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INVESTOR CONTACT
Ms. Fiorella Debernardi Baertl
Treasury Manager & IRO
T: (511) 315-0820
F: (511) 315-0867
E-mail: FDebernardiB@alicorp.com.pe
During 1Q13, sales increased 23.2%, while volume rose 19.1% compared to 1Q12, mainly due to
additional sales generated by companies acquired Industrias Teal and Pastificio Santa Amalia and
sales increases in cookies, pasta, edible oils, detergents and fish feed.
Gross Profit totaled S/. 310.3 million during 1Q13, a 16.6% increase compared to the S/. 266.1 million in
1Q12, mainly due an increase in sales volume. Gross Margin was 25.4% in 1Q13, a decline compared to
the 26.8% reported during 1Q12. due to higher costs of raw materials mainly wheat.
EBITDA reached S/. 133.2 million during 1Q13, versus S/. 127.8 million reported for 1Q12. EBITDA
margin declined from 12.9% in 1Q12 to 10.9% in 1Q13, mainly due an increase in fixed and variable
operating expenses. It is important to mention that this quarter reported extraordinary expenses for S/.
11.6 million generated by financial fees, legal advisory, incentives, layoffs, and other acquisition related
fees. Without considering this extraordinary fees EBITDA margin would have been 11.9%. Net income
for the quarter reached S/. 45.3 million, a decline of 56.3%, compared to the S/. 103.7 million reached in
1Q12, the period during which the Company sold Omega 3 Business and generated revenue of S/. 45.1
million. Without considering revenues of Omega 3, Net margin for 1Q12 would be 5.9% vs 1Q13 3.7%.
These results were affected by higher financial expenses and exchange rate loss.
During 1T13, Alicorp was active in innovation, launching 3 new products (a new presentation of Plusbelle
Effect line, a new Obekon cookie, and new variety of Panisuave shortenings), and re-launching 2
products (Zorro and Cristal dish detergents).
On January 4, 2013, Alicorp acquired for S/. 413.9 million, 99.11% of the common stock and 93.68%
investment stock of Industrias Teal S.A., (Teal) Teal manufactures and markets panettones,
chocolates, candies, flour, pastas and cookies under the Sayon brand.
On February 6, 2013, Alicorp purchased, via its Brazilian subsidiary Alicorp do Brasil, a 100% stake in
Pastificio Santa Amlia S.A. (Santa Amalia), a Brazilian company dedicated to the manufacture and
marketing of food consumer goods such as pastas, jelly, chocolate powder, cookies, panettones,
sauces, among others, and distributes personal and home care products for third-parties. Santa Amalia
has over 50 years of experience in the Brazilian market and is a leading pasta player in Brazil and the
number one pasta company in the state of Minas Gerais.
On March 15, 2013, Alicorp successfully issued US$ 450 million in senior unsecured bonds in the
international market. Alicorp received investment grade with stable perspective from the international
risk rating agencies Fitch Ratings (BBB) and Moodys (Baa2).
On March 26, 2013, the Company inaugurated its new balanced food production plant (Nicovita Brand)
in Ecuador.
FINANCIAL INFORMATION
FINANCIAL HIGHLIGHTS
(In millions of Peruvian Nuevos Soles)
1Q2013
1Q2012
YoY
4Q2012
QoQ
1,221.5
991.4
23.2%
1,233.5
Gross Profit
310.3
266.1
16.6%
335.2
Operating Profit
109.0
106.8
2.1%
132.8
EBITDA
133.2
127.8
4.3%
153.7
45.3
103.6
-56.3%
82.6
0.053
0.121
-56.3%
0.097
-0.98%
-7.4%
-17.9%
-13.3%
-45.2%
-45.2%
2,177.8
1,384.3
3,446.7
793.5
163.0
1,969.8
436.1
1,533.8
2,076.6
1,556.7
751.1
1,389.9
805.6
181.4
608.9
79.1
529.8
1,898.8
39.9%
84.3%
148.0%
-1.5%
-10.2%
223.5%
451.3%
189.5%
9.4%
2,234.2
1,270.6
2,175.2
963.6
496.1
1,328.8
581.1
747.7
2,129.6
-2.5%
8.9%
58.5%
-17.7%
-67.1%
48.2%
-25.0%
105.1%
-2.5%
25.4%
8.9%
10.9%
1.57
3.48
1.66
14.5%
26.8%
10.8%
12.9%
2.07
1.12
0.73
18.8%
Net Sales
1.
