Alicorp Second Quarter 2019 Consolidated Financial Statements

LIMA, PERU / ACCESSWIRE / July 31, 2019 / Alicorp S.A.A. (“the Company” or “Alicorp”) (BVL:ALICORC1) (BVL:ALICORI1) announced today its unaudited financial results corresponding to the Second Quarter 2019 (Q2 19´). 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). Consolidated statements include i) financial results of the Bolivian acquired companies during Q2 18´ and Q3 18´(“Industrias de Aceite S.A.” or “Fino” and “Sociedad Aceitera del Oriente S.R.L” or “Sao”), and ii) financial results of Intradevco Industrial S.A. or “Intradevco” in January 2019. Financial figures also include i) the effect of the adoption of the International Accounting Standard 29 & 21 (or IAS 29 & 21, Financial Reporting in Hyperinflationary Economies) in Argentina and ii) the adoption of IFRS 16 (Leases standard). Hereafter, references to IAS 29, include the IAS 21 application.


This quarter’s results include two accounting effects that were not considered during Q2 18: i) the adoption of the International Accounting Standard 29 (IAS 29) in Argentina as this is now considered a hyperinflationary economy, and ii) the adoption of International Financial Reporting Standard 16 (IFRS 16) regarding Leases. The Company restated Q2 18´ financial data to comply with IFRS 16. Hence, when necessary, the effect of IAS 29 is excluded in the Q2 19´ results to make a fair comparison in terms of variation and performance. Additionally, it is essential to note that Q2 18´ figures do not include the full financial results of the most recent latest acquisitions: i) Fino and Sao, acquired in May and June 2018, respectively, and ii) Intradevco, acquired in January 2019.

