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
COMPANIA CERVECERIAS UNIDAS S.A.
(Exact name of Registrant as specified in its charter)
UNITED BREWERIES COMPANY, INC.
(Translation of Registrant's name into English)
Republic of Chile
(Jurisdiction of incorporation or organization)
Vitacura 2670, 23
rd
floor, Santiago, Chile
(Address of principal executive offices)
_________________________________________
Securities registered or to be registered pursuant to section 12(b) of the Act.
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Form 20-F
X
Form 40-F ___
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes ___ No
X
CCU REPORTS CONSOLIDATED THIRD QUARTER 2023 RESULTS
[1],[2]
Santiago, Chile, November 8, 2023
- CCUannounced today its consolidated financial and operating results for the
third quarter 2023, which ended September 30, 2023.
. Consolidated Volumes
decreased 5.1%. Volumevariation per Operating segment was as follows:
o Chile
(4.7)%
o International Business
(4.3)%
o Wine
(17.3)%
. Net sales
were up 0.4%
. Gross profit
increased 8.9%
. EBITDA
reached CLP 86,344 million, a 27.7%increase. EBITDA variation per Operating segment was as follows:
o Chile
38.7%
o International Business
30.2%
o Wine
(21.2)%
. Net income
reached a gain of CLP 9,499million versus a gain of CLP 17,226 million last year.
. Earnings per share
reached a gain of CLP25.7 per share.
Key figures 3Q23 3Q22 D YTD23 YTD22 D
% %
(In ThHL or CLP million unless stated otherwise)
Volumes 7,559 7,964 (5.1) 23,805 24,223 (1.7)
Net sales 686,677 684,106 0.4 1,992,949 1,943,073 2.6
Gross profit 318,315 292,391 8.9 922,675 841,424 9.7
EBIT 51,072 33,531 52.3 168,245 137,755 22.1
EBITDA 86,344 67,607 27.7 268,846 235,203 14.3
Net income 9,499 17,226 (44.9) 63,923 71,315 (10.4)
Earnings per share (CLP) 25.7 46.6 (44.9) 173.0 193.0 (10.4)
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[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 addup exactly to the total shown.
[2] All growth or variation references in this EarningsRelease refer to 3Q23
compared to 3Q22, unless otherwise stated.
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PRESS RELEASE
COMMENTS FROM THE CEO
During the third quarter 2023, CCU continued makingprogress to recover
financial results and profitability in a challenging and volatile economic
environment. The latter is shown at theoperational level, increasing
consolidated EBITDA by 27.7% and improving 269 bps the EBITDA margin from 9.9%
to 12.6%. The performanceof the quarter shows that the path to improve our
profitability under the regional plan "HerCCUles" is moving forward,
howeverstronger efforts are needed in a context of economic deceleration and
volatility in exchange rates and commodity prices. This drives usto keep
putting special focus on the pillars of "HerCCUles": (1) maintain business
scale, (2) strengthen revenue managementefforts, (3) deliver efficiency gains
through our Transformation program, (4) optimizing CAPEX and working capital,
(5) focusing on corebrands and high volume/margin innovations and (6) continue
investing in our brand equity.
In 3Q23, our revenues expanded 0.4%, explained by 5.1%decrease in volumes more
than offset by a 5.7% expansion in average prices in CLP. Lower volumes were
caused by a weaker consumption inChile and Argentina, while holding market
share, and a contraction in wine exports. The higher average prices in CLP
were a consequenceof revenue management efforts across all our Operating
segments. Gross profit jumped 8.9%, and Gross margin rose 362 bps, from 42.7%
to46.4%, the latter explained by the higher average prices and flat average
COGS versus last year. MSD&A expenses increased 2.9%, andas a percentage of
Net Sales grew 94 bps, mainly as a consequence of higher marketing activities,
the latter to keep enhancing brand equity.In all, EBITDA reached CLP 86,344
million, up by 27.7%. Net income dropped 44.9%, totalizing a gain of CLP 9,499
million, versus a gainof CLP 17,226 million last year. The reduction of net
income was mostly explained by two effects in Argentina: (i) a higher loss in
Foreigncurrency exchange differences by CLP 8,818
[3]
million from the sharp devaluation of theARS during the quarter, and (ii) CLP
8,665
3
million of non-recurring expenses related with the route-to-market
integrationof our JV in Argentina with Aguas Danone into our operation.
