Alicorp (ALICORC1) Q3 2024 earnings summary

Executive summary

• Completed acquisition of Refinería del Espino for USD 244 million, strengthening edible oils and laundry soaps, and providing access to 86,000 points of sale; transaction financed through debt and completed in September 2024.

• Sale of the Bolivian crushing business for USD 173 million, aligning with a focus on core businesses and reducing working capital needs; divestiture finalized in Q4 2024.

• Q3 2024 revenue was S/ 3,213.9 million, down 6.3% year-over-year, while net income surged to S/ 183.1 million, a 6.8x increase, driven by higher operating profit and improved margins.

• Consumer Goods Peru, International Businesses, and B2B segments delivered strong gross profit and EBITDA growth year-over-year.

• Management changes included the appointment of a new CFO, Luis Banchero, and transition of Manuel Romero to a new role outside the company.

Significant events and developments

• Acquisition of Refinería del Espino brought specialty fats, new brands, and expected synergies valued at $40–$60 million.

• Sale and spin-off of Crushing and Consumer Goods Bolivia businesses finalized in Q4 2024.

• Share buybacks contributed to leverage changes and reduced retained earnings and equity.

• No dividend distribution in 2024, contrasting with prior year.

• Goodwill increased by S/ 493 million due to the Refinería del Espino acquisition.

Financial highlights

• Consolidated adjusted gross profit for Q3 2024 was PEN 777 million, up 26% year-over-year, with all business units contributing positively.

• Adjusted EBITDA reached PEN 447 million, a 45% year-over-year increase, with consumer goods and international units as main drivers.

• Net income surged to S/ 183.1 million, a 6.8x increase from Q3 2023, with net margin improving to 5.7%.

• Gross margin improved to 24.6% in Q3 2024 from 18.0% in Q3 2023.

• SG&A expenses increased 10.6% year-over-year to S/ 445.2 million, partly due to non-recurring acquisition costs.