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Second Quarter 2015 Consolidated Financial Statements
Revenues totaled S/. 1,638.8 million, a 4.9% increase versus
Q2 14’. Gross Profit amounted to S/._458.9 million, an
increase of 9.4% YoY. Total debt was reduced by S/._289.7
million, a drop of 10.7% versus December 2014.
Lima, Peru, July 30, 2015. Alicorp S.A.A. (“the Company” or “Alicorp”) (BVL: ALICORC1 and ALICORI1) announced today
its unaudited financial results corresponding to the Second Quarter 2015 (Q2 15’). Financial figures are reported on a
consolidated basis in accordance with International Financial Reporting Standards (“IFRS”) in nominal Peruvian Nuevos
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)).
I. FINANCIAL HIGHLIGHTS
The Company had a 4.9% increase in revenues totaling S/. 1,638.8 million, despite a lower growth environment
across Latin America for 2015. Revenue growth was supported by the following categories: detergents (13.1%
YoY), cereals (24.2% YoY), hair care (28.1% YoY), beauty soap (41.9% YoY), edible oils (7.7% YoY), laundry soap
(10.8% YoY), sauces (5.8% YoY), bulk oils (2.7% YoY), frozen products (26.1% YoY), industrial flours (13.9 % YoY),
shrimp feed (25.2% YoY) and fish feed (11.5% YoY). For the second quarter of 2015, International Revenues
reached 41.1% of Total Revenues due to higher sales mainly in Ecuador, Argentina and Chile. Volume reached
436.1 thousand tons, down 1.2% versus Q2_14’.
In line with Alicorp´s organic growth strategy, we entered the liquid detergents market under the Bolivar brand in
Peru and launched a new brand of beauty soap “Campos Verdes” in Argentina. Overall, the Company launched
and revamped 15 new products (13 for Consumer Goods and 2 for B2B Products) and kept gaining market share
in most of its core categories.
This quarter we recovered Gross Margins by 120 bps and our Gross Profit reached S/. 458.9 million, a 9.4%
INVESTOR RELATIONS CONTACT
Alexander Pendavis
Corporate Finance Manager & IRO
T: (511) 315-0820 Ext.444410
F: (511) 315-0867
E-mail: [email protected]
2
increase compared to S/. 419.5 million in Q2 14’, explained by both the increase in sales in Ecuador, Argentina and
Peru as well as the increase in margin for Consumer Goods Peru and International, especially for our business in
Argentina which presented a positive turnaround. Gross Margin increased to 28.0% in Q2 15’ from 26.8% in Q2
14’.
EBITDA Margins had a reduction of 70 bps amounting to S/. 156.8 million in Q2 15’, a drop of 2.5% compared to
Q2 14’. EBITDA margin decreased from 10.3% in Q2 14’ to 9.6% in Q2 15’. EBITDA was still negatively impacted
by: i) the closing of the remaining December 2014 commodities position and ii) the payment of premiums to hedge
our 2015 inventory.
The various initiatives undertaken in Argentina to jointly reduce costs, increase margins and lower debt,
resulted in an improvement of our performance for the quarter. Revenues increased by 11.5% YoY and EBITDA
increased from S/.0.8 million in Q2 14´to S/. 2.6 million in Q2 15´. Consequently, improved financial results coupled
with the April 15´capital injection allowed the subsidiary to decrease debt by S/. 116.3 million compared to Q4 14´.
We continued our strategy to reduce US$ FX exposure. During the second quarter the Company executed
additional private repurchases (in addition to its January 2015 Tender Offer) for its Senior Notes due 2023,
completing our target of US$ 150.0 million buyback. In addition, we closed S/. 316 million 3.5-year loan to
refinance our short-term US$ and PEN liabilities.
In line with one of our key targets for 2015, the Company reduced its debt by S/. 289.7 million, a 10.7%
reduction versus December 2014, from S/. 2,699.2 million in Q4 14’ to S/._2,409.5 million in Q2 15’. As of June
30, 2015, short-term debt decreased to 6.6% and dollar-denominated debt decreased to 11.3% (post hedge) of
total debt.
