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 2022 RESULTS1,2
Santiago, Chile, November 8, 2022 – CCU announced
today its consolidated financial and operating results for the third quarter 2022, which ended September 30, 2022.
| · | Consolidated Volumes decreased 2.8%. Volume variation
per Operating segment was as follows: |
| o | International Business (1.3)% |
| · | Gross profit decreased 0.1% |
| · | EBITDA reached CLP 67,607 million, a 33.4% decline.
EBITDA variation per Operating segment was as follows: |
| o | International Business 16.9% |
| · | Net income reached a gain of CLP 17,226 million a 59.1%
contraction |
| · | Earnings per share reached CLP 46.6 per share |
| |
|
|
|
|
|
|
|
| Key figures |
|
3Q22 |
3Q21 |
Total Change % |
YTD22 |
YTD21 |
Total Change % |
| (In ThHL or CLP million unless stated otherwise) |
|
| Volumes |
|
7,979 |
8,213 |
(2.8) |
24,223 |
24,014 |
0.9 |
| Net sales |
|
684,106 |
622,730 |
9.9 |
1,943,073 |
1,662,364 |
16.9 |
| Gross profit |
|
292,391 |
292,581 |
(0.1) |
841,424 |
802,378 |
4.9 |
| EBIT |
|
33,531 |
71,464 |
(53.1) |
137,755 |
205,882 |
(33.1) |
| EBITDA |
|
67,607 |
101,472 |
(33.4) |
235,203 |
289,595 |
(18.8) |
| Net income |
|
17,226 |
42,168 |
(59.1) |
71,315 |
125,520 |
(43.2) |
| Earnings per share (CLP) |
|
46.6 |
114.1 |
(59.1) |
193.0 |
339.7 |
(43.2) |
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 3Q22 compared to 3Q21, unless otherwise stated. For comparison purposes only, in certain sections we include volume variations
versus 3Q19 & 9M19, to consider the impacts of COVID-19 in 2020 (lockdowns) and 2021 (strong consumption recovery from extraordinary
liquidity).
PRESS RELEASE |  |
| | |
In 3Q22, we continued to face an adverse macroeconomic
scenario which negatively impacted our financial results, particularly in Chile, where we also have a challenging comparison base against
2021. In terms of financial results, EBITDA reached CLP 67,607 million contracting 33.4%, the latter fully explained by the contraction
in the Chile Operating segment, while the International Business and Wine Operating segments improved their financial results. EBITDA
margin decreased from 16.3% to 9.9%, indicating that our revenue management efforts and efficiencies have not been enough to offset three
main external effects: (i) the depreciation of our main local currencies against the USD, impacting our USD denominated costs, (ii) higher
raw and packaging materials costs, and (iii) costs and expenses pressures associated with an accelerating inflation in our main geographies.
In line with this, Net income totalized a gain of CLP 17,226 million, a 59.1% drop, caused by a lower operational result, and a greater
loss in Non-operating result, driven by higher Net financial expenses. In this difficult business environment, we would like to mention
that our long-term business fundamentals remain strong, based on: (i) a solid business scale, decreasing slightly our volumes by 2.8%,
however increasing it when compared with 2019 growing 16.4%, (ii) a stable/growing market share in our main categories, and (iii) a robust
brand portfolio, sustained on a constant improvement in our brand equity.
We are focused as a company on recovering our financial
results. To achieve this, we launched across all our business units a plan called “HerCCUles 2023”, aiming to recover profitability
especially in Chile, encompassing six pillars: (i) maintain business scale, (ii) revenue management efforts, (iii) enhance the CCU Transformation
program to deliver efficiency gains in costs and expenses, (iv) focalize and reduce CAPEX together with optimizing working capital, (v)
focus on core brands and high volume/margin innovations, and (vi) continue investing in our brand equity, as it is crucial to our long-term
business.
As mentioned above, the Chile Operating segment has been
the most affected by the adverse macroeconomic scenario and a weaker consumption environment. Our top line was flat, due to 4.8% growth
in average prices, explained by revenue management initiatives, partially offset by a negative mix effect in the portfolio, while volumes
declined 4.5% (19.3% growth vs. 3Q19). Gross profit contracted 16.8%, and Gross margin dropped from 48.3% to 40.1%, mostly caused by a
20.0%3 devaluation of the CLP against the USD, affecting our USD denominated costs,
and cost pressures from higher prices in raw and packaging materials. MSD&A expenses grew 8.3%, and as percentage of Net sales increased
261 bps, due to expenses pressures coming from higher inflation and oil prices. In all, EBITDA reached CLP 37,947 million, decreasing
51.1%, and EBITDA margin decreased from 20.5% to 10.0%.
