• Faced with the challenges of the macroeconomic scenario, the company has been responding with a strategy based on strengthening its emblematic brands and strengthening its sales through the traditional channel.

Alicorp presented its financial results for the third quarter of the year, which reflect the strategy that the company has been executing to maintain its profitability in the face of the high inflation that has been generating contraction in the markets. These actions seek to strengthen the presence of its emblematic brands in the channels where they generate greater value, mainly in its Mass Consumption business in Peru.

At the end of the third quarter, the company recorded consolidated sales of S/3,429 million, 14% less than the third quarter of 2022, which is mainly explained by a contraction in the Milling and balanced feed businesses for Aquaculture. It should be noted that, during this period, the company has executed various action plans focused on optimizing industrial spending, as well as generating efficiencies in the management of freight and transportation expenses, as well as storage.

Regarding the result of the consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), this was S/276 million. Excluding the Grinding business, which has been impacted by the volatility of raw material prices, the consolidated EBITDA was S/343 million, 15% more than in the third quarter of 2022.

Likewise, the company has been focusing on generating greater profitability, protecting gross profit per metric ton, which registered an increase of 13% compared to the third quarter of 2022, reaching S/1,209 excluding the Grinding business. Additionally, EBITDA - excluding the Milling business and extraordinary expenses - increased 22% for the same period comparison. This occurs from the improvement in the mix of channels and products, as well as the exit of unprofitable businesses.

In relation to business performance, Mass Consumption in Peru recorded sales of S/1,008 million. The strategy in this business focuses on greater promotion of its emblematic brands and increasing its presence in the traditional channel (wine stores and market stalls). In this way, the EBITDA generated by the business amounted to S/177 million in the third quarter of 2023, registering an increase of 8% compared to the same period of the previous year.

For its part, International Business achieved consolidated sales of S/291 million, 10% less than in the third quarter of 2022. However, the company has managed to capture improvements in the cost of raw materials for its consumer businesses in Bolivia, as well as as well as achieved leadership in the detergent category in that geography. This has allowed it to register an EBITDA of S/10 million in the third quarter of 2023, an improvement of S/17 million compared to the same quarter of the previous year.

The B2B business (Alicorp Soluciones) reached sales of S/646 million, 9% less than in the same period of 2022. Despite the contraction of the market, the volume sold increased by 6% on the same date compared, while that EBITDA reached S/93 million, increasing 47% compared to the third quarter of 2022.

On the other hand, the Aquaculture feed business (Vitapro) recorded sales of S/827 million, 19% less than in the third quarter of 2022, due to the fact that the price of shrimp is at its historical minimum. Given this scenario, the company has been accompanying its customers through new products and the application of discounts. EBITDA was S/70 million, 36% lower than the same period in 2022.

Finally, the Grinding business had sales of S/657 million, 19% less than the same period in 2022 due to the volatility recorded in the prices of soybean and sunflower oils.

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About Alicorp

Alicorp is the largest Peruvian mass consumption company. It has operations in Bolivia, Chile, Colombia, Ecuador, Honduras, Peru, Uruguay and exports to other countries. Alicorp has four business lines: 1) Mass Consumption (food, personal and home care) in Peru, Bolivia, Ecuador, Colombia, Chile and other countries, 2) B2B (industrial flours, industrial butters, premixes and Gastronomy products , Baking and Laundry), 3) Aquaculture (balanced food for fish and shrimp) and 4) Milling (soybeans and sunflower grains).

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Alicorp SAA published this content on 20 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 November 2023 22:40:03 UTC.