3
FINANCIAL INFORMATION
FINANCIAL HIGHLIGHTS
(In millions of Peruvian Nuevos Soles) Q2 2015 Q2 2014 YoY Q1 2015 QoQ
Net Sales 1,638.8 1,562.6 4.9% 1,508.9 8.6%
Gross Profit 458.9 419.5 9.4% 415.7 10.4%
Operating Profit 118.6 132.7 -10.6% 113.8 4.2%
EBITDA 156.8 160.8 -2.5% 149.5 4.9%
Last 12 Months EBITDA 477.9 740.6 -35.5% 483.4 -1.1%
Net Earnings for the Period/Year 7.0 69.5 -89.9% 19.9 -64.8%
Earnings per Share (Common Shares) 0.008 0.081 -89.9% 0.023 -64.8%
Current Assets 2,611.6 2,468.4 5.8% 2,560.5 3.2%
Current Liabilities 1,803.2 2,055.7 -12.3% 1,955.7 -7.8%
Total Liabilities 4,446.2 4,287.6 3.7% 4,391.7 1.2%
Working Capital 808.4 412.7 95.9% 604.8 38.9%
Cash and Cash Equivalents 138.9 104.8 32.5% 112.2 23.8%
Total Financial Net Debt 2,270.6 2,402.6 -5.5% 2,424.5 -6.3%
Total Financial Debt 2,409.5 2,507.4 -3.9% 2,536.7 -5.0%
Bank Loans 273.1 862.3 -68.3% 571.6 -52.2%
Long-Term Debt 2,136.4 1,645.1 29.9% 1,965.1 8.7%
Shareholders' Equity 2,179.0 2,383.5 -8.6% 2,063.5 5.6%
RATIOS
Gross Margin 28.0% 26.8% 4.5% 27.5% 1.8%
Operating Margin 7.2% 8.5% -15.3% 7.5% -4.0%
EBITDA Margin 9.6% 10.3% -6.8% 9.9% -3.0%
Current Ratio 1.45 1.20 20.8% 1.31 12.2%
Net Debt to EBITDA 4.75 3.24 46.6% 5.02 -5.4%
Leverage Ratio 2.04 1.80 13.3% 2.13 -4.2% 1. Net Debt to EBITDA is defined as Total Financial Debt minus Cash and Cash Equivalents divided by EBITDA for the last twelve months. Net Debt to EBITDA for Q1 15’ is 3.50 and 3.31 for Q2 15’, ex losses of hedging operations of Q4 14’. Net Debt to EBITDA for Q1 2015 includes EBITDA from acquisitions of S/. 1.5 million 2. Leverage Ratio is defined as Total Liabilities divided by Shareholders’ Equity
4
Ecuador 29.6%
Argentina 23.8%
Chile 19.5%
Brazil 17.7%
Others 9.3%
International Revenues (Q2 15')
II. INCOME STATEMENT
Revenues
During Q2 15’, Revenues reached S/. 1,638.8 million, a
4.9% increase YoY. Revenues in Peru increased 1.3% YoY
(4.7% in Consumer Goods Peru, -4.0% in B2B Products and
0.6% in Animal Nutrition) and international revenues
increased 10.5% YoY, due to an increase in Animal
Nutrition sales and Consumer Goods in Argentina. The
main contributors to revenue growth in Q2 15’ YoY were
the following categories: detergents, cereals, hair care,
beauty soap, edible oils, laundry soap, sauces, bulk oils,
frozen products, industrial margarines and shrimp and fish
feed.
During the quarter, international revenues accounted for
41.1% of total revenues, mainly due to higher revenues
generated by the Animal Nutrition business in Ecuador and
Chile, and higher sales in Argentina despite lower sales in
Brazil explained by currency depreciation (sales increase
3.6% in Brazilian Reals).
Sales in Q2 15´ were driven mainly by organic growth on
the back of: our strategy for new product launches and the
strengthening of our core megabrands; the consolidation
of our distribution networks in our international Consumer Goods division; the increase of our client base in Animal
Nutrition; and our efforts to maintain market share in our B2B Products.
1,563 1,644 1,686
1,509 1,639
26.8% 28.0% 27.7% 27.5% 28.0%
Q2 14' Q3 14' Q4 14' Q1 15' Q2 15'
Revenues and Gross Margin (PEN Million)
5
Gross Profit
Gross Profit reached S/. 458.9 million in Q2 15’, representing a 9.4% increase compared to Q2 14’, explained by higher
sales of our core categories and new products in Peru and Argentina which gave us an important margin expansion in
Consumer Goods. Gross Margin increased 4.3% YoY, reaching 28.0% during Q2_15’, compared to 26.8% obtained in
Q2 14’.
Alicorp has been able to expand Gross Margins in the Consumer Goods division as a result of the following strategies:
i) a dynamic raw material purchasing strategy which allows us to maintain competitive and flexible pricing across our
categories, ii) consolidation of our investments in efficiencies and consolidation of our production capacities at our
different plants (pastas, cookies, detergents and palm oil) which optimize production costs, iii) the continuous
diversification of our portfolio, with 30 launches and re-launches in the current year, enables us to enter new and
more profitable market segments, and iv) the reduction of Cost of Goods Sold in Argentina due to the elimination of
third-party production outsourcing as a result of the plant shutdowns in 2013.