Net Debt to EBITDA is defined as total financial debt divided by EBITDA for the last twelve months. This EBITDA does
not consider EBITDA generated by acquired companies. If this EBITDA is considered, last twelve months EBITDA shall be S/. 611
million with a Gross Debt / EBITDA ratio of 3.20x
2.
Leverage Ratio is defined as Total Liabilities divided by Shareholders Equity
3.
ROE is defined as last twelve months Net Profit divided by Average Shareholders Equity for the last twelve months
INCOME STATEMENT
Sales
Sales and Gross Margin
(Millons Soles)
Ventas
Margen Bruto
80%
1,190
1,234
1,221
70%
991
1,058
60%
50%
40%
26.8%
27.5%
27.5%
27.2%
25.4%
Argentina.
30%
20%
10%
0%
1T12
Also
3T12
Others
Haiti 9%
Colombia
2%
4%
Brasil
6%
4T12
1T13
International Sales
(Last 12M to March 31)
2T12
Argentina
40%
Chile
17%
Ecuador
23%
Gross Profit
Gross Profit totaled S/. 310.3 million during 1Q13, a 16.6% increase compared to 1Q12, mainly explained by
additional sales generated by companies acquired Industrias Teal and Pastificio Santa Amalia, and growth
in sales volume. Gross Margin decreased slightly from 26.8% to 25.4% YoY due to higher cost of raw
materials, mainly wheat.
Alicorp is well-positioned to offset the volatility of commodity prices due to the following: 1) a raw material
purchasing strategy that allows pricing flexibility, 2) consistent cost and expense efficiency management to
improve Alicorps competitiveness and 3) diversification of the product portfolio to include higher value-added
products,
During 1Q13, Earnings per Share were S/. 0.053, lower than the S/. 0.121 reported in 1Q12 due to the
higher Net Income explained by the Omega 3 divestment.
BALANCE SHEET
Assets
As of March 31, 2013, Total Assets increased S/. 1,274 million, or 29.7%, mainly as a result of an increase
of S/. 1,330.0 million in the Non-Current Assets. The increase in Non-Current Assets was explained mainly
by higher goodwill levels from the acquisitions of Santa Amlia and Teal, among other financial assets.
Cash and Cash Equivalents decreased from S/. 496.1 million as of December2012 to S/. 162.9 million as of
March 2013. Accounts Receivables increased from S/. 751.1 million as of December 2012 to S/. 798.3
million as of March 2013. Collections were made in an average 47.1 days in 1Q13 compared to 26.1days in
4Q13.
Inventories increased from S/. 755.2 million as of December 2012 to S/. 880.1 million as of March 2013,
mainly due to an increase in raw materials purchases as a result of commodity purchasing strategies.
Inventory turnover increased from 82.4 to 88.4 days from 4Q12 to 1Q13, respectively.
Prepaid Expenses increased from S/. 38.4 million as of December2012 to S/. 71.8 million as of March 31,
2013, mainly due to an increase in commissions and loan interest.
Property, Plant and Equipment, increased S/. 172.3 million, from S/. 1,326.8 million as of December 2012 to
S/. 1,499.1 million as of March 2013, mainly due to:1) the construction of the new detergent plant in Lima,
which the Company estimates will be operational during 2013 and 2) the purchase of land in Lima, where the
Company plans to build a new distribution center that is currently in development stage. Additionally, the
acquisitions of Industrias Teal and Santa Amalia also contributed to the increase.
Liabilities
As of March 31,2013, Total Liabilities increased by S/. 1,306.3 million, or 60%. This growth was mainly due
to a S/. 113.6 million increase in total Current Liabilities, and a S/. 1,192.7 million increase in Non-Current
Liabilities.
The variation in Current Liabilities was primarily due to Other Accounts Payable, which increased by S/.
165.7 million (S/. 102.5 million due to Dividends payable, S/ 31.3 million due to a residue payable for the
purchase of the stake of Teal), an increase of S/. 133.1 million in Accounts, a decrease of S/. 145.0 million in
Other Financial Liabilities, as a result of lower imports financing and a decline of
Provisions for Employee Profit Sharing. Accounts Payable turnover decreased from 43.6 days in 4Q12 to
49.2 days in 1Q13.
