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 SECOND QUARTER 2023 RESULTS[1],[2]
Santiago, Chile, August 9, 2023 – CCU
announced today its consolidated financial and operating results for the second quarter 2023, which ended June 30, 2023.
| · | Consolidated Volumes increased 4.8%. Volume
variation per Operating segment was as follows: |
| o | International Business 8.1% |
| · | Gross profit increased 10.7% |
| · | EBITDA reached CLP 47,126 million, a 45.1%
increase. EBITDA variation per Operating segment was as follows: |
| o | International Business 74.9% |
| · | Net income reached a loss of CLP 3,943
million versus a loss of CLP 10,455 million last year. |
| · | Earnings per share reached a loss of CLP
10.7 per share. |
| Key figures |
|
2Q23 |
2Q22 |
D % |
YTD23 |
YTD22 |
D % |
| (In ThHL or CLP million unless stated otherwise) |
|
| Volumes |
|
6,883 |
6,567 |
4.8 |
16,245 |
16,260 |
(0.1) |
| Net sales |
|
574,242 |
558,503 |
2.8 |
1,306,272 |
1,258,968 |
3.8 |
| Gross profit |
|
249,415 |
225,308 |
10.7 |
604,361 |
549,033 |
10.1 |
| EBIT |
|
12,952 |
(1,671) |
>500 |
117,174 |
104,224 |
12.4 |
| EBITDA |
|
47,126 |
32,471 |
45.1 |
182,503 |
167,597 |
8.9 |
| Net income |
|
(3,943) |
(10,455) |
(62.3) |
54,424 |
54,089 |
0.6 |
| Earnings per share (CLP) |
|
(10.7) |
(28.3) |
(62.3) |
147.3 |
146.4 |
0.6 |
[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 2Q23 compared to 2Q22, unless otherwise stated.
PRESS RELEASE |  |
| | |
During the second quarter 2023, CCU posted
a strong set of results in a tough economic environment, expanding consolidated volumes by 4.8% and EBITDA by 45.1% from last year. The
growth in volumes and EBITDA, was 6.0% and 96.2%, respectively, excluding the Wine Operating segment, which is facing a particularly challenging
scenario, due to a sharp decrease in export volumes, in line with the Chilean wine industry. The performance of the quarter shows that
our efforts and initiatives to recover our profitability, framed under the regional plan “HerCCUles 2023”, are in the right
path, however, we are aware that more efforts are needed in order to consolidate this positive trend. Accordingly, looking ahead we will
continue focusing on the six pillars of “HerCCUles 2023”: (1) maintain business scale, (2) strengthen revenue management efforts,
(3) enhance the CCU Transformation program to deliver efficiency gains, (4) optimize CAPEX and working capital, (5) focus on core brands
and high volume/margin innovations, and (6) continue investing in our brand equity.
In 2Q23, our revenues expanded 2.8%, boosted
by 4.8% rise in volumes while average prices in CLP contracted 1.9%. The expansion in volumes in the quarter allowed us to be on track
to maintain business scale in 2023 (“HerCCUles” pillar #1). The lower average prices in CLP were largely explained by a negative
translation effect in Argentina, although in local currency evolved in line with inflation, and in the Chile Operating segment average
prices grew high single digit during the quarter, in spite of negative mix effects. Gross profit jumped 10.7%, and Gross margin rose 309
bps, from 40.3% to 43.4%, the latter driven by the higher revenues but also associated with more favorable costs in relevant packaging
materials, and the appreciation of the CLP versus the USD, impacting positively our USD-denominated costs (“HerCCUles” pillar
#2). MSD&A expenses increased 3.6% versus last year, and as a percentage of Net Sales were practically flat, due to efficiencies through
all our operating segments (“HerCCUles” pillar #3”). In all, EBITDA reached CLP 47,126 million, up by 45.1%, and Net
income totalized a loss of CLP 3,943 million, versus a negative result of CLP 10,455 million last year. Additionally, in 2Q23 we kept
delivering stronger cash generation versus 2022. Thus, as of June 2023 Net cash inflow from operating activities expanded by CLP 148,431
million versus 2022, while Net cash (outflow) from investing activities decreased CLP 43,407 million during the same period (“HerCCUles”
pillar #4”). In addition, we reduced our portfolio complexity and recorded strong brand preference indicators, being key to gain/maintain
market share in our main categories (“HerCCUles” pillars #5 & #6).
In the Chile Operating segment, our top line
expanded 14.7%, boosted by a 9.5% growth in average prices and a 4.7% increase in volumes. The higher average prices were explained by
revenue management initiatives, partially offset by a negative mix effect in all the categories. Higher volumes were explained by our
main categories, showing resiliency in a challenging consumption environment. Gross profit expanded 30.4%, and Gross margin improved from
38.7% to 44.0%, due to top line performance and lower cost pressures, as Cost of sales per hectoliter were stable versus last year. MSD&A
expenses grew 15.7%, and as percentage of Net sales were almost flat, where efficiencies helped us to partially offset an increase in
distribution costs from higher oil prices, and larger marketing expenses. In all, EBITDA reached CLP 44,106 million, growing 86.0%, and
EBITDA margin increased 450 bps from 7.2% to 11.7%.
