Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Alicorp — Q2 2022 Earnings Presentation
43 slides from Alicorp Saa's earnings presentation, Aug 2, 2022
Slide 1: Earnings Call Second Quarter 2022
EARNINGS CALL SECOND QUARTER 2022 August 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 Q2 '22 HIGHLIGHTS 1 Q2 '22 CONSOLIDATED OPERATING RESULTS 2 Q2 '22 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2022 5 APPENDIX 6
Slide 4: Q2 '22 Highlights
alicorp 02°22 HIGHLIGHTS
Slide 5: Relevant Events
Q2 '22 HIGHLIGHTS Relevant Events FOURTH COVID-19 WAVE IN PERU WITHOUT MAJOR IMPACT ON ECONOMIC ACTIVITY TRUCKERS’ STRIKES IN PERU CONTINUE DISPERSED AND HAVE NOT ESCALATED MATERIALLY Foto PERU’S ANNUAL GENERAL INFLATION RATE REACHES 9.3%, AS OF JUNE YOY, AND 14.4% ONLY FOR THE FOOD AND BEVERAGE COM
Slide 6: Our Journey Towards a More Sustainable Company
Q2 '22 HIGHLIGHTS We continue to progress in Our Journey Towards a More Sustainable Company Our roadmap STRATEGIC PILLARS IN 2021 WE STARTED A CLOSING GAPS TO THE EXPECTATIONS OF KEY ALIGNMENT WITH CORPORATE STRATEGY PROCESS OF REVISING, STAKEHOLDERS WELLBEING STRENGTHENING AND PRIORITIZING OUR SUST
Slide 7: Sustainability initiatives
Q2 '22 HIGHLIGHTS Sustainability initiatives “OLLAS QUE DESARROLLAN” ✓ Aimed at supporting soup kitchens in communities of great need ✓ Plan to reach 240 kitchens, benefiting 20 thousand people OUR DIFFERENT ✓ 500 women trained in the first twelve weeks INITIATIVES, GUIDED BY ✓ Operating model trans
Slide 8: Resilience in our results amid cost pressure
Q2 '22 HIGHLIGHTS Resilience in our results in the context of material impacts on our cost structure DESPITE CONTINUOUS COGS PER MT - Ex. Crushing GROSS PROFIT PER MT - Ex. Crushing (PEN) (PEN) +4% +11% COST INCREASES DUE 3,791 950 TO COMMODITY & 3,661 3,630 917 3,426 851 829 3,069 807 2,833 754 ENE
Slide 9: Q2 '22 Strategic Highlights: Digital Initiatives
Q2 ’22 STRATEGIC HIGHLIGHTS Digital Initiatives Annualized 2022 GMV1: PEN 110.5 20 trade agreements with business RESTAURANTS AND MM, 6.8x vs 2021 partners BAKERIES Over 4,500 acquired customers with June 2022 average ticket: PEN 3,375 Digital ecosystem to 73% of retention rate +90% vs June 2021 bet
Slide 10: Q2 '22 Consolidated Operating Results
Q2 ’22 CONSOLIDATED OPERATING RESULTS
Slide 11: Consolidated Revenue Q2 '22 vs Q2 '21
Q2 '22 CONSOLIDATED OPERATING RESULTS Consolidated REVENUE – Q2 '22 vs. Q2 '21 STRONG REVENUE GROWTH DRIVEN BY THE Q2 PERFORMANCE SUMMARY – REVENUE REMARKABLE PEN million PERFORMANCE IN OUR +35.9% CRUSHING, AQUAFEED 7,258 AND B2B UNITS AND THE RECOVERY OF OUR 5,340 CONSUMER GOODS +36.6% UNITS 363 3,
Slide 12: Consolidated EBITDA Q2 '22 vs Q2 '21
Q2 '22 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q2 '22 vs. Q2 '21 Q2 PERFORMANCE SUMMARY – EBITDA CONSOLIDATED EBITDA PEN million GREW YoY EXPLAINED +31.5% BY OUR B2B, 836 CRUSHING, AQUAFEED AND CGP UNITS 635 +48.0% RESULTS REFLECT 39 1 419 HIGHER GROSS PROFIT 2 32 38 26 AND OUR EFFICIEN
Slide 13: Consolidated Net Income Q2 '22 vs Q2 '21
Q2 '22 CONSOLIDATED OPERATING RESULTS Consolidated NET INCOME – Q2 '22 vs. Q2 '21 Q2 PERFORMANCE SUMMARY – NET INCOME PEN million +68.4% INCREASE IN NET 302 INCOME IS EXPLAINED BY HIGHER OPERATING PROFIT PARTIALLY 3.2x 179 OFFSET BY HIGHER 124 9 142 FINANCIAL -25 -8 -2 DERIVATIVES, EXCHANGE RATE AND
Slide 14: Q2 '22 Operating Results by Business
Q2 ‘22 OPERATING RESULTS BY BUSINESS
Slide 15: Consumer Goods Peru: Update on Market Dynamics
