- The company's last quarter results stood out for a 3.5% growth in Gross Profit, which reached S/690 million, compared to the same period in 2022.
- Excluding the Grinding business, the growth in Gross Profit reached 10.9%, due to the outstanding performance of the Mass Consumption and B2B businesses, a result of the strategy changes implemented.
- The company's annual sales reached S/13,656 million.
Alicorp presented the financial results for the last quarter of 2023 and annual results, which reflect the results of the actions carried out by the company to strengthen its emblematic brands and deploy actions that contribute to the improvement of its results in the businesses in which it is involved. present. Likewise, the annual results have been impacted by the effects of lower household consumption, volatility in raw material prices and lower demand for shrimp in the international market.
In the fourth quarter of 2023, Alicorp's consolidated sales reached S/3,532 million, that is, 15.1% less than in the fourth quarter of 2022. For its part, Earnings before interest, taxes, depreciation and amortization (EBITDA ) consolidated reached S/339 million, 3.9% lower than the same period in 2022; due to lower performance in the Milling business and the external impacts that the Aquaculture feed business (Vitapro) had as a result of the global situation in the shrimp market. However, excluding the results of Grinding, where volatility is observed in raw material prices; The company's consolidated EBITDA grew 15.1%, reflecting a positive performance due to the better results of Peruvian Mass Consumption, International Mass Consumption and B2B (Alicorp Soluciones).
These better results respond to the strategy deployed in the last year, especially in the Peru Mass Consumption business where it has been possible to have a better mix of channels and focus on emblematic brands. In that sense, the Gross Profit of said business for the fourth quarter reached S/343 million, achieving a growth of 29.7% compared to the fourth quarter of 2022.
Quarterly Results by Business
During the fourth quarter of 2023, the Mass Consumption business in Peru continued to deploy a strategy that consists of strengthening its emblematic brands and maintaining a good sales mix between the traditional channel (warehouses and markets) and the modern channel (supermarkets). As a result, fourth quarter EBITDA increased by 73.0% compared to Q4 2022, reaching S/172 million. These actions also impacted Gross Profit and Gross Profit per Ton, which increased by 29.7% and 44.2% respectively compared to the same quarter of the previous year.
Regarding International Mass Consumption, EBITDA reached S/23 million, S/38 million more compared to the same quarter of 2022; which reflects the good performance of our business in Bolivia, especially in the categories of household oils, butters, detergents, laundry soap and margarines; as well as better business performance in Ecuador, where a process of prioritizing emblematic categories has begun. These actions have contributed to the result of the Gross Profit that increased by 81.9% and the Gross Profit per Ton that grew 2.2 times.
For its part, the B2B business (Alicorp Soluciones) presented an EBITDA of S/75 million, which represented an increase of 30.0% compared to the same period of the previous year, showing better performance of the Baking and Cleaning platforms. In the period, Gross Profit grew 22.1% while Gross Profit per Ton grew 20.5% compared to the fourth quarter of 2022.
Meanwhile, the Aquaculture business (Vitapro) recorded a contraction in EBITDA of 49.8%, reaching a figure of US$16 million that is explained by the complexity of the shrimp market that still faces challenges at a global level, due, among other factors, to lower demand from China. As a result, the business continues to adapt to market dynamics through technical assistance to its clients, better formulations in its products, competitive costs and new launches.
On the other hand, the Grinding business reached an EBITDA of US$5 million, 72.1% less than in Q4 2022. Although the volume sold in the fourth quarter grew 17.7%, gross profit decreased by 42.3% due to volatility in the prices of raw materials, especially soybeans. It should be noted that this negative impact was partially impacted by a positive exchange rate effect of US$6 million, generated mainly by identified opportunities that, although operational in nature, are not considered as part of the operating result due to accounting policies, and therefore excluded from EBITDA.
Annual results by business
At the end of 2023, Alicorp's annual consolidated sales reached S/13,656 million, which represents a decrease of 11.3% compared to 2022. This resulted in a year in which consumption contracted and in which prices of raw materials have shown volatility. For its part, the result of the consolidated Earnings before interest, taxes, depreciation and amortization (EBITDA) for 2023 is S/1,149 million, 29.4% less than in 2022. However, excluding the Grinding business, the EBITDA grew 1.2%, showing a significant recovery in the second part of the year, based on the strategy changes implemented.
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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).