Conference Call First Quarter 2014 Financial Results. Presentation3

Size: px

Start display at page:

Download "Conference Call First Quarter 2014 Financial Results. Presentation3"

Laurence Davidson
6 years ago
Views:

1 Conference Call First Quarter 204 Financial Results Presentation3 May 2, 204

2 Agenda 2

Presentation3 Agenda 2 3 4 5 6 Opening Remarks Global Alimentos

3 Presentation3 Agenda Opening Remarks Global Alimentos Acquisition Q4 Highlights Operating and Financial Review Closing Remarks Q&A 3

4 Presentation3 Committed to Generating Shareholder Value Revenues and Volume increased 3.8% and 3.5% YoY. Consumer Goods, B2B Branded products and Animal Nutrition revenues increased 9.4%, 6.3% and 43.8% YoY, respectively. Main contributors were: Pasta, detergents, sauces, industrial flour, shrimp and fish feed Important product innovation through product development. New categories such as olive oil and ready to serve sauces were launched Gross Margin was 27.2%, an increase of 6.9% compared to the 25.4% reached in Q3 EBITDA s growth of 2.5% YoY, reaching S/ MM. EBITDA margin rose 0.8%. Net Income increased to S/ million, an increase of 25.3% YoY Commercial and Marketing Divisions will integrate into Consumer Goods Business Peru. Patricio Jaramillo has been assigned as Consumer Goods Peru Vice President In order to gain strategic focus on being a leading company in the aquaculture industry in the region, Vitapro was created. The Animal Nutrition Business will be transferred to the new company Alicorp announced it has acquired 00% stake in Global Alimentos. Global Alimentos is the leading producer of branded ready-to-eat cereals in Peru under the Angel brand Euromoney recognized Alicorp as one of the 0 Best Managed Companies in Latin America and among the 5 Best Managed Companies in Peru 4

5 Cereals Presentation3 2 Global Alimentos Transaction Rationale Alicorp S.A.A. has aqcuired a 00% stake in Global Alimentos S.A.C. The aforementioned transaction enables Alicorp to: Capture the ready-to-eat (RTE) cereal market in Peru by acquiring a best-in-class business with market share (MS) of 72.5% Access a high-growth rate sector (RTE cereal market amounted to 5y- CAGR of +0% 2 ). Peru s annual RTE cereal consumption is the second lowest in Latin America (only ahead of Brazil) at 0.342/ kg per capita, being the average in Latin America 0.882/ kg per capita Leverage the company strengths through Alicorp s key competitive advantages in: i) brand management, ii) depth of distribution network and iii) Commodity Purchase Product Portfolio & Footprint Highlights Global Alimentos is the leading producer of branded RTE cereals in Peru under the Angel brand, with a MS of 72.5% in cereals and a MS of 8.% in snack bars. Furthermore, Global Alimentos is the leading player in both moms and pops (95%MS) 3 and in supermarkets (45%MS) 3 The Angel brand is strongly rooted among Peruvian consumers, especially in the C, D, and E segments, and is associated with i) nutrition, ii) quality, taste, variety and iii) affordability The product portfolio includes a variety of traditional and innovative extruded and filled cereals that are available in a variety of presentations (weights between 8g and 50kg) Global operates a RTE cereal plant in Chaclacayo, Lima with a capacity to produce 4,000 MT of cereals per annum Products Portfolio Indirect Extruded (flakes) Direct Extruded (rings, puffs, crispies) Main Products Panama Colombia Ecuador Haiti Dom. Rep. Pto. Rico Financial Highlights (USDM) 20A 202A 203A Volume (MTk) Revenues Co-Extruded (Almohadas) Snack Bars Peru Bolivia % Growth - 9.3% 5.6% Gross Profit % Gross Margin 39.% 42.% 46.% Source: Kantar Worldpanel, December Source: Euromonitor Source: Alicorp s Internal Estimate. 4 Volume does not include subproducts.

