Alicorp Saa · BVL:ALICORC1
Alicorp Saa — Alicorp — Q3 2021 Earnings Presentation
43 slides from Alicorp Saa's earnings presentation, Nov 3, 2021
Slide 1: Earnings Call Third Quarter 2021
EARNINGS CALL THIRD QUARTER 2021 November 3rd, 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 Q3 ’21 HIGHLIGHTS 1 Q3 ’21 CONSOLIDATED OPERATING RESULTS 2 Q3 ’21 OPERATING RESULTS BY BUSINESS 3 SOLID LIQUIDITY AND STRONG BALANCE SHEET 4 OUR VIEW FOR 2021 5 APPENDIX 6
Slide 4: Q3 '21 Highlights
Q3 ’21 HIGHLIGHTS
Slide 5: Relevant Events
Q3 ’21 HIGHLIGHTS Relevant Events "Negrita", our emblematic brand, is now Successful migration of Intradevco and three "Umsha" strengthening our anti-racism and other main subsidiaries to SAP S4/Hana inclusion commitments Vaccination campaign making great progress COVID-19 cases in Peru and the Lata
Slide 6: Constant increase in international prices of commodities
Q3 ’21 HIGHLIGHTS Global phenomenon: Inflationary pressure across the supply chain CONSTANT INCREASE IN Main Agricultural Commodities1, Oil2 & Resins3 Monthly Average Prices Index 100= Jan 2019 INTERNATIONAL PRICES OF 240 COMMODITIES 220 ▪ Commodity prices 200 increasing for 16 months in HIGHER OIL
Slide 7: Global inflationary pressure coupled with deterioration of LatAm economies
Q3 ’21 STRATEGIC HIGHLIGHTS GLOBAL INFLATIONARY PRESSURE COUPLED WITH DETERIORATION OF THE LATAM ECONOMIES THE COVID-19 PANDEMIC GDP GROWTH (YoY%)1 REPRESENTED THE 11.4 BIGGEST HIT TO THE PERU POLITICAL UPDATE 5.3 2020 ANDEAN REGION 3.4 3.5 3.1 2.7 2021E 2022E ▪ Replacement of the Prime Minister ECO
Slide 8: M&A – Pastificio Santa Amalia
M&A – Pastificio Santa Amalia Alicorp sold its Brazilian subsidiary PSA to Camil Alimentos S.A. Q3 ‘21 Brazilian assets classified as IN 2012, WE ACQUIRED PSA1, 36.5% 41.5% “available for sale” ASSET CHARACTERISTICS A LEADING PLAYER IN BRAZIL SOM2 SOM2 Results reported in the “net results from disco
Slide 9: Q3 '21 Consolidated Operating Results
Q3 ’21 CONSOLIDATED OPERATING RESULTS
Slide 10: Consolidated Revenue – Q3 '21 vs. Q3 '20
Q3’21 CONSOLIDATED OPERATING RESULTS Consolidated Revenue – Q3 '21 vs. Q3 '20 STRONG REVENUE GROWTH EXPLAINED BY THE SOLID Q3 PERFORMANCE SUMMARY – REVENUE in million PEN PERFORMANCE OF OUR +27.3% CRUSHING AND 9,034 AQUAFEED UNITS AND THE RECOVERY OF B2B AND CGI UNITS +36.7% 7,096 +30.5% 566 3,472 T
Slide 11: Consolidated EBITDA – Q3 '21 vs. Q3 '20
Q3’21 CONSOLIDATED OPERATING RESULTS Consolidated EBITDA – Q3 '21 vs. Q3 '20 CONSOLIDATED EBITDA Q3 PERFORMANCE SUMMARY – EBITDA in million PEN REMAINS FLAT YoY EXPLAINED BY THE DETERIORATION IN OUR +11.9% CONSUMER GOODS 998 UNITS, OFFSET BY THE +1.0% 892 STRONG RECOVERY OF 359 27 -12.9% 73 362 OUR
Slide 12: Consolidated Net Income – Q3 '21 vs. Q3 '20
Q3’21 CONSOLIDATED OPERATING RESULTS Consolidated Net Income – Q3 '21 vs. 2Q20 Q3 PERFORMANCE SUMMARY – NET INCOME in million PEN +10.9% 280 THE DECREASE IN NET 252 INCOME IS EXPLAINED -36.5% MAINLY BY LOWER -34.6% OPERATING PROFIT IN 158 2 156 25 ADDITION TO HIGHER 24 NET FINANCIAL 5 102 2 100 EXPE
Slide 13: Q3 '21 Operating Results by Business
Q3 ‘21 OPERATING RESULTS BY BUSINESS
Slide 14: Consumer Goods Peru: Update on Market Dynamics
Q3 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Update on Market Dynamics Market Volume Evolution (%) of Main Categories Market Share Recovery vs Prior Year (p.p.change) 70.9 59.6 Share of Share of Share of Volume Value Value JA’21 35.2 36.3 YTD1 YTD1 vs JA’202 YTD MARKET SHARE OF 18.4 23.
