United Breweries Co Inc Files 20-F for Fiscal Year Ended December 31, 2023

TL;DR

<b>United Breweries Co Inc has submitted its 20-F filing for the fiscal year ending December 31, 2023.</b>

AI Summary

UNITED BREWERIES CO INC (CCU) filed a Foreign Annual Report (20-F) with the SEC on April 30, 2024. United Breweries Co Inc filed its annual 20-F report for the fiscal year ending December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at Ahumada 131, Santiago, Chile. The filing is made under the Securities Exchange Act of 1934. The company's SIC code is 2082 for Malt Beverages.

Why It Matters

For investors and stakeholders tracking UNITED BREWERIES CO INC, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance and operations for the past fiscal year, crucial for investors assessing its current standing. As a 20-F filing, it offers insights into the company's compliance with US securities regulations, important for international companies listed or seeking to be listed in the US.

Risk Assessment

Risk Level: low — UNITED BREWERIES CO INC shows low risk based on this filing. The filing is a routine annual report and does not contain immediate negative news or significant financial distress indicators.

Analyst Insight

Review the full 20-F filing for detailed financial statements, risk factors, and management discussion to understand the company's performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-04-30 — Filing Date (Filed as of date)
• 2023-01-01 — Reporting Period Start (Fiscal year)
• 2022-12-31 — Prior Year End (Comparison period)

Key Players & Entities

• UNITED BREWERIES CO INC (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240430 (date) — Filed as of date
• 0000888746 (company) — Central Index Key
• 2082 (industry) — Standard Industrial Classification (Malt Beverages)
• Ahumada 131 (address) — Business address street
• Santiago (location) — Business address city
• 2125305000 (phone) — Business phone

FAQ

Industry Context

United Breweries Co Inc operates within the Malt Beverages industry, a segment of the broader food and beverage sector.

Regulatory Implications

As a foreign private issuer, the company files a Form 20-F annually, which is a comprehensive disclosure document required by the U.S. Securities and Exchange Commission (SEC).

What Investors Should Do

1. Analyze the detailed financial statements within the 20-F for revenue, profitability, and balance sheet health.
2. Identify any new or updated risk factors disclosed by the company that could impact future performance.
3. Review management's discussion and analysis (MD&A) for strategic priorities and operational highlights.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 20-F filing.
• 2024-04-30: Filing Date — Date the 20-F report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the fiscal year 2023, so a direct comparison to a prior filing's specific data points is not yet available from this extract.

Filing Documents

• ccuform20f_2023.htm (20-F) — 15436KB
• ex02-d.htm (EX-2.D) — 80KB
• ex08-1.htm (EX-8.1) — 7KB
• ex12-1.htm (EX-12.1) — 9KB
• ex12-2.htm (EX-12.2) — 9KB
• ex13-1.htm (EX-13.1) — 5KB
• ex13-2.htm (EX-13.2) — 5KB
• ex16-1.htm (EX-16.1) — 67KB
• ex97.htm (EX-97.0) — 15KB
• ccufs20236k_001.jpg (GRAPHIC) — 37KB
• ccufs20236k_002.jpg (GRAPHIC) — 3KB
• image_001.jpg (GRAPHIC) — 31KB
• image_002.jpg (GRAPHIC) — 3KB
• image_003.jpg (GRAPHIC) — 8KB
• image_004.jpg (GRAPHIC) — 3KB
• image_005.jpg (GRAPHIC) — 8KB
• 0001292814-24-001713.txt (&nbsp;) — 69194KB
• ccu-20231231.xsd (EX-101.SCH) — 323KB
• ccu-20231231_cal.xml (EX-101.CAL) — 149KB
• ccu-20231231_def.xml (EX-101.DEF) — 1243KB
• ccu-20231231_lab.xml (EX-101.LAB) — 1223KB
• ccu-20231231_pre.xml (EX-101.PRE) — 1446KB
• ccuform20f_2023_htm.xml (XML) — 21412KB

ITEM 18

ITEM 17 ITEM 18 If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES NO Table of Contents Introduction 1

Forward Looking Statements

Forward Looking Statements 1 PART I 3

: Identity of Directors, Senior Management and Advisers

ITEM 1: Identity of Directors, Senior Management and Advisers 3

: Offer Statistics and Expected Timetable

ITEM 2: Offer Statistics and Expected Timetable 3

: Key Information

ITEM 3: Key Information 3 A. Reserved 3 B. Capitalization and Indebtedness 3 C. Reasons for the Offer and Use of Proceeds 3 D. Risk Factors 4