Operating Income and EBITDA
Operating Income reached S/. 118.6 million (7.2% of net sales) in
Q2 15’, a 10.6% decrease compared to Q2 14’. This was mainly due
to a lower Operating Margin in our B2B Products explained by
lower sales and Gross Margin as a result of our aggressive pricing
and the development of a new business model to enter different
market segments, all based in the objective to regain market share
to our peers in Peru. Operating Profit for the period includes
expenses associated with our commodity hedging strategy to cover
our inventory levels from price variations; and the closing of the
December position executed in April 2015. This expense totaled S/.
26.5 million associated with net coverage premiums and the time value of our hedging positions.
In Q2 15’, earnings before interest, taxes, depreciation and amortization (EBITDA) was S/. 156.8 million. This
represented a 2.5% decrease compared to the S/. 160.8 million reported in Q2 14’. EBITDA margin was 9.6% during
Q2_15’.
1,563 1,644 1,686
1,509 1,639
10.3% 12.0%
-1.5%
9.9% 9.6%
Q2 14' Q3 14' Q4 14' Q1 15' Q2 15'
Revenues & EBITDA Margin (PEN Million)
6
Net Financial Expenses
During Q2 15’, Financial Expenses increased S/. 13.1 million YoY, explained by the higher cost of refinancing the
Company´s short-term debt in US$ to long-term debt in PEN, in line with our strategy to reduce FX exposure to US$
denominated debt and extend the Company´s maturity profile.
During Q2 15’, currency exchange losses reached S/. 12.7 million, S/.14.3 million increase YoY, explained by Nuevo Sol
appreciation versus the US Dollar during Q2 14’.
The losses for currency hedging instruments increased S/. 37.4 million YoY, due to variations in the time value of our
Call Spread; executed to hedge US$ 275 million of our International Bond. It’s important to point out that this implies
an expense in terms of fair value recognition of the assets but has no impact on the Company´s cash flow.
Net Income
Net Income totaled S/. 7.0 million in Q2 15’ compared to the S/. 69.5 million reached in Q2 14’, a decrease of S/._62.5
million. Net Income was materially affected by: i) a lower contribution of B2B Products associated to our strategy to
recover market share, ii) an increase in the losses related to currency hedging of S/._37.4 million, iii) an increase in the
losses for exchange rate fluctuations of S/. 14.3 million, and iv) higher Financial Expenses of S/. 13.1 million.
Consequently, Earnings per Share (EPS) for Q2 15’ reached S/. 0.008, lower than the S/. 0.081 reported during Q2 14’.
7
Results by Business Segment
Consumer Goods
During Q2 15’, Revenues increased 3.9% YoY even though volumes
decreased by 0.8% YoY. Revenue growth drivers were detergents,
cereals, hair care, beauty soap, edible oils and laundry soap.
Revenues for Consumer Goods Peru increased 4.7% YoY, an
outstanding growth despite the country’s economic deceleration.
Revenues for Consumer Goods International increased 2.5% YoY
explained by higher sales in Argentina despite lower sales in Brazil
as a result of the depreciation of the Brazilian Real versus the Nuevo
Sol.
Consolidated Consumer Goods Operating Income reached S/. 82.8
million, a 3.5% increase YoY, due to a higher Gross Margin.
Operating margin was 8.9% during Q2 15’, lower than the 9.0%
reported in Q2 14’ explained by higher depreciation in 2015.
Consequently, we recovered our EBITDA margin that reached 11.9%
during Q2 15’, higher than the 11.1% reported in Q2 14’.
Revenues and Volume of Consumer Goods Peru reached S/. 592.5
million (4.7% YoY) and 124.3 thousand tons (1.3% YoY) in Q2 15’,
respectively, mainly explained by the increase in Revenues in
detergents, cereals, edible oils and household flour. EBITDA reached
S/. 90.7 million and EBITDA margin was 15.3% an increase of 10.6%
YoY, mainly due higher sales and Gross Margin. We continue to
consolidate our brands in Peru, which has resulted in higher market
shares in categories such as: softeners (+12.5 p.p.), margarines
(+4.3% p.p.), laundry soap (+2.3% p.p.), detergents (+2.1% p.p.), and
pasta (+0.8% p.p.).
In our International Consumer Goods business we focused on
recovering margins via aggressive pricing which increased our
Revenues by 2.5% YoY, despite the devaluation seen in the region,
which affected our Volumes that decreased 4.2%. Revenue growth
891 936 940 840
926
11.1% 12.1% 11.1% 10.9% 11.9%
Q2 14' Q3 14' Q4 14' Q1 15' Q2 15'
Consolidated Consumer Goods Revenues & EBITDA Margin
(PEN Million)
566 612 622
528 592
13.8% 16.5% 16.6% 14.7% 15.3%
Q2 14' Q3 14' Q4 14' Q1 15' Q2 15'
Consumer Goods Peru Revenues & EBITDA Margin
(PEN Million)
325 324 317 312 333
6.2% 3.8% 0.3% 4.6% 5.7%
Q2 14' Q3 14' Q4 14' Q1 15' Q2 15'
Consumer Goods International Revenues & EBITDA Margin
(PEN Million)
8
drivers were mainly in Argentina´s hair care, beauty soap, laundry soap and detergents. EBITDA margin reached 5.7%,
lower than 6.2% in Q2 14’ but better than 4.6% in Q2 15’.
