Fourth Quarter 2015
Consolidated Financial Statements
Revenues totaled S/. 1,733.6 million, a 2.8% increase versus
Q4 14’. Gross Profit amounted to S/. 492.3 million, an
increase of 5.3% YoY. EBITDA reached S/. 192.8 million
while the EBITDA margin was 11.1%. Net Income was to
S/.56.2 million and Net Margin was 3.2%. Total debt was
INVESTOR RELATIONS CONTACT
Alexander Pendavis
Corporate Finance Director & IRO
T: (511) 315-0800 Ext.444410
F: (511) 315-0867
E-mail: [email protected]
reduced by S/.629.6 million, a drop of 23.3% versus
December 2014.
Lima, Peru, February 15, 2016. Alicorp S.A.A. (“the Company” or “Alicorp”) (BVL: ALICORC1 and ALICORI1) announced
today its unaudited financial results corresponding to the Fourth Quarter 2015 (Q4 15’). 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. Revenues increased 2.8% YoY totaling S/. 1,733.6 million, while Volume reached 456.9 thousand tons an increase
of 2.2% YoY. Higher Revenues were mainly driven by a 5.1% YoY increase in Consumer Goods Peru and a 3.7% YoY
increase in the Aquaculture business. For the fourth quarter of 2015, International Revenues reached 39.5% of
Total Revenues due to higher sales mainly in Ecuador and Argentina.
2. In line with Alicorp’s organic growth strategy, during Q4 15’ the Company launched and revamped 10 products
(9 Consumer Goods products and 1 B2B product) and continued to gain market share in most of its core
categories. We launched a new savory cracker under the “Zas” brand, to compete with top players in the savory
crackers category. In the B2B branded products business, we launched a new format (25 kg. package) of the
“Nicolini” branded Industrial Flour, in order to satisfy the volume requirements of traditional Peruvian restaurants.
1
3. Gross Margins increased by 0.7 p.p. (28.4% in Q4 15’ versus 27.7% in Q4 14’), while Gross Profit reached S/.
492.3 million, a 5.3% increase compared to S/. 467.6 million during Q4 14’. This increase in Gross Profit was due
to: i) higher Revenues in the Consumer Goods Peru division, as well as the Aquaculture business, and ii) an
improvement in the profitability of the Consumer Goods business, mainly in Peru and Argentina.
4. EBITDA Margin was 11.1% during Q4 15’ amounting to S/. 192.8 million, compared with S/. -26.0 million in Q4
14’. This was mainly due to an increase of the Gross Margin. Net Income totaled S/. 56.2 million during Q4 15’,
while Net Margin reached 3.2%.
5. In Argentina we continued to restructure and streamline our business. Revenues increased by 6.5% YoY, while
EBITDA increased S/. 32.4 million, from S/. -34.8 million in Q4 14´ to S/. -2.4 million in Q4 15´ (EBITDA Margin of 1.7%). Consequently, improved cash generation coupled with the April 15´ and the September 15’ capital
injections allowed the subsidiary to decrease debt by S/. 212.4 million compared to Q4 14´.
6. In terms of the Financial Strategy, we continue to reduce the exposure to US$ denominated debt in order to
reduce FX volatility. During Q4 15’ the Company offered to purchase, for cash, any and all of its outstanding
3.875% Senior Notes due 2023 (in addition to its January 15’ Tender Offer and the private repurchases during Q2
15’), successfully repurchasing US$ 237.2 million which represented 79.1% of the outstanding notes. Furthermore,
in November we closed a S/. 150 million 3-year loan to refinance our short-term US$ and PEN liabilities.
7. In line with one of our key targets for 2015, the Company reduced its debt by S/. 629.6 million, from S/. 2,699.2
million in Q4 14’ to S/._2,069.6 million in Q4 15’, which translated into a 23.3% reduction. As of December 2015,
short-term debt and dollar-denominated (post hedge) debt decreased to 11.6% and to 11.6% of total debt,
respectively.
