Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Q3 2022 Earnings Presentation
43 slides from Alicorp Saa's earnings presentation, Nov 2, 2022
Slide 1: Earnings Call Third Quarter 2022
EARNINGS CALL THIRD QUARTER 2022 November 2nd, 2022
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 Q3 '22 HIGHLIGHTS 1 Q3 '22 CONSOLIDATED OPERATING RESULTS 2 Q3 '22 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2022 5 APPENDIX 6
Slide 4: Q3 '22 Highlights
Q3 ’22 HIGHLIGHTS
Slide 5: Relevant Events: Peru inflation and regional factors
Q3 '22 HIGHLIGHTS Relevant Events PERU’S ANNUAL GENERAL INFLATION RATE REACHES 8.8% AND 13.7% ONLY FOR THE FOOD AND BEVERAGE COMPONENT1 PUBLIC INVESTMENT 2023 OUTLOOK MAY BE AFFECTED BY THE NEWLY ELECTED MUNICIPAL AND REGIONAL AUTHORITIES Foto BOLIVIA’S PROVINCE SANTA CRUZ CONTINUES ON WIDESPREAD ST
Slide 6: Alicorp's updated strategic framework
Q3 '22 HIGHLIGHTS Alicorp’s updated strategic framework WINNING ASPIRATION We feed a better tomorrow with relevant value propositions for each of our consumers and clients in the Andean Region, transforming markets with our leading brands, ability to innovate, efficient management and the talent of
Slide 7: Q3 '22 Strategic Highlights: key initiatives
Q3 ’22 STRATEGIC HIGHLIGHTS Alicorp’s updated strategic framework CAPABILITIES WE CAREFULLY Innovation Digital Our people Portfolio management Technology & processes Sustainability PRIORITIZE INITIATIVES AND MANAGE RESOURCES FOCUSING KEY INITIATIVES & STRATEGIC PROJECTS ON RETURN ON CG PERU CG INTER
Slide 8: Innovation: a new brand promise
Q3 ’22 STRATEGIC HIGHLIGHTS Innovation: a new brand promise The only brand really made for you, naturally DESIGNED FOR LOCAL WE USE PERUVIAN ACCESIBLE PREMIUM CONSUMERS NATURAL INGREDIENTS HAIR CARE BRAND MAIN SOCIAL MEDIA KPIs: Young Peruvians show the lowest loyalty to the leading Hair Care brands
Slide 9: Q3 '22 Consolidated Operating Results
Q3 ’22 CONSOLIDATED OPERATING RESULTS
Slide 10: Strong revenue growth driven by crushing and consumer goods Peru
Q3 '22 CONSOLIDATED OPERATING RESULTS Consolidated REVENUE – Q3 '22 vs. Q3 '21 Q3 PERFORMANCE SUMMARY – REVENUE PEN million STRONG REVENUE +30.1% GROWTH DRIVEN BY THE 11,243 REMARKABLE PERFORMANCE IN OUR 8,639 CRUSHING AND CONSUMER GOODS PERU UNITS DRIVEN BY AN +20.7% INCREASE IN VOLUME 215 15 97 11
Slide 11: Consolidated EBITDA grew YoY
Q3 '22 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q3 '22 vs. Q3 '21 Q3 PERFORMANCE SUMMARY – EBITDA PEN million CONSOLIDATED EBITDA +26.3% GREW YoY EXPLAINED 1,270 BY OUR CRUSHING AND CONSUMER 1,006 GOODS PERU UNITS RESULTS REFLECT +17.1% HIGHER GROSS PROFIT 45 23 62 17 433 8 4 AND A 18.4%
Slide 12: Increase in net income explained by higher operating profit
Q3 '22 CONSOLIDATED OPERATING RESULTS Consolidated NET INCOME – Q3 '22 vs. Q3 '21 Q3 PERFORMANCE SUMMARY – NET INCOME PEN million +54.8% +40.2% INCREASE IN NET 455 INCOME IS EXPLAINED 433 BY HIGHER OPERATING 325 PROFIT PARTIALLY +30.6% 280 OFFSET BY FX HEDGING +28.8% COSTS 151 117 131 101 3.0% 3.5%
Slide 13: Q3 '22 Operating Results by Business
Q3 ‘22 OPERATING RESULTS BY BUSINESS
Slide 14: Consumer Goods Peru: Update on Market Dynamics
Q3 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics ALICORP’S REVENUE CONTINUES ITS RECOVERY CHANNEL MIX: Traditional channel gains share vs 2021 In % 23.5 CONSUMER GOODS 16.3 3Q21 3Q22 YTD21 YTD22 PERU CONTINUES TO 11.8 8.3 11.6 5.5 4.9 Traditional 70% 76% 73% 76% DE
Slide 15: Consumer Goods Peru: Q3 Performance