6 Presentation3 3 Sustained Revenue Growth Year on Year Revenues & Gross Margin Revenues & Gross Margin,22,465,535,60,390 4,474 5,822 5, % 27.6% 27.5% 28.7% 27.2% %, %, % 27.3% 27.4% 27.8% Q3 2Q3 3Q3 4Q3 Q4 Q2 Q3 Q LTM Last 2M as of March 3, 204 6

7 Presentation3 3 Stable Margins Year on Year EBITDA & EBITDA Margin EBITDA & EBITDA Margin % 3.4% 2.5% 5.3% 0.8% % 0.9% 0.8% 2.5% 3.2% 3.% Q3 2Q3 3Q3 4Q3 Q4 Q2 Q3 Q LTM Last 2M as of March 3, 204 7

8 Presentation3 3 Earnings Per Share Earnings Per Share (PEN) Earnings Per Share (PEN) Q3 2Q3 3Q3 4Q3 Q4 Q2 Q3 Q LTM Last 2M as of March 3, 204 8

9 Presentation3 4 Q4 Performance by Business Unit & Regions Alicorp seeks to continue its geographic diversification strategy CONSUMER PRODUCT GOODS B2B BRANDED PRODUCTS ANIMAL NUTRITION TOTAL PERU - Revenues - EBITDA Margin % % % % INTERNATIONAL - Revenues - EBITDA Margin % % % TOTAL - Revenues - EBITDA Margin % % %, % Peru Brazil Argentina Ecuador Chile Others Revenue Mix 60.9% 9.4% 9.4% 8.3% 7.9% 4.% () B2B Branded products includes Operating Income from Other Businesses for S/..8 millions 9

10 4 Consumer Products Goods ( CPG ) Presentation3 Highlights Revenues and Volume increased 9.4% and 8.8% YoY Supported mainly by: pasta, laundry detergents, sauces and laundry soap Operating Income decreased 23.3% to S/ million YoY due to increased SG&A expenses driven by higher selling costs and increase in product launchings Operating Margin decreased 29.8% YoY We launched and re-launched 2 products Revenues & Operating Margin 3,480 3, , % 0.0% 2.4% 0.9% 7.0% % 0.0% 7.0% 0.6% 2.%.3% Q3 2Q3 3Q3 4Q3 Q4 Q2 Q3 Q LTM Last 2M as of March 3, 204 0

11 4 B2B Branded Products ( B2B ) Presentation3 Highlights Revenues and Volume increased 6.3% and 9.6% YoY Supported mainly by: industrial flour, frozen products, bulk oils and pasta Operating Income increased 4.0% YoY, to S/ million in Q4 due to lower COGS We launched and re-launched 2 product Revenues & Operating Margin ,305,465, % 9.5%.0% 0.3% 9.% % 8.5% 9.%.6% 9.9% 0.% Q3 2Q3 3Q3 4Q3 Q4 Q2 Q3 Q LTM Last 2M as of March 3, 204

12 4 Animal Nutrition ( AN ) Presentation3 Highlights Revenue and Volume increased 43.8% and 33.9% YoY, due to increased volume in shrimp feed, as Inbalnor s new plant initiated operations last year Operating Income increased 256.8% YoY to S/ million in Q4 mainly by a decrease in COGS Operating margin increased 48.2% YoY Revenues & Operating Margin (PEN Millions) (PEN Millions) % 4.% 8.8% 5.7% 7.9% Q3 2Q3 3Q3 4Q3 Q % % 5.7% 0.0% 9.3%.4% Q2 Q3 Q LTM Last 2M as of March 3, 204 2

13 Presentation3 4 Debt Net Debt Debt Breakdown by currency 6% Q4 4Q3 Var. % 8% 3% USD PEN Current Debt % BRL Non-Current Debt,68.7, % 45% ARS Total Indebtedness 2,45.0, % Debt Structure as of March 204 (-) Cash % Import Financing 2% Others 3% Net Debt 2,056.6, % Bank Loans 37% International Bonds 58% () Debt after swap. 3

