First Quarter 2014 Consolidated Financial Statements

Transcription

1 First Quarter 2014 Consolidated Financial Statements Revenues reached S/. 1,390.2 million, an 13.8% increase versus 1Q13; sales volume reached thousand tons, a 13.5% increase versus 1Q13. EBITDA reached S/ million, a 12.5% increase compared to 1Q13 and Net Income reached S/.56.7 million, a remarkable 25.3% increase compared to 1Q13 INVESTOR RELATIONS CONTACT Fiorella Debernardi Baertl Treasury Manager & IRO T: (511) F: (511) FDebernardiB@alicorp.com.pe Lima, Peru, April 30, Alicorp S.A.A. ( the Company or Alicorp ) (BVL: ALICORC1 and ALICORI1) announced today its unaudited financial results corresponding to the First Quarter 2014 (1Q14). 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 During 1Q14, Net Sales reached S/. 1,390.2 million, a 13.8% increase versus 1Q13. Sales volume reached thousand tons, a 13.5% increase versus 1Q13, due mainly from revenue increases in pasta, laundry detergents, sauces, industrial flour, fish and shrimp feed categories. Organic and inorganic Revenues reached S/.1,347.1 million and S/ million respectively. International Revenues represented 39.1% of Total Revenues due to higher sales in Brasil, Ecuador and Chile. 1

2 Gross Profit totaled S/ million during 1Q14, a 21.7% increase compared to S/ million in 1Q13, mainly due to an decrease en COGS. Gross Margin increased to 27.2% in 1Q14 compared to 25.4% in 1Q13. EBITDA reached S/ million during 1Q14, a 12.5% increase compared to the S/ million reported in 1Q13. EBITDA margin slightly decreased from 10.9% in 1Q13 to 10.8% in 1Q14, due to higher marketing and selling expenses. Net income for the quarter reached S/._56.7 million, an outstanding 25.3% increase compared to S/ million reported in 1Q13, mainly due to the solid Company performance in terms of increasing probitability. Alicorp was very active in product innovation during 1Q14, with the launching and relaunching of a variety of products: In Peru, in the consumer goods business, Alicorp launched an extra virgin olive oil product under the Primor brand. In the sauces category, a ready to serve Salsa Roja Completa under the Don Vittorio portfolio was launched. In March, Alicorp launched a new version of one of the most famous recipe cookbooks in Peru, Nicolini. In the industrial products business, Alicorp relaunched and redesigned 2 flour brands, Blanca Nieve and Inca. In the food service category, Alicorp launched a new pasta under the Sayon portfolio, and launched a new presentation packaged in sachets for the Alpesa products. In Brasil, the Company launched 2 different pasta products: Santa Amalia Speciale with 7 new varieties, and Don Sapore with 4 new varieties. Pastificio Santa Amalia also launched a new tomato sauce product under the Speciale portfolio. In Argentina, Alicorp launched a new product of the Okebon cookies portfolio in order to expand its brand products line. In March, 2014, Euromoney recognized Alicorp as having the best corporate treasury department in Latin America. Moreover, Alicorp was also ranked as one of the 10 Best Managed Mompanies in LatinAmerica and among the 5 Best Managed Companies in Peru by Euromoney. Alicorp announced the acquisition of Global Alimentos S.A.C., the leading cereal and snack bars company in Peru, and Molinos Saracolca S.A.C., a corn milling business in Peru, for USD million. The acquisition of all assets, brands, processing plants and the mill was conducted through a private process between the two companies in which LXG Capital acted as sole financial advisor. 2