2
FINANCIAL INFORMATION
FINANCIAL HIGHLIGHTS
(In millions of Peruvian Soles)
Net Sales
Gross Profit
Operating Profit
EBITDA
Last 12 Months EBITDA
°Net Earnings for the Period
Earnings per Share (Common Shares)
Current Assets
Current Liabilities
Total Liabilities
Working Capital
Cash and Cash Equivalents
Total Financial Net Debt
Total Financial Debt
Short-Term Debt
Long-Term Debt
Shareholders' Equity
RATIOS
Gross Margin
Operating Margin
EBITDA Margin
Current Ratio
Net Debt to EBITDA
Leverage Ratio
Q4 2015
1,733.6
492.3
147.6
192.8
722.5
56.2
0.066
2,418.2
2,073.9
3,990.7
344.3
112.5
1,957.1
2,069.6
514.5
1,555.2
2,223.0
28.4%
8.5%
11.1%
1.17
2.71
1.80
Q4 2014
1,686.4
467.6
-68.1
-26.0
486.0
-183.3
-0.215
2,783.3
2,387.6
4,730.9
395.7
99.5
2,599.7
2,699.2
937.0
1,762.2
2,096.0
YoY
2.8%
5.3%
-316.7%
-841.5%
48.7%
-130.7%
-130.7%
-13.1%
-13.1%
-15.6%
-13.0%
13.1%
-24.7%
-23.3%
-45.1%
-11.7%
6.1%
Q3 2015
1,699.3
500.5
180.6
223.4
503.7
74.3
0.087
2,810.2
1,781.8
4,392.6
1,028.4
111.4
2,317.1
2,428.5
238.1
2,190.4
2,180.4
QoQ
2.0%
-1.6%
-18.3%
-13.7%
43.4%
-24.4%
-24.4%
-13.9%
16.4%
-9.1%
-66.5%
1.0%
-15.5%
-14.8%
116.1%
-29.0%
2.0%
27.7%
2.5%
-4.0% -312.5%
-1.5% -840.0%
1.17
0.0%
5.35 -49.3%
2.26 -20.5%
29.5%
10.6%
13.1%
1.58
4.60
2.01
-3.7%
-19.8%
-15.3%
-25.9%
-41.1%
-10.4%
1. Net Debt to EBITDA is defined as Total Financial Debt minus Cash and Cash Equivalents divided by EBITDA for the last twelve months
2. Leverage Ratio is defined as Total Liabilities divided by Shareholders’ Equity
3
II.
INCOME STATEMENT
Revenues
During Q4 15’, Revenues reached S/. 1,733.6 million, a 2.8%
Revenues and Gross Margin
(PEN Million)
increase YoY. Revenues in Peru increased 2.8% YoY and Volume
increased 2.9% YoY. International Revenues increased 2.8% YoY
1,686
1,509
and International Volume increased 1.1%. The main contributors
1,639
1,699
1,734
to Revenue growth in Q4 15’ YoY were the following categories:
i) detergents (+17.2% YoY), ii) shrimp feed (+4.9% YoY), iii) edible
27.7%
27.5%
28.0%
29.5%
28.4%
Q4 14'
Q1 15'
Q2 15'
Q3 15'
Q4 15'
oils (+7.2% YoY), iv) cereals (+25.7% YoY), v) hair care (+13.1%
YoY) vi) bulk oils (+5.5% YoY), vii) sauces (+6.4% YoY), viii)
beauty soap (+15.7% YoY), ix) fish feed (+2.2% YoY), x) and
laundry soap (+8.9% YoY).
During the quarter, international revenues represented 39.5% of
Total Revenues, explained by higher Revenues generated by the
International Revenues
(Q4 15’)
Aquaculture business in Ecuador and Argentina, which was
offset by lower Revenues in Brazil mainly as a result of currency
depreciation (Revenues in Brazilian Reals increased 16.8% YoY).
Q4 15´ Sales were driven by organic growth supported by: i) a
strategy of new product launches and strengthening of our core
Argentina
21.8%
Chile
22.8%
Brazil
16.6%
Others
7.0%
Ecuador
31.8%
megabrands; ii) the consolidation of distribution networks in the
international Consumer Goods division; iii) larger client base in
the Aquaculture business; and iv) efforts to regain market share in the industrial flour category for the B2B Products.
4
Gross Profit
Gross Profit reached S/. 492.3 million in Q4 15’, representing a 5.3% increase compared to Q4 14’, explained by: i)
higher sales of core categories in Peru in the Consumer Goods Business, ii) higher sales from the Aquaculture business,
iii) lower raw materials costs in Peru, iv) and an increase in the Gross Margin of Argentina. Gross Margin increased by
0.7 p.p., reaching 28.4% during Q4_15’, compared to 27.7% obtained in Q4 14’.
Alicorp has been able to expand Gross Margins in the Consumer Goods business as a result of the following strategies:
i) an active commodities purchasing strategy, which allows us to maintain competitive and flexible pricing across our
categories, ii) consolidation of investments in efficiencies, as well as consolidation of production capacity at the
various different plants (pastas, cookies, detergents and palm oil), optimizing production costs, and iii) the continuous
diversification of our portfolio, with 56 launches and re-launches during the current year, enabling us to enter new
and more profitable market segments.
SG&A Expenses Breakdown (%)
Operating Income and EBITDA
19.1%
19.2%
19.3%
19.3%
20.1%
10.5%
11.1%
10.9%
11.0%
11.4%
Q4 14’. This was explained by a higher Gross Profit, mainly driven by
6.0%
2.6%
5.8%
2.3%
5.7%
2.8%
5.3%
3.1%
5.9%
2.7%
lower raw materials costs in Peru and an increase in the Gross
Q4 14'
Q1 15'
Q2 15'
Q3 15'
Q4 15'
Margin in Argentina. Operating income for Q4 14’ incorporates
Marketing
Operating Income reached S/. 147.6 million (8.5% of Total
Revenues) in Q4 15’, compared to the S/. -68.1 million reported in
Administrative Expenses
Selling Expenses
extraordinary losses from hedging operations for S/. 207.5 million.