Revenues for Argentina increased S/. 16.5 million, an outstanding increase of 11.5% YoY. EBITDA margin increased to
1.6% explained by a higher Gross Margin as conversion costs were reduced. This EBITDA figure represented the first
positive EBITDA for the Argentina operation since Q2 14’. The operating improvement also comes from reduction in
administrative expenses.
Revenues for Brazil decreased in S/. 21.5 million due the depreciation of the Brazilian Real versus the Nuevo Sol during
2015 (9.8%). EBITDA decreased in S/. 3.7 million and EBITDA margin was 7.6%. Revenues (in Brazilian Reals) and
Volume increased 3.6% and 5.4%, respectively. Additionally, the pasta market share increased 1.4% p.p. in the region
of Minas Gerais.
B2B Products
Revenues and Volume reached S/. 357.5 million (-4.4% YoY) and
138.1 thousand tons (-6.4% YoY) in Q2 15’, as a result of our
aggressive pricing and the development of a new business model to
enter different market segments, all based in the objective to regain
market share in the Industrial flour category against lower priced
competitors. Nevertheless, the Company increased market share in
bulk oils (+1.9% p.p.) and industrial margarines (+1.6% p.p.). In Q2
15’, operating income reached S/. 22.8 million, a decrease of 32.7%
compared to Q2 14’, mainly due to a lower Gross Margin as a result
of the sales decrease. In Q2 15’, Operating Margin reached 6.4%,
lower than the 9.1% reached in Q2 14’. Consequently, EBITDA Margin
decreased to 8.3% during the Q2 15’.
The business focus in the coming quarters will be based in cost reductions and efficiencies in the production and
commercialization chain as well as the consolidation of our frozen bakery products through the new subsidiary,
Masterbread.
374 395
373 331
357
10.6% 12.5% 9.6% 8.8% 8.3%
Q2 14' Q3 14' Q4 14' Q1 15' Q2 15'
Revenues & EBITDA Margin (PEN Million)
9
Animal Nutrition
Revenues and Volume reached S/. 355.5 million (19.6% YoY) and
99.0 thousand tons (6.4% YoY) in Q2 15’, mainly due to higher
Revenues from shrimp feed in Ecuador, driven by the Inbalnor plant
expansion to 170,000 MT, as well as the consolidation of the
business strategy for the sale of fish feed in Chile. We continue our
strategy to: i) keep growing by increasing market share in Ecuador
by pushing for higher margin value-added products, such as Nicovita
healthy diet products and ii) be the best alternative service of the
salmon industry in order to keep increasing feed conversion rate to
farmers to reach our profitability and volume targets for the year.
During Q2 15’, Operating Income reached S/. 44.1 million, a 10.6%
increase YoY, mainly due to strong sales growth. Operating Margin
reached 12.4% while EBITDA margin reached 13.7% in Q2 15’.
297 312
373 338 356
14.7% 11.2% 13.6% 13.1% 13.7%
Q2 14' Q3 14' Q4 14' Q1 15' Q2 15'
Revenues & EBITDA Margin (PEN Million)
10
III. BALANCE SHEET
Assets
As of June 30, 2015, Total Assets decreased S/. 191.8 million compared to December 31, 2014, mainly as a result of a
decrease in Current Assets of S/. 171.6 million. This decrease in Current Assets was mainly explained by a reduction in
Other Financial Assets (mainly the reduction in the Guarantee Fund for Commodity Hedging), after the closing of the
commodity hedging position of the Q4 14’ and Other Accounts Receivables.
Cash and Cash Equivalents increased from S/. 99.5 million as of December 31, 2014 to S/. 138.9 million as of June 30,
2015. Because of our growth in Revenues, the Commercial Accounts Receivable increased from S/. 977.7 million in
December 2014 to S/. 983.4 million at June 2015. Commercial Accounts Receivable turnover was 46.7 average days
during Q2 15’ versus 47.6 average days during Q4 14’.
Inventories increased from S/. 987.6 million as of December 2014 to S/. 1,051.1 million as of June 2015, mainly
explained by the inventories of raw materials in transit. Nevertheless, Inventory turnover average decreased from
88.3 to 83.3 days from Q4 14’ to Q2 15’, respectively.
Property, Plant and Equipment increased S/. 14.6 million, from S/. 2,073.6 million as of December 2014 to S/. 2,088.2
million as of June 2015, mainly due to the conclusion of our CAPEX plans from: 1) capacity increase of palm oil
processing plant, 2) construction of a new pasta production line, 3) construction of a new production line of cookies
and crackers, 4) capacity increase of the new detergent plant in Callao, 5) capacity increase of Inbalnor Plant and
6)_reconstruction of plant in Argentina.