3 II. FINANCIAL INFORMATION FINANCIAL HIGHLIGHTS (In millions of Peruvian Nuevos Soles) 1Q Q 2013 YoY 4Q 2013 QoQ Net Sales 1, , % 1, % Gross Profit % % Operating Profit % % EBITDA % % Last 12 Months EBITDA % % Net Earnings for the Period/Year % % Earnings per Share (Common Shares) % % Current Assets 2, , % 2, % Current Liabilities 1, , % 1, % Total Liabilities 3, , % 3, % Working Capital % % Cash and Cash Equivalents % % Total Financial Debt 2, , % 1, % Current Debt % % Non-Current Debt 1, , % 1, % Shareholders' Equity 2, , % 2, % RATIOS Gross Margin 27.2% 25.4% 28.7% Operating Margin 9.0% 8.9% 13.5% EBITDA Margin 10.8% 10.9% 15.3% Current Ratio Net Debt to EBITDA Leverage Ratio Return on Equity 17.2% 17.6% 16.9% 1. Net Debt to EBITDA is defined as Total Financial Debt plus Cash and Cash Equivalents divided by EBITDA for the last twelve months. 2. Leverage Ratio is defined as Total Liabilities divided by Shareholders Equity 3. ROE is defined as last twelve months Net Profit divided by Average Shareholders Equity for the last twelve months 3

4 III. INCOME STATEMENT Revenues During 1Q14, Revenues reached S/. 1,390.2 million, a 13.8% increase YoY. Domestic increased 3.8% YoY and international increased 34.1% YoY. During the quarter, international revenues represented 39.1% of total revenues, mainly due to higher revenues in Brasil, Ecuador and Chile. 1,221 Revenues & Gross Margin (PEN Million) 1,465 1,535 1,601 1, % 27.6% 27.5% 28.7% 27.2% 1Q13 2Q13 3Q13 4Q13 1Q14 The main contributors to 1Q14 revenue growth were the sustained growth in most of categories and an increased sales growth in the following categories: pasta, detergents, sauces, industrial flours and frozen products in Peru; pasta, chocolates and sauces in Brasil. Also contributing to sales were shrimp feed in Ecuador and fish feed in Chile. Organic Revenues continued to drive growth, representing 96% of Total Revenues generated in 1Q14. International Revenues (1Q14) Ecuador 21.3% Argentina 24.0% Chile 20.2% Brazil 24.2% Panama 1.8% Bolivia 1.7% Others 6.9% Volume in 1Q14 increased 13.5% YoY, mainly due to increased sales, as well as the growth in the following categories: pasta, laundry soap, edible oils, industrial flours and bulk oils in Peru; pastas in Brasil; shrimp feed in Ecuador and fish feed in Chile. Gross Profit Gross Profit reached S/ million during 1Q14, a 21.7% increase compared to 1Q13, mainly due to a decrease in cost of goods sold as a percentage of sales and an increase in organic growth in the following categories: pasta, detergents, sauces, industrial flours, frozen products and shrimp feed. Gross margin increased 6.9% YoY, reaching 27.2% during 1Q14. Alicorp is well-positioned to offset volatility in commodity prices as a result of the following strategies: 1) a purchasing strategy that allows pricing flexibility, 2) efficiencies generated in costs and expense management programs in place to improve Alicorp s competitiveness, and, 3) diversification of the product portfolio to include higher value-added 4

5 products. These tactics helped Alicorp reduce COGS throughtout its 3 business segments. Operating Income and EBITDA Operating Income reached S/ million (9.0% of net sales) in 1Q14, a 14.4% increase compared to 1Q13. This was mainly due to solid organic growth and a reduction in COGS as a percentage of total revenues. In 1Q14, Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) was S/ million. This represented a 12.5% increase compared to the S/ million reached in 1Q13, which was mainly due to a higher operating profit compared to 1Q13. EBITDA margin reached 10.8% during 1Q14, maintaning a similar margin as in 1Q EBITDA & EBITDA Margin (PEN Million) % 13.4% 12.5% % % Net Financial Expenses 1Q13 2Q13 3Q13 4Q13 1Q14 During 1Q14, Net Financial Expenses increased S/ million YoY, mainly due to more expenses related to the increase in leverage. Net Income Net Income reached S/ million in 1Q14 (4.1% of Total Revenues), an increase of 25.3% compared to the S/ million (3.7% of Total Revenues) reached in 1Q13. This increase was expleained by the increase in Sales and Operating Income. During 1Q14, Earnings per Share (EPS) reached S/ , higher than the S/ reported during 1Q13, this was explained by organic growth in 2013 and Earnings Per Share (PEN) Q13 2Q13 3Q13 4Q13 1Q14 5