Additionally, higher selling and marketing expenses due to storage
Revenues & EBITDA Margin
(PEN Million)
cost as well as one-time expenses related to consulting fees and
1,686
1,639
liability management fees.
1,509
In Q4 15’, earnings before interest, taxes, depreciation and
9.9%
9.6%
Q1 15'
Q2 15'
amortization (EBITDA) reached S/. 192.8 million; EBITDA Margin was
11.1%. EBITDA reported in Q4 14’ was S/. -26.0 million.
1,699
1,734
13.1%
11.1%
Q3 15'
Q4 15'
-1.5%
Q4 14'
5
Net Financial Expenses
During Q4 15’, Net Financial Expenses declined S/. 45.6 million YoY, explained by: i) lower Financial Debt, ii) a decrease
in Financial Expenses in Argentina as a consequence of the capital injections in April 15´ and September 15’, iii) the
Financial Income that resulted from REGULARICE tax benefit program and the refinancing of the loan with BVA Bank in
Brazil, and iv) the Tender Offer which allowed us to repurchase 79.1% the 3.875% Senior Notes due 2023 below par.
During Q4 15’, currency exchange losses reached S/. 13.5 million, a reduction of S/. 21.9 million YoY, explained by the
lower FX exposure to US$ denominated debt and the currency and cash flow hedging strategy.
Losses from currency and interest rate hedging instruments decreased S/. 10.5 million YoY due to the income
generated by the unwinding of the cross currency swap for US$ 225.0 million related to the 3.875% Senior Notes due
2023. This was partly offset by i) the losses generated by the unwinding of the call spread structure for US$ 225.0
million of our 3.875% Senior Notes due 2023 as well as ii) the increase of the temporal value of the call spread
structure.
Net Income
Net Income totaled S/. 56.2 million during Q4 15’, compared to the S/. -183.3 million reported in Q4 14’, affected by
extraordinary hedging losses, which were reported as operating expenses. Net income increase was mainly driven by:
i) a higher operating contribution of Consumer Goods Peru division and the Aquaculture business, ii) a decrease of S/.
10.5 million in the losses from currency and interest rate hedging instruments, iii) a decrease in the net financial
expenses of S/._45.6 million and iv) a decrease of S/. 21.9 million in currency exchange losses. Consequently, Earnings
per Share (EPS) for Q4 15’ reached S/. 0.066, higher than the S/. -0.215 reported during Q4 14’.
6
Results by Business Segment
Consumer Goods
During Q4 15’, Revenues increased 3.3% YoY and Volume increased
Consolidated Consumer Goods
Revenues & EBITDA Margin
(PEN Million)
2.3% YoY. The main contributors to Revenue growth were
detergents, edible oils, hair care, beauty soap, cereals, sauces and
laundry soap categories. Revenues for the Consumer Goods Peru
division increased 5.1% YoY, an outstanding growth despite the
940
slowdown of Peruvian economy. Revenues for Consumer Goods
840
926
967
971
13.8%
13.7%
Q3 15'
Q4 15'
International division decreased 0.1% YoY explained by lower sales
in Brazil as a result of the depreciation of the Brazilian Real versus
11.1%
10.9%
11.9%
Q4 14'
Q1 15'
Q2 15'
the Peruvian Sol. This was partially offset by a 6.5% YoY increase in
Revenues from the operations in Argentina and an increase of 14.5%
YoY in Revenues from our exports operation to countries such as
Ecuador and Bolivia.
Consumer Goods EBITDA reached S/. 132.8 million, a 27.0% increase YoY, due to a higher Gross Margin. Consequently,
the EBITDA Margin strengthened reaching 13.7% during Q4 15’, higher than the 11.1% reported during Q4 14’, mainly
explained by higher profitability in Peru and Argentina.
Revenues and Volume from Consumer Goods Peru reached S/.653.9
Consumer Goods Peru
Revenues & EBITDA Margin
(PEN Million)
million (5.1% higher YoY) and 133.7 thousand tons (4.4% higher
YoY), respectively, during Q4 15’, mainly explained by higher
Revenues in the detergents (+12.5% YoY), edible oils (+7.2% YoY),
cereals (+18.2% YoY) and sauces (+5.9% YoY) categories. The
622
528
592
650
654
significant increase in Revenues was a result of the megabrands
consolidation strategy in Peru, which resulted in higher market
16.6%
14.7%
15.3%
18.0%
16.5%
Q4 14'
Q1 15'
Q2 15'
Q3 15'
Q4 15'
shares in categories such as: detergents (+2.0 p.p. YoY), edible oils
(+2.6 p.p. YoY), laundry soap (+3.0 p.p. YoY), domestic flours (+1.9
p.p. YoY) and red sauces (+6.3 p.p. YoY). The Market Share for the
edible oils category (56.3%) is the highest one ever recorded by Alicorp. EBITDA reached S/. 108.0 million while
EBITDA Margin was 16.5%, a decrease of 0.1 p.p., compared to 16.6% reported in Q4 14’. This was mainly due to an
increase in SG&A which was offset by the lower main raw materials prices.
