218 | 10,422 | 765,640 | 0 |
Total comprehensive income for the year | 4,716,803 | 0 | 0 | 0 | 3,946,634 | 755,218 | 10,422 | 4,712,274 | 4,529 |
Balance at Dec. 31, 2016 | 31,716,174 | 1,174,432 | 414,385 | 449,641 | 28,244,970 | 1,465,657 | (86,774) | 31,662,311 | 53,863 |
Dividends paid | (780,000) | 0 | 0 | 0 | (780,000) | 0 | 0 | (780,000) | 0 |
Dividends paid to non-controlling interest | (1,081) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,081) |
Reserve for repurchase of shares | 0 | 0 | 0 | 45,300 | (45,300) | 0 | 0 | 0 | 0 |
Repurchase and sale of shares, net | (1,800) | 0 | 0 | (1,800) | 0 | 0 | 0 | (1,800) | 0 |
Comprehensive income for the year: | |||||||||
Profit for the year | 4,954,435 | 0 | 0 | 0 | 4,948,242 | 0 | 0 | 4,948,242 | 6,193 |
Other comprehensive income | (209,800) | 0 | 0 | 0 | 0 | (197,636) | (12,164) | (209,800) | 0 |
Total comprehensive income for the year | 4,744,635 | 0 | 0 | 0 | 4,948,242 | (197,636) | (12,164) | 4,738,442 | 6,193 |
Balance at Dec. 31, 2017 | $ 35,677,928 | $ 1,174,432 | $ 414,385 | $ 493,141 | $ 32,367,912 | $ 1,268,021 | $ (98,938) | $ 35,618,953 | $ 58,975 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Profit for the year | $ 4,954,435 | $ 3,951,163 | $ 3,819,520 |
Adjustments for: | |||
Deferred income tax recognized in profit or loss | (627,090) | 382,904 | 192,070 |
Current income tax recognized in profit or loss | 1,711,534 | 1,260,529 | 1,488,490 |
Depreciation | 1,075,788 | 925,748 | 769,270 |
Goodwill impairment loss | 0 | 0 | 38,619 |
Loss (gain) on disposal of plant and equipment | 41,890 | (157,245) | 90,279 |
Interest income | (857,109) | (646,334) | (489,934) |
Interest expense | 255,997 | 172,154 | 147,292 |
Unrealized foreign exchange loss on loans | 82,600 | 270,850 | 33,300 |
Subtotal | 6,638,045 | 6,159,769 | 6,088,906 |
Derivative financial instruments | 15,129 | (7,064) | 5,425 |
Accounts receivable, net | 162,906 | (1,144,991) | 521,603 |
Due from related parties | 3,967 | 1,154 | (3,518) |
Inventories | (461,783) | (562,905) | (448,404) |
Current and non-current biological assets | 70,941 | (539,395) | (256,969) |
Prepaid expenses and other current assets | 875,307 | 82,324 | (401,711) |
Assets held for sale | 7,205 | 3,320 | (1,465) |
Trade payable and other accounts payable | (350,299) | (43,707) | 629,631 |
Due to related parties | (134,714) | 24,338 | 38,595 |
Income taxes paid | (1,405,256) | (997,028) | (2,087,286) |
Employee benefits | 57,946 | 34,801 | 43,375 |
Net cash provided by operating activities | 5,479,394 | 3,010,616 | 4,128,182 |
Cash flows from investing activities: | |||
Payments for acquisition of property, plant and equipment | (2,126,361) | (2,792,252) | (1,909,771) |
Proceeds from sale of plant and equipment | 35,175 | 278,340 | 71,427 |
Restricted cash | (24,058) | (19,236) | (25,771) |
Investment in securities at fair value through profit or loss | (157,549) | 272,322 | (317,030) |
Other assets | 2,125 | 4,583 | (55,698) |
Interest collected | 857,109 | 646,334 | 489,934 |
Bussiness acquisition including advance payment | (2,494,862) | 0 | (190,595) |
Loans granted to related parties | 0 | 0 | (189,075) |
Collection of principal of loans granted to related parties | 144,562 | 44,513 | 0 |
Net cash used in investing activities | (3,763,859) | (1,565,396) | (2,126,579) |
Cash flows from financing activities: | |||
Payment for repurchase of shares | (1,800) | (4,157) | (40,612) |
Proceeds from issuance of repurchased shares | 0 | 5,224 | 54,289 |
Dividends paid | (780,000) | (779,960) | (899,162) |
Dividends paid to non-controlling interest | (1,081) | (1,114) | (878) |
Proceeds from borrowings | 5,378,915 | 2,320,500 | 3,903,200 |
Principal payment on loans | (4,246,100) | (2,670,474) | (2,231,596) |
Interest paid | (255,997) | (172,154) | (147,292) |
Net cash provided by (used in) financing activities | 93,937 | (1,302,135) | 637,949 |
Net increase in cash and cash equivalents | 1,809,472 | 143,085 | 2,639,552 |
Cash and cash equivalents at January 1 | 14,661,968 | 14,020,491 | 11,028,054 |
Effect of exchange rate fluctuations on cash and cash equivalents | (383,230) | 498,392 | 352,885 |
Cash and cash equivalents at December 31 | $ 16,088,210 | $ 14,661,968 | $ 14,020,491 |
Reporting entity
Reporting entity | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Reporting entity [Abstract] | |
Disclosure of basis of consolidation [text block] | (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, 2017 | |
Disclosure of Basis of preparation [Abstract] | |
Disclosure of basis of preparation of financial statements [text block] | (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 13, 2018, 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 · Biological assets Fair value is 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 $), the official currency of Mexico, which is the currency in which the Company’s accounting records are maintained and functional currency, except for the foreign subsidiaries for which the U.S. dollar is the functional currency as well as the currency in which accounting records are maintained. For disclosure purposes, in the notes to the consolidated financial statements, “thousands of pesos” or “$” 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 $ 19.66 20.64 17.21 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. 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 gross profit margins. These factors are evaluated at least annually. Key sources of estimation uncertainty i. Assessments to determine the recoverability of deferred tax assets On an annual basis the Company prepares 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. 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. e) Issue 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, 2017 as it relates to its consolidated financial statements. Amendments to IAS 12, Income Tax IAS 12 provides requirements on the recognition and measurement of current and deferred tax liabilities or assets. The amendments clarify the requirements on recognition of deferred tax assets for unrealized losses, to address diversity in practice. The Company adopted these amendments which did not have any significant impacts in its consolidated financial statements because the sufficiency of future taxable profits is already evaluated in a manner consistent with these amendments. Amendments to IAS 7, Statements of Cash Flows The amendments come with the objective that entities shall provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities. To achieve this objective, the IASB requires that the following changes in liabilities arising from financing activities are disclosed (to the extent necessary): (i) changes from financing cash flows; (ii) changes arising from obtaining or losing control of subsidiaries or other businesses; (iii) the effect of changes in foreign exchange rates; (iv) changes in fair values; and (v) other changes. The Company's liabilities arising from financing activities consist of borrowings (Note 18). A reconciliation between opening and closing balances is provided in Note 18e. Consistent with the transition provisions of the amendments, the Company has not disclosed comparative information for the prior period. Apart from the additional disclosure in Note 18e, the application of these amendments has had no impact on the Company's consolidated financial statements. Annual Improvements 2014-2016 The annual improvement cycle 2014-2016 makes amendments to the following standards: - IFRS 12, Disclosure of Interests in Other Entities Non-current Assets Held for Sale and Discontinued Operations ii. New IFRS in issue but not yet effective The Company has not applied the following new and revised IFRS that have been issued, but are not yet effective for periods beginning on January 1, 2017. IFRS 9, Financial Instruments IFRS 9, Financial Instruments Financial Instruments: Recognition and Measurement IFRS 9 (2014) is a complete standard that includes the requirements previously issued and the additional amendments to introduce a new expected loss impairment model and limited changes to the classification and measurement requirements for financial assets. More specifically, the new impairment model is based on expected credit losses rather than incurred losses, and will apply to debt instruments measured at amortized cost or FVTOCI, lease receivables, contract assets and certain written loan commitments and financial guarantee contracts. Regarding the new measurement category of FVTOCI, it will apply for debt instruments held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets. All recognized financial assets that are within the scope of IAS 39 are required to be subsequently measured at amortized cost or fair value. With regard to the measurement of financial liabilities designated as of fair value through profit or loss, IFRS 9 requires that the amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability is presented in other comprehensive income, unless the recognition of the effects of changes in the liability’s credit risk in other comprehensive income would create or enlarge an accounting mismatch in profit or loss. Changes in fair value attributable to a financial liability’s credit risk are not subsequently reclassified to profit or loss. In relation to the impairment of financial assets, IFRS 9 requires an expected credit loss model, as opposed to an incurred credit loss model under IAS 39. The expected credit loss model requires an entity to account for expected credit losses and changes in those expected credit losses at each reporting date to reflect changes in credit risk since initial recognition. In other words, it is no longer necessary for a credit event to have occurred before credit losses are recognized. The new general hedge accounting requirements retain the three types of hedge accounting mechanisms currently available in IAS 39. Under IFRS 9, greater flexibility has been introduced to the types of transactions eligible for hedge accounting, specifically broadening the types of instruments that qualify for hedging instruments and the types of risk components of non-financial items that are eligible for hedge accounting. In addition, the effectiveness test has been overhauled and replaced with the principle of an ‘economic relationship’. Retrospective assessment of hedge effectiveness is also no longer required. Enhanced disclosure requirements about an entity’s risk management activities have also been introduced. The Company is in the process of determining the potential impacts on its consolidated financial statements derived from the adoption of this standard, although due to the nature of its operations, significant impacts are not expected. The main tasks included in the work plan for adopting this standard are as follows: Stage 1 Classification and measurement: · Review and update of Company Policies · Elaboration of matrix documenting the business model, the payment of principal and interest (SPPI) criterion and the accounting classification of each financial instrument · Disclosures in the financial statements Stage 2 Hedge accounting: · Review and update of Company Policies · Hedge accounting documentation · Disclosures in the financial statements Stage 3 Impairment: · Review and update of Company Policies · Evaluation of practical expedients and the simplified model for non-financial entities · Disclosures in the financial statements IFRS 15, Revenue from Contracts with Customers IFRS 15, Revenue from Contracts with Customers Clarifications to IFRS 15, Revenue from Contracts with Customers The amendments add clarification in the following areas: · Identification of performance obligations; · Principal versus agent considerations; and · Application guidance for licensing. The amendments introduce additional practical expedients for entities making the transition to IFRS 15 on (i) contract modifications that occurred before the beginning of the last period presented and (ii) contracts that were completed at the beginning of the first period presented. Entities are required to apply the amendments for annual periods beginning on or after January 1, 2018. Earlier application is permitted. The Company conducted an analysis of revenues with customers and determined that the adoption of this standard will not have a potential impact on the Company’s consolidated financial statements. IFRS 16, Leases IFRS 16, Leases Leases Under IFRS 16 a lessee recognizes a right-of-use asset and a lease liability. The right-of-use asset is treated similarly to other non-financial assets and depreciated accordingly and the liability accrues interest. This will typically produce a front-loaded expense profile (whereas operating leases under IAS 17 would typically have had straight-line expenses) as an assumed straight-line depreciation of the right-of-use asset and the decreasing interest on the liability will lead to an overall decrease of expense over the reporting period. The lease liability is initially measured at the present value of the lease payments payable over the lease term, discounted at the rate implicit in the lease if that can be readily determined. If that rate cannot be readily determined, the lessee shall use their incremental borrowing rate. However, a lessee may elect to account for lease payments as an expense on a straight-line basis over the lease term for leases with a lease term of 12 months or less and containing no purchase options (this election is made by class of underlying asset); and leases where the underlying asset has a low value when new, such as personal computers or small items of office furniture (this election can be made on a lease-by-lease basis). IFRS 16 establishes different transitional provisions, including retrospective application or the modified retrospective application where the comparative period is not restated. The Company is in the process of determining the potential impacts on its consolidated financial statements derived from the adoption of this standard, although due to the nature of its operations, significant impacts are not being expected. The main tasks included in the work plan for adopting this standard are as follows: · Evaluation of all contracts of the Company for leases · Development of a process to identify and account for leases · Review and update of Company Policies · Disclosures in the financial statements Amendments to IFRS 2, Share-based Payment The amendments to IFRS 2, Share-based Payment The Company does not expect significant impacts as a result of these amendments as it does not have share-based payment plans. IFRIC 22, Foreign Currency Transactions and Advance Consideration The interpretation clarifies that when the entity pays or receives consideration in advance in a foreign currency, the date of transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, is the date when the anticipated consideration has been paid or received in advance, i.e. when the advance payment or the income received in advance was recognized. These amendments apply for annual periods beginning on or after January 1, 2018 and the entities may choose to apply either retrospectively or prospectively. The Company does not expect significant impacts as a result of these amendments. This is because the Company already accounts for transactions involving the payment or receipt of advance consideration in a foreign currency in a manner consistent with these amendments. IFRIC - 23 Uncertainty about treatment in the income tax This interpretation deals with the determination of taxable income (loss), tax bases, unused fiscal losses, unused tax credits and tax rates, when there is uncertainty about their treatment in accordance with IAS 12. It specifically, considers: · If tax treatments should be considered collectively · Assumptions about tax authorities’ examinations · The determination of taxable income (loss), tax bases, unused tax losses, unused tax credits and tax rates · The effects of changes in the facts and circumstances This interpretation will be effective on January 1, 2019. The Company's management considers that the application of this interpretation will not have a significant impact on its financial statements, since its current practices for determining the effects of income taxes on its financial statements incorporate considerations similar to those set forth in the interpretation. Annual Improvements 2015-2017 Cycle The annual improvements include amendments to IFRS 3 and IFRS 11, to IFRS 12 and to IAS 23, which are all effective for annual periods beginning on or after January 1, 2019. The amendments to IFRS 3 clarify that when an entity obtains control of a business that is a joint operation, the entity must remeasure previously held interests in that business. The amendments to IFRS 11 clarify that when an entity obtains joint control of a business that is a joint operation, the entity does not remeasure previously held interests in that business. The amendments to IFRS 12 clarify that the effects on income taxes for dividends (or distributions of profit) should be recognized in results regardless of how the tax arises. The amendments to IAS 23 clarify that if any specific borrowing remains outstanding after the related asset is ready for its intended use or sale, that borrowing becomes part of the funds that an entity borrows generally when calculating the capitalization rate on general borrowings. The Company is in the process of determining the potential impacts on its consolidated financial statements derived from the adoption of these amendments. Amendments IFRS 4- The application of IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts Amendments to IFRS 4, Insurance Contracts The Company does not expect significant impacts as a result of these modifications. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Significant accounting policies [Abstract] | |
Disclosure of significant accounting policies [text block] | (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, subsidiaries’ financial statements 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. 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 is 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, 2017, 2016 and 2015 the Company did not enter into such transactions. c) Financial instruments i. Non-derivative financial assets Non-derivative financial assets of the Company include cash and cash equivalents, investment in securities (financial assets designated at fair value through profit or loss and financial assets held to maturity), trade receivable and other 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 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. Financial assets valued at fair value through profit and loss A financial asset is presented at fair value through profit and loss if it is classified as held-for-trading or is designated as such on initial recognition. Financial assets are designated at fair value through profit and loss if the Company manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Company’s investment or risk management policy. Costs attributable to the acquisition or issue of such financial assets are recognized in profit and loss as incurred. Financial assets at fair value through profit and loss are measured at fair value, and changes therein are recognized in profit and loss. Held-to-maturity financial assets Held-to-maturity financial assets are debt instruments that the Company has the intention and ability to hold to maturity. Held-to-maturity financial assets are originally recognized at fair value plus any directly attributable transaction costs. Subsequently to initial recognition, held-to-maturity financial assets are measured at their amortized cost by using the effective interest method, less any impairment losses. Any sale or reclassification of a more than insignificant amount of held-to-maturity financial assets would result in the reclassification of all held-to-maturity investments as available-for-sale, and prevent the Company from classifying investment securities as held-to-maturity for the current and the following two years. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income or cost over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. 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. ii. Non-derivative financial instrument 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 during their contractual term. iii. Derivative financial instruments 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. 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. The Company enters into derivative financial instruments, which are designated as fair value hedges for its exposure to commodity price risks (commodities) On initial designation of the derivative as a hedging instrument, the Company formally documents the relationship between hedging instruments and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, and the methods that will be used to assess the prospective and retrospective effectiveness of the hedging. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be highly effective in offsetting the changes in the fair value of the respective hedged items during the period for which the hedge is designated and whether the actual results of each hedge are within a range of 80 125 If the hedging instrument no longer meets the criteria for the hedging accounting treatment, expires or is sold, terminated or exercised, or the designation is revoked, then hedging accounting treatment is discontinued prospectively. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss. iv. 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 on 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. Average Buildings 46 Machinery and Equipment 19 Vehicles 11 Computers 8 Furniture 11 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 mainly integrated by brands 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 minus 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 indications, 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. Expected average Poultry in its different production stages 40-47 Breeder pigs 156 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 Operating leases entered into by the Company are not recognized in the Company’s statement of financial position. Operating lease rentals paid by the Company are 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 are 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. As of December 31, 2017, 2016 and 2015, the Company has not entered into any significant finance lease agreements. 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 and held-to-maturity investment securities) both individually and collectively. All individually significant receivables and held-to-maturity investment securities 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 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 suggested 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 or held-to-maturity investment securities. Interest on impaired assets continues being recognized. When a subsequent event that occurs after impairment has been recognized, it results in the reduction of the loss amount; this reduction is reversed through profit and loss. 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. 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. 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 net cash surrender value which approximates its fair value (see note 17). 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. 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. 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 oblig |
Business and asset acquisitions
Business and asset acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Business And Asset Acquisitions [Abstract] | |
Disclosure of business combinations [text block] | Business and asset acquisitions a) Acquisition of Albertville Quality Foods, Inc. On July 14, 2017, the Company, through its subsidiary OK Foods, Inc., acquired 100 2,449,862 138.10 The purchase of Acquired Co. I benefits the Company´s Poultry segment because it significantly increases OK Foods, Inc.´s product portfolio, significantly increases the client base in the United States of America and opens the opportunity for cross-sales between the clients of Acquired Co. I and OK Foods, Inc., significantly strengthening the presence of OK Foods, Inc. in the self-service channel. Regarding production activities, the acquisition increases the manual cutting process capacity, thereby reducing OK Foods, Inc.´s current cutting costs with external suppliers, and will optimize the production processes by adopting the best practices of both companies for the benefit of the operation as a whole. These benefits are not recognized separately from Goodwill because they do not meet the recognition criteria for identifiable intangible assets. The assets acquired and the assumed liabilities of Acquired Co. I were recognized based on the best estimate of their fair value at the acquisition date. The Company used various valuation techniques to determine fair value. Cost and market approaches were used to determine the value of the property, plant and equipment. Customer relationships and trademarks are valued based on discounted cash flow analysis, relief from royalty and multi-period excess earnings valuation approaches, which use significant unobservable inputs, or level 3 inputs, as defined by the fair value hierarchy. Under these valuation approaches, management made estimates and assumptions about sales, operating margins, growth rates, royalty rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. Due to their liquidity or short-term maturities, as appropriate, the Company concluded that Acquired Co. I´s pre-acquisition carrying amounts for cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities approximate their fair value at the acquisition date, while inventories are recorded at their net realizable value. The following is a summary of the recognized amounts of assets acquired and liabilities assumed at the acquisition date, compared to the consideration paid: Acquisition value Current assets, other than inventories $ 202,873 Inventories 304,594 Property, plant and equipment 547,987 Other current assets 10,189 Intangible assets 969,942 Total assets 2,035,585 Current liabilities (155,798) Deferred income tax (472,088) Acquired net identifiable assets, net 1,407,699 Consideration paid 2,449,862 Goodwill at acquisition date $ 1,042,163 Goodwill arises because the transferred consideration exceeds the identifiable assets acquired net of liabilities assumed on the acquisition date. The goodwill that arose from the acquisitions is not expected to be deductible for tax purposes. Certain estimated values in the acquisition, including goodwill, intangible assets and deferred taxes, have not yet been definitively determined and are subject to revision as new information emerges and the analyses are completed. The purchase price was allocated based on the information available on the date of acquisition. Had the acquisition occurred on January 1, 2017, management estimates that consolidated revenues and consolidated profits for the year ended December 31, 2017 would have totaled $ 61,093,104 5,202,397 Costs related to acquisition. During 2017, the Company incurred costs related to the acquisition of Acquired Co. I of $ 16,145 b) Acquisition of Proveedora La Perla, S.A. de C.V. On July 11, 2017, the Company acquired 100 45,000 The purchase of Acquired Co. II benefits the Other segment due to the fact that it expands its current production capacity for dry pet food. In addition, Acquired Co. II has equipment for the production of wet pet food and pet treats, which will allow the Company to enter this market where it currently does not participate. The production facilities of Acquired Co. II will allow for a reduction of logistics cost since they are within close proximity of the Company´s clients located in the central region of the country, and it will contribute improved customer service. This acquisition will allow for accelerated growth in the pet food business. The assets acquired and the assumed liabilities of Acquired Co. II 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 Acquired Co. II’s pre-acquisition carrying amounts for cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities approximate their fair value at the acquisition date, while inventories are recorded at their net realizable value. 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 $ 13,835 Inventories 5,846 Property, plant and equipment 584,884 Total assets 604,565 Current liabilities (392,646) Deferred income tax (79,423) Acquired net identifiable assets 132,496 Consideration paid 45,000 Bargain purchase gain (note 30) $ 87,496 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 income (expense) (see note 30) in the statement of profit and loss and other comprehensive income. Had the acquisition occurred on January 1, 2017, management estimates that consolidated revenues and consolidated profits for the year ended December 31, 2017 would have totaled $ 58,182,059 5,086,470 Costs related to acquisition. During 2017, the Company incurred costs related to the acquisition of Acquired Co. II of $ 15,465 c) Acquisition of assets from breeding farms from Morris Hatchery, Inc.2015 On July 10, 2015, the Company reached agreement to acquire assets from the breeding farms of Morris Hatchery Inc., located in the state of Georgia, United States of America. This acquisition mainly consists of poultry equipment and biological assets comprised principally of breeding birds that produce hatching eggs. The acquisition benefits the Company given that it did not previously have the capacity of breeding birds that produce hatching eggs, which are used internally. The Company concluded that the transactions represented the acquisition of businesses in accordance with IFRS 3. Below is a summary of the fair value of the net assets acquired as of the acquisition date in conformity with IFRS 3, as well as the purchase price paid. The amounts are final; accordingly, the Company did not utilize the use of the provisional measurement period permitted by IFRS 3. Acquisition value Current and non-current biological assets $ 235,486 Inventories 300 Property, plant and equipment 11,581 Acquired assets, net 247,367 Cash consideration paid 371,300 Goodwill $ (123,933) The acquisition costs paid by the Company were not material, given that it utilized mostly its own resources in the acquisition. Given that the acquisition was for the benefit of the Company’s own internal operations, it is impracticable to determine the amount of revenues or income attributable to the acquired business. Management believes that pro forma revenues and profit for the year, giving effect to the acquisition as of the beginning of the period, do not differ materially from historical revenues and profit for the year reported in the statements of profit or loss and comprehensive income |