6 Results by Business Segments Consumer Goods During 1Q14, Revenues and Volume increased 9.4% and 8.8% respectively YoY, due to an increase in revenues from the following categories: pasta, laundry detergents, sauces, chocolates and laundry soap. Operating Income reached S/._55.7 million, a 23.3% decrease YoY, explained by the increase in SG&A expenses that were mainly driven by additional marketing from the increase of products launched this quarter. Operating margin was 7.0% during 1Q14, lower than 10.0% reported during 1Q13. EBITDA margin reached 9.0% during 1Q14, compared to 12.2% in 1Q Revenues & Operating Margin (PEN Million) % 12.4% 10.9% % % 1Q13 2Q13 3Q13 4Q13 1Q14 Industrial Products Revenues reached S/ million during 1Q14, an increase of 6.3% compared to 1Q13, mainly due revenues increase of the following categories: industrial flours, frozen products, grains, bulk oils and pasta. Volume increased 9.6% compared to 1Q13 mainly due to increase in the following categories: industrial flours, bulk oils and frozen products. During 1Q14, operating Income reached S/ million, a 14.0% increase compared to 1Q13, mainly due to lower COGS. In 1Q14 operating margin and EBITDA margin reached 9.1% and 10.7%, respectively, which were slightly higher than 8.5% and 10.3% reported in 1Q13, mainly due to an decrease in COGS. 307 Revenues & Operating Margin (PEN Million) % 9.5% 11.0% 10.3% 9.1% 1Q13 2Q13 3Q13 4Q13 1Q14 6

7 Animal Nutrition Revenues reached S/ million, a remarkable increase of 43.8% YoY, mainly due to an increase in sales of shrimp feed in Ecuador, as a result of our strategy for growth and the inauguration of the shrimp feed production plant in 2013, and the consolidation of our fish feed strategy in Chile contribuited positevely. Volume increased 33.9% YoY and 10.0% QoQ. During 1Q14, Operating Income reached S/._37.4 million, a 256.8% increase YoY, mainly due to a decrease in COGS as a percentage of revenues, as a result of efficiencies gained with the new production plant in Ecuador and synergies for the Salmofood acquisition. Operating margin reached 14.1% in 1Q14. EBITDA margin increased significantly from 6.8% in 1Q13 to 15.4% in 1Q14, demonstrating an outstanding growth compared to previous quarters % Revenues & Operating Margin (PEN Million) % 7.9% % 14.1% 1Q13 2Q13 3Q13 4Q13 1Q14 7

8 IV. BALANCE SHEET Assets As of March 31, 2014, Total Assets increased S/ million compared to the previous quarter, or 2.9%, mainly as a result of an increase in Current assets of S/ million. This increase in Current Assets was mainly explained by an increcease in other current assets as guarantee funds maintained for hedging commodities. Cash and Cash Equivalents decreased from S/ million as of December 2013 to S/ million as of March 31, Commercial Accounts Receivable decreased from S/ million, as of December 2013, to S/ million, as of March Commercial Accounts Receivable turnover was 44.5 days during 1Q14 versus 49.2 days during 1Q13. Inventories increased from S/ million, as of December 2013, to S/ million, as of March 2014, mainly explained by the inventories of finished products. Efficiencies generated during the year improved inventory management. Inventory turnover decreased from 88.4 to 80.0 days from 1Q13 to 1Q14, respectively. Property, Plant and Equipment increased S/ million, from S/. 1,876.9 million, as of December 2013, to S/. 1,892.7 million, as of March 2014, mainly due to CAPEX from the following: 1) consolidation of a new pasta production line, 2) improvement of the cookies production line, 3) capacity increase of the palm oil processing plant, and 4) automatization of the detergent plant. Liabilities As of March 31, 2014, Total Liabilities increased S/ million, mainly due to increased financial short-term financial liabilities and other current liabilities. The change in Current Liabilities was primarily due to the increase in short-term financial liabilities of S/ million, and an increase of Other Accounts Payable in S/ million. Accounts Payable turnover increased 7.9 days, from 49.2 to 57.1 days from 1Q13 to 1Q14, respectively. Long-term Liabilities decreased in S/ million, mainly due to the decrease of deferred taxes of S/ millions and the decreased of Other Financial Liabilities of S/ million. Total Financial Short-Term Liabilities as of March 31, 2014, was S/ million. The Company operates with revolving credit lines for import financing and working capital requirements. 8

