Alicorp, a Peruvian company engaged in the production, distribution, and marketing of mass consumer products, mainly food and cleaning products, presented its financial report for the third quarter of 2021.
Alicorp's consolidated sales amounted to S/. 3,472 million in the third quarter of 2021, an amount that translates into a growth of 36.7% compared to the third quarter of 2020, explained by the recovery of certain businesses such as B2B, Vitapro, and Milling.
Gross profit increased by 6.3% due to the effect of a lower base in 2020. However, Gross Margin decreased by 5.3% compared to 3Q20 explained by higher international raw material prices, increased logistics costs, and the devaluation of the Peruvian sol.
"International prices of raw materials such as soybeans, wheat, and corn have increased consistently over the last 16 months, as have international prices of petroleum products such as plastic resins, which are also part of the production chain, and maritime freight, among others. To these factors is added the local impact caused by the high devaluation of the sol against the dollar recorded in the last 3 months," according to a press release.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) grew 1% compared to the same period of 2020. The increase in gross profit was offset by higher administrative, selling, and storage expenses.
Net Income totaled S/ 101 million in 3Q21, a decrease of 36.5% compared to the same quarter of the previous year due to lower operating income and higher net financial expenses and income tax. On a cumulative basis, net income increased 10.9% due to a lower base impacted by non-recurring COVID-19 related expenses.
"The Peruvian company Alicorp continues to deploy actions to offset the impact that the global economic situation has generated in its businesses," the company said.
Likewise, Alicorp is aware that the digital world is advancing faster and faster, so they have boosted their presence in e-commerce. Alicorp's vice president of mass consumption, Patricio Jaramillo, said that "the pandemic led the company to accelerate the development of its digital platforms by 300%. The company has been devising new commercial strategies to differentiate itself from the competition, as Alicorp aims to contribute to Peruvian families."
In addition, it maintains a social commitment to Peruvian society, so they changed the name of one of its most famous products, 'Negrita', for "Umsha", to combat racism in our country. Umsha will maintain a portfolio of soft drinks, desserts, and culinary aids and will gradually incorporate new products. Likewise, Alicorp assured that they will promote more initiatives to promote diversity among Peruvians.