Revenues from International Consumer Goods Business decreased by 0.1% YoY as a consequence of the currency
7
devaluation experienced in the region. Volume decreased 1.4% YoY as a consequence of the Volume decrease in
Argentina (-14.4% YoY). Despite this, the EBITDA Margin reached 7.8%, an increase of 7.5 p.p. compared to the 0.3%
reported in Q4 14’.
Revenues in Argentina rose by S/. 9.1 million, 6.5% higher YoY,
Consumer Goods International
Revenues & EBITDA Margin
(PEN Million)
driven by higher average prices (+24.5% YoY). Revenues in
Argentine Pesos rose 13.1% YoY. The main contributors to Revenue
growth were the hair care (+20.1% YoY), detergents (+12.6% YoY),
and beauty soap (+9.7% YoY) categories. EBITDA Margin increased
317
333
317
4.6%
5.7%
5.2%
Q1 15'
Q2 15'
Q3 15'
312
317
to -1.7% in Q4 15’ compared to the -24.9% reported in Q4 14’,
mainly due to a higher Gross Margin from the price increases.
Revenues for the Brazilian operation decreased in S/. 16.3 million (-
0.3%
Q4 14'
7.8%
Q4 15'
12.6% YoY) due to the depreciation of the Brazilian Real. Excluding
the currency effect however, operations in Brazil experienced an increase in Revenues (in Brazilian Reals) and Volume
of 16.8% YoY and 16.2% YoY, respectively. This increase was the result of the successful execution of the Company’s
Go-To-Market strategy of expanding to regions located near Minas Gerais. Consequently, the pasta market share rose
by +3.2 p.p. YoY to 43.9% in the Minas Gerais state. EBITDA reached S/. 19.4 million, while EBITDA margin was 17.1%.
During Q4 15’ there was an extraordinary income in Brazil as consequence of the REGULARICE tax benefit program.
This represented an income of S/. 29.5 million (S/. 14.2 million were registered in the SG&A and the remaining S/. 15.3
million were included in the Net Financial Expenses). In addition, the company refinanced the loan with BVA at a
discount which represented an income of S/. 4.7 million in the Net Financial Expenses.
B2B Products
Revenues and Volume reached S/. 375.9 million (+0.8% YoY) and
Revenues & EBITDA Margin
(PEN Million)
145.2 thousand tons (+2.8% YoY) in Q4 15’. In Q4 15’, EBITDA
reached S/. 12.0 million, a decrease of 66.5% compared to Q4 14’,
while EBITDA Margin decreased to 3.2% in Q4 15’ compared to the
373
331
9.6% reported in Q4 14’. During this quarter there was a loss of S/. -
357
394
376
20.2 million from an adjustment in the Quinoa inventories to its Net
Realizable Value. Excluding this loss, the EBITDA margin would have
been 8.6%.
Revenues from the Bakery platform amounted S/. 185.4 million, a
9.6%
Q4 14'
8.8%
8.3%
9.0%
Q1 15'
Q2 15'
Q3 15'
3.2%
Q4 15'
decrease of 3.1% YoY. Volume reached 102.4 thousand tons, an
8
increase of 1.5% YoY. This was principally explained by lower prices in the Industrial Flours category due to lower
international wheat prices and to higher competition. Alicorp launched a new Industrial Flour format to address
unattended packaging size needs. EBITDA reached S/. 17.0 million, while EBITDA margin was 9.2%.
Our Food Service platform maintains steady growth levels that are above the GDP growth of restaurants in Peru.
Revenues amounted S/. 134.5 million, an increase of 7.7% YoY, while the Volume reached 30.2 thousand tons, an
increase of 9.4% YoY. This was a result of the Company’s expanding client base as well as in the strengthening of our
Go-To-Market strategy. EBITDA reached S/. 16.7 million, while EBITDA margin was 12.4%.
Aquaculture “Vitapro”
Revenues and Volume reached S/. 386.9 million (+3.7% YoY) and
Revenues & EBITDA Margin
(PEN Million)
104.7 thousand tons (+1.3% YoY) in Q4 15’, mainly due to higher
Revenues from shrimp feed in Ecuador. Volume was affected by
lower salmon feed demand due to a reduction of international
373
338
356
387
337
salmon prices. Volume in Ecuador maintains a steady growth of
6.0% YoY. Revenues were affected by the decrease in the price of
shrimp feed due to lower raw materials cost and a change in the
13.6%
13.1%
13.7%
13.8%
13.2%
Q4 14'
Q1 15'
Q2 15'
Q3 15'
Q4 15'
revenues mix.