In the International Business Operating segment,
which includes Argentina, Bolivia, Paraguay and Uruguay, Net sales recorded a 13.0% contraction, as a result of 19.6% lower average prices
in CLP, partially offset by an 8.1% expansion in volumes, the latter driven by Argentina, Uruguay and Paraguay. The lower average prices
were largely explained by a negative translation effect in Argentina, although in local currency they expanded in line with inflation
due to revenue management efforts. Gross profit contracted 11.3%, and Gross margin grew from 45.1% to 46.0%. MSD&A expenses decreased
13.4%, and as a percentage of Net sales were stable due to efficiencies, compensating higher inflation and other cost pressures. Altogether,
EBITDA reached CLP 1,875 million, increasing 74.9% from last year.
The Wine Operating segment continued facing
a tough business environment during the quarter. Revenues were down 14.9%, mostly explained by a 13.4% contraction in volumes and average
prices decreased 1.7%. The lower volume, just like in the first quarter, was mostly attributable to exports (20.8% decrease in our exports
from Chile; 29.0% contraction of the Chilean industry in the same quarter), while the Chile domestic market decreased mid-single digit,
also explained by a contraction in the industry. The lower average prices were mainly caused by the appreciation of the CLP against the
USD, impacting negatively export revenues, partially compensated with revenue management efforts. Consequently, Gross profit dropped 19.8%
and Gross margin decreased 214 bps from 36.9% to 34.7%. MSD&A expenses decreased 1.6% versus last year, and as a percentage of Net
sales increased 404 bps associated with a lower business scale. In all, EBITDA reached CLP 6,543 million, a 44.5% contraction.
In terms of our main JVs and associated businesses,
in Colombia and Argentina we posted a total volume increase of low-double digit. In Argentina, while we continue with the integration
of the distribution of our beer and water businesses, the distribution agreement that we had in some regions with two local Coca-Cola
bottlers expired in June. In those regions, we are implementing a new distribution network. At the same time, we are negotiating a potential
new distribution agreement with the Coca-Cola bottlers which could include some of the brands of our portfolio.
During 2Q23, we consolidated a recovery path in
our financial results in a tough economic environment. The latter was mainly driven by the implementation of “HerCCUles 2023”.
We are aware that more efforts are needed to keep improving profitability. In order to do so, during the second semester and ahead, we
will keep executing our strategy to deliver profitable and sustainable growth.
PRESS RELEASE | |
| | |
|
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS – SECOND QUARTER (Exhibit 1 & 2) |
| · | Net sales were up 2.8%, explained by 4.8%
higher volumes while average prices in CLP declined 1.9%. In terms of volume growth, the performance by Operating segment was as follows:
(i) 4.7% expansion in the Chile Operating segment explained by our main categories, showing resiliency in a challenging consumption environment,
and (ii) 8.1% growth in the International Business Operating segment, driven by Argentina, Uruguay and Paraguay. This performance was
partially counterbalanced by a 13.4% decrease in the Wine Operating segment, mostly attributable to a 20.8% decrease in exports from Chile
(29.0% contraction in the Chilean export industry during the quarter), while the Chile domestic market decreased mid-single digit. Regarding
average prices, the contraction was explained by: (i) a decline of 19.6% in the International Business Operating segment, largely explained
by a negative translation effect in Argentina, although in local currency average prices expanded in line with inflation, due to revenue
management efforts, and (ii) a 1.7% decrease in the Wine Operating segment, mainly explained by the appreciation of the CLP against the
USD, impacting negatively export revenues. These effects were almost offset by a 9.5% growth in the Chile Operating segment, explained
by revenue management initiatives, partially offset by a negative mix effect. |
| · | Cost of sales was down 2.5%, explained
by a 7.0% contraction in Cost of sales per hectoliter. The Chile Operating segment reported flat Cost of sales per hectoliter driven by
lower cost pressures from relevant packaging materials, mainly aluminum, efficiencies in manufacturing costs, and the 4.8%[3]
appreciation of the CLP against the USD, impacting positively our USD denominated costs. These effects were compensated by higher costs
in malt and sugar. In the International Business Operating segment, the Cost of sales per hectoliter contracted 20.9% in CLP, mostly explained
by a translation effect in Argentina, as in local currency Cost of sales per hectoliter expanded, mostly driven by the 105.2%[4]
depreciation of the ARS against the USD, and its negative impact on USD-denominated costs. In the Wine Operating segment, the Cost of
sales per hectoliter expanded 1.7%, due to higher costs in packaging materials, and a higher cost of wine. |
| · | Gross profit reached CLP 249,415 million,
a 10.7% expansion while Gross margin improved 309 bps, from 40.3% to 43.4%. |
| · | MSD&A expenses were up 3.6% and as
percentage of Net sales, were practically flat, moving from 40.7% to 41.0%. The latter was mostly caused by an increase in distribution
expenses, from higher oil prices, and larger marketing expenses, partially compensated with efficiencies and expenses control initiatives.
