UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934
COMPAÑÍA CERVECERÍAS UNIDAS S.A.
(Exact name of Registrant as specified in its charter)
UNITED BREWERIES COMPANY, INC.
(Translation of Registrant’s name into English)
Republic of Chile
(Jurisdiction of incorporation or organization)
Vitacura 2670, 23rd floor, Santiago, Chile
(Address of principal executive offices)
_________________________________________
Securities registered or to be registered pursuant to section 12(b) of the Act.
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F ___
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ___ No X
CCU REPORTS CONSOLIDATED THIRD QUARTER 2023 RESULTS[1],[2]
Santiago, Chile, November 8, 2023 – CCU
announced today its consolidated financial and operating results for the third quarter 2023, which ended September 30, 2023.
| · | Consolidated Volumes decreased 5.1%. Volume
variation per Operating segment was as follows: |
| o | International Business (4.3)% |
| · | Gross profit increased 8.9% |
| · | EBITDA reached CLP 86,344 million, a 27.7%
increase. EBITDA variation per Operating segment was as follows: |
| o | International Business 30.2% |
| · | Net income reached a gain of CLP 9,499
million versus a gain of CLP 17,226 million last year. |
| · | Earnings per share reached a gain of CLP
25.7 per share. |
| Key figures |
|
3Q23 |
3Q22 |
D % |
YTD23 |
YTD22 |
D % |
| (In ThHL or CLP million unless stated otherwise) |
|
| Volumes |
|
7,559 |
7,964 |
(5.1) |
23,805 |
24,223 |
(1.7) |
| Net sales |
|
686,677 |
684,106 |
0.4 |
1,992,949 |
1,943,073 |
2.6 |
| Gross profit |
|
318,315 |
292,391 |
8.9 |
922,675 |
841,424 |
9.7 |
| EBIT |
|
51,072 |
33,531 |
52.3 |
168,245 |
137,755 |
22.1 |
| EBITDA |
|
86,344 |
67,607 |
27.7 |
268,846 |
235,203 |
14.3 |
| Net income |
|
9,499 |
17,226 |
(44.9) |
63,923 |
71,315 |
(10.4) |
| Earnings per share (CLP) |
|
25.7 |
46.6 |
(44.9) |
173.0 |
193.0 |
(10.4) |
[1] For an explanation of the terms used in this report,
please refer to the Glossary in Additional Information and Exhibits. Figures in tables and exhibits have been rounded and may not add
up exactly to the total shown.
[2] All growth or variation references in this Earnings
Release refer to 3Q23 compared to 3Q22, unless otherwise stated.
PRESS RELEASE |  |
| | |
During the third quarter 2023, CCU continued making
progress to recover financial results and profitability in a challenging and volatile economic environment. The latter is shown at the
operational level, increasing consolidated EBITDA by 27.7% and improving 269 bps the EBITDA margin from 9.9% to 12.6%. The performance
of the quarter shows that the path to improve our profitability under the regional plan “HerCCUles” is moving forward, however
stronger efforts are needed in a context of economic deceleration and volatility in exchange rates and commodity prices. This drives us
to keep putting special focus on the pillars of “HerCCUles”: (1) maintain business scale, (2) strengthen revenue management
efforts, (3) deliver efficiency gains through our Transformation program, (4) optimizing CAPEX and working capital, (5) focusing on core
brands and high volume/margin innovations and (6) continue investing in our brand equity.
In 3Q23, our revenues expanded 0.4%, explained by 5.1%
decrease in volumes more than offset by a 5.7% expansion in average prices in CLP. Lower volumes were caused by a weaker consumption in
Chile and Argentina, while holding market share, and a contraction in wine exports. The higher average prices in CLP were a consequence
of revenue management efforts across all our Operating segments. Gross profit jumped 8.9%, and Gross margin rose 362 bps, from 42.7% to
46.4%, the latter explained by the higher average prices and flat average COGS versus last year. MSD&A expenses increased 2.9%, and
as a percentage of Net Sales grew 94 bps, mainly as a consequence of higher marketing activities, the latter to keep enhancing brand equity.
In all, EBITDA reached CLP 86,344 million, up by 27.7%. Net income dropped 44.9%, totalizing a gain of CLP 9,499 million, versus a gain
of CLP 17,226 million last year. The reduction of net income was mostly explained by two effects in Argentina: (i) a higher loss in Foreign
currency exchange differences by CLP 8,818[3] million from the sharp devaluation of the
ARS during the quarter, and (ii) CLP 8,6653 million of non-recurring expenses related with the route-to-market integration
of our JV in Argentina with Aguas Danone into our operation. Isolating the aforementioned effects, Net income would have increased
25.3%.
In terms of cash generation, we delivered another robust
quarter. Thus, as of September 2023 Net cash inflow from operating activities totalized CLP 205,681 million versus a negative cash inflow
of CLP 21,871 million in 2022, while Net cash (outflow) from investing activities reached CLP 111,051 million, decreasing from the CLP
175,168 million during the same period in 2022. In addition, we have decreased our portfolio complexity and recorded strong brand equity
indicators, being key to hold market share in our main categories.
In the Chile Operating segment, our top line expanded
5.1%, explained by 4.7% decrease in volumes being more than offset by a 10.2% growth in average prices. The higher average prices were
explained by revenue management initiatives. Lower volumes were explained by a challenging consumption environment, although in line with
the industry as market shares remained stable. Gross profit expanded 17.4%, and Gross margin improved from 40.1% to 44.8%, due to top
line performance and lower cost pressures. MSD&A expenses were 12.3% higher, and as percentage of Net sales grew 237 bps from 34.6%
to 37.0%, mostly due to higher marketing activities. In all, EBITDA reached CLP 52,618 million, growing 38.7%, and EBITDA margin increased
320 bps from 10.0% to 13.2%.