Liabilities
As of June 2015, Total Liabilities decreased S/. 274.8 million due to a decrease in short-term financial liabilities, mainly
short-term financing in Peru according to our positive cash flow from operations.
The decrease in Current Liabilities was primarily due to the decrease in Current Financial Liabilities of S/. 886.7 million,
due to a decrease of S/. 663.9 millions in Current Financial Debt and of S/. 226.6 in Hedging Instruments.
Commercial Accounts Payable increased in S/. 245.8 million and Accounts Payable turnover increased 9.1 days, from
69.5 to 78.6 from Q4 14’ to Q2 15’, respectively.
Long-term Liabilities increased by S/. 309.7 million, mainly due to the increase of Other Financial Liabilities of
11
S/._406.6 million, related to the refinancing of short-term debt.
Total Current Financial Debt as of June 2015, was S/. 273.1 million, a S/. 663.9 million reduction versus Q4 14´
explained by lower debt in Peru and Argentina. The Company keeps intact its revolving credit lines for import
financing and working capital requirements, with low financial costs.
Total long-term Financial Debt at June 2015 was S/. 2,136.4 million, representing 88.7% of Total Financial Debt,
compared to 65.3% in December 2014. This was due to the debt restructuring process that included the issuance of
S/._500.0 million in local debt in January 2015 and the medium term loan of S/. 316.0 million with BBVA Continental in
June 2015. The currency mix for the financial debt in Q2 15’, after the derivatives hedging, was 75.7% in Peruvian
Nuevo Soles, 11.3% in U.S. Dollars, 5.7% in Brazilian Real, with the remaining 7.3% in Argentine Pesos. Only 3.5% of
the total debt has FX exposure to US$/PEN depreciation. The duration of total debt was 5.19 years at June 2015
compared to 3.90 at December 2014. Long-term duration for Q2 15´was 5.53. During Q2 15’ Alicorp undertook 22
foreign exchange forward agreements in order to cover net cash flow exposure. Currently, the majority of liabilities
are fixed-rate, either direct or through derivative transactions.
Equity
Shareholders’ Equity increased by S/. 83.0 million, or 4.0%, from S/. 2,096.0 million at December 2014, to S/._2,179.0
million at June 2015, primarily due to the effect of net profit and currency translations of the subsidiaries’ financial
statements.
IV. STATEMENT OF CASH FLOWS
Operating Activities
As of June 2015, cash flow from operations was S/. 583.7 million, S/. 447.0 million higher than in the same period of
2014 due to i) higher sales, and ii) working capital improvements, particularly the reduction of accounts receivable,
the decrease in inventory, the decrease in the guarantee fund for commodity hedging and improvements in accounts
payable days. The Company’s cash position totaled S/. 138.9 million at June 2015.
Investing Activities
Cash flow allocated to investing activities as of Q2 15’ totaled S/. -70.0 million, of which S/. 80.4 million were used
towards CAPEX, compared to S/. 133.6 million during the same period of 2014.
12
Financing Activities
Cash flow from financing activities as of Q2 15’ was S/. -477.9 million, compared to S/. 304.1 million as of Q2 14’,
mainly due to the debt reduction in accordance with the Company’s deleveraging plan.
Liquidity and Leverage Ratios
The Company’s liquidity ratio increased from 1.17x at
December 2014, to 1.45x at June 2015, mainly due to lower
short-term debt. The leverage ratio (Total Liabilities / Equity)
decreased from 2.25x at December 2014 to 2.04x at June
2015, due to lower financial liabilities. In terms of the Net
Debt_/ EBITDA ratio, this ratio decreased from 5.35x at
December 2014 to 4.75x, at June 2015 due to a reduction of
Financial Debt in S/.289.7 million. EBITDA for the trailing 12
months reached S/. 477.9 million, together with positive
working capital allows the Company to continue the
deleverage process according with our latest guidance.
V. RECENT EVENTS
New Product Launches and Revamping of Existing Products
During Q2 2015, Alicorp´s Consumer Goods Business launched and revamped many products in Peru and Argentina.
In the Consumer Goods Business, Alicorp launched a new tomato sauce, under “Alacena”
brand, made with 100% of Peruvian tomatoes. The goal of this launch is to consolidate the
portfolio and increase their market competitiveness.
In the domestic margarines category, Alicorp revamped the format of margarine “Manty” with
a new package and design. The objective of this product is giving an innovative proposition to
the customers.
1.20 1.13 1.17 1.31 1.45
3.24 3.64
5.35 5.02 4.75
Q2 14' Q3 14' Q4 14' Q1 15' Q2 15'
Current Ratio & Net Debt / EBITDA
Current Ratio Net Debt / EBITDA
13
In the household flour category, Alicorp launched a new presentation of the pre-mix, under
“Blanca Flor” brand in 500 grams format. This product is available in two flavors: vanilla and
chocolate. The goal of this launch is to boost the growth of pre-mixes in the traditional channel.