The Company continues its strategy to increase market share in
Ecuador and Chile by: i) pushing for higher margin value-added products, such as healthy diet and medicated products
and ii) aiming to position itself as the best alternative service for the salmon and shrimp industries. In Chile we expect
to continue increasing our client base. In Ecuador we will focus in increasing the product penetration in the key clients
and increasing our client base via new distributors.
During Q4 15’, EBITDA reached S/. 51.1 million, a 1.0% increase YoY, EBITDA margin reached 13.2% in Q4 15’
compared to the 13.6% reported in Q4 14’.
9
III.
BALANCE SHEET
Assets
As of December 31, 2015, Total Assets decreased S/. 613.3 million compared to December 31, 2014, as a result of a
decrease in Current Assets of S/. 365.1 million and a decrease in Non-Current Assets of S/. 248.2 million. The decrease
in Assets was mainly explained by: i) the decrease in the Hedging Operations Guarantee Fund, ii) the market
fluctuation of the available-for-sale investments, and iii) the reduction of Other Accounts Receivables.
Cash and Cash Equivalents increased from S/. 99.5 million at December 31, 2014 to S/. 112.5 million at December 31,
2015. Commercial Accounts Receivable rose from S/. 977.7 million at December 2014 to S/. 986.5 million at December
2015. Commercial Accounts Receivable turnover was 57.0 days during Q4 15’ versus 55.5 days during Q4 14’.
Inventories increased from S/. 987.6 million at December 2014 to S/. 1,010.8 million at December 2015. Days of
inventories decreased from 86.6 to 84.6 days from Q4 14’ to Q4 15’, respectively.
Property, Plant and Equipment decreased S/. 51.1 million, from S/. 2,073.6 million at December 2014 to S/. 2,022.5
million at December 2015 as CAPEX was offset by Accumulated Depreciation.
Liabilities
As of December 2015, Total Liabilities decreased S/. 740.2 million mainly due to lower Financial Liabilities. This
reduction was a consequence of the Company’s strong cash flow generation.
Current Liabilities decreased S/. 313.8 million mainly due to a decline in Current Financial Liabilities of S/. 646.3 million
which was partly offset by higher Commercial Accounts Payable of S/. 313.9 million. The Accounts Payable turnover
increased 18.2 days, from 80.3 to 98.5 from Q4 14’ to Q4 15’, respectively.
Non-Current Liabilities decreased by S/. 426.5 million, mainly due to: i) the decrease of Financial Liabilities of S/._248.9
million, ii) lower Deferred Income Tax Liabilities of S/. 90.2 million and iii) the decrease in Other Accounts Payable of
S/. 84.3 million related to REGULARICE tax benefit program in Brazil.
Total Current Financial Debt as of December 2015, was S/. 514.5 million, a S/. 422.5 million reduction versus Q4 14´
due to lower debt in Peru and Argentina.
Total Long-Term Financial Debt at December 2015 was S/. 1,555.2 million, amounting to 75.1% of Total Financial Debt,
compared to 65.3% at December 2014. This was due to the debt restructuring process that included: i) the issuance of
10
S/._500.0 million 15-year bond in January 2015, ii) the closing of a S/. 316.0 million 3.5-year loan in June 2015, iii) the
closing of S/. 160.0 million 4.0-year loan on August 2015 and iv) the closing of a S/. 150.0 million 3.0-year loan in
November 2015.
The currency mix of Financial Debt at December 2015, after the derivatives hedging, was expressed in: i) 77.5% in
Peruvian Nuevo Soles, ii) 11.6% in U.S. Dollars, iii) 7.1% in Brazilian Real, and iv) 3.8% in Argentinean Pesos. Only 2.4%
of the total debt has FX exposure to US$/PEN depreciation. The duration of total debt was 3.67 years at December
2015 compared to 3.90 at December 2014. Long-Term Debt duration at December 2015 was 4.15. During Q4 15’ the
Company closed 20 foreign exchange forward agreements in order to cover net cash flow exposure. Currently, the
majority of liabilities are fixed-rate, either direct or through derivative transactions.
Equity
Shareholders’ Equity increased by S/. 127.0 million (6.1%), from S/. 2,096.0 million at December 2014, to S/._2,223.0
million at December 2015, primarily due to the annual net income, which reached S/. 157.5 million.
11
IV.
STATEMENT OF CASH FLOWS
Operating Activities
As of December 2015, cash flow from operations was S/. 1,081.2 million, S/. 692.3 million higher compared to the
same period of 2014, mainly due to i) an increase of business turnover, and ii) working capital efficiencies, particularly
in accounts payable. The Company’s cash position totaled S/. 112.5 million at December 2015.
Investing Activities
Cash flow used in investing activities as of Q4 15’ totaled S/. 152.2 million, S/. 458.5 million lower compared to 2014
investing activities. The reduction was mainly explained by a substantially lower CAPEX of S/. 175.9 million during
2015 compared to S/. 335.8 million during 2014. Key disbursements were allocated to: i) the capacity increase at
Inbalnor plant in Ecuador, ii) plant reconstruction in Argentina, iii) increase of palm oil processing capacity, iv)
installation of pasta new lines, v) installation of flavored soda cracker line vi) acquisition of automatic palletizer
machines for a detergents plant, vii) increase in the cereals plant capacity and viii) the installation of a bakery products
plant in Peru.