Subsidiaries of the Company
Subsidiaries of the Company | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Subsidiaries Of Company [Abstract] | |
Disclosure of subsidiaries [text block] | (5) Subsidiaries of the Company A list of subsidiaries and the Company´s shareholding percentage in such subsidiaries as of December 31, 2017, 2016 and 2015 are presented below: Name Shareholding percentage in subsidiaries December 31, Country 2017 2016 2015 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 - Proveedora La Perla S.A. de C.V. México 100.00 - - The main subsidiaries of the group and their activities are as follows: 51 - Bachoco USA, LLC. holds the shares of OK Foods, Inc. and, therefore, all operations controlled by the Company in the United States of America. Effective January 1, 2016, the Company merged O.K. Industries, Inc., O.K. Farms, Inc., O.K. Foods, Inc. and Ecology Management, Inc. into one surviving entity, O.K. Foods, Inc. 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, mainly for sales to third parties. - The main activity of Bachoco Comercial, S.A. de C.V. and Induba Pavos, S.A. de C.V. is the distribution of chicken, turkey and beef value-added products. - 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. - On December 2016 Wii kit RE LTD. was constituted in Bermuda as a subsidiary of the Company with 100 - In July 2017, the Company acquired Proveedora La Perla, S.A. of C.V., in Mexico, as a subsidiary of the Company with 100% participation, it is dedicated to the elaboration and commercialization of balanced animal feed and pet treats. 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, 2017 | |
Disclosure of operating segments [abstract] | |
Disclosure of operating segments [text block] | (6) Operating segments Reportable segments have been determined based on a line of product 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). a) Operating segment information Year ended December 31, 2017 Poultry Other Total Net revenues $ 52,479,393 5,570,632 58,050,025 Cost of sales 42,767,202 4,735,757 47,502,959 Gross profit 9,712,191 834,875 10,547,066 Finance income 943,477 144,164 1,087,641 Finance costs 295,011 45,080 340,091 Income before taxes 5,522,187 516,692 6,038,879 Income taxes 958,201 126,243 1,084,444 Net income attributable to controlling interest 4,558,370 389,872 4,948,242 Property, plant and equipment, net 15,464,404 1,855,637 17,320,041 Goodwill 1,543,078 88,016 1,631,094 Intangible assets 1,040,042 - 1,040,042 Total assets 45,165,551 5,391,838 50,557,389 Total liabilities 13,525,194 1,354,267 14,879,461 Purchases of property, plant and equipment 3,154,390 358,988 3,513,378 Depreciation and amortization 982,019 93,769 1,075,788 Poultry Other Total revenue $ 52,484,264 5,616,254 Intersegments (4,871) (45,622) Net revenues $ 52,479,393 5,570,632 Year ended December 31, 2016 Poultry Other Total Net revenues $ 46,852,482 5,167,821 52,020,303 Cost of sales 38,285,367 4,349,704 42,635,071 Gross profit 8,567,116 818,116 9,385,232 Finance income 840,640 128,534 969,174 Finance costs 149,319 22,835 172,154 Income before taxes 5,077,042 517,554 5,594,596 Income taxes 1,494,918 148,515 1,643,433 Net income attributable to controlling interest 3,578,049 368,585 3,946,634 Property, plant and equipment, net 13,478,294 1,602,811 15,081,105 Goodwill 396,861 88,016 484,877 Total assets 40,035,990 5,054,476 45,090,466 Total liabilities 11,909,391 1,464,901 13,374,292 Purchases of property, plant and equipment 2,226,493 233,251 2,459,744 Depreciation and amortization 840,624 85,124 925,748 Poultry Other Total revenue $ 46,856,888 5,214,481 Intersegments (4,406) (46,660) Net revenues $ 46,852,482 5,167,821 Year ended December 31, 2015 Poultry Other Total Net revenues $ 41,789,451 4,439,598 46,229,049 Cost of sales 32,906,801 3,940,707 36,847,508 Gross profit 8,882,649 498,892 9,381,541 Income before taxes 5,196,883 303,197 5,500,080 Income taxes 1,590,892 89,668 1,680,560 Net income attributable to controlling interest 3,599,728 213,112 3,812,840 Property, plant and equipment, net 11,805,132 1,382,999 13,188,131 Goodwill 366,280 88,015 454,295 Total assets 36,085,954 4,360,624 40,446,578 Total liabilities 11,325,636 1,341,564 12,667,200 Purchases of property, plant and equipment 1,646,968 177,541 1,824,509 Depreciation and amortization 694,502 74,768 769,270 Poultry Other Total revenue $ 41,796,064 4,484,348 Intersegments (6,613) (44,750) Net revenues $ 41,789,451 4,439,598 b) Geographical information Year ended December 31, 2017 Domestic Foreign Operations Total Net revenues $ 36,013,268 16,533,664 (67,539) 52,479,393 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies Non-current biological assets 899,691 717,812 - 1,617,503 Property, plant and equipment, net 12,143,632 3,320,772 - 15,464,404 Goodwill 212,833 1,330,245 - 1,543,078 Intangible assets - 1,040,042 - 1,040,042 Year ended December 31, 2016 Domestic Foreign Operations Total Net revenues $ 33,414,262 13,496,189 (57,969) 46,852,482 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies Non-current biological assets 902,662 765,881 - 1,668,543 Property, plant and equipment, net 10,481,074 2,997,221 - 13,478,294 Goodwill 212,833 184,028 - 396,861 Year ended December 31, 2015 Domestic Foreign Operations Total Net revenues $ 30,686,151 11,159,936 (56,637) 41,789,451 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies Non-current biological assets 795,157 638,974 - 1,434,131 Property, plant and equipment, net 9,682,701 2,122,431 - 11,805,132 Goodwill 212,833 153,447 - 366,280 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 2017, 2016 and 2015, no customer represented over 10% of the Company’s total revenues. As of December 31, 2017, the Company did not have operations with an individual customer that represented a significant concentration in the United States of America. As of December 31, 2016 the Company has transactions with The Sygma Network, Inc. representing 9 19 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Cash And Cash Equivalents [Abstract] | |
Disclosure of cash and cash equivalents [text block] | (7) Cash and cash equivalents December 31, 2017 2016 2015 Cash and banks $ 15,464,312 9,890,007 4,774,420 Investments with maturities less than three months 623,898 4,771,961 9,246,071 Cash and cash equivalents 16,088,210 14,661,968 14,020,491 Restricted cash 24,058 19,236 25,771 Total cash and cash equivalents and restricted cash $ 16,112,268 14,681,204 14,046,262 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, 2017, 2016 and 2015. |
Financial instruments and risk
Financial instruments and risk management | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial instruments and risk management [Abstract] | |
Disclosure of financial instruments and risk management [Text Block] | (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 optimum 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, 2017, 2016 and 2015, the Company has not identified embedded derivatives. The Company’s derivative financial instruments as of December 31, 2017, 2016 and 2015, do not meet the requirements to be treated as hedges for accounting purposes. Management by type or risk a) Categories of financial assets and liabilities December 31, 2017 2016 2015 Financial assets Cash and cash equivalents $ 16,112,268 14,681,204 14,046,262 Investment in securities at fair value through profit or loss 1,127,841 970,292 1, 242,614 Investments held to maturity 64,629 65,509 52,572 Accounts receivable 2,599,208 2,524,942 1,862,250 Due from related parties 326 148,855 194,522 Long-term receivables 162,337 161,690 128,169 Derivative financial instruments - 8,308 1,244 Financial liabilities Financial debt $ (5,249,024) (4,047,937) (4,127,010) Trade payables, sundry creditors and expenses payable (4,163,443) (4,095,089) (4,088,989) Due to related parties (55,252) (189,966) (165,628) Derivative financial instruments (6,821) - - 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, but are also to 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”). As of December 31, 2017, 2016 and 2015, the balance of held to maturity investments is $ 64,629 65,509 52,572 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 impaired, which amount to $ 141,636 130,290 103,057 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, 2017, 2016 and 2015, the fair value of such credit enhancements, determined by an appraisal at the time the credit lines were granted, is $ 618,481 570,546 563,012 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 Exposure to credit risk December 31, 2017 2016 2015 Cash and cash equivalents $ 16,112,268 14,681,204 14,046,262 Investments in securities at fair value through profit or loss 1,127,841 970,292 1,242,614 Investments held to maturity 64,629 65,509 52,572 Accounts receivable net of guarantees received 2,143,390 2,264,941 1,621,929 Derivative financial instruments - 8,308 1,244 $ 19,448,128 17,990,254 16,964,621 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, 2017 Less than 1 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,163,443 - - Due to related parties 55,252 - - Derivative financial instruments 6,821 Variable-rate maturities In U.S. dollars 2,752,400 - In pesos 942,651 53,973 1,500,000 Interest 162,785 244,484 203,840 Total financial liabilities $ 8,083,352 298,457 1,703,840 December 31, 2016 Less than 1 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,095,089 - - Due to related parties 189,966 - - Variable-rate maturities In U.S. dollars 1,444,800 - - In pesos 1,652,725 950,412 - Interest 142,100 136,859 - Total financial liabilities $ 7,524,680 1,087,271 - December 31, 2015 Less than 1 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,088,989 - - Variable-rate maturities In U.S. dollars 1,462,850 - - In pesos 169,033 2,495,127 - Interest 113,840 98,840 - Total financial liabilities $ 5,834,712 2,593,967 - At least on a monthly basis, management evaluates and advises the Board of Directors on its liquidity. As of December 31, 2017, 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. As of December 31, 2017, the Company participates in the ASERCA program as buyer of the corn and / or sorghum crops, for which the Company must prove that a risk management instrument is maintained against market price fluctuations. Based on the foregoing, the Company entered into “put” options with maturities in March 2018, July, September and December 2017, with companies listed on the Chicago Mercantile Exchange. During 2017, there is no gain or loss from the valuation of these instruments. As of December 31, 2016 and 2015, the Company has economic hedging positions comprised of corn long “puts” with ASERCA, maturing in March 2017, July, September and December 2017 and 2016. The gain on valuation of these instruments is $ 3,189 5,601 As of December 31, 2017, there is no subsidy by ASERCA for the purchase of hedging "puts" to the consumer; however, the Company participates in the "Agriculture by Contract" program with ASERCA, where contracts for the purchase of "put" options are registered with companies listed on the Chicago market exchange and the benefit of this program is the recovery of the breach of Call hedge purchased, in turn, by the producer with ASERCA. Accordingly, as of December 31, 2017, no benefits have been realized under this scheme. As of December 31, 2016, and 2015 the Company maintains a contractual agreement with ASERCA in which the Company will pay 80 20 80 10 Accounting for Government Grants and Disclosure of Government Assistance 67,080 57,051 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 decreased to a level that represents a risk to the Company in the future; therefore, as of December 31, 2017, 2016 and 2015, it has not entered into any derivative financial instrument or other agreement for managing the risk related to a decrease in chicken price. The Company reviews chicken prices frequently in order to evaluate the need of having a financial instrument to manage the risk. 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, 2017, 2016 and 2015, the Company entered into derivative financial instrument positions as economic hedges to cover 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. December 31, 2017 2016 2015 Dollars Mexican Dollars Mexican Dollars Mexican Assets Cash and cash equivalents $ 325,493 6,399,186 126,395 2,608,800 66,929 1,151,844 Investment in securities at fair value through profit or loss 29,212 574,312 27,863 575,085 28,549 491,325 Accounts receivable 1,915 37,640 2,488 51,350 245 4,210 Total assets 356,619 7,011,138 156,746 3,235,235 95,722 1,647,379 Liabilities Trade accounts payable (154,858) (3,044,515) (103,854) (2,143,547) (141,819) (2,440,708) Financial debt (140,000) (2,752,400) (70,000) (1,444,800) (85,000) (1,462,850) Total Liabilities (294,858) (5,796,915) (173,854) (3,588,347) (226,819) (3,903,558) Net asset position 61,761 1,214,223 - - - - Net liability position $ - - (17,108) (353,112) (131,097) (2,256,179) The Company carries out 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. These analyses represent the scenarios that management considers reasonably possible of occurring. Spot exchange rate at Average exchange rate December 31, 2017 2016 2015 2017 2016 2015 Dollars $ 18.91 18.68 15.87 19.66 20.64 17.21 The exchange rate at the date of issuance of the consolidated financial statements is $ 18.19 v. Interest rate risk The Company is exposed to fluctuations in rates for certain financial instruments, such as investments, 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 should be at fixed or variable rate. 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 periods 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. Liabilities Carrying Fair Carrying Fair Carrying Fair 2017 2016 2015 Financial debt $ 5,249,024 5,255,932 4,047,937 4,062,999 4,127,010 4,141,473 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 futures prices of the Chicago Stock Exchange, so these instruments are considered Level 2 hierarchy. Level 1 Level 2 Level 3 Total As of December 31, 2017 Investment in securities at fair value through profit or loss $ 969,309 158,532 - 1,127,841 Derivative financial instruments - (6,821) - (6,821) $ 969,309 151,711 - 1,121,020 Level 1 Level 2 Level 3 Total As of December 31, 2016 Investment in securities at fair value through profit or loss $ 970,292 - - 970,292 Derivative financial instruments - 8,308 - 8,308 $ 970,292 8,308 - 978,600 Level 1 Level 2 Level 3 Total As of December 31, 2015 Investment in securities at fair value through profit or loss $ 1,242,614 - - 1,242,614 Interest rate derivative financial instruments - 195 - 195 Derivative financial instruments - 1,244 - 1,244 $ 1,242,614 1,439 - 1,244,053 Level 1 Level 2 Level 3 Total As of December 31, 2017 Financial debt - bank institutions $ - (3,749,024) - (3,749,024) Financial debt debt securities (1,506,908) - - (1,506,908) $ (1,506,908) (3,749,024) - (5,255,932) Level 1 Level 2 Level 3 Total As of December 31, 2016 Financial debt - bank institutions $ - (2,550,469) - (2,550,469) Financial debt debt securities (1,512,530) - - (1,512,530) $ (1,512,530) (2,550,469) - (4,062,999) Level 1 Level 2 Level 3 Total As of December 31, 2015 Financial debt - bank institutions $ - (2,626,327) (2,626,327) Financial debt debt securities (1,515,146) - - (1,515,146) $ (1,515,146) (2,626,327) - (4,141,473) g) Quantitative sensitivity measurements The following are sensitivity analyses for the most significant risks to which the Company is exposed as of December 31, 2017, 2016 and 2015. These analyses represent the scenarios that management believes are reasonably possible of occurring in future periods and were performed in accordance with the policies of Risk Committee. i. Derivative Financial Instruments related to exchange rate and commodities risks As of December 31, 2017, 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 2017, 2016 and 2015 would have resulted in a valuation gain of $25,971, $41,235 and $0 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 $43,493, $47,639 and $10,575. Effect of Increase Effect of Decrease 2017 2016 2015 2017 2016 2015 Loss (profit) for the year $ (16,094) (9,085) (44,589) $ 21,229 8,785 56,753 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 2017, 2016 and 2015, in the variable rates to which the Company is exposed. Effect of Increase Effect of Decrease 2017 2016 2015 2017 2016 2015 Loss (profit) for the year $ 43,485 15,385 17,375 $ (43,485) (15,385) (17,375) iii. Exchange risk As of December 31, 2017, the Company's net monetary liability position in foreign currency was $1,214,223. The following table shows the Company’s sensitivity of an increase and decrease of 10% for 2017, 2016 and 2015, in exchange rate, which would have an effect in the result from foreign currency position. Effect of Increase Effect of Decrease 2017 2016 2015 2017 2016 2015 Loss (profit) for the year $ (121,422) 35,311 225,618 $ 121,422 (35,311) (225,618) |
Accounts receivable, net
Accounts receivable, net | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Accounts Receivable, Net [Abstract] | |
Disclosure of trade and other receivables [text block] | (9) Accounts receivable, net December 31, 2017 2016 2015 Trade receivables $ 2,673,705 2,482,077 1,867,104 Allowance for doubtful accounts (96,900) (97,400) (81,641) Other receivables 22,403 140,265 76,787 Government grant - - 40 Income tax receivable 57,186 115,428 143,517 Recoverable value-added tax and other recoverable taxes 970,484 988,774 527,620 $ 3,626,878 3,629,144 2,533,427 Past-due but not impaired portfolio December 31, 2017 2016 2015 Past due 0 to 60 days 200,413 164,458 129,315 Past due by more than 60 days 6,190 3,395 3,443 $ 206,603 167,853 132,758 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. 2017 2016 2015 Balance as of January 1 $ (97,400) (81,641) (76,793) Increase in allowance (14,800) (18,405) (17,179) Amounts written off 15,287 2,818 12,454 Currency translation effect 13 (172) (123) Balance as of December 31, $ (96,900) (97,400) (81,641) As of December 31, 2017, 2016 and 2015 the Company has receivables in legal proceedings (receivables for which legal counsel is seeking recoverability) of $ 141,636 130,290 103,057 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. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Inventories Explanatory [Abstract] | |
Disclosure of inventories [text block] | (10) Inventories December 31, 2017 2016 2015 Raw materials and by-products $ 1,861,092 1,515,824 1,155,841 Medicine, materials and spare parts 820,417 808,492 772,226 Balanced feed 296,538 275,845 241,473 Processed chicken 1,561,912 1,154,207 1,112,068 Commercial eggs 46,185 37,242 38,683 Processed beef 58,563 36,599 38,533 Processed turkey 64,918 122,722 34,251 Other processed products 17,708 19,757 11,194 Total $ 4,727,333 3,970,688 3,404,269 Inventory consumption for the years ended December 31, 2017, 2016 and 2015 was $ 37,567,550 34,018,493 |
Biological assets
Biological assets | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of biological assets [Abstract] | |
Disclosure of biological assets, agriculture produce at point of harvest and government grants related to biological assets [text block] | (11) Biological assets Current Non-current Total Balance as at January 1, 2017 $ 1,961,191 1,668,543 3,629,734 Increase due to purchases 291,361 599,273 890,634 Sales - (87,230) (87,230) Net increase due to births 277,621 2,112,110 2,389,731 Production cost 30,892,045 1,532,189 32,424,234 Depreciation - (2,058,461) (2,058,461) Transfers to inventories (31,435,017) (2,112,110) (33,547,127) Other (45,008) (36,811) (81,819) Balance as at December 31, 2017 $ 1,942,193 1,617,503 3,559,696 Current Non-current Total Balance as at January 1, 2016 $ 1,651,794 1,434,131 3,085,925 Increase due to purchases 237,525 604,527 842,052 Sales - (109,776) (109,776) Net increase due to births 240,085 2,034,670 2,274,755 Production cost 29,620,380 1,515,440 31,135,820 Depreciation - (1,903,086) (1,903,086) Transfers to inventories (29,886,985) (2,034,670) (31,921,655) Other 98,392 127,307 225,699 Balance as at December 31, 2016 $ 1,961,191 1,668,543 3,629,734 Current Non-current Total Balance as at January 1, 2015 $ 1,501,428 1,109,233 2,610,661 Increase due to purchases 337,632 603,081 940,713 Sales - 3,032 3,032 Net increase due to births 225,000 1,422,535 1,647,535 Production cost 26,283,885 1,120,359 27,404,244 Depreciation - (1,475,470) (1,475,470) Transfers to inventories (26,746,796) (1,422,535) (28,169,331) Other 50,645 73,896 124,541 Balance as at December 31, 2015 $ 1,651,794 1,434,131 3,085,925 The “Other” category includes the change in fair value of biological assets that resulted in an increase of $ 22,598 18,276 13,020 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, 2017 | |
Disclosure of prepaid expenses and other current assets [Abstract] | |
Disclosure of prepayments and other assets [text block] | (12) Prepaid expenses and other current assets As of December 31, 2017, 2016 and 2015, prepaid expenses and other current assets are as follows: December 31, 2017 2016 2015 Advances to suppliers of inventories $ 234,458 929,815 1,224,454 Prepaid expenses of services 235,652 217,244 130,086 Prepaid expenses of insurance and bonds 88,533 185,678 82,238 Other current assets 80,028 171,208 151,030 Total $ 638,671 1,503,945 1,587,808 |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of assets held for sale [Abstract] | |
Disclosure of non-current assets held for sale and discontinued operations [text block] | (13) Assets held for sale December 31, 2017 2016 2015 Buildings $ 18,920 21,551 24,430 Land 27,765 32,338 32,779 Other 2,838 2,839 2,839 Total $ 49,523 56,728 60,048 The Company recognized gains (losses) on sales of these assets of $ 2,437 0 (24) |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of property, plant and equipment [text block] | (14) Property, plant and equipment Cost Balance as at Additions Disposals Currency Balance as at Land $ 1,210,052 156,000 (8,851) (3,558) 1,353,643 Buildings and construction 10,603,293 896,020 (3,200) (55,829) 11,440,284 Machinery and equipment 12,035,769 2,158,477 (106,310) (66,055) 14,021,881 Transportation equipment 1,611,153 269,462 (105,982) (1,480) 1,773,153 Computer equipment 118,759 13,210 (3,173) (2,805) 125,991 Furniture 174,183 19,515 (23,505) (441) 169,752 Leasehold improvements 5,186 - (2,525) - 2,661 Construction in progress 1,459,682 694 (33,419) 8,190 1,435,147 Total $ 27,218,077 3,513,378 (286,965) (121,978) 30,322,512 Accumulated depreciation Balance as at Depreciation Disposals Currency Balance as Buildings and construction $ (5,131,723) (202,513) 2,074 8,848 (5,323,314) Machinery and equipment (6,064,744) (735,461) 69,960 23,421 (6,706,824) Transportation equipment (741,253) (111,073) 80,177 743 (771,406) Computer equipment (70,293) (15,069) 3,160 698 (81,504) Furniture (128,959) (11,672) 20,779 429 (119,423) Total $ (12,136,972) (1,075,788) 176,150 34,139 (13,002,471) Cost Balance as at Additions Disposals Currency Balance as at Land $ 1,160,809 40,398 (6,257) 15,102 1,210,052 Buildings and construction 10,017,180 423,357 (69,520) 232,276 10,603,293 Machinery and equipment 10,706,221 1,408,298 (355,957) 277,207 12,035,769 Transportation equipment 1,286,212 433,746 (114,222) 5,417 1,611,153 Computer equipment 85,842 29,702 (2,134) 5,349 118,759 Furniture 155,995 20,548 (5,183) 2,823 174,183 Leasehold improvements 8,742 - (3,556) - 5,186 Construction in progress 1,268,545 103,695 - 87,442 1,459,682 Total $ 24,689,546 2,459,744 (556,829) 625,616 27,218,077 Accumulated depreciation Balance as at Depreciation Disposals Currency Balance as Buildings and construction $ (4,942,844) (192,810) 38,726 (34,795) (5,131,723) Machinery and equipment (5,627,281) (630,370) 297,180 (104,273) (6,064,744) Transportation equipment (751,539) (81,783) 94,872 (2,803) (741,253) Computer equipment (60,198) (10,544) 2,918 (2,469) (70,293) Furniture (119,553) (10,241) 2,038 (1,203) (128,959) Total $ (11,501,415) (925,748) 435,734 (145,543) (12,136,972) Balance as at Additions Disposals Currency Balance as at Land $ 1,094,182 57,901 (661) 9,387 1,160,809 Buildings and construction 9,669,990 204,254 (17,191) 160,127 10,017,180 Machinery and equipment 9,816,722 991,378 (262,222) 160,343 10,706,221 Transportation equipment 1,171,030 247,232 (135,257) 3,207 1,286,212 Computer equipment 67,780 22,081 (6,163) 2,144 85,842 Furniture 153,015 6,372 (5,351) 1,959 155,995 Leasehold improvements 21,442 - (12,700) - 8,742 Construction in progress 991,866 295,291 (18,612) - 1,268,545 Total $ 22,986,027 1,824,509 (458,157) 337,167 24,689,546 Accumulated depreciation Balance as at Depreciation Disposals Currency Balance as Buildings and construction $ (4,754,662) (179,402) 9,199 (17,979) (4,942,844) Machinery and equipment (5,210,886) (512,786) 150,685 (54,294) (5,627,281) Transportation equipment (795,625) (59,655) 107,333 (3,592) (751,539) Computer equipment (56,462) (7,946) 6,411 (2,201) (60,198) Furniture (113,638) (9,481) 4,210 (644) (119,553) Total $ (10,931,273) (769,270) 277,838 (78,710) (11,501,415) December 31, Carrying amounts, net 2017 2016 2015 Land $ 1,353,643 1,210,052 1,160,809 Buildings and construction 6,116,970 5,471,570 5,074,336 Machinery and equipment 7,315,057 5,971,025 5,078,940 Transportation equipment 1,001,747 869,900 534,673 Computer equipment 44,487 48,466 25,644 Furniture 50,329 45,224 36,442 Leasehold improvements 2,661 5,186 8,742 Construction in progress 1,435,147 1,459,682 1,268,545 Total $ 17,320,041 15,081,105 13,188,131 Additions of property, plant and equipment in 2017 include assets acquired through business combinations of $ 1,132,871 Land $ 133,347 Buildings and construction 500,608 Machinery and equipment 491,101 Transportation equipment 2,137 Furniture 5,679 Total $ 1,132,871 Additions of property, plant and equipment in 2015 include assets acquired through business combinations of $ 11,581 126 16 11,439 Depreciation expense during the years ended December 31, 2017, 2016 and 2015 was $ 1,075,788 925,748 769,270 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of goodwill [Abstract] | |