In the Chile Operating segment, MSD&A expenses expanded 15.7%, and as a percentage of Net sales increased 34 bps. In the International
Business Operating segment, MSD&A expenses in CLP were down 13.4%, and as a percentage of Net sales decreased 21 bps. In the Wine
Operating segment, MSD&A expenses decreased 1.6%, and as a percentage of Net sales rose 404 bps, mostly due to a lower business scale. |
| · | EBIT reached a gain of CLP 12,952 million
versus a loss of CLP 1,671 million last year due to the reasons described above. |
| · | EBITDA was up 45.1%, mostly driven by an
86.0% increase in the Chile Operating segment, and the International Business Operating segment growing by 74.9%. These better results
were partially offset by the Wine Operating segment, which is facing a particularly challenging business environment, which decreased
44.5%. EBITDA margin expanded 239 bps, from 5.8% to 8.2%. Isolating the Wine Operating segment, which is facing a challenging business
environment, EBITDA would have increased 96.2% in the quarter. |
| · | Non-operating result totalized a loss of
CLP 25,246 million, which compares with a negative result of CLP 13,744 million last year. The higher loss was explained by: (i) higher
loss in Equity and income of JVs and associated by CLP 2,343 million, (ii) higher loss in Results as per adjustment units by CLP 2,053
million, and (iii) a lower result in Other gains/(losses) by CLP 16,390 million, mostly explained by a lower result in derivative contracts[5].
These effects were partially compensated by a lower loss by CLP 4,313 million in Foreign currency exchange differences, as well as, a
lower loss by CLP 4,971 million in Net financial expenses. |
| · | Income taxes reached a gain of CLP 8,695
million versus a gain of CLP 8,020 million last year. The higher gain was associated with a better result on Tax effect of permanent differences,
net[6]. |
| · | Net income reached a loss of CLP 3,943
million, a better result when compared with a loss of CLP 10,455 million recorded last year. |
[3] The CLP currency variation against the USD considers 2023 average of
period (aop) compared with 2022 (aop).
[4] The ARS currency variation against the USD considers 2023 end of period
(eop) compared with 2022 (eop).
[5] See Note 32 Other Gain/(Losses) of our Financial Statements as of June
2023.
[6] See Note 25 Income taxes of our Financial Statements as of June 2023.
PRESS RELEASE | |
| | |
|
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS
– FIRST HALF (Exhibit 2 & 4) |
| · | Net sales were up 3.8%, fully explained
by higher average prices in CLP as volumes were flat. The higher average prices in CLP were explained by the 8.6% growth in the Chile
Operating segment, due to the implementation of revenue management initiatives, partially compensated by negative mix effects. The latter
was partially compensated with: (i) a decrease of 1.6% in the International Business Operating segment, explained by negative translation
effects in Argentina, as in local currency prices evolved in line with inflation, and (ii) a 0.9% drop in the Wine Operating segment,
mainly attributable to negative mix effects and the negative impact on export revenues from the appreciation of the CLP versus the USD.
Volumes were flat, as the 1.2% expansion in the Chile Operating segment was fully compensated with a contraction of 2.0% in the International
Business Operating segment, and a 15.5% drop in the Wine Operating segment, the latter mainly due to exports. |
| · | Cost of sales was down 1.1%, mainly explained
by a 1.0% decrease in Cost of sales per hectoliter. The Chile Operating segment reported a 0.7% growth in Cost of sales per hectoliter,
driven by higher costs in some raw materials, mainly malt, PET and sugar, partially compensated with lower costs in aluminum, efficiencies
in manufacturing, and in a lower extent, the 2.3%3 appreciation of the CLP against the USD, impacting positively our USD denominated
costs. In the International Business Operating segment, the Cost of sales per hectoliter contracted 5.6% in CLP, mostly explained by a
translation effect in Argentina, as in local currency Cost of sales per hectoliter expanded, mostly driven by the 105.2%4 depreciation
of the ARS against the USD, and its negative impact on USD-denominated costs. In the Wine Operating segment, the Cost of sales per hectoliter
grew 6.1%, due to higher costs in packaging materials. |
| · | Gross profit reached CLP 604,361 million,
a 10.1% expansion. Gross margin expanded 266 bps, from 43.6% to 46.3%, as a consequence of the effects described above. |
| · | MSD&A expenses were up 9.3%, and as
percentage of Net sales, grew 188 bps, from 35.4% to 37.3%. The latter was mostly caused by higher marketing expenses due to phasing and
higher distribution costs, mostly as a consequence of higher oil prices. The performance by segment was as follows: In the Chile Operating
segment, MSD&A expenses expanded 18.1%, and as a percentage of Net sales increased 234 bps. In the International Business Operating
segment MSD&A expenses in CLP were down 2.9%, and as a percentage of Net sales increased 30 bps. In the Wine Operating segment, MSD&A
expenses grew 1.7%, and as a percentage of Net sales grew 450 bps. |