Financing Activities
Cash flow used for financing activities at Q4 15’ was S/. 921.9 million, compared to S/. 233.4 million at Q4 14’, mainly
due to the debt reduction in accordance with the Company’s deleveraging strategy.
Liquidity and Leverage Ratios
The Company’s current ratio (Total Current Assets / Total Current
Liquidity & Leverage Ratios
Liabilities) was 1.17x on December 2015, as well as on December
2014. The leverage ratio (Total Liabilities / Total Shareholder’s
Equity) decreased from 2.26x as of December 2014 to 1.80x as of
Current Ratio
5.35
December 2015, due to lower financial liabilities. In terms of the
Leverage Ratio
Net Debt / EBITDA
5.02
4.75
2.13
2.04
2.01
1.45
1.58
Q2 15'
Q3 15'
4.60
Net Debt_/ EBITDA, this ratio decreased from 5.35x as of
2.26
December 2014 to 2.71x as of December 2015 due to a reduction
of Financial Debt in S/.629.6 million and due to an increase of the
full-year
EBITDA in S/.236.5 million. EBITDA for the full-year,
2.71
1.80
1.17
Q4 14'
1.31
Q1 15'
1.17
Q4 15'
which reached S/. 722.5 million, coupled with lower Working
Capital requirements, allowed the Company to continue its deleveraging process in line with our latest guidance.
12
V.
RECENT EVENTS
New Product Launches and Revamping of Existing Products
In the Consumer Goods Peru division, Alicorp launched “Zas”, a new savory cracker brand under
two package sizes: 22g and 74g. The goal of this brand is to compete with top players in the
savory crackers category through a new value proposition.
In the B2B branded products business, Alicorp launched a new 25kg packaging format for the
“Nicolini” branded Industrial Flour. The goal is to satisfy the requirements of traditional
Peruvian restaurants.
In Argentina, Alicorp launched a new line of hair care products for the spring and summer
seasons consisting of two new shampoos and hair conditioner varieties: “Renovación Intensa”
and “Restauración Diaria” (“Intense Renovation” and “Daily Restoration”).
Additionally, in the same products line, Alicorp launched two new varieties of beauty soap
under the “Plusbelle” brand in a limited edition: “Renovación Intensa” and “Restauración
Diaria” (“Intense Renovation” and “Daily Restoration”). The goal of this launch was to increase
market share by adding new customers through continuous product innovation.
In the detergents category, Alicorp launched a new premium line of powdered detergent:
“Gran Federal” under two plastic bag sizes: 600g and 2.25kg. The goal of this launch was to
increase the supply of premium detergents taking advantage of new market conditions and
strengthening Alicorp´s competitive position in the category.
In the cookies & crackers category, Alicorp launched a new premium variety: “Molino Natural
Almendras y Chía” (“Molino Natural Almonds and Chía”) under two package sizes: 165g and
255g. The product offers a healthy alternative snack that aims to satisfy the new trends of the
market.
In Brazil, Alicorp launched a limited edition of pasta “Speciale”, supporting breast cancer
patients donating a percentage of net sales. The product has a new presentation, offering an
innovative design for consumers. The objective of this launch was to strengthen the brand´s
image and aligned it to reflect our social responsibility activities.
In the same category, Alicorp launched “Speciale Integral Fettuccine” for premium customers in
13
the region. The goal of this product was to extend the healthy products portfolio and to
consolidate the premium portfolio in the category.
Additionally, Alicorp revamped the pasta “Speciale Grano Duro” offering new product
packinging using craft paper. The objective of this redesign was to increase volume sold
through a new marketing mix in order to offer a better value proposition to customers.
In the powder chocolates category, Alicorp revamped the entire line of chocolate milk products
under the new “Geneo” brand. The objective of this brand is to deliver a better value proposal
for customers, positioning the product as a nutritional milk alternative with healthy ingredients
aimed at the children’s market.
14
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 23 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.
Disclaimer
This Press Release 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 “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.
15
ALICORP S.A.A.