In the International Business Operating segment, which
includes Argentina, Bolivia, Paraguay and Uruguay, Net sales recorded a 25.8% rise, as a result of an increase of 27.5% in average prices
in CLP, while volumes contracted 1.3% (12.1% growth vs. 3Q19). The better average prices were mostly explained by revenue management initiatives
in all the geographies. Gross profit expanded 28.9%, and Gross margin grew from 47.3% to 48.5%. MSD&A expenses as a percentage of
Net sales were flat due to efficiencies that compensated higher inflation and other cost pressures. Altogether, EBITDA reached CLP 19,800
million, a 16.9% expansion.
In the Wine Operating segment, revenues were up 19.8%,
mainly explained by a 19.1% growth in average prices, as volumes increased 0.6% (10.6% growth vs. 3Q19), the latter driven by exports
and the Argentina domestic market. The higher prices in CLP were mainly explained by a positive impact on export revenues from the depreciation
of the CLP versus the USD, and revenue management initiatives in our domestic markets, which permitted us to partially compensate higher
costs in packaging materials and inflationary pressures. Consequently, Gross profit expanded 17.3% and Gross margin decreased 83 bps from
38.8% to 38.0%. MSD&A expenses grew 24.1%, and as a percentage of Net sales increased 85 bps. In all, EBITDA reached CLP 14,733 million,
a 9.9% rise, while EBITDA margin decreased from 18.9% to 17.4%.
In Colombia, our JV to produce and distribute beer and
malt with Postobón, top line rose over 30% in CLP driven by both, volumes and average prices growing double-digits, the latter
due to the implementation of revenue management initiatives. Financial results were similar from last year due to strong cost pressures
and the devaluation of the Colombian peso against the USD. In Argentina, our water business with Danone showed strong top line growth,
led by volumes and prices, allowing a recovery in financial results.
The current adverse economic scenario continued to negatively
affect our results and profitability in 3Q22, especially in our largest Operating segment, Chile. Nonetheless, we remain optimistic for
the future as the key long-term fundamentals of the business (scale, market share and brand equity) remain strong. We are focused as a
company on recovering our financial results by executing “HerCCUles 2023” a six-pillar strategic plan, making profitability
recovery our priority.
3 The CLP currency variation against the USD considers 2022 average of period (aop)
compared to 2021 aop.
PRESS RELEASE | |
| | |
|
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS – THIRD QUARTER (Exhibit 1 & 2) |
| · | Net sales were up 9.9%, explained by 13.1% higher average
prices in CLP while volumes declined 2.8% (16.4% growth vs. 3Q19). In terms of Operating segments the higher average prices in CLP were
explained by: (i) a 4.8% growth in the Chile Operating segment, explained by revenue management initiatives, offset by a negative mix
effect in the portfolio, (ii) an expansion of 27.5% in the International Business Operating segment, due to revenue management initiatives
in all the geographies, and (iii) a 19.1% increase in the Wine Operating segment, mainly driven by the positive impact on export revenues
from the depreciation of the CLP versus the USD, and revenue management initiatives in our domestic markets. In terms of volumes, the
performance by Operating segment was as follows: (i) a 4.5% contraction (19.3% growth vs. 3Q19) in the Chile Operating segment associated
with a high comparison base and a weaker consumption environment, (ii) a 1.3% contraction (12.1% growth vs. 3Q19) in the International
Business Operating segment, and (iii) a 0.6% growth (10.6% growth vs. 3Q19) in the Wine Operating segment, driven by exports and the Argentina
domestic market. |
| · | Cost of sales was up 18.6%, explained by 22.1% increase
in Cost of sales per hectoliter. The Chile Operating segment reported a 21.4% growth in Cost of sales per hectoliter, driven by: (i) the
20.0%3 devaluation of the CLP against the USD, impacting negatively our USD denominated costs, (ii) higher costs in raw and
packaging materials, mainly PET, malt, and sugar, and (iii) inflationary pressures. In the International Business Operating segment, the
Cost of sales per hectoliter expanded 24.7% in CLP, mostly explained by a higher cost in raw materials, a higher inflation, and the negative
impact from the 49.2%4 devaluation of the ARS against the USD in our USD-linked costs.