| · | EBIT reached CLP 117,174 million, an expansion
of 12.4%, mainly due to higher average prices, due to revenue management initiatives, and lower cost pressures. |
| · | EBITDA reached CLP 182,503 million, an
8.9% increase, driven by 22.8% increase in the Chile Operating segment and the International Business Operating segment expanded 10.0%,
while the Wine Operating segment decreased 56.8%. In addition, EBITDA margin improved 66 bps, from 13.3% to 14.0%. Isolating the Wine
Operating segment, which is facing a challenging business environment, EBITDA would have increased 19.5% in the first half. |
| · | Non-operating result totalized a loss of
CLP 52,559 million versus a negative result of CLP 31,668 million last year. The higher loss was explained by: (i) a higher loss in Other
gains/(losses) by CLP 14,852 million, mostly explained by a lower result in derivative contracts5, (ii) a higher loss by CLP
1,609 million in Foreign currency exchange differences, (iii) a higher loss in Results as per adjustment units by CLP 117 million, and
(iv) a higher loss in Equity and income of JVs and associated by CLP 5,597 million. These effects were partially compensated by a higher
result by CLP 1,284 million in Net financial expenses. |
| · | Income taxes reached CLP 6,652 million,
a 30.3% decrease, mostly explained by a lower taxable income. |
| · | Net income reached a gain of CLP 54,424
million, a 0.6% increase, explained by the reasons described above. |
PRESS RELEASE | |
| | |
|
HIGHLIGHTS OPERATING SEGMENTS SECOND QUARTER |
CHILE OPERATING
SEGMENT
In the Chile Operating segment, our top line
expanded 14.7%, boosted by a 9.5% growth in average prices and a 4.7% increase in volumes. The higher average prices were explained by
revenue management initiatives, partially offset by a negative mix effect in all the categories. Higher volumes were explained by our
main categories, showing resiliency in a challenging consumption environment. Gross profit expanded 30.4%, and Gross margin improved from
38.7% to 44.0%, due to top line performance and lower cost pressures, as COGS per hectoliter were stable versus last year. MSD&A expenses
grew 15.7%, and as percentage of Net sales were almost flat, where efficiencies helped us to partially offset an increase in distribution
costs from oil prices, and higher marketing expenses. In all, EBITDA reached CLP 44,106 million, growing 86.0%, and EBITDA margin increased
450 bps from 7.2% to 11.7%.
In terms of innovation, in line with the fifth
pillar of “HerCCUles 2023”, which aims focusing in high margin/volume innovations, we launched in beer “Patagonia blonde
lager”, a premium beer which comes to broad the successful Patagonia brand variety, and “Cristal Orígenes”, encompassing
three new varieties of Cristal with different styles for the north, center and south of Chile. Also, in terms of brands, our craft beer
“Kunstmann” was awarded as the most valued brand in beer by CHILE3D, the largest brand study in Chile.
Regarding sustainability initiatives, CCU was
distinguished among the 100 most responsible companies in the Merco Responsibility ESG Chile 2022 ranking, reaching 1st place in the beverage
sector for the fourth consecutive year. This ranking evaluates initiatives related to the environment, customers, community, and corporate
governance aspects. As a way to promote national sports and contribute to caring for the environment, our sport drink brand Gatorade participated
in the 15th version of the Maratón de Santiago, recycling almost 400,000 plastic cups (more than 2 million cups since the beginning
of this initiative) used by the participants to transform them into sports accessories, that will be donated to different municipalities
and sports corporations throughout the country. Finally, CCU was recognized for the fifth consecutive year by the HuellaChile program
for its positive actions in reducing greenhouse gas emissions.
INTERNATIONAL
BUSINESS OPERATING SEGMENT
In the International Business Operating segment,
which includes Argentina, Bolivia, Paraguay and Uruguay, Net sales recorded a 13.0% contraction, as a result of 19.6% lower average prices
in CLP, partially offset by an 8.1% expansion in volumes, the latter driven by Argentina, Uruguay and Paraguay. The lower average prices
were largely explained by a negative translation effect in Argentina, although in local currency they expanded in line with inflation
due to revenue management efforts. Gross profit contracted 11.3%, and Gross margin grew from 45.1% to 46.0%. MSD&A expenses decreased
13.4%, and as a percentage of Net sales were stable due to efficiencies, compensating higher inflation and other cost pressures. Altogether,
EBITDA reached CLP 1,875 million, increasing 74.9% from last year.
In Argentina, while we continue with the integration
of the distribution of our beer and water businesses, the distribution agreement that we had in some regions with two local Coca-Cola
bottlers expired in June. In those regions, we are implementing a new distribution network. At the same time, we are negotiating a potential
new distribution agreement with the Coca-Cola bottlers which could include some of the brands of our portfolio.