9 Total Financial Long-Term Liabilities at March 2014 was S/. 1,736.7 million, representing 77.1% of Total Financial Debt. The currency mix for the Financial Debt, after the derivatives hedge, was: 45% in Peruvian Nuevos Soles, 31% in U.S. Dollars, 18% in Brasilian Reais, with the remaining 6% in Argentine Pesos. The duration of the debt was 6.30 years (not including short-term debt). During 1Q14, Alicorp undertook 18 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. The average rate of U.S. dollar-denominated debt was 3.50% during 1Q14. Equity Shareholders Equity decreased by S/ million, or 4.7%, from S/. 2,366.0 million as of December 31, 2013, to S/. 2,255.5 million as of March 31, 2014, mainly due to the dividend distributions. As of March 31, 2014, ROE reached 17.2% (this ratio considers the average Shareholders Equity and Net Earnings for the last twelve months), close to the 16.9% reported in This was mainly due to a higher Net Profit reported on the 1Q % Net Income & ROE (PEN Million) % 17.2% LTM 1Q14 9

10 V. STATEMENT OF CASH FLOWS Operating Activities As of March 2014, cash flow from operations was S/ million, lower than the S/ million reported during 1Q13, explained by higher working capital needs. The Company s cash position totaled S/ million as of March 31, Investing Activities Cash flow from investing activities for 1Q14 totaled S/ million compared to the S/ million of 1Q13, from the adquisition of Pastificio Santa Amalia and Industrial Teal. Cash flow from investments during the period was mainly explained by the S/ million used in CAPEX. Financing Activities Cash flow from financing activities as of March 31, 2014 was S/ million, compared to S/ million as of March 31, 2013, as a result of short term loans taken for the payment of working capital needs. Existing bank loans are subject to certain debt restrictions, liquidity, profitability and a minimum Shareholders Equity. We no longer have financial covenants in the capital markets. Alicorp is fully compliant with the existing credit requirements, which allows the Company to take on additional debt, if necessary. 10

11 Liquidity and Leverage Ratios The Company s liquidity ratio decreased from 1.57x as of March 31, 2013, to 1.48x as of March 31, 2014, mainly due to a higher short-term debt amount. The leverage ratio (Total Liabilities / Equity) increased slightly from 1.66x as of March 31, 2013 to 1.69x as of March 31, 2014, due to higher financial liabilities. In terms of the Net Debt / EBITDA ratio, this ratio increased from 2.47x as of December 31, 2013 to 2.63x, as of March 31, 2014 also due to higher financial obligations, mostly short term. The Company reported EBITDA figure of S/ million in the last 12 months. Current Ratio & Net Debt / EBITDA Current Ratio Net Debt / EBITDA Q13 2Q13 3Q13 4Q13 1Q14. 11

12 VI. RECENT EVENTS Adquisition of Global Alimentos S.A.C. Alicorp announced the acquisition of Global Alimentos S.A.C., the leading cereal and snack bars company in Peru, and Molinos Saracolca S.A.C., a corn milling business in Peru, for USD million. The acquisition of all assets, brands, processing plants and the mill was conducted through a private process between the two companies in which LXG Capital acted as sole financial advisor. Alicorp will enter the ready-to-eat (RTE) cereals and snack bar market with the acquisition of Peru s leading cereal Angel brand. The acquisition is expected to further strengthen Alicorp s business in a key emerging growth market. This acquisition is a an important step in Alicorp s strategic road map to triple the value of the company by 2021 as it will allow the Company to continue strengthening its leading brands portafolio in Peru by adding a brand that has been market leader for more than 10 years. The transaction will allow the entry to the RTE and snack bars category, segment which is rapidly growing in Peru, but still lags other countries in Latin America. The transaction highlights Alicorp s commitment to consolidate its leading position in Peru and compete in a market that has high growth rates and great potential. With this acquisition Alicorp expects to strengthen the market and business growth through Alicorp s competitive advantages as: i) brand management and product development, ii) distribution network, iii) efficiencies in commodities purchase and iv) achievement of higher production efficiencies. Reorganization of the Animal Nutrition Business In March 2014, at the General Shareholders Meeting, shareholders approved the reorganization project in which Alicorp S.A.A and its subsidiary Molinera Inca S.A. transfer the patrimonial block of assets and liabilities to Vitapro S.A. The reorganization is in line with the Company s strategic focus of being a leader in the aquaculture industry in the region, and acknowledges the specific integrated approach that this business requires. Consumer Goods Business Restruturation In order to achieve the 2021 vision of triplicating the Company s value, Alicorp announced its plan to integrate the Commercial and Marketing Divisions in Peru into a new larger Consumer Goods business, and to create a position for Vice President of Strategic Planning. The new Consumer Goods Vice President, Patricio Jaramillo, will assume the new 12