In the wafers category, Alicorp launched a new chocolate covered wafer, under the “Casino”
brand with the objective to consolidate Casino as a megabrand and expand its portfolio.
In the detergents category, Alicorp launched a new liquid detergent in two presentations:
Bolivar Matic, an exclusive product to use in a washing machine, and Bolivar with a hint of
softener, a product that blends the power of Bolivar’s detergent with the care and fragrance of
the softener. This launch is aimed maintaining the leadership of the Bolivar brand while
expanding its portfolio.
In the B2B Products segment, Alicorp launched a new presentation of the “Don Vittorio” brand
in the food service format. The objective of this launch is to expand the pastas portfolio in the
segment.
Also, in the sauces category, “Alpesa” brand was revamped under a new format and
presentation, with new packaging of 2kg. This product offers the industrial clients added
hygiene and control and practicality, in order to increase their market competitiveness.
In Argentina, Alicorp launched a new brand of beauty soap: “Campos Verdes” in five varieties:
“Frescura libertadora”, “Silencio zen”, “Energía del sol”, “Pausa en el campo” and “Lluvia de
verano”, (Liberating freshness, Zen silence, Sun energy, Prairire pause and Summer rain)
offering customers natural and attractive smelling fragrances. These products were launched in
order to expand the beauty soap portfolio and consolidate it in the market.
Additionally, in the same category, Alicorp launched two new varieties of beauty soap under
the “Plusbelle” brand in limited edition: “Hidratación Profunda” and “Humectación Intensa”
(Deep hydration and Intense hydration). These products offer an innovative proposal with more
value to the customers.
Alicorp revamped the deodorants and antiperspirants line under the “Plusbelle” brand offering
eight new varieties, fragrances and larger presentations. The objective of this revamped line is
to increase “Plusbelle” brand’s position and its competiveness.
14
In the hair care category, Alicorp launched two new varieties of shampoo and conditioner
under the “Plusbelle” brand in limited edition, offering a special care concept for the different
seasons of the year. The objective of this product is to consolidate the brand’s position.
In the pastas category, Alicorp launched a new presentation of “Nutregal” in a limited edition.
The main characteristic of this new presentation is that it offers a higher content to our
consumers.
In the cookies category, Alicorp launched a new presentation of “Okebon Leche”, with a new
design that highlights the variety offered and the main attributes it has, as in 0% cholesterol
and a good source of calcium. Additionally, Alicorp launched “O’ke- Chispas”, a new brand of
chocolate chips cookies with the objective of entering into a new segment. Finally, Alicorp
launched “Marías”, under the “Okebon” brand. The goal of this launch is to consolidate the
brands portfolio and to strengthen its image as an innovative brand.
Awards and Social Responsibility
For the fifth consecutive year, Alicorp is part of the “Good Corporate Governance Index 2015” at Lima Stock
Exchange (“BVL”). Furthermore, Alicorp continues to be recognized for its good corporate practices, transparency,
and professional and ethical standards within the Peruvian capital markets.
Alicorp won three silver “Effie Awards 2015” recognizing leadership in marketing communications: i) Bolivar
received an award in the Product category, ii) Don Vittorio received an award for its Line extension and iii) Blanca
Flor received an award in the Branded Foods category.
15
About Alicorp
Alicorp is a leading Consumer Goods company headquartered in Peru, with operations in other Latin American
countries, such as Argentina, Brazil, Chile, Ecuador, and exports to 23 other countries. The Company focuses on three
core businesses: (1) Consumer Products (food, personal and home care products), in Peru, Brazil, Argentina, Ecuador,
Colombia and Chile, among other countries, (2) B2B Products (industrial flour, industrial lard, pre-mix and food service
products), and (3) Animal Nutrition (fish and shrimp feeding). 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 Press Release 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 “anticipates,” “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 of 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.