In the International Business Operating segment, which
includes Argentina, Bolivia, Paraguay and Uruguay, Net sales recorded a 2.4% contraction in CLP, as a result of 4.3% drop in volumes,
partially offset by 2.0% increase in average prices in CLP. Volumes were negatively impacted by a weaker consumption environment in Argentina,
partially compensated by volume expansion in all the other geographies. Gross profit expanded 1.1%, and Gross margin grew from 48.5% to
50.2%. MSD&A expenses decreased 6.0%, and as a percentage of Net sales improved 167 bps due to efficiencies, compensating higher inflation
and other cost pressures. Altogether, EBITDA reached CLP 25,785 million, a 30.2% expansion from last year.
The Wine Operating segment continued facing a tough
business environment during the quarter. Revenues were down 14.7%, mostly explained by a 17.3% contraction in volumes, while average prices
increased 3.1%, due to revenue management in the domestic markets, partially compensated with negative mix effects. The lower volume was
explained by both, a 14.4% fall in exports from Chile (29.9% contraction of the Chilean industry[4]),
and a 14.8% drop in the Chile domestic market. Gross profit dropped 8.1% but Gross margin improved 296 bps from 38.0% to 40.9%, due to
higher average prices and a decrease in COGS per liter, due to a more favorable cost of wine. MSD&A expenses were flat versus last
year, and as a percentage of Net sales increased 429 bps associated with a lower business scale. In all, EBITDA reached CLP 11,606 million,
a 21.2% contraction.
In terms of our main JVs and associated businesses,
in Argentina, volumes from our water business decreased low-double digit, mainly impacted by a challenging consumption environment. Also,
we successfully continued with the route-to-market integration of this business. In Colombia volumes contracted low-single digit.
During 3Q23, we continued making progress to recover
our financial results and profitability in a challenging and volatile economic context. Our initiatives under “HerCCUles”
are showing positive outcomes through the year, allowing us to recover our operational results, hold business scale and market shares,
improve margins, and strengthening our cash generation. Nonetheless, we are aware that more efforts are needed to improve profitability
further, especially when the business scenario will remain challenging. In order to do so, we will keep executing our strategy to deliver
profitable and sustainable growth.
[3] Figures before taxes.
[4] According to ODEPA, which stands for Oficina de Estudios y Políticas
Agrarias, in Chile.
PRESS RELEASE | |
| | |
|
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS – THIRD QUARTER (Exhibit 1 & 2) |
| · | Net sales were practically flat versus
last year by growing 0.4%, driven by 5.7% higher prices in CLP being almost fully offset by a 5.1% contraction in volumes. In terms of
average prices, the expansion was explained by: (i) a 10.2% growth in the Chile Operating segment, driven by revenue management initiatives,
(ii) a 2.0% increase in the International Business Operating segment, largely explained by revenue management initiatives in Argentina,
partially offset by negative mix effects, and (iii) a 3.1% increase in the Wine Operating segment, mainly associated with revenue management
initiatives in our domestic markets, partially offset by negative mix. Regarding volume growth, the performance by Operating segment was
as follows: (i) 4.7% contraction in the Chile Operating segment due to a challenging consumption environment, (ii) 4.3% decrease in the
International Business Operating segment, driven by a weaker demand in Argentina, partially offset by volume growth in all the other geographies,
and (iii) a 17.3% decrease in the Wine Operating segment, mostly attributable to exports from Chile and a decrease in our domestic markets. |
| · | Cost of sales was down 6.0%, explained
by a 0.9% contraction in Cost of sales per hectoliter and the mentioned decrease in volumes. The Chile Operating segment reported 1.6%
increase in Cost of sales per hectoliter driven by cost pressure in some raw materials, especially sugar and carryover inventories of
malt, and a lower dilution on fixed manufacturing costs from lower volumes. This was partially compensated by a lower cost in aluminum,
and the 8.2%[5] appreciation of the CLP against the USD, impacting positively our USD
denominated costs. In the International Business Operating segment, the Cost of sales per hectoliter contracted 1.4% in CLP, mostly driven
by a translation effect, as in local currency Cost of sales per hectoliter grew due to the 137.6%[6]
depreciation of the ARS against the USD, and its negative impact on USD-denominated costs. In the Wine Operating segment, the Cost of
sales per hectoliter contracted 1.9%, due to a more favorable cost of wine. |
| · | Gross profit reached CLP 318,315 million,
an 8.9% expansion. Gross margin improved 362 bps, from 42.7% to 46.4%. |
| · | MSD&A expenses were up 2.9% and as
percentage of Net sales, increased 94 bps from 38.0% to 38.9%, as a consequence of higher marketing activities, the latter to keep enhancing
brand equity. In the Chile Operating segment, MSD&A expenses expanded 12.3%, and as a percentage of Net sales increased 237 bps. In
the International Business Operating segment, MSD&A expenses in CLP were down 6.0%, and as a percentage of Net sales decreased 167
bps. In the Wine Operating segment, MSD&A expenses were practically flat, while as a percentage of Net sales rose 429 bps associated
with a lower business scale. |
| · | EBIT reached a gain of CLP 51,072 million,
an expansion of 52.3% versus last year, mainly due to higher revenues, boosted by higher average prices as a consequence of revenue management