Slide 15: Consumer Goods Peru: Q3 Performance
Q3 ´21 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q3 Performance CONTEXT ACTION PLAN EXPECTED OUTCOME ▪ Economic ▪ Alicorp launches “Marcas a tu lado”, ▪ Offer Peruvian families high quality products Increases in currency exchange rates and focusing in four pillars: at affordable prices main
Slide 16: Consumer Goods Peru: Q3 Performance
Q3 '21 OPERATING RESULTS BY BUSINESS Consumer Goods Peru: Q3 Performance DECREASE IN REVENUE REVENUE & GROSS MARGIN (PEN million) DRIVEN BY VOLUME +7.2% DECLINES AND TIERING- 2,594 2,780 DOWN EFFECT IN KEY CATEGORIES IN A -7.3% CONTEXT OF 991 918 33.3% 28.5% CONSUMPTION CONTRACTION, PARTIALLY 32.8%
Slide 17: Consumer Goods International: Market Dynamics
Q3 ‘21 OPERATING RESULTS BY BUSINESS Consumer Goods International: Market Dynamics HIGHER COSTS NEGATIVELY ▪ Smuggling from Argentina continues to put pressure on local domestic oil IMPACTED MARGINS sales and prices ACROSS GEOGRAPHIES ▪ Price controls limit manufactures options to offset higher raw
Slide 18: Consumer Goods International: Q3 Performance
Q3 '21 OPERATING RESULTS BY BUSINESS Consumer Goods International: Q3 Performance REVENUE & GROSS MARGIN INCREASE IN Q3 REVENUE (PEN million) +5.1% DRIVEN BY HIGHER SALES 1,183 VOLUME IN BOLIVIA, 1,125 ARGENTINA AND OTHER +21.4% GEOGRAPHIES 473 389 27.9% 26.9% 16.6% 18.8% EBITDA AFFECTED BY 3Q20 3Q2
Slide 19: B2B: Update on Market Dynamics
Q3 ‘21 OPERATING RESULTS BY BUSINESS B2B: Update on Market Dynamics Restaurant GDP & Food Service1 Revenue Growth Active Clients Evolution Index 100=2019 (in thousands) 142 141 134 122 +9.1 107 100 96 99 FOOD SERVICE INDUSTRY 89 87 90 85 90 76 78 82 27.0 GROWING DESPITE THE 56 66 67 63 63 64 59 19.0
Slide 20: B2B: Q3 Performance
Q3 '21 OPERATING RESULTS BY BUSINESS B2B: Q3 Performance REVENUE & GROSS MARGIN RECOVERY OF THE B2B (PEN million) +39.9% PLATFORM CONTINUES 1,557 DRIVEN BY AN 1,113 INCREASE IN SALES +45.6% VOLUME 606 416 PRICING STRATEGIES 17.4% 16.4% 16.1% 17.2% 3Q20 3Q21 YTD20 YTD21 ALLOWED FOR AN EBITDA & EBITDA
Slide 21: Aquafeed: Update on Market Dynamics
Q3 ‘21 OPERATING RESULTS BY BUSINESS Aquafeed: Update on Market Dynamics YoY % growth SHRIMP SALMON SHRIMP: GROWTH IN Shrimp Exports in Ecuador (MT K and US$ MM) Salmon Exports in Chile (MT K and US$ MM) EXPORTS VALUE +78% 11% -10% +22% -14% 1,388 1,316 1,351 EXPLAINED BY HIGHER -2% -6% 1,226 -22% 1
Slide 22: Aquafeed: Q3 Performance
