Alicorp First Quarter 2020 Consolidated Financial Statements

LIMA, PERU / ACCESSWIRE / May 13, 2020 / Alicorp S.A.A. ("the Company" or "Alicorp") (BVL: ALICORC1 and ALICORI1) announced today its unaudited financial results corresponding to the First Quarter 2020 (Q1 '20). 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).

FINANCIAL HIGHLIGHTS

• Consolidated Revenue grew 10.0% YoY in the Q1 '20, while Volume grew 11.5% YoY, reflecting growth across all business units: i) Consumer Goods Peru (+12.5% YoY), ii) Consumer Goods International (+7.7% YoY), iii) Aquafeed (+8.1% YoY), iv) B2B (+4.0% YoY), and v) Crushing (+20.1% YoY).
• Gross Profit grew 15.0% YoY, while Gross Margin increased 1.1 p.p. compared to Q1 '19 explained by i) significant revenue growth across all our businesses and ii) higher Gross Margins in our CGI, Aquafeed, and Crushing units.
• Reported EBITDA decreased 13.5% YoY, while Reported EBITDA Margin was 8.6%, mainly explained by non-recurring expenses related to COVID-19 and a one-time expense related to a negative verdict from Brazilian authorities about a tax contingency from previous years. Excluding these effects, Normalized EBITDA increased 18.9% YoY in Q1 '20 and EBITDA Margin reached 14.3%, a 1.2 p.p. growth YoY.
• Reported Net Income totaled S/ 10 million in Q1 '20 (-89.8% YoY), explained by i) lower Consolidated EBITDA, ii) higher net financial expenses, and iii) an exchange loss. Normalized Net Income totaled S/ 114 million in Q1 '20, a 11.7% increase YoY, while Normalized Net Margin reached 4.7% (+0.1 p.p. YoY).
• Earnings per Share (EPS) decreased from S/ 0.107 in Q1 '19 to S/ 0.010 in Q1 '20.
• As of March 2020, Net Debt¹ decreased S/ 334 million compared to December 2019, reaching S/ 3,017 million, mainly due to higher Cash and Cash Equivalents as a result of greater collections from sales and working capital efficiencies. Net Debt-to-EBITDA ratio decreased from 2.41x² as of December 2019 to 2.15x³ as of March 2020.

RECENT EVENTS

• The Company launched/revamped 21 products or lines, 12 in Consumer Goods Peru, 6 in Consumer Goods International and 3 in B2B.
• In the Q1 '20, Alicorp was recognised by Merco Peru as one of the "Top 10 companies" in the Social Responsibility and Good Corporate Governance Ranking, and the top company in the Food sector.

OUR RESPONSE TO THE COVID-19 CRISIS

• The outbreak of COVID-19 has resulted in a tragic humanitarian crisis for Latin America and the world, which will have a tremendous impact on the economies across the region.
• Under these challenging circumstances, we are committed to ensuring the health and safety of our people, maximizing the availability of essential goods, and helping communities to reduce contagion.
• These priorities have guided our Business Continuity Plan, based on four fronts:

1. Our People and Community: We have established safety measures for our plant workers, sales force and administrative staff, including strict daily cleaning and disinfection protocols in all our spaces, and mandatory home office implementation for almost all administrative employees. We have also designated S/ 15 million for donations of products destined to help vulnerable populations and those taking care of the population's health and safety, in Peru and all our other geographies.
2. Supply and Logistics: We have quickly adapted our production to the current situation and restrictions that come with it, prioritizing lines and SKUs according to market and demand shifts, in close coordination with our suppliers to ensure the supply of materials and implement risk management throughout the supply chain end-to-end.
3. Clients and Consumers: Our businesses have been impacted in different ways by the COVID-19 crisis. The shift from out-of-home-consumption to at-home consumption and stocking up during the lockdown has benefitted our Consumer Goods unit, but negatively impacted our B2B business. Our Aquafeed business has been impacted by the lower price of shrimp, but is expected to pick up in the next months, while our Crushing unit has been impacted by the strong volatility of commodity prices.
4. Liquidity: As of March 2020 we disbursed approximately USD 200 million of short-term debt in order to increase cash availability for our operations against the potential impacts of COVID-19 on our businesses. Given that this cash was raised in order to adequately fund stress scenarios, we have not had to make use of this cash as of yet. As a result, as of March 2020, we had S/ 1.5 billion in cash, which represented a debt coverage of the principal of debt maturing over the next twelve months of 1.46x.

• What comes next for the remainder of this year will be focused mainly on customer care, our people, supply chain, liquidity and the continuing preparation for the S4/HANA migration. In the longer term, we plan to continue to innovate on our product portfolio in order to adapt to consumer trends and also work on scaling and continue to launch digital channels to meet this new trend towards the e-commerce channel, while also automating our manufacturing plants and warehouses.
• We believe that we are well positioned to overcome what comes ahead and quickly adapt to a new reality, thanks to our unique business model and superior knowledge of local consumers. Most importantly the capabilities of our people and our experienced leadership team are what lead us to be confident that we will get through this difficult time stronger than ever and with many lessons learned.

For a full version of ALICORP's First Quarter 2020 Earnings Release, please visit:
https://www.alicorp.com.pe/en/investors/financial-information/

Date: Thursday, May 14, 2020
Time: 12:00 p.m. Eastern Time
11:00 a.m. Lima Time

Presenting for Alicorp:
Mr. Alfredo Perez, Chief Executive Officer
and other members of the senior management team

To access the call, please dial:
From the U.S.: 1-877-830-2576
From Outside the U.S.: +1-785-424-1726
Conference ID: ALICORP

Alicorp's 1Q20 Results will be accompanied by a webcast presentation available at: https://webcasts.eqs.com/register/alicorp20200512/en

INVESTOR RELATIONS CONTACT

Investor Relations Team
T: (511) 315-0800 Ext.444411
E-mail: [email protected]

About Alicorp

Alicorp is a leading Consumer Goods company headquartered in Peru, with operations in other Latin American countries, such as Argentina, Brazil, Bolivia, Chile, Ecuador, and exports to other countries. The Company focuses on four core businesses: (1) Consumer Products (food, personal and home care products), in Peru, Brazil, Bolivia, Argentina, Ecuador, Colombia and Chile, among other countries, (2) B2B Products (industrial flour, industrial lard, pre-mix and food service products), (3) Aquafeed (fish and shrimp feed) and (4) Oilseeds crushing (soybean and sunflower) which is part of the vertically-integrated consumer business in Bolivia. 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 Earnings Report 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 "anticipate," "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 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.

SOURCE: Alicorp S.A.A. via EQS Newswire