initiatives, and lower cost pressures. |
| · | EBITDA was up 27.7%, mostly driven by an
38.7% increase in the Chile Operating segment, and the International Business Operating segment growing by 30.2%. These better results
were partially offset by the Wine Operating segment, which is facing a particularly challenging business environment, which decreased
21.2%. EBITDA margin expanded 269 bps, from 9.9% to 12.6%. |
| · | Non-operating result totalized a loss of
CLP 42,638 million, which compares with a negative result of CLP 24,316 million last year. The higher loss was explained by: (i) a higher
loss by CLP 16,389 million in Foreign currency exchange differences, of which CLP 8,818 million are explained by Argentina from the sharp
devaluation of the ARS, (ii) a higher loss in Equity and income of JVs and associated by CLP 8,214 million, mostly associated with the
route-to-market integration of our JV in Argentina with Aguas Danone into our operation, and (iii) lower result in Results as per adjustment
units by CLP 5,334 million. These effects were partially compensated by: (i) a lower loss by CLP 7,880 million in Net financial expenses,
mainly due to higher Interest income associated with more favorable interest rates, and (ii) a higher result in Other gains/(losses) by
CLP 3,734 million, mostly explained by a better result in derivative contracts[7]. |
| · | Income taxes reached a gain of CLP 4,227
million versus a gain of CLP 10,185 million last year. The lower gain was associated with a worse result on Tax effect of permanent differences,
net[8]. |
| · | Net income reached a gain of CLP 9,499
million, a 44.9% contraction when compared with a gain of CLP 17,226 million recorded last year. The reduction of Net income was mostly
explained by two effects in Argentina: (i) a higher loss in Foreign currency exchange differences by CLP 8,8183 million from
the sharp devaluation of the ARS during the quarter, and (ii) CLP 8,6653 million
of non-recurring expenses related with the route-to-market integration of our JV in Argentina with Aguas Danone into our operation.
Isolating the aforementioned effects, Net income would have increased 25.3%. |
[5] The CLP currency variation against the USD considers 2023 average of
period (aop) compared with 2022 (aop).
[6] The ARS currency variation against the USD considers 2023 end of period
(eop) compared with 2022 (eop).
[7] See Note 32 Other Gain/(Losses) of our Financial Statements as of September
2023.
[8] See Note 25 Income taxes of our Financial Statements as of September
2023.
PRESS RELEASE | |
| | |
| CONSOLIDATED
INCOME STATEMENT HIGHLIGHTS – 9 MONTHS YEAR TO DATE (Exhibit
2 & 4) |
| · | Net sales were up 2.6%, fully explained
by 4.4% higher average prices in CLP while volumes declined 1.7%. The higher average prices in CLP were largely explained by the 9.0%
growth in the Chile Operating segment, due to the implementation of revenue management initiatives, partially compensated by negative
mix effects. Average prices expanded 0.6% in the Wine Operating segment, and in the International Business Operating segment contracted
slightly by 0.3%, explained by negative translation effects in Argentina, as in local currency prices grew due to revenue management efforts.
Volumes were down 1.7%, driven by a 0.7% drop in the Chile Operating segment, a 2.8% decrease in the International Business Operating
segment, highly concentrated in Argentina, due to a weaker consumption, and a 16.1% drop in the Wine Operating segment, the latter mainly
due to a challenging scenario for wine exports. |
| · | Cost of sales was down 2.8%, mainly explained
by a 1.1% decrease in Cost of sales per hectoliter and the lower volumes. The Chile Operating segment reported a 0.9% growth in Cost of
sales per hectoliter, driven by higher costs in some raw materials, mainly sugar and carryover inventories of malt, partially compensated
with lower costs in aluminum, efficiencies in manufacturing, and the 4.4%3 appreciation of the CLP against the USD, impacting
positively our USD denominated costs. In the International Business Operating segment, the Cost of sales per hectoliter contracted 4.1%
in CLP, mostly explained by a translation effect in Argentina, as in local currency Cost of sales per hectoliter expanded, mostly driven
by the 137.6%4 depreciation of the ARS against the USD, and its negative impact on USD-denominated costs. In the Wine Operating
segment, the Cost of sales per hectoliter grew 3.1%, due to higher costs in packaging materials. |
| · | Gross profit reached CLP 922,675 million,
a 9.7% expansion. Gross margin expanded 299 bps, from 43.3% to 46.3%, as a consequence of the effects described above. |
| · | MSD&A expenses were up 6.9%, and as
percentage of Net sales, grew 153 bps, from 36.3% to 37.8%. The latter was mostly caused by higher distribution costs, mostly as a consequence
of higher oil prices and higher marketing activities to enhance brand equity. The performance by segment was as follows: In the Chile
Operating segment, MSD&A expenses expanded 16.1%, and as a percentage of Net sales increased 232 bps. In the International Business
Operating segment MSD&A expenses in CLP were down 4.1%, and as a percentage of Net sales decreased 49 bps. In the Wine Operating segment,
MSD&A expenses decreased 1.1%, and as a percentage of Net sales grew 441 bps associated with a lower business scale. |
| · | EBIT reached CLP 168,245 million, an expansion
of 22.1%, mainly due to higher revenues, boosted by higher average prices as a consequence of revenue management initiatives, and lower
cost pressures. |
| · | EBITDA reached CLP 268,846 million, a 14.3%
increase, driven by 26.7% expansion in the Chile Operating segment and 17.4% jump in the International Business Operating segment expanded.
