CCU Announces Consolidated Q4 2023 Results

TL;DR

**CCU just announced Q4 2023 results, filing a 6-K on Feb 28, 2024, for the period ending Dec 31, 2023.**

AI Summary

Compañía Cervecerías Unidas S.A. (CCU), also known as United Breweries Company, Inc., a foreign issuer from the Republic of Chile, announced its consolidated Fourth Quarter 2023 results on February 27, 2024. This 6-K filing, dated February 28, 2024, indicates the company's reporting of its financial performance for the period ending December 31, 2023. No specific financial figures were detailed in the provided excerpt of the filing.

Why It Matters

This filing signals CCU's compliance with SEC reporting requirements for foreign issuers, providing transparency on its financial health for investors. The announcement of Q4 results is crucial for stakeholders to assess the company's performance over the last quarter of 2023.

Risk Assessment

Risk Level: low — This 6-K filing is a standard announcement of quarterly results, not indicating any unusual or high-risk events.

Key Numbers

• N/A — Q4 2023 Consolidated Results (No specific financial figures were provided in this filing excerpt.)

Key Players & Entities

• COMPAÑÍA CERVECERÍAS UNIDAS S.A. (company) — Registrant
• UNITED BREWERIES COMPANY, INC. (company) — Translation of Registrant's name
• Republic of Chile (company) — Jurisdiction of incorporation
• February 27, 2024 (date) — Announcement date
• December 31, 2023 (date) — Period of report end date

FAQ

Filing Documents

• ccupr4q23_6k.htm (6-K) — 259KB
• ccupr4q236k_001.jpg (GRAPHIC) — 20KB
• ccupr4q236k_002.jpg (GRAPHIC) — 1KB
• 0001292814-24-000565.txt ( ) — 289KB

From the Filing

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 COMPAA CERVECERAS 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, 23 rd 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 FOURTH QUARTER 2023 RESULTS 1,2 Santiago, Chile, February 27, 2024 – CCU announced today its consolidated financial and operating results for the fourth quarter 2023, which ended December 31, 2023. Consolidated Volumes decreased 7.6%. Volume variation per Operating segment was as follows: o Chile (7.3)% o International Business (8.3)% o Wine (8.8)% Net sales were down 25.5% Gross profit decreased 25.6% EBITDA reached CLP 110,556 million, a 9.9% decline. EBITDA margin expanded 334 bps, from 16.0% to 19.3%. EBITDA variation per Operating segment was as follows: o Chile 20.9% o International Business (53.7)% o Wine (21.3)% Net income reached a gain of CLP 41,729 million a 10.9% contraction Earnings per share reached CLP 112.9 per share Key figures 4Q23 4Q22 D % / bps YTD23 YTD22 D % / bps (In ThHL or CLP million unless stated otherwise) Volumes 9,332 10,097 (7.6) 33,137 34,321 (3.4) Net sales 572,607 768,362 (25.5) 2,565,556 2,711,435 (5.4) Gross profit 264,269 355,086 (25.6) 1,186,944 1,196,510 (0.8) EBIT 85,038 93,676 (9.2) 253,283 231,431 9.4 EBITDA 110,556 122,725 (9.9) 379,402 357,929 6.0 EBITDA margin % 19.3 16.0 334 bps 14.8 13.2 159 bps Net income 41,729 46,853 (10.9) 105,653 118,168 (10.6) Earnings per share (CLP) 112.9 126.8 (10.9) 285.9 319.8 (10.6) 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 4Q23 compared to 4Q22, unless otherwise stated. Page 1 of 13 PRESS RELEASE COMMENTS FROM THE CEO During 2023 we posted a recovery in our operating results and profitability in spite of a volatile business environment, a particularly difficult year for the wine export business, and Argentina’s macroeconomic conditions. Our consolidated EBITDA grew 6.0%, and the EBITDA margin improved 159 bps, driven by our main Operating segment, Chile, which expanded EBITDA by 24.8%, more than offsetting a 37.4% drop in the Wine Operating segment and a 16.0% contraction in the International Business Operating segment, which includes Argentina. Net income reached CLP 105,653 million contracting 10.6%. The driver for the better operational results was the execution of our regional plan “HerCCUles” which encompasses six pillars: (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. I would like to briefly mention some of the highlights of the year for each pillar. In terms of pillar #1, consolidated volumes in 2023 were 3.4% below last year, mainly driven by a lower consumption in Argentina throughout the year, a tough scenario for Chilean wine exports, and a deceleration in volumes in Chile during the second semester. Nonetheless, we maintained relative scale by keeping/increasing market share in our main categories. As for pillar #2, we executed revenue management initiatives in all our geographies, especially noticeable in Chile, where average prices increased 7.9%, being key to recover margins, offsetting cost and expenses pressures and negative mix effects. Regarding pillar #3, we were able to deliver efficiencies during the year, as total expenses, including manufacturing costs and MSD&A expenses, as a percentage of Net sales were stable at 47.7% in 2022 and 2023. In terms of pillar #4, we recovered our cash generation mainly due to a reduction in working capital versus 2022, CAPEX optimization, and a higher EBITDA. Finally, in line with pillar #5 and #6, we reduced the number of SKU&r

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