  1. Consolidated Revenue amounted to S/ 2,461 million (+16.0% YoY), while Volume reached 781 thousand tons (+23.8% YoY). Excluding the impact of acquisitions and IAS 29, Organic Revenue amounted to S/ 1,879 million, practically flat compared to Q2 18´. Total Consolidated Revenue reflects growing in Consumer Goods Peru, Consumer Goods International and B2B business but was negatively affected by the Aquafeed business, as a result of i) lower volume sold in the Chilean Salmon feed operation (-S/ 30 million) due to: a) lost tender contracts, as well as b) lower revenue per ton due to a decrease in the cost of raw materials, which translates into lower cost-plus pricing; ii) increased competition and more challenging credit dynamics in Central America (-S/ 8 million), partially offset by the growth of the Ecuadorian shrimp feed operation, supported by the strong momentum in the shrimp market in Ecuador (+S/ 10 million). Quarterly performance for the Consumer Goods and B2B business was resilient, growing 2.1% and 0.7% YoY, respectively under a challenging market environment with a slowing economy.The following categories where the main drivers of growth: i) Canned tuna, ii) Sauces, iii) Pasta, and iv) Detergents in the Consumer Business and i) Nutritional inputs, ii) Oil derivatives,iii) Sauces, and iv) Margarines in B2B.
  2. During Q2 19´, Revenue from the Consumer Goods Peru business reached S/828 million (+22.1% YoY) while Volume reached 181 thousand tons (+30.5% YoY). Excluding Intradevco’s financial figures, Revenue and Volume both grew 2.5% YoY and 3.3% YoY, respectively. Organic growth was supported by a Revenue increase in Canned Tuna (+58.4% YoY), Sauces (+12.5% YoY), Pasta (+3.9% YoY), and Detergents (+1.9% YoY). These results are remarkable if we take into account the current Peruvian market slowdown and how Alicorp has managed to grow in the aforementioned categories despite a stalled consumer market, which was impacted by lower employment levels on a year-to-date basis. Despite this scenario, the Company succeeded in growing /maintaining market share in most relevant categories such as 10 out of 17 categories, specifically: Canned tuna (+6.0 p.p. YoY), Dishwashing soap (+3.1 p.p. YoY), Sauces (+2.3 p.p. YoY), Pasta (+2.0 p.p. YoY), Margarines (+1.5 p.p. YoY) and Detergents (+0.7 p.p. YoY).
  3. Regarding product innovation, during Q2 19´the Company launched or revamped 17 products/lines (10 in Consumer Goods Peru, 6 in Consumer Goods International, and 1 in B2B). Most significantly, these included: the new “Manty delicrem” cheese flavored spread, expanding the breakfast portfolio offering, and two new varieties of the “Alacena” sauce, aiming to enhance the switch from the consumption of homemade sauces into our multi sauces branded portfolio. In the Consumer Goods International division, there were 3 launches in Ecuador, 2 in Argentina and 1 in Brazil. In Ecuador, these launches included new formats & lines in the Pasta and Hair Care category under the “Don Vittorio” and “Plusbelle” brands. In Brazil, we revamped the “Geneo” chocolate brand. In Argentina, we launched a new “Zorro” detergent with stain removers and a new premium “Plusbelle” extension in the Hair Care category. Finally, in B2B we launched new formats under the “Alacena” and “Macbel” brands.
  4. Gross Profit reached S/ 607 million (+17.2% YoY) while Gross Margin was basically flat compared to Q2 18´. Excluding the impact of acquisitions and IAS 29, Gross Margin was 27.8%, an increase of 1.5 p.p. YoY, mainly explained by i) the contribution of higher-margin categories in the Food Service platform and ii) higher profitability our shrimp feed business in Ecuador due to lower cost in raw materials.
  5. EBITDA amounted to S/ 293 million (+6.3% YoY) while EBITDA Margin reached 11.9%, a decrease of 1.1 p.p. compared to Q2 18. Consolidated EBITDA was partially offset by lower margins in Brazil due to constraints to pass through inflation costs to the final prices, and by the inclusion of the low-margin crushing business. Excluding the impact of acquisitions, IAS 29 and non-recurring expenses, EBITDA amounted to S/ 278 million (+2.3% YoY) while EBITDA Margin was 14.8%, increasing 0.4 p.p. YoY. The increase in Organic EBITDA was mainly explained by:i) higher Gross Profit in B2B and Aquafeed businesses, in line with the drop in the cost of commodities and ii) lower marketing expenses mainly in the Consumer Goods Peru business.
  6. Consequently, Net Income totaled S/ 106 million during Q2 19´, (-12.2% YoY), while Net Margin reached 4.3%, (-1.4 p.p. YoY). Earnings per Share (EPS) decreased from S/ 0.141 in Q2 18´ to S/ 0.122 in Q2 19´. Excluding the impact of acquisitions, IAS 29 and non-recurring expenses, Net Income amounted to S/ 156 million (+16.0% YoY), while Net Margin reached 8.3% (+1.2 p.p.). Hence, the organic Earnings per Share (EPS) was S/ 0.181 in Q2 19´.
  7. Cash flow from Operations as of June 2019 was S/ 339 million, S/ 44 million higher than the figure generated in the same period of 2018. The higher Operative Cash Flow was mainly explained by a lower tax payments of S/ 60 million (YoY). Cash Flow used in Investing Operations as of Q2´19 was S/ 1,689 million, compared to S/ 822 million obtained during the same period of 2018. Higher Cash Flow invested was due to Intradevco’s acquisition which amounted to S/ 1,601 million, while CAPEX investments (PP&E) as of Q2 19 were S/ 72 million.
  8. As of June 2019, Net Debt1 increased by S/ 1,837 million compared to December 2018, reaching S/ 4,171 million, mainly reflecting debt incurred undertaken due to Intradevco’s acquisition. Net Debt-to-EBITDA ratio increased from 2.3x as of December 2018 to 3.9x as of June 2019.

For a full version of ALICORP’s Second Quarter 2019 Earnings Release, please visit:

Conference Call

Alicorp S.A.A. (BVL: ALICORC1 and ALICORI1)
Second Quarter 2019 Earnings Conference Call

Date: Tuesday, August 6, 2019
Time: 12:00 p.m. Eastern Time
11:00 a.m. Lima Time

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 Number: ALICORP

Alicorp’s 2Q19 Results will be accompanied by a webcast presentation available at:


Investor Relations Team
Phone: (511) 315-0800 Ext.444411
Fax: (511) 315-0867


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) Aquaculture (fish and shrimp feeding) 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.

SOURCE: Alicorp S.A.A.

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