WINE
OPERATING SEGMENT
The Wine Operating segment continued facing a
tough business environment during the quarter. Revenues were down 14.9%, mostly explained by a 13.4% contraction in volumes and average
prices decreased 1.7%. The lower volume, just like in the first quarter, was mostly attributable to exports (20.8% decrease in our exports
from Chile; 29.0% contraction of the Chilean industry in the same quarter), while the Chile domestic market decreased mid-single digit,
also explained by a contraction in the industry. The lower average prices were mainly caused by the appreciation of the CLP against the
USD, impacting negatively export revenues, partially compensated with revenue management efforts. Consequently, Gross profit dropped 19.8%
and Gross margin decreased 214 bps from 36.9% to 34.7%. MSD&A expenses decreased 1.6% versus last year, and as a percentage of Net
sales increased 404 bps associated with a lower business scale. In all, EBITDA reached CLP 6,543 million, a 44.5% contraction.
In terms of innovation, during the quarter we
presented Misiones de Rengo Medium Sweet, launching three varieties of wine (Red blend, Sauvignon blanc and Cabernet sauvignon) with a
perfect balance of sweetness.
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 (Second Quarter 2023) |
| Second Quarter |
2023 |
2022 |
Total Change % |
| |
(CLP million) |
| Net sales |
574,242 |
558,503 |
2.8 |
| Cost of sales |
(324,826) |
(333,194) |
(2.5) |
| % of Net sales |
56.6 |
59.7 |
(309) bps |
| Gross profit |
249,415 |
225,308 |
10.7 |
| % of Net sales |
43.4 |
40.3 |
309 bps |
| MSD&A |
(235,689) |
(227,471) |
3.6 |
| % of Net sales |
41.0 |
40.7 |
31 bps |
| Other operating income/(expenses) |
(775) |
491 |
(257.8) |
| EBIT |
12,952 |
(1,671) |
>500 |
| EBIT margin % |
2.3 |
(0.3) |
255 bps |
| Net financial expenses |
(5,542) |
(10,513) |
(47.3) |
| Equity and income of JVs and associated |
(6,180) |
(3,837) |
61.1 |
| Foreign currency exchange differences |
(7,117) |
(11,430) |
(37.7) |
| Results as per adjustment units |
(3,533) |
(1,481) |
138.6 |
| Other gains/(losses) |
(2,874) |
13,517 |
(121.3) |
| Non-operating result |
(25,246) |
(13,744) |
83.7 |
| Income/(loss) before taxes |
(12,294) |
(15,415) |
(20.2) |
| Income taxes |
8,695 |
8,020 |
8.4 |
| Net income for the period |
(3,599) |
(7,395) |
(51.3) |
| |
|
|
|
| Net income attributable to: |
|
|
|
| The equity holders of the parent |
(3,943) |
(10,455) |
(62.3) |
| Non-controlling interest |
(345) |
(3,060) |
(88.7) |
| |
|
|
|
| EBITDA |
47,126 |
32,471 |
45.1 |
| EBITDA margin % |
8.2 |
5.8 |
239 bps |
| |
|
|
|
| OTHER INFORMATION |
|
|
|
| Number of shares |
369,502,872 |
369,502,872 |
|
| Shares per ADR |
2 |
2 |
|
| |
|
|
|
| Earnings per share (CLP) |
(10.7) |
(28.3) |
(62.3) |
| Earnings per ADR (CLP) |
(21.3) |
(56.6) |
(62.3) |
| |
|
|
|
| Depreciation |
34,174 |
34,142 |
0.1 |
| Capital Expenditures |
30,621 |
51,317 |
(40.3) |
PRESS RELEASE | |
| | |
| Exhibit 2: Consolidated Income Statement (Six months ended on June 30, 2023) |
| YTD as of June |
2023 |
2022 |
Total Change % |
| |
(CLP million) |
| Net sales |
1,306,272 |
1,258,968 |
3.8 |
| Cost of sales |
(701,912) |
(709,935) |
(1.1) |
| % of Net sales |
53.7 |
56.4 |
(266) bps |
| Gross profit |
604,361 |
549,033 |
10.1 |
| % of Net sales |
46.3 |
43.6 |
266 bps |
| MSD&A |
(486,892) |
(445,648) |
9.3 |
| % of Net sales |
37.3 |
