Leche Gloria SA

Leche Gloria SA maintains a capital structure characterized by significant leverage, with long-term debt of PEN 1.81 billion against total equity of PEN 1.87 billion. The debt-to-equity ratio stands at 0.97, indicating a balanced but substantial reliance on debt financing. Liquidity is assessed as medium, supported by a current ratio of 1.34, which suggests adequate short-term asset coverage for liabilities. However, the company holds only PEN 301.6 million in cash and equivalents, resulting in a negative net cash position when total debt is subtracted, a key flag in the risk assessment.

Profitability metrics show a return on equity (ROE) of 12.52% and a return on assets (ROA) of 4.52%. The company generated PEN 6.09 billion in revenue, yielding a gross profit of PEN 1.38 billion and an operating income of PEN 490 million. Net income reached PEN 306 million, reflecting the impact of interest expenses and taxes on the operating performance. Without cohort median data provided, these returns are evaluated in isolation, though the positive ROE indicates effective use of shareholder equity.

Net margin of 4.15% surpasses the 3.95% cohort median, reflecting effective bottom-line profitability in the sector.

Cash conversion ratio of 1.1 exceeds the 0.98 median, suggesting robust ability to turn earnings into cash.

Net income grew 7.4% year-over-year, showing recent profitability improvement despite broader revenue headwinds.

Revenue declined 4.8% annually over four years, signaling persistent top-line contraction and shrinking market presence.

Debt-to-equity ratio of 0.97 ranks in the bottom quartile, indicating significantly higher leverage than peers.

Net income fell 6.0% annually over four years, revealing long-term earnings erosion despite recent quarterly gains.

Medium liquidity and credit risk flags suggest potential challenges in meeting short-term obligations or debt servicing.