14 Presentation3 4 Financial Metrics Gross Debt Net Debt / EBITDA Short Term Long Term - Current Part Long Term,970 2,034 2,058,986 2,45 3.9x 3.05x 2.96x 2.47x 2.63x,286,534,748,563,705, x Q2 Q3 2Q3 3Q3 4Q3 Q4 4Q2 Q3 2Q3 3Q3 4Q3 Q4 4

15 Presentation3 4 SG&A and CAPEX Expenses SG&A/Marketing (as % of Total Revenue) CAPEX (PEN Million / as a % of Total Revenue) % 9.8% 9.9% 0.9% 0.6% % 4.4% 4.6% 5.0% 5.4% 9.7% 3.9% 7.3% 5.% 3.8%.8% 2.4% 2.4% 2.8% 2.4% Q3 2Q3 3Q3 4Q3 Q4 Q3 2Q3 3Q3 4Q3 Q4 Marketing Administrative Expenses Selling Expenses 5

16 4 Profitability Ratios and Dividends Presentation3 ROE & ROIC 2 Dividend Per Share & Dividend Yield % 4.3% 5.% 6.0% 7.2% 6.9% 7.2% 6.2% % 3.2% 2.8% 2.5% 4.% ROE ROIC 2.0% 2.8% 2.3%.3% 4Q2 Q3 2Q3 3Q3 4Q3 Q Defined as Net Earnings divided by average full year Shareholder s Equity. 2 Defined as Operating Profit Sharing and Current Income Tax expense divided by working Capital plus Net Fixed Assets plus Other Net Operating asset. Considering: -Working capital excludes debt, other accounts (without financial costs), and Current Assets available for sale. -Net fixed assets exclude non operating fixed assets -Other net operating assets include software and brands. 6

17 4 EBITDA Main Drivers Presentation3 Main drivers of EBITDA (YoY) Main drivers to EBITDA Margin.6%.4% 0.3% S/. 33.2M S/. 49.8M 0.9% 0.8% EBITDA Q3 Gross Profit SG&A Other Net Operating Expenses EBITDA Q4 7

18 Jan-0 Feb-0 Mar-0 Apr-0 May-0 Jun-0 Jul-0 Aug-0 Sep-0 Oct-0 Nov-0 Dec-0 Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan-2 Feb-2 Mar-2 Apr-2 May-2 Jun-2 Jul-2 Aug-2 Sep-2 Oct-2 Nov-2 Dec-2 Jan-3 Feb-3 Mar-3 Apr-3 May-3 Jun-3 Jul-3 Aug-3 Sep-3 Oct-3 Nov-3 Dec-3 Jan-4 Feb-4 Mar-4 Jan-0 Mar-0 May-0 Jul-0 Sep-0 Nov-0 Jan- Mar- May- Jul- Sep- Nov- Jan-2 Mar-2 May-2 Jul-2 Sep-2 Nov-2 Jan-3 Mar-3 May-3 Jul-3 Sep-3 Nov-3 Jan-4 Mar-4 4 Capital Markets Presentation3 ALICORC profitability vs. benchmark Price Evolution, Liquidity and Stock Performance 300% ALICORC Q4 Q3 250% 200% 50% 00% Stock Price Average Trading Volume (PEN Millions) % Performance (QoQ) Q4 Q3 0% -50% ALICORC Equity Industrial Sector IGBVL IGBVL Food & Beverage ALICORC IGBVL Industrial Sector IGBVL Food and Beverage -2.9% 6.27% -9.23% -3.73% 20.36% -.54% -9.90% 7.44% ALICORC Average Monthly Trading Volume Average Trading Volume (PEN Millions) (PEN Millions) Q2 Q3 2Q3 3Q3 4Q3 Q4 8

19 Q&A 9

Conference Call Second Quarter 2013 Financial Results. Presentation3

Conference Call Second Quarter 2013 Financial Results Presentation3 August 2, 2013 Agenda 1 Agenda 1 2 Opening Remarks 2Q13 Highlights 3 Operating and Financial Review 4 Closing Remarks 5 Q&A 2 1 Alicorp