35.4 |
188 bps |
| Other operating income/(expenses) |
(294) |
839 |
(135.1) |
| EBIT |
117,174 |
104,224 |
12.4 |
| EBIT margin % |
9.0 |
8.3 |
69 bps |
| Net financial expenses |
(15,600) |
(16,883) |
(7.6) |
| Equity and income of JVs and associated |
(9,999) |
(4,402) |
127.2 |
| Foreign currency exchange differences |
(11,445) |
(9,836) |
16.4 |
| Results as per adjustment units |
(5,189) |
(5,072) |
2.3 |
| Other gains/(losses) |
(10,326) |
4,525 |
(328.2) |
| Non-operating result |
(52,559) |
(31,668) |
66.0 |
| Income/(loss) before taxes |
64,615 |
72,555 |
(10.9) |
| Income taxes |
(6,652) |
(9,544) |
(30.3) |
| Net income for the period |
57,963 |
63,011 |
(8.0) |
| |
|
|
|
| Net income attributable to: |
|
|
|
| The equity holders of the parent |
54,424 |
54,089 |
0.6 |
| Non-controlling interest |
(3,538) |
(8,922) |
(60.3) |
| |
|
|
|
| EBITDA |
182,503 |
167,597 |
8.9 |
| EBITDA margin % |
14.0 |
13.3 |
66 bps |
| |
|
|
|
| OTHER INFORMATION |
|
|
|
| Number of shares |
369,502,872 |
369,502,872 |
|
| Shares per ADR |
2 |
2 |
|
| |
|
|
|
| Earnings per share (CLP) |
147.3 |
146.4 |
0.6 |
| Earnings per ADR (CLP) |
294.6 |
292.8 |
0.6 |
| |
|
|
|
| Depreciation |
65,329 |
63,373 |
3.1 |
| Capital Expenditures |
53,497 |
78,803 |
(32.1) |
PRESS RELEASE | |
| | |
| Exhibit 3: Segment Information (Second Quarter 2023) |
| |
1. Chile Operating segment |
|
2. International Business Operating segment |
|
3. Wine Operating segment |
| Second Quarter |
|
|
| (In ThHL or CLP million unless stated otherwise) |
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
| |
|
|
| Volumes |
4,818 |
4,601 |
4.7 |
|
1,732 |
1,602 |
8.1 |
|
356 |
411 |
(13.4) |
| Net sales |
376,378 |
328,283 |
14.7 |
|
142,512 |
163,889 |
(13.0) |
|
64,369 |
75,618 |
(14.9) |
| Net sales (CLP/HL) |
78,123 |
71,349 |
9.5 |
|
82,288 |
102,313 |
(19.6) |
|
180,882 |
183,950 |
(1.7) |
| Cost of sales |
(210,704) |
(201,239) |
4.7 |
|
(77,024) |
(90,037) |
(14.5) |
|
(42,015) |
(47,738) |
(12.0) |
| % of Net sales |
56.0 |
61.3 |
(532) bps |
|
54.0 |
54.9 |
(89) bps |
|
65.3 |
63.1 |
214 bps |
| Gross profit |
165,674 |
127,044 |
30.4 |
|
65,488 |
73,852 |
(11.3) |
|
22,355 |
27,880 |
(19.8) |
| % of Net sales |
44.0 |
38.7 |
532 bps |
|
46.0 |
45.1 |
89 bps |
|
34.7 |
36.9 |
(214) bps |
| MSD&A |
(139,867) |
(120,878) |
15.7 |
|
(73,856) |
(85,284) |
(13.4) |
|
(19,216) |
(19,522) |
(1.6) |
| % of Net sales |
37.2 |
36.8 |
34 bps |
|
51.8 |
52.0 |
(21) bps |
|
29.9 |
25.8 |
404 bps |
| Other operating income/(expenses) |
(1,004) |
130 |
<(500) |
|
38 |
201 |
(81.0) |
|
198 |
106 |
86.5 |
| EBIT |
24,802 |
6,297 |
293.9 |
|
(8,329) |
(11,230) |
(25.8) |
|
3,337 |
8,464 |
(60.6) |
| EBIT margin |
6.6 |
1.9 |
467 bps |
|
(5.8) |
(6.9) |
101 bps |
|
5.2 |
11.2 |
(601) bps |
| EBITDA |
44,106 |
23,711 |
86.0 |
|
1,875 |
1,072 |
74.9 |
|
6,543 |
11,788 |
(44.5) |
| EBITDA margin |
11.7 |
7.2 |
450 bps |
|
1.3 |
0.7 |
66 bps |
|
10.2 |
15.6 |
(542) bps |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
4. Other/eliminations |
|
Total |
|
|
|
|
| Second Quarter |
|
|
|
|
|
| (In ThHL or CLP million unless stated otherwise) |
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
|
|
|
|
| |
|
|
|
|
|
| Volumes |
(23) |
(47) |
(51.5) |
|
6,883 |
6,567 |
4.8 |
|
|
|
|
| Net sales |
(9,017) |
(9,287) |
(2.9) |
|
574,242 |
558,503 |
2.8 |
|
|
|
|
| Net sales (CLP/HL) |
|
|
|
|
83,430 |