Q2 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics ALICORP’S REVENUE CONTINUES ITS RECOVERY CHANNEL MIX: Traditional channel gains share in 2Q22 CONSUMER GOODS 16.3 PERU CONTINUES TO 11.8 8.3 3Q21 4Q21 1Q22 2Q22 DELIVER STRONG 11.6 5.5 6.9 3.5 REVENUE GROWTH 3.4 3.8
Slide 16: Consumer Goods Peru: Q2 Performance
Q2 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q2 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN PEN million PEN million REVENUE INCREASED +12.4% -6.3% DUE TO PRICING 1,862 2,092 295 276 ACTIONS IN ADDITION +16.3% +21.9% TO PRODUCT RIGHT 952 1,107 120 146 SIZING AND BETTER 29.8
Slide 17: Consumer Goods International: Market Dynamics
Q2 '22 OPERATING RESULTS BY BUSINESS Consumer Goods International: Market Dynamics IN BOLIVIA, WE CONTINUE GROWING Share of Volume Share of Value OUR HOME CARE ▪ Persistent growth in Home Care categories due to volume increases (+47% YoY) and pricing initiatives driving share gains MA22 vs ND21 MA22
Slide 18: Consumer Goods Bolivia: Q2 Performance
Q2 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q2 Performance REVENUE & GROSS MARGIN EBITDA & EBITDA MARGIN PEN million PEN million REVENUE INCREASED +8.5% -20.2% DUE TO HIGHER HOME 308 334 20 16 CARE VOLUME, MAINLY +7.6% -7.0% DETERGENTS (+46% 161 174 10 9 YoY), AND PRICING 18.7% 19.9
Slide 19: Consumer Goods Ecuador: Q2 Performance
Q2 '22 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q2 Performance REVENUE GROWTH REVENUE & GROSS MARGIN PEN million +10.3% DRIVEN BY PRICING 90 82 INITIATIVES IN KEY +15.1% 51 CATEGORIES TO OFFSET 44 35.6% 27.5% HIGH COMMODITY 32.7% 24.3% PRICES GROSS MARGINS 2Q21 2Q22 YTD21 YTD22 EBITDA &
Slide 20: B2B: Update on Market Dynamics
Q2 '22 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics Restaurant GDP & Food Service1 Revenue Growth Alicorp’s B2B Sales Volume2 Index 100 = 2019 Thousands of MT B2B BUSINESS SURPASSES 184 PRE-PANDEMIC LEVELS 147 158 147 160 142 106% 171 102% 166102% SUPPORTED BY OUR BRAND 140 139 142 1
Slide 21: B2B: Q2 Performance
Q2 '22 OPERATING RESULTS BY BUSINESS B2B: Q2 Performance REVENUE & GROSS MARGIN PEN million +36.9% 1,302 PRICING STRATEGIES +30.2% 951 AND BUSINESS 692 DECOMPLEXITY 531 CONTINUE BOOSTING 15.1% 16.2% 15.9% 15.2% PROFIT IMPROVEMENT 2Q21 2Q22 YTD21 YTD22 ON A YoY BASIS, DESPITE SIGNIFICANT EBITDA & EBI
Slide 22: Aquafeed: Update on Market Dynamics
Q2 '22 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics YoY % growth SHRIMP SALMON SHRIMP: GROWTH IN EXPORT VOLUME AND SHRIMP EXPORTS - ECUADOR SALMON EXPORTS - CHILE VALUE DRIVEN BY +79% +74% +81% +43% -10% +11% +33% +37% +6% HIGHER GLOBAL DEMAND 2,500 1,747 2,500 2,000 1,607 1,645
Slide 23: Aquafeed: Q2 Performance
Q2 '22 OPERATING RESULTS BY BUSINESS Aquafeed: Q2 Performance REVENUE & GROSS MARGIN USD million +59.4% SOLID REVENUE 463 GROWTH YoY DUE TO +57.2% HIGHER SALES VOLUME, 290 253 MIGRATION TO MORE 161 14.7% VALUE-ADDED 16.3% 15.1% 16.6% PRODUCTS AND PRICE 2Q21 2Q22 YTD21 YTD22 ACTIONS TO PARTIALLY EBIT
Slide 24: Crushing: Q2 Performance
Q2 '22 OPERATING RESULTS BY BUSINESS Crushing: Q2 Performance VOLUME SOLD REVENUE Thousands of MT USD million +26.6% +65.0% 332 286 262 69 +15% 53 +35% REMARKABLE REVENUE 60 174 40 GROWTH DUE TO 202 263 +30% 134 233 +74% HIGHER VOLUME AND STRONG SHARE IN A 2Q21 2Q22 2Q21 2Q22 Internal Consumption Th
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 MATURITY PROFILE AS OF JUNE 20222 PEN million 1,217 1,050 305 874 CONSERVATIVE DEBT 811 774 689 417 136 MANAGEMENT WITH TOTAL CASH 614 546 826 INVESTMENT GRADE 589 639 S/ 825 million 433 258 152 RATINGS 2022 2023 2024 2025 2026 2027
Slide 27: Leverage and credit rating: indebtedness evolution
