ALICORP S.A.A.: Alicorp Second Quarter 2020 Consolidated Financial Statements

LIMA, PERU / ACCESSWIRE / August 12,2020 / Alicorp S.A.A. (“the Company” or “Alicorp”) (BVL: ALICORC1 and ALICORI1) announced today its unaudited financial results corresponding to the Second Quarter 2020 (Q2 ’20). Financial figures are reported on a consolidated basis and are in accordance with International Financial Reporting Standards (“IFRS”) in nominal Peruvian Soles, based on the following statements, which should be read in conjunction with the Financial Statements and Notes to the Financial Statements published at the Peruvian Securities and Exchange Commission (Superintendencia del Mercado de Valores – SMV).

FINANCIAL HIGHLIGHTS

  • Consolidated Revenue decreased 7.6% YoY in Q2 ’20, while Volume decreased 6.6% YoY, as a result of i) an 8.7% YoY decrease in the Consumer Goods Peru business, due to restrictions in production capacity, ii) B2B (-22.9% YoY), as a result of the closing of restaurants, and iii) Aquafeed (-12.8% YoY), explained by an aggressive competitive environment as lower shrimp prices put pressure on our clients’ cost structures. These effects were paritially offset by growth in i) Consumer Goods International (+8.6% YoY) and ii) Crushing (+3.4% YoY).
  • Gross Profit decreased 9.3% YoY, while Gross Margin decreased 0.4 p.p. compared to Q2 ’19 mainly explained by the impacts of COVID-19 on the top line, as well as i) a change in product mix in our B2B unit, ii) higher COGS related to COVID-19, and iii) higher prices of soybean and palm oil in our Consumer Goods Peru and B2B units.
  • EBITDA decreased 5.3% YoY, mainly explained by the impacts of COVID-19 on the top line, as well as in COGS and SG&A expenses, which resulted in a YoY reduction in EBITDA in our CGP, B2B and Aquafeed business units. These effects were partially offset by a solid performance in our CGI unit, as a result of volume growth across all geographies, in addition to a strong YoY recovery of the Crushing business.
  • Net Income totaled S/ 84 million in Q2 ’20 (-20.3% YoY), explained by i) lower consolidated operating profit, and ii) foreign exchange losses due to higher FX volatility.
  • Earnings per Share (EPS) decreased from S/ 0.122 in Q2 ’19 to S/ 0.096 in Q2 ’20.
  • As of June 2020, Net Debt[1] reached S/ 3,190 million, a S/ 161 million decrease from December 2019, mainly explained by an improvement in our operating cash flows (led by working capital efficiencies). This allowed us to improve our leverage indicators measured by the Net Debt-to-EBITDA ratio, which showed a decrease from 2.41x[2][3] as of December 2019 to 2.21x[4] as of June 2020.

RECENT EVENTS

  • The Company launched/revamped 27 products or lines, 10 in Consumer Goods International, 8 in Consumer Goods Peru, 8 in B2B and 1 in Aquafeed.
  • In the Q2 ’20, Alicorp was recognized by “Consultora Arellano” in its “Marcas 2020” report as one of the Top 10 Top-of-mind brands for peruvian consumers. Moreover, our brands “Don Vittorio”, “Primor”, “AlaCena” and “Nicolini” stood out among the Top 10 most consumed and preferred brands by Peruvians. In addition, our brands “Sapolio”, “Bolivar”, “Opal” and “Patito” stood out among the most consumed and preferred brands in the Home Care platform.

For a full version of ALICORP’s Second Quarter 2020 Earnings Release, please visit:

https://www.alicorp.com.pe/en/investors/financial-information/

Conference Call

Alicorp S.A.A. (BVL: ALICORC1 and ALICORI1)

Second Quarter 2020 Earnings Conference Call

Date: Thursday, August 13, 2020
Time: 12:00 p.m. Eastern Time
11:00 a.m. Lima Time

Presenting for Alicorp:
Mr. Alfredo Perez, Chief Executive Officer
and other members of the senior management team

To access the call, please dial:
From the U.S.: 1-877-830-2576
From Outside the U.S.: +1-785-424-1726
Conference ID: ALICORP

Alicorp’s 2Q20 Results will be accompanied by a webcast presentation
available at: https://webcasts.eqs.com/alicorp20200813/en

INVESTOR RELATIONS CONTACT

Investor Relations Team
T: (511) 315-0800 Ext.444411
E-mail: [email protected]

About Alicorp

Alicorp is a leading Consumer Goods company headquartered in Peru, with operations in other Latin American countries, such as Argentina, Brazil, Bolivia, Chile, Ecuador, and exports to other countries. The Company focuses on four core businesses: (1) Consumer Products (food, personal and home care products), in Peru, Brazil, Bolivia, Argentina, Ecuador, Colombia and Chile, among other countries, (2) B2B Products (industrial flour, industrial lard, pre-mix and food service products), (3) Aquafeed (fish and shrimp feed) and (4) Oilseeds crushing (soybean and sunflower) which is part of the vertically-integrated consumer business in Bolivia. Alicorp has over 7,600 employees in its operations in Peru and international subsidiaries. The Company´s common and investment shares are listed on the Lima Stock Exchange under the ticker symbols ALICORC1 and ALICORI1, respectively.

DISCLAIMER

This Earnings Report may contain forward-looking statements concerning recent acquisitions, its financial and business impact, management’s beliefs and objectives with respect thereto, and management’s current expectations for future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements are all statements other than statements of historical facts. The words “anticipate,” “may,” “can,” “plans,” “believes,” “estimates,” “expects,” “projects,” “intends,” “likely,” “will,” “should,” “to be,” and any similar expressions or other words of similar meaning are intended to identify those assertions as forward-looking statements. It is uncertain whether the events anticipated will transpire, or if they do occur what impact they will have on the results of operations and financial condition of Alicorp or the Consolidated Company. Alicorp does not undertake any obligation to update the forward-looking statements included in this press release to reflect subsequent events or circumstances.

[1] Net Debt is Financial Debt less cash and cash equivalents as of June 2020 and includes the effect of IFRS 16.
[2] Net Debt-to-EBITDA ratio as of December 2019 excludes the effect of LTM impairments for S/ 37 million.
[3] Net Debt-to EBITDA ratio as of December 2019 includes Intradevco in the last 12 months.
[4] Net Debt-to-EBITDA ratio as of June 2020 excludes the effect of LTM impairments for S/ 85 million.

SOURCE: ALICORP S.A.A.

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