Q3 '21 OPERATING RESULTS BY BUSINESS Aquafeed: Q3 Performance SOLID REVENUE REVENUE & GROSS MARGIN (USD million) GROWTH YoY DUE TO +23.8% SALES VOLUME 515 INCREASE IN OUR +85.0% 416 SHRIMP AND SALMON 224 FEED BUSINESSES AND 121 20.1% 16.2% PRICE ACTIONS 17.6% 15.5% 3Q20 3Q21 YTD20 YTD21 DESPITE THE
Slide 23: Crushing: Q3 Performance
Q3 '21 OPERATING RESULTS BY BUSINESS Crushing: Q3 Performance VOLUME SOLD REVENUE OUTSTANDING GROWTH (Thousands of MT) (USD million) DUE TO VOLUME +9.5% +70.7% INCREASE, PRODUCT OF 291 318 204 A GREATER HARVEST 64 99 +56% 120 65 AND HIGH COMMODITY 32 PRICES 227 219 -3% 139 88 VALUE CREATION AND DIFF
Slide 24: Solid Liquidity and Strong Balance Sheet
SOLID LIQUIDITY AND STRONG BALANCE SHEET
Slide 25: Leverage and credit rating
SOLID LIQUIDITY AND STRONG BALANCE SHEET Leverage and credit rating INDEBTEDNESS EVOLUTION CREDIT RATING AS OF Q3 ‘21 LEVERAGE INCREASED Net Debt / EBITDA1,2,6 Global TO FINANCE HIGHER (Excluding Crushing Business Raw WORKING CAPITAL Material Inventory) NEEDS - MAINLY DUE TO THE GROWTH IN RAW 2.99x
Slide 26: Liquidity and working capital performance
SOLID LIQUIDITY AND STRONG BALANCE SHEET Liquidity and working capital performance LIQUIDITY WORKING CAPITAL3 (Days) TOTAL CASH S/ 1,427 million Accounts Receivable Inventories Accounts Payable DEBT COVERAGE 1 1.51x2 over next 12 months 113 116 121 120 122 0.86x2 over next 24 months Access to fundin
Slide 27: Our View Going Forward
OUR VIEW GOING FORWARD
Slide 28: Efficiency Efforts
Q3 ’21 STRATEGIC HIGHLIGHTS Efficiency Efforts Multi Annual Efficiencies Program with a Target of more than PEN 200 MM in run rate savings by 2023 KEY INITIATIVES GIVEN THE CURRENT ▪ Pricing PRESSURE WE ARE REVENUE ▪ Promotions EXPERIENCING ON GROSS MARGIN; ALICORP WILL BE GEARING UP SEVERAL ▪ Procu
Slide 29: 2021 Guidance
OUR VIEW FOR 2021 2021 Guidance DOUBLE DIGIT CONSOLIDATED REVENUE GROWTH ALL THE BUSINESSES´ REVENUES GROWING DOUBLE DIGIT WITH THE EXCEPTION OF CGI GROWING HIGH SINGLE DIGIT DOUBLE DIGIT CONSOLIDATED EBITDA GROWTH CAPEX AROUND USD 130 MILLION 29
Slide 30: Appendix
APPENDIX
Slide 31: CGI: Q3 '21 and YTD '21 Performance by Geography
APPENDIX CGI: Q3 ‘21 AND YTD ‘21 PERFORMANCE BY GEOGRAPHY
Slide 32: Consumer Goods Bolivia: Q3 Performance
Q3 '21 OPERATING RESULTS BY BUSINESS Consumer Goods Bolivia: Q3 Performance REVENUE & GROSS MARGIN HIGHER REVENUE (PEN Million) +0.5% EXPLAINED BY THE 501 503 RECOVERY OF VOLUME AND SPECIFIC PRICE +10.8% ACTIONS TO PARTIALLY 176 195 27.8% OFFSET COSTS 27.8% 16.7% 19.1% INCREASES MARGINS AFFECTED BY
Slide 33: Consumer Goods Ecuador: Q3 Performance