Disclosure of goodwill [text block] | (15) Goodwill 2017 2016 2015 Balances at beginning of the year $ 484,877 454,295 349,764 Business combinations (Note 4) 1,042,163 - 123,933 Goodwill impairment loss - - (38,619) Foreign currency effects 104,054 30,582 19,217 Balances at end of year $ 1,631,094 484,877 454,295 Based on market conditions in which the reporting unit operates, the Company’s estimates of fair value indicated an impairment in Ok Farms Morris Hatchery, Inc. Georgia, resulting in the recognition of a goodwill impairment loss of $ 38,619 2,244 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. 2017 Cash-generating unit Final Projection Annual Annual Bachoco - Istmo and Peninsula regions $ 212,833 5 12.52 % 3.00 % Campi 88,015 5 12.52 % 3.00 % Ok Farms - Morris Hatchery, Inc. Arkansas 65,200 5 6.14 % 0.00 % Ok Farms - Morris Hatchery Inc. Georgia 110,091 5 6.14 % 0.00 % Ok Foods- Albertville Quality Foods, Inc. 1,154,955 5 6.14 % 0.00 % $ 1,631,094 2016 Cash-generating unit Final Projection Annual Annual Bachoco - Istmo and Peninsula regions $ 212,833 5 12.91 % 2.70 % Campi 88,015 5 12.91 % 2.10 % Ok Farms - Morris Hatchery, Inc. Arkansas 68,449 5 8.62 % 0.00 % Ok Farms- Morris Hatchery Inc. Georgia 115,580 5 8.62 % 0.00 % $ 484,877 2015 Cash-generating unit Final Projection Annual Annual Bachoco - Istmo and Peninsula regions $ 212,833 5 9.67 % 2.70 % Campi 88,015 5 9.67 % 2.10 % Ok Farms - Morris Hatchery, Inc. Arkansas 57,075 5 9.32 % 0.00 % Ok Farms- Morris Hatchery Inc. Georgia 96,372 5 9.32 % 0.00 % $ 454,295 |
Intangible assets
Intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets and goodwill [abstract] | |
Disclosure of intangible assets [text block] | Intangible assets The balances as of December 31, 2017 for $ 1,040,042 2017 2016 2015 Amortizable intangible assets Customer relationships $ 1,028,747 - - Accumulated amortization (34,876) - - Total net amortizable intangible assets 993,871 - - Trade names not subject to amortization 46,171 Total intangible assets $ 1,040,042 - - |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other non-current assets [Abstract] | |
Disclosure of other non-current assets [text block] | (17) Other non-current assets December 31, 2017 2016 2015 Advances for purchase of property, plant and equipment $ 331,691 552,417 277,277 Investments in life insurance (note 3 (l)) 64,629 65,509 52,572 Security deposits 16,796 15,132 13,574 Other long-term receivable 162,337 161,690 128,169 Intangible assets in process 11,506 12,200 73,125 Other 56,047 58,506 49,189 Total non-current assets $ 643,006 865,454 593,906 |
Financial debt
Financial debt | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial debt [Abstract] | |
Disclosure of borrowings [text block] | (18) Financial debt Short-term financial debt is as follows: December 31, 2017 2016 2015 Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.44 percentage points. $ 1,376,200 - - Loan in the amount of 70,000 thousand dollars, maturing in July 2017, at LIBOR (3) rate plus 0.425 percentage points. 1,376,200 - - Denominated in pesos, maturing in January 2018, at TIIE (1) FIRA (2) rate plus 0.60 percentage points 100,000 - - Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.50 percentage points. - 1,444,800 - Loan of 85,000 thousand dollars, maturing in June 2016, at LIBOR (3) rate plus 0.48 percentage points - - 1,462,850 Denominated in pesos, maturing in January 2016, at TIIE (1) FIRA (2) rate plus 0.85 percentage points - - 160,000 Total short-term debt $ 2,852,400 1,444,800 1,622,850 The annual weighted average interest rate of short-term loans denominated in pesos for 2017 was 8.06 3.13 8.06 4.17 The annual weighted average interest rate of short-term loans denominated in dollars for the years 2017, 2016 and 2015 was 1.22 1.04 1.05 1.57 1.05 0.83 (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 b) Long-term debt consists of the following: December 31, 2017 2016 2015 Denominated in pesos, maturing in September 2017, at TIIE (1) rates plus 0.63 percentage points. $ 98,000 100,000 Denominated in pesos, maturing in 2017 and 2018, at TIIE (1) FIRA (2) rates less 0.25 percentage points. 553,651 603,739 603,871 Denominated in pesos, maturing in 2018, at TIIE (1) FIRA (2) rates less 0.60 percentage points. 289,000 293,400 297,800 Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.25 percentage points. 53,973 53,978 - Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.50 percentage points. 54,000 - Denominated in pesos, maturing in 2015 and 2016, at TIIE (1) plus 1.00 percentage points. - 2,489 Debt securities (subsection (d)) - 1,500,000 1,500,000 Debt securities (subsection (d)) 1,500,000 - - Total 2,396,624 2,603,137 2,504,160 Less current maturities (842,651) (1,652,725) (9,033) Long-term debt, excluding current maturities $ 1,553,973 950,412 2,495,127 The annual weighted average interest rate on long-term debt for 2017, 2016 and 2015 was 7.72 4.04 3.07 7.48 5.63 3.56 (1) TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate (2) FIRA (for its acronym in Spanish) = Trust Established in Relation to Agriculture During 2017 the Company made early payments on its long-term debt of $ 53,900 As of December 31, 2017, 2016 and 2015, total unused lines of credit totaled $ 7,031,813 5,551,263 6,156,229 c) Maturities of long-term debt, excluding current maturities, as of December 31, 2017, are as follows: Year Amount 2019 53,973 2022 1,500,000 1,553,973 Interest expense on total loans during the years ended December 31, 2017, 2016 and 2015, amounted to $ 188,597 129,769 93,964 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, 2017, 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 28, 2012, the Company was authorized to issue debt securities in the total amount of the program of $ 5,000,000 1,500,000 15,000,000 100 On August 25, 2017, the debt securities issued with ticker "BACHOCO 12" expired, and were paid according to the contractual terms of the issuance. On August 25, 2017, a second issuance of debt securities was carried out for a total amount of $ 1,500,000 15,000,000 100 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 amortization 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 amortized as part of financial expense using the effective interest rate through the expiration of each transaction. Such costs include commissions and professional fees. (1) UDIS = Investment units Derived from the issuance of the Debt securities, the Company is subject to certain requirements, affirmative and negative covenants, with which they comply as of December 31, 2017. e) Reconciliation of liabilities arising from financing activities Balance as of January 1, 2017 $ 4,047,937 Changes that represent cash flows Proceeds from borrowings 5,378,915 Principal payment on loans (4,246,100) Changes that do not represent cash flows Others 68,272 Balance as of December 31, 2017 $ 5,249,024 |
Trade accounts and other accoun
Trade accounts and other accounts payable | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of trade accounts and other accounts payables [Abstract] | |
Disclosure of trade and other payables [text block] | (19) Trade accounts and other accounts payable December 31, 2017 2016 2015 Trade payables $ 3,684,220 3,646,410 3,800,407 Sundry creditors and expenses payable 479,223 448,679 288,582 Provisions 103,474 105,434 202,303 Statutory employee profit sharing 42,940 42,134 31,730 Retained payroll taxes and other local taxes 241,739 214,558 197,806 Direct employee benefits 171,784 76,721 72,898 Interest payable 16,904 11,160 3,306 Others 82 81 71 $ 4,740,366 4,545,177 4,597,103 Note 8 discloses the Company’s exposure to the exchange and liquidity risks related to trade accounts payable and other accounts payable. On December 2009, the Mexican Federal Competition Agency (CFC, for its Spanish acronym) released a news report in which it announced an investigation on the Mexican poultry industry in reference to possible monopolistic practices. As a result of this investigation, CFC imposed several fines to the Company for supposedly having certain practices where the price of chicken was manipulated. Although the Company and its legal advisors considered that the interposed legal processes were well sustained and attended, a provision that was considered adequate was recognized. During 2016 these judgments were concluded in favor of the Company's interests, for which reason the provision recorded for this purpose was canceled. Additionally, 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, 2017, 2016 and 2015, the Company has recorded provisions of $ 39,320 2,000 41,280 2,000 51,630 3,000 |
Transactions and balances with
Transactions and balances with related parties | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of transactions and balances with related parties [Abstract] | |
Disclosure of related party [text block] | (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, 2017, 2016 and 2015: December 31, 2017 2016 2015 Compensation $ 56,201 53,531 42,295 (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 Transaction value Balance as of December 31, December 31, 2017 2016 2015 2017 2016 2015 Sales of products to: Vimifos, S.A. de C.V. $ 47,344 41,715 32,827 $ 326 4,261 5,447 Frescopack, S.A. de C.V. 10 66 - 32 - Autos y Accesorios, S.A. de C.V. - - 419 - - - Taxis Aéreos del Noroeste, S.A. de C.V. 1,013 1,927 135 - 144,562 189,075 $ 48,367 43,708 33,381 $ 326 148,855 194,522 The balance of Taxis Aéreos del Noroeste, S.A. de C.V. as of December 31, 2016 and 2015 for $ 144,562 189,075 ii. Expenses and balances payable to related parties Transaction value Balance as of December 31, December 31, 2017 2016 2015 2017 2016 2015 Purchases of food, raw materials and packing supplies Vimifos, S.A. de C.V. $ 392,226 554,282 477,920 $ 12,830 126,396 91,982 Frescopack, S.A. de C.V. 179,357 137,752 181,802 29,537 35,931 37,827 Pulmex 2000, S.A. de C.V. 26,700 41,122 42,263 8,138 7,528 16,181 Qualyplast, S.A. de C.V. 95 193 237 - 64 158 Purchases of vehicles, tires and spare parts Maquinaria Agrícola, S.A. de C.V. $ 793 34,446 41,947 64 1,898 4,074 Llantas y Accesorios, S.A. de C.V. 35,225 29,457 29,269 4,207 3,449 2,732 Autos y Accesorios, S.A. de C.V. 24,645 40,575 29,510 57 1,985 3,364 Autos y Tractores de Culiacán, S.A. de C.V. 14,037 39,504 54,853 79 5,298 3,100 Camiones y Tractocamiones de Sonora, S.A. de C.V. 85,448 153,802 69,779 172 6,137 5,815 Agencia MX-5, S.A de C.V. 15 25 1 4 2 - Alfonso R. Bours, S.A. de C.V. 428 394 526 95 94 93 Cajeme Motors S.A. de C.V. 29 7,974 6,632 1 710 2 Airplane leasing expenses Taxis Aéreos del Noroeste, S.A. de C.V. $ 7,854 7,739 7,874 68 474 300 $ 55,252 189,966 165,628 As of December 31, 2017, 2016 and 2015, 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, 2017 | |
Disclosure of Income Tax [Abstract] | |
Disclosure of income tax [text block] | (21) Income Tax Under the tax legislation in Mexico and the United States of America in effect through December 31, 2017, 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, 2017, 2016 and 2015, the applicable rate under the general tax regime in Mexico is 30 38.79 35 21 As of December 31, 2017, 2016 and 2015, 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 December 31 2017 2016 2015 Operation in Mexico: Current ISR 1,512,721 1,215,171 1,291,536 Deferred ISR (157,646) 264,086 146,595 1,355,075 1,479,257 1,438,131 Foreign operation: Current ISR 198,813 45,358 196,954 Deferred ISR (469,444) 118,818 45,475 Total ISR expense $ 1,084,444 1,643,433 1,680,560 Total income tax expense December 31, 2017 2016 2015 ISR Percentage ISR Percentage ISR Percentage Expected expense $ 1,811,667 30 % $ 1,678,379 30 % $ 1,650,025 30 % Increase (decrease) resulting from: Net effects of inflation (329,516) (5) % (144,611) (2) % (87,322) (2) % (Non-taxable income) Non-deductible expenses 88,330 1 % 14,550 0 % (4,882) (0) % Effect of rate difference of foreign subsidiary 702 0 % 21,979 0 % 57,103 1 % Effect from non-deductible employee benefits 83,953 1 % 71,868 1 % 74,173 1 % Effect of change of income tax rate in the United States of America (443,104) (7) % - - - - Cancellation of loss by acquisition (129,036) (2) % Other 1,448 0 % 1,268 0 % (8,537) 0 % Income tax expense $ 1,084,444 18 % $ 1,643,433 29 % $ 1,680,560 30 % 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. December 31, 2017 2016 2015 Deferred tax assets Accounts payable $ 16,404 831 764 Employee benefits 45,519 42,221 32,572 PTU payable 12,917 12,700 9,516 Accounts receivable - - 404 Tax loss carryforwards - 2,760 10,236 Property, plant and equipment - - 490 Other provisions 7,025 1,754 239 Total deferred tax assets 81,865 60,266 54,221 Deferred tax liabilities Property, plant and equipment 59 82 - Prepaid expenses 1,136 52 94 Total deferred tax liabilities 1,195 134 94 Net deferred tax assets 80,670 60,132 54,127 December 31, 2017 2016 2015 Deferred tax assets Accounts payable $ 1,170,771 964,676 1,093,145 Tax loss carryforwards 22,013 676 1,081 Goodwill 7,562 19,846 22,326 Other provisions 54,020 24,049 6,606 Derivative financial instruments - - 859 Total deferred tax assets 1,254,366 1,009,247 1,124,017 Deferred tax liabilities Inventories 1,601,498 1,612,890 1,400,793 Accounts receivable 421,191 438,146 382,585 Property, plant and equipment 2,428,358 2,566,002 2,356,509 Prepaid expenses 392,800 302,958 353,166 Derivative financial instruments 253,898 1,826 - Total deferred tax liabilities 5,097,745 4,921,822 4,493,053 Net deferred tax liability $ 3,843,379 3,912,575 3,369,036 d) Unrecognized deferred tax assets December 31, 2017 2016 2015 Recoverable tax on assets - - 1,774 Total $ - - 1,774 e) 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, 2017 and 2016 amounts to $ 2,587,954 1,962,545 f) Movement in temporary differences during the fiscal year January 1, Recognized Acquired or/ December Accounts payable $ (965,507) (223,640) 1,972 (1,187,175) Employee benefits (42,221) 1,915 (5,213) (45,519) PTU payable (12,700) (217) - (12,917) Tax loss carryforwards (3,436) (18,577) - (22,013) Other provisions (25,803) (35,577) 335 (61,045) Goodwill (19,846) 10,895 1,389 (7,562) Intangible assets - - 253,898 253,898 Inventories 1,612,890 (82,523) 71,131 1,601,498 Accounts receivable 438,146 (16,955) - 421,191 Property, plant and equipment 2,566,084 (351,511) 213,844 2,428,417 Prepaid expenses 303,010 90,926 - 393,936 Derivative financial instruments 1,826 (1,826) - - Net deferred tax liability $ 3,852,443 (627,090) 537,356 3,762,709 January 1, Recognized Acquired or/ December Accounts payable $ (1,093,909) 134,658 (6,256) (965,507) Employee benefits (32,572) (14,115) 4,466 (42,221) PTU payable (9,516) (3,184) - (12,700) Tax loss carryforwards (11,317) 7,881 - (3,436) Other provisions (6,846) (18,200) (757) (25,803) Goodwill (22,326) 6,272 (3,792) (19,846) Inventories 1,400,793 167,441 44,656 1,612,890 Accounts receivable 382,182 55,964 - 438,146 Property, plant and equipment 2,356,019 93,752 116,313 2,566,084 Prepaid expenses 353,260 (50,250) - 303,010 Derivative financial instruments (859) 2,685 - 1,826 Net deferred tax liability $ 3,314,909 382,904 154,630 3,852,443 January 1, Recognized Acquired or/ December Accounts payable $ (1,125,260) 35,489 (4,138) (1,093,909) Employee benefits (21,515) (3,274) (7,783) (32,572) PTU payable (6,800) (2,716) - (9,516) Tax loss carryforwards (25,455) 14,389 (251) (11,317) Other provisions (16,101) 9,379 (124) (6,846) Goodwill - (20,588) (1,738) (22,326) Inventories 1,188,259 187,852 24,682 1,400,793 Accounts receivable 410,870 (28,688) - 382,182 Property, plant and equipment 2,365,620 (88,973) 79,372 2,356,019 Prepaid expenses 257,329 95,931 - 353,260 Derivative financial instruments 5,872 (6,731) - (859) Net deferred tax liability $ 3,032,819 192,070 90,020 3,314,909 g) Tax on assets and tax loss carryforwards Amount as of December 31, 2017 Year Tax loss Year of expiration / 2017 $ 73,538 2027 |
Employee benefits
Employee benefits | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Employee benefits [Abstract] | |
Disclosure of employee benefits [text block] | (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 5 1 5 1 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 (4 year of services during 2015), 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. The expenses for paid contributions to defined contribution plans, other than those mandated by Mexican law, were $ 0 1,597 1,481 The Company makes payments equivalent to 2 56,063 50,047 46,670 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. Additionally, 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 at 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. 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. December 31, 2017 2016 2015 Present value of unfunded obligations $ 252,965 195,019 160,218 Present value of funded obligations 259,245 267,535 286,881 Total present value of benefit obligations (PBO) 512,210 462,554 447,099 Plan assets at fair value (259,245) (267,535) (286,881) Projected liability, net $ 252,965 195,019 160,218 i. Actual return of the plan Composition of the plan 2017 2016 2015 2017 2016 2015 Fixed income securities 7.18 % 7.16 % 1.25 % 61 % 64 % 60 % Variable income securities 12.78 % 10.07 % 4.87 % 39 % 36 % 40 % Total 100 % 100 % 100 % ii. 2017 2016 2015 PBO as at January 1 $ 462,554 447,099 405,703 Benefits paid by the plan (32,940) (26,031) (25,244) Service cost 28,968 29,604 26,836 Interest cost 40,170 34,857 31,603 Actuarial (gains) losses recognized in other comprehensive income 13,458 (24,827) 8,201 Past service cost plan amendments - 1,852 - PBO as at December 31 $ 512,210 462,554 447,099 iii. 2017 2016 2015 Plan assets at fair value as at January 1 $ 267,535 286,881 314,804 Transfer of assets to fund defined contribution benefit plan (10,664) (25,600) (24,187) Benefits paid by the plan (17,049) (9,457) (10,894) Expected return on plan assets 23,342 25,650 24,901 Actuarial losses in other comprehensive income (3,919) (9,939) (17,743) Fair value of plan assets as at December 31 $ 259,245 267,535 286,881 iv. 2017 2016 2015 Current service cost $ 28,968 29,604 26,836 Interest cost, net 16,828 9,207 6,702 $ 45,796 38,811 33,538 v. 2017 2016 2015 Amount accumulated as at January, 1 $ (123,240) (138,128) (112,184) Recognized during the year (17,377) 14,888 (25,944) Amount accumulated as at December, 31 $ (140,617) (123,240) (138,128) vi. Primary actuarial assumptions at the consolidated financial statements date (expressed as weighted averages) are as follows. 2017 2016 2015 Discount rate as at December, 31 9.25 % 9.00 % 8.00 % 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. December 31, 2017 2016 2015 Present value of defined benefit obligation $ 512,210 462,554 447,099 Plan assets at fair value (259,245) (267,535) (286,881) Plan deficit $ 252,965 195,019 160,218 Experience adjustments arising from plan liabilities $ 13,458 (24,827) 8,201 Experience adjustments arising from plan assets $ (3,919) (9,939) (17,743) viii. 2017 Pension Seniority Constructive Total Discount rate 9.25% (343,485) (99,735) (68,990) (512,210) Rate increase (+ 1%) (314,460) (94,308) (65,113) (473,881) Rate decrease (- 1%) (377,114) (105,810) (73,338) (556,262) 2016 Pension Seniority Constructive Total Discount rate 9.00% (308,885) (93,877) (59,792) (462,554) Rate increase (+ 1%) (280,316) (88,657) (56,237) (425,210) Rate decrease (- 1%) (312,017) (99,733) (63,796) (475,546) 2015 Pension Seniority Constructive Total Discount rate 8.00% (293,443) (93,037) (60,619) (447,099) Rate increase (+ 1%) (248,925) (87,540) (56,784) (393,249) Rate decrease (- 1%) (338,238) (99,240) (64,961) (502,439) ix. Expected cash flows Total 2018-2028 $ 522 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 2 11,497 10,909 8,014 Equity-based compensation Bachoco USA, LLC. has a deferred payment agreement with certain key employees. Amounts payable under this plan are vested after 10 26,000 26,000 38,000 3,378 3,337 4,195 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 |
Costs and expenses by nature
Costs and expenses by nature | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of costs and expenses by nature [Abstract] | |
Disclosure of expenses [text block] | (23) Costs and expenses by nature 2017 2016 2015 Cost of sales $ 47,502,959 42,635,071 36,847,508 General, selling and administrative expenses 5,423,379 4,847,858 4,323,374 Total costs and expenses $ 52,926,338 47,482,929 41,170,882 Inventory consumption $ 37,567,550 34,018,493 28,877,468 Wages and salaries 6,605,584 5,971,382 5,127,750 Freight 4,176,508 3,712,349 3,394,780 Maintenance 1,471,392 1,292,763 1,166,326 Other utility expenses 1,334,339 1,005,570 1,020,610 Depreciation 1,075,788 925,748 769,270 Leases 416,437 403,116 359,749 Other 278,740 153,508 454,929 Total $ 52,926,338 47,482,929 41,170,882 |
Operating leases
Operating leases | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Operating leases [Abstract] | |
Disclosure of leases [text block] | (24) Operating leases Company as lessee The Company has entered into 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. 2017 2016 2015 Lease expenses $ 416,437 403,116 359,749 The amount of annual rentals payable, arising from lease agreements for the following five years is as follows: 2018 $ 184,253 2019 140,420 2020 120,365 2021 103,316 2022 120,031 |
Stockholders' equity and reserv
Stockholders' equity and reserves | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Stockholders’ Equity and Reserves [Abstract] | |
Disclosure of share capital, reserves and other equity interest [text block] | 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 doesn’t exceed 2.75 3 1 During 2017, 2016 and 2015 these ratios were below the thresholds established by the Company’s Risk Committee. b) Common stock and premiums As of December 31, 2017, 2016 and 2015, the Company’s capital stock is represented by 600,000,000 1 The Robinson Bours family owned 496,500,000 82.75 On December 9, 2013, the members of the placement trust decided to sell 57,000,000 9.5 Before the Transaction After the Transaction Shares (1) Position Shares (1) Position Familiar Trusts 496,500,000 82.75 % 439,500,000 73.25 % - Control Trust 312,000,000 52.00 % 312,000,000 52.00 % - Placement Trust 184,500,000 30.75 % 127,500,000 21.25 % Floating Position (2) 103,500,000 17.25 % 160,500,000 26.75 % (1) All Series B shares with voting power. (2) Operating at the BMV and the NYSE. Shares Position Renaissance Technologies LLC 6,562,800 1.09 % 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, 2017 and 2016 amounts to $ 98,938 86,774 41,679 36,466 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 On April 26, 2017, pursuant to a resolution at the General Ordinary Stockholders’ Meeting, an amount of $ 494,940 2017 2016 2015 Balance as at January 1 - 10,000 - (+) Total shares purchased 20,000 100,157 677,013 (-) Total shares sold - (110,157) (667,013) Balance as at December 31 20,000 - 10,000 The net amount of repurchase and treasury share sale transactions gave rise to loss of ($ 1,800 368 14,376 As at December 31, 2017, the Company has 20,000 e) Dividends During the years ended December 31, 2017, 2016 and 2015, the Company has declared and paid the following dividends: On April 26, 2017, the Company declared a payment of dividends in cash at nominal value of $ 780,000 1.30 On April 27, 2016, the Company declared a payment of dividends in cash at nominal value of $ 780,000 1.30 40 On April 22, 2015, the Company declared a payment of dividends in cash at nominal value of $ 900,000 1.50 838 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 The Company obtains most of its revenue and net income from BSACV. For fiscal years 2017, 2016 and 2015, net income of BSACV, accounted for 63 65 67 f) Tax balances of stockholders’ equity CUFIN Balance as Balance Total IBSA individual $ 7,445,747 5,890,995 13,336,742 IBSA Consolidated 8,273,539 10,719,930 18,993,469 The restated amount as of December 31, 2017 on tax bases of the contributions made by stockholders (CUCA), totaling $ 2,834,872 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Earnings per share [Abstract] | |
Disclosure of earnings per share [text block] | (26) Earnings per share The basic and diluted earnings per share for the years ended December 31, 2017, 2016 and 2015 are $ 8.25 6.58 6.36 4,948,242 3,946,634 3,812,840 The average weighted number of common outstanding in 2017, 2016 and 2015 was 599,997,696, 599,979,844 and 599,631,383 shares, respectively. The Company has no ordinary shares with potential dilutive effects. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Commitments [Abstract] | |
Disclosure of commitments [text block] | (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 $6,881 (350 thousand dollars) each year per plan participant and workers’ payments claims up to $19,660 (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 $98,221 (4,996 thousand dollars), $75,873 (3,676 thousand dollars) and $69,718 (4,051 thousand dollars) as at December 31, 2017, 2016 and 2015, respectively. Likewise, the consolidated statement of comprehensive income includes expenses relating to self-insurance plans of $221,644, (11,721 thousand dollars), $120,729 (6,463 thousand dollars) and $108,360 (6,828 thousand dollars) for the years ended December 31, 2017, 2016 and 2015, respectively. The Company is required to maintain letters of credit on behalf of the subsidiary of $57,014, (2,900 thousand dollars) during 2017 and $70,176 and $58,514 (3,400 thousand dollars) as at December 31, 2016 and 2015, respectively, 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, 2017 | |
Disclosure of Contingencies [Abstract] | |
Disclosure of contingent liabilities [text block] | (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. At the end of 2016 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, 2017 | |
Disclosure of Financial income and costs [Abstract] | |
Disclosure of finance income (cost) [text block] | (29) Financial income and costs 2017 2016 2015 Interest income $ 848,148 637,977 482,442 Income from interest in accounts receivable 8,961 8,357 7,492 Foreign exchange gain, net 230,532 297,463 95,447 Effects of valuation of derivative financial instruments - 25,377 8,464 Financial income 1,087,641 969,174 593,845 Effects of valuation of derivative financial instruments (84,094) - - Interest expense and financial expenses on financial debt (188,597) (129,769) (93,964) Commissions and other financial expenses (67,400) (42,385) (53,328) Financial costs (340,091) (172,154) (147,292) Financial income, net $ 747,550 797,020 446,553 |
Other income (expenses)
Other income (expenses) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Other income expenses [Abstract] | |
Disclosure of other operating income (expense) [text block] | (30) Other income (expenses) 2017 2016 2015 Other income Sale of scrap of biological assets, raw materials, by-products and other $ 896,840 1,076,902 636,386 Bargain purchase gain of domestic business acquisition (note 4b) 87,496 - - Total other income 984,336 1,076,902 636,386 Other expenses Cost of disposal of biological assets, raw materials, by-products and other (731,110) (704,152) (507,196) Other (85,584) (112,548) (133,830) Total other expenses (816,694) (816,700) (641,026) Total other income (expenses), net $ 167,642 260,202 (4,640) |
Significant accounting polici36
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Significant accounting policies [Abstract] | |
Description of accounting policy for business combinations [text block] | 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, subsidiaries’ financial statements 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. 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 is 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. |
Description of accounting policy for foreign currency translation [text block] | 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, 2017, 2016 and 2015 the Company did not enter into such transactions. |