Isolating the aforementioned effects, Net income would have increased25.3%.
In terms of cash generation, we delivered another robustquarter. Thus, as of
September 2023 Net cash inflow from operating activities totalized CLP 205,681
million versus a negative cash inflowof CLP 21,871 million in 2022, while Net
cash (outflow) from investing activities reached CLP 111,051 million,
decreasing from the CLP175,168 million during the same period in 2022. In
addition, we have decreased our portfolio complexity and recorded strong brand
equityindicators, being key to hold market share in our main categories.
In the Chile Operating segment, our top line expanded5.1%, explained by 4.7%
decrease in volumes being more than offset by a 10.2% growth in average
prices. The higher average prices wereexplained by revenue management
initiatives. Lower volumes were explained by a challenging consumption
environment, although in line withthe industry as market shares remained
stable. Gross profit expanded 17.4%, and Gross margin improved from 40.1% to
44.8%, due to topline performance and lower cost pressures. MSD&A expenses
were 12.3% higher, and as percentage of Net sales grew 237 bps from 34.6%to
37.0%, mostly due to higher marketing activities. In all, EBITDA reached CLP
52,618 million, growing 38.7%, and EBITDA margin increased320 bps from 10.0%
to 13.2%.
In the International Business Operating segment, whichincludes Argentina,
Bolivia, Paraguay and Uruguay, Net sales recorded a 2.4% contraction in CLP,
as a result of 4.3% drop in volumes,partially offset by 2.0% increase in
average prices in CLP. Volumes were negatively impacted by a weaker
consumption environment in Argentina,partially compensated by volume expansion
in all the other geographies. Gross profit expanded 1.1%, and Gross margin
grew from 48.5% to50.2%. MSD&A expenses decreased 6.0%, and as a percentage of
Net sales improved 167 bps due to efficiencies, compensating higher
inflationand other cost pressures. Altogether, EBITDA reached CLP 25,785
million, a 30.2% expansion from last year.
The Wine Operating segment continued facing a toughbusiness environment during
the quarter. Revenues were down 14.7%, mostly explained by a 17.3% contraction
in volumes, while average pricesincreased 3.1%, due to revenue management in
the domestic markets, partially compensated with negative mix effects. The
lower volume wasexplained by both, a 14.4% fall in exports from Chile (29.9%
contraction of the Chilean industry
[4]
),and a 14.8% drop in the Chile domestic market. Gross profit dropped 8.1% but
Gross margin improved 296 bps from 38.0% to 40.9%, due tohigher average prices
and a decrease in COGS per liter, due to a more favorable cost of wine. MSD&A
expenses were flat versus lastyear, and as a percentage of Net sales increased
429 bps associated with a lower business scale. In all, EBITDA reached CLP
11,606 million,a 21.2% contraction.
In terms of our main JVs and associated businesses,in Argentina, volumes from
our water business decreased low-double digit, mainly impacted by a
challenging consumption environment. Also,we successfully continued with the
route-to-market integration of this business. In Colombia volumes contracted
low-single digit.
During 3Q23, we continued making progress to recoverour financial results and
profitability in a challenging and volatile economic context. Our initiatives
under "HerCCUles"are showing positive outcomes through the year, allowing us
to recover our operational results, hold business scale and market
shares,improve margins, and strengthening our cash generation. Nonetheless, we
are aware that more efforts are needed to improve profitabilityfurther,
especially when the business scenario will remain challenging. In order to do
so, we will keep executing our strategy to deliverprofitable and sustainable
growth.
