Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Alicorp — Q1 2021 Earnings Presentation
44 slides from Alicorp Saa's earnings presentation, Apr 30, 2021
Slide 1: Earnings Call First Quarter 2021
EARNINGS CALL FIRST QUARTER 2021 April 30th 2021
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 ’21 HIGHLIGHTS 1 Q1 ’21 CONSOLIDATED OPERATING RESULTS 2 Q1 ’21 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2021 5 APPENDIX 6
Slide 4: Q1 '21 Highlights
Q1 ’21 HIGHLIGHTS
Slide 5: Relevant Events
Q1 ’21 HIGHLIGHTS Relevant Events Tighter restrictions amid second COVID-19 wave in Latam Governmental elections in Ecuador and Peru Foto Cost pressure from commodity prices rising at a pace not seen in over a decade Successful migration to SAP S4/Hana in Peru as planned, impacting approx. 2,000 emp
Slide 6: COGS Under Pressure
Q1 ’21 HIGHLIGHTS COGS Under Pressure MULTIPLE SOURCES OF COST ALICORP’S COGS BREAKDOWN1 As a % of total COGS – LTM as of 1Q21 • Agricultural commodities PRESSURE rising for 10 months in a row THE EXPANSION OF OUR HOME 14% • Peruvian PEN devaluation AND PERSONAL CARE 16% of 10% YoY PLATFORMS PARTIAL
Slide 7: Commodity Price Risk Management
Q1 ’21 HIGHLIGHTS Commodity Price Risk Management OUR COMMODITIES STRATEGY FIRST CLASS • 2017: Creation of a Vice Presidency dedicated exclusively to our CAPABILITIES IN THE commodities strategy (procurement and hedging). PROCUREMENT AND • Our financial risk department, reporting to the Finance VP,
Slide 8: Strategic Pillars
Q1 ’21 HIGHLIGHTS Strategic Pillar - Efficiency ENABLERS Create and strengthen new businesses and platforms through innovation as well as continuous exploration of inorganic opportunities GROWTH STRATEGIC PILLARS Instill a culture of Efficiency allowing us to continuously improve profitability, maxi
Slide 9: Strategic Pillar - Efficiency
Q1 ’21 HIGHLIGHTS Strategic Pillar - Efficiency 20.3 • Highly experienced ALICORP PROMOTES 16.1 15.5 14.7 15.3 SG&A / corporate team entirely THE HIGHEST Revenue (%) dedicated to the monitoring and management of both 0 EFFICIENCY 2016 2017 2018 2019 2020 day-to-day and STANDARDS, AND transformationa
Slide 10: Consumer Goods International Efficiencies
Q1 ‘21 HIGHLIGHTS Consumer Goods International Efficiencies TRANSFORMATION AND EFFICENCY IN BRAZIL, ARGENTINA AND BOLIVIA SG&A / Revenue excl. non-recurring expenses1 BRAZIL ARGENTINA BOLIVIA 24.9% 29.3% 35.4% 35.6% 32.2% 22.8% 19.5% 19.1% 26.5% 21.0% 19.1% 17.6% 2018 2019 2020 2021E 2 2018 2019 202
Slide 11: Q1 '21 Consolidated Operating Results
Q1 ’21 CONSOLIDATED OPERATING RESULTS
Slide 12: Consolidated Revenue – Q1 '21 vs. Q1 '20
Q1 ’21 CONSOLIDATED OPERATING RESULTS Consolidated Revenue – Q1 ’21 vs. Q1 ‘20 CONSOLIDATED REVENUE Q1 PERFORMANCE SUMMARY – REVENUE GROWTH (YoY %) AND GROSS MARGIN GREW 8% YOY IN Q1, DUE TO THE SOLID +8.4% PERFORMANCE OF OUR 2,653 2,448 +0.9% CRUSHING UNIT AND THE 256 2,192 31 18 56 2,211 442 SUCCE
Slide 13: Consolidated EBITDA – Q1 '21 vs. Q1 '20
Q1 ’21 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q1 ’21 vs. Q1 ’20 CONSOLIDATED EBITDA Q1 PERFORMANCE SUMMARY – EBITDA GROWTH (YoY %) AND EBITDA MARGIN INCREASED 69% Q1 2021 VS. Q1 2020 COVID-19 +68.5% IMPACTS MAINLY DUE TO A 356 • Q1’21: S/ 21 million STRONG PERFORMANCE costs and expense
Slide 14: Consolidated Net Income – Q1 '21 vs. Q1 '20
Q1 ’21 CONSOLIDATED OPERATING RESULTS Consolidated Net Income – Q1 ‘21 vs. Q1 ’20 Q1 PERFORMANCE SUMMARY – NET INCOME GROWTH (YoY %) AND NET MARGIN NET INCOME +14.1x REACHED S/135 MILLION MAINLY DUE 5 11 11 135 TO HIGHER OPERATING INCOME AND A LOWER EFFECTIVE TAX RATE 130 DUE TO NON- RECURRING EXPEN
Slide 15: Q1 '21 Operating Results by Business
Q1 ‘21 OPERATING RESULTS BY BUSINESS