Description of accounting policy for financial instruments [text block] | c) Financial instruments i. Non-derivative financial assets Non-derivative financial assets of the Company include cash and cash equivalents, investment in securities (financial assets designated at fair value through profit or loss and financial assets held to maturity), trade receivable and other 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 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. Financial assets valued at fair value through profit and loss A financial asset is presented at fair value through profit and loss if it is classified as held-for-trading or is designated as such on initial recognition. Financial assets are designated at fair value through profit and loss if the Company manages such investments and makes purchase and sale decisions based on their fair value in accordance with the Company’s investment or risk management policy. Costs attributable to the acquisition or issue of such financial assets are recognized in profit and loss as incurred. Financial assets at fair value through profit and loss are measured at fair value, and changes therein are recognized in profit and loss. Held-to-maturity financial assets Held-to-maturity financial assets are debt instruments that the Company has the intention and ability to hold to maturity. Held-to-maturity financial assets are originally recognized at fair value plus any directly attributable transaction costs. Subsequently to initial recognition, held-to-maturity financial assets are measured at their amortized cost by using the effective interest method, less any impairment losses. Any sale or reclassification of a more than insignificant amount of held-to-maturity financial assets would result in the reclassification of all held-to-maturity investments as available-for-sale, and prevent the Company from classifying investment securities as held-to-maturity for the current and the following two years. The effective interest method is a method of calculating the amortized cost of a debt instrument and of allocating interest income or cost over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter period, to the net carrying amount on initial recognition. 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. ii. Non-derivative financial instrument 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 during their contractual term. iii. Derivative financial instruments 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. 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. The Company enters into derivative financial instruments, which are designated as fair value hedges for its exposure to commodity price risks (commodities) On initial designation of the derivative as a hedging instrument, the Company formally documents the relationship between hedging instruments and hedged items, including the risk management objectives and strategy in undertaking the hedge transaction, and the methods that will be used to assess the prospective and retrospective effectiveness of the hedging. The Company makes an assessment, both at the inception of the hedge relationship as well as on an ongoing basis, of whether the hedging instruments are expected to be highly effective in offsetting the changes in the fair value of the respective hedged items during the period for which the hedge is designated and whether the actual results of each hedge are within a range of 80 125 If the hedging instrument no longer meets the criteria for the hedging accounting treatment, expires or is sold, terminated or exercised, or the designation is revoked, then hedging accounting treatment is discontinued prospectively. Any gain or loss recognized in other comprehensive income and accumulated in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in profit or loss. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss. iv. 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. |
Description of accounting policy for property, plant and equipment [text block] | 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 on 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. Average Buildings 46 Machinery and Equipment 19 Vehicles 11 Computers 8 Furniture 11 Residual Value Buildings 9 % Machinery and Equipment 8 % Vehicles 5 % Computers 0 % Furniture 2 % |
Description of accounting policy for goodwill [text block] | 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. |
Description of accounting policy for intangible assets other than goodwill [text block] | f) Intangible assets They mainly integrated by brands 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 minus 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 indications, 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. |
Description of accounting policy for biological assets [text block] | 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. Expected average Poultry in its different production stages 40-47 Breeder pigs 156 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. |
Description of accounting policy for leases [text block] | h) Leased assets Operating leases entered into by the Company are not recognized in the Company’s statement of financial position. Operating lease rentals paid by the Company are 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 are 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. As of December 31, 2017, 2016 and 2015, the Company has not entered into any significant finance lease agreements. |
Description of accounting policy for measuring inventories [text block] | 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. |
Description of accounting policy for impairment of assets [text block] | 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 and held-to-maturity investment securities) both individually and collectively. All individually significant receivables and held-to-maturity investment securities 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 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 suggested 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 or held-to-maturity investment securities. Interest on impaired assets continues being recognized. When a subsequent event that occurs after impairment has been recognized, it results in the reduction of the loss amount; this reduction is reversed through profit and loss. 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. |
Description of accounting policy for available-for-sale financial assets [text block] | 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. |
Description of accounting policy for other assets [text block] | 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 net cash surrender value which approximates its fair value (see note 17). |
Description of accounting policy for employee benefits [text block] | 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. |
Description of accounting policy for provisions [text block] | 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. |
Description of accounting policy for investments in joint ventures [text block] | 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. |
Description of accounting policy for recognition of revenue [text block] | p) Revenues Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognized when persuasive evidence exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration relating to the transaction is probable, the associated costs and possible return of goods can be estimated reliably, there is no continuing management involvement with the goods, and the amount of revenue can be measured reliably. 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. |
Description of accounting policy for finance income and costs [text block] | 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. |
Description of accounting policy for income tax [text block] | r) Income taxes Income tax expenses comprise 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. |
Description of accounting policy for earnings per share [text block] | 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, 2017, 2016 and 2015, the Company has no potentially dilutive shares, for which reason basic and diluted EPS are the same. |
Description of accounting policy for segment reporting [text block] | 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). |
Description of accounting policy for expenses [text block] | 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. |
Description of accounting policy for cash flows [text block] | 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 polici37
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Significant accounting policies [Abstract] | |
Disclosure of detailed information about estimated rates of residual for items of property, plant and equipment [text block] | Below are the estimated useful lives for 2017, 2016 and 2015: Average Buildings 46 Machinery and Equipment 19 Vehicles 11 Computers 8 Furniture 11 |
Disclosure of detailed information about estimated rates of residual for items of property, plant and equipment [text block] | The Company has estimated the following residual values as of December 31, 2017, 2016 and 2015: Residual Value Buildings 9 % Machinery and Equipment 8 % Vehicles 5 % Computers 0 % Furniture 2 % |
Disclosure of detailed information about average useful life of property, plant and equipment [text block] | 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 Poultry in its different production stages 40-47 Breeder pigs 156 |
Business and asset acquisitio38
Business and asset acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about business combinations [text block] | Acquired assets and identifiable assumed liabilities Acquisition value Current and non-current biological assets $ 235,486 Inventories 300 Property, plant and equipment 11,581 Acquired assets, net 247,367 Cash consideration paid 371,300 Goodwill $ (123,933) |
Albertville Quality Foods Inc [Member] | |
Disclosure of detailed information about business combinations [text block] | Identifiable assets acquired and liabilities assumed The following is a summary of the recognized amounts of assets acquired and liabilities assumed at the acquisition date, compared to the consideration paid: Acquisition value Current assets, other than inventories $ 202,873 Inventories 304,594 Property, plant and equipment 547,987 Other current assets 10,189 Intangible assets 969,942 Total assets 2,035,585 Current liabilities (155,798) Deferred income tax (472,088) Acquired net identifiable assets, net 1,407,699 Consideration paid 2,449,862 Goodwill at acquisition date $ 1,042,163 |
Proveedora La Perla S A de C V [Member] | |
Disclosure of detailed information about business combinations [text block] | 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 $ 13,835 Inventories 5,846 Property, plant and equipment 584,884 Total assets 604,565 Current liabilities (392,646) Deferred income tax (79,423) Acquired net identifiable assets 132,496 Consideration paid 45,000 Bargain purchase gain (note 30) $ 87,496 |
Subsidiaries of the Company (Ta
Subsidiaries of the Company (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Subsidiaries Of Company [Abstract] | |
Disclosure of detailed information about shareholding percentage in subsidiaries [text block] | A list of subsidiaries and the Company´s shareholding percentage in such subsidiaries as of December 31, 2017, 2016 and 2015 are presented below: Name Shareholding percentage in subsidiaries December 31, Country 2017 2016 2015 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 - Proveedora La Perla S.A. de C.V. México 100.00 - - |
Operating segments (Tables)
Operating segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of operating segments [abstract] | |
Disclosure of detailed information about reportable segments [text block] | 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, 2017 Poultry Other Total Net revenues $ 52,479,393 5,570,632 58,050,025 Cost of sales 42,767,202 4,735,757 47,502,959 Gross profit 9,712,191 834,875 10,547,066 Finance income 943,477 144,164 1,087,641 Finance costs 295,011 45,080 340,091 Income before taxes 5,522,187 516,692 6,038,879 Income taxes 958,201 126,243 1,084,444 Net income attributable to controlling interest 4,558,370 389,872 4,948,242 Property, plant and equipment, net 15,464,404 1,855,637 17,320,041 Goodwill 1,543,078 88,016 1,631,094 Intangible assets 1,040,042 - 1,040,042 Total assets 45,165,551 5,391,838 50,557,389 Total liabilities 13,525,194 1,354,267 14,879,461 Purchases of property, plant and equipment 3,154,390 358,988 3,513,378 Depreciation and amortization 982,019 93,769 1,075,788 Poultry Other Total revenue $ 52,484,264 5,616,254 Intersegments (4,871) (45,622) Net revenues $ 52,479,393 5,570,632 Year ended December 31, 2016 Poultry Other Total Net revenues $ 46,852,482 5,167,821 52,020,303 Cost of sales 38,285,367 4,349,704 42,635,071 Gross profit 8,567,116 818,116 9,385,232 Finance income 840,640 128,534 969,174 Finance costs 149,319 22,835 172,154 Income before taxes 5,077,042 517,554 5,594,596 Income taxes 1,494,918 148,515 1,643,433 Net income attributable to controlling interest 3,578,049 368,585 3,946,634 Property, plant and equipment, net 13,478,294 1,602,811 15,081,105 Goodwill 396,861 88,016 484,877 Total assets 40,035,990 5,054,476 45,090,466 Total liabilities 11,909,391 1,464,901 13,374,292 Purchases of property, plant and equipment 2,226,493 233,251 2,459,744 Depreciation and amortization 840,624 85,124 925,748 Poultry Other Total revenue $ 46,856,888 5,214,481 Intersegments (4,406) (46,660) Net revenues $ 46,852,482 5,167,821 Year ended December 31, 2015 Poultry Other Total Net revenues $ 41,789,451 4,439,598 46,229,049 Cost of sales 32,906,801 3,940,707 36,847,508 Gross profit 8,882,649 498,892 9,381,541 Income before taxes 5,196,883 303,197 5,500,080 Income taxes 1,590,892 89,668 1,680,560 Net income attributable to controlling interest 3,599,728 213,112 3,812,840 Property, plant and equipment, net 11,805,132 1,382,999 13,188,131 Goodwill 366,280 88,015 454,295 Total assets 36,085,954 4,360,624 40,446,578 Total liabilities 11,325,636 1,341,564 12,667,200 Purchases of property, plant and equipment 1,646,968 177,541 1,824,509 Depreciation and amortization 694,502 74,768 769,270 Poultry Other Total revenue $ 41,796,064 4,484,348 Intersegments (6,613) (44,750) Net revenues $ 41,789,451 4,439,598 |
Disclosure of detailed information about revenue classified based on geographical location [text block] | 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, 2017 Domestic Foreign Operations Total Net revenues $ 36,013,268 16,533,664 (67,539) 52,479,393 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies Non-current biological assets 899,691 717,812 - 1,617,503 Property, plant and equipment, net 12,143,632 3,320,772 - 15,464,404 Goodwill 212,833 1,330,245 - 1,543,078 Intangible assets - 1,040,042 - 1,040,042 Year ended December 31, 2016 Domestic Foreign Operations Total Net revenues $ 33,414,262 13,496,189 (57,969) 46,852,482 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies Non-current biological assets 902,662 765,881 - 1,668,543 Property, plant and equipment, net 10,481,074 2,997,221 - 13,478,294 Goodwill 212,833 184,028 - 396,861 Year ended December 31, 2015 Domestic Foreign Operations Total Net revenues $ 30,686,151 11,159,936 (56,637) 41,789,451 Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies Non-current biological assets 795,157 638,974 - 1,434,131 Property, plant and equipment, net 9,682,701 2,122,431 - 11,805,132 Goodwill 212,833 153,447 - 366,280 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Cash And Cash Equivalents [Abstract] | |
Disclosure of detailed information about cash and cash equivalents [text block] | The consolidated balances of cash and cash equivalents as of December 31, 2017, 2016 and 2015 are as follows: December 31, 2017 2016 2015 Cash and banks $ 15,464,312 9,890,007 4,774,420 Investments with maturities less than three months 623,898 4,771,961 9,246,071 Cash and cash equivalents 16,088,210 14,661,968 14,020,491 Restricted cash 24,058 19,236 25,771 Total cash and cash equivalents and restricted cash $ 16,112,268 14,681,204 14,046,262 |
Financial instruments and ris42
Financial instruments and risk management (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial instruments and risk management [Abstract] | |
Disclosure of detailed information about financial instruments [text block] | The Company’s financial assets and liabilities are shown below: December 31, 2017 2016 2015 Financial assets Cash and cash equivalents $ 16,112,268 14,681,204 14,046,262 Investment in securities at fair value through profit or loss 1,127,841 970,292 1, 242,614 Investments held to maturity 64,629 65,509 52,572 Accounts receivable 2,599,208 2,524,942 1,862,250 Due from related parties 326 148,855 194,522 Long-term receivables 162,337 161,690 128,169 Derivative financial instruments - 8,308 1,244 Financial liabilities Financial debt $ (5,249,024) (4,047,937) (4,127,010) Trade payables, sundry creditors and expenses payable (4,163,443) (4,095,089) (4,088,989) Due to related parties (55,252) (189,966) (165,628) Derivative financial instruments (6,821) - - |
Disclosure of credit risk exposure [text block] | The carrying amount of financial assets represents the maximum credit exposure, which as of the reporting date is as follows: December 31, 2017 2016 2015 Cash and cash equivalents $ 16,112,268 14,681,204 14,046,262 Investments in securities at fair value through profit or loss 1,127,841 970,292 1,242,614 Investments held to maturity 64,629 65,509 52,572 Accounts receivable net of guarantees received 2,143,390 2,264,941 1,621,929 Derivative financial instruments - 8,308 1,244 $ 19,448,128 17,990,254 16,964,621 |
Disclosure of maturity analysis for derivative financial liabilities [text block] | December 31, 2017 Less than 1 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,163,443 - - Due to related parties 55,252 - - Derivative financial instruments 6,821 Variable-rate maturities In U.S. dollars 2,752,400 - In pesos 942,651 53,973 1,500,000 Interest 162,785 244,484 203,840 Total financial liabilities $ 8,083,352 298,457 1,703,840 December 31, 2016 Less than 1 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,095,089 - - Due to related parties 189,966 - - Variable-rate maturities In U.S. dollars 1,444,800 - - In pesos 1,652,725 950,412 - Interest 142,100 136,859 - Total financial liabilities $ 7,524,680 1,087,271 - December 31, 2015 Less than 1 1 to 3 years 3 to 5 years Trade payables, sundry creditors and expenses payable $ 4,088,989 - - Variable-rate maturities In U.S. dollars 1,462,850 - - In pesos 169,033 2,495,127 - Interest 113,840 98,840 - Total financial liabilities $ 5,834,712 2,593,967 - |
Disclosure of additional information about understanding financial position and liquidity of entity [text block] | Below is the foreign currency position that the Company has as of December 31, 2017, 2016 and 2015. December 31, 2017 2016 2015 Dollars Mexican Dollars Mexican Dollars Mexican Assets Cash and cash equivalents $ 325,493 6,399,186 126,395 2,608,800 66,929 1,151,844 Investment in securities at fair value through profit or loss 29,212 574,312 27,863 575,085 28,549 491,325 Accounts receivable 1,915 37,640 2,488 51,350 245 4,210 Total assets 356,619 7,011,138 156,746 3,235,235 95,722 1,647,379 Liabilities Trade accounts payable (154,858) (3,044,515) (103,854) (2,143,547) (141,819) (2,440,708) Financial debt (140,000) (2,752,400) (70,000) (1,444,800) (85,000) (1,462,850) Total Liabilities (294,858) (5,796,915) (173,854) (3,588,347) (226,819) (3,903,558) Net asset position 61,761 1,214,223 - - - - Net liability position $ - - (17,108) (353,112) (131,097) (2,256,179) |
Disclosure of effect of changes in foreign exchange rates [text block] | The following is a detail of exchange rates effective during the fiscal year: Spot exchange rate at Average exchange rate December 31, 2017 2016 2015 2017 2016 2015 Dollars $ 18.91 18.68 15.87 19.66 20.64 17.21 |
Disclosure of financial liabilities [text block] | The table below summarizes the presents the fair value of the financial instruments that are recognized at amortized cost, together with the carrying amount included in the consolidated statement of financial position: Liabilities Carrying Fair Carrying Fair Carrying Fair 2017 2016 2015 Financial debt $ 5,249,024 5,255,932 4,047,937 4,062,999 4,127,010 4,141,473 |
Disclosure of fair value of financial instruments [text block] | The following table summarizes financial instruments carried at fair value: Level 1 Level 2 Level 3 Total As of December 31, 2017 Investment in securities at fair value through profit or loss $ 969,309 158,532 - 1,127,841 Derivative financial instruments - (6,821) - (6,821) $ 969,309 151,711 - 1,121,020 Level 1 Level 2 Level 3 Total As of December 31, 2016 Investment in securities at fair value through profit or loss $ 970,292 - - 970,292 Derivative financial instruments - 8,308 - 8,308 $ 970,292 8,308 - 978,600 Level 1 Level 2 Level 3 Total As of December 31, 2015 Investment in securities at fair value through profit or loss $ 1,242,614 - - 1,242,614 Interest rate derivative financial instruments - 195 - 195 Derivative financial instruments - 1,244 - 1,244 $ 1,242,614 1,439 - 1,244,053 |
Disclosure of fair value measurement of liabilities [text block] | Information regarding the hierarchy of fair value measurements related to financial liabilities that are not carried at fair value, but for which disclosures are required, is summarized below: Level 1 Level 2 Level 3 Total As of December 31, 2017 Financial debt - bank institutions $ - (3,749,024) - (3,749,024) Financial debt debt securities (1,506,908) - - (1,506,908) $ (1,506,908) (3,749,024) - (5,255,932) Level 1 Level 2 Level 3 Total As of December 31, 2016 Financial debt - bank institutions $ - (2,550,469) - (2,550,469) Financial debt debt securities (1,512,530) - - (1,512,530) $ (1,512,530) (2,550,469) - (4,062,999) Level 1 Level 2 Level 3 Total As of December 31, 2015 Financial debt - bank institutions $ - (2,626,327) (2,626,327) Financial debt debt securities (1,515,146) - - (1,515,146) $ (1,515,146) (2,626,327) - (4,141,473) |
Sensitivity analysis for types of market risk [text block] | The following table shows the Company’s sensitivity to an increase and decrease of 15% for 2017, 2016 and 2015 in the “bushell” price of corn and short ton price of soybeans. Effect of Increase Effect of Decrease 2017 2016 2015 2017 2016 2015 Loss (profit) for the year $ (16,094) (9,085) (44,589) $ 21,229 8,785 56,753 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 2017, 2016 and 2015, in the variable rates to which the Company is exposed. Effect of Increase Effect of Decrease 2017 2016 2015 2017 2016 2015 Loss (profit) for the year $ 43,485 15,385 17,375 $ (43,485) (15,385) (17,375) iii. Exchange risk As of December 31, 2017, the Company's net monetary liability position in foreign currency was $1,214,223. The following table shows the Company’s sensitivity of an increase and decrease of 10% for 2017, 2016 and 2015, in exchange rate, which would have an effect in the result from foreign currency position. Effect of Increase Effect of Decrease 2017 2016 2015 2017 2016 2015 Loss (profit) for the year $ (121,422) 35,311 225,618 $ 121,422 (35,311) (225,618) |
Accounts receivable, net (Table
Accounts receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Accounts Receivable, Net [Abstract] | |
Disclosure of detailed information about trade and other receivables [text block] | As of December 31, 2017, 2016 and 2015, accounts receivable are as follows: December 31, 2017 2016 2015 Trade receivables $ 2,673,705 2,482,077 1,867,104 Allowance for doubtful accounts (96,900) (97,400) (81,641) Other receivables 22,403 140,265 76,787 Government grant - - 40 Income tax receivable 57,186 115,428 143,517 Recoverable value-added tax and other recoverable taxes 970,484 988,774 527,620 $ 3,626,878 3,629,144 2,533,427 |
Analysis of age of financial assets that are past due but not impaired [text block] | 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, 2017 2016 2015 Past due 0 to 60 days 200,413 164,458 129,315 Past due by more than 60 days 6,190 3,395 3,443 $ 206,603 167,853 132,758 |
Disclosure of allowance for credit losses [text block] | Reconciliation of movements in allowance for doubtful accounts 2017 2016 2015 Balance as of January 1 $ (97,400) (81,641) (76,793) Increase in allowance (14,800) (18,405) (17,179) Amounts written off 15,287 2,818 12,454 Currency translation effect 13 (172) (123) Balance as of December 31, $ (96,900) (97,400) (81,641) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Inventories Explanatory [Abstract] | |
Disclosure of detailed information about inventories [text block] | As of December 31, 2017, 2016 and 2015, inventories are as follows: December 31, 2017 2016 2015 Raw materials and by-products $ 1,861,092 1,515,824 1,155,841 Medicine, materials and spare parts 820,417 808,492 772,226 Balanced feed 296,538 275,845 241,473 Processed chicken 1,561,912 1,154,207 1,112,068 Commercial eggs 46,185 37,242 38,683 Processed beef 58,563 36,599 38,533 Processed turkey 64,918 122,722 34,251 Other processed products 17,708 19,757 11,194 Total $ 4,727,333 3,970,688 3,404,269 |
Biological assets (Tables)
Biological assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of biological assets [Abstract] | |
Disclosure of detailed information about biological assets [text block] | For the years ended December 31, 2017, 2016 and 2015, biological assets are as follows: Current Non-current Total Balance as at January 1, 2017 $ 1,961,191 1,668,543 3,629,734 Increase due to purchases 291,361 599,273 890,634 Sales - (87,230) (87,230) Net increase due to births 277,621 2,112,110 2,389,731 Production cost 30,892,045 1,532,189 32,424,234 Depreciation - (2,058,461) (2,058,461) Transfers to inventories (31,435,017) (2,112,110) (33,547,127) Other (45,008) (36,811) (81,819) Balance as at December 31, 2017 $ 1,942,193 1,617,503 3,559,696 Current Non-current Total Balance as at January 1, 2016 $ 1,651,794 1,434,131 3,085,925 Increase due to purchases 237,525 604,527 842,052 Sales - (109,776) (109,776) Net increase due to births 240,085 2,034,670 2,274,755 Production cost 29,620,380 1,515,440 31,135,820 Depreciation - (1,903,086) (1,903,086) Transfers to inventories (29,886,985) (2,034,670) (31,921,655) Other 98,392 127,307 225,699 Balance as at December 31, 2016 $ 1,961,191 1,668,543 3,629,734 Current Non-current Total Balance as at January 1, 2015 $ 1,501,428 1,109,233 2,610,661 Increase due to purchases 337,632 603,081 940,713 Sales - 3,032 3,032 Net increase due to births 225,000 1,422,535 1,647,535 Production cost 26,283,885 1,120,359 27,404,244 Depreciation - (1,475,470) (1,475,470) Transfers to inventories (26,746,796) (1,422,535) (28,169,331) Other 50,645 73,896 124,541 Balance as at December 31, 2015 $ 1,651,794 1,434,131 3,085,925 |
Prepaid expenses and other cu46
Prepaid expenses and other current assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of prepaid expenses and other current assets [Abstract] | |
Disclosure of detailed information about current prepayments and other current assets [text block] | As of December 31, 2017, 2016 and 2015, prepaid expenses and other current assets are as follows: December 31, 2017 2016 2015 Advances to suppliers of inventories $ 234,458 929,815 1,224,454 Prepaid expenses of services 235,652 217,244 130,086 Prepaid expenses of insurance and bonds 88,533 185,678 82,238 Other current assets 80,028 171,208 151,030 Total $ 638,671 1,503,945 1,587,808 |
Assets held for sale (Tables)
Assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of assets held for sale [Abstract] | |