Q3 '21 OPERATING RESULTS BY BUSINESS Consumer Goods Ecuador: Q3 Performance REVENUE & GROSS MARGIN (PEN Million) +11.3% SOLID REVENUE GROWTH FUELED BY 133 120 +11.4% POSITIVE RESULTS ON 52 36.0% 33.4% MARKET SHARE GAINS IN 46 36.5% 29.9% PASTAS AND MAYONNAISE 3Q20 3Q21 YTD20 YTD21 EBITDA & EBITDA MA
Slide 34: Consumer Goods Argentina: Q3 Performance
Q3 '21 OPERATING RESULTS BY BUSINESS Consumer Goods Argentina: Q3 Performance REVENUE & GROSS MARGIN (PEN Million) +10.4% DESPITE THE INCREASE IN 375 340 SALES VOLUME; +49.6% MACROECONOMIC 158 HEADWINDS, THE 106 27.1% 12.2% CONTRACTION OF LOCAL 22.8% 11.8% CONSUMPTION, PRICE 3Q20 3Q21 YTD20 YTD21 CO
Slide 35: Debt & Cash Management
APPENDIX DEBT & CASH MANAGEMENT
Slide 36: Debt Breakdown
APPENDIX Debt Breakdown TOTAL Dec 19 Dic 20 Sep 21 DEBT1 S/ 4,191mm S/ 3,961mm S/ 5,895mm 8.5% 10.2% 6.8% 11.7% 5.1% International Bonds 8.1% 22.8% By Source1 Local Bonds 12.4% Working Capital Debt LT Bank Debt 32.0% Leases (IFRS 16) 29.9% 23.8% 43.6% 18.4% 46.7% 20.0% 16.1% 15.8% 20.3% 0.7% 0.9% 0.
Slide 37: Debt Management
APPENDIX Debt Management FINANCIAL GUIDELINES FINANCIAL EXPENSES RATIO4 (PEN Million) 1,314 1,295 1,182 1,282 1,286 1,288 Alicorp’s financial guidelines aim to: 236 239 240 243 249 283 1. Maintain investment grade rating 5.56x 5.41x 5.27x 5.16x 4.92x 2. Reduce financial expenses 4.56x 3. Shift our d
Slide 38: Working Capital and CAPEX Management
APPENDIX Working Capital and CAPEX Management WORKING CAPITAL1 CAPEX3 (PEN Million) (PEN Million) • Inventory growth of S/ 861 million is mainly explained by the build up of inventory in our crushing business due to a combination of a better harvest and higher commodity prices. 600 PP&E Intangibles
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/ 501 S/ -3692 S/ 724 3 2,400 1,594 1,900 1,107 216 28(1) 1,400 4 207 654 18(1) 2,081 900 399 1,471 1,428 1,427 1,072 369 400 703 703 571
Slide 40: OCF & FCF Evolution
APPENDIX OCF & FCF Evolution OPERATING & FREE CASH FLOW1,7 OPERATING & FREE CASH FLOW CONVERSION1,7 (PEN Million) 2019 4 2020 Q3 2021 3 140% 120% 3 100% 85% 91% FY 2019 FY 2020 Q3 2021 80% 54% 60% 40% 67% 59% 0% 20% 0% 14% 1,087 1,072 2 870 2 6 6 718 701 Operating Cash Flow / EBITDA Free Cash Flow /
Slide 41: Q3 '21 Milestones
APPENDIX Q3 ‘21 MILESTONES
Slide 42: 3Q '21 Milestones
APPENDIX 3Q ‘21 Milestones RESEARCH & DEVELOPMENT AWARDS & RECOGNITION 32 products were launched / relaunched as part of our innovation strategy, being the most remarkable: “Casino”, a new and bigger “Alpesa”, New white mayonnaise for presentation in two flavors (Peru) Venezuelan consumers (Peru) Al
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