In the Wine Operating segment, the Cost of sales per hectoliter grew 20.8%, due to higher costs in packaging materials, and inflationary
pressures. |
| · | Gross profit reached CLP 292,391 million, a 0.1% decrease,
while Gross margin dropped 424 bps, from 47.0% to 42.7%. |
| · | MSD&A expenses were up 15.7%, mostly caused by
higher distribution costs across all our Operating segments, due to greater oil prices, and an accelerating inflation, partially compensated
with efficiencies and expenses control initiatives from our CCU Transformation program. Consequently, as a percentage of Net sales, MSD&A
expenses increased 192 bps, from 36.1% to 38.0%. The performance by segment was as follows: In the Chile Operating segment, MSD&A
expenses expanded 8.3%, and as a percentage of Net sales increased 261 bps. In the International Business Operating segment MSD&A
expenses in CLP were up 26.2%, and as a percentage of Net sales remained flat. In the Wine Operating segment, MSD&A expenses grew
24.1%, and as a percentage of Net sales rose 85 bps. |
| · | EBIT reached CLP 33,531 million, down 53.1% fully explained
by the Chile Operating segment while the International Business and the Wine Operating segments improved their financial results. The
weaker EBIT was mainly due to the contraction in volumes, and sharp negative external effects coming from: (i) the depreciation of our
main local currencies against the USD, impacting negatively our USD denominated costs, partly compensated with wine export revenues, (ii)
costs and expenses pressures associated with an accelerating inflation in our main geographies, and higher oil prices, and (iii) higher
cost in raw and packaging materials. |
| · | EBITDA was down 33.4%, explained by a 51.1% drop in
the Chile Operating segment, while the Wine Operating segment rose 9.9%, and the International Business Operating segment went up 16.9%.
EBITDA margin contracted 641 bps, from 16.3% to 9.9%, explained by the same reasons that impacted EBIT. |
| · | Non-operating result totalized a loss of CLP 24,316
million, which compares with a negative result of CLP 3,855 million last year. The higher loss was explained by: (i) a lower result by
CLP 12,481 million in Net financial expenses, mainly due to a larger debt, (ii) a lower result in Other gains/(losses) by CLP 5,975 million,
mostly explained by derivative contracts5, (iii) a higher loss by CLP 3,612 million
in Foreign currency exchange differences, and (iv) a higher loss in Equity and income of JVs and associated by CLP 2,482 million. These
effects were partially compensated by a better outcome in Results as per adjustment units by CLP 4,089 million. |
| · | Income taxes reached a gain of CLP 10,185 million,
versus a loss of CLP 20,857 million last year. The lower taxes were explained by both, a lower taxable income and a better result on Tax
effect of permanent differences, net6. |
| · | Net income reached CLP 17,226 million, decreasing 59.1%
from a gain of CLP 42,168 million last year. |
4 The ARS currency variation against the USD considers 2022 end of period (eop) compared
to 2021 eop.
5 See Note 32 Other Gain/(Losses) of our Financial Statements as of September 2022
6 See Note 25 Income taxes of our Financial Statements as of September 2022
PRESS RELEASE | |
| | |
|
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS – NINE MONTHS (Exhibit 2 & 4) |
| · | Net sales were up 16.9%, largely explained by 15.9%
higher average prices in CLP, while volumes expanded 0.9% (16.2% growth vs. 9M19). The higher average prices in CLP were explained by:
(i) a 6.7% growth in the Chile Operating segment, due to the implementation of revenue management initiatives, partially compensated by
negative mix effects in the portfolio, (ii) an expansion of 41.3% in the International Business Operating segment, driven by revenue management
initiatives in all the geographies, and (iii) a 16.9% increase in the Wine Operating segment, mainly caused by the positive impact on
export revenues from the depreciation of the CLP versus the USD, and revenue management initiatives in our domestic markets. The expansion
in volumes was mostly triggered by a 2.1% growth (8.1% growth vs. 9M19) in the International Business Operating segment, while the Chile
Operating segment and the Wine Operating segment were flat versus last year (20.5% and 14.2% vs. 9M19, respectively). |
| · | Cost of sales was up 28.1%, mainly explained by a 27.0%
increase in Cost of sales per hectoliter. The Chile Operating segment reported a 26.0% growth in Cost of sales per hectoliter, driven
by: (i) higher costs in raw and packaging materials, mainly aluminum, PET, malt, and sugar, (ii) the 17.2%3 devaluation of
the CLP against the USD, impacting negatively our USD denominated costs, and (iii) inflationary pressures. In the International Business
Operating segment, the Cost of sales per hectoliter expanded 36.6% in CLP, mostly explained by a higher cost in raw and packaging materials,
a higher inflation, and the negative impact from the 49.2%4 devaluation of the ARS against the USD in our USD-linked costs.
In the Wine Operating segment, the Cost of sales per hectoliter grew 18.8%, due to higher costs in packaging materials and inflationary
pressures. |
| · | Gross profit reached CLP 841,424 million, a 4.9% expansion.