Disclosure of non-current assets or disposal groups classified as held for sale [text block] | As of December 31, 2017, 2016 and 2015, assets held for sale are as follows: December 31, 2017 2016 2015 Buildings $ 18,920 21,551 24,430 Land 27,765 32,338 32,779 Other 2,838 2,839 2,839 Total $ 49,523 56,728 60,048 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of detailed information about property, plant and equipment [text block] | As of December 31, 2017, 2016 and 2015, property, plant and equipment are comprised as follows: Cost Balance as at Additions Disposals Currency Balance as at Land $ 1,210,052 156,000 (8,851) (3,558) 1,353,643 Buildings and construction 10,603,293 896,020 (3,200) (55,829) 11,440,284 Machinery and equipment 12,035,769 2,158,477 (106,310) (66,055) 14,021,881 Transportation equipment 1,611,153 269,462 (105,982) (1,480) 1,773,153 Computer equipment 118,759 13,210 (3,173) (2,805) 125,991 Furniture 174,183 19,515 (23,505) (441) 169,752 Leasehold improvements 5,186 - (2,525) - 2,661 Construction in progress 1,459,682 694 (33,419) 8,190 1,435,147 Total $ 27,218,077 3,513,378 (286,965) (121,978) 30,322,512 Accumulated depreciation Balance as at Depreciation Disposals Currency Balance as Buildings and construction $ (5,131,723) (202,513) 2,074 8,848 (5,323,314) Machinery and equipment (6,064,744) (735,461) 69,960 23,421 (6,706,824) Transportation equipment (741,253) (111,073) 80,177 743 (771,406) Computer equipment (70,293) (15,069) 3,160 698 (81,504) Furniture (128,959) (11,672) 20,779 429 (119,423) Total $ (12,136,972) (1,075,788) 176,150 34,139 (13,002,471) Cost Balance as at Additions Disposals Currency Balance as at Land $ 1,160,809 40,398 (6,257) 15,102 1,210,052 Buildings and construction 10,017,180 423,357 (69,520) 232,276 10,603,293 Machinery and equipment 10,706,221 1,408,298 (355,957) 277,207 12,035,769 Transportation equipment 1,286,212 433,746 (114,222) 5,417 1,611,153 Computer equipment 85,842 29,702 (2,134) 5,349 118,759 Furniture 155,995 20,548 (5,183) 2,823 174,183 Leasehold improvements 8,742 - (3,556) - 5,186 Construction in progress 1,268,545 103,695 - 87,442 1,459,682 Total $ 24,689,546 2,459,744 (556,829) 625,616 27,218,077 Accumulated depreciation Balance as at Depreciation Disposals Currency Balance as Buildings and construction $ (4,942,844) (192,810) 38,726 (34,795) (5,131,723) Machinery and equipment (5,627,281) (630,370) 297,180 (104,273) (6,064,744) Transportation equipment (751,539) (81,783) 94,872 (2,803) (741,253) Computer equipment (60,198) (10,544) 2,918 (2,469) (70,293) Furniture (119,553) (10,241) 2,038 (1,203) (128,959) Total $ (11,501,415) (925,748) 435,734 (145,543) (12,136,972) Balance as at Additions Disposals Currency Balance as at Land $ 1,094,182 57,901 (661) 9,387 1,160,809 Buildings and construction 9,669,990 204,254 (17,191) 160,127 10,017,180 Machinery and equipment 9,816,722 991,378 (262,222) 160,343 10,706,221 Transportation equipment 1,171,030 247,232 (135,257) 3,207 1,286,212 Computer equipment 67,780 22,081 (6,163) 2,144 85,842 Furniture 153,015 6,372 (5,351) 1,959 155,995 Leasehold improvements 21,442 - (12,700) - 8,742 Construction in progress 991,866 295,291 (18,612) - 1,268,545 Total $ 22,986,027 1,824,509 (458,157) 337,167 24,689,546 Accumulated depreciation Balance as at Depreciation Disposals Currency Balance as Buildings and construction $ (4,754,662) (179,402) 9,199 (17,979) (4,942,844) Machinery and equipment (5,210,886) (512,786) 150,685 (54,294) (5,627,281) Transportation equipment (795,625) (59,655) 107,333 (3,592) (751,539) Computer equipment (56,462) (7,946) 6,411 (2,201) (60,198) Furniture (113,638) (9,481) 4,210 (644) (119,553) Total $ (10,931,273) (769,270) 277,838 (78,710) (11,501,415) December 31, Carrying amounts, net 2017 2016 2015 Land $ 1,353,643 1,210,052 1,160,809 Buildings and construction 6,116,970 5,471,570 5,074,336 Machinery and equipment 7,315,057 5,971,025 5,078,940 Transportation equipment 1,001,747 869,900 534,673 Computer equipment 44,487 48,466 25,644 Furniture 50,329 45,224 36,442 Leasehold improvements 2,661 5,186 8,742 Construction in progress 1,435,147 1,459,682 1,268,545 Total $ 17,320,041 15,081,105 13,188,131 Additions of property, plant and equipment in 2017 include assets acquired through business combinations of $ 1,132,871 Land $ 133,347 Buildings and construction 500,608 Machinery and equipment 491,101 Transportation equipment 2,137 Furniture 5,679 Total $ 1,132,871 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of goodwill [Abstract] | |
Disclosure of reconciliation of changes in goodwill [text block] | 2017 2016 2015 Balances at beginning of the year $ 484,877 454,295 349,764 Business combinations (Note 4) 1,042,163 - 123,933 Goodwill impairment loss - - (38,619) Foreign currency effects 104,054 30,582 19,217 Balances at end of year $ 1,631,094 484,877 454,295 |
Disclosure of information for cash-generating units [text block] | The assumptions and balances of each cash-generating unit are as follows: 2017 Cash-generating unit Final Projection Annual Annual Bachoco - Istmo and Peninsula regions $ 212,833 5 12.52 % 3.00 % Campi 88,015 5 12.52 % 3.00 % Ok Farms - Morris Hatchery, Inc. Arkansas 65,200 5 6.14 % 0.00 % Ok Farms - Morris Hatchery Inc. Georgia 110,091 5 6.14 % 0.00 % Ok Foods- Albertville Quality Foods, Inc. 1,154,955 5 6.14 % 0.00 % $ 1,631,094 2016 Cash-generating unit Final Projection Annual Annual Bachoco - Istmo and Peninsula regions $ 212,833 5 12.91 % 2.70 % Campi 88,015 5 12.91 % 2.10 % Ok Farms - Morris Hatchery, Inc. Arkansas 68,449 5 8.62 % 0.00 % Ok Farms- Morris Hatchery Inc. Georgia 115,580 5 8.62 % 0.00 % $ 484,877 2015 Cash-generating unit Final Projection Annual Annual Bachoco - Istmo and Peninsula regions $ 212,833 5 9.67 % 2.70 % Campi 88,015 5 9.67 % 2.10 % Ok Farms - Morris Hatchery, Inc. Arkansas 57,075 5 9.32 % 0.00 % Ok Farms- Morris Hatchery Inc. Georgia 96,372 5 9.32 % 0.00 % $ 454,295 |
Intangible assets (Tables)
Intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Intangible assets and goodwill [abstract] | |
Disclosure of detailed information about intangible assets [text block] | Intangible assets consist of the following: 2017 2016 2015 Amortizable intangible assets Customer relationships $ 1,028,747 - - Accumulated amortization (34,876) - - Total net amortizable intangible assets 993,871 - - Trade names not subject to amortization 46,171 Total intangible assets $ 1,040,042 - - |
Other non-current assets (Table
Other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of other non-current assets [Abstract] | |
Disclosure of detailed information about other non current assets [text block] | Other non-current assets consist of the following: December 31, 2017 2016 2015 Advances for purchase of property, plant and equipment $ 331,691 552,417 277,277 Investments in life insurance (note 3 (l)) 64,629 65,509 52,572 Security deposits 16,796 15,132 13,574 Other long-term receivable 162,337 161,690 128,169 Intangible assets in process 11,506 12,200 73,125 Other 56,047 58,506 49,189 Total non-current assets $ 643,006 865,454 593,906 |
Financial debt (Tables)
Financial debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of financial debt [Abstract] | |
Disclosure of detailed information about short term borrowings [text block] | Short-term financial debt is as follows: December 31, 2017 2016 2015 Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.44 percentage points. $ 1,376,200 - - Loan in the amount of 70,000 thousand dollars, maturing in July 2017, at LIBOR (3) rate plus 0.425 percentage points. 1,376,200 - - Denominated in pesos, maturing in January 2018, at TIIE (1) FIRA (2) rate plus 0.60 percentage points 100,000 - - Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.50 percentage points. - 1,444,800 - Loan of 85,000 thousand dollars, maturing in June 2016, at LIBOR (3) rate plus 0.48 percentage points - - 1,462,850 Denominated in pesos, maturing in January 2016, at TIIE (1) FIRA (2) rate plus 0.85 percentage points - - 160,000 Total short-term debt $ 2,852,400 1,444,800 1,622,850 |
Disclosure of detailed information about Long term borrowings [text block] | b) Long-term debt consists of the following: December 31, 2017 2016 2015 Denominated in pesos, maturing in September 2017, at TIIE (1) rates plus 0.63 percentage points. $ 98,000 100,000 Denominated in pesos, maturing in 2017 and 2018, at TIIE (1) FIRA (2) rates less 0.25 percentage points. 553,651 603,739 603,871 Denominated in pesos, maturing in 2018, at TIIE (1) FIRA (2) rates less 0.60 percentage points. 289,000 293,400 297,800 Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.25 percentage points. 53,973 53,978 - Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.50 percentage points. 54,000 - Denominated in pesos, maturing in 2015 and 2016, at TIIE (1) plus 1.00 percentage points. - 2,489 Debt securities (subsection (d)) - 1,500,000 1,500,000 Debt securities (subsection (d)) 1,500,000 - - Total 2,396,624 2,603,137 2,504,160 Less current maturities (842,651) (1,652,725) (9,033) Long-term debt, excluding current maturities $ 1,553,973 950,412 2,495,127 |
Disclosure of detailed information about maturities of long term borrowings [text block] | c) Maturities of long-term debt, excluding current maturities, as of December 31, 2017, are as follows: Year Amount 2019 53,973 2022 1,500,000 1,553,973 |
Disclosure of reconciliation of liabilities arising from financing activities [text block] | e) Reconciliation of liabilities arising from financing activities Balance as of January 1, 2017 $ 4,047,937 Changes that represent cash flows Proceeds from borrowings 5,378,915 Principal payment on loans (4,246,100) Changes that do not represent cash flows Others 68,272 Balance as of December 31, 2017 $ 5,249,024 |
Trade accounts and other acco53
Trade accounts and other accounts payable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of trade accounts and other accounts payables [Abstract] | |
Disclosure of detailed information about trade and other accounts payables [text block] | December 31, 2017 2016 2015 Trade payables $ 3,684,220 3,646,410 3,800,407 Sundry creditors and expenses payable 479,223 448,679 288,582 Provisions 103,474 105,434 202,303 Statutory employee profit sharing 42,940 42,134 31,730 Retained payroll taxes and other local taxes 241,739 214,558 197,806 Direct employee benefits 171,784 76,721 72,898 Interest payable 16,904 11,160 3,306 Others 82 81 71 $ 4,740,366 4,545,177 4,597,103 |
Transactions and balances wit54
Transactions and balances with related parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of transactions and balances with related parties [Abstract] | |
Disclosure of information about key management personnel [text block] | 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, 2017, 2016 and 2015: December 31, 2017 2016 2015 Compensation $ 56,201 53,531 42,295 |
Disclosure of detailed information about transactions and balances with related parties [text block] | 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 Transaction value Balance as of December 31, December 31, 2017 2016 2015 2017 2016 2015 Sales of products to: Vimifos, S.A. de C.V. $ 47,344 41,715 32,827 $ 326 4,261 5,447 Frescopack, S.A. de C.V. 10 66 - 32 - Autos y Accesorios, S.A. de C.V. - - 419 - - - Taxis Aéreos del Noroeste, S.A. de C.V. 1,013 1,927 135 - 144,562 189,075 $ 48,367 43,708 33,381 $ 326 148,855 194,522 ii. Expenses and balances payable to related parties Transaction value Balance as of December 31, December 31, 2017 2016 2015 2017 2016 2015 Purchases of food, raw materials and packing supplies Vimifos, S.A. de C.V. $ 392,226 554,282 477,920 $ 12,830 126,396 91,982 Frescopack, S.A. de C.V. 179,357 137,752 181,802 29,537 35,931 37,827 Pulmex 2000, S.A. de C.V. 26,700 41,122 42,263 8,138 7,528 16,181 Qualyplast, S.A. de C.V. 95 193 237 - 64 158 Purchases of vehicles, tires and spare parts Maquinaria Agrícola, S.A. de C.V. $ 793 34,446 41,947 64 1,898 4,074 Llantas y Accesorios, S.A. de C.V. 35,225 29,457 29,269 4,207 3,449 2,732 Autos y Accesorios, S.A. de C.V. 24,645 40,575 29,510 57 1,985 3,364 Autos y Tractores de Culiacán, S.A. de C.V. 14,037 39,504 54,853 79 5,298 3,100 Camiones y Tractocamiones de Sonora, S.A. de C.V. 85,448 153,802 69,779 172 6,137 5,815 Agencia MX-5, S.A de C.V. 15 25 1 4 2 - Alfonso R. Bours, S.A. de C.V. 428 394 526 95 94 93 Cajeme Motors S.A. de C.V. 29 7,974 6,632 1 710 2 Airplane leasing expenses Taxis Aéreos del Noroeste, S.A. de C.V. $ 7,854 7,739 7,874 68 474 300 $ 55,252 189,966 165,628 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Income Tax [Abstract] | |
Disclosure of detailed information about income tax benefit expense included in profit and loss [text block] | For the years ended December 31, 2017, 2016 and 2015, the income tax (benefit) expense included in profit and loss is as follows: December 31 2017 2016 2015 Operation in Mexico: Current ISR 1,512,721 1,215,171 1,291,536 Deferred ISR (157,646) 264,086 146,595 1,355,075 1,479,257 1,438,131 Foreign operation: Current ISR 198,813 45,358 196,954 Deferred ISR (469,444) 118,818 45,475 Total ISR expense $ 1,084,444 1,643,433 1,680,560 |
Disclosure of detailed information about income tax expense attributable to income before income taxes [text block] | The income tax expense attributable to income before income taxes differed from the amount computed by applying the ISR rate of 30% in 2017, 2016 and 2015 due to the items listed below: December 31, 2017 2016 2015 ISR Percentage ISR Percentage ISR Percentage Expected expense $ 1,811,667 30 % $ 1,678,379 30 % $ 1,650,025 30 % Increase (decrease) resulting from: Net effects of inflation (329,516) (5) % (144,611) (2) % (87,322) (2) % (Non-taxable income) Non-deductible expenses 88,330 1 % 14,550 0 % (4,882) (0) % Effect of rate difference of foreign subsidiary 702 0 % 21,979 0 % 57,103 1 % Effect from non-deductible employee benefits 83,953 1 % 71,868 1 % 74,173 1 % Effect of change of income tax rate in the United States of America (443,104) (7) % - - - - Cancellation of loss by acquisition (129,036) (2) % Other 1,448 0 % 1,268 0 % (8,537) 0 % Income tax expense $ 1,084,444 18 % $ 1,643,433 29 % $ 1,680,560 30 % |
Disclosure of temporary difference, unused tax losses and unused tax credits [text block] | The tax effects of temporary differences, tax losses and tax credits that give rise to significant portions of deferred tax assets and liabilities as at December 31, 2017, 2016 and 2015 are detailed below: December 31, 2017 2016 2015 Deferred tax assets Accounts payable $ 16,404 831 764 Employee benefits 45,519 42,221 32,572 PTU payable 12,917 12,700 9,516 Accounts receivable - - 404 Tax loss carryforwards - 2,760 10,236 Property, plant and equipment - - 490 Other provisions 7,025 1,754 239 Total deferred tax assets 81,865 60,266 54,221 Deferred tax liabilities Property, plant and equipment 59 82 - Prepaid expenses 1,136 52 94 Total deferred tax liabilities 1,195 134 94 Net deferred tax assets 80,670 60,132 54,127 December 31, 2017 2016 2015 Deferred tax assets Accounts payable $ 1,170,771 964,676 1,093,145 Tax loss carryforwards 22,013 676 1,081 Goodwill 7,562 19,846 22,326 Other provisions 54,020 24,049 6,606 Derivative financial instruments - - 859 Total deferred tax assets 1,254,366 1,009,247 1,124,017 Deferred tax liabilities Inventories 1,601,498 1,612,890 1,400,793 Accounts receivable 421,191 438,146 382,585 Property, plant and equipment 2,428,358 2,566,002 2,356,509 Prepaid expenses 392,800 302,958 353,166 Derivative financial instruments 253,898 1,826 - Total deferred tax liabilities 5,097,745 4,921,822 4,493,053 Net deferred tax liability $ 3,843,379 3,912,575 3,369,036 |
Disclosure of detailed information about deferred tax assets not been recognized [text block] | Deferred tax assets that have not been recognized in the Company’s consolidated financial statements are as follows: December 31, 2017 2016 2015 Recoverable tax on assets - - 1,774 Total $ - - 1,774 |
Disclosure of detailed information about reconciliation of changes in deferred tax liability asset [text block] | January 1, Recognized Acquired or/ December Accounts payable $ (965,507) (223,640) 1,972 (1,187,175) Employee benefits (42,221) 1,915 (5,213) (45,519) PTU payable (12,700) (217) - (12,917) Tax loss carryforwards (3,436) (18,577) - (22,013) Other provisions (25,803) (35,577) 335 (61,045) Goodwill (19,846) 10,895 1,389 (7,562) Intangible assets - - 253,898 253,898 Inventories 1,612,890 (82,523) 71,131 1,601,498 Accounts receivable 438,146 (16,955) - 421,191 Property, plant and equipment 2,566,084 (351,511) 213,844 2,428,417 Prepaid expenses 303,010 90,926 - 393,936 Derivative financial instruments 1,826 (1,826) - - Net deferred tax liability $ 3,852,443 (627,090) 537,356 3,762,709 January 1, Recognized Acquired or/ December Accounts payable $ (1,093,909) 134,658 (6,256) (965,507) Employee benefits (32,572) (14,115) 4,466 (42,221) PTU payable (9,516) (3,184) - (12,700) Tax loss carryforwards (11,317) 7,881 - (3,436) Other provisions (6,846) (18,200) (757) (25,803) Goodwill (22,326) 6,272 (3,792) (19,846) Inventories 1,400,793 167,441 44,656 1,612,890 Accounts receivable 382,182 55,964 - 438,146 Property, plant and equipment 2,356,019 93,752 116,313 2,566,084 Prepaid expenses 353,260 (50,250) - 303,010 Derivative financial instruments (859) 2,685 - 1,826 Net deferred tax liability $ 3,314,909 382,904 154,630 3,852,443 January 1, Recognized Acquired or/ December Accounts payable $ (1,125,260) 35,489 (4,138) (1,093,909) Employee benefits (21,515) (3,274) (7,783) (32,572) PTU payable (6,800) (2,716) - (9,516) Tax loss carryforwards (25,455) 14,389 (251) (11,317) Other provisions (16,101) 9,379 (124) (6,846) Goodwill - (20,588) (1,738) (22,326) Inventories 1,188,259 187,852 24,682 1,400,793 Accounts receivable 410,870 (28,688) - 382,182 Property, plant and equipment 2,365,620 (88,973) 79,372 2,356,019 Prepaid expenses 257,329 95,931 - 353,260 Derivative financial instruments 5,872 (6,731) - (859) Net deferred tax liability $ 3,032,819 192,070 90,020 3,314,909 |
Disclosure of detailed information about tax loss carryforwards and its expiration period [text block] | As at December 31, 2017, tax loss carryforwards expire as shown below. Amounts are indexed for inflation as permitted by Mexican income tax law: Amount as of December 31, 2017 Year Tax loss Year of expiration / 2017 $ 73,538 2027 |
Employee benefits (Tables)
Employee benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Employee benefits [Abstract] | |
Disclosure of defined benefit plans [text block] | The projected net liability presented on the consolidated statements of financial position is as follows: December 31, 2017 2016 2015 Present value of unfunded obligations $ 252,965 195,019 160,218 Present value of funded obligations 259,245 267,535 286,881 Total present value of benefit obligations (PBO) 512,210 462,554 447,099 Plan assets at fair value (259,245) (267,535) (286,881) Projected liability, net $ 252,965 195,019 160,218 |
Disclosure of actual rate of return and composition rate of plan's assets [text block] | Composition and return of plan assets Actual return of the plan Composition of the plan 2017 2016 2015 2017 2016 2015 Fixed income securities 7.18 % 7.16 % 1.25 % 61 % 64 % 60 % Variable income securities 12.78 % 10.07 % 4.87 % 39 % 36 % 40 % Total 100 % 100 % 100 % |
Disclosure of net defined benefit liability (asset) [text block] | Movements in the present value of defined benefit obligations (PBO) 2017 2016 2015 PBO as at January 1 $ 462,554 447,099 405,703 Benefits paid by the plan (32,940) (26,031) (25,244) Service cost 28,968 29,604 26,836 Interest cost 40,170 34,857 31,603 Actuarial (gains) losses recognized in other comprehensive income 13,458 (24,827) 8,201 Past service cost plan amendments - 1,852 - PBO as at December 31 $ 512,210 462,554 447,099 |
Disclosure of fair value of plan assets [text block] | Movements in the fair value of plan assets 2017 2016 2015 Plan assets at fair value as at January 1 $ 267,535 286,881 314,804 Transfer of assets to fund defined contribution benefit plan (10,664) (25,600) (24,187) Benefits paid by the plan (17,049) (9,457) (10,894) Expected return on plan assets 23,342 25,650 24,901 Actuarial losses in other comprehensive income (3,919) (9,939) (17,743) Fair value of plan assets as at December 31 $ 259,245 267,535 286,881 |
Disclosure of additional information about defined benefit plans [text block] | Expense recognized in profit and loss 2017 2016 2015 Current service cost $ 28,968 29,604 26,836 Interest cost, net 16,828 9,207 6,702 $ 45,796 38,811 33,538 |
Reserves of remeasurements of defined benefit plans [text block] | Actuarial gains and (losses) 2017 2016 2015 Amount accumulated as at January, 1 $ (123,240) (138,128) (112,184) Recognized during the year (17,377) 14,888 (25,944) Amount accumulated as at December, 31 $ (140,617) (123,240) (138,128) |
Disclosure of actuarial assumptions [text block] | Actuarial assumptions Primary actuarial assumptions at the consolidated financial statements date (expressed as weighted averages) are as follows. 2017 2016 2015 Discount rate as at December, 31 9.25 % 9.00 % 8.00 % Rate for future salary increases 4.50 % 4.50 % 4.50 % Social security wage increase rate 3.50 % 3.50 % 3.50 % |
Disclosure of historical information of defined benefit plan [text block] | Historical information December 31, 2017 2016 2015 Present value of defined benefit obligation $ 512,210 462,554 447,099 Plan assets at fair value (259,245) (267,535) (286,881) Plan deficit $ 252,965 195,019 160,218 Experience adjustments arising from plan liabilities $ 13,458 (24,827) 8,201 Experience adjustments arising from plan assets $ (3,919) (9,939) (17,743) |
Disclosure of sensitivity analysis for actuarial assumptions [text block] | Sensitivity analysis of the defined benefits obligations as of December 31, 2017, 2016 and 2015 2017 Pension Seniority Constructive Total Discount rate 9.25% (343,485) (99,735) (68,990) (512,210) Rate increase (+ 1%) (314,460) (94,308) (65,113) (473,881) Rate decrease (- 1%) (377,114) (105,810) (73,338) (556,262) 2016 Pension Seniority Constructive Total Discount rate 9.00% (308,885) (93,877) (59,792) (462,554) Rate increase (+ 1%) (280,316) (88,657) (56,237) (425,210) Rate decrease (- 1%) (312,017) (99,733) (63,796) (475,546) 2015 Pension Seniority Constructive Total Discount rate 8.00% (293,443) (93,037) (60,619) (447,099) Rate increase (+ 1%) (248,925) (87,540) (56,784) (393,249) Rate decrease (- 1%) (338,238) (99,240) (64,961) (502,439) |
Disclosure of claims and benefits paid [text block] | Expected cash flows Total 2018-2028 $ 522 |
Costs and expenses by nature (T
Costs and expenses by nature (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of costs and expenses by nature [Abstract] | |
Disclosure of expenses by nature [text block] | 2017 2016 2015 Cost of sales $ 47,502,959 42,635,071 36,847,508 General, selling and administrative expenses 5,423,379 4,847,858 4,323,374 Total costs and expenses $ 52,926,338 47,482,929 41,170,882 Inventory consumption $ 37,567,550 34,018,493 28,877,468 Wages and salaries 6,605,584 5,971,382 5,127,750 Freight 4,176,508 3,712,349 3,394,780 Maintenance 1,471,392 1,292,763 1,166,326 Other utility expenses 1,334,339 1,005,570 1,020,610 Depreciation 1,075,788 925,748 769,270 Leases 416,437 403,116 359,749 Other 278,740 153,508 454,929 Total $ 52,926,338 47,482,929 41,170,882 |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Operating leases [Abstract] | |
Disclosure of detailed information about annual lease expenses recognized [text block] | These agreements have terms between one and five years. 2017 2016 2015 Lease expenses $ 416,437 403,116 359,749 |
Disclosure of finance lease and operating lease by lessee [text block] | The amount of annual rentals payable, arising from lease agreements for the following five years is as follows: 2018 $ 184,253 2019 140,420 2020 120,365 2021 103,316 2022 120,031 |
Stockholders' equity and rese59
Stockholders' equity and reserves (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |
Disclosure of detailed Information about capital stocks held by the family trusts [Text Block] | After the sale of the shares, the Company’s capital stock was as follows: Before the Transaction After the Transaction Shares (1) Position Shares (1) Position Familiar Trusts 496,500,000 82.75 % 439,500,000 73.25 % - Control Trust 312,000,000 52.00 % 312,000,000 52.00 % - Placement Trust 184,500,000 30.75 % 127,500,000 21.25 % Floating Position (2) 103,500,000 17.25 % 160,500,000 26.75 % (1) All Series B shares with voting power. (2) Operating at the BMV and the NYSE. |
Disclosure of detailed information about stockholders with one percent or more interest in the company excluding family trusts [Text Block] | Based on the information provided to the Company, as of December 31, 2017, stockholders with 1% or more interest in the Company, in addition to the family trusts, are as follows: Shares Position Renaissance Technologies LLC 6,562,800 1.09 % |
Disclosure of detailed information about movements of reserve for acquisition of shares [text block] | The following table shows the movements of the reserve for acquisition of shares during the years ended December 31, 2017, 2016 and 2015: 2017 2016 2015 Balance as at January 1 - 10,000 - (+) Total shares purchased 20,000 100,157 677,013 (-) Total shares sold - (110,157) (667,013) Balance as at December 31 20,000 - 10,000 |
Disclosure Of Detailed Information Of Income Tax Balances of Stockholders' Equity [text Block] | CUFIN Balance as Balance Total IBSA individual $ 7,445,747 5,890,995 13,336,742 IBSA Consolidated 8,273,539 10,719,930 18,993,469 |
Financial income and costs (Tab
Financial income and costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Financial income and costs [Abstract] | |
Disclosure of detailed information about financial income and costs [text block] | 2017 2016 2015 Interest income $ 848,148 637,977 482,442 Income from interest in accounts receivable 8,961 8,357 7,492 Foreign exchange gain, net 230,532 297,463 95,447 Effects of valuation of derivative financial instruments - 25,377 8,464 Financial income 1,087,641 969,174 593,845 Effects of valuation of derivative financial instruments (84,094) - - Interest expense and financial expenses on financial debt (188,597) (129,769) (93,964) Commissions and other financial expenses (67,400) (42,385) (53,328) Financial costs (340,091) (172,154) (147,292) Financial income, net $ 747,550 797,020 446,553 |
Other income (expenses) (Tables
Other income (expenses) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Other income expenses [Abstract] | |
Disclosure of detailed information about other income expenses [text block] | 2017 2016 2015 Other income Sale of scrap of biological assets, raw materials, by-products and other $ 896,840 1,076,902 636,386 Bargain purchase gain of domestic business acquisition (note 4b) 87,496 - - Total other income 984,336 1,076,902 636,386 Other expenses Cost of disposal of biological assets, raw materials, by-products and other (731,110) (704,152) (507,196) Other (85,584) (112,548) (133,830) Total other expenses (816,694) (816,700) (641,026) Total other income (expenses), net $ 167,642 260,202 (4,640) |
Basis of preparation (Detail Te
Basis of preparation (Detail Textual) - MXN-Rate | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Basis of preparation [Abstract] | |||
Closing foreign exchange rate | 19.66 | 20.64 | 17.21 |
Significant accounting polici63
Significant accounting policies (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings [member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 46 |
Vehicles [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 11 |
Computers [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 8 |
Machinery and Equipment [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 19 |
Furniture [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Useful lives or depreciation rates, property, plant and equipment | 11 |
Significant accounting polici64
Significant accounting policies (Details 1) | 12 Months Ended |
Dec. 31, 2017 | |
Buildings [member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated rates of residual, property, plant and equipment | 9.00% |
Machinery and equipments [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated rates of residual, property, plant and equipment | 8.00% |
Vehicles [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated rates of residual, property, plant and equipment | 5.00% |
Computer Equipment [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated rates of residual, property, plant and equipment | 0.00% |
Furniture [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Estimated rates of residual, property, plant and equipment | 2.00% |
Significant accounting polici65
Significant accounting policies (Details 2) | 12 Months Ended |
Dec. 31, 2017 | |
Poultry in its different production stages [Member] | Bottom of range [member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Expected average useful life (weeks) | 40 |
Poultry in its different production stages [Member] | Top of range [member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Expected average useful life (weeks) | 47 |
Breeder pigs [Member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Expected average useful life (weeks) | 156 |
Significant accounting polici66
Significant accounting policies (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
Bottom of range [member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Description of how entity establishes hedge ratio and what sources of hedge ineffectiveness are | 80 |
Top of range [member] | |
Disclosure Of Significant Accounting Policies [Line Items] | |