13 responsabilities in May of this year, and the new Strategic Planning Vicepresident, Mario Rossi, will assume his responsabilities on the first quarter of the next year. Pastificio Santa Amalia accelerates its growth in Brasil Alicorp s last international adquisition, Pastificio Santa Amalia, launched a plan to increase production and to implement its most aggressive Marketing plan since inception. In an interview in one Brasil s foremost important economy and finance magazines, Alicorp s Country Manager, Vicente Barros, discussed that he expects growth will come from the strenghtehing of it s Santa Amalia Brand with pasta Speciale in the state of Minas Gerais and the capacity growth expansion in Pastas will allocateit s it s brand to further growth in differents adyacent regions of the country. Plant and Process Automatization looking forward 2021 By the 2009, Alicorp began an ambitious project to automate all plants and processes of the Company. Last year, the Company was invited to exhibit its successful case to one of the most prestigious events on process automatization, PSUG, in Houston. During the first quarter of 2014, Alicorp was invited again as one of the event s main expositors in order to present the automatization of the detergent plant. 13

14 New Product Launches and Re-launches During 1Q14, Alicorp s Consumer Goods Business had many launches and re-launches, mainly in Peru and Brasil. In the consumer goods business, Alicorp launched an extra virgin olive oil under the Primor brand. The product is part of the strategy to consolidate Primor as a premium brand and intending to strengthen the Company s commitment to high value added and healthy products. In the sauces category, Alicorp launched a ready to serve red sauce under the Don Vittorio portfolio, Salsa Roja Completa. The sauce has all the ingredients of the typical homemade Peruvian dishes and serves as a perfect complement for all types of pasta. The launching of this product is in line with the Company s goal strengthening Don Vittorio s brand in the market and will help households prepare pasta and it s sauce faster. In the home care category, Alicorp relaunched 3 products: a new Bolivar bar soap in new shape aimed at cleaning more efficiently, new varieties of Bolivar detergents for black, white and color clothes, and a new Marsella detergent fragrance. The Nicolini brand launched a new edition of its famous recipe cookbook, What will I cook today?. The cookbooks has been very popular since 1970, and has been relaunched with in order to reactivate the Nicolini brand in the pasta market. In the industrial products segment, Alicorp relaunched 2 flour brands, Blanca nieve and Inca, with the objective of strengthening some of the resistance and baking volumes attributes for bakery. Both brands were redesigned to increase bakers with the brands. In the food service category, Alicorp launched a new pasta under the Sayon portfolio aimed at the value segment with the benefits of the brand s well known quality to price relation. The objective of the campaign is to make Sayon pasta the best soup making choice in the market. In Argentina, Alicorp launched a new cookie line under the Okebon brand. The product was launched in order to expand Okebon s portfolio and to adapt it to changing market trends towards more healthy products as the product contains real milk and natural sweetners. 14