The latter was partially offset by the Wine Operating segment which decreased EBITDA by 43.0%, as a consequence of a challenging year
for exports. In addition, EBITDA margin improved 139 bps, from 12.1% to 13.5%. |
| · | Non-operating result totalized a loss of
CLP 95,197 million versus a negative result of CLP 55,985 million last year. The higher loss was explained by: (i) a higher loss by CLP
17,997 million in Foreign currency exchange differences, mostly concentrated in Argentina, (ii) a lower result in Equity and income of
JVs and associated by CLP 13,811 million, mainly associated with the route-to-market integration of our JV in Argentina with Aguas Danone
into our operation, (iii) a higher loss in Other gains/(losses) by CLP 11,117 million, mostly explained by a lower result in derivative
contracts7, and (iv) a higher loss in Results as per adjustment units by CLP 5,451 million. These effects were partially compensated
by a higher result by CLP 9,163 million in Net financial expenses mainly due to higher Interest income associated with more favorable
interest rates. |
| · | Income taxes reached a loss of CLP 2,426
million versus a gain of CLP 641 million last year, attributable to a worse result on Tax effect of permanent differences, net8. |
| · | Net income reached a gain of CLP 63,923
million, a 10.4% decrease, explained by the reasons described above. |
PRESS RELEASE | |
| | |
| HIGHLIGHTS
OPERATING SEGMENTS THIRD QUARTER |
CHILE OPERATING
SEGMENT
In the Chile Operating segment, our top line
expanded 5.1%, explained by 4.7% decrease in volumes being more than offset by a 10.2% growth in average prices. The higher average prices
were explained by revenue management initiatives. Lower volumes were explained by a challenging consumption environment, although in line
with the industry as market shares remained stable. Gross profit expanded 17.4%, and Gross margin improved from 40.1% to 44.8%, due to
top line performance and lower cost pressures. MSD&A expenses were 12.3% higher, and as percentage of Net sales grew 237 bps from
34.6% to 37.0%, mostly due to higher marketing activities. In all, EBITDA reached CLP 52,618 million, growing 38.7%, and EBITDA margin
increased 320 bps from 10.0% to 13.2%.
In terms of innovation, in line with the fifth
pillar of “HerCCUles”, which aims focusing in core brands and high margin/volume innovations, we launched Royal Guard Golden
Lager, continue expanding the successful portfolio of Royal Guard.
Regarding sustainability initiatives and aligned
with our commitment to a circular economy, we continued moving forward in the construction of our unprecedented PET recycling plant, which
we named “CirCCUlar”. We expect this facility will be operating during 2024, with a capacity to process 18,000 tons of PET
yearly, enabling us to recycle around 870 million bottles per year. “CirCCUlar” will have cutting-edge technology and certified
renewable energy, aligned to our sustainability goals and strategy.
INTERNATIONAL
BUSINESS OPERATING SEGMENT
In the International Business Operating segment,
which includes Argentina, Bolivia, Paraguay and Uruguay, Net sales recorded a 2.4% contraction in CLP, as a result of 4.3% drop in volumes,
partially offset by 2.0% increase in average prices in CLP. Volumes were negatively impacted by a weaker consumption environment in Argentina,
partially compensated by volume expansion in all the other geographies. Gross profit expanded 1.1%, and Gross margin grew from 48.5% to
50.2%. MSD&A expenses decreased 6.0%, and as a percentage of Net sales improved 167 bps due to efficiencies, compensating higher inflation
and other cost pressures. Altogether, EBITDA reached CLP 25,785 million, a 30.2% expansion from last year.
In Bolivia, we strengthened our beer portfolio
by successfully launching the global beer brand Amstel. In Colombia, we renewed the image of our mainstream local beer brand Andina.
WINE
OPERATING SEGMENT
The Wine Operating segment continued facing a
tough business environment during the quarter. Revenues were down 14.7%, mostly explained by a 17.3% contraction in volumes, while average
prices increased 3.1%, due to revenue management in the domestic markets, partially compensated with negative mix effects. The lower volume
was explained by both a 14.4% fall in exports from Chile (29.9% contraction of the Chilean industry4), and a 14.8% drop in
the Chile domestic market. Gross profit dropped 8.1% but Gross margin improved 296 bps from 38.0% to 40.9%, due to higher average prices
and a decrease in COGS per liter, due to a more favorable cost of wine. MSD&A expenses were flat versus last year, and as a percentage
of Net sales increased 429 bps associated with a lower business scale. In all, EBITDA reached CLP 11,606 million, a 21.2% contraction.
PRESS RELEASE | |
| | |
|
ADDITIONAL INFORMATION AND EXHIBITS |
ABOUT CCU
CCU is a multi-category
beverage company with operations in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. CCU is one of the largest players in each
one of the beverage categories in which it participates in Chile, including beer, soft drinks, mineral and bottled water, nectar, wine
and pisco, among others. CCU is the second-largest brewer in Argentina and also participates in the cider, spirits and wine industries.
In Uruguay and Paraguay, the Company is present in the beer, mineral and bottled water, soft drinks, wine and nectar categories. In Bolivia,
CCU participates in the beer, water, soft drinks and malt beverage categories. In Colombia, the Company participates in the beer and in
the malt industry. The Company’s principal licensing, distribution and / or joint venture agreements include Heineken Brouwerijen
B.V., PepsiCo Inc., Seven-up International, Schweppes Holdings Limited, Société des Produits Nestlé S.A., Pernod
Ricard Chile S.A., Promarca S.A. (Watt’s), Red Bull Panamá S.A., Stokely Van Camp Inc., and Coors Brewing Company.
