Alicorp First Quarter 2017 Consolidated Financial Statements

LIMA, Peru–(BUSINESS WIRE)–Alicorp S.A.A. (“the Company” or “Alicorp”) (BVL:ALICORC1 and ALICORI1)
announced today its unaudited financial results corresponding to the
First Quarter 2017 (Q1 17’). 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).


1. Consolidated Revenue amounted to S/ 1,590.3 million (+10.6% YoY),
while Volume reached 410.8 thousand tons (+7.2% YoY). Increase in
Revenue is mainly explained by: i) a 6.8% YoY increase in the Consumer
Goods Peru division, ii) a 30.7% YoY increase in the Fish Feed platform
as a result of a recovery after the algal bloom, iii) a 28.3% YoY
increase in Brazil, mainly due to the appreciation of the Brazilian Real
against the Peruvian Sol, and iv) a 14.0% YoY increase of the Shrimp
Feed platform due to a recovery after “El Niño” phenomenon, an increase
in market share, and a shift in the revenue mix towards higher value
added products.

2. Revenue and Volume from the Consumer Goods Peru division reached S/
584.7 million (+6.8% YoY) and 115.4 thousand tons (+3.2% YoY) during Q1
17’. This increase is mainly explained by the growth registered by our
core categories such as Edible Oils, Laundry Detergents, and Pasta. The
Company’s branding strategy resulted in equal or higher value share in
11 out of 15 categories.

3. During Q1 17’ the Company launched and revamped 9 products (3
products in Consumer Goods Peru, 3 products Consumer Goods
International, 2 products in B2B, and 1 product in Aquaculture). Among
these launches the following can be highlighted: i) Fettuccini “Don
Vittorio”, a new pasta format, in order to expand Don Vittorio’s product
portfolio while offering a high price-to-quality value proposition and
ii) “Nicovita Finalis” a new shrimp feed diet with a specialized
nutritional profile in order to participate in the lower income market

4. Gross Margin increased by 0.5 p.p. YoY (30.9% in Q1 17’ versus 30.4%
in Q1 16’), while Gross Profit reached S/ 491.8 million, a 12.4%
increase compared to the S/ 437.7 million of Q1 16’. This improvement is
explained mainly by i) revenue management initiatives, ii) lower raw
material and other supplies prices for the Fish Feed platform, and iii)
savings in procurement and manufacturing as a result of our efficiencies

5. EBITDA amounted to S/ 185.8 million (+13.8% YoY), and EBITDA Margin
increased by 0.3 p.p. YoY (11.7% during Q1 17’ versus 11.4% in Q1 16’).

6. Net Income totaled S/ 82.6 million during Q1 17’, an increase of
45.8% YoY, while Net Margin reached 5.2% (+1.3 p.p.). Higher Net Income
is explained by: i) higher operating contribution from the Consumer
Goods Peru business, the Aquaculture businesses, and the Brazilian
operation, and ii) a decrease in Net Financial Expenses and FX exchange
losses. Consequently, Earnings per Share (EPS) increased to S/ 0.096
from S/ 0.066 in Q1 16’.

7. Cash flow from Operations as of March 2017 was S/ 270.0 million, S/
219.7 million higher than the figure generated as of March 2016. This
increase was mainly explained by: i) a reduction in our Cash Conversion
Cycle (Accounts Receivable decreased S/ 82.8 million and Accounts
Payable increased S/ 106.5 million), and ii) higher Consolidated
Revenue. Cash Flow for Investing Operations was S/ 15.3 million,
compared to S/ 29.9 million registered as of March 2016. CAPEX
investments as of March 2017 were S/ 19.3 million.

8. As of March 2017, Net Debt decreased by S/ 222.3 million versus
December 2016, reaching S/ 1,110.6 million. Total Debt was S/ 1,643.5
million as of March 2017, S/ 37.1 million higher compared to December
2016. Net Debt decreased as a result of a strong cash flow generation in
Peru due to working capital efficiencies, and higher profitability. Net
Debt-to-EBITDA ratio decreased from 1.66x as of December 2016 to 1.35x
as of March 2017.

For a full version of ALICORP’s First Quarter 2017 Earnings Release,
please visit:

Conference Call

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

Cordially invites you to discuss First Quarter 2017 Results
Date: Wednesday, May 3, 2017
Time: 12:00 p.m. Eastern Time
11:00 a.m. Lima Time
To access the call, please dial:
From the U.S.: 1-800-311-9401
From Outside the U.S.: 1-334-323-7224
Conference ID Number: 68632

Alicorp’s 1Q17 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.


Alexander Pendavis, 511-315-0800 Ext.444410
Finance Director & IRO
Fax: (511) 315-0867