Description of how entity establishes hedge ratio and what sources of hedge ineffectiveness are | 125 |
Business and asset acquisitio67
Business and asset acquisitions (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017MXN ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | |
Disclosure Of Business And Asset Acquisitions [Line Items] | ||||
Goodwill at acquisition date | $ 1,042,163 | $ 0 | $ 123,933 | |
Albertville Quality Foods Inc [Member] | ||||
Disclosure Of Business And Asset Acquisitions [Line Items] | ||||
Current assets, other than inventories | 202,873 | |||
Inventories | 304,594 | |||
Property, plant and equipment | 547,987 | |||
Other current assets | 10,189 | |||
Intangible assets | 969,942 | |||
Total assets | 2,035,585 | |||
Current liabilities | (155,798) | |||
Deferred income tax | (472,088) | |||
Acquired net identifiable assets, net | 1,407,699 | |||
Consideration paid | 2,449,862 | $ 138,100 | ||
Goodwill at acquisition date | $ 1,042,163 |
Business and asset acquisitio68
Business and asset acquisitions (Details 1) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Business And Asset Acquisitions [Line Items] | |||
Bargain purchase gain (note 30) | $ 87,496 | $ 0 | $ 0 |
Proveedora La Perla S A de C V [Member] | |||
Disclosure Of Business And Asset Acquisitions [Line Items] | |||
Current assets, other than inventories | 13,835 | ||
Inventories | 5,846 | ||
Property, plant and equipment | 584,884 | ||
Total assets | 604,565 | ||
Current liabilities | (392,646) | ||
Deferred income tax | (79,423) | ||
Acquired net identifiable assets, net | 132,496 | ||
Consideration paid | 45,000 | ||
Bargain purchase gain (note 30) | $ 87,496 |
Business and asset acquisitio69
Business and asset acquisitions (Details 2) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure Of Business And Asset Acquisitions [Line Items] | ||||
Goodwill | $ 1,631,094 | $ 484,877 | $ 454,295 | $ 349,764 |
Morris Hatchery Inc [Member] | ||||
Disclosure Of Business And Asset Acquisitions [Line Items] | ||||
Current and non-current biological assets | 235,486 | |||
Inventories | 300 | |||
Property, plant and equipment | 11,581 | |||
Acquired assets, net | 247,367 | |||
Cash consideration paid | 371,300 | |||
Goodwill | $ (123,933) |
Business and asset acquisitio70
Business and asset acquisitions (Detail Textual) $ in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017MXN ($) | Dec. 31, 2017USD ($) | Jul. 14, 2017 | |
Albertville Quality Foods Inc [Member] | |||
Disclosure Of Business And Asset Acquisitions [Line Items] | |||
Percentage of voting equity interests acquired | 100.00% | ||
Consideration paid | $ 2,449,862 | $ 138,100 | |
Revenue of combined entity as if combination occurred at beginning of period | 61,093,104 | ||
Profit (loss) of combined entity as if combination occurred at beginning of period | 5,202,397 | ||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | $ 16,145 | ||
Proveedora La Perla S A de C V [Member] | |||
Disclosure Of Business And Asset Acquisitions [Line Items] | |||
Percentage of voting equity interests acquired | 100.00% | 100.00% | |
Consideration paid | $ 45,000 | ||
Revenue of combined entity as if combination occurred at beginning of period | 58,182,059 | ||
Profit (loss) of combined entity as if combination occurred at beginning of period | 5,086,470 | ||
Acquisition-related costs recognised as expense for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination | $ 15,465 |
Subsidiaries of the Company (De
Subsidiaries of the Company (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Bachoco SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 51.00% | ||
Mexico [Member] | Bachoco SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | Campi Alimentos SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | Induba Pavos SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | Bachoco Comercial SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | PEC LAB SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 64.00% | 64.00% | 64.00% |
Mexico [Member] | Aviser SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | Operadora de Servicios de Personal SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | Secba SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | Servicios de Personal Administrativo SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | Sepetec SA de CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 99.99% | 99.99% | 99.99% |
Mexico [Member] | Proveedora La Perla SA of CV [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 0.00% | 0.00% |
US [Member] | Bachoco USA LLC Subsidiary [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 100.00% |
Bermuda [Member] | Wii kit RE LTD [Member] | |||
Disclosure Of Subsidiaries Of Company [Line Items] | |||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 0.00% |
Subsidiaries of the Company (72
Subsidiaries of the Company (Details Textual) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2017 | |
Proveedora La Perla, S.A [Member] | ||||
Disclosure Of Subsidiaries Of Company [Line Items] | ||||
Percentage of voting equity interests acquired | 100.00% | |||
Bachoco SA de CV [Member] | ||||
Disclosure Of Subsidiaries Of Company [Line Items] | ||||
Proportion of ownership interest in subsidiary | 51.00% | |||
Bermuda [Member] | Wii kit RE LTD [Member] | ||||
Disclosure Of Subsidiaries Of Company [Line Items] | ||||
Proportion of ownership interest in subsidiary | 100.00% | 100.00% | 0.00% |
Operating segments (Details)
Operating segments (Details) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of operating segments [line items] | ||||
Net revenues | $ 58,050,025 | $ 52,020,303 | $ 46,229,049 | |
Cost of sales | 47,502,959 | 42,635,071 | 36,847,508 | |
Gross Profit | 10,547,066 | 9,385,232 | 9,381,541 | |
Finance income | 1,087,641 | 969,174 | 593,845 | |
Finance costs | 340,091 | 172,154 | 147,292 | |
Income before taxes | 6,038,879 | 5,594,596 | 5,500,080 | |
Income taxes | 1,084,444 | 1,643,433 | 1,680,560 | |
Net income attributable to controlling interest | 4,948,242 | 3,946,634 | 3,812,840 | |
Property, plant and equipment, net | 17,320,041 | 15,081,105 | 13,188,131 | |
Goodwill | 1,631,094 | 484,877 | 454,295 | $ 349,764 |
Intangible assets | 1,040,042 | 0 | 0 | |
Total assets | 50,557,389 | 45,090,466 | 40,446,578 | |
Total liabilities | 14,879,461 | 13,374,292 | 12,667,200 | |
Purchases of property, plant and equipment | 2,126,361 | 2,792,252 | 1,909,771 | |
Depreciation and amortization | 1,075,788 | 925,748 | 769,270 | |
Reportable segments [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 52,479,393 | 46,852,482 | 41,789,451 | |
Cost of sales | 42,767,202 | 38,285,367 | 32,906,801 | |
Gross Profit | 9,712,191 | 8,567,116 | 8,882,649 | |
Finance income | 943,477 | 840,640 | ||
Finance costs | 295,011 | 149,319 | ||
Income before taxes | 5,522,187 | 5,077,042 | 5,196,883 | |
Income taxes | 958,201 | 1,494,918 | 1,590,892 | |
Net income attributable to controlling interest | 4,558,370 | 3,578,049 | 3,599,728 | |
Property, plant and equipment, net | 15,464,404 | 13,478,294 | 11,805,132 | |
Goodwill | 1,543,078 | 396,861 | 366,280 | |
Intangible assets | 1,040,042 | |||
Total assets | 45,165,551 | 40,035,990 | 36,085,954 | |
Total liabilities | 13,525,194 | 11,909,391 | 11,325,636 | |
Purchases of property, plant and equipment | 3,154,390 | 2,226,493 | 1,646,968 | |
Depreciation and amortization | 982,019 | 840,624 | 694,502 | |
Reportable segments [member] | Elimination of intersegment amounts [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | (4,871) | (4,406) | (6,613) | |
Reportable segments [member] | Total revenue [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 52,484,264 | 46,856,888 | 41,796,064 | |
Other Segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 5,570,632 | 5,167,821 | 4,439,598 | |
Cost of sales | 4,735,757 | 4,349,704 | 3,940,707 | |
Gross Profit | 834,875 | 818,116 | 498,892 | |
Finance income | 144,164 | 128,534 | ||
Finance costs | 45,080 | 22,835 | ||
Income before taxes | 516,692 | 517,554 | 303,197 | |
Income taxes | 126,243 | 148,515 | 89,668 | |
Net income attributable to controlling interest | 389,872 | 368,585 | 213,112 | |
Property, plant and equipment, net | 1,855,637 | 1,602,811 | 1,382,999 | |
Goodwill | 88,016 | 88,016 | 88,015 | |
Intangible assets | 0 | |||
Total assets | 5,391,838 | 5,054,476 | 4,360,624 | |
Total liabilities | 1,354,267 | 1,464,901 | 1,341,564 | |
Purchases of property, plant and equipment | 358,988 | 233,251 | 177,541 | |
Depreciation and amortization | 93,769 | 85,124 | 74,768 | |
Other Segments [Member] | Elimination of intersegment amounts [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | (45,622) | (46,660) | (44,750) | |
Other Segments [Member] | Total revenue [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | $ 5,616,254 | $ 5,214,481 | $ 4,484,348 |
Operating segments (Details 1)
Operating segments (Details 1) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of operating segments [line items] | ||||
Net revenues | $ 58,050,025 | $ 52,020,303 | $ 46,229,049 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies | ||||
Non-current biological assets | 1,617,503 | 1,668,543 | 1,434,131 | |
Property, plant and equipment, net | 17,320,041 | 15,081,105 | 13,188,131 | |
Goodwill | 1,631,094 | 484,877 | 454,295 | $ 349,764 |
Intangible assets | 1,040,042 | 0 | 0 | |
Country of domicile [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 36,013,268 | 33,414,262 | 30,686,151 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies | ||||
Non-current biological assets | 899,691 | 902,662 | 795,157 | |
Property, plant and equipment, net | 12,143,632 | 10,481,074 | 9,682,701 | |
Goodwill | 212,833 | 212,833 | 212,833 | |
Intangible assets | 0 | |||
Foreign countries [member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | 16,533,664 | 13,496,189 | 11,159,936 | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies | ||||
Non-current biological assets | 717,812 | 765,881 | 638,974 | |
Property, plant and equipment, net | 3,320,772 | 2,997,221 | 2,122,431 | |
Goodwill | 1,330,245 | 184,028 | 153,447 | |
Intangible assets | 1,040,042 | |||
Operration between geographical segments [Member] | ||||
Disclosure of operating segments [line items] | ||||
Net revenues | (67,539) | (57,969) | (56,637) | |
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and investments in insurance policies | ||||
Non-current biological assets | 0 | 0 | 0 | |
Property, plant and equipment, net | 0 | 0 | 0 | |
Goodwill | 0 | $ 0 | $ 0 | |
Intangible assets | $ 0 |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure Of Cash And Cash Equivalents [Abstract] | ||||
Cash and banks | $ 15,464,312 | $ 9,890,007 | $ 4,774,420 | |
Investments with maturities less than three months | 623,898 | 4,771,961 | 9,246,071 | |
Cash and cash equivalents | 16,088,210 | 14,661,968 | 14,020,491 | $ 11,028,054 |
Restricted Cash and Cash Equivalents | 24,058 | 19,236 | 25,771 | |
Total cash and cash equivalents and restricted cash | $ 16,112,268 | $ 14,681,204 | $ 14,046,262 |
Financial instruments and ris76
Financial instruments and risk management (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financial liabilities | |||
Financial liabilities | $ 5,249,024 | $ 4,047,937 | $ 4,127,010 |
Financial debt [Member] | |||
Financial liabilities | |||
Financial liabilities | (5,249,024) | (4,047,937) | (4,127,010) |
Trade payables, sundry creditors and expenses payable [Member] | |||
Financial liabilities | |||
Financial liabilities | (4,163,443) | (4,095,089) | (4,088,989) |
Due to related parties [Member] | |||
Financial liabilities | |||
Financial liabilities | (55,252) | (189,966) | (165,628) |
Cash and cash equivalent [Member] | |||
Financial assets | |||
Financial assets | 16,112,268 | 14,681,204 | 14,046,262 |
Investment in securities at fair value through profit or loss [Member] | |||
Financial assets | |||
Financial assets | 1,127,841 | 970,292 | 1,242,614 |
Investments held to maturity [Member] | |||
Financial assets | |||
Financial assets | 64,629 | 65,509 | 52,572 |
Accounts receivables [Member] | |||
Financial assets | |||
Financial assets | 2,599,208 | 2,524,942 | 1,862,250 |
Due from related parties [Member] | |||
Financial assets | |||
Financial assets | 326 | 148,855 | 194,522 |
Long-term receivables [Member] | |||
Financial assets | |||
Financial assets | 162,337 | 161,690 | 128,169 |
Derivative financial instruments [Member] | |||
Financial assets | |||
Financial assets | 0 | 8,308 | 1,244 |
Financial liabilities | |||
Financial liabilities | $ (6,821) | $ 0 | $ 0 |
Financial instruments and ris77
Financial instruments and risk management (Details 1) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | $ 19,448,128 | $ 17,990,254 | $ 16,964,621 |
Cash and cash equivalent [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | 16,112,268 | 14,681,204 | 14,046,262 |
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 | 1,127,841 | 970,292 | 1,242,614 |
Investments held to maturity [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | 64,629 | 65,509 | 52,572 |
Accounts receivable net of guarantees received [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | 2,143,390 | 2,264,941 | 1,621,929 |
Derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Maximum exposure to credit risk | $ 0 | $ 8,308 | $ 1,244 |
Financial instruments and ris78
Financial instruments and risk management (Details 2) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | $ 5,249,024 | $ 4,047,937 | $ 4,127,010 |
Trade payables, sundry creditors and expenses payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | (4,163,443) | (4,095,089) | (4,088,989) |
Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | (55,252) | (189,966) | (165,628) |
Not later than one year [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 8,083,352 | 7,524,680 | 5,834,712 |
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 | 4,163,443 | 4,095,089 | 4,088,989 |
Not later than one year [member] | Due to related parties [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 55,252 | 189,966 | |
Not later than one year [member] | Derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 6,821 | ||
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 | 2,752,400 | 1,444,800 | 1,462,850 |
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 | 942,651 | 1,652,725 | 169,033 |
Not later than one year [member] | Floating interest rate [member] | Interest payable [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 162,785 | 142,100 | 113,840 |
Later than one year and not later than three years [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 298,457 | 1,087,271 | 2,593,967 |
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 [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | |||
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 | 53,973 | 950,412 | 2,495,127 |
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 | 244,484 | 136,859 | 98,840 |
Later than three years and not later than five years [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | 1,703,840 | 0 | 0 |
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 [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities | |||
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 | 1,500,000 | 0 | 0 |
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 | $ 203,840 | $ 0 | $ 0 |
Financial instruments and ris79
Financial instruments and risk management (Details 3) $ in Thousands, $ in Thousands | Dec. 31, 2017MXN ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2015USD ($) |
Assets | ||||||
Cash and cash equivalents | $ 16,112,268 | $ 14,681,204 | $ 14,046,262 | |||
Investment in securities at fair value through profit or loss | 1,127,841 | 970,292 | 1,242,614 | |||
Accounts receivable | 3,626,878 | 3,629,144 | 2,533,427 | |||
Total assets | 50,557,389 | 45,090,466 | 40,446,578 | |||
Liabilities | ||||||
Trade accounts payable | 4,740,366 | 4,545,177 | 4,597,103 | |||
Financial debt | 842,651 | 1,652,725 | 9,033 | |||
Total Liabilities | (14,879,461) | (13,374,292) | (12,667,200) | |||
Currency risk [member] | ||||||
Assets | ||||||
Cash and cash equivalents | 6,399,186 | $ 325,493 | 2,608,800 | $ 126,395 | 1,151,844 | $ 66,929 |
Investment in securities at fair value through profit or loss | 574,312 | 29,212 | 575,085 | 27,863 | 491,325 | 28,549 |
Accounts receivable | 37,640 | 1,915 | 51,350 | 2,488 | 4,210 | 245 |
Total assets | 7,011,138 | 356,619 | 3,235,235 | 156,746 | 1,647,379 | 95,722 |
Liabilities | ||||||
Trade accounts payable | (3,044,515) | (154,858) | (2,143,547) | (103,854) | (2,440,708) | (141,819) |
Financial debt | (2,752,400) | (140,000) | (1,444,800) | (70,000) | (1,462,850) | (85,000) |
Total Liabilities | (5,796,915) | (294,858) | (3,588,347) | (173,854) | (3,903,558) | (226,819) |
Net asset position | 1,214,223 | 61,761 | 0 | 0 | 0 | 0 |
Net liability position | $ 0 | $ 0 | $ (353,112) | $ (17,108) | $ (2,256,179) | $ (131,097) |
Financial instruments and ris80
Financial instruments and risk management (Details 4) - MXN-Rate | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial instruments and risk management [Abstract] | |||
Average exchange rate | 18.91 | 18.68 | 15.87 |
Spot exchange rate | 19.66 | 20.64 | 17.21 |
Financial instruments and ris81
Financial instruments and risk management (Details 5) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial instruments and risk management [Abstract] | |||
Carrying amount | $ 5,249,024 | $ 4,047,937 | $ 4,127,010 |
Fair value | $ 5,255,932 | $ 4,062,999 | $ 4,141,473 |
Financial instruments and ris82
Financial instruments and risk management (Details 6) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | $ 1,121,020 | $ 978,600 | $ 1,244,053 |
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 | 1,127,841 | 970,292 | 1,242,614 |
Derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | (6,821) | 8,308 | 1,244 |
Interest rate derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 195 | ||
Level 1 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 969,309 | 970,292 | 1,242,614 |
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 | 969,309 | 970,292 | 1,242,614 |
Level 1 of fair value hierarchy [member] | Derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 0 | 0 | 0 |
Level 1 of fair value hierarchy [member] | Interest rate derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 0 | ||
Level 2 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 151,711 | 8,308 | 1,439 |
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 | 158,532 | 0 | 0 |
Level 2 of fair value hierarchy [member] | Derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | (6,821) | 8,308 | 1,244 |
Level 2 of fair value hierarchy [member] | Interest rate derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | 195 | ||
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] | Derivative financial instruments [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] | Interest rate derivative financial instruments [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial assets, at fair value | $ 0 |
Financial instruments and ris83
Financial instruments and risk management (Details 7) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | $ 5,255,932 | $ 4,062,999 | $ 4,141,473 |
Financial debt related to bank institutions [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (3,749,024) | (2,550,469) | (2,626,327) |
Financial debt related to debt securities [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (1,506,908) | (1,512,530) | (1,515,146) |
Level 1 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (1,506,908) | (1,512,530) | (1,515,146) |
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 | (1,506,908) | (1,512,530) | (1,515,146) |
Level 2 of fair value hierarchy [member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Financial liabilities at amortised cost | (3,749,024) | (2,550,469) | (2,626,327) |
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 | (3,749,024) | (2,550,469) | (2,626,327) |
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 | |
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 ris84
Financial instruments and risk management (Details 8) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | $ 4,954,435 | $ 3,951,163 | $ 3,819,520 |
Other price risk increase [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | (16,094) | (9,085) | (44,589) |
Other price risk decrease [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | 21,229 | 8,785 | 56,753 |
Interest rate risk increase [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | 43,485 | 15,385 | 17,375 |
Interest rate risk decrease [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | (43,485) | (15,385) | (17,375) |
Currency risk increase [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | (121,422) | 35,311 | 225,618 |
Currency risk decrease [Member] | |||
Disclosure of financial instruments and risk management [Line Items] | |||
Loss (profit) for the year | $ 121,422 | $ (35,311) | $ (225,618) |
Financial instruments and ris85
Financial instruments and risk management (Details Textual) $ in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2017MXN ($)MXN-Rate | Dec. 31, 2016MXN ($)MXN-Rate | Dec. 31, 2016USD ($) | Dec. 31, 2015MXN ($)MXN-Rate | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($)MXN-Rate | Dec. 31, 2016USD ($)MXN-Rate | Dec. 31, 2015USD ($)MXN-Rate | |
Disclosure of financial instruments and risk management [Line Items] | ||||||||
Maximum exposure to credit risk | $ 19,448,128 | $ 17,990,254 | $ 16,964,621 | |||||
Provisions for doubtful debts related to outstanding balances of related party transaction | 141,636 | 130,290 | 103,057 | |||||
Financial assets that are individually determined to be impaired, fair value of collateral held and other credit enhancements | $ 618,481 | 570,546 | 563,012 | |||||
Gain (loss) on change in fair value of hedging instrument used as basis for recognising hedge ineffectiveness | $ 3,189 | 5,601 | ||||||
Percentage of option premium to pay | 80.00% | 80.00% | ||||||
Percentage of recovery of option premium | 80.00% | 80.00% | ||||||
Percentage of recovery of additional option premium | 10.00% | 10.00% | ||||||
Trading income (expense) on derivative financial instruments | $ 67,080 | $ 3,250 | $ 57,051 | $ 3,315 | ||||
Closing foreign exchange rate | MXN-Rate | 19.66 | 20.64 | 17.21 | 19.66 | 20.64 | 17.21 | ||
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% | 15.00% | 15.00% | 15.00% | 15.00% | |||
Sensitivity analysis for percentage decrease in bushell price of corn and short ton price of soybeans | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |||
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 | $ 25,971 | $ 41,235 | $ 0 | |||||
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 | 43,493 | 47,639 | 10,575 | |||||
Currency risk [member] | ||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||
Assets (liabilities) | 1,214,223 | $ 0 | 0 | $ 61,761 | $ 0 | $ 0 | ||
Agency of Services for Distribution and Development of Agricultural Markets [Member] | ||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||
Percentage of option premium to pay | 20.00% | 20.00% | ||||||
Investments held to maturity [Member] | ||||||||
Disclosure of financial instruments and risk management [Line Items] | ||||||||
Maximum exposure to credit risk | $ 64,629 | $ 65,509 | $ 52,572 | |||||
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, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure Of Accounts Receivable, Net [Abstract] | ||||
Trade receivables | $ 2,673,705 | $ 2,482,077 | $ 1,867,104 | |
Allowance for doubtful accounts | (96,900) | (97,400) | (81,641) | $ (76,793) |
Other receivables | 22,403 | 140,265 | 76,787 | |
Government grant | 0 | 0 | 40 | |
Income tax receivable | 57,186 | 115,428 | 143,517 | |
Recoverable value-added tax and other recoverable taxes | 970,484 | 988,774 | 527,620 | |
Trade and other current receivables | $ 3,626,878 | $ 3,629,144 | $ 2,533,427 |
Accounts receivable, net (Det87
Accounts receivable, net (Details 1) - Financial assets past due but not impaired [member] - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Accounts Receivable, Net [Line Items] | |||
Trade receivables | $ 206,603 | $ 167,853 | $ 132,758 |
Past due 0 to 60 days | |||
Disclosure Of Accounts Receivable, Net [Line Items] | |||
Trade receivables | 200,413 | 164,458 | 129,315 |
Past due by more than 60 days | |||
Disclosure Of Accounts Receivable, Net [Line Items] | |||
Trade receivables | $ 6,190 | $ 3,395 | $ 3,443 |
Accounts receivable, net (Det88
Accounts receivable, net (Details 2) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Accounts Receivable, Net [Abstract] | |||
Balance as of January 1 | $ (97,400) | $ (81,641) | $ (76,793) |
Increase in allowance | (14,800) | (18,405) | (17,179) |
Amounts written off | 15,287 | 2,818 | 12,454 |
Currency translation effect | 13 | (172) | (123) |
Balance as of December 31, | $ (96,900) | $ (97,400) | $ (81,641) |
Accounts receivable, net (Det89
Accounts receivable, net (Details Textual) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Accounts Receivable, Net [Abstract] | |||
Legal Proceedings Receivables | $ 141,636 | $ 130,290 | $ 103,057 |
Inventories (Details)
Inventories (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Inventories Explanatory [Abstract] | |||
Raw materials and by-products | $ 1,861,092 | $ 1,515,824 | $ 1,155,841 |
Medicine, materials and spare parts | 820,417 | 808,492 | 772,226 |
Balanced feed | 296,538 | 275,845 | 241,473 |
Processed chicken | 1,561,912 | 1,154,207 | 1,112,068 |
Commercial eggs | 46,185 | 37,242 | 38,683 |
Processed beef | 58,563 | 36,599 | 38,533 |
Processed turkey | 64,918 | 122,722 | 34,251 |
Other processed products | 17,708 | 19,757 | 11,194 |
Total | $ 4,727,333 | $ 3,970,688 | $ 3,404,269 |
Inventories (Details Textual)
Inventories (Details Textual) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Inventories Explanatory [Abstract] | |||
Raw materials and consumables used | $ 37,567,550 | $ 34,018,493 | $ 28,877,468 |
Biological assets (Details)
Biological assets (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of biological assets [Line Items] | |||
Balance | $ 3,629,734 | $ 3,085,925 | $ 2,610,661 |
Increase due to purchases | 890,634 | 842,052 | 940,713 |
Sales | (87,230) | (109,776) | 3,032 |
Net increase due to births | 2,389,731 | 2,274,755 | 1,647,535 |
Production cost | 32,424,234 | 31,135,820 | 27,404,244 |
Depreciation | (2,058,461) | (1,903,086) | (1,475,470) |
Transfers to inventories | (33,547,127) | (31,921,655) | (28,169,331) |
Other | (81,819) | 225,699 | 124,541 |
Balance | 3,559,696 | 3,629,734 | 3,085,925 |
Current biological assets [member] | |||
Disclosure of biological assets [Line Items] | |||
Balance | 1,961,191 | 1,651,794 | 1,501,428 |
Increase due to purchases | 291,361 | 237,525 | 337,632 |
Sales | 0 | 0 | 0 |
Net increase due to births | 277,621 | 240,085 | 225,000 |
Production cost | 30,892,045 | 29,620,380 | 26,283,885 |
Depreciation | 0 | 0 | 0 |
Transfers to inventories | (31,435,017) | (29,886,985) | (26,746,796) |
Other | (45,008) | 98,392 | 50,645 |
Balance | 1,942,193 | 1,961,191 | 1,651,794 |
Non-current biological assets [member] | |||
Disclosure of biological assets [Line Items] | |||
Balance | 1,668,543 | 1,434,131 | 1,109,233 |
Increase due to purchases | 599,273 | 604,527 | 603,081 |
Sales | (87,230) | (109,776) | 3,032 |
Net increase due to births | 2,112,110 | 2,034,670 | 1,422,535 |
Production cost | 1,532,189 | 1,515,440 | 1,120,359 |
Depreciation | (2,058,461) | (1,903,086) | (1,475,470) |
Transfers to inventories | (2,112,110) | (2,034,670) | (1,422,535) |
Other | (36,811) | 127,307 | 73,896 |
Balance | $ 1,617,503 | $ 1,668,543 | $ 1,434,131 |
Biological assets (Details Text
Biological assets (Details Textual) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of biological assets [Abstract] | |||
Change in fair value of biological assets | $ 22,598 | $ 18,276 | $ 13,020 |
Prepaid expenses and other cu94
Prepaid expenses and other current assets (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of prepaid expenses and other current assets [Abstract] | |||
Advances to suppliers of inventories | $ 234,458 | $ 929,815 | $ 1,224,454 |
Prepaid expenses of services | 235,652 | 217,244 | 130,086 |
Prepaid expenses of insurance and bonds | 88,533 | 185,678 | 82,238 |
Other current assets | 80,028 | 171,208 | 151,030 |
Total | $ 638,671 | $ 1,503,945 | $ 1,587,808 |