16
NotesJune 30
2015
December 31
2014Notes
June 30
2015
December 31
2014
Assets Liabilities and Shareholders´ Equity
Current Assets Current Liabilities
Cash and Cash Equivalents 2 138,882 99,521 Other Financial Liabilities 10 283,150 1,169,809
Other Financial Assets 3 69,271 332,674 Trade Account Payables 1,247,264 1,001,484
Trade Account Receivables, Net 983,359 977,714 Other Account Payables 11 155,246 103,832
Other Account Receivables, Net 4 127,562 193,924 Account Payables to Related Parties 2,276 2,180
Account Receivables from Related Parties 207 157 Provisions 15,967 15,202
Advances to Suppliers 44,217 45,538 Current Income Tax 10,776 10,370
Inventories 5 1,051,114 987,579 Provision for Employee Benefits 12 88,493 84,761
Biological Assets 0 0 Total Current Liabilities 1,803,172 2,387,638
Deferred Tax 131,538 103,186
Other non f inancial assets 42,789 19,934
Assets classif ied as held for sale 22,694 23,047 Non-Current Liabilities
Total Current Assets 2,611,633 2,783,274 Other Financial Liabilities 10 2,221,389 1,814,782
Other Account Payables 11 87,212 98,212
Non-Current Assets Account Payables to Related Parties 0 0
Other Financial Assets 3 347,590 328,833 Deferred Income Tax Liabilities 323,594 410,892
Investments in associates 6 24,209 24,179 Provisions 3,212 3,006
Trade Account Receivables 0 0 Provision for Employee Benefits 12 7,614 6,475
Other Account Receivables 4 66,336 36,715
Property, Plant and Equipments, Net 7 2,088,158 2,073,569 Total Non-Current Liabilities 2,643,021 2,333,367
Intangible Assets, Net 8 566,183 591,905 Total Liabilities 4,446,193 4,721,005
Deferred Tax 51,204 80,924
Goodw ill 9 869,869 897,622 Sharedholders' Equity
Total Non-Current Assets 4,013,549 4,033,747 Share Capital 13 847,192 847,192
Investment Shares 13 7,388 7,388
Reserves 13 169,438 169,438
Retained Earnings 1,030,366 1,001,240
Other Shareholders' Equity Reserves 107,620 61,607
Equity Attributable to Owners of the Company 2,162,004 2,086,865
Non-Controlling Interests 16,985 9,151
Total Shareholders' Equity 13 2,178,989 2,096,016
TOTAL ASSETS 6,625,182 6,817,021 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 6,625,182 6,817,021
ALICORP S.A.A.
Consolidated Quarterly Financial Statements
As of June 30, 2015 and December 31, 2014
(in thousands of Peruvian Nuevos Soles)
Consolidated Statement of Financial Position
17
Notes
For the Quarter
Ended June 30,
2015
For the Quarter
Ended June 30,
2014
For the cumulative
period Starting on
January 1 and
Ending June 30,
2015
For the cumulative
period Starting on
January 1 and Ending
June 30, 2014
Continuing Operations
Revenue 1,638,773 1,562,622 3,147,668 2,952,851
Other Revenues 0 0 0 0
Net Sales 1,638,773 1,562,622 3,147,668 2,952,851
Cost of Sales -1,179,862 -1,143,082 -2,273,085 -2,169,148
Gross Profit (Loss) 458,911 419,540 874,583 783,703
Selling and Expenses -223,641 -201,730 -425,797 -382,615
Administrative Expenses -92,879 -90,713 -180,765 -165,668
Profit (loss) on the disposal of f inancial assets measured at amortized cost 0 0 0 0
Other Operating Income 5,598 10,650 12,532 28,748
Other Operating Expenses -2,897 -3,558 -7,047 -8,316
Other income (Expenses) -26,498 -1,459 -41,090 259
Operating Profit (Loss) 118,594 132,730 232,416 256,111
Financial Income 15 3,893 12,419 18,561 28,360
Financial Expenses16 -91,824 -49,833 -187,003 -89,908
Exchange differences on translating foreign operations.17 -12,680 1,625 -16,168 -17,559
Share in Profits from Associates 0 0 0 0
Profit (Loss) arising from the Difference betw een the Book Value and Fair Value of
the Financial Assets Reclassif ied measured at Fair Value0 0 0 0
Profit (Loss) before Income Tax 17,983 96,941 47,806 177,004
Income Tax Expense -10,950 -27,440 -20,904 -47,959
Profit for the Year from Continuing Operations7,033 69,501 26,902 129,045
Profit (Loss) for the Year from Discontinued Operations 0 0 0 1
Profit (Loss) for the Period/Year (Net Value) 7,033 69,501 26,902 129,046
Net Profit (Loss) attributable to:
Ow ners of the Company 8,098 68,934 28,711 128,424
Non-Controlling Interests -1,065 567 -1,809 622
Net Earnings (Loss) for the Period/Year 7,033 69,501 26,902 129,046
Basic (cents per share):
Earnings per Share Capital in Continuing Operations 18 0.008 0.081 0.031 0.151
Earnings per Share Premium in Continuing Operations 18 0.008 0.081 0.031 0.151
Earnings per Share Capital in Discontinued Operations 0.000 0.000 0.000 0.000
Earnings per Share Premium in Discontinued Operations 0.000 0.000 0.000 0.000
Earnings per Share 0.008 0.081 0.031 0.151
Earnings per Share Premium 0.008 0.081 0.031 0.151
Diluted (cents per share):
Earnings per Share Capital in Continuing Operations 18 0.008 0.081 0.031 0.151
Earnings per Share Premium in Continuing Operations 18 0.008 0.081 0.031 0.151
Earnings per Share Capital in Discounted Operations 0.000 0.000 0.000 0.000
Earnings per Share Premium in Discounted Operations 0.000 0.000 0.000 0.000
Earnings per Share Capital 0.008 0.081 0.031 0.151
Earnings per Share Premium 0.008 0.081 0.031 0.151
ALICORP S.A.A.