CORPORATE HEADQUARTERS
Vitacura 2670,
26th floor
Santiago
Chile
STOCK TICKER
Bolsa de Comercio
de Santiago: CCU
NYSE: CCU
CAUTIONARY STATEMENT
Statements made
in this press release that relate to CCU’s future performance or financial results are forward-looking statements, which involve
known and unknown risks and uncertainties that could cause actual performance or results to materially differ. We undertake no obligation
to update any of these statements. Persons reading this press release are cautioned not to place undue reliance on these forward-looking
statements. These statements should be taken in conjunction with the additional information about risk and uncertainties set forth in
CCU’s annual report on Form 20-F filed with the US Securities and Exchange Commission and in the annual report submitted to the
CMF (Chilean Market Regulator) and available on our web page.
GLOSSARY
Operating segments
The Operating segments are defined with respect to
its revenues in the geographic areas of commercial activity:
| · | Chile: This segment commercializes Beer,
Non Alcoholic Beverages, Spirits and Cider in the Chilean market, and also includes the results of Transportes CCU Limitada, Comercial
CCU S.A., Creccu S.A. and Fábrica de Envases Plásticos S.A. |
| · | International Business: This segment commercializes
Beer, Cider, Wine, Non-Alcoholic Beverages and Spirits in Argentina, Uruguay, Paraguay and Bolivia. |
| · | Wine: This segment commercializes Wine
and Sparkling Wine, mainly in the export market reaching over 80 countries, as well as the Chilean and Argentine domestic market. |
| · | Other/Eliminations: Considers the non-allocated
corporate overhead expenses and eliminations of transactions and volumes between segments. |
PRESS RELEASE | |
| | |
ARS
Argentine peso.
CLP
Chilean peso.
Cost of sales
Formerly referred to as Cost of Goods Sold (COGS),
includes direct costs and manufacturing costs.
Earnings per Share (EPS)
Net profit divided by the weighted average number of
shares during the year.
EBIT
Earnings Before Interest and Taxes. For management
purposes, EBIT is defined as Net income before other gains (losses), net financial expenses, equity and income of joint ventures, foreign
currency exchange differences, results as per adjustment units and income taxes. EBIT is equivalent to Adjusted Operating Result used
in the 20-F Form.
EBITDA
EBITDA represents EBIT plus depreciation and amortization.
EBITDA is not an accounting measure under IFRS. When analyzing the operating performance, investors should use EBITDA in addition to,
not as an alternative for Net income, as this item is defined by IFRS. Investors should also note that CCU’s presentation of EBITDA
may not be comparable to similarly titled indicators used by other companies. EBITDA is equivalent to ORBDA (Adjusted Operating Result
Before Depreciation and Amortization), used in the 20-F Form.
Exceptional Items (EI)
Formerly referred to as Non-recurring items (NRI),
Exceptional Items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are
presented separately because they are important for the understanding of the underlying sustainable performance of the Company due to
their size or nature.
Gross profit
Gross profit represents the difference between
Net sales and Cost of sales.
Gross margin
Gross profit as a percentage of Net sales.
Liquidity ratio
Total current assets / Total current liabilities
Marketing, Sales, Distribution and Administrative
expenses (MSD&A)
MSD&A includes marketing, sales, distribution
and administrative expenses.
Net Financial Debt
Total Financial Debt minus Cash & Cash Equivalents.
Net Financial Debt / EBITDA
The ratio is based on a twelve month rolling
calculation for EBITDA.
Net income
Net income attributable to the equity holders
of the parent.
UF
The UF is a monetary unit indexed to the Consumer
Price Index variation in Chile.
USD
United States Dollar.
PRESS RELEASE | |
| | |
| Exhibit 1: Consolidated Income Statement (Third Quarter 2023) |
| Third Quarter |
2023 |
2022 |
Total
Change % |
| |
(CLP million) |
| Net sales |
686,677 |
684,106 |
0.4 |
| Cost of sales |