85,041 |
(1.9) |
|
|
|
|
| Cost of sales |
4,916 |
5,819 |
(15.5) |
|
(324,826) |
(333,194) |
(2.5) |
|
|
|
|
| % of Net sales |
|
|
|
|
56.6 |
59.7 |
(309) bps |
|
|
|
|
| Gross profit |
(4,102) |
(3,468) |
18.3 |
|
249,415 |
225,308 |
10.7 |
|
|
|
|
| % of Net sales |
|
|
|
|
43.4 |
40.3 |
309 bps |
|
|
|
|
| MSD&A |
(2,750) |
(1,787) |
53.8 |
|
(235,689) |
(227,471) |
3.6 |
|
|
|
|
| % of Net sales |
|
|
|
|
41.0 |
40.7 |
31 bps |
|
|
|
|
| Other operating income/(expenses) |
(7) |
53 |
(113.3) |
|
(775) |
491 |
(257.8) |
|
|
|
|
| EBIT |
(6,859) |
(5,202) |
31.9 |
|
12,952 |
(1,671) |
>500 |
|
|
|
|
| EBIT margin |
|
|
|
|
2.3 |
(0.3) |
255 bps |
|
|
|
|
| EBITDA |
(5,398) |
(4,101) |
31.6 |
|
47,126 |
32,471 |
45.1 |
|
|
|
|
| EBITDA margin |
|
|
|
|
8.2 |
5.8 |
239 bps |
|
|
|
|
PRESS RELEASE | |
| | |
| Exhibit 4: Segment Information (Six months ended on June 30, 2023) |
| |
1. Chile Operating segment |
|
2. International Business Operating segment |
|
3. Wine Operating segment |
| YTD as of June |
|
|
| (In ThHL or CLP million unless stated otherwise) |
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
| |
|
|
| Volumes |
11,463 |
11,330 |
1.2 |
|
4,173 |
4,258 |
(2.0) |
|
645 |
763 |
(15.5) |
| Net sales |
864,196 |
786,767 |
9.8 |
|
339,899 |
352,437 |
(3.6) |
|
117,016 |
139,623 |
(16.2) |
| Net sales (CLP/HL) |
75,391 |
69,440 |
8.6 |
|
81,461 |
82,778 |
(1.6) |
|
181,345 |
182,930 |
(0.9) |
| Cost of sales |
(466,988) |
(458,159) |
1.9 |
|
(165,327) |
(178,758) |
(7.5) |
|
(77,777) |
(86,745) |
(10.3) |
| % of Net sales |
54.0 |
58.2 |
(420) bps |
|
48.6 |
50.7 |
(208) bps |
|
66.5 |
62.1 |
434 bps |
| Gross profit |
397,207 |
328,609 |
20.9 |
|
174,571 |
173,679 |
0.5 |
|
39,239 |
52,878 |
(25.8) |
| % of Net sales |
46.0 |
41.8 |
420 bps |
|
51.4 |
49.3 |
208 bps |
|
33.5 |
37.9 |
(434) bps |
| MSD&A |
(289,606) |
(245,228) |
18.1 |
|
(156,193) |
(160,904) |
(2.9) |
|
(35,773) |
(36,400) |
(1.7) |
| % of Net sales |
33.5 |
31.2 |
234 bps |
|
46.0 |
45.7 |
30 bps |
|
30.6 |
26.1 |
450 bps |
| Other operating income/(expenses) |
(861) |
(93) |
825.4 |
|
82 |
593 |
(86.1) |
|
317 |
252 |
25.6 |
| EBIT |
106,740 |
83,288 |
28.2 |
|
18,461 |
13,367 |
38.1 |
|
3,783 |
16,731 |
(77.4) |
| EBIT margin |
12.4 |
10.6 |
177 bps |
|
5.4 |
3.8 |
164 bps |
|
3.2 |
12.0 |
(875) bps |
| EBITDA |
143,867 |
117,156 |
22.8 |
|
37,683 |
34,268 |
10.0 |
|
10,039 |
23,258 |
(56.8) |
| EBITDA margin |
16.6 |
14.9 |
176 bps |
|
11.1 |
9.7 |
136 bps |
|
8.6 |
16.7 |
(808) bps |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
4. Other/eliminations |
|
Total |
|
|
|
|
| YTD as of June |
|
|
|
|
|
| (In ThHL or CLP million unless stated otherwise) |
2023 |
2022 |
YoY % |
|
2023 |
2022 |
YoY % |
|
|
|
|
| |
|
|
|
|
|
| Volumes |
(35) |
(91) |
(61.1) |
|
16,245 |
16,260 |
(0.1) |
|
|
|
|
| Net sales |
(14,838) |
(19,860) |
(25.3) |
|
1,306,272 |
1,258,968 |
3.8 |
|
|
|
|
| Net sales (CLP/HL) |
|
|
|
|
80,410 |
77,429 |
3.9 |
|
|
|
|
| Cost of sales |
8,181 |
13,727 |
(40.4) |
|
(701,912) |
(709,935) |
(1.1) |
|
|
|
|
| % of Net sales |
|
|
|
|
53.7 |
56.4 |
(266) bps |
|
|
|
|
| Gross profit |
(6,657) |
(6,133) |
8.5 |
|
604,361 |
549,033 |
10.1 |
|
|
|
|
| % of Net sales |
|
|
|
|
46.3 |
43.6 |
266 bps |
|
|
|
|
| MSD&A |
(5,321) |
(3,116) |
70.8 |
|
(486,892) |
(445,648) |
9.3 |
|
|
|
|
| % of Net sales |
|
|
|
|
37.3 |
35.4 |
188 bps |
|
|
|
|