Consolidated Statement of Comprehensive Income
For the Quaters Ended June 30, 2015, 2014
(in thousands of Peruvian Nuevos Soles)
18
Notes
For the cumulative
period Starting on
January 1 and Ending
June 30, 2015
For the cumulative
period Starting on
January 1 and Ending
June 30, 2014
CASH FLOW FROM OPERATING ACTIVITIES
Collections from (due to):
Sales of Goods and Services Offered 3,185,681 3,012,079
Fees 0 0
Royalties, commissions, and other income from ordinary activities 0 0
Interests and Returns Received (not included under Investment Activities) 0 0
Income Tax Reinbursement 0 0
Dividends Received (not incluided under Investment Activities) 0 0
Other Operating Collections 170,036 105,554
Payments to (due to):
Suppliers of Goods and Services -2,370,717 -2,530,913
Salaries -279,487 -291,577
Income Taxes Paid -74,605 -42,582
Interests and Returns (not incluided under Financing Activities) 0 0
Dividends (not included under Financing Activities) 0 0
Royalties 0 0
Other Operating Payments -32,386 -115,797
Other Payments -14,802 0
Net Cash Generated by Operating Activities 583,720 136,764
CASH FLOW FROM INVESTMENT ACTIVITIES
Collections to (due to):
Reinbursement from Advanced Loans and Loans to Third Parties 0 0
Repayments by Related Parties 0 0
Sale of Financial Instruments (Debt or Equity) to other Entities 0 0
Derivative Contracts (futures, options) 0 0
Net Cash Inflow on Disposal of Associate 0 0
Sale of Participation in Joint Venture, Net of Cash Disbursement 0 0
Sale of Investment Properties 0 0
Sale of Properties, Plant and Equipment 235 744
Sale of Intangible Assets 0 0
Proceeds from Disposal of Other Long Term Assets 0 0
Interests and Returns Received 6,576 3,775
Dividends Received 3,597 2,892
Income Tax Reinbursement 0 0
Other Cash Collected from Investment Activities 0 0
Payments to (due to):
Advanced Payments and Loans to Third Parties 0 0
Loans to Related Parties 0 0
Purchase of Financial Instruments (Debt or Equity) from Other Entities 0 0
Derivative Contracts (futures, options) 0 0
Net Cash Outflow on Acquisition of Subsidiaries 0 -300,650
Purchase of Participation in Joint Ventures, Net of cash acquired 0 0
Purchase of Participation in Non-Controlling Interests 0 0
Purchase of Investment Properties 0 0
Purchase of Properties, Plant and Equipment -80,430 -133,551
Advance Payments for Work in Progress for Property, Plant and Equipment 0 0
Purchase of Intangible Assets -10 -2,049
Purchase of Other Long Term Assets 0 0
Income Tax Paid 0 0
Other Cash Payments from Investment Activities 0 -145
Net Cash (Used in) Generated by Investment Activities -70,032 -428,984
CASH FLOWS FROM FINANCING ACTIVITIES
Collections to (due to):
Short Term and Long Term Loans 2,136,977 1,185,545
Loans to Related Parties 0 0
Issue of Ordinary Shares and Other Instruments of Equity 0 0
Sale of Treasury Shares 0 0
Income Tax Reimbursement 0 0
Other Cash Collected from Financing Activities 0 0
Payments to (due to):
Short Term & Long Term Loan Amortizations -2,515,424 -691,221
Loans from Related Entities 0 0
Liabilities from Leasing Operations 0 0
Repurchase of Shares (Treasury Shares) 0 0
Adquisition of other Participations under Share Capital 0 0
Interests and Returns -97,122 -87,642
Dividends 0 -102,550
Income Tax Paid 0 0
Other Cash Payments from Financing Activities -2,315 0
Net Cash Used in Financing Activities -477,884 304,132
Increase (Decrease) Net Cash Flow, before Exchange Rate Changes 35,804 11,912
Effects of Exchange Rate Changes on the Balance of Cash Held in Foreign
Currerncies 3,557 0
Increase (Decrease) Net Cash Flow, after exchange rate changes 39,361 11,912
Cash and cash equivalents at the beginning of the year 99,521 92,890
Cash and cash equivalents at the end of the year 138,882 104,802
ALICORP S.A.A.
Consolidated Statement of Cash Flows
Direct Method
For the Periods Ended June 30, 2015 and 2014
(in thousands of Peruvian Nuevos Soles)