15 In Brasil, 2 new varieties of pasta were launched: Santa Amalia Speciale, aimed at increasing volume, profitability and strengthen the brand, and Don Sapore pasta aimed at targeting the value segment market. In the sauces category, 3 varieties were launched under the brand Speciale. Awards and Social Responsibility Euromoney awarded Alicorp for being one of the 10 Best Managed Companies in LatinAmerica. The nomination included 192 companies of Mexico, Brasil, Chile, Argentina, Colombia and Peru; main evaluation criteria being productivity, growth potential, market strength, quality management and profitability. Alicorp was also recognized having the best corporate treasury in Latin America. Alicorp created the first specialized business management program in food cuisine. The program s purpose was to teach the restaurant owners to manage their restaurants according to market best practices. The objective, as an alliance of the Restaurant association and Alicorp, is to consolidate the industrial products in the foodservice segment. Alicorp began the workshorps of the Radio Saludable program which aims to contribute to improve the child malnutrition index in the lowest income regions of Peru. In this program, Alicorp works with local radios and with the World Association of Communitary Radios of Latin America and Caribe (AMARC). 15

16 About Alicorp Alicorp is a leading consumer goods company headquartered in Peru, with operations in other Latin American countries, such as Argentina, Brasil, 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, Brasil, Argentina, Ecuador, Colombia and Chile, among other countries, (2) Industrial Food Products (industrial flour, industrial lard, pre-mix and food service products), and (3) Animal Nutrition (fish and shrimp feeding). Alicorp has over 7,314 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

17 ALICORP S.A.A. Consolidated Quarterly Financial Statements Consolidated Statement of Financial Position As of March 31, 2014 and December 31, 2013 (in thousands of Peruvian Nuevos Soles) Assets Current Assets Notes March December Liabilities and Shareholders Equity Current Liabilities Notes March December Cash and Cash Equivalents 2 88,391 92,890 Other Financial Liabilities , ,175 Other Financial Assets 3 9,172 4,740 Trade Account Payables 697, ,974 Trade Account Receivables, Net 890, ,774 Other Account Payables , ,871 Other Account Receivables, Net 4 224, ,478 Account Payables to Related Parties 4,536 5,151 Account Receivables from Related Parties Provisions 75,356 95,326 Advances to Suppliers 57,896 35,531 Current Income Tax 19,948 12,358 Inventories 5 825, ,252 Provision for Employee Benefits 12 9,857 2,593 Biological Assets 0 0 Total Current Liabilities 1,527,018 1,191,448 Deferred Tax 81,372 61,967 Other non financial assets 70,782 12,104 Assets classified as held for sale 12,111 9,559 Non-Current Liabilities Total Current Assets 2,259,885 2,131,720 Other Financial Liabilities 10 1,736,697 1,762,184 Other Account Payables , ,597 Non-Current Assets Account Payables to Related Parties 0 0 Other Financial Assets 3 283, ,609 Deferred Income Tax Liabilities 401, ,357 Investments in associates 6 29,268 29,205 Provisions 7,931 8,265 Other Account Receivables 18,829 21,375 Provision for Employee Benefits 12 5,890 7,403 Property, Plant and Equipments, Net 7 1,892,749 1,876,942 Intangible Assets, Net 8 784, ,069 Total Non-Current Liabilities 2,281,394 2,336,806 Deferred Tax 85,402 89,067 Total Liabilities 3,808,412 3,528,254 Goodw ill 9 709, ,310 Total Non-Current Assets 3,804,013 3,762,577 Sharedholders' Equity Share Capital 847, ,192 Investment Shares 7,388 7,388 Reserves 169, ,903 Retained Earnings 1,209,589 1,263,996 Other Shareholders' Equity Reserves 13,035 77,734 Equity Attributable to Owners of the Company 2,246,642 2,357,213 Non-Controlling Interests 8,844 8,830 Total Shareholders' Equity 2,255,486 2,366,043 TOTAL ASSETS 6,063,898 5,894,297 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 6,063,898 5,894,297 17