| Other operating income/(expenses) |
168 |
86 |
94.0 |
|
(294) |
839 |
(135.1) |
|
|
|
|
| EBIT |
(11,810) |
(9,162) |
28.9 |
|
117,174 |
104,224 |
12.4 |
|
|
|
|
| EBIT margin |
|
|
|
|
9.0 |
8.3 |
69 bps |
|
|
|
|
| EBITDA |
(9,086) |
(7,085) |
28.2 |
|
182,503 |
167,597 |
8.9 |
|
|
|
|
| EBITDA margin |
|
|
|
|
14.0 |
13.3 |
66 bps |
|
|
|
|
PRESS RELEASE | |
| | |
| Exhibit 5: Balance Sheet |
| |
June 30 |
December 31 |
| |
2023 |
2022 |
| |
(CLP million) |
| ASSETS |
|
|
| Cash and cash equivalents |
591,015 |
597,082 |
| Other current assets |
908,917 |
1,064,867 |
| Total current assets |
1,499,932 |
1,661,948 |
| |
|
|
| PP&E (net) |
1,352,028 |
1,356,846 |
| Other non current assets |
586,142 |
576,284 |
| Total non current assets |
1,938,169 |
1,933,131 |
| Total assets |
3,438,102 |
3,595,079 |
| |
|
|
| LIABILITIES |
|
|
| Short term financial debt |
128,334 |
195,000 |
| Other liabilities |
465,128 |
602,153 |
| Total current liabilities |
593,462 |
797,152 |
| |
|
|
| Long term financial debt |
1,268,475 |
1,207,013 |
| Other liabilities |
165,142 |
154,944 |
| Total non current liabilities |
1,433,617 |
1,361,958 |
| Total Liabilities |
2,027,079 |
2,159,110 |
| |
|
|
| EQUITY |
|
|
| Paid-in capital |
562,693 |
562,693 |
| Other reserves |
(135,906) |
(90,712) |
| Retained earnings |
870,257 |
843,045 |
| Total equity attributable to equity holders of the parent |
1,297,045 |
1,315,026 |
| Non - controlling interest |
113,978 |
120,943 |
| Total equity |
1,411,023 |
1,435,969 |
| Total equity and liabilities |
3,438,102 |
3,595,079 |
| |
|
|
| OTHER FINANCIAL INFORMATION |
|
|
| |
|
|
| Total Financial Debt |
1,396,809 |
1,402,013 |
| |
|
|
| Net Financial Debt |
805,793 |
804,931 |
| |
|
|
| Liquidity ratio |
2.53 |
2.08 |
| Total Financial Debt / Capitalization |
0.50 |
0.49 |
| Net Financial Debt / EBITDA |
2.16 |
2.25 |
PRESS RELEASE | |
| | |
| Exhibit 6: Summary of the Statement of Cash Flow |
| |
2Q |
| |
2023 |
2022 |
| |
(CLP million) |
| Cash and cash equivalents at beginning of the period |
572,309 |
742,082 |
| Net cash inflows from operating activities |
53,449 |
(52,236) |
| Net cash (outflow) from investing activities |
(35,151) |
(78,068) |
| Net cash (outflow) flow from financing activities |
7,667 |
(46,641) |
| Net (decrease) increase in cash and cash equivalents |
25,965 |
(176,944) |
| Effects of exchange rate changes on cash and cash equivalents |
(7,259) |
78,861 |
| Increase (decrease) in cash and cash equivalents |
18,706 |
(98,083) |
| Cash and cash equivalents at end of the period |
591,015 |
643,999 |
| |
|
|
| |
As of June 30 of |
| |
2023 |
2022 |
| |
(CLP million) |
| Cash and cash equivalents at beginning of the year |
597,082 |
265,568 |
| Net cash inflows from operating activities |
147,074 |
(1,357) |
| Net cash (outflow) from investing activities |
(59,894) |
(103,301) |
| Net cash (outflow) flow from financing activities |
(39,870) |
438,278 |
| Net (decrease) increase in cash and cash equivalents |
47,310 |
333,620 |
| Effects of exchange rate changes on cash and cash equivalents |
(53,376) |
44,811 |
| Increase (decrease) in cash and cash equivalents |
(6,066) |
378,431 |
| Cash and cash equivalents at end of the period |
591,015 |
643,999 |
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: August 9, 2023
Compania Cervecerias Uni... (NYSE:CCU)
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