In the morning, the institution of mass consumption Alicarp Its general shareholders meeting informed about the latest deals. The management approved financing through the capital market Restructuring of its responsibilities.
As stated therein Contact sent to the Securities Market (SMV) Authority Alicorp agreed to issue credit notes up to S/ 1,500,000,000.00 or equivalent in US Dollars in circulation. At current exchange rates, this figure is US$402 million.
This bonus will be paid within one or more delivery plans, “Representable by any type of credit representative instrument permitted to companies either through a public offer or through a primary private offer in the national market”The company explains.
Additionally, Alicorp has agreed to provide the directors and/or management of the Company Adoption of necessary or convenient agreements to determine each of the terms, characteristics, conditions and requirements for financing through capital market and subscription of related documents.
What is a debt problem?
The Debt issue It consists of issuing financial securities that promise a future payment in exchange for a price. That is, it is about borrowing money in exchange for securities in the form of debt. But these titles also get returns, otherwise no one would dare to buy them.
Every debt issue is refinanced, so they pay a certain coupon throughout the life of the title, and when it matures, the money is returned to the lenders and that income makes these titles attractive.
Alicarp seeks to reverse losses
The Peruvian consumer goods line has faced a troubled year, plagued by a series of events that have impacted the pockets of Peruvians. From national protests, climate change and the El Nino phenomenon, as well as the apparent recession and withdrawal of investment in the country.
specific, Alicorp has had three consecutive quarters with declining margins, both in terms of revenue, its profitability and its EBITDA indicator. The company reported 14% lower sales in the last quarter (July-September) alone, and 80% lower profit than the same period in 2022.
read more: Moody’s downgrades Alicorp’s ratings due to financial challenges
Ratings agency Moody’s reviewed Alicorp’s situation and ordered its ratings to be revised downwards. Moody’s expectation matter Alicorp will face difficulties in improving its consolidated margins and restoring growth Revenue due to significant challenges.
The company highlights the actions of Alicorp To improve its liquidity profile including debt reduction, increased credit lines and improvements in working capital management.
As of September 2023, Alicorp had financial debt of S/ 5,500.2 million (excluding accrued interest), 10.6% higher than that recorded at the end of the previous year. This, among other indicators, comes from the resources raised to finance the purchase of inputs for the milling business, which is done between March and April every year.
As for the composition of financial debt, it includes: i) long-term bank loans (S/ 2,034.5 million); ii) Working capital loan (S/ 745.3 million); iii) Local Corporate Bonds (S/ 708.9 million; iv) IASA Bonds (S/ 321.1 million); v) International Corporate Bonds – Senior Notes (S/ 1,389.7 million); and, vi) Right-of-use liabilities – IFRS 16 (S/ 300.7 million).
read more: Alicorp’s sales fell again by 14% and its net profit fell by 80%
