Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Alicorp — Q1 2023 Earnings Presentation
45 slides from Alicorp Saa's earnings presentation, May 3, 2023
Slide 1: Earnings Call First Quarter 2023
EARNINGS CALL FIRST QUARTER 2023 May 3rd, 2023
Slide 2: Disclaimer
DISCLAIMER This presentation may contain financial or business projections regarding recent acquisitions, their financial or business impact, management expectations and objectives regarding such acquisitions and current management expectations on the operating and financial performance of The Compa
Slide 3: Topics
TOPICS Q1 ‘23 HIGHLIGHTS 1 Q1 ‘23 CONSOLIDATED OPERATING RESULTS 2 Q1 ‘23 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2023 5 APPENDIX 6
Slide 4: Q1 '23 Highlights
Q1 ’23 HIGHLIGHTS
Slide 5: Relevant events
Q1 ‘23 HIGHLIGHTS Relevant events SOCIAL UNREST CONTINUED AND LED TO CONSTANT AND VIOLENT PROTESTS IN THE SOUTHERN REGION OF PERU DURING THE FIRST TWO MONTHS OF 2023 INTERNATIONAL TRADE BETWEEN PERU AND BOLIVIA WAS AFFECTED DUE TO THE BLOCKAGE OF THE BORDER IN DESAGUADERO CLIMATE EVENTS IN SEVERAL P
Slide 6: Challenging economic outlook for Peru
Q1 ‘23 HIGHLIGHTS Challenging economic outlook for Peru MONTHLY INFLATION PERU’S QUARTERLY GDP AND PRIVATE CONSUMPTION GROWTH In % RATE FOR MARCH 2023 4.8 GDP Private Consumption Consumer Confidence Index SHOWS HIGHER 4.6 remained flat for second consecutive month, in pessimistic IMPACT IN NORTHERN
Slide 7: Challenging economic outlook for Bolivia and Ecuador
Q1 ‘23 HIGHLIGHTS Challenging economic outlook for Bolivia and Ecuador BOLIVIA ECUADOR ALTHOUGH ECONOMIC AND POLITICAL GDP AND PRIVATE CONSUMPTION GROWTH1 In % GDP AND PRIVATE CONSUMPTION GROWTH1 In % HEADWINDS, OUR 6.1 10.2 OPERATIONS IN BOLIVIA 5.3 AND ECUADOR REMAIN 3.7 3.2 3.5 3.0 4.2 4.7 RESILI
Slide 8: Key initiatives
Q1 ‘23 HIGHLIGHTS Key initiatives SG&A/Revenue In % ALIGNED TO OUR DESPITE THIS 16.1 15.4 14.7 15.0 CORPORATE CHALLENGING CONTEXT 12.4 CAPABILITIES 10.1 10.3 WE CONTINUE TO STRENGTHEN OUR EFFICIENCIES EFFORTS, Innovation Digital MONITORING 2017 2018 2019 2020 2021 2022 2023 LTM CAREFULLY EXPENSES ▪
Slide 9: Q1 '23 Consolidated Operating Results
Q1 ’23 CONSOLIDATED OPERATING RESULTS
Slide 10: Consolidated revenue Q1 '23 vs Q1 '22
Q1 ‘23 CONSOLIDATED OPERATING RESULTS Consolidated REVENUE – Q1 ‘23 vs. Q1 ‘22 Q1 PERFORMANCE SUMMARY – REVENUE CONSOLIDATED PEN million REVENUE SLIGHTLY DECREASED YoY MAINLY -0.6% EXPLAINED BY LOWER 3,346 3,326 VOLUME SOLD 707 +5.0% 555 102 2,771 EXCLUDING THE 2,639 45 24 -39 CRUSHING BUSINESS 4.7%
Slide 11: Consolidated gross profit Q1 '23 vs Q1 '22