Assets held for sale (Details)
Assets held for sale (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of assets held for sale [Line Items] | |||
Non-current assets or disposal groups classified as held for sale | $ 49,523 | $ 56,728 | $ 60,048 |
Buildings [member] | |||
Disclosure of assets held for sale [Line Items] | |||
Non-current assets or disposal groups classified as held for sale | 18,920 | 21,551 | 24,430 |
Land [Member] | |||
Disclosure of assets held for sale [Line Items] | |||
Non-current assets or disposal groups classified as held for sale | 27,765 | 32,338 | 32,779 |
Other Assets [Member] | |||
Disclosure of assets held for sale [Line Items] | |||
Non-current assets or disposal groups classified as held for sale | $ 2,838 | $ 2,839 | $ 2,839 |
Assets held for sale (Details T
Assets held for sale (Details Textual) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of assets held for sale [Abstract] | |||
Gains (losses) on disposals of property, plant and equipment | $ 2,437 | $ 0 | $ (24) |
Property, plant and equipment97
Property, plant and equipment (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | $ 15,081,105 | $ 13,188,131 | |
Balance as at December 31,2014 | 17,320,041 | 15,081,105 | $ 13,188,131 |
Property, plant and equipment | 17,320,041 | 15,081,105 | 13,188,131 |
Acquisitions through business combinations, property, plant and equipment | 1,132,871 | 11,581 | |
Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 1,210,052 | 1,160,809 | |
Balance as at December 31,2014 | 1,353,643 | 1,210,052 | 1,160,809 |
Property, plant and equipment | 1,210,052 | 1,210,052 | 1,160,809 |
Acquisitions through business combinations, property, plant and equipment | 133,347 | ||
Furniture [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 45,224 | 36,442 | |
Balance as at December 31,2014 | 50,329 | 45,224 | 36,442 |
Property, plant and equipment | 45,224 | 45,224 | 36,442 |
Acquisitions through business combinations, property, plant and equipment | 5,679 | 16 | |
Leasehold improvements [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 5,186 | 8,742 | |
Balance as at December 31,2014 | 2,661 | 5,186 | 8,742 |
Property, plant and equipment | 5,186 | 5,186 | 8,742 |
Construction in progress [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 1,459,682 | 1,268,545 | |
Balance as at December 31,2014 | 1,435,147 | 1,459,682 | 1,268,545 |
Property, plant and equipment | 1,459,682 | 1,459,682 | 1,268,545 |
Buildings and construction [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 5,471,570 | 5,074,336 | |
Balance as at December 31,2014 | 6,116,970 | 5,471,570 | 5,074,336 |
Property, plant and equipment | 5,471,570 | 5,471,570 | 5,074,336 |
Acquisitions through business combinations, property, plant and equipment | 500,608 | ||
Machinery and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 5,971,025 | 5,078,940 | |
Balance as at December 31,2014 | 7,315,057 | 5,971,025 | 5,078,940 |
Property, plant and equipment | 5,971,025 | 5,971,025 | 5,078,940 |
Acquisitions through business combinations, property, plant and equipment | 491,101 | 126 | |
Transportation equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 869,900 | 534,673 | |
Balance as at December 31,2014 | 1,001,747 | 869,900 | 534,673 |
Property, plant and equipment | 869,900 | 869,900 | 534,673 |
Acquisitions through business combinations, property, plant and equipment | 2,137 | 11,439 | |
Computer equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 48,466 | 25,644 | |
Balance as at December 31,2014 | 44,487 | 48,466 | 25,644 |
Property, plant and equipment | 48,466 | 48,466 | 25,644 |
Total [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 27,218,077 | 24,689,546 | 22,986,027 |
Additions | 3,513,378 | 2,459,744 | 1,824,509 |
Disposals | (286,965) | (556,829) | (458,157) |
Currency traslation | (121,978) | 625,616 | 337,167 |
Balance as at December 31,2014 | 30,322,512 | 27,218,077 | 24,689,546 |
Property, plant and equipment | 27,218,077 | 24,689,546 | 24,689,546 |
Total [Member] | Land [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 1,210,052 | 1,160,809 | 1,094,182 |
Additions | 156,000 | 40,398 | 57,901 |
Disposals | (8,851) | (6,257) | (661) |
Currency traslation | (3,558) | 15,102 | 9,387 |
Balance as at December 31,2014 | 1,353,643 | 1,210,052 | 1,160,809 |
Property, plant and equipment | 1,210,052 | 1,160,809 | 1,160,809 |
Total [Member] | Furniture [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 174,183 | 155,995 | 153,015 |
Additions | 19,515 | 20,548 | 6,372 |
Disposals | (23,505) | (5,183) | (5,351) |
Currency traslation | (441) | 2,823 | 1,959 |
Balance as at December 31,2014 | 169,752 | 174,183 | 155,995 |
Property, plant and equipment | 174,183 | 155,995 | 155,995 |
Total [Member] | Leasehold improvements [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 5,186 | 8,742 | 21,442 |
Additions | 0 | 0 | 0 |
Disposals | (2,525) | (3,556) | (12,700) |
Currency traslation | 0 | 0 | 0 |
Balance as at December 31,2014 | 2,661 | 5,186 | 8,742 |
Property, plant and equipment | 5,186 | 8,742 | 8,742 |
Total [Member] | Construction in progress [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 1,459,682 | 1,268,545 | 991,866 |
Additions | 694 | 103,695 | 295,291 |
Disposals | (33,419) | 0 | (18,612) |
Currency traslation | 8,190 | 87,442 | 0 |
Balance as at December 31,2014 | 1,435,147 | 1,459,682 | 1,268,545 |
Property, plant and equipment | 1,459,682 | 1,268,545 | 1,268,545 |
Total [Member] | Buildings and construction [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 10,603,293 | 10,017,180 | 9,669,990 |
Additions | 896,020 | 423,357 | 204,254 |
Disposals | (3,200) | (69,520) | (17,191) |
Currency traslation | (55,829) | 232,276 | 160,127 |
Balance as at December 31,2014 | 11,440,284 | 10,603,293 | 10,017,180 |
Property, plant and equipment | 10,603,293 | 10,017,180 | 10,017,180 |
Total [Member] | Machinery and equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 12,035,769 | 10,706,221 | 9,816,722 |
Additions | 2,158,477 | 1,408,298 | 991,378 |
Disposals | (106,310) | (355,957) | (262,222) |
Currency traslation | (66,055) | 277,207 | 160,343 |
Balance as at December 31,2014 | 14,021,881 | 12,035,769 | 10,706,221 |
Property, plant and equipment | 12,035,769 | 10,706,221 | 10,706,221 |
Total [Member] | Transportation equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 1,611,153 | 1,286,212 | 1,171,030 |
Additions | 269,462 | 433,746 | 247,232 |
Disposals | (105,982) | (114,222) | (135,257) |
Currency traslation | (1,480) | 5,417 | 3,207 |
Balance as at December 31,2014 | 1,773,153 | 1,611,153 | 1,286,212 |
Property, plant and equipment | 1,611,153 | 1,286,212 | 1,286,212 |
Total [Member] | Computer equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | 118,759 | 85,842 | 67,780 |
Additions | 13,210 | 29,702 | 22,081 |
Disposals | (3,173) | (2,134) | (6,163) |
Currency traslation | (2,805) | 5,349 | 2,144 |
Balance as at December 31,2014 | 125,991 | 118,759 | 85,842 |
Property, plant and equipment | 118,759 | 85,842 | 85,842 |
Accumulated depreciation and amortisation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | (12,136,972) | (11,501,415) | (10,931,273) |
Disposals | 176,150 | 435,734 | 277,838 |
Currency traslation | 34,139 | (145,543) | (78,710) |
Depreciation for the year | (1,075,788) | (925,748) | (769,270) |
Balance as at December 31,2014 | (13,002,471) | (12,136,972) | (11,501,415) |
Property, plant and equipment | (12,136,972) | (11,501,415) | (11,501,415) |
Accumulated depreciation and amortisation [member] | Furniture [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | (128,959) | (119,553) | (113,638) |
Disposals | 20,779 | 2,038 | 4,210 |
Currency traslation | 429 | (1,203) | (644) |
Depreciation for the year | (11,672) | (10,241) | (9,481) |
Balance as at December 31,2014 | (119,423) | (128,959) | (119,553) |
Property, plant and equipment | (128,959) | (119,553) | (119,553) |
Accumulated depreciation and amortisation [member] | Buildings and construction [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | (5,131,723) | (4,942,844) | (4,754,662) |
Disposals | 2,074 | 38,726 | 9,199 |
Currency traslation | 8,848 | (34,795) | (17,979) |
Depreciation for the year | (202,513) | (192,810) | (179,402) |
Balance as at December 31,2014 | (5,323,314) | (5,131,723) | (4,942,844) |
Property, plant and equipment | (5,131,723) | (4,942,844) | (4,942,844) |
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, 2014 | (6,064,744) | (5,627,281) | (5,210,886) |
Disposals | 69,960 | 297,180 | 150,685 |
Currency traslation | 23,421 | (104,273) | (54,294) |
Depreciation for the year | (735,461) | (630,370) | (512,786) |
Balance as at December 31,2014 | (6,706,824) | (6,064,744) | (5,627,281) |
Property, plant and equipment | (6,064,744) | (5,627,281) | (5,627,281) |
Accumulated depreciation and amortisation [member] | Transportation equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | (741,253) | (751,539) | (795,625) |
Disposals | 80,177 | 94,872 | 107,333 |
Currency traslation | 743 | (2,803) | (3,592) |
Depreciation for the year | (111,073) | (81,783) | (59,655) |
Balance as at December 31,2014 | (771,406) | (741,253) | (751,539) |
Property, plant and equipment | (741,253) | (751,539) | (751,539) |
Accumulated depreciation and amortisation [member] | Computer equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance as at January 1, 2014 | (70,293) | (60,198) | (56,462) |
Disposals | 3,160 | 2,918 | 6,411 |
Currency traslation | 698 | (2,469) | (2,201) |
Depreciation for the year | (15,069) | (10,544) | (7,946) |
Balance as at December 31,2014 | (81,504) | (70,293) | (60,198) |
Property, plant and equipment | $ (70,293) | $ (60,198) | $ (60,198) |
Property, plant and equipment98
Property, plant and equipment (Details Textual) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Acquisitions through business combinations, property, plant and equipment | $ 1,132,871 | $ 11,581 | |
Depreciation expense | 1,075,788 | $ 925,748 | 769,270 |
Machinery [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Acquisitions through business combinations, property, plant and equipment | 491,101 | 126 | |
Office Equipment [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Acquisitions through business combinations, property, plant and equipment | 5,679 | 16 | |
Vehicles [Member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Acquisitions through business combinations, property, plant and equipment | $ 2,137 | $ 11,439 |
Goodwill (Details)
Goodwill (Details) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2015USD ($) | |
Disclosure of goodwill [Abstract] | ||||
Balances at beginning of the year | $ 484,877 | $ 454,295 | $ 349,764 | |
Business combinations (Note 4) | 1,042,163 | 0 | 123,933 | |
Goodwill impairment loss | 0 | 0 | (38,619) | $ (2,244) |
Foreign currency effects | 104,054 | 30,582 | 19,217 | |
Balances at end of year | $ 1,631,094 | $ 484,877 | $ 454,295 |
Goodwill (Details 1)
Goodwill (Details 1) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 1,631,094 | $ 484,877 | $ 454,295 | $ 349,764 |
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) | 5 | 5 | 5 | |
Annual discount rate | 12.52% | 12.91% | 9.67% | |
Annual growth rate | 3.00% | 2.70% | 2.70% | |
Campi [Member] | ||||
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 88,015 | $ 88,015 | $ 88,015 | |
Projection period (years) | 5 | 5 | 5 | |
Annual discount rate | 12.52% | 12.91% | 9.67% | |
Annual growth rate | 3.00% | 2.10% | 2.10% | |
Ok farms morris hatchery, inc. arkansas [Member] | ||||
Disclosure of goodwill [Line Items] | ||||
Final balance of the year | $ 65,200 | $ 68,449 | $ 57,075 | |
Projection period (years) | 5 | 5 | 5 | |
Annual discount rate | 6.14% | 8.62% | 9.32% | |
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 | $ 110,091 | $ 115,580 | $ 96,372 | |
Projection period (years) | 5 | 5 | 5 | |
Annual discount rate | 6.14% | 8.62% | 9.32% | |
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 | $ 1,154,955 | |||
Projection period (years) | 5 | |||
Annual discount rate | 6.14% | |||
Annual growth rate | 0.00% |
Goodwill (Details Textual)
Goodwill (Details Textual) $ in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2015USD ($) | |
Disclosure of goodwill [Abstract] | ||||
Impairment loss recognised in profit or loss, goodwill | $ 0 | $ 0 | $ (38,619) | $ (2,244) |
Intangible assets (Details)
Intangible assets (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Intangible assets other than goodwill | $ 1,040,042 | $ 0 | $ 0 |
Customer-Related Intangible Assets [Member] | |||
Intangible assets other than goodwill | 993,871 | 0 | 0 |
Customer-Related Intangible Assets [Member] | Gross carrying amount [member] | |||
Intangible assets other than goodwill | 1,028,747 | 0 | 0 |
Customer-Related Intangible Assets [Member] | Accumulated depreciation, amortisation and impairment [member] | |||
Intangible assets other than goodwill | (34,876) | 0 | 0 |
Brand names [member] | |||
Intangible assets other than goodwill | $ 46,171 |
Other non-current assets (Detai
Other non-current assets (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of other non-current assets [Abstract] | |||
Advances for purchase of property, plant and equipment | $ 331,691 | $ 552,417 | $ 277,277 |
Investments in life insurance (note 3 (l)) | 64,629 | 65,509 | 52,572 |
Security deposits | 16,796 | 15,132 | 13,574 |
Other long-term receivable | 162,337 | 161,690 | 128,169 |
Intangible assets in process | 11,506 | 12,200 | 73,125 |
Other | 56,047 | 58,506 | 49,189 |
Total non-current assets | $ 643,006 | $ 865,454 | $ 593,906 |
Financial debt (Details)
Financial debt (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | $ 2,852,400 | $ 1,444,800 | $ 1,622,850 | |
Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.44 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [1] | 1,376,200 | 0 | 0 |
Loan in the amount of 70,000 thousand dollars, maturing in July 2017, at LIBOR (3) rate plus 0.425 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [1] | 1,376,200 | 0 | 0 |
Denominated in pesos, maturing in January 2018, at TIIE (1) FIRA (2) rate plus 0.60 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [2],[3] | 100,000 | 0 | 0 |
Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.50 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [1] | 0 | 1,444,800 | 0 |
Loan of 85,000 thousand dollars, maturing in June 2016, at LIBOR (3) rate plus 0.48 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [1] | 0 | 0 | 1,462,850 |
Denominated in pesos, maturing in January 2016, at TIIE (1) FIRA (2) rate plus 0.85 percentage points [member] | ||||
Disclosure of financial debt [Line Items] | ||||
Total short-term debt | [2],[3] | $ 0 | $ 0 | $ 160,000 |
[1] | LIBOR= London Interbank Offered Rate | |||
[2] | FIRA (for its acronym in Spanish) = Agriculture Trust Funds | |||
[3] | TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate |
Financial debt (Details) (Paren
Financial debt (Details) (Parenthetical) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Aug. 31, 2012MXN ($) | |
Disclosure of financial debt [Line Items] | ||
Notional amount | $ 5,000,000 | |
Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.44 percentage points [member] | ||
Disclosure of financial debt [Line Items] | ||
Notional amount | $ 70,000 | |
Borrowings, maturity | June 2,017 | |
Borrowings, interest rate basis | LIBOR rate plus 0.44 percentage points | |
Loan in the amount of 70,000 thousand dollars, maturing in July 2017, at LIBOR (3) rate plus 0.425 percentage points [member] | ||
Disclosure of financial debt [Line Items] | ||
Notional amount | $ 70,000 | |
Borrowings, maturity | July 2,017 | |
Borrowings, interest rate basis | LIBOR rate plus 0.425 percentage points | |
Denominated in pesos, maturing in January 2018, at TIIE (1) FIRA (2) rate plus 0.60 percentage points [member] | ||
Disclosure of financial debt [Line Items] | ||
Borrowings, interest rate basis | TIIE FIRA rate plus 0.60 percentage points | |
Loan in the amount of 70,000 thousand dollars, maturing in June 2017, at LIBOR (3) rate plus 0.50 percentage points [member] | ||
Disclosure of financial debt [Line Items] | ||
Notional amount | $ 70,000 | |
Borrowings, maturity | June 2,017 | |
Borrowings, interest rate basis | LIBOR rate plus 0.50 percentage points | |
Loan of 85,000 thousand dollars, maturing in June 2016, at LIBOR (3) rate plus 0.48 percentage points [member] | ||
Disclosure of financial debt [Line Items] | ||
Notional amount | $ 85,000 | |
Borrowings, interest rate basis | LIBOR rate plus 0.48 percentage points | |
Denominated in pesos, maturing in January 2016, at TIIE (1) FIRA (2) rate plus 0.85 percentage points [member] | ||
Disclosure of financial debt [Line Items] | ||
Borrowings, maturity | January 2,016 | |
Borrowings, interest rate basis | TIIE FIRA rate plus 0.85 percentage points |
Financial debt (Details 1)
Financial debt (Details 1) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||
Disclosure of financial debt [Line Items] | ||||||
Total Long-term debt | $ 2,396,624 | $ 2,603,137 | $ 2,504,160 | |||
Less current maturities | (842,651) | (1,652,725) | (9,033) | |||
Long-term debt, excluding current maturities | 1,553,973 | 950,412 | 2,495,127 | |||
Denominated in pesos, maturing in September 2017, at TIIE (1) rates plus 0.63 percentage points [member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Total Long-term debt | 98,000 | [1] | 100,000 | [1] | ||
Denominated in pesos, maturing in 2017 and 2018, at TIIE (1) FIRA (2) rates less 0.25 percentage points [member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Total Long-term debt | [1],[2] | 553,651 | 603,739 | 603,871 | ||
Denominated in pesos, maturing in 2018, at TIIE (1) FIRA (2) rates less 0.60 percentage points [member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Total Long-term debt | [1],[3] | 289,000 | 293,400 | 297,800 | ||
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],[3] | 53,973 | 53,978 | 0 | ||
Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.50 percentage points [member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Total Long-term debt | [1],[3] | 54,000 | 0 | |||
Denominated in pesos, maturing in 2015 and 2016, at TIIE (1) plus 1.00 percentage points [member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Total Long-term debt | [1] | 0 | 2,489 | |||
Debt securities (subsection (d)) [member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Total Long-term debt | 0 | 1,500,000 | 1,500,000 | |||
Debt securities (subsection (d)) [member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Total Long-term debt | $ 1,500,000 | $ 0 | $ 0 | |||
[1] | TIIE (for its acronym in Spanish) = Interbank Equilibrium Rate | |||||
[2] | FIRA (for its acronym in Spanish) = Agriculture Trust Funds | |||||
[3] | FIRA (for its acronym in Spanish) = Trust Established in Relation to Agriculture |
Financial debt (Details 1) (Par
Financial debt (Details 1) (Parenthetical) | 12 Months Ended |
Dec. 31, 2017 | |
Denominated in pesos, maturing in September 2017, at TIIE (1) rates plus 0.63 percentage points [member] | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | September 2,017 |
Denominated in pesos, maturing in 2017 and 2018, at TIIE (1) FIRA (2) rates less 0.25 percentage points [member] | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | 2017 and 2018 |
Denominated in pesos, maturing in 2018, at TIIE (1) FIRA (2) rates less 0.60 percentage points [member] | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | 2,018 |
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 | 2,019 |
Denominated in pesos, maturing in 2019, at TIIE (1) FIRA (2) rates plus 0.50 percentage points [member] | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | 2,019 |
Denominated in pesos, maturing in 2015 and 2016, at TIIE (1) plus 1.00 percentage points [member] | |
Disclosure of financial debt [Line Items] | |
Borrowings, maturity | 2015 and 2016 |
Financial debt (Details 2)
Financial debt (Details 2) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of financial debt [Line Items] | |||
Non-current portion of non-current borrowings | $ 1,553,973 | $ 950,412 | $ 2,495,127 |
2019 [member] | |||
Disclosure of financial debt [Line Items] | |||
Non-current portion of non-current borrowings | 53,973 | ||
2022 [member] | |||
Disclosure of financial debt [Line Items] | |||
Non-current portion of non-current borrowings | $ 1,500,000 |
Financial debt (Details 3)
Financial debt (Details 3) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial debt [Abstract] | |||
Begining Balance | $ 4,047,937 | ||
Changes that represent cash flows | |||
Proceeds from borrowings | 5,378,915 | $ 2,320,500 | $ 3,903,200 |
Principal payment on loans | 4,246,100 | 2,670,474 | $ 2,231,596 |
Changes that do not represent cash flows | |||
Others | 68,272 | ||
Ending Balance | $ 5,249,024 | $ 4,047,937 |
Financial debt (Details Textual
Financial debt (Details Textual) - MXN ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 25, 2012 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Aug. 25, 2017 | Aug. 31, 2012 | |
Disclosure of financial debt [Line Items] | ||||||
Repayments of non-current borrowings | $ 53,900 | |||||
Non-current portion of non-current borrowings | 1,553,973 | $ 950,412 | $ 2,495,127 | |||
Interest expense on borrowings | $ (188,597) | $ (129,769) | $ (93,964) | |||
Notional amount | $ 5,000,000 | |||||
Debt securities, number | 15,000,000 | 15,000,000 | ||||
Debt securities, par value | $ 100 | $ 100 | ||||
Debt securities, term | 5 years | |||||
Pesos denominated short term loans [Member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Borrowings, interest rate | 8.06% | 4.17% | ||||
Debt instruments issued | $ 1,500,000 | $ 1,500,000 | ||||
Pesos denominated short term loans [Member] | Weighted Average [Member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Borrowings, interest rate | 8.06% | 3.13% | ||||
Dollar denominated short term loans [Member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Borrowings, interest rate | 1.57% | 1.05% | 0.83% | |||
Dollar denominated short term loans [Member] | Weighted Average [Member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Borrowings, interest rate | 1.22% | 1.04% | 1.05% | |||
Long term loans [Member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Borrowings, interest rate | 7.48% | 5.63% | 3.56% | |||
Long term loans [Member] | Weighted Average [Member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Borrowings, interest rate | 7.72% | 4.04% | 3.07% | |||
Unused lines of credit facility [Member] | ||||||
Disclosure of financial debt [Line Items] | ||||||
Non-current portion of non-current borrowings | $ 7,031,813 | $ 5,551,263 | $ 6,156,229 |
Trade accounts and other acc111
Trade accounts and other accounts payable (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of trade accounts and other accounts payables [Abstract] | |||
Trade payables | $ 3,684,220 | $ 3,646,410 | $ 3,800,407 |
Sundry creditors and expenses payable | 479,223 | 448,679 | 288,582 |
Provisions | 103,474 | 105,434 | 202,303 |
Statutory employee profit sharing | 42,940 | 42,134 | 31,730 |
Retained payroll taxes and other local taxes | 241,739 | 214,558 | 197,806 |
Direct employee benefits | 171,784 | 76,721 | 72,898 |
Interest payable | 16,904 | 11,160 | 3,306 |
Others | 82 | 81 | 71 |
Trade and other current payables | $ 4,740,366 | $ 4,545,177 | $ 4,597,103 |
Trade accounts and other acc112
Trade accounts and other accounts payable (Details Textual) $ in Thousands, $ in Thousands | Dec. 31, 2017MXN ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2015USD ($) |
Disclosure of trade accounts and other accounts payables [Abstract] | ||||||
Provisions | $ 39,320 | $ 2,000 | $ 41,280 | $ 2,000 | $ 51,630 | $ 3,000 |
Transactions and balances wi113
Transactions and balances with related parties (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of transactions and balances with related parties [Abstract] | |||
Compensation | $ 56,201 | $ 53,531 | $ 42,295 |
Transactions and balances wi114
Transactions and balances with related parties (Details 1) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | $ 48,367 | $ 43,708 | $ 33,381 |
Amounts receivable, related parties transactions | 326 | 148,855 | 194,522 |
Amounts payable, related party transactions | 55,252 | 189,966 | 165,628 |
Vimifos, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 47,344 | 41,715 | 32,827 |
Amounts receivable, related parties transactions | 326 | 4,261 | 5,447 |
Purchases of goods, related party transactions | 392,226 | 554,282 | 477,920 |
Amounts payable, related party transactions | 12,830 | 126,396 | 91,982 |
Frescopack, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 10 | 66 | 0 |
Amounts receivable, related parties transactions | 0 | 32 | 0 |
Purchases of goods, related party transactions | 179,357 | 137,752 | 181,802 |
Amounts payable, related party transactions | 29,537 | 35,931 | 37,827 |
Maquinaria agricola, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 64 | 1,898 | 4,074 |
Purchases of property and other assets, related party transactions | 793 | 34,446 | 41,947 |
Autos y accesorios, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 0 | 0 | 419 |
Amounts receivable, related parties transactions | 0 | 0 | 0 |
Amounts payable, related party transactions | 57 | 1,985 | 3,364 |
Purchases of property and other assets, related party transactions | 24,645 | 40,575 | 29,510 |
Alfonso R. bours, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 95 | 94 | 93 |
Purchases of property and other assets, related party transactions | 428 | 394 | 526 |
Taxis aereos del noroeste, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Revenue from sale of goods, related party transactions | 1,013 | 1,927 | 135 |
Amounts receivable, related parties transactions | 0 | 144,562 | 189,075 |
Amounts payable, related party transactions | 68 | 474 | 300 |
Leases as lessee, related party transactions | 7,854 | 7,739 | 7,874 |
Pulmex 2000, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Purchases of goods, related party transactions | 26,700 | 41,122 | 42,263 |
Amounts payable, related party transactions | 8,138 | 7,528 | 16,181 |
Qualyplast, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Purchases of goods, related party transactions | 95 | 193 | 237 |
Amounts payable, related party transactions | 0 | 64 | 158 |
Llantas y Accesorios, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 4,207 | 3,449 | 2,732 |
Purchases of property and other assets, related party transactions | 35,225 | 29,457 | 29,269 |
Autos y Tractores de Culiacan, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 79 | 5,298 | 3,100 |
Purchases of property and other assets, related party transactions | 14,037 | 39,504 | 54,853 |
Camiones y Tractocamiones de Sonora, S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 172 | 6,137 | 5,815 |
Purchases of property and other assets, related party transactions | 85,448 | 153,802 | 69,779 |
Agencia MX-5, S.A de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 4 | 2 | 0 |
Purchases of property and other assets, related party transactions | 15 | 25 | 1 |
Cajeme Motors S.A. de C.V. [Member] | |||
Revenue [abstract] | |||
Amounts payable, related party transactions | 1 | 710 | 2 |
Purchases of property and other assets, related party transactions | $ 29 | $ 7,974 | $ 6,632 |
Transactions and balances wi115
Transactions and balances with related parties (Details Textual) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of transactions and balances with related parties [Line Items] | |||
Amounts receivable, related party transactions | $ 326 | $ 148,855 | $ 194,522 |
Taxis aereos del noroeste, S.A. de C.V. [Member] | |||
Disclosure of transactions and balances with related parties [Line Items] | |||
Amounts receivable, related party transactions | $ 0 | 144,562 | 189,075 |
Taxis aereos del noroeste, S.A. de C.V. [Member] | Loans and receivables, category [member] | |||
Disclosure of transactions and balances with related parties [Line Items] | |||
Amounts receivable, related party transactions | $ 144,562 | $ 189,075 |
Income Tax (Details)
Income Tax (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Income Tax [Line Items] | |||
Total ISR expense | $ 1,084,444 | $ 1,643,433 | $ 1,680,560 |
Operation in Mexico [member] | |||
Disclosure of Income Tax [Line Items] | |||
Current ISR | 1,512,721 | 1,215,171 | 1,291,536 |
Deferred ISR | (157,646) | 264,086 | 146,595 |
