VALUATION ALICORP S.A.A.

Renzo Manrique de la Cruz

Finance, Universidad del Pacifico
BUY

Ticker: ALICORC1
Sector: Food
Industry: Manufacture
Alicorp, a sustainable company
It belongs to the Peruvian business Inorganic growth through strategy of mergers Leading consumer goods company in Peru and
group Grupo Romero. Born in 1997 and acquisitions one of the largest in Latin America.

Business Lines A company with extensive experiencie

% of revenues per country
80% +65 years +65% +12
Massive consume
38% 12%
Of experience in the Of market share in new products launches
Food, home care and industry producing Peru, Alicrop leads the in the first quarter of
staff care 4% and providing services consumer industry 2023
O 4%

Aquaculture
25% 60% #1 6
Balanced food for 27% Top Countries of
shrimp, salmon and In mass operations
fish 7%
consumption Peru
O
6% +30
+ 150 Are the countries
B2B
17% 99% Leading brands to which it exports
Imputs for the
Baking, Gastronomy
and Industries sectors Fusions and acquisitions

Grinding 20% 32% Alicorp acquired Value Vitapro is born and joins
29% 2008 Brand Company in 2014 Global
Flours and oils Argentina Alimentos
from sunflower and 9% Alicorp acquired Alicorp adquired Fino y
soybeans O 30% 2012 Okebon in Argentina 2018 Sao in Bolivia

Alicorp acquired Alircorp adquired

Luis Romero Dionisio Romero 2010 Sayon in Chile 2019 Industrial Intradevco
Directory Belismelis Paoletti Chairman of
and Vice president (2006) the Board (2002)
Alicorp acquired
Alicorp sold subsidiaries in
2013 2021 Argentina and Brasil
Management Santa Amália in
Alfredo Perez Gubbins Manuel Romero
Brasil
General Manager (2005) Valdez CFO (2021)
Financial Information
Alicorp experienced large increases in its income in recent years, boosted by the dynamism of the sectors to which it belongs, as wel l as its solid way to generate
working capital. Likewise, the company has high leverage but a solid ability to pay its short-term obligations. An average turnover ratio less than 1 suggests that the
company is not efficiently using its assets to generate sales.

Company Results Current Ratio & Asset Turnover

(PEN S /. mm)

Stable profitability ratios A high leverage: higher Total Assets / Total Equity
Model Assumptions– Income Approach and Market Approach
An explicit projection period of 10 years (2023 – 2032) was assumed, plus perpetuity of 3.0%, since it is considered a going
concern.

Revenues CAPEX (as % revenues) = 2.4%

Total Revenue: Average Growth (2023-2032)= 3.7%. (2023-2032) = 2.4%

The company's income is made up of the sale of goods from It corresponds to a maintenance CAPEX throughout the
the Mass Consumption, B2B, aquaculture and milling projection.
business lines, both in the domestic and foreign markets.
Sales in Peru represent 78.5% and abroad, 21.5%.

In the period 2023-2032, an average growth of 3.7% is expected General Assumptions

• Quantities: Tons are projected for each line of business
based on the growth of real private consumption in the A target D/E ratio of 42.9% is taken
country where the business is present.
• Prices: Prices grow at an inflation rate corresponding to
the inflation of the country where the line of business is Cost of Debt: 8.0%
present. Perpetuity Growth: 3.0%
Long Term Inflation (USA): 2.5%
Long Term Inflation (Peru): 3.0%
M g. EBITDA
Average Mg ebitda (2023-2032) = 13.9%
Unlevered Beta: 1.0x
Tax Rate(%): 30.0%
For 2023, an EBITDA Mg of 13.6% is expected in line with the
recovery in revenues during the year and higher operating expenses.

For 2023-2032, an Gross Mg of 25.6% is expected. And also a Net

Profit Mg of 5.9%

Likewise, sustained growth is projected since the consumer goods

industry in Peru tends to be resistant to economic fluctuations due
to the fundamental nature of the products it offers.
DCF Valuation
The results of the DCF valuation (06/30/2023) resulted in an EV/ EBITDA multiple of 17.5

Weighted Average Cost of Capital Alicorp SAA value

PEN mm
Equity: 70.0% Debt: 30.0%

Cost of
Tax Rate %
Rf β (Rm-Rf) Risk Country Debt
+ x +
2.0% 30% x 8.0%
3.3.6% 1.3 5.7%

Cost of Equity: 13.0% Cost of Debt * (1-T): 5.6%

WACC USD 7.83%
WACC PEN 7.87%

Free Cash Flow

Valuation by Multiples
The results of the Multiples valuation showed an EV/EBITDA multiple range of 8.7x – 11x

Comparable Companies Ratios

Va l u a t i o n M u l t i p l e s EV/EBITDA range

Comps 8.7 11x