Slide 16: Consumer Goods Peru: Update on Market Dynamics
Q1 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics ALICORP OUTPERFORMS PRIVATE CONSUMPTION WE RECOVER MARKET SHARE IN MOST CATEGORIES1 MARKET SHARE 12.0 12.5 10.7 RECOVERY IN MOST 7.3 Shares Of Market - Volume (% change) -1.7 -8.7 -2.0 CATEGORIES AFTER -9.4 0.9 Jan-F
Slide 17: Consumer Goods Peru: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q1 2021 Performance REVENUE & GROSS MARGIN (PEN Million) +7.4% 70 848 910 60 SOLID GROWTH 50 EXPLAINED BY PRICING 33.6% 32.9% 40 ACTIONS AIMED TO 30 COMPENSATE HIGHER 20 COMMODITY PRICES Q1 ’20 Q1 ’21 10 EBITDA & EBITDA MARGIN EBITDA MARGIN (
Slide 18: B2B: Update on Market Dynamics
Q1 ‘21 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics ALICORP OUTPERFORMED MARKET GROWTH Restaurant GDP and Food Service Revenue THE FOOD SERVICE INDUSTRY growth (%) CONTINUES TO FACE A 0 11 13 CHALLENING CONTEXT -14 -12 -16 -12 RECOVERY IS BEING REFLECTED -52 -21 -32 IN OUR SALES VOLU
Slide 19: B2B: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS B2B: Q1 2021 Performance REVENUE & GROSS MARGIN (PEN Million) +8.0% 100 SALES GROWTH 389 420 80 EXPLAINED BY HIGHER 60 PRICES WITH IMPORTANT 40 GROSS MARGIN 20.9% 16.8% 20 RECOVERY QOQ AFTER SUCCESSFUL PRICE 0 Q1 ’20 Q1 ’21 ACTIONS THAT AIM TO EBITDA & EBITDA MAR
Slide 20: Consumer Goods International: Market Dynamics
Q1 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods International: Market Dynamics GDP GROWTH (YoY%)1 CURRENCY DEVALUATION Q1 ’21 (YoY%) 6 4.2 3.4 3.2 AFTER A YEAR WITHOUT PRECEDENT LIKE 2020 -22.8 ONLY PARTIAL ECONOMIC -4.1 RECOVERY IS EXPECTED -7.7 -7.5 -9.9 -42.1 FOR 2021 Bolivia Ecuador Brazil A
Slide 21: Consumer Goods International: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS Consumer Goods International: Q1 2021 Performance REVENUE & GROSS MARGIN (PEN Million) -4.1% 70 THE DETERIORATION OF 424 407 60 THE ECONOMIC 50 SITUATION IN OUR 40 28.4% GEOGRAPHIES AND 30 22.1% PRICE CONTROLS IN 20 ARGENTINA RESULTED IN 10 Q1 ’20 Q1 ’21 SALES DE
Slide 22: Aquafeed: Update on Market Dynamics
Q1 ‘21 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics YoY % growth % % SHRIMP: VOLUME SHRIMP SALMON GROWTH DECELERATION Shrimp Exports in Ecuador (MT K and US$ MM) DUE TO A GREATER Salmon Exports in Chile (MT K and US$ MM) SHARE OF HEADLESS +5% -2% -6% 1,586 -15% -8% -14% -10% PRO
Slide 23: Aquafeed: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS Aquafeed: Q1 2021 Performance SEQUENTIAL REVENUE GROWTH YoY % revenue growth in USD REVENUE & GROSS MARGIN (USD Million) STABLE RESULTS QOQ -16.8% 70 SHOWING FIRST SIGNS OF 60 5.3% 155 129 50 REACTIVATION WITH Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 40 HIGHER VOLUME A
Slide 24: Crushing: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS Crushing: Q1 2021 Performance VOLUME SOLD REVENUE (Thousands of MT) (USD Million) +26.2% +58.4% 277 155 220 61 34 +37% 98 +51% 45 216 23 121 SOLID GROWTH AND IMPROVED 175 +24% +61% 75 Q1 ’20 Q1 ’21 Q1 ’20 Q1 ’21 PROFITABILITY ON THE BACK OF SOLID Internal Third p
Slide 25: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 26: Leverage and Credit Rating
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating INDEBTEDNESS EVOLUTION CREDIT RATING AS OF Q1 ‘21 Net Debt / EBITDA1,2 Global AMIDST (Excluding Crushing Business Raw Material Inventory) CHALLENGING CONDITIONS IN THE CONTEXT OF THE BBB- / Stable = BBB / Stable = Baa3 / Stable = CO
Slide 27: Liquidity and Working Capital Performance
SOLID LIQUIDITY AND STRONG BALANCE SHEET Liquidity and working capital performance LIQUIDITY WORKING CAPITAL2 (Days) TOTAL CASH Accounts Receivable Inventories Accounts Payable S/ 700 million 113.0 116.0 121.0 108.0 DEBT COVERAGE 1 100.0 2.93x over next 12 months 0.85x over next 24 months 95.0 91.0
