CCU Reports Q2 2024 Financial Results

TL;DR

CCU dropped its Q2 2024 results on 8/7, check the 6-K for deets.

AI Summary

Compañía Cervecerías Unidas S.A. (CCU) announced its consolidated financial and operating results for the second quarter ending June 30, 2024. The report was filed on August 7, 2024, as a Form 6-K with the SEC.

Why It Matters

This filing provides investors with key financial and operational data for CCU, allowing them to assess the company's performance and make informed investment decisions.

Risk Assessment

Risk Level: low — This is a routine financial results filing from a foreign issuer, not indicating any unusual risks.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the period for which financial results are reported.)
• 20240807 — Filing Date (The date the report was officially submitted to the SEC.)

Key Players & Entities

• Compañía Cervecerías Unidas S.A. (company) — Registrant
• CCU (company) — Abbreviation for Registrant
• UNITED BREWERIES CO INC (company) — Filer Name
• August 7, 2024 (date) — Filing Date
• June 30, 2024 (date) — Reporting Period End Date

FAQ

Filing Documents

• ccupr2q24_6k.htm (6-K) — 265KB
• ccupr2q246k_001.jpg (GRAPHIC) — 26KB
• ccupr2q246k_002.jpg (GRAPHIC) — 1KB
• 0001292814-24-003021.txt ( ) — 304KB

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, August 7, 2024 – CCU announced today its consolidated financial and operating results 1,2 for the second quarter 2024, which ended June 30, 2024. Consolidated Volumes decreased 12.7%. Volume performance per Operating segment was as follows: o Chile (8.4)% o International Business (27.2)% o Wine 0.2% Net sales were down 8.6% Gross profit decreased 15.8% EBITDA reached CLP 38,722 million 3 . Excluding the non-recurring gain from the sale of a portion of land in Chile, EBITDA totalized CLP 10,053 million, a 78.7% decrease. Net income reached a gain of CLP 5,040 million 3 . Excluding the non-recurring gain from the sale of a portion of land in Chile, Net income totalized a loss of CLP 15,888 million, versus a loss of CLP 3,943 million last year. Earnings per share reached CLP 13.6 per share. Key figures 2Q24 2Q23 D % / bps YTD24 YTD23 D % / bps (In ThHL or CLP million unless stated otherwise) Volumes 6,010 6,883 (12.7) 14,962 16,245 (7.9) Net sales 524,641 574,242 (8.6) 1,270,665 1,306,272 (2.7) Gross profit 210,113 249,415 (15.8) 562,240 604,361 (7.0) EBIT 2,444 12,952 (81.1) 91,358 117,174 (22.0) EBITDA 38,722 47,126 (17.8) 162,885 182,503 (10.7) EBITDA margin % 7.4 8.2 (83) bps 12.8 14.0 (115) bps Net income 5,040 (3,943) (227.8) 57,243 54,424 5.2 Earnings per share (CLP) 13.6 (10.7) (227.8) 154.9 147.3 5.2 Excluding the non-recurring effect of the sale of a portion of land in Chile (3) EBIT (26,225) 12,952 (302.5) 62,689 117,174 (46.5) EBITDA 10,053 47,126 (78.7) 134,216 182,503 (26.5) Net income (15,888) (3,943) 302.9 36,315 54,424 (33.3) 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 2Q24 compared to 2Q23, unless otherwise stated. 3 Results of 2Q24 include a non-recurring gain from the sale of a portion of land in Chile, totalizing a gain before taxes of CLP 28,669 million, and a gain after taxes of CLP 20,928 million. At the Operating segments level, this non-recurring effect was accounted in Others/eliminations. Page 1 of 13 2Q24 PRESS RELEASE COMMENTS FROM THE CEO In the second quarter of 2024 (2Q24) CCU’s financial results were much weaker than last year, as they were heavily impacted by two effects; a particularly difficult context for demand in Chile and Argentina, and the depreciation of our main local currencies. In Chile, the industries of our core categories decreased, largely explained by adverse weather conditions, with unusual low temperatures and record rain-fall during the quarter. In Argentina, we faced a sharp contraction in the economy and in the beer industry, associated with a challenging context for consumption. It is important to mention that we maintained overall market share in both countries. In terms of our main local currencies, the CLP and ARS depreciated 16.8% 4 and 255.1% 5 against the USD, respectively, increasing our USD-denominated costs, impacting our operating results. In this scenario, under our regional plan “HerCCUles”, further actions in terms of revenue management and costs and expenses control are currently in place. These actions, in a more normalized context for volume growth, should help us to return to the profitability path. During 2Q24, our revenues contracted 8.6%, fully explained by 12.7% volumes drop, partially compensated by 4.6% higher average prices in CLP. Lower volumes were largely caused by a weaker demand in Chile and Argentina. Average prices were higher due to revenue management initiatives in all operating segments. Gross profit was down 15.8%, and as percentage of Net sales, deteriorated 338 bps, from 43.4% to 40.0%, due to h

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View this 6-K filing on SEC EDGAR