Total ISR expense | 1,355,075 | 1,479,257 | 1,438,131 |
Foreign operation [member] | |||
Disclosure of Income Tax [Line Items] | |||
Current ISR | 198,813 | 45,358 | 196,954 |
Deferred ISR | (469,444) | 118,818 | 45,475 |
Total ISR expense | $ 1,084,444 | $ 1,643,433 | $ 1,680,560 |
Income Tax (Details 1)
Income Tax (Details 1) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Income Tax [Abstract] | |||
Expected expense (ISR) | $ 1,811,667 | $ 1,678,379 | $ 1,650,025 |
Expected expense (Percentage) | 30.00% | 30.00% | 30.00% |
Increase (decrease) resulting from: | |||
Net effects of inflation (ISR) | $ (329,516) | $ (144,611) | $ (87,322) |
Net effects of inflation (Percentage) | (5.00%) | (2.00%) | (2.00%) |
(Non-taxable income) Non-deductible expenses (ISR) | $ 88,330 | $ 14,550 | $ (4,882) |
(Non-taxable income) Non-deductible expenses (Percentage) | 1.00% | 0.00% | (0.00%) |
Effect of rate difference of foreign subsidiary (ISR) | $ 702 | $ 21,979 | $ 57,103 |
Effect of rate difference of foreign subsidiary (Percentage) | 0.00% | 0.00% | 1.00% |
Effect from non-deductible employee benefits (ISR) | $ 83,953 | $ 71,868 | $ 74,173 |
Effect from non-deductible employee benefits (Percentage) | 1.00% | 1.00% | 1.00% |
Effect of change of income tax rate in the United States of America (ISR) | $ (443,104) | $ 0 | $ 0 |
Effect of change of income tax rate in the United States of America (Percentage) | (7.00%) | 0.00% | 0.00% |
Cancellation of loss by acquisition (ISR) | $ (129,036) | ||
Cancellation of loss by acquisition (Percentage) | (2.00%) | ||
Other (ISR) | $ 1,448 | $ 1,268 | $ (8,537) |
Other (Percentage) | 0.00% | 0.00% | 0.00% |
Income tax expense (ISR) | $ 1,084,444 | $ 1,643,433 | $ 1,680,560 |
Income tax expense (Percentage) | 18.00% | 29.00% | 30.00% |
Income Tax (Details 2)
Income Tax (Details 2) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets | |||
Deferred tax assets | $ 80,670 | $ 60,132 | $ 54,127 |
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 3,843,379 | 3,912,575 | 3,369,036 |
Net deferred tax liability | 3,843,379 | 3,912,575 | 3,369,036 |
BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 81,865 | 60,266 | 54,221 |
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 1,195 | 134 | 94 |
Net deferred tax assets | 80,670 | 60,132 | 54,127 |
Accounts payables [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 1,170,771 | 964,676 | 1,093,145 |
Accounts payables [Member] | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 16,404 | 831 | 764 |
Employee benefits [Member] | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 45,519 | 42,221 | 32,572 |
PTU payable [Member] | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 12,917 | 12,700 | 9,516 |
Accounts receivables [Member] | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 421,191 | 438,146 | 382,585 |
Accounts receivables [Member] | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 0 | 0 | 404 |
Tax loss carryforwards [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 22,013 | 676 | 1,081 |
Tax loss carryforwards [Member] | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 0 | 2,760 | 10,236 |
Property, plant and equipments [Member] | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 2,428,358 | 2,566,002 | 2,356,509 |
Property, plant and equipments [Member] | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 0 | 0 | 490 |
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 59 | 82 | 0 |
Prepaid expenses [Member] | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 392,800 | 302,958 | 353,166 |
Prepaid expenses [Member] | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 1,136 | 52 | 94 |
Other provision [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 54,020 | 24,049 | 6,606 |
Other provision [Member] | BSACV [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 7,025 | 1,754 | 239 |
Goodwill in deferred tax assets [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 7,562 | 19,846 | 22,326 |
Derivative financial instruments [Member] | |||
Deferred tax assets | |||
Deferred tax assets | 0 | 0 | 859 |
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | 253,898 | 1,826 | 0 |
Inventories in deferred tax liabilities [Member] | |||
Deferred tax liabilities | |||
Deferred Tax Liabilities, Net | $ 1,601,498 | $ 1,612,890 | $ 1,400,793 |
Income Tax (Details 3)
Income Tax (Details 3) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Income Tax [Abstract] | |||
Recoverable tax on assets | $ 0 | $ 0 | $ 1,774 |
Total | $ 0 | $ 0 | $ 1,774 |
Income Tax (Details 4)
Income Tax (Details 4) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | $ 3,852,443 | $ 3,314,909 | $ 3,032,819 |
Recognized in profit and loss | (627,090) | 382,904 | 192,070 |
Acquired or/ Recognized directly in equity | 537,356 | 154,630 | 90,020 |
Balance at December 31 | 3,762,709 | 3,852,443 | 3,314,909 |
Accounts payables [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | (965,507) | (1,093,909) | (1,125,260) |
Recognized in profit and loss | (223,640) | 134,658 | 35,489 |
Acquired or/ Recognized directly in equity | 1,972 | (6,256) | (4,138) |
Balance at December 31 | (1,187,175) | (965,507) | (1,093,909) |
Employee benefits [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | (42,221) | (32,572) | (21,515) |
Recognized in profit and loss | 1,915 | (14,115) | (3,274) |
Acquired or/ Recognized directly in equity | (5,213) | 4,466 | (7,783) |
Balance at December 31 | (45,519) | (42,221) | (32,572) |
PTU payable [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | (12,700) | (9,516) | (6,800) |
Recognized in profit and loss | (217) | (3,184) | (2,716) |
Acquired or/ Recognized directly in equity | 0 | 0 | 0 |
Balance at December 31 | (12,917) | (12,700) | (9,516) |
Tax loss carryforwards [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | (3,436) | (11,317) | (25,455) |
Recognized in profit and loss | (18,577) | 7,881 | 14,389 |
Acquired or/ Recognized directly in equity | 0 | 0 | (251) |
Balance at December 31 | (22,013) | (3,436) | (11,317) |
Other provision [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | (25,803) | (6,846) | (16,101) |
Recognized in profit and loss | (35,577) | (18,200) | 9,379 |
Acquired or/ Recognized directly in equity | 335 | (757) | (124) |
Balance at December 31 | (61,045) | (25,803) | (6,846) |
Goodwill [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | (19,846) | (22,326) | 0 |
Recognized in profit and loss | 10,895 | 6,272 | (20,588) |
Acquired or/ Recognized directly in equity | 1,389 | (3,792) | (1,738) |
Balance at December 31 | (7,562) | (19,846) | (22,326) |
Inventories [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | 1,612,890 | 1,400,793 | 1,188,259 |
Recognized in profit and loss | (82,523) | 167,441 | 187,852 |
Acquired or/ Recognized directly in equity | 71,131 | 44,656 | 24,682 |
Balance at December 31 | 1,601,498 | 1,612,890 | 1,400,793 |
Accounts receivables [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | 438,146 | 382,182 | 410,870 |
Recognized in profit and loss | (16,955) | 55,964 | (28,688) |
Acquired or/ Recognized directly in equity | 0 | 0 | 0 |
Balance at December 31 | 421,191 | 438,146 | 382,182 |
Property, plant and equipments [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | 2,566,084 | 2,356,019 | 2,365,620 |
Recognized in profit and loss | (351,511) | 93,752 | (88,973) |
Acquired or/ Recognized directly in equity | 213,844 | 116,313 | 79,372 |
Balance at December 31 | 2,428,417 | 2,566,084 | 2,356,019 |
Prepaid expenses [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | 303,010 | 353,260 | 257,329 |
Recognized in profit and loss | 90,926 | (50,250) | 95,931 |
Acquired or/ Recognized directly in equity | 0 | 0 | 0 |
Balance at December 31 | 393,936 | 303,010 | 353,260 |
Derivative financial instruments [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | 1,826 | (859) | 5,872 |
Recognized in profit and loss | (1,826) | 2,685 | (6,731) |
Acquired or/ Recognized directly in equity | 0 | 0 | 0 |
Balance at December 31 | 0 | 1,826 | $ (859) |
Intangible assets in deferred tax assets [Member] | |||
Disclosure of Income Tax [Line Items] | |||
Balance at January 1 | 0 | ||
Recognized in profit and loss | 0 | ||
Acquired or/ Recognized directly in equity | 253,898 | ||
Balance at December 31 | $ 253,898 | $ 0 |
Income Tax (Details 5)
Income Tax (Details 5) - 2017 $ in Thousands | 12 Months Ended |
Dec. 31, 2017MXN ($) | |
Disclosure of Income Tax [Line Items] | |
Tax loss carryforwards | $ 73,538 |
Year of expiration / maturity | 2,027 |
Income Tax (Details Textual)
Income Tax (Details Textual) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Income Tax [Line Items] | ||||
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 | $ 2,587,954 | $ 1,962,545 | ||
Scenario plan for tax [Member] | ||||
Disclosure of Income Tax [Line Items] | ||||
Applicable tax rate | 21.00% | |||
Country of domicile [member] | ||||
Disclosure of Income Tax [Line Items] | ||||
Applicable tax rate | 30.00% | |||
Foreign countries [member] | ||||
Disclosure of Income Tax [Line Items] | ||||
Applicable tax rate | 38.79% |
Employee benefits (Details)
Employee benefits (Details) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of Employee benefits [Line Items] | ||||
Total present value of benefit obligations (PBO) | $ 512,210 | $ 462,554 | $ 447,099 | |
Plan assets at fair value | (259,245) | (267,535) | (286,881) | $ (314,804) |
Projected liability, net | 252,965 | 195,019 | 160,218 | |
Present value of unfunded obligations | ||||
Disclosure of Employee benefits [Line Items] | ||||
Total present value of benefit obligations (PBO) | 252,965 | 195,019 | 160,218 | |
Present value of funded obligations | ||||
Disclosure of Employee benefits [Line Items] | ||||
Total present value of benefit obligations (PBO) | $ 259,245 | $ 267,535 | $ 286,881 |
Employee benefits (Details 1)
Employee benefits (Details 1) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Employee benefits [Line Items] | |||
Composition Rate of the plan’s assets | 100.00% | 100.00% | 100.00% |
Fixed incomes securities [Member] | |||
Disclosure of Employee benefits [Line Items] | |||
Actual Rate Of Return Of Plan's Assets | 7.18% | 7.16% | 1.25% |
Composition Rate of the plan’s assets | 61.00% | 64.00% | 60.00% |
Variable income securities [Member] | |||
Disclosure of Employee benefits [Line Items] | |||
Actual Rate Of Return Of Plan's Assets | 12.78% | 10.07% | 4.87% |
Composition Rate of the plan’s assets | 39.00% | 36.00% | 40.00% |
Employee benefits (Details 2)
Employee benefits (Details 2) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Employee benefits [Line Items] | |||
Benefits paid by the plan | $ 17,049 | $ 9,457 | $ 10,894 |
Service cost | 28,968 | 29,604 | 26,836 |
Interest cost | 16,828 | 9,207 | 6,702 |
Actuarial (gains) losses recognized in other comprehensive income | (3,919) | (9,939) | (17,743) |
Present value of defined benefit obligation [member] | |||
Disclosure of Employee benefits [Line Items] | |||
PBO as at January 1 | 462,554 | 447,099 | 405,703 |
Benefits paid by the plan | (32,940) | (26,031) | (25,244) |
Service cost | 28,968 | 29,604 | 26,836 |
Interest cost | 40,170 | 34,857 | 31,603 |
Actuarial (gains) losses recognized in other comprehensive income | 13,458 | (24,827) | 8,201 |
Past service cost - plan amendments | 0 | 1,852 | 0 |
PBO as at December 31 | $ 512,210 | $ 462,554 | $ 447,099 |
Employee benefits (Details 3)
Employee benefits (Details 3) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Employee benefits [Line Items] | |||
Plan assets at fair value as at January 1 | $ 267,535 | $ 286,881 | $ 314,804 |
Transfer of assets to fund defined contribution benefit plan | (10,664) | (25,600) | (24,187) |
Benefits paid by the plan | (17,049) | (9,457) | (10,894) |
Expected return on plan assets | 23,342 | 25,650 | 24,901 |
Experience adjustments arising from plan liabilities | (3,919) | (9,939) | (17,743) |
Fair value of plan assets as at December 31 | $ 259,245 | $ 267,535 | $ 286,881 |
Employee benefits (Details 4)
Employee benefits (Details 4) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Employee benefits [Line Items] | |||
Current service cost | $ 28,968 | $ 29,604 | $ 26,836 |
Interest cost, net | 16,828 | 9,207 | 6,702 |
Termination benefits expense | $ 45,796 | $ 38,811 | $ 33,538 |
Employee benefits (Details 5)
Employee benefits (Details 5) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Employee benefits [Line Items] | |||
Amount accumulated as at January, 1 | $ (86,774) | $ (97,196) | |
Recognized during the year | (17,377) | 14,888 | $ (25,944) |
Amount accumulated as at December, 31 | (98,938) | (86,774) | (97,196) |
Actuarial gains and (losses) | |||
Disclosure of Employee benefits [Line Items] | |||
Amount accumulated as at January, 1 | (123,240) | (138,128) | (112,184) |
Recognized during the year | (17,377) | 14,888 | (25,944) |
Amount accumulated as at December, 31 | $ (140,617) | $ (123,240) | $ (138,128) |
Employee benefits (Details 6)
Employee benefits (Details 6) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Employee benefits [Abstract] | |||
Discount rate as at December, 31 | 9.25% | 9.00% | 8.00% |
Rate for future salary increases | 4.50% | 4.50% | 4.50% |
Social security wage increase rate | 3.50% | 3.50% | 3.50% |
Employee benefits (Details 7)
Employee benefits (Details 7) - MXN ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Employee benefits [Line Items] | ||||
Present value of defined benefit obligation | $ 512,210 | $ 462,554 | $ 447,099 | |
Plan assets at fair value | (259,245) | (267,535) | (286,881) | $ (314,804) |
Plan deficit | 252,965 | 195,019 | 160,218 | |
Experience adjustments arising from plan assets | (3,919) | (9,939) | (17,743) | |
Present value of defined benefit obligation [member] | ||||
Disclosure of Employee benefits [Line Items] | ||||
Experience adjustments arising from plan assets | 13,458 | (24,827) | 8,201 | |
Plan assets [member] | ||||
Disclosure of Employee benefits [Line Items] | ||||
Experience adjustments arising from plan assets | $ (3,919) | $ (9,939) | $ (17,743) |
Employee benefits (Details 8)
Employee benefits (Details 8) - MXN ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of Employee benefits [Line Items] | |||
Total present value of benefit obligations (PBO) | $ 512,210 | $ 462,554 | $ 447,099 |
Rate increase (+ 1%) | (473,881) | (425,210) | (393,249) |
Rate decrease (- 1%) | (556,262) | (475,546) | (502,439) |
Pension Plan [Member] | |||
Disclosure of Employee benefits [Line Items] | |||
Total present value of benefit obligations (PBO) | (343,485) | (308,885) | (293,443) |
Rate increase (+ 1%) | (314,460) | (280,316) | (248,925) |
Rate decrease (- 1%) | (377,114) | (312,017) | (338,238) |
Seniority Premium [Member] | |||
Disclosure of Employee benefits [Line Items] | |||
Total present value of benefit obligations (PBO) | (99,735) | (93,877) | (93,037) |
Rate increase (+ 1%) | (94,308) | (88,657) | (87,540) |
Rate decrease (- 1%) | (105,810) | (99,733) | (99,240) |
Constructive Obligation [Member] | |||
Disclosure of Employee benefits [Line Items] | |||
Total present value of benefit obligations (PBO) | (68,990) | (59,792) | (60,619) |
Rate increase (+ 1%) | (65,113) | (56,237) | (56,784) |
Rate decrease (- 1%) | $ (73,338) | $ (63,796) | $ (64,961) |
Employee benefits (Details 9)
Employee benefits (Details 9) $ in Thousands | 12 Months Ended |
Dec. 31, 2017MXN ($) | |
Disclosure of Employee benefits [Abstract] | |
2018-2028 | $ 522,581 |
Employee benefits (Details Text
Employee benefits (Details Textual) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017MXN ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2014 | |
Disclosure of Employee benefits [Line Items] | ||||
Description of policy for determining contribution of defined benefit plans that share risks between entities under common control [text block] | 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 | i) from the first to the fifth year of service of 1% of the wage, ii) from the sixth year of services of the employee the contribution of the Company is increased by 1% until it reaches 5%, and iii) for the subsequent years the Company contribution will be the same as the employee’s. | ||
Defined benefit obligation, at present value | $ 512,210 | $ 462,554 | $ 447,099 | |
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 (4 year of services during 2015 and 2014), 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. | |||
Foreign defined benefit plans [member] | ||||
Disclosure of Employee benefits [Line Items] | ||||
Employee benefits expense | $ 0 | 1,597 | 1,481 | |
Foreign defined benefit plans [member] | Bachoco USA, LLC [Member] | ||||
Disclosure of Employee benefits [Line Items] | ||||
Defined Contribution Plan, Employer Contribution Percentage | 50.00% | |||
Employee benefits expense | $ 11,497 | $ 10,909 | $ 8,014 | |
Defined Contribution Plan, Employer Contribution Percentage Per Employee | 2.00% | |||
Description of vesting requirements for share-based payment arrangement | 10 years | |||
Number of other equity instruments outstanding in share-based payment arrangement | 26,000 | 26,000 | 38,000 | |
Defined benefit obligation, at present value | $ 3,378 | $ 3,337 | $ 4,195 | |
Domestic defined benefit plans [member] | ||||
Disclosure of Employee benefits [Line Items] | ||||
Defined Contribution Plan, Employer Contribution Percentage | 2.00% | |||
Employee benefits expense | $ 56,063 | $ 50,047 | $ 46,670 | |
Bottom of range [member] | ||||
Disclosure of Employee benefits [Line Items] | ||||
Defined Contribution Plan, Employer Contribution Percentage | 1.00% | 1.00% | 1.00% | |
Top of range [member] | ||||
Disclosure of Employee benefits [Line Items] | ||||
Defined Contribution Plan, Employer Contribution Percentage | 5.00% | 5.00% |
Costs and expenses by nature (D
Costs and expenses by nature (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of costs and expenses by nature [Abstract] | |||
Cost of sales | $ 47,502,959 | $ 42,635,071 | $ 36,847,508 |
General, selling and administrative expenses | 5,423,379 | 4,847,858 | 4,323,374 |
Total costs and expenses | 52,926,338 | 47,482,929 | 41,170,882 |
Inventory consumption | 37,567,550 | 34,018,493 | 28,877,468 |
Wages and salaries | 6,605,584 | 5,971,382 | 5,127,750 |
Freight | 4,176,508 | 3,712,349 | 3,394,780 |
Maintenance | 1,471,392 | 1,292,763 | 1,166,326 |
Other utility expenses | 1,334,339 | 1,005,570 | 1,020,610 |
Depreciation | 1,075,788 | 925,748 | 769,270 |
Leases | 416,437 | 403,116 | 359,749 |
Other | 278,740 | 153,508 | 454,929 |
Total | $ 52,926,338 | $ 47,482,929 | $ 41,170,882 |
Operating leases (Details)
Operating leases (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Operating leases [Abstract] | |||
Lease expenses | $ 416,437 | $ 403,116 | $ 359,749 |
Operating leases (Details 1)
Operating leases (Details 1) $ in Thousands | Dec. 31, 2017MXN ($) |
2,018 | |
Disclosure of Operating leases [Line Items] | |
Minimum finance lease payments payable | $ 184,253 |
2,019 | |
Disclosure of Operating leases [Line Items] | |
Minimum finance lease payments payable | 140,420 |
2,020 | |
Disclosure of Operating leases [Line Items] | |
Minimum finance lease payments payable | 120,365 |
2,021 | |
Disclosure of Operating leases [Line Items] | |
Minimum finance lease payments payable | 103,316 |
2,022 | |
Disclosure of Operating leases [Line Items] | |
Minimum finance lease payments payable | $ 120,031 |
Stockholders' equity and res137
Stockholders' equity and reserves (Details) | Dec. 31, 2017shares | |
Before the Transaction [Member] | Familiar Trusts [Member] | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | ||
Number of shares outstanding | 496,500,000 | [1] |
Number of shares outstanding Percentage | 82.75% | |
Before the Transaction [Member] | Control Trust [Member] | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | ||
Number of shares outstanding | 312,000,000 | [1] |
Number of shares outstanding Percentage | 52.00% | |
Before the Transaction [Member] | Placement Trust [Member] | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | ||
Number of shares outstanding | 184,500,000 | [1] |
Number of shares outstanding Percentage | 30.75% | |
Before the Transaction [Member] | Floating Position [Member] | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | ||
Number of shares outstanding | 103,500,000 | [1],[2] |
Number of shares outstanding Percentage | 17.25% | [2] |
After the Transaction [Member] | Familiar Trusts [Member] | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | ||
Number of shares outstanding | 439,500,000 | [1] |
Number of shares outstanding Percentage | 73.25% | |
After the Transaction [Member] | Control Trust [Member] | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | ||
Number of shares outstanding | 312,000,000 | [1] |
Number of shares outstanding Percentage | 52.00% | |
After the Transaction [Member] | Placement Trust [Member] | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | ||
Number of shares outstanding | 127,500,000 | [1] |
Number of shares outstanding Percentage | 21.25% | |
After the Transaction [Member] | Floating Position [Member] | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | ||
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 res138
Stockholders' equity and reserves (Details 1) - Renaissance Technologies LLC [Member] shares in Thousands | Dec. 31, 2017shares |
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |
Number of shares outstanding | 6,562,800 |
Number of Shares outstanding Percentage | 1.09% |
Stockholders' equity and res139
Stockholders' equity and reserves (Details 2) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Stockholders’ Equity and Reserves [Abstract] | |||
Balance as at January 1 | 0 | 10,000 | 0 |
(+) Total shares purchased | 20,000 | 100,157 | 677,013 |
(-) Total shares sold | 0 | (110,157) | (667,013) |
Balance as at December 31 | 20,000 | 0 | 10,000 |
Stockholders' equity and res140
Stockholders' equity and reserves (Details 3) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2014 | Dec. 31, 2013 | |
IBSA individual [Member] | |||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||
Current and deferred tax relating to items credited (charged) directly to equity | $ 13,336,742 | $ 5,890,995 | $ 7,445,747 |
IBSA Consolidated [Member] | |||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||
Current and deferred tax relating to items credited (charged) directly to equity | $ 18,993,469 | $ 10,719,930 | $ 8,273,539 |
Stockholders' equity and res141
Stockholders' equity and reserves (Details Textual) - MXN ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Apr. 26, 2017 | Apr. 27, 2016 | Apr. 22, 2015 | Dec. 09, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 1998 | ||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Debt to EBITDA ratio | 2.75 | ||||||||
Number of shares issued | 57,000,000 | ||||||||
Proportion of ownership interests held by non-controlling interests | 9.50% | ||||||||
Capital redemption reserve | $ 494,940 | $ 493,141 | $ 449,641 | $ 777,622 | $ 180,000 | ||||
Sale or issue of treasury shares | $ (1,800) | $ 1,067 | $ 0 | ||||||
Dividend payables | $ 780,000 | $ 780,000 | $ 900,000 | ||||||
Dividends proposed or declared before financial statements authorised for issue but not recognised as distribution to owners per share | $ 1.30 | $ 1.30 | $ 1.50 | ||||||
Reduction in dividend payable | $ 40 | $ 838 | |||||||
Applicable tax rate | 30.00% | 30.00% | 30.00% | ||||||
Tax Bases On Contributions Made By Stockholders Taxfree Refunded | $ 2,834,872 | ||||||||
Increase (decrease) through transfer to statutory reserve, equity | 0 | $ 0 | |||||||
Reserve of remeasurements of defined benefit plans | $ (98,938) | (86,774) | $ (97,196) | ||||||
Treasury shares [member] | |||||||||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Number of shares outstanding | 20,000,000 | ||||||||
Share premium [member] | |||||||||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Sale or issue of treasury shares | $ 0 | 368 | $ 0 | ||||||
Increase (decrease) through transfer to statutory reserve, equity | 0 | 0 | |||||||
Actuarial Remeasurement [Member] | |||||||||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Deferred tax expense (income) | $ 41,679 | $ 36,466 | |||||||
BSACV [Member] | |||||||||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Percentage of entity's revenue | 63.00% | 65.00% | 67.00% | ||||||
Series B registered shares [Member] | |||||||||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Number of shares outstanding | 600,000,000 | 600,000,000 | 600,000,000 | ||||||
Par value per share | $ 1 | $ 1 | $ 1 | ||||||
Familiar Trusts [Member] | Before the Transaction [Member] | |||||||||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Number of shares outstanding | [1] | 496,500,000 | |||||||
Number Of Shares Outstanding Percentage | 82.75% | ||||||||
Top of range [member] | |||||||||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Interest coverage ratio | 3 | ||||||||
Bottom of range [member] | |||||||||
Disclosure of Stockholders’ Equity and Reserves [Line Items] | |||||||||
Interest coverage ratio | 1 | ||||||||
[1] | All Series B shares with voting power. |
Earnings per share (Details Tex
Earnings per share (Details Textual) - MXN ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Earnings per share [Abstract] | |||
Basic and diluted earnings (loss) per share | $ 8.25 | $ 6.58 | $ 6.36 |
Profit (loss), attributable to owners of parent | $ 4,948,242 | $ 3,946,634 | $ 3,812,840 |
Weighted average number of ordinary shares outstanding | 599,997,696 | 599,979,844 | 599,631,383 |
Commitments (Details Textual)
Commitments (Details Textual) $ in Thousands, $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2017MXN ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016MXN ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015MXN ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Disclosure of Commitments [Line Items] | |||||||||
Expense arising from insurance contracts | $ 221,644 | $ 11,721 | $ 120,729 | $ 6,463 | $ 108,360 | $ 6,828 | |||
Borrowings | 2,396,624 | 2,603,137 | 2,504,160 | ||||||
Letters Of credit facility [Member] | Bottom of range [member] | |||||||||
Disclosure of Commitments [Line Items] | |||||||||
Borrowings | 57,014 | 70,176 | 58,514 | $ 2,900 | $ 3,400 | ||||
Bachoco USA, LLC [Member] | |||||||||
Disclosure of Commitments [Line Items] | |||||||||
Provisions for future non-participating benefits | 98,221 | $ 75,873 | $ 69,718 | 4,996 | $ 3,676 | $ 4,051 | |||
Bachoco USA, LLC [Member] | Health care insurance [Member] | |||||||||
Disclosure of Commitments [Line Items] | |||||||||
Liabilities under insurance contracts and reinsurance contracts issued | 6,881 | 350 | |||||||
Bachoco USA, LLC [Member] | Workers payments insurance [Member] | |||||||||
Disclosure of Commitments [Line Items] | |||||||||
Liabilities under insurance contracts and reinsurance contracts issued | $ 19,660 | $ 1,000 |
Financial income and costs (Det
Financial income and costs (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Financial income and costs [Abstract] | |||
Interest income | $ 848,148 | $ 637,977 | $ 482,442 |
Income from interest in accounts receivable | 8,961 | 8,357 | 7,492 |
Foreign exchange gain, net | 230,532 | 297,463 | 95,447 |
Effects of valuation of derivative financial instruments | 0 | 25,377 | 8,464 |
Financial income | 1,087,641 | 969,174 | 593,845 |
Effects of valuation of derivative financial instruments | (84,094) | 0 | 0 |
Interest expense and financial expenses on financial debt | (188,597) | (129,769) | (93,964) |
Commissions and other financial expenses | (67,400) | (42,385) | (53,328) |
Financial costs | (340,091) | (172,154) | (147,292) |
Financial income, net | $ 747,550 | $ 797,020 | $ 446,553 |
Other income (expenses) (Detail
Other income (expenses) (Details) - MXN ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other income | |||
Sale of scrap of biological assets, raw materials, by-products and other | $ 896,840 | $ 1,076,902 | $ 636,386 |
Bargain purchase gain of domestic business acquisition (note 4b) | 87,496 | 0 | 0 |
Total other income | 984,336 | 1,076,902 | 636,386 |
Other expenses | |||
Cost of disposal of biological assets, raw materials, by-products and other | (731,110) | (704,152) | (507,196) |
Other | (85,584) | (112,548) | (133,830) |
Total other expenses | (816,694) | (816,700) | (641,026) |
Total other income (expenses), net | $ 167,642 | $ 260,202 | $ (4,640) |