Credicorp .(US:BAP)2025-07-24 01:00Summary of Conference Call Company and Industry - The discussion revolves around a company operating in the wholesale and retail segments, specifically mentioning changes in distribution and promotional strategies. The company is undergoing a turnaround process and addressing operational challenges. Core Points and Arguments - Future Prospects: The company believes its future prospects are improving, although current challenges are more core-specific rather than industry-wide [2][3][5] - Cost Savings: The company is nearing the top end of its projected cost savings of $20 to $30 million, with plans to reinvest in core processes and systems for future performance [7][9] - Promotional Strategy Change: A shift from broad store sales to category-specific promotions has impacted sales but positively affected gross margins [11][12] - Trade Segment Performance: The trade segment initially showed a 3.7% increase but experienced underperformance in May and June, which affected overall results [16][18] - Site Consolidation: The company is closing 45 sites primarily in the wholesale segment to improve profitability and operational efficiency, despite short-term disruptions to customer relationships [19][20][24] - Operational Changes: Significant changes in operational management have been made, particularly in retail, to improve performance, although benefits are yet to be fully realized [50][51] - Store Impairment Charges: The company is actively testing for impairment across its network of stores, focusing on profitability indicators to determine which stores may need to close [56][59] Other Important Content - Balance Sheet Review: An extensive review of the balance sheet has been conducted, revealing some disappointing findings, but the company is confident in the thoroughness of the review [28][29] - NPS Implementation: The company has not previously collected Net Promoter Score (NPS) data but plans to implement a program to start collecting this information by August [36] - Long-Term Turnaround: The turnaround process is expected to be significant but not longer than initially anticipated, with a five-year horizon set for strategic financial goals [40][41] - Store Openings: The company plans to open 12 new trade stores in the upcoming fiscal year, while no new retail stores are planned at this time [49][50] This summary captures the key points discussed during the conference call, highlighting the company's strategic direction, operational changes, and financial outlook.