(368,362) |
(391,714) |
(6.0) |
| % of Net sales |
53.6 |
57.3 |
(362) bps |
| Gross profit |
318,315 |
292,391 |
8.9 |
| % of Net sales |
46.4 |
42.7 |
362 bps |
| MSD&A |
(267,407) |
(259,956) |
2.9 |
| % of Net sales |
38.9 |
38.0 |
94 bps |
| Other operating income/(expenses) |
164 |
1,096 |
(85.0) |
| EBIT |
51,072 |
33,531 |
52.3 |
| EBIT margin % |
7.4 |
4.9 |
254 bps |
| Net financial expenses |
(10,815) |
(18,695) |
(42.2) |
| Equity and income of JVs and associated |
(11,709) |
(3,495) |
235.0 |
| Foreign currency exchange differences |
(24,485) |
(8,096) |
202.4 |
| Results as per adjustment units |
(693) |
4,641 |
(114.9) |
| Other gains/(losses) |
5,063 |
1,329 |
281.0 |
| Non-operating result |
(42,638) |
(24,316) |
75.3 |
| Income/(loss) before taxes |
8,434 |
9,215 |
(8.5) |
| Income taxes |
4,227 |
10,185 |
(58.5) |
| Net income for the period |
12,660 |
19,400 |
(34.7) |
| |
|
|
|
| Net income attributable to: |
|
|
|
| The equity holders of the parent |
9,499 |
17,226 |
(44.9) |
| Non-controlling interest |
(3,161) |
(2,174) |
45.4 |
| |
|
|
|
| EBITDA |
86,344 |
67,607 |
27.7 |
| EBITDA margin % |
12.6 |
9.9 |
269 bps |
| |
|
|
|
| OTHER INFORMATION |
|
|
|
| Number of shares |
369,502,872 |
369,502,872 |
|
| Shares per ADR |
2 |
2 |
|
| |
|
|
|
| Earnings per share (CLP) |
25.7 |
46.6 |
(44.9) |
| Earnings per ADR (CLP) |
51.4 |
93.2 |
(44.9) |
| |
|
|
|
| Depreciation |
35,272 |
34,075 |
3.5 |
| Capital Expenditures |
46,147 |
69,647 |
(33.7) |
PRESS RELEASE | |
| | |
| Exhibit 2: Consolidated Income Statement (Nine months ended on September 30, 2023) |
| YTD as of September |
2023 |
2022 |
Total Change % |
| |
(CLP million) |
| Net sales |
1,992,949 |
1,943,073 |
2.6 |
| Cost of sales |
(1,070,274) |
(1,101,649) |
(2.8) |
| % of Net sales |
53.7 |
56.7 |
(299) bps |
| Gross profit |
922,675 |
841,424 |
9.7 |
| % of Net sales |
46.3 |
43.3 |
299 bps |
| MSD&A |
(754,300) |
(705,604) |
6.9 |
| % of Net sales |
37.8 |
36.3 |
153 bps |
| Other operating income/(expenses) |
(130) |
1,935 |
(106.7) |
| EBIT |
168,245 |
137,755 |
22.1 |
| EBIT margin % |
8.4 |
7.1 |
135 bps |
| Net financial expenses |
(26,415) |
(35,578) |
(25.8) |
| Equity and income of JVs and associated |
(21,708) |
(7,897) |
174.9 |
| Foreign currency exchange differences |
(35,929) |
(17,932) |
100.4 |
| Results as per adjustment units |
(5,882) |
(431) |
>500 |
| Other gains/(losses) |
(5,263) |
5,854 |
(189.9) |
| Non-operating result |
(95,197) |
(55,985) |
70.0 |
| Income/(loss) before taxes |
73,048 |
81,771 |
(10.7) |
| Income taxes |
(2,426) |
641 |
(478.5) |
| Net income for the period |
70,623 |
82,411 |
(14.3) |
| |
|
|
|
| Net income attributable to: |
|
|
|
| The equity holders of the parent |
63,923 |
71,315 |
(10.4) |
| Non-controlling interest |
(6,699) |
(11,096) |
(39.6) |
| |
|
|
|
| EBITDA |
268,846 |
235,203 |
14.3 |
| EBITDA margin % |
13.5 |
12.1 |
139 bps |
| |
|
|
|
| OTHER INFORMATION |
|
|
|
| Number of shares |
369,502,872 |
369,502,872 |
|
| Shares per ADR |
2 |
2 |
|
| |
|
|
|
| Earnings per share (CLP) |
173.0 |
193.0 |
10.4 |
| Earnings per ADR (CLP) |
346.0 |
386.0 |
10.4 |
| |
|
|
|
| Depreciation |
100,601 |
97,448 |
3.2 |
| Capital Expenditures |
99,644 |
148,451 |
(32.9) |
PRESS RELEASE | |
| | |
| Exhibit 3: Segment Information (Third Quarter 2023) |
| |
1. Chile Operating segment |
|
2. International Business Operating segment |
|
3. Wine Operating segment |
| Third Quarter |
|
|
| (In ThHL or CLP million unless stated otherwise) |
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
| |
|
|
| Volumes |
5,039 |
5,285 |
(4.7) |
|
2,187 |
2,286 |
(4.3) |
|
361 |
437 |
(17.3) |
| Net sales |
398,550 |
379,319 |
5.1 |
|
227,379 |
232,995 |
(2.4) |
|
72,380 |
84,893 |
(14.7) |
| Net sales (CLP/HL) |
79,101 |
71,767 |
10.2 |
|
103,957 |
101,925 |
2.0 |
|
200,317 |
194,377 |
3.1 |
| Cost of sales |
(219,977) |
(227,167) |
(3.2) |
|
(113,270) |
(120,091) |
(5.7) |
|
(42,762) |
(52,666) |
(18.8) |
| % of Net sales |
55.2 |
59.9 |
(469) bps |
|
49.8 |
51.5 |
(173) bps |
|
59.1 |
62.0 |
(296) bps |
| Gross profit |
178,573 |
152,152 |
17.4 |
