Market Overview

Alicorp First Quarter 2018 Consolidated Financial Statements


Consolidated Revenue amounted to S/ 1,710.7 million (+10.1% YoY).
EBITDA increased by S/ 23.6 million, to S/ 210.2 million (+12.7% YoY)
with an EBITDA Margin of 12.3%. Additionally, Net Income reached S/
103.8 million, with a Net Margin of 6.1%, an increase of 1.1 p.p. YoY.
Net Debt-to-EBITDA ratio decreased from 1.00x as of December 2017 to
0.94x as of March 2018.

Alicorp S.A.A. ("the Company" or "Alicorp") (BVL: ALICORC1 and ALICORI1)
announced today its unaudited financial results corresponding to the
First Quarter 2018 (Q1 18'). Financial figures are reported on a
consolidated basis and are in accordance with International Financial
Reporting Standards ("IFRS") in nominal Peruvian 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). Financial figures include the effect of
the adoption of IFRS 9 (Financial Instruments) and IFRS 15 (Revenue from
Contracts with Customers).




1. Consolidated Revenue amounted to S/ 1,710.7 million (+10.1% YoY),
while Volume reached 461.7 thousand tons (+12.4% YoY). Increase in
Revenue was mainly explained by: i) a 11.8% YoY increase in the
Consumer Goods Peru business due to growth from implemented
innovations and from redesigning our commercial strategy for the
economic segment, mainly in our core categories, and ii) a 35.0% YoY
increase in the Aquaculture business mainly as a result of gaining
market share in the Ecuador's shrimp feed market, coupled with an
expansion within the market.
2. Revenue and Volume from the Consumer Goods Peru business reached
S/624.4 million (+11.8% YoY) and 127.0 thousand tons (+10.1% YoY)
during Q1 18'. This increase was mainly explained by: i) mainly the
growth in our core categories such as Laundry Detergents (+S/ 13.6
million YoY), Sauces (+S/ 11.2 million YoY), Pasta (+S/ 6.2 million
YoY), as well as Domestic Oil (+S/ 5.1 million YoY), and ii) the
Canned Tuna category, launched in Q2 17' (+S/ 15.3 million YoY).
Furthermore, the Company's commercial strategy resulted in an equal
or a higher volume share in 13 out of our 19 categories (including
3. Regarding product innovation, during Q1 18' the Company
launched/revamped 9 products (4 in Consumer Goods Peru, 2 in B2B, 1
in Consumer Goods International and 2 in Aquaculture). The following
launches can be highlighted: i) the new vanilla & caramel fragrance
softener under the "Bolivar" mega brand, seeking to strengthen the
brand positioning, and ii) "Frutisimos" drinkable jelly under the
"Negrita" brand; aiming to highlight and increase the naturalness of
the brand.
4. Gross Margin increased by 1.3 p.p. YoY (27.6% in Q1 18' versus 26.3%
in Q1 17'), while Gross Profit reached S/ 471.4 million, a 15.3%
increase compared to the S/ 408.9 million of


Q1 17'. The improvement was mainly explained by i) a revenue mix
towards more value added products, manufacturing efficiencies, and
lower raw material prices in the Consumer Goods Peru Business, ii)
product formula optimization and lower raw material prices in the
Aquaculture business, iii) higher contribution from the Food
Service Platform, and iv) savings in procurement and manufacturing
as a result of our efficiency program.

5. EBITDA amounted to S/ 210.2 million (+12.7% YoY), and EBITDA Margin
reached 12.3%, in line with Q1 17'. Excluding one-time expenses
associated to i) efficiency program and ii) the M&A transaction in
Bolivia, EBITDA Margin added up to 12.8%.

Consequently, Net Income totaled S/103.8 million during Q1 18',
(+34.1% YoY), while Net Margin reached 6.1%, (+1.1 p.p. YoY). As a
result of the increase in profitability and lower Net Financial
Expenses, Earnings per Share (EPS) increased from S/ 0.090 in Q1
17' to S/ 0.121 in Q1 18' (+34.4% YoY). On March 2018, Alicorp's
General Shareholders Meeting approved a dividend payment of S/
205.1 million, resulting in S/ 0.24 per share to be distributed on
May 25th, 2018.

7. Cash flow from Operations as of March 2018 was S/ 47.1 million, S/
222.7 million lower than the figure generated as of March 2017,
mainly explained by the effect of the supply chain finance program
implemented in 2016. Cash Flow from Investing Operations was S/ 29.8
million, compared to S/ -15.3 million registered as of March 2017
explained by the income of held for investments of S/ 76.2 million,
while CAPEX investments as of March 2018 was S/ 40.3 million.

As of March 2018, Net Debt decreased by S/ 31.9 million versus
December 2017, reaching S/ 866.9 million. Although Total Debt was
S/ 1,830.6 million as of March 2018, (S/ 111.6 million lower
compared to December 2017), Net Debt decreased as a result of i)
an efficient working capital management, ii) higher EBITDA
contribution, and iii) lower financial expenses and FX losses. Net
Debt-to-EBITDA ratio slightly decreased from 1.00x as of December
2017 to 0.94x as of March 2018.


For a full version of ALICORP's First Quarter 2018 Earnings
Release, please visit:


Conference Call

Alicorp S.A.A. (BVL: ALICORC1 and ALICORI1)

Cordially invites you to discuss First Quarter 2018 Results
Date: Wednesday, May 2, 2018
Time: 12:00 p.m. Eastern Time
11:00 a.m. Lima Time
To access the call, please dial:
From the U.S.: 1-877-830-2576
From Outside the U.S.: 1-785-424-1726
Conference ID Number: ALICORP

Alicorp's 1Q18 Results will be accompanied by a webcast
presentation available at:



Alicorp is a leading Consumer Goods company headquartered in Peru, with
operations in other Latin American countries, such as Argentina, Brazil,
Chile, Ecuador, and exports to other countries. The Company focuses on
three core businesses: (1) Consumer Products (food, personal and home
care products), in Peru, Brazil, Argentina, Ecuador, Colombia and Chile,
among other countries, (2) B2B Products (industrial flour, industrial
lard, pre-mix and food service products), and (3) Aquaculture (fish and
shrimp feeding). Alicorp has over 7,600 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.

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