: Information on the Company

ITEM 4: Information on the Company 15 A. History and Development of the Company 15 Capital Expenditures 24 B. Business Overview 25 1) Summary 25 2) Overview 26 3) The Beverage Market 28 4) Production and Marketing 30 5) Raw Materials and other Supplies 44 6) Sales, Transportation and Distribution 45 7) Seasonality 49 8) Geographical Markets 52 9) Competition 53 10) Government Regulation 55 C. Organizational Structure 60 D. Property, Plants and Equipment 61 E. Environmental Matters 64

: Unresolved Staff Comments

ITEM 4A: Unresolved Staff Comments 66

: Operating and Financial Review and Prospects

ITEM 5: Operating and Financial Review and Prospects 66 A. ADJUSTED OPERATING RESULT 66 B. Liquidity and Capital Resources 73 C. Research and Development 76 D. Trend Information 77 E. Critical Accounting Policies and Practices 79

: Directors, Senior Management and Employees

ITEM 6: Directors, Senior Management and Employees 80 A. Directors and Senior Management 80 B. Compensation 87 C. Board Practices 88 1) Directors' Committee 88 2) Audit Committee 91 D. Employees 92 E. Share Ownership 93 F. Disclosure of a registrant's action to recover erroneously awarded compensation 93

: Major Shareholders and Related Party Transactions

ITEM 7: Major Shareholders and Related Party Transactions 94 A. Major Shareholders 94 B. Related Party Transactions 95 C. Interests of Experts and Counsel 102

: Financial Information

ITEM 8: Financial Information 102 A. Consolidated Statements and Other Financial Information 102 B. Significant Changes 104

: The Offer and Listing

ITEM 9: The Offer and Listing 105 A. Offer and Listing Details 105 B. Plan of distribution 105 C. Markets 106 D. Selling Shareholders 106 E. Dilution 106 F. Expenses of the Issue 106

: Additional Information

ITEM 10: Additional Information 106 A. Share Capital 106 B. Memorandum and Articles of Association 107 C. Material Contracts 111 D. Exchange Controls 111 E. Taxation 114 F. Dividends and Paying Agents 120 G. Statement by Experts 121 H. Documents on Display 121 I. Subsidiary Information 121 J. Annual Report to Security Holders 121

: Quantitative and Qualitative Disclosures about Market Risk

ITEM 11: Quantitative and Qualitative Disclosures about Market Risk 121 A. Qualitative Information About Market Risk 121 B. Quantitative Information About Market Risk 124

: Description of Securities Other than Equity Securities

ITEM 12: Description of Securities Other than Equity Securities 127 PART II 128

: Defaults, Dividend Arrearages and Delinquencies

ITEM 13: Defaults, Dividend Arrearages and Delinquencies 128

: Material Modifications to the Rights of Security Holders and Use of Proceeds

ITEM 14: Material Modifications to the Rights of Security Holders and Use of Proceeds 128

: Controls and Procedures

ITEM 15: Controls and Procedures 128

: Audit Committee Financial Expert

ITEM 16A: Audit Committee Financial Expert 129

: Code of Ethics

ITEM 16B: Code of Ethics 129

: Principal Accountant Fees and Services

ITEM 16C: Principal Accountant Fees and Services 130

: Exemptions from the Listing Standards for Audit Committees

ITEM 16D: Exemptions from the Listing Standards for Audit Committees 130

: Purchases of Equity Securities by the Issuer and Affiliated Purchasers

ITEM 16E: Purchases of Equity Securities by the Issuer and Affiliated Purchasers 131