Q1 ‘23 CONSOLIDATED OPERATING RESULTS Consolidated GROSS PROFIT – Q1 ‘23 vs. Q1 ‘22 CONSOLIDATED GROSS Q1 PERFORMANCE SUMMARY – GROSS PROFIT PROFIT DECREASED PEN million MAILY EXPLAINED BY THE PERFORMANCE OF -20.8% 651 OUR CRUSHING -0.7% BUSINESS 159 516 492 11 -6 -4 -4 488 28 EXCLUDING THE CRUSHING
Slide 12: Consolidated EBITDA Q1 '23 vs Q1 '22
Q1 ‘23 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q1 ‘23 vs. Q1 ‘22 Q1 PERFORMANCE SUMMARY – EBITDA PEN million YoY DECREASE IN 417 -43.6% CONSOLIDATED EBITDA IS MAINLY EXPLAINED 150 BY LOWER VOLUME -15.7% SOLD, HIGHER 267 -12 -21 -2 2 -9 235 ADVERTISING EXPENSES 225 10 TO FUEL GROWTH AND
Slide 13: Consolidated net income Q1 '23 vs Q1 '22
Q1 ‘23 CONSOLIDATED OPERATING RESULTS Consolidated NET INCOME – Q1 ‘23 vs. Q1 ‘22 Q1 PERFORMANCE SUMMARY – NET INCOME PEN million NET INCOME 160 -172 -96.1% DECREASED MAINLY EXPLAINED BY LOWER OPERATING PROFIT IN - Crushing: -131 - Other businesses: -41 OUR CRUSHING BUSINESS 4.8% 40 1 6 -14 -6 0.2%
Slide 14: Operating Results by Business
Q1 ‘23 OPERATING RESULTS BY BUSINESS
Slide 15: Consumer Goods Peru: Update on Market Dynamics
Q1 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics OUR REVENUE OUTPERFORMS GDP AND PRIVATE CONSUMER PURCHASING POWER – w/o Inflation CONSUMPTION GROWTH In PEN YoY growth, in % DESPITE GDP AND 24.5 PRIVATE CONSUMPTION 21.5 19.9 17.3 -8.6% SLOWDOWN DUE TO 14.8 -0.3% PR
Slide 16: Consumer Goods Peru: Q1 Performance
Q1 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q1 Performance VOLUME SOLD REVENUE & GROSS MARGIN Q1 ‘23 REVENUE Thousand MT PEN million +5% -9% INCREASED DUE TO PRICE 167 969 1,014 152 ACTIONS, BETTER MIX AND DESIGN-TO-VALUE INITIATIVES DESPITE 24.6% 24.5% VOLUME DECREASE Q1 ’22 Q1 ’23* Q
Slide 17: Consumer Goods Bolivia: Update on Market Dynamics
Q1 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Update on Market Dynamics OUR REVENUE OUTPERFORMS PRIVATE CONSUMPTION CONSUMER CONCERNS IN BOLIVIA GROWTH In % YoY growth, in % 93 6.1 87 Concerns 2022 Concerns 2023 CONSUMER GOODS 5.3 4.7 4.0 BOLIVIA SHOWS 63 61 3.7 3.1 3.2 54 53 55 54 3.
Slide 18: Consumer Goods Bolivia: Q1 Performance
Q1 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q1 Performance REVENUE INCREASED DUE REVENUE & GROSS MARGIN PEN million EBITDA & EBITDA MARGIN PEN million TO HIGHER HOME CARE +5% -7.5 VOLUME, AND PRICE 160 169 7.3 INITIATIVES IN CATEGORIES IMPACTED BY HIGH COMMODITY 19.4% 18.1% 4.6% -0.
Slide 19: Consumer Goods Ecuador: Update on Market Dynamics
Q1 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Update on Market Dynamics OUR REVENUE OUTPERFORMS GDP GROWTH KWP BASKET’S VOLUME DECREASE FOR Q1 ‘23 YoY growth, in % In % 32.8 34.0 -6.3% -6.7% Basket 7.0% 13.4% 5.0% CONSUMER GOODS 21.1 Foods -7.0% -9.1% 4.5% 16.4% ECUADOR SHOWS 15.1 -5.