Q3 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q3 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN PEN million PEN million +16.1% +6.5% REVENUE INCREASED 2,775 3,221 417 444 DUE TO PRICING +37.4% +23.5% ACTIONS IN ADDITION 1,132 166 TO DESIGN TO VALUE 916 26.2% 25.9% 28.7% 25.3%
Slide 16: Consumer Goods International: Market Dynamics
Q3 '22 OPERATING RESULTS BY BUSINESS Consumer Goods International: Market Dynamics Share of volume Share of value JA’22 vs MJ’221 JA’22 vs JA’211 BOLIVIA: WE CONTINUE ▪ Persistent growth in Home Care categories due to volume Detergents +1.2 p.p. +7.3 p.p. increases (+33% YoY) and pricing initiatives
Slide 17: Consumer Goods Bolivia: Q3 Performance
Q3 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q3 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN PEN million PEN million REVENUE INCREASED +5.3% -37.3% DUE TO HIGHER HOME 502 528 29 CARE VOLUME, MAINLY +0.2% 18 DETERGENTS (+30% 194 195 -79.4% YoY), AND PRICING 16.8% 16.0% 19
Slide 18: Consumer Goods Ecuador: Q3 Performance
Q3 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q3 Performance REVENUE & GROSS MARGIN PEN million +14.7% 153 133 REVENUE GROWTH +21.4% 63 DRIVEN MAINLY BY 52 33.5% 27.1% VOLUME SOLD GROWTH 30.1% 26.4% ON A QUARTER AND YTD 3Q21 3Q22 YTD21 YTD22 BASIS EBITDA & EBITDA MARGIN PEN million +4
Slide 19: B2B: Update on Market Dynamics
Q3 '22 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics FAMILY SHOPPING BASKET COST1,2 RESTAURANT GDP2 PEN per month in a four-member family Index 100 = 2019 905 OUT-OF-HOME 760 97 97 96 97 96 96 CONSUMPTION IS HIGHLY 95 94 106% 88 102% 86 IMPACTED BY FAMILY 73 SHOPPING BASKET COST 63 61
Slide 20: B2B: Q3 Performance
Q3 '22 OPERATING RESULTS BY BUSINESS B2B: Q3 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN PEN million PEN million +28.8% +30.9% REVENUE INCREASE DUE 2,005 180 TO PRICING 1,557 138 STRATEGIES AND +16.0% -12.3% PROFITABILITY 606 703 68 60 INITIATIVES THAT 17.2% 14.3% 16.4% 14.9% 11.3% 8.5
Slide 21: Aquafeed: Update on Market Dynamics
Q3 '22 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics YoY % growth SHRIMP SALMON SHRIMP: GROWTH IN SHRIMP EXPORTS - ECUADOR SALMON EXPORTS - CHILE EXPORT VOLUME AND VALUE DRIVEN BY +74% +81% +43% +29% +33% +37% +35% +30% 2,500 1,747 1,794 2,500 2,000 HIGHER GLOBAL DEMAND 2,000 1,6
Slide 22: Aquafeed: Q3 Performance
Q3 '22 OPERATING RESULTS BY BUSINESS Aquafeed: Q3 Performance REVENUE & GROSS MARGIN USD million +40.8% 725 515 SOLID REVENUE +16.7% GROWTH YoY DUE TO 224 262 14.8% VOLUME GROWTH AND 16.2% 15.5% 15.1% MIGRATION TO MORE 3Q21 3Q22 YTD21 YTD22 VALUE-ADDED EBITDA & EBITDA MARGIN PRODUCTS USD million +34
Slide 23: Crushing: Q3 Performance
Q3 '22 OPERATING RESULTS BY BUSINESS Crushing: Q3 Performance VOLUME SOLD REVENUE Thousands of MT USD million REMARKABLE REVENUE +4.5% +39.0% GROWTH DUE TO 322 337 291 HIGHER VOLUME AND 103 105 +2.1% 209 82 +18% STRONG SHARE DUE TO 70 +50% A GROWING HARVEST, 219 232 +5.6% 209 139 EBITDA REACHED USD
Slide 24: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 25: Leverage and credit rating: maturity profile
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating MATURITY PROFILE AS OF SEPTEMBER 20223 PEN million 1,269 1,211 1,155 WE PROACTIVELY 423 998 144 861 520 MANAGE OUR TOTAL CASH 235 471 152 546 LIABILITIES BY 799 167 S/ 1,269 million 660 644 429 371 291 SMOOTHING OUR Total Cash 1 yea
Slide 26: Share repurchases and indebtedness evolution
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating INDEBTEDNESS EVOLUTION: NET DEBT / EBITDA1,2,3 PEN million AS OF SEPTEMBER, WE HAVE 7,000 3.5x 2,4 3.3x 4.00 REPURCHASED 3.2% OF 6,000 4,468 2.6x 3.0x 2.5x 3.00 4,590 OUTSTANDING SHARES FOR 5,000 4,340 3,641 3,974 2.00 4,000 APPROXI