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating INDEBTEDNESS EVOLUTION Net Debt / EBITDA1,2,4 PEN million 3,5 7,000 3.4x 3 3.5x 3.3x 4 3.0x 6,000 2.6x 3 ALTHOUGH OUR RMI’S 5,000 4,265 4,468 4,340 4,590 4,000 3,641 2 SEASOINALITY 3,000 1 2,000 IMPACTED OUR 1,000 - LEVERAGE, NET DE
Slide 28: Working capital – Cash conversion cycle
SOLID LIQUIDITY AND STRONG BALANCE SHEET Working capital – Cash conversion cycle (CCC) WORKING CAPITAL1,2 Days DESPITE THE HIGHER COMMODITY PRICES 123 124 124 124 124 Accounts Payable AND LOGISTIC DISRUPTIONS, 104 107 107 107 107 Inventories WE WERE ABLE TO IMPROVE OUR CASH CONVERSION CYCLE IN ONE D
Slide 29: Our View Going Forward
OUR VIEW GOING FORWARD
Slide 30: Guidance 2022
OUR VIEW FOR 2022 Guidance 2022 REVENUE EBITDA CAPEX LEVERAGE >20% GROWTH APPROXIMATELY APPROXIMATELY 2.5X NET DEBT/EBITDA 20% GROWTH, USD 70 MM COUPLED WITH EXCLUDING DOUBLE DIGIT AQUAFEED EBITDA PER MT GROWTH VS USD 125 MM 2021 INCLUDING AQUAFEED
Slide 31: Appendix
APPENDIX
Slide 32: Bolivia sum of the parts
Q2 '22 OPERATING RESULTS BY BUSINESS Bolivia sum of the parts VOLUME SOLD REVENUE Thousands of MT USD million REMARKABLE RESULTS EXPLAINED BY THE +24.5% +54.0% PERFORMANCE OF OUR 357 332 53 286 69 +35% CRUSHING UNIT, DUE TO +15% 60 216 A BETTER HARVEST, 40 233 +74% 263 GREATER MARKET 202 +30% 134 SH
Slide 33: CGI: Q2 '22 Performance by Geography
APPENDIX CGI: Q2 '22 PERFORMANCE BY GEOGRAPHY
Slide 34: Consumer Goods International: Q2 Performance
Q2 '22 OPERATING RESULTS BY BUSINESS Consumer Goods International: Q2 Performance REVENUE & GROSS MARGIN PEN million +9.6% 487 534 INCREASE IN REVENUE +11.6% DRIVEN BY BOLIVIA 256 286 AND ECUADOR’S PRICE 23.7% 20.1% ACTIONS TO OFFSET 21.4% 20.2% COST INCREASES IN 2Q21 2Q22 YTD21 YTD22 KEY CATEGORIES
Slide 35: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 36: Debt Breakdown
APPENDIX Debt Breakdown TOTAL Dec 20 Dec 21 Jun 22 DEBT1 S/ 3,961mm S/ 5,245mm S/ 5,415mm 7.5% 6.6% 5.1% 10.2% 8.1% 29.0% International Bonds 30.7% By Source1 Local Bonds Working Capital Debt 30.0% 34.3% LT Bank Debt 29.9% Leases (IFRS 16) 5.3% 46.7% 13.7% 22.2% 20.7% 15.8% 15.0% 17.4% 0.9% 0.2% 0.1
Slide 37: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO3 (PEN Million) 1,286 1,288 1,315 1,379 1,515 Alicorp’s financial guidelines aim to: 249 283 307 327 329 1. Maintain investment grade rating 2. Reduce financial expenses 5.16x 4.56x 4.28x 4.60x 4.21x 3. Shift our debt towards func
Slide 38: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 ,2 CAPEX4 (PEN Million) (PEN Million) • The growth in inventories for S/ 1,122 million is mainly explained by supply chain disruptions, high commodity prices and the volume 300 PP&E Intangibles PP&E+Intagibles/Sales 8.0 % increase in our
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/ 161 S/ -561 S/ -185 2,400 1,900 401 2 1,400 223 900 108 132 56 164 1,199 3 1,091 1,035 1,035 1,094 244 400 905 905 849 825 -100 -600 Net
Slide 40: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1,6 OPERATING & FREE CASH FLOW CONVERSION1,6 (PEN Million) 2020 2021 3 Q2 20223 110% 91% 90% 70% 54% 3 3 FY 2020 FY 2021 Q2 2022 50% 40% 30% 59% 53% 10% 23% -10% 1,072 5 5 2 821 797 Operating Cash Flow / EBITDA Free Cash Flow / EBITDA 718 522 2
Slide 41: Q2 '22 Milestones
APPENDIX Q2 '22 MILESTONES
Slide 42: Q2 '22 Milestones
APPENDIX Q2 ’22 Milestones PRODUCT RESEARCH & DEVELOPMENT AWARDS & RECOGNITION 8 products were launched / relaunched as part of our innovation strategy, being the most remarkable: Alicorp was recognized in three categories (Line Extensions, Food, and Beauty and Personal Care) of the Effie Awards Per
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