Gross margin dropped 496 bps, from 48.3% to 43.3%, as a consequence of the effects described above. |
| · | MSD&A expenses were up 16.7%, mostly caused by
higher distribution costs across all our Operating segments, due to greater oil prices, and an accelerating inflation. As percentage of
Net sales MSD&A expenses recorded 36.3%, flat versus last year as a consequence of efficiencies and expenses control initiatives from
our CCU Transformation program. The performance by segment was as follows: In the Chile Operating segment, MSD&A expenses expanded
5.5%, and as a percentage of Net sales decreased 50 bps. In the International Business Operating segment MSD&A expenses in CLP were
up 39.7%, and as a percentage of Net sales decreased 150 bps. In the Wine Operating segment, MSD&A expenses grew 17.4%, and as a percentage
of Net sales increased 11 bps. |
| · | EBIT reached CLP 137,755 million, a contraction of
33.1%, mainly due to sharp negative external effects coming from: (i) higher cost in raw and packaging materials, (ii) the depreciation of our main local currencies against the USD, impacting negatively
our USD denominated costs, partly compensated with wine export revenues, and (iii) costs and expenses pressures associated with an accelerating
inflation in our main geographies, and higher oil prices. These effects were partially compensated by a double-digit growth in revenues
driven by revenue management efforts. |
| · | EBITDA reached CLP 235,203 million, a 18.8% decrease,
driven by a 35.2% drop in the Chile Operating segment, while the International Business Operating segment expanded 72.1%, and the Wine
Operating segment grew 10.5%. In addition, EBITDA margin contracted 532 bps, from 17.4% to 12.1%, driven by the same reasons that impacted
EBIT. |
| · | Non-operating result totalized a loss of CLP 55,985
million versus a negative result of CLP 14,767 million last year. The higher loss was explained by: (i) a lower result by CLP 22,072 million
in Net financial expenses due to a larger debt, (ii) a higher loss by CLP 10,682 million in Foreign currency exchange differences, (iii)
a higher loss in Equity and income of JVs and associated by CLP 4,535 million, (iv) a lower result in Other gains/(losses) by CLP 2,147
million, mostly explained by derivative contracts5, and (v) a higher loss in Results as per adjustment units by CLP 1,780 million,
explained by a larger inflation. |
| · | Income taxes reached a gain of CLP 641 million, versus
a loss of CLP 52,362 million last year, mostly explained by both a lower taxable income and a better result on Tax effect of permanent
differences, net7. |
| · | Net income reached a gain of CLP 71,315 million, a
43.2% contraction, explained by the reasons described above. |
7 See Note 25 Income taxes of our Financial Statements as of September 2022
PRESS RELEASE | |
| | |
|
HIGHLIGHTS OPERATING SEGMENTS THIRD QUARTER |
CHILE OPERATING SEGMENT
As mentioned above, the Chile Operating segment has been
the most affected by the adverse macroeconomic scenario and a weaker consumption environment. Our top line was flat, due to 4.8% growth
in average prices, explained by revenue management initiatives, partially offset by a negative mix effect in the portfolio, while volumes
declined 4.5% (19.3% growth vs. 3Q19). Gross profit contracted 16.8%, and Gross margin dropped from 48.3% to 40.1%, mostly caused by a
20.0%8 devaluation of the CLP against the USD, affecting our USD denominated costs,
and cost pressures from higher prices in raw and packaging materials. MSD&A expenses grew 8.3%, and as percentage of Net sales increased
261 bps, due to expenses pressures coming from higher inflation and oil prices. In all, EBITDA reached CLP 37,947 million, decreasing
51.1%, and EBITDA margin decreased from 20.5% to 10.0%.
As part of our portfolio development and innovation strategy,
in the beer category, we added “Volcanes del Sur” to our portfolio, a craft brand in Chile. Also, in beer we introduced Heineken
Silver, a lighter and lower alcohol content beer than the classic Heineken, and Royal Guard 0.0°, a non-alcoholic beer. In the non-alcoholic
category our flavored water brand MAS, presented a new variety, Aloe-vera, an innovative proposal with no sugar added.
Regarding sustainability initiatives, we recently signed
an 8-year contract to provide electric energy generated 100% from renewable sources to 14 plants and distribution centers. This initiative
is in line with our environmental vision which assumes specific goals for the reduction of greenhouse gases, the reduction of water use,
the use of renewable sources for electric energy, and the valorization of solid industrial waste. In addition, as we declare in our Sustainability
Management Model, we aim to build brands that inspire us, within this view during the quarter our water brand Cachantun, through its program
“Refresh your neighborhood”, inaugurated a new plaza in Santiago, becoming the 9th across the country. All the equipment of
these green areas, are built using recycled PET.
INTERNATIONAL BUSINESS
OPERATING SEGMENT
In the International Business Operating segment, which
includes Argentina, Bolivia, Paraguay and Uruguay, Net sales recorded a 25.8% rise, as a result of an increase of 27.5% in average prices
in CLP, while volumes contracted 1.3% (12.1% growth vs. 3Q19). The better average prices were mostly explained by revenue management initiatives
in all the geographies. Gross profit expanded 28.9%, and Gross margin grew from 47.3% to 48.5%. MSD&A expenses as a percentage of
Net sales were flat due to efficiencies that compensated higher inflation and other cost pressures. Altogether, EBITDA reached CLP 19,800
million, a 16,9% expansion.