|
114,109 |
112,904 |
1.1 |
|
29,618 |
32,227 |
(8.1) |
| % of Net sales |
44.8 |
40.1 |
469 bps |
|
50.2 |
48.5 |
173 bps |
|
40.9 |
38.0 |
296 bps |
| MSD&A |
(147,453) |
(131,347) |
12.3 |
|
(99,375) |
(105,711) |
(6.0) |
|
(21,036) |
(21,031) |
0.0 |
| % of Net sales |
37.0 |
34.6 |
237 bps |
|
43.7 |
45.4 |
(167) bps |
|
29.1 |
24.8 |
429 bps |
| Other operating income/(expenses) |
271 |
(43) |
>500 |
|
(101) |
529 |
(119.2) |
|
(153) |
227 |
(167.7) |
| EBIT |
31,391 |
20,762 |
51.2 |
|
14,633 |
7,722 |
89.5 |
|
8,428 |
11,422 |
(26.2) |
| EBIT margin |
7.9 |
5.5 |
240 bps |
|
6.4 |
3.3 |
312 bps |
|
11.6 |
13.5 |
(181) bps |
| EBITDA |
52,618 |
37,947 |
38.7 |
|
25,785 |
19,800 |
30.2 |
|
11,606 |
14,733 |
(21.2) |
| EBITDA margin |
13.2 |
10.0 |
320 bps |
|
11.3 |
8.5 |
284 bps |
|
16.0 |
17.4 |
(132) bps |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
4. Other/eliminations |
|
Total |
|
|
|
|
| Third Quarter |
|
|
|
|
|
| (In ThHL or CLP million unless stated otherwise) |
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
|
|
|
|
| |
|
|
|
|
|
| Volumes |
(28) |
(44) |
(37.5) |
|
7,559 |
7,964 |
(5.1) |
|
|
|
|
| Net sales |
(11,631) |
(13,101) |
(11.2) |
|
686,677 |
684,106 |
0.4 |
|
|
|
|
| Net sales (CLP/HL) |
|
|
|
|
90,838 |
85,902 |
5.7 |
|
|
|
|
| Cost of sales |
7,646 |
8,209 |
(6.9) |
|
(368,362) |
(391,714) |
(6.0) |
|
|
|
|
| % of Net sales |
|
|
|
|
53.6 |
57.3 |
(362) bps |
|
|
|
|
| Gross profit |
(3,985) |
(4,892) |
(18.5) |
|
318,315 |
292,391 |
8.9 |
|
|
|
|
| % of Net sales |
|
|
|
|
46.4 |
42.7 |
362 bps |
|
|
|
|
| MSD&A |
456 |
(1,867) |
(124.5) |
|
(267,407) |
(259,956) |
2.9 |
|
|
|
|
| % of Net sales |
|
|
|
|
38.9 |
38.0 |
94 bps |
|
|
|
|
| Other operating income/(expenses) |
148 |
384 |
(61.5) |
|
164 |
1,096 |
(85.0) |
|
|
|
|
| EBIT |
(3,380) |
(6,375) |
(47.0) |
|
51,072 |
33,531 |
52.3 |
|
|
|
|
| EBIT margin |
|
|
|
|
7.4 |
4.9 |
254 bps |
|
|
|
|
| EBITDA |
(3,666) |
(4,874) |
(24.8) |
|
86,344 |
67,607 |
27.7 |
|
|
|
|
| EBITDA margin |
|
|
|
|
12.6 |
9.9 |
269 bps |
|
|
|
|
PRESS RELEASE | |
| | |
| Exhibit 4: Segment Information (Nine months ended on September 30, 2023) |
| |
1. Chile Operating segment |
|
2. International Business Operating segment |
|
3. Wine Operating segment |
| YTD as of September |
|
|
| (In ThHL or CLP million unless stated otherwise) |
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
| |
|
|
| Volumes |
16,501 |
16,616 |
(0.7) |
|
6,360 |
6,544 |
(2.8) |
|
1,007 |
1,200 |
(16.1) |
| Net sales |
1,262,745 |
1,166,086 |
8.3 |
|
567,277 |
585,432 |
(3.1) |
|
189,396 |
224,516 |
(15.6) |
| Net sales (CLP/HL) |
76,523 |
70,180 |
9.0 |
|
89,198 |
89,467 |
(0.3) |
|
188,155 |
187,096 |
0.6 |
| Cost of sales |
(686,965) |
(685,326) |
0.2 |
|
(278,597) |
(298,849) |
(6.8) |
|
(120,539) |
(139,410) |
(13.5) |
| % of Net sales |
54.4 |
58.8 |
(437) bps |
|
49.1 |
51.0 |
(194) bps |
|
63.6 |
62.1 |
155 bps |
| Gross profit |
575,780 |
480,761 |
19.8 |
|
288,680 |
286,583 |
0.7 |
|
68,857 |
85,105 |
(19.1) |
| % of Net sales |
45.6 |
41.2 |
437 bps |
|
50.9 |
49.0 |
194 bps |
|
36.4 |
37.9 |
(155) bps |
| MSD&A |
(437,059) |
(376,575) |
16.1 |
|
(255,568) |
(266,615) |
(4.1) |
|
(56,809) |
(57,431) |
(1.1) |
| % of Net sales |
34.6 |
32.3 |
232 bps |
|
45.1 |
45.5 |
(49) bps |
|
30.0 |
25.6 |
441 bps |
| Other operating income/(expenses) |
(590) |
(136) |
332.7 |
|
(19) |
1,122 |
(101.7) |
|
164 |
479 |
(65.8) |
| EBIT |
138,131 |
104,050 |
32.8 |
|
33,093 |
21,090 |
56.9 |
|
12,211 |
28,153 |
(56.6) |
| EBIT margin |
10.9 |
8.9 |
202 bps |
|
5.8 |
3.6 |
223 bps |
|
6.4 |
12.5 |
(609) bps |
| EBITDA |
196,485 |
155,103 |
26.7 |
|
63,468 |
54,068 |
17.4 |
|
21,645 |
37,991 |
(43.0) |
| EBITDA margin |
15.6 |
13.3 |
226 bps |
|
11.2 |
9.2 |
195 bps |
|
11.4 |
16.9 |
(549) bps |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
4. Other/eliminations |
|
Total |
|
|
|
|
| YTD as of September |
|
|
|
|
|
| (In ThHL or CLP million unless stated otherwise) |
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
|
|
|
|
| |
|
|
|
|
|
| Volumes |
(63) |
(136) |
(53.4) |
|
23,805 |
24,223 |