Slide 20: Consumer Goods Ecuador: Q1 Performance
Q1 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q1 Performance VOLUME SOLD REVENUE & GROSS MARGIN Thousand MT PEN million +39% +30% 9 52 40 REVENUE GROWTH 7 DRIVEN MAINLY BY THE 31.7% INCREASE IN VOLUME 17.0% SOLD Q1 ’22 Q1 ’23 Q1 ’22 Q1 ’23 EBITDA DECREASES YoY GROSS PROFIT PER MT EBIT
Slide 21: B2B: Update on Market Dynamics
Q1 ‘23 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics OUT-OF-HOME OUT-OF-HOME CONSUMERS FAMILY SHOPPING BASKET COST Number of consumers1 PEN per month in a four-member family Index 100=2019 CONSUMPTION CONTINUES 91 +16.4% TO BE IMPACTED BY 75 70 69 76 79 73 895 932 957 992 INFLATIONARY
Slide 22: B2B: Q1 Performance
Q1 ‘23 OPERATING RESULTS BY BUSINESS B2B: Q1 Performance VOLUME SOLD REVENUE & GROSS MARGIN Thousand MT PEN million -18% -6% GROSS PROFIT PER TON 162 134 626 587 INCREASED BACKED ON REVENUE MANAGEMENT INITIATIVES AND 14.4% 14.7% BETTER PRODUCT MIX Q1 ’22 Q1 ’23 Q1 ’22 Q1 ’23 EBITDA DECREASED GROSS P
Slide 23: Aquafeed: Update on Market Dynamics
Q1 ‘23 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics YoY % growth SHRIMP SALMON SHRIMP: +23% EXPORT SHRIMP EXPORTS – ECUADOR SALMON EXPORTS – CHILE VOLUME IN Q1’ 23 DUE TO INVENTORIES IN +81% +43% +29% +3% +37% +35% +32% +29% +6% -2% 2,500 1,747 1,794 2,500 2,000 ECUADOR (DIC ’22
Slide 24: Aquafeed: Q1 Performance
Q1 ‘23 OPERATING RESULTS BY BUSINESS Aquafeed: Q1 Performance VOLUME SOLD REVENUE & GROSS MARGIN Thousand MT USD million -2% +12% 177 173 235 210 REVENUE GROWTH YoY EXPLAINED BY PRICE 14.2% 12.1% ACTIONS IN BOTH Q1 ’22 Q1 ’23 Q1 ’22 Q1 ’23 SHRIMP AND SALMON BUSINESSES GROSS PROFIT PER MT EBITDA & EB
Slide 25: Crushing: Q1 Performance
Q1 ‘23 OPERATING RESULTS BY BUSINESS Crushing: Q1 Performance VOLUME SOLD REVENUE Thousands of MT USD million THE BLOCKAGE OF THE -13% -15% BORDER IN 325 285 233 197 DESAGUADERO 71 71 +0.4% 47 52 +11% AFFECTED OUR VOLUME 254 186 SOLD TO THIRD PARTIES 214 -16% 145 -22% Q1 ’22 Q1 ’23 Q1 ’22 Q1 ’23 EBI
Slide 26: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 27: Leverage and credit rating
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating MATURITY PROFILE AS OF MARCH 20231 PEN million CONSERVATIVE DEBT TOTAL CASH 1,210 1,202 1,133 MANAGEMENT WITH 825 855 854 492 PEN 1,210 million 860 148 143 448 INVESTMENT GRADE 506 655 663 609 158 234 256 216 RATINGS DEBT COVERAGE1,
Slide 28: Leverage
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage INDEBTEDNESS EVOLUTION Net Debt / EBITDA1 PEN million 8,000 4 7,000 3.0x 2.9x 2.6x 2.5x 2.5x 3 6,000 WE MANAGED TO 5,000 4,000 3,641 4,590 3,974 4,033 4,107 2 PARTIALLY OFFSET OUR 3,000 1 2,000 LOWER EBITDA 1,000 - GENERATION WITH - -1 Q1 '22 Q2 '22
Slide 29: Our View Going Forward
OUR VIEW GOING FORWARD
Slide 30: Our View for 2023: Guidance
OUR VIEW FOR 2023 Guidance REVENUE EBITDA CAPEX LEVERAGE LOW-TO-MID MID SINGLE APPROXIMATELY 2.4X NET DEBT/EBITDA SINGLE DIGIT DIGIT DECREASE USD 76 MM GROWTH EXCLUDING AQUAFEED USD 145 MM INCLUDING AQUAFEED 30
Slide 31: Earnings Call First Quarter 2023
EARNINGS CALL FIRST QUARTER 2023 May 3rd, 2023
Slide 32: Appendix