In terms of brands, in Bolivia, our recently launched beer
Uyuni was awarded as the revelation of the year by the Bolivian Maya awards. In Argentina, we presented a new variety for our beer brand
Imperial, a red ale called “Roja”, and our beer brand Santa Fe relaunched a responsible alcohol consumption program with a
strong focus on the concept of don’t drink and drive.
In Colombia, we incorporated Heineken 0.0, expanding our
premium beer portfolio, and our mainstream beer brand Andina became the sponsor of the soccer team Millonarios FC.
WINE OPERATING SEGMENT
In the Wine Operating segment, revenues were up 19.8%,
mainly explained by a 19.1% growth in average prices, as volumes increased 0.6% (10.6% growth vs. 3Q19), the latter driven by exports
and the Argentina domestic market. The higher prices in CLP were mainly explained by a positive impact on export revenues from the depreciation
of the CLP versus the USD, and revenue management initiatives in our domestic markets, which permitted us to partially compensate higher
costs in packaging materials and inflationary pressures. Consequently, Gross profit expanded 17.3% and Gross margin decreased 83 bps from
38.8% to 38.0%. MSD&A expenses grew 24.1%, and as a percentage of Net sales increased 85 bps. In all, EBITDA reached CLP 14,733 million,
a 9.9% rise, while EBITDA margin decreased from 18.9% to 17.4%.
During the quarter we obtained the Seal of Sustainability
of Wines of Chile, which certifies that our tourist activities are carried out with high standards of social and environmental standards,
highlighting the use of renewable energies, respect and care for the biodiversity of the environment, while also promoting local producers.
In addition, we obtained a sustainable certification for our operations in Argentina, which makes us proud and challenges us to continue
positioning ourselves as a benchmark within of the industry in sustainability issues, demonstrating that sustainability is possible from
the vineyard until destination.
8 The CLP currency variation against the USD considers 2022 average of period (aop)
compared to 2021 aop.
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 2022) |
| Third
Quarter |
2022 |
2021 |
Total
Change % |
| |
(CLP
million) |
| Net
sales |
684,106 |
622,730 |
9.9 |
| Cost
of sales |
(391,714) |
(330,148) |
18.6 |
| %
of Net sales |
57.3 |
53.0 |
424
bps |
| Gross
profit |
292,391 |
292,581 |
(0.1) |
| %
of Net sales |
42.7 |
47.0 |
(424)
bps |
| MSD&A |
(259,956) |
(224,680) |
15.7 |
| %
of Net sales |
38.0 |
36.1 |
192
bps |
| Other
operating income/(expenses) |
1,096 |
3,563 |
(69.2) |
| EBIT |
33,531 |
71,464 |
(53.1) |
| EBIT
margin % |
4.9 |
11.5 |
(657)
bps |
| Net
financial expenses |
(18,695) |
(6,214) |
200.8 |
| Equity
and income of JVs and associated |
(3,495) |
(1,013) |
245.0 |
| Foreign
currency exchange differences |
(8,096) |
(4,483) |
80.6 |
| Results
as per adjustment units |
4,641 |
552 |
>500 |
| Other
gains/(losses) |
1,329 |
7,304 |
(81.8) |
| Non-operating
result |
(24,316) |
(3,855) |
>500 |
| Income/(loss)
before taxes |
9,215 |
67,609 |
(86.4) |
| Income
taxes |
10,185 |
(20,857) |
148.8 |
| Net
income for the period |
19,400 |
46,752 |
(58.5) |
| |
|
|
|
| Net
income attributable to: |
|
|
|
| The equity holders of the
parent |
17,226 |
42,168 |
(59.1) |
| Non-controlling
interest |
(2,174) |
(4,584) |
(52.6) |
| |
|
|
|
| EBITDA |
67,607 |
101,472 |
(33.4) |
| EBITDA
margin % |
9.9 |
16.3 |
(641)
bps |
| |
|
|
|
| OTHER
INFORMATION |
|
|
|
| Number
of shares |
369,502,872 |
369,502,872 |
|
| Shares
per ADR |
2 |
2 |
|
| |
|
|
|
| Earnings
per share (CLP) |
46.6 |
114.1 |
(59.1) |
| Earnings