Consolidated Statement of Financial Position
As of December 31, 2015 and December 31, 2014
(in thousands of Peruvian Nuevos Soles)
Notes
December 31
2015
December 31
2014
Notes
Assets
Current Assets
2
112,529
99,521
Other Financial Liabilities
Other Financial Assets
3
52,767
332,674
Trade Account Payables
986,522
977,714
Other Account Payables
75,893
193,924
Account Payables to Related Parties
1,882
157
Trade Account Receivables, Net
4
Account Receivables from Related Parties
Advances to Suppliers
20,624
45,538
1,010,787
987,579
0
0
Current Income Tax - Asset
93,903
103,186
Other non financial assets
33,244
19,934
Assets classified as held for sale
30,033
23,047
2,418,184
2,783,274
Inventories
5
Biological Assets
Total Current Assets
Non-Current Assets
11
Current Income Tax
Provision for Employee Benefits
12
Total Current Liabilities
0
330,625
420,836
2,810
3,006
3,593
6,475
Total Non-Current Liabilities
1,916,772
2,343,311
Total Liabilities
3,990,660
4,730,949
847,192
24,179
Provisions
36,715
Provision for Employee Benefits
790
0
591,905
102,353
90,868
9
825,347
897,622
3,795,482
4,043,691
Deferred Income Tax Liabilities
12
Sharedholders' Equity
Share Capital
13
847,192
Investment Shares
13
7,388
7,388
Reserves
13
169,438
169,438
1,130,193
1,001,240
Retained Earnings
Other Shareholders' Equity Reserves
Equity Attributable to Ow ners of the Com pany
Non-Controlling Interests
Total Shareholders' Equity
TOTAL ASSETS
6,213,666
6,826,965
2,387,638
98,212
58,419
2,073,569
84,761
2,073,888
0
17,890
545,268
10,370
1,814,782
4
2,022,448
12,699
101,737
13,867
6
8
15,202
1,565,877
Other Account Receivables
7
2,180
26,666
11
Investments in associates
Deferred Tax
103,832
91
10
328,833
Intangible Assets, Net
1,001,484
93,835
Other Account Payables
222,967
Property, Plant and Equipments, Net
1,169,809
Other Financial Liabilities
Account Payables to Related Parties
Biological Assets
523,467
1,315,393
Non-Current Liabilities
3
Total Non-Current Assets
10
Provisions
Other Financial Assets
Goodw ill
December 31
2014
Current Liabilities
Cash and Cash Equivalents
Other Account Receivables, Net
December 31
2015
Liabilities and Shareholders´ Equity
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
13
45,998
61,607
2,200,209
2,086,865
22,797
9,151
2,223,006
2,096,016
6,213,666
6,826,965
16
ALICORP S.A.A.
Consolidated Statement of Comprehensive Income
For the Quaters Ended December 31, 2015, 2014
(in thousands of Peruvian Nuevos Soles)
Notes
Revenue
For the Quarter For the Quarter
Ended
Ended
Decem ber 31, Decem ber 31,
2015
2014
For the cum ulative
period Starting on
January 1 and
Ending Decem ber
31, 2015
For the cum ulative
period Starting on
January 1 and Ending
Decem ber 31, 2014
1,733,560
1,686,381
6,580,488
0
0
0
0
1,733,560
1,686,381
6,580,488
6,282,995
-1,241,226
-1,218,778
-4,713,108
-4,571,288
492,334
467,603
1,867,380
1,711,707
Selling and Distribution Expenses
-245,707
-219,807
-910,178
-818,384
Administrative Expenses
-102,619
-101,422
-373,360
-350,453
0
0
0
0
17,520
2,718
31,231
39,684
-10,371
-8,531
-24,418
-20,752
-3,585
-208,671
-30,040
-207,497
354,305
Other Revenues
Net Sales
Cost of Sales
Gross Profit (Loss)
Profit (loss) on the disposal of financial assets measured at amortized cost
Other Operating Income
Other Operating Expenses
Other income (Expenses)
147,572
-68,110
560,615
15
56,147
8,452
77,427
15,778
16
-95,858
-104,203
-366,652
-228,251
17
-13,466
-35,382
-31,917
-81,272
-6,535
-549
-6,535
-549
Operating Profit (Loss)
Financial Income
Financial Expenses
Exchange differences on translating foreign operations.
6,282,995
Share in Profits from Associates
Profit (Loss) arising from the Difference betw een the Book Value and Fair Value of
the Financial Assets Reclassified measured at Fair Value
Profit (Loss) before Incom e Tax
0
0
0
0
87,860
-199,792
232,938
60,011
-31,626
16,816
-75,465
-47,644
56,234
-182,976
157,473
12,367
0
-333
0
-332
Profit (Loss) for the Period/Year (Net Value)
56,234
-183,309
157,473
12,035
Net Profit (Loss) attributable to:
Ow ners of the Company
52,621
-183,914
153,588
10,421
3,613
605
3,885
1,614
56,234
-183,309
157,473
12,035
Income Tax Expense
Profit for the Year from Continuing Operations
Profit (Loss) for the Year from Discontinued Operations
Non-Controlling Interests
Net Earnings (Loss) for the Period/Year
Basic (cents per share):
Earnings per Share Capital in Continuing Operations
18
0.066
-0.215
0.184
0.014
Earnings per Share Premium in Continuing Operations
18
0.066
-0.215
0.184
0.014
Earnings per Share Capital in Discontinued Operations
0.000
0.000
0.000
0.000
Earnings per Share Premium in Discontinued Operations
0.000
0.000
0.000
0.000
Earnings per Share
Earnings per Share Prem ium
0.066
-0.215
0.184
0.014
0.066
-0.215
0.184
0.014
Diluted (cents per share):
Earnings per Share Capital in Continuing Operations
18
0.066
-0.215
0.184
0.014
Earnings per Share Premium in Continuing Operations
18
0.066
-0.215
0.184
0.014
Earnings per Share Capital in Discounted Operations
0.000
0.000
0.000
0.000
Earnings per Share Premium in Discounted Operations
0.000
0.000
0.000
0.000
Earnings per Share Capital
0.066
-0.215
0.184
0.014
Earnings per Share Prem ium
0.066
-0.215
0.184
0.014
17
ALICORP S.A.A.
