Peruvian CPG business boosts Alicorp’s first quarter results
Profit (EBITDA) increased by 12.7% year-on-year, to hit amounted to S/ 210.2 million (US$ 64 million), with EBITDA margin being in line with 2017’s Q1 at 12.3%.
The company reported that revenue from its consumer goods Peru business increased 12% to reach S/624.4 million US$ 190.3 million) during the first quarter, with much of this attributed to increases in laundry detergents, sauces, pasta, domestic oil, and canned tuna.
“We expect that the Peruvian economy will continue showing a gradual recovery, driven by a favorable international environment, the absence of climatic phenomenon, stable inflation and better conditions for consumer credit,” stated the company in a presentation.
The key trends for this market are the continued predominance of the traditional retail, consumer preference for value brands and private labels, higher activity in promotions and discounts, and the growth of new retail formats, such as cash & carries, discounters, and convenience stores.
However, international CPG revenue and volume decreased by 15.8% and 4.8%, respectively, year-on-year, said the company. In Argentina, revenue decreased by almost 15% to S/ 108.2 million (US$ 32.9 million), while in Brazil it decreased by almost 18% to S/ 102.7 million (US$ 31.3 million).
M&A
Alicorp is also going through the final stages of its potential acquisition of Fino and ADM Bolivia, which would include the edible oil brands Fino and Sabrosa, the margarine brands Regia and Primor, and the lard brand Gordito, and Karina, among others. These brands represented 40%, 60%, and 50% of Bolivia’s category market share, respectively.