(1.7) |
|
|
|
|
| Net sales |
(26,469) |
(32,961) |
(19.7) |
|
1,992,949 |
1,943,073 |
2.6 |
|
|
|
|
| Net sales (CLP/HL) |
|
|
|
|
83,721 |
80,214 |
4.4 |
|
|
|
|
| Cost of sales |
15,827 |
21,936 |
(27.8) |
|
(1,070,274) |
(1,101,649) |
(2.8) |
|
|
|
|
| % of Net sales |
|
|
|
|
53.7 |
56.7 |
(299) bps |
|
|
|
|
| Gross profit |
(10,641) |
(11,025) |
(3.5) |
|
922,675 |
841,424 |
9.7 |
|
|
|
|
| % of Net sales |
|
|
|
|
46.3 |
43.3 |
299 bps |
|
|
|
|
| MSD&A |
(4,865) |
(4,983) |
(2.4) |
|
(754,300) |
(705,604) |
6.9 |
|
|
|
|
| % of Net sales |
|
|
|
|
37.8 |
36.3 |
153 bps |
|
|
|
|
| Other operating income/(expenses) |
315 |
470 |
(32.9) |
|
(130) |
1,935 |
(106.7) |
|
|
|
|
| EBIT |
(15,191) |
(15,537) |
(2.2) |
|
168,245 |
137,755 |
22.1 |
|
|
|
|
| EBIT margin |
|
|
|
|
8.4 |
7.1 |
135 bps |
|
|
|
|
| EBITDA |
(12,752) |
(11,959) |
6.6 |
|
268,846 |
235,203 |
14.3 |
|
|
|
|
| EBITDA margin |
|
|
|
|
13.5 |
12.1 |
139 bps |
|
|
|
|
PRESS RELEASE | |
| | |
| Exhibit 5: Balance Sheet |
| |
September 30 |
December 31 |
| |
2023 |
2022 |
| |
(CLP million) |
| ASSETS |
|
|
| Cash and cash equivalents |
626,526 |
597,082 |
| Other current assets |
1,002,884 |
1,064,867 |
| Total current assets |
1,629,410 |
1,661,948 |
| |
|
|
| PP&E (net) |
1,381,696 |
1,356,846 |
| Other non current assets |
600,647 |
576,284 |
| Total non current assets |
1,982,344 |
1,933,131 |
| Total assets |
3,611,753 |
3,595,079 |
| |
|
|
| LIABILITIES |
|
|
| Short term financial debt |
128,352 |
195,000 |
| Other liabilities |
559,076 |
602,153 |
| Total current liabilities |
687,428 |
797,152 |
| |
|
|
| Long term financial debt |
1,286,542 |
1,207,013 |
| Other liabilities |
174,071 |
154,944 |
| Total non current liabilities |
1,460,614 |
1,361,958 |
| Total Liabilities |
2,148,042 |
2,159,110 |
| |
|
|
| EQUITY |
|
|
| Paid-in capital |
562,693 |
562,693 |
| Other reserves |
(91,628) |
(90,712) |
| Retained earnings |
875,007 |
843,045 |
| Total equity attributable to equity holders of the parent |
1,346,072 |
1,315,026 |
| Non - controlling interest |
117,640 |
120,943 |
| Total equity |
1,463,712 |
1,435,969 |
| Total equity and liabilities |
3,611,753 |
3,595,079 |
| |
|
|
| OTHER FINANCIAL INFORMATION |
|
|
| |
|
|
| Total Financial Debt |
1,414,895 |
1,402,013 |
| |
|
|
| Net Financial Debt |
788,369 |
804,931 |
| |
|
|
| Liquidity ratio |
2.37 |
2.08 |
| Total Financial Debt / Capitalization |
0.49 |
0.49 |
| Net Financial Debt / EBITDA |
2.01 |
2.25 |
PRESS RELEASE | |
| | |
| Exhibit 6: Summary of the Statement of Cash Flow |
| |
3Q |
| |
2023 |
2022 |
| |
(CLP million) |
| Cash and cash equivalents at beginning of the period |
591,015 |
643,999 |
| Net cash inflows from operating activities |
58,608 |
(20,514) |
| Net cash (outflow) from investing activities |
(51,157) |
(71,868) |
| Net cash (outflow) flow from financing activities |
(19,060) |
77,267 |
| Net (decrease) increase in cash and cash equivalents |
(11,610) |
(15,114) |
| Effects of exchange rate changes on cash and cash equivalents |
47,120 |
6,599 |
| Increase (decrease) in cash and cash equivalents |
35,510 |
(8,515) |
| Cash and cash equivalents at end of the period |
626,526 |
635,484 |
| |
|
|
| |
As of September 30 of |
| |
2023 |
2022 |
| |
(CLP million) |
| Cash and cash equivalents at beginning of the year |
597,082 |
265,568 |
| Net cash inflows from operating activities |
205,681 |
(21,871) |
| Net cash (outflow) from investing activities |
(111,051) |
(175,168) |
| Net cash (outflow) flow from financing activities |
(58,930) |
515,545 |
| Net (decrease) increase in cash and cash equivalents |
35,700 |
318,505 |
| Effects of exchange rate changes on cash and cash equivalents |
(6,256) |
51,411 |
| Increase (decrease) in cash and cash equivalents |
29,444 |
369,916 |
| Cash and cash equivalents at end of the period |
626,526 |
635,484 |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Compañía Cervecerías Unidas S.A.
(United Breweries Company, Inc.)
|
|
| |
/s/ Felipe Dubernet |
| |
Chief Financial Officer |
|
|
Date: November 8, 2023
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