Slide 27: Our View Going Forward
OUR VIEW GOING FORWARD
Slide 28: Guidance 2022
OUR VIEW FOR 2022 Guidance 2022 REVENUE EBITDA CAPEX LEVERAGE >25% GROWTH APPROXIMATELY APPROXIMATELY 2.5X NET DEBT/EBITDA 25% GROWTH, USD 70 MM COUPLED WITH EXCLUDING DOUBLE DIGIT AQUAFEED EBITDA PER MT GROWTH VS USD 105 MM 2021 INCLUDING AQUAFEED
Slide 29: Earnings Call Third Quarter 2022
EARNINGS CALL THIRD QUARTER 2022 November 2nd, 2022
Slide 30: Appendix
APPENDIX
Slide 31: Bolivia sum of the parts
Q3 '22 OPERATING RESULTS BY BUSINESS Bolivia sum of the parts VOLUME SOLD REVENUE Thousands of MT USD million REMARKABLE RESULTS +3.7% +32.4% EXPLAINED BY THE 349 363 341 PERFORMANCE OF OUR 103 105 +2.1% 257 82 +18% CRUSHING UNIT, DUE TO 70 A BETTER HARVEST, 219 232 +5.6% 139 209 +50% GREATER MARKET
Slide 32: CGI: Q3 '22 Performance by Geography
APPENDIX CGI: Q3 '22 PERFORMANCE BY GEOGRAPHY
Slide 33: Consumer Goods: Q3 Performance
Q3 '22 OPERATING RESULTS BY BUSINESS Consumer Goods: Q3 Performance REVENUE & GROSS MARGIN PEN million +14.2% 4,076 3,568 INCREASE IN REVENUE +18.8% DRIVEN BY PRICE 1,224 1,454 27.2% 24.0% ACTIONS ACROSS ALL 24.5% 24.1% GEOGRAPHIES 3Q21 3Q22 YTD21 YTD22 EBITDA & EBITDA MARGIN PEN million -1.0% 456 4
Slide 34: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 35: Working capital: cash conversion cycle
SOLID LIQUIDITY AND STRONG BALANCE SHEET Working capital – Cash conversion cycle (CCC) WORKING CAPITAL1,2 Days 124 124 124 124 127 OUR BUSINESS PROVED 3 Accounts Payable ITS RESILIENCE BY BEING ABLE TO 107 107 107 107 109 Inventories CONTINUOUSLY IMPROVE ITS CASH CONVERSION CYCLE 35 34 33 32 32 OVER
Slide 36: Debt Breakdown
APPENDIX Debt Breakdown TOTAL Dec 20 Dec 21 Sep 22 DEBT1 S/ 3,961mm S/ 5,245mm S/ 5,242mm 7.5% 7.0% 5.1% 10.2% 8.1% International Bonds 30.7% 30.3% By Source1 Local Bonds Working Capital Debt 31.2% 34.3% LT Bank Debt 29.9% Leases (IFRS 16) 5.3% 46.7% 8.1% 23.4% 22.2% 15.8% 15.0% 21.8% 0.9% 0.2% 0.1%
Slide 37: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO1 (PEN Million) 1,288 1,315 1,379 1,515 1,578 Alicorp’s financial guidelines aim to: 283 307 327 329 319 1. Maintain investment grade rating 2. Control financial expenses 4.56x 4.60x 4.95x 4.28x 4.21x 3. Match the currency of our
Slide 38: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 CAPEX2 (PEN Million) (PEN Million) • Inventory growth for S/ 1,250 million is mainly explained by the purchase of soybean and sunflower seeds as well as higher commodity prices overall. 300 PP&E Intangibles PP&E+Intagibles/Sales 7.0 % •
Slide 39: Cash Flow Build Up
APPENDIX Cash Flow Build Up MAIN DRIVERS FOR CASH FLOW EVOLUTION (PEN Million) Cash Flow from Operations Cash Flow used in Investing Cash Flow used in Financing S/ 1,188 S/ -1351 S/ -689 1,495 2,400 191 1,900 116 135 2 71 1,400 240 3 2,209 2,093 378 900 1,958 1,887 1,647 1,269 1,269 400 905 905 -100
Slide 40: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1,6 OPERATING & FREE CASH FLOW CONVERSION1,6 (PEN Million) Q3 2020 3 Q3 20213 Q3 20223 110% 89% 90% 78% 3 3 3 Q3 2020 Q3 2021 Q3 2022 70% 54% 77% 50% 66% 30% 10% 1,209 2 14% 1,157 1110 2 5 5 889 Operating Cash Flow / EBITDA Free Cash Flow / EBIT
Slide 41: Q3 '22 Milestones
APPENDIX Q3 '22 MILESTONES
Slide 42: Q3 '22 Milestones
APPENDIX Q3 ’22 Milestones PRODUCT RESEARCH & DEVELOPMENT AWARDS & RECOGNITION We were recognized for eleventh consecutive year by “Diario Gestión” and PwC as one of Alicorp's "Marcas a tu lado" and the most "Umsha" campaigns were admired recognized at the Stevie companies in International Business
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