: Change in Registrant's Certifying Accountants

ITEM 16F: Change in Registrant's Certifying Accountants 131

: Corporate Governance

ITEM 16G: Corporate Governance 131

: Mine Safety Disclosure

ITEM 16H: Mine Safety Disclosure 134

: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

ITEM 16I: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 134

: Insider Trading Policies

ITEM 16J: Insider Trading Policies 135

: Cybersecurity

ITEM 16K: Cybersecurity 136 PART III 138

: Financial Statements

ITEM 17: Financial Statements 138

: Financial Statements

ITEM 18: Financial Statements 138

: Exhibits

ITEM 19: Exhibits 139 Introduction In this annual report on Form 20-F, all references to "we", "us", "Company" or "CCU" are to Compaa Cerveceras Unidas S.A., an open stock corporation ( sociedad annima abierta ) organized under the laws of the Republic of Chile, and its consolidated subsidiaries . Our fiscal year ends on December 31 st . The expression "last three years'' means the years ended December 31, 2021, 2022 and 2023. Unless otherwise specified, all references to "U.S. dollars" "dollars" "USD" or "US$" are to United States dollars, references to "Chilean pesos" "pesos" "Ch$" or "CLP" are to Chilean pesos and references to "Argentine pesos" and "ARS" are to Argentine pesos. We prepare our consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards"). See the notes to our consolidated financial statements included in pages F-1 through F-141 of this annual report. We use the metric system of weights and measures in calculating our operating and other data. The United States equivalent units of the most common metric units used by us are as shown below: 1 liter = 0.2642 gallons 1 gallon = 3.7854 liters 1 liter = 0.008522 US beer barrels 1 US beer barrel = 117.34 liters 1 liter = 0.1761 soft drink unit cases (8 oz cans) 1 soft drink unit case (8 oz cans) = 5.6775 liters 1 liter = 0.1174 beer unit cases (12 oz cans) 1 beer unit case (12 oz cans) = 8.5163 liters 1 hectoliter = 100 liters 1 liter = 0.01 hectoliters 1 US beer barrel = 31 gallons 1 gallon = 0.0323 US beer barrels 1 hectare = 2.4710 acres 1 acre = 0.4047 hectares 1 mile = 1.6093 kilometers 1 kilometer = 0.6214 miles

Forward Looking Statements

Forward Looking Statements This annual report contains "forward-looking Act", and Section 21E of the Securities and Exchange Act of 1934, which we refer to as the "Exchange Act". These statements relate to analyses and other information, which are based on forecasts of future results and estimates of amounts not yet determinable. They also relate to our future prospects, development and business strategies. These forward-looking statements are identified by the use of terms and phrases such as "anticipate"; "believes"; "could"; "expects"; "intends"; "may"; "plans"; "predicts"; "projects"; "will" and similar terms and phrases. We caution you that actual results could differ materially from those expected by us, depending on the outcome of certain factors, including, without limitation: local, regional, national and international economic conditions, including the risks of a global recession or a recession in one or more of our key markets, and the impact they may have on us and our customers and our assessment of that impact; the impact of the occurrence or resurgence of global or regional health events, such as the COVID-19 pandemic, and government measures aimed at limiting the spread of pathogens; financial risks, such as interest rate risk, foreign exchange rate risk, commodity risk, asset price risk, equity market risk, counterparty risk, sovereign risk, liquidity risk, inflation or deflation, including inability to achieve our optimal net debt level; continued geopolitical instability, which may result in, among other things, economic and political sanctions and currency exchange rate volatility, and which may have a substantial impact on the economies of one or more of our key markets; changes in government policies and currency controls; continued availability of financing and our ability to achieve our targeted coverage a

: Identity of Directors, Senior Management and Advisers

ITEM 1: Identity of Directors, Senior Management and Advisers Not applicable.

: Offer Statistics and Expected Timetable

ITEM 2: Offer Statistics and Expected Timetable Not applicable.

: Key Information

ITEM 3: Key Information A. Reserved B. Capitalization and Indebtedness Not applicable. C. Reasons for the Offer and Use of Proceeds Not applicable. 3 D. Risk Factors Our business, financial condition and results of operations could be materially and adversely affected if any of the risks described below occur. As a result, the market price of our common shares could decline, and you could lose all or part of your investment. This annual report also contains forward-looking statements that involve risks and uncertainties. See "Forward-Looking Statements." The risks below are not the only ones facing our Company. Additional risks not currently known to us or that we currently deem immaterial may also adversely affect us. The following risk factors have been grouped as follows: Risks relating to our Business Risks relating to Climate Change Risks relating to Chile Risks relating to Argentina Risks relating to our ADS's RISKS RELATING TO OUR BUSINESS Possible changes in tax laws in the countries where we operate could affect our business and, in particular, changes in corporate and excise taxes could affect our results and investments. Our businesses are subject to different taxes in the countries where we operate, including, among others, income taxes and specific taxes on alcoholic and non-alcoholic beverages. An increase in the rates or application of these taxes, or any other, could negatively affect our sales and profitability. On January 2024, the Chilean Executive branch sent to Congress the Tax Compliance Bill. The objectives of this proposed bill are to address tax evasion and avoidance. It is also expected that during 2024 a second bill will be presented to modify the income tax system. As of the date of this report, the details of this proposal are not available. Changes in the labor market in the countries in which we operate may affect profit margins in our business. In all the countries where we operate, we are exposed to cha

View Full Filing

View this 20-F filing on SEC EDGAR