APPENDIX
Slide 33: Bolivia sum of the parts
Q1 ‘23 OPERATING RESULTS BY BUSINESS Bolivia sum of the parts VOLUME SOLD REVENUE Thousands of MT USD million -12% -12% 347 275 Q1 ’23 RESULTS ARE 71 308 47 241 71 52 DRIVEN BY THE LOWER +0.4% +11% VOLUME SOLD OF OUR 254 214 -16% 186 145 -22% CRUSHING UNIT +5% 42 44 EXPLAINED BY +1.4% 22 23 Q1 ’22 Q
Slide 34: CG: Q1 '23 Performance
APPENDIX CG: Q1 ‘23 PERFORMANCE
Slide 35: Consumer Goods: Q1 Performance
Q1 ‘23 OPERATING RESULTS BY BUSINESS Consumer Goods: Q1 Performance VOLUME SOLD REVENUE & GROSS MARGIN Thousands of MT PEN million -6% 6% 205 193 1,216 1,285 INCREASE IN REVENUE DRIVEN BY PRICE ACTIONS ACROSS ALL 23.7% 22.8% GEOGRAPHIES Q1 ’22 Q1’23 Q1 ’22 Q1’23 EBITDA DECREASES GROSS PROFIT PER MT
Slide 36: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 37: Working capital – Cash conversion cycle
SOLID LIQUIDITY AND STRONG BALANCE SHEET Working capital – Cash conversion cycle (CCC) WORKING CAPITAL1,2 Days THE INCREASE IN DAYS OF 130 133 127 INVENTORY AND 124 124 Accounts Payable 3 RECEIVABLES WAS PARTIALLY OFSSET BY 107 107 109 110 112 Inventories SEVERAL WORKING CAPITAL INITIATIVES THAT MAI
Slide 38: Debt Breakdown
APPENDIX Debt Breakdown TOTAL DEBT1 DEC ‘21 DEC ‘22 MAR ‘23 S/ 5,245MM S/ 4,973MM S/ 5,317MM 7.5% 32.9% 31.5% 7.2% International Bonds 6.3% By Source1 Local Bonds 34.3% 30.7% Working Capital Debt 2.9% 16.0% LT Bank Debt 26.5% 32.7% Leases (IFRS 16) 5.3% 24.3% 22.2% 19.7% 15.0% 22.0% 23.7% 0.2% 0.2%
Slide 39: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO PEN million 1,381 1,518 1,581 1,622 1,440 Alicorp’s financial guidelines aim at: 321 321 318 317 330 1. Maintain investment grade rating 2. Control financial expenses 4.72x 4.97x 5.12x 4.30x 4.36x 3. Match the currency of our deb
Slide 40: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 CAPEX 3 PEN million PEN million 300 7.0 % ▪ Inventory growth of S/ 288 million was mainly explained by the 6.0 % seasonality of our crushing business. 250 ▪ Payables increase of S/ 227 million was principally explained by better 5.0 % co
Slide 41: Cash Flow Build Up
APPENDIX Cash Flow Build Up MAIN DRIVERS OF CASH FLOW EVOLUTION PEN million Cash Flow from Operations Cash Flow used in Investing1 Cash Flow used in Financing S/ -19 S/ -76 S/ 365 3,500 3,000 2,500 2,000 1,500 449 124 1,000 73 11 45 98 76 1,220 1,210 1,210 500 940 940 1,019 921 845 845 0 Net Cash Ca
Slide 42: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1,4 OPERATING & FREE CASH FLOW CONVERSION1,4 (PEN Million) 2021 2022 Q1 2023 2 140% 120% 106% 2 FY 2021 FY 2022 Q1 2023 100% 80% 70% 1,722 60% 40% 90% 40% 46% 1,460 23% 20% 0% 0% 1,009 667 Operating Cash Flow / EBITDA Free Cash Flow / EBITDA 522
Slide 43: Q1 '23 Milestones
APPENDIX Q1 ’23 MILESTONES
Slide 44: Q1 '23 Milestones
APPENDIX Q1 ’23 Milestones PRODUCT RESEARCH & DEVELOPMENT AWARDS & RECOGNITION PATITO AVAL launched of Baby launched new & Kids Detergent presentations in Peru and Softener Portfolio in Bolivia Javier Rota, our country manager in Through “Ollas Que Desarrollan” we joined the Bolivia, was recognized
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