Non-Current Liabilities increased mainly due to Other Financial Liabilities, which rose S/. 786.1 million, as a
result of: 1) the issuance of international senior unsecured bonds for US$ 450 million, which destined to
reassess the overall risk profile of short and medium-term existing debt, 2) taxes due related to the
acquisition of Santa Amalia for S/. 400.4 million, and 3) a US$ 40.0 million payment to assess the overall risk
profile of Salmofoods medium-term debt. Total Short-Term Debt as of March 31, 2013 totaled S/.
436.1million. The Company operates with revolving credit lines for import financing and working capital
requirements.
Total Financial Long-Term Debt as of March 2013 totaled S/. 1,533.8 million, representing 77.9% of Total
Debt. The currency mix was: 12% in Peruvian Nuevos Soles, 67% in U.S. Dollars, 16% in Brazilian Reals,
with the remaining 4% in Argentine Pesos. The duration of debt averaged 6.9 years (not including short-term
debt). During 1Q13, Alicorp undertook 4 foreign exchange forward agreements in Peru and a total of 4
interest hedges operations. Currently, the majority of bank financings are fixed-rate, either direct or through
derivative transactions. The average rate in 1Q13 for loans in USD was 3.66%.
Equity
Shareholders Equity decreased S/. 32.3 million, or
1.5%, from S/. 2,108.9 million as of December 2012
to S/. 2,076.6 million as of March 2013, mainly due
to transfers from Retained Earnings to Other
Accounts Payable for a total of S/. 102.5 million,
related to the Dividends Payable and Net Profit for
S./ 45.3 million. As of March 2013, ROE reached
14.5%
(this
ratio
considers
the
average
Investing Activities
Cash flow from investing activities for the first three months of 2013 totaled S/. -697.7 million compared to S/.
0.8 million for the same period in 2012. Net cash flow during the period was mainly from 1) acquisition
outflows for S/. 571.1 million and 2) CAPEX investments for S/. 118.1 million (mainly explained by the
acquisition of land in Chilca, improvements in detergent, pasta and sauces plants , as well as the expansion
of the distribution center in Arequipa).
Financing Activities
Cash flow from financing activities for the January to March 2013 period was S/. 312.6 million, compared to
S/. 98.6 million for the same period of 2012 as a result of higher long-term financing activities such as the
issuance of the international senior unsecured bonds as well as the remaining debts pertaining to the
companies acquired.
Existing financing are subject to certain debt restrictions, liquidity, profitability and a minimum Shareholders
Equity. Alicorp is fully compliant with the existing credit requirements, which allows the Company to take on
additional debt, if necessary.
Liquidity and Leverage Ratios
The Companys liquidity ratio decreased from 1.76x as of
December 2012 to 1.57x as of March 2013, mainly due to a
cash decrease. The leverage ratio increased from 1.00x as of
December 2012 to 1.68x as of March, 2013 due to higher
financial debt. In terms of the Gross Debt / EBITDA ratio, this
ratio rose from 2.30x as of December 2012 to 3.5x as of
March 2013 also due to higher financial obligations. The
Company reported a last 12 months EBITDA figure of S/.
565.8 million (without considering the EBITDA generated by
acquired companies Teal and Santa Amalia). Considering
EBITDA generated by acquired companies during the last 12 months Gross Debt/EBITDA ratio is 3.20x
January
2013,
we
launched
new
200mL
10
its
position
and
increase
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About Alicorp
Alicorp is a leading consumer goods company headquartered in Peru, with operations in other Latin
American countries, such as Argentina, Brasil, Colombia, Chile, Ecuador, and exports to 23 other countries.
The Company is focused in three core businesses: (1) Consumer Product Goods (food, personal and home
care products), in Peru, the Mercosur and Andean & Central America regions, (2) Industrial Food Products
(industrial flour, industrial lard, pre-mix and food service products, mainly in Peru), and (3) Animal Nutrition
(fish and shrimp feeding along LATAM). Alicorp employs more than 6,400 employees at its operations in
Peru and international subsidiaries. The Companys common and investment shares are listed on the Lima
Stock Market under the symbol ALICORC1 and ALICORI1, respectively.
Disclaimer
This Press Release may contain forward-looking statements concerning recent acquisitions, its financial and
business impact, managements beliefs and objectives with respect thereto, and managements 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
anticipates, 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 of
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.
Please refer to the Companys Management Discussion & Analysis for the years ended December 31, 2012,
2011 and 2010, as well as other public filings for a description of operations and factors that could impact the
Companys financial results.
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