per ADR (CLP) |
93.2 |
228.2 |
(59.1) |
| |
|
|
|
| Depreciation |
34,075 |
30,008 |
13.6 |
| Capital
Expenditures |
56,697 |
35,986 |
57.6 |
PRESS RELEASE | |
| | |
| Exhibit 2: Consolidated
Income Statement (Nine months ended on September 30, 2022) |
| YTD
as of September |
2022 |
2021 |
Total Change
% |
| |
(CLP
million) |
| Net
sales |
1,943,073 |
1,662,364 |
16.9 |
| Cost
of sales |
(1,101,649) |
(859,986) |
28.1 |
| %
of Net sales |
56.7 |
51.7 |
496
bps |
| Gross
profit |
841,424 |
802,378 |
4.9 |
| %
of Net sales |
43.3 |
48.3 |
(496)
bps |
| MSD&A |
(705,604) |
(604,618) |
16.7 |
| %
of Net sales |
36.3 |
36.4 |
(6)
bps |
| Other
operating income/(expenses) |
1,935 |
8,123 |
(76.2) |
| EBIT |
137,755 |
205,882 |
(33.1) |
| EBIT
margin % |
7.1 |
12.4 |
(530)
bps |
| Net
financial expenses |
(35,578) |
(13,506) |
(163.4) |
| Equity
and income of JVs and associated |
(7,897) |
(3,362) |
(134.9) |
| Foreign
currency exchange differences |
(17,932) |
(7,250) |
(147.3) |
| Results
as per adjustment units |
(431) |
1,349 |
132.0 |
| Other
gains/(losses) |
5,854 |
8,002 |
(26.8) |
| Non-operating
result |
(55,985) |
(14,767) |
(279.1) |
| Income/(loss)
before taxes |
81,771 |
191,115 |
(57.2) |
| Income
taxes |
641 |
(52,362) |
101.2 |
| Net income
for the period |
82,411 |
138,753 |
(40.6) |
| |
|
|
|
| Net
income attributable to: |
|
|
|
| The
equity holders of the parent |
71,315 |
125,520 |
(43.2) |
| Non-controlling
interest |
(11,096) |
(13,234) |
(16.2) |
| |
|
|
|
| EBITDA |
235,203 |
289,595 |
(18.8) |
| EBITDA
margin % |
12.1 |
17.4 |
(532)
bps |
| |
|
|
|
| OTHER
INFORMATION |
|
|
|
| Number
of shares |
369,502,872 |
369,502,872 |
|
| Shares
per ADR |
2 |
2 |
|
| |
|
|
|
| Earnings
per share (CLP) |
193.0 |
339.7 |
43.2 |
| Earnings
per ADR (CLP) |
386.0 |
679.4 |
43.2 |
| |
|
|
|
| Depreciation |
97,448 |
83,713 |
16.4 |
| Capital
Expenditures |
135,501 |
106,837 |
26.8 |
PRESS RELEASE | |
| | |
| Exhibit 3: Segment Information (Third Quarter
2022) |
| |
1.
Chile Operating segment |
|
2.
International Business Operating segment |
|
3.
Wine Operating segment |
| Third Quarter |
|
|
| (In
ThHL or CLP million unless stated otherwise) |
2022 |
2021 |
YoY
% |
|
2022 |
2021 |
YoY
% |
|
2022 |
2021 |
YoY
% |
| |
|
|
| Volumes |
5,301 |
5,549 |
(4.5) |
|
2,286 |
2,317 |
(1.3) |
|
437 |
434 |
0.6 |
| Net
sales |
379,319 |
378,830 |
0.1 |
|
232,995 |
185,199 |
25.8 |
|
84,893 |
70,847 |
19.8 |
| Net
sales (CLP/HL) |
71,555 |
68,266 |
4.8 |
|
101,925 |
79,945 |
27.5 |
|
194,377 |
163,155 |
19.1 |
| Cost
of sales |
(227,167) |
(195,902) |
16.0 |
|
(120,075) |
(97,590) |
23.0 |
|
(52,666) |
(43,363) |
21.5 |
| %
of Net sales |
59.9 |
51.7 |
818
bps |
|
51.5 |
52.7 |
(116)
bps |
|
62.0 |
61.2 |
83
bps |
| Gross
profit |
152,152 |
182,928 |
(16.8) |
|
112,921 |
87,609 |
28.9 |
|
32,227 |
27,484 |
17.3 |
| %
of Net sales |
40.1 |
48.3 |
(818)
bps |
|
48.5 |
47.3 |
116
bps |
|
38.0 |
38.8 |
(83)
bps |
| MSD&A |
(131,347) |
(121,307) |
8.3 |
|
(105,718) |
(83,771) |
26.2 |
|
(21,031) |
(16,953) |
24.1 |
| %
of Net sales |
34.6 |
32.0 |
261
bps |
|
45.4 |
45.2 |
14
bps |
|
24.8 |
23.9 |
85
bps |
| Other
operating income/(expenses) |
(43) |
62 |
(170.2) |
|
529 |
3,348 |
(84.2) |
|
227 |
70 |
224.3 |
| EBIT |
20,762 |
61,683 |
(66.3) |
|
7,732 |
7,186 |
7.6 |
|
11,422 |
10,601 |
7.8 |
| EBIT
margin |
5.5 |
16.3 |
(1,081)
bps |
|
3.3 |
3.9 |
(56)
bps |
|
13.5 |
15.0 |
(151)
bps |
| EBITDA |
37,947 |
77,635 |
(51.1) |
|
19,810 |
16,933 |
17.0 |
|
14,733 |
13,404 |
9.9 |
| EBITDA
margin |
10.0 |
20.5 |
(1,049)
bps |
|
8.5 |
9.1 |
(64)
bps |
|
17.4 |
18.9 |
(156)
bps |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
4.
