CCU Reports Q1 2024 Financial Results

TL;DR

CCU dropped its Q1 2024 results on 5/9 - check the numbers.

AI Summary

Compañía Cervecerías Unidas S.A. (CCU) announced its consolidated financial and operating results for the first quarter ending March 31, 2024. The report was filed on May 9, 2024, and details the company's performance in the period.

Why It Matters

This filing provides investors with the latest financial performance data for CCU, crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: low — This is a routine financial results filing with no immediate indication of significant new risks.

Key Players & Entities

• Compañía Cervecerías Unidas S.A. (company) — Registrant
• CCU (company) — Abbreviation for Registrant
• UNITED BREWERIES CO INC (company) — English translation of Registrant's name
• Republic of Chile (jurisdiction) — Jurisdiction of incorporation
• May 8, 2024 (date) — Date of announcement
• March 31, 2024 (date) — End of reporting period
• May 9, 2024 (date) — Filing date

FAQ

Filing Documents

• ccupr1q24_6k.htm (6-K) — 161KB
• image_002.jpg (GRAPHIC) — 19KB
• image_003.jpg (GRAPHIC) — 1KB
• 0001292814-24-001942.txt ( ) — 190KB

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 Santiago, Chile, May 8, 2024 – CCU announced today its consolidated financial and operating results [1],[2] for the first quarter 2024, which ended March 31, 2024. Consolidated Volumes decreased 4.4%. Volume performance per Operating segment was as follows: o Chile (0.9)% o International Business (14.7)% o Wine 2.7% Net sales were up 1.9% Gross profit decreased 0.8% EBITDA reached CLP 124,163 million, a 8.3% drop. EBITDA performance per Operating segment was as follows: o Chile (3.0)% o International Business (27.1)% o Wine 90.7% Net income reached a gain of CLP 52,203 million, a 10.6% decrease Earnings per share reached CLP 141.3 per share Key figures 1Q24 1Q23 D % / bps (In ThHL or CLP million unless stated otherwise) Volumes 8,952 9,362 (4.4) Net sales 746,024 732,031 1.9 Gross profit 352,127 354,945 (0.8) EBIT 88,914 104,222 (14.7) EBITDA 124,163 135,377 (8.3) EBITDA margin % 16.6 18.5 (185) bps Net income 52,203 58,368 (10.6) Earnings per share (CLP) 141.3 158.0 (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 1Q24 compared to 1Q23, unless otherwise stated. Page 1 of 10 PRESS RELEASE COMMENTS FROM THE CEO The results of the 1Q24 indicate that the business environment in the region will continue to be challenging and volatile. In addition to the devaluation of the currency in Argentina, we faced a low-twenties beer industry contraction in that country. In Chile, the CLP devaluated 16.6% [3] versus last year, negatively impacting our cost base. In this context, we continued with our six-pillar regional plan “HerCCUles”, taking further actions in terms of revenue management efforts and costs and expenses control initiatives to continue on the recovery path of our financial results and profitability. These efforts should be reflected in the following quarters during the year, helping us to gradually compensate cost pressures. It is worth noticing that the Wine Operating segment posted a turning point in volumes, especially in exports, and financial results. During 1Q24, our revenues expanded 1.9% in CLP, driven by 6.6% higher average prices in CLP, while volumes dropped 4.4%. Average prices were boosted by revenue management initiatives in all operating segments and a weaker CLP against the USD impacting favorably export revenues. Lower volumes were largely caused by a weaker consumption in Argentina. Gross profit was down 0.8%, and as percentage of Net sales, deteriorated 129 bps, from 48.5% to 47.2%, due to higher cost pressures, mainly coming from the devaluation mentioned above, increasing our USD-denominated costs, and higher sugar prices, being partially offset by lower prices in aluminum and PET. MSD&A expenses expanded 5.1%, and as a percentage of Net sales deteriorated 107 bps. In all, EBITDA reached CLP 124,163 million, an 8.3% decrease, and EBITDA margin contracted 185 bps, from 18.5% to 16.6%. Regarding Net income, we totalized a gain of CLP 52,203 million, a 10.6% drop, in line with the lower operating results. In the Chile Operating segment, top line expanded 2.9% driven by 3.8% growth in average prices, while volumes dropped 0.9%, with stable market shares. Average prices were higher due to revenue management efforts in all our categories, partially offset by negative mix effects in the portfolio. In spite of higher cost pressures, due to the devaluation of the CLP, we were able to sustain Gross margin which slightly decreased from 47.5% to 47.3%. MSD&A expenses grew 7.5%, and as a percentage of Net sales deteriorated 137 bps, mainly explained by higher marketing expenses due to phasing, higher depreciation and larger USD-linked expen

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