18 ALICORP S.A.A. Consolidated Statement of Comprehensive Income For the Quaters Ended March 31, 2014, 2013 (in thousands of Peruvian Nuevos Soles) Notes For the Quarter Ended March 31, 2014 For the Quarter Ended March 31, 2013 For the cumulative period Starting on January 1 and Ending March 31, 2014 For the cumulative period Starting on January 1 and Ending March 31, 2013 Continuing Operations Revenue 1,390,229 1,221,450 1,390,229 1,221,450 Other Revenues Net Sales 1,390,229 1,221,450 1,390,229 1,221,450 Cost of Sales -1,012, ,143-1,012, ,143 Gross Profit (Loss) 377, , , ,307 Selling and Expenses -180, , , ,024 Administrative Expenses -74,891-75,019-74,891-75,019 Profit (loss) on the disposal of financial assets measured at amortized cost Other Operating Income 2,886 6,803 2,886 6,803 Other Operating Expenses Other income (Expenses) Operating Profit (Loss) 124, , , ,002 Financial Income 15 5,012 4,955 5,012 4,955 Financial Expenses Exchange differences on translating foreign operations ,494-25,500-38,494-25,500-19,183-14,914-19,183-14,914 Share in Profits from Associates Profit (Loss) arising from the Difference betw een the Book Value and Fair Value of the Financial Assets Reclassified measured at Fair Value 3,817-8,128 3,817-8,128 Profit (Loss) before Income Tax 75,846 65,415 75,846 65,415 Income Tax Expense -19,114-20,151-19,114-20,151 Profit for the Year from Continuing Operations 56,732 45,264 56,732 45,264 Profit (Loss) for the Year from Discontinued Operations Profit (Loss) for the Period/Year (Net Value) 56,733 45,264 56,733 45,264 Net Profit (Loss) attributable to: Ow ners of the Company 56,678 46,009 56,678 46,009 Non-Controlling Interests Net Earnings (Loss) for the Period/Year 56,733 45,264 56,733 45,264 Basic (cents per share): Earnings per Share Capital in Continuing Operations Earnings per Share Premium in Continuing Operations Earnings per Share Capital in Discontinued Operations Earnings per Share Premium in Discontinued Operations Earnings per Share Earnings per Share Premium Diluted (cents per share): Earnings per Share Capital in Continuing Operations Earnings per Share Premium in Continuing Operations Earnings per Share Capital in Discounted Operations Earnings per Share Premium in Discounted Operations Earnings per Share Capital Earnings per Share Premium

19 ALICORP S.A.A. Consolidated Statement of Cash Flows Direct Method For the Quarters Ended March 31, 2014 and 2013 (in thousands of Peruvian Nuevos Soles) Notes For the cumulative period Starting on January 1 and Ending March 31, 2014 For the cumulative period Starting on January 1 and Ending March 31, 2013 CASH FLOW FROM OPERATING ACTIVITIES Collections from (due to): Sales of Goods and Services Offered 1,441,893 1,449,979 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 55,915 21,145 Payments to (due to): Suppliers of Goods and Services -1,299,465-1,054,405 Salaries -161, ,921 Income Taxes Paid -22,681-27,018 Interests and Returns (not incluided under Financing Activities) 0 0 Dividends (not included under Financing Activities) 0 0 Royalties 0 0 Other Operating Payments -68, ,018 Other Payments -6,320 0 Net Cash Generated by Operating Activities -61,076 84,762 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 Sale of Intangible Assets 0 0 Proceeds from Disposal of Other Long Term Assets 0 0 Interests and Returns Received Dividends Received 0 0 Income Tax Reinbursement 0 0 Other Cash Collected from Investment Activities 0 0 Payments to (due to): Advanced Payments and Loans to Third Parties 0-1,717 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 0-571,723 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 -52, ,081 Advance Payments for Work in Progress for Property, Plant and Equipment 0 0 Purchase of Intangible Assets ,177 Purchase of Other Long Term Assets 0 0 Income Tax Paid 0 0 Other Cash Payments from Investment Activities Net Cash (Used in) Generated by Investment Activities -52, ,698 CASH FLOWS FROM FINANCING ACTIVITIES Collections to (due to): Short Term and Long Term Loans 360, ,188 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 -196, ,576 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 -54,298-34,160 Interests and Returns 0 0 Dividends 0 0 Income Tax Paid 0 0 Other Cash Payments from Financing Activities 0 1,385 Net Cash Used in Financing Activities 109, ,837 Increase (Decrease) Net Cash Flow, before Exchange Rate Changes -3, ,099 Effects of Exchange Rate Changes on the Balance of Cash Held in Foreign Currerncies Increase (Decrease) Net Cash Flow, after exchange rate changes -4, ,099 Cash and cash equivalents at the beginning of the year 92, ,070 Cash and cash equivalents at the end of the year 88, ,971 19