Other/eliminations |
|
Total |
|
|
|
|
| Third Quarter |
|
|
|
|
|
| (In ThHL
or CLP million unless stated otherwise) |
2022 |
2021 |
YoY
% |
|
2022 |
2021 |
YoY
% |
|
|
|
|
| |
|
|
|
|
|
| Volumes |
(44) |
(87) |
(49.2) |
|
7,979 |
8,213 |
(2.8) |
|
|
|
|
| Net
sales |
(13,101) |
(12,146) |
7.9 |
|
684,106 |
622,730 |
9.9 |
|
|
|
|
| Net
sales (CLP/HL) |
|
|
|
|
85,734 |
75,824 |
13.1 |
|
|
|
|
| Cost
of sales |
8,193 |
6,706 |
22.2 |
|
(391,714) |
(330,148) |
18.6 |
|
|
|
|
| %
of Net sales |
|
|
|
|
57.3 |
53.0 |
424
bps |
|
|
|
|
| Gross
profit |
(4,908) |
(5,440) |
(9.8) |
|
292,391 |
292,581 |
(0.1) |
|
|
|
|
| %
of Net sales |
|
|
|
|
42.7 |
47.0 |
(424)
bps |
|
|
|
|
| MSD&A |
(1,860) |
(2,650) |
(29.8) |
|
(259,956) |
(224,680) |
15.7 |
|
|
|
|
| %
of Net sales |
|
|
|
|
38.0 |
36.1 |
192
bps |
|
|
|
|
| Other
operating income/(expenses) |
384 |
84 |
356.5 |
|
1,096 |
3,563 |
(69.2) |
|
|
|
|
| EBIT |
(6,385) |
(8,006) |
(20.2) |
|
33,531 |
71,464 |
(53.1) |
|
|
|
|
| EBIT
margin |
|
|
|
|
4.9 |
11.5 |
(657)
bps |
|
|
|
|
| EBITDA |
(4,884) |
(6,499) |
(24.9) |
|
67,607 |
101,472 |
(33.4) |
|
|
|
|
| EBITDA
margin |
|
|
|
|
9.9 |
16.3 |
(641)
bps |
|
|
|
|
PRESS RELEASE | |
| | |
| Exhibit 4: Segment Information (Nine months
ended on September 30, 2022) |
| |
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) |
2022 |
2021 |
YoY
% |
|
2022 |
2021 |
YoY
% |
|
2022 |
2021 |
YoY
% |
| |
|
|
| Volumes |
16,616 |
16,551 |
0.4 |
|
6,544 |
6,407 |
2.1 |
|
1,200 |
1,200 |
(0.0) |
| Net
sales |
1,166,086 |
1,088,486 |
7.1 |
|
585,432 |
405,761 |
44.3 |
|
224,516 |
192,032 |
16.9 |
| Net
sales (CLP/HL) |
70,180 |
65,766 |
6.7 |
|
89,467 |
63,326 |
41.3 |
|
187,096 |
159,995 |
16.9 |
| Cost
of sales |
(685,326) |
(541,636) |
26.5 |
|
(298,873) |
(214,208) |
39.5 |
|
(139,410) |
(117,385) |
18.8 |
| %
of Net sales |
58.8 |
49.8 |
901
bps |
|
51.1 |
52.8 |
(174)
bps |
|
62.1 |
61.1 |
97
bps |
| Gross
profit |
480,761 |
546,851 |
(12.1) |
|
286,559 |
191,552 |
49.6 |
|
85,105 |
74,647 |
14.0 |
| %
of Net sales |
41.2 |
50.2 |
(901)
bps |
|
48.9 |
47.2 |
174
bps |
|
37.9 |
38.9 |
(97)
bps |
| MSD&A |
(376,575) |
(356,962) |
5.5 |
|
(266,630) |
(190,875) |
39.7 |
|
(57,431) |
(48,901) |
17.4 |
| %
of Net sales |
32.3 |
32.8 |
(50)
bps |
|
45.5 |
47.0 |
(150)
bps |
|
25.6 |
25.5 |
11
bps |
| Other
operating income/(expenses) |
(136) |
589 |
(123.2) |
|
1,122 |
7,132 |
(84.3) |
|
479 |
270 |
77.6 |
| EBIT |
104,050 |
190,478 |
(45.4) |
|
21,051 |
7,809 |
169.6 |
|
28,153 |
26,016 |
8.2 |
| EBIT
margin |
8.9 |
17.5 |
(858)
bps |
|
3.6 |
1.9 |
167
bps |
|
12.5 |
13.5 |
(101)
bps |
| EBITDA |
155,103 |
239,516 |
(35.2) |
|
54,030 |
31,416 |
72.0 |
|
37,991 |
34,393 |
10.5 |
| EBITDA
margin |
13.3 |
22.0 |
(870)
bps |
|
9.2 |
7.7 |
149
bps |
|
16.9 |
17.9 |
(99)
bps |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
4.
