Alicorp Fourth Quarter 2016 Consolidated Financial Statements

LIMA, Peru--()--Alicorp S.A.A. (“the Company” or “Alicorp”) (BVL: ALICORC1 and ALICORI1) announced today its unaudited financial results corresponding to the Fourth Quarter 2016 (Q4 16’). 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).

I. FINANCIAL HIGHLIGHTS

  1. Consolidated Revenue amounted to S/ 1,811.2 million (+4.5% YoY), with Volume reaching 463.6 thousand tons (+1.5% YoY). Increase in Revenue is mainly explained by: i) a 3.8% YoY increase in the Consumer Goods Peru division, ii) a 14.2% YoY increase in the fish feed operation as a result of a higher volume in Chile, iii) a 16.1% YoY increase in Revenue in Brazil, mainly due to the appreciation of the Brazilian Real against the Peruvian Sol, iv) a 7.9% YoY increase in the shrimp feed operation due to a change in the revenue mix towards value added products, and v) a 10.0% YoY increase in the Food Service platform. This increase in Revenue was partly offset by a 24.3% YoY decrease in Argentina, mainly due to an adverse macroeconomic environment and the depreciation of the Argentine Peso against the Peruvian Sol.
  2. Revenue and Volume from the Consumer Goods Peru division reached S/ 678.4 million (+3.8% YoY) and 135.9 thousand tons (+1.6% YoY), respectively, during Q4 16’. This increase is mainly explained by growth in our core categories such as detergents, edible oils and pasta. The Company’s brand positioning and Megabrands consolidation strategy resulted in a Revenue increase due to higher value shares in 12 of 18 categories.
  3. In line with Alicorp´s “Megabrands” strategy, during Q4 16’ the Company launched and revamped 11 products (3 Consumer Goods Peru products, 4 Consumer Goods International products, and 4 B2B products). Among these launches were: i) “Blanca Flor” panettone with chocolate chips, and ii) “Negrita” tangerine powder juice.
  4. Gross Margin increased by 1.7 p.p. YoY (30.1% in Q4 16’ versus 28.4% in Q4 15’), while Gross Profit reached S/ 544.9 million, a 10.7% increase compared to the S/ 492.3 million of Q4 15’. Improvement in Gross Profit was mainly due to an efficient branding strategy, lower prices of raw materials, and efficiencies in procurement and manufacturing.
  5. EBITDA amounted to S/ 218.7 million (+13.5% YoY), and EBITDA Margin increased by 1.0 p.p. YoY (12.1% during Q4 16’ versus 11.1% in Q4 15’).
  6. Net Income totaled S/ 80.2 million during Q4 16’, an increase of 42.7% YoY, while Net Margin reached 4.4% (+1.2 p.p.). Higher Net Income is explained by: i) higher operating contribution from the B2B and the Consumer Goods Peru Businesses, and ii) a decrease in FX and interest rates hedging expenses and FX exchange losses. Consequently, Earnings per Share (EPS) increased to S/ 0.095 from S/ 0.062 in Q4 15’.
  7. Cash flow from Operations as of December 2016 was S/ 929.4 million, S/ 151.8 million lower than that generated as of December 2015, mainly explained by an extraordinary cash inflow of S/ 86.1 million, during 2015, associated with commodity hedging activities. Cash Flow for Investing Operations was S/ 103.4 million, compared to S/ 152.2 million during the same period of 2015. CAPEX investments as of December 2016 were S/ 123.8 million.
  8. As of December 2016, Net Debt decreased by S/ 624.2 million versus December 2015, reaching S/ 1,332.9 million. Total Debt was S/ 1,606.4 million as of December 2016 (a decrease of S/ 463.2 million) mainly due to Alicorp’s debt reduction and refinancing program. This was the result of a strong cash flow generation in Peru due to working capital efficiencies, and higher profitability. Net Debt-to-EBITDA ratio decreased from 2.71x as of December 2015 to 1.66x as of December 2016.

For a full version of ALICORP’s Fourth Quarter 2016 Earnings Release, please visit:
https://www.alicorp.com.pe/alicorp-ir/public/financial-information/reportes/conference-calls.html

Conference Call

 

Alicorp S.A.A.

(BVL: ALICORC1 and ALICORI1)

 
Cordially invites you to discuss
Fourth Quarter 2016 Results
 

Date: Friday, February 17, 2017

Time: 11:00 a.m. Eastern Time

11:00 a.m. Lima Time

 
To access the call, please dial:
From the U.S.: 1-800-311-9401
From Outside the U.S.: 1-334-323-7224

Conference ID Number: 68632

 
Alicorp’s 4Q16 Results will be accompanied by a webcast presentation

available at: https://www.webcaster4.com/Webcast/Page/412/19320

 

ABOUT ALICORP

Alicorp is a leading Consumer Goods company headquartered in Peru, with operations in other Latin American countries, such as Argentina, Brazil, Chile, Ecuador, and exports to other countries. The Company focuses on three core businesses: (1) Consumer Products (food, personal and home care products), in Peru, Brazil, Argentina, Ecuador, Colombia and Chile, among other countries, (2) B2B Products (industrial flour, industrial lard, pre-mix and food service products), and (3) Aquaculture (fish and shrimp feeding). 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.

Contacts

Alicorp S.A.A.
Alexander Pendavis, 511-315-0800 Ext.444410
Corporate Finance Director & IRO
Fax: 511-315-0867
apendavish@alicorp.com.pe

Contacts

Alicorp S.A.A.
Alexander Pendavis, 511-315-0800 Ext.444410
Corporate Finance Director & IRO
Fax: 511-315-0867
apendavish@alicorp.com.pe