Slide 28: Our View for 2021
alicorp VIEW FOR 2021
Slide 29: 2021 Guidance
OUR VIEW FOR 2021 2021 Guidance DOUBLE DIGIT CONSOLIDATED REVENUE GROWTH DOUBLE DIGIT CGP REVENUE GROWTH APPROXIMATELY 20% CONSOLIDATED EBITDA GROWTH DOUBLE DIGIT CGP EBITDA GROWTH CAPEX AROUND USD 150 MILLION 29
Slide 30: Appendix
APPENDIX
Slide 31: CGI: Q1 2021 Performance by Geography
APPENDIX CGI: Q1 2021 PERFORMANCE BY GEOGRAPHY
Slide 32: Consumer Goods Bolivia: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q1 2021 Performance REVENUE & GROSS MARGIN MODERATE SALES DECLINE EXPLAINED BY LOWER (PEN Million) -2.5% 70 150 147 60 DEMAND IN THE DOMESTIC 50 OILS CATEGORY AFFECTED BY 40 AGGRESSIVE PRICE COMPETITION. SOLID 26.8% 22.8% 30 20 GROWTH IN P
Slide 33: Consumer Goods Ecuador: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q1 2021 Performance REVENUE & GROSS MARGIN (PEN Million) -2.4% 55 GROSS PROFIT 39 38 50 INCREASED YOY DUE TO 45 39.0% A POSITIVE EFFECT 40 35.6% FROM CHANNEL MIX AND 35 THE DIRECT 30 DISTRIBUTION OF 25 Q1 ’20 Q1 ’21 INTRADEVCO EBITDA & EBI
Slide 34: Consumer Goods Argentina: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS Consumer Goods Argentina: Q1 2021 Performance REVENUE & GROSS MARGIN (PEN Million) -4.3% 160 140 SALES DECLINE 108 104 120 EXPLAINED BY 100 80 DEVALUATION OF THE 27.8% 60 ARS PARTIALLY OFFSET 40 13.5% 20 BY HIGHER VOLUME AND 0 MINOR PRICE ACTIONS. Q1 ’20 Q1 ’21 -
Slide 35: Consumer Goods Brazil: Q1 2021 Performance
Q1 ’21 OPERATING RESULTS BY BUSINESS Consumer Goods Brazil: Q1 2021 Performance REVENUE & GROSS MARGIN (PEN Million) 82 -15.9% 90 80 SALES IMPACTED BY 69 70 LOWER DEMAND FOR 60 50 PASTA AND 30.8% 40 DEVALUATION. LOWER 21.1% 30 20 PROFITABILITY DUE TO 10 COSTS INFLATION AS A 0 Q1 ’20 Q1 ’21 RESULT OF
Slide 36: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 37: Debt Breakdown
APPENDIX Debt Breakdown TOTAL Dec 19 Dic 20 Mar 21 DEBT1 S/ 4,191mm S/ 3,961mm S/ 3,796mm 8.5% 10.2% 10.3% 11.7% 5.1% 6.9% International Bonds 8.1% 2.6% By Source1 Local Bonds 12.4% Working Capital Debt LT Bank Debt 31.2% Leases (IFRS 16) 29.9% 23.8% 43.6% 46.7% 49.0% 16.1% 15.8% 12.7% 0.7% 0.9% 0.6
Slide 38: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO (PEN Million) 1,329 1,329 1,314 1,295 1,182 1,282 Alicorp’s financial guidelines aim to: 219 238 236 239 240 243 1. Maintain investment grade rating 6.06x 5.59x 5.56x 5.41x 5.27x 2. Reduce financial expenses 4.92x 3. Shift our de
Slide 39: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 CAPEX3 (PEN Million) (PEN Million) • The increase in payables for S/ 562 million is mainly explained by 200 PP&E Intangibles PP&E+Intagibles/Sales 7.0 % longer tenors with our suppliers and pre-export contracts in our crushing business.
Slide 40: 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/ 547 S/ -1492 S/ -269 2,400 1,900 792 1,400 18(1) 92 153 4 900 3 149 22(1) 1,271 1,118 400 969 222 3 747 50 697 700 700 571 571 -100 -600
Slide 41: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1 OPERATING & FREE CASH FLOW CONVERSION1 (PEN Million) 140% 120% 3 100% 85% 91% 87% FY 2019 FY 2020 Q1 2021 80% 60% 40% 67% 59% 20% 52% 0% 4 1,087 1,107 2019 2020 Q1 2021 3 1,072 2 870 2 2 6 6 718 686 Operating Cash Flow / EBITDA Free Cash Flow
Slide 42: Q1 2021 Milestones
APPENDIX Q1 2021 MILESTONES
Slide 43: 1Q 2021 Milestones
APPENDIX 1Q 2021 Milestones RESEARCH & DEVELOPMENT AWARDS & RECOGNITION 21 products were launched as part of our innovation strategy, being the most remarkable: AMELIA´S SPECIALE LASAGNA CASINO COOKIES RE INTRODUCED IN (BRAZIL) THE BOLIVIAN MARKET ALICORP WAS RECOGNIZED AS THE LEADING COMPANY IN THE
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