Other/eliminations |
|
Total |
|
|
|
|
| YTD as of September |
|
|
|
|
|
| (In ThHL
or CLP million unless stated otherwise) |
2022 |
2021 |
YoY
% |
|
2022 |
2021 |
YoY
% |
|
|
|
|
| |
|
|
|
|
|
| Volumes |
(136) |
(145) |
(6.4) |
|
24,223 |
24,014 |
0.9 |
|
|
|
|
| Net
sales |
(32,961) |
(23,915) |
37.8 |
|
1,943,073 |
1,662,364 |
16.9 |
|
|
|
|
| Net
sales (CLP/HL) |
|
|
|
|
80,214 |
69,226 |
15.9 |
|
|
|
|
| Cost
of sales |
21,960 |
13,243 |
65.8 |
|
(1,101,649) |
(859,986) |
28.1 |
|
|
|
|
| %
of Net sales |
|
|
|
|
56.7 |
51.7 |
496
bps |
|
|
|
|
| Gross
profit |
(11,001) |
(10,672) |
3.1 |
|
841,424 |
802,378 |
4.9 |
|
|
|
|
| %
of Net sales |
|
|
|
|
43.3 |
48.3 |
(496)
bps |
|
|
|
|
| MSD&A |
(4,968) |
(7,881) |
(37.0) |
|
(705,604) |
(604,618) |
16.7 |
|
|
|
|
| %
of Net sales |
|
|
|
|
36.3 |
36.4 |
(6)
bps |
|
|
|
|
| Other
operating income/(expenses) |
470 |
133 |
253.8 |
|
1,935 |
8,123 |
(76.2) |
|
|
|
|
| EBIT |
(15,499) |
(18,420) |
(15.9) |
|
137,755 |
205,882 |
(33.1) |
|
|
|
|
| EBIT
margin |
|
|
|
|
7.1 |
12.4 |
(530)
bps |
|
|
|
|
| EBITDA |
(11,921) |
(15,729) |
(24.2) |
|
235,203 |
289,595 |
(18.8) |
|
|
|
|
| EBITDA
margin |
|
|
|
|
12.1 |
17.4 |
(532)
bps |
|
|
|
|
PRESS RELEASE | |
| | |
| Exhibit 5: Balance Sheet |
| |
September
30 |
December
31 |
| |
2022 |
2021 |
| |
(CLP
million) |
| ASSETS |
|
|
| Cash
and cash equivalents |
635,484 |
265,568 |
| Other
current assets |
1,052,255 |
825,804 |
| Total
current assets |
1,687,740 |
1,091,372 |
| |
|
|
| PP&E
(net) |
1,370,321 |
1,222,261 |
| Other
non current assets |
619,369 |
533,117 |
| Total
non current assets |
1,989,689 |
1,755,378 |
| Total
assets |
3,677,429 |
2,846,751 |
| |
|
|
| LIABILITIES |
|
|
| Short
term financial debt |
206,170 |
107,579 |
| Other
liabilities |
620,535 |
673,537 |
| Total
current liabilities |
826,704 |
781,115 |
| |
|
|
| Long
term financial debt |
1,168,621 |
487,279 |
| Other
liabilities |
168,117 |
152,841 |
| Total
non current liabilities |
1,336,738 |
640,120 |
| Total
Liabilities |
2,163,442 |
1,421,235 |
| |
|
|
| EQUITY |
|
|
| Paid-in
capital |
562,693 |
562,693 |
| Other
reserves |
9,496 |
(87,256) |
| Retained
earnings |
819,619 |
832,181 |
| Total
equity attributable to equity holders of the parent |
1,391,808 |
1,307,618 |
| Non
- controlling interest |
122,178 |
117,897 |
| Total
equity |
1,513,986 |
1,425,515 |
| Total
equity and liabilities |
3,677,429 |
2,846,751 |
| |
|
|
| OTHER
FINANCIAL INFORMATION |
|
|
| |
|
|
| Total Financial Debt |
1,374,790 |
594,858 |
| |
|
|
| Net Financial Debt |
739,306 |
329,289 |
| |
|
|
| Liquidity ratio |
2.04 |
1.40 |
| Total Financial Debt / Capitalization |
0.48 |
0.29 |
| Net
Financial Debt / EBITDA |
1.89 |
0.74 |
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, 2022
Compania Cervecerias Uni... (NYSE:CCU)
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