Consolidated Statement of Cash Flows
Direct Method
For the Periods Ended December 31, 2015 and 2014
(in thousands of Peruvian Nuevos Soles)
Notes
For the cum ulative
period Starting on
January 1 and Ending
Decem ber 31, 2015
For the cum ulative
period Starting on
January 1 and Ending
Decem ber 31, 2014
CASH FLOW FROM OPERATING ACTIVITIES
Collections from (due to):
6,599,264
6,261,347
Fees
0
0
Royalties, commissions, and other income from ordinary activities
0
0
Interests and Returns Received (not included under Investment Activities)
0
0
Income Tax Reinbursement
0
Sales of Goods and Services Offered
Dividends Received (not incluided under Investment Activities)
Other Operating Collections
0
0
0
206,092
248,829
Paym ents to (due to):
-4,951,832
-5,116,766
Salaries
-598,692
-570,802
Income Taxes Paid
-109,984
-61,122
Interests and Returns (not incluided under Financing Activities)
0
0
Dividends (not included under Financing Activities)
0
0
Royalties
0
0
-39,048
-348,083
Suppliers of Goods and Services
Other Operating Payments
-24,571
-24,443
1,081,229
388,960
Reinbursement from Advanced Loans and Loans to Third Parties
0
0
Repayments by Related Parties
0
0
Sale of Financial Instruments (Debt or Equity) to other Entities
0
0
Derivative Contracts (futures, options)
0
0
Net Cash Inflow on Disposal of Associate
0
0
Sale of Participation in Joint Venture, Net of Cash Disbursement
0
0
Sale of Investment Properties
0
0
673
9,315
Sale of Intangible Assets
0
0
Proceeds from Disposal of Other Long Term Assets
0
0
15,705
5,512
3,587
2,892
Income Tax Reinbursement
0
0
Other Cash Collected from Investment Activities
0
0
Advanced Payments and Loans to Third Parties
0
0
Loans to Related Parties
0
0
Purchase of Financial Instruments (Debt or Equity) from Other Entities
0
0
Derivative Contracts (futures, options)
0
0
-5,335
-300,650
Purchase of Participation in Joint Ventures, Net of cash acquired
0
0
Purchase of Participation in Non-Controlling Interests
0
0
Purchase of Investment Properties
0
0
-175,914
-335,762
Other Payments
Net Cash Generated by Operating Activities
CASH FLOW FROM INVESTMENT ACTIVITIES
Collections to (due to):
Sale of Properties, Plant and Equipment
Interests and Returns Received
Dividends Received
Paym ents to (due to):
Net Cash Outflow on Acquisition of Subsidiaries
Purchase of Properties, Plant and Equipment
0
0
-691
-1,681
Purchase of Other Long Term Assets
0
0
Income Tax Paid
0
0
9,793
9,663
-152,182
-610,711
Advance Payments for Work in Progress for Property, Plant and Equipment
Purchase of Intangible Assets
Other Cash Payments from Investment Activities
Net Cash (Used in) Generated by Investm ent Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Collections to (due to):
3,672,662
2,689,612
Loans to Related Parties
0
0
Issue of Ordinary Shares and Other Instruments of Equity
0
0
Sale of Treasury Shares
0
0
Income Tax Reimbursement
0
0
Other Cash Collected from Financing Activities
0
0
Short Term and Long Term Loans
Paym ents to (due to):
-4,423,869
-2,144,948
Loans from Related Entities
0
0
Liabilities from Leasing Operations
0
0
Repurchase of Shares (Treasury Shares)
0
0
Adquisition of other Participations under Share Capital
0
0
-212,030
-208,692
Dividends
0
-102,550
Income Tax Paid
0
0
Short Term & Long Term Loan Amortizations
Interests and Returns
41,328
0
-921,909
233,422
Increase (Decrease) Net Cash Flow , before Exchange Rate Changes
7,138
11,671
Effects of Exchange Rate Changes on the Balance of Cash Held in Foreign
Currerncies
5,870
-2,924
Other Cash Payments from Financing Activities
Net Cash Used in Financing Activities
Increase (Decrease) Net Cash Flow , after exchange rate changes
13,008
8,747
Cash and cash equivalents at the beginning of the year
99,521
90,774
112,529
99,521
Cash and cash equivalents at the end of the year
18