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[3] Figures before taxes.
[4] According to ODEPA, which stands for Oficina de Estudios y PoliticasAgrarias
, in Chile.
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PRESS RELEASE
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS - THIRD QUARTER
(Exhibit 1 & 2)
. Net sales
were practically flat versuslast year by growing 0.4%, driven by 5.7%
higher prices in CLP being almost fully offset by a 5.1% contraction
in volumes. In terms ofaverage prices, the expansion was explained by:
(i) a 10.2% growth in the Chile Operating segment, driven by revenue
management initiatives,(ii) a 2.0% increase in the International Business
Operating segment, largely explained by revenue management initiatives
in Argentina,partially offset by negative mix effects, and (iii) a 3.1%
increase in the Wine Operating segment, mainly associated with revenue
managementinitiatives in our domestic markets, partially offset by negative
mix. Regarding volume growth, the performance by Operating segment
wasas follows: (i) 4.7% contraction in the Chile Operating segment
due to a challenging consumption environment, (ii) 4.3% decrease in
theInternational Business Operating segment, driven by a weaker demand in
Argentina, partially offset by volume growth in all the other geographies,and
(iii) a 17.3% decrease in the Wine Operating segment, mostly attributable
to exports from Chile and a decrease in our domestic markets.
. Cost of sales
was down 6.0%, explainedby a 0.9% contraction in Cost of sales per hectoliter and the mentioned decrease in
volumes. The Chile Operating segment reported 1.6%increase in Cost of sales per hectoliter driven by cost pressure
in some raw materials, especially sugar and carryover inventories ofmalt, and a lower dilution on fixed
manufacturing costs from lower volumes. This was partially compensated by a lower cost in aluminum,and the 8.2%
[5]
appreciation of the CLP against the USD, impacting positively our USDdenominated
costs. In the International Business Operating segment, the Cost of sales
per hectoliter contracted 1.4% in CLP, mostly drivenby a translation effect,
as in local currency Cost of sales per hectoliter grew due to the 137.6%
[6]
depreciation of the ARS against the USD, and its
negative impact on USD-denominated costs. In the Wine
Operating segment, the Cost ofsales per hectoliter
contracted 1.9%, due to a more favorable cost of wine.
. Gross profit
reached CLP 318,315 million,an 8.9% expansion. Gross margin improved 362 bps, from 42.7% to 46.4%.
. MSD&A expenses
were up 2.9% and aspercentage of Net sales, increased 94 bps from 38.0%
to 38.9%, as a consequence of higher marketing activities, the latter to
keep enhancingbrand equity. In the Chile Operating segment, MSD&A expenses
expanded 12.3%, and as a percentage of Net sales increased 237 bps. Inthe
International Business Operating segment, MSD&A expenses in CLP were down
6.0%, and as a percentage of Net sales decreased 167bps. In the Wine
Operating segment, MSD&A expenses were practically flat, while as a
percentage of Net sales rose 429 bps associatedwith a lower business scale.
. EBIT
reached a gain of CLP 51,072 million,an expansion of 52.3% versus last year, mainly due to higher revenues,
boosted by higher average prices as a consequence of revenue managementinitiatives, and lower cost pressures.
. EBITDA
was up 27.7%, mostly driven by an38.7% increase in the Chile Operating segment, and the
International Business Operating segment growing by 30.2%. These better resultswere partially
offset by the Wine Operating segment, which is facing a particularly challenging business
environment, which decreased21.2%. EBITDA margin expanded 269 bps, from 9.9% to 12.6%.
. Non-operating result
totalized a loss ofCLP 42,638 million, which compares with a negative result of CLP 24,316 million last year. The
higher loss was explained by: (i) a higherloss by CLP 16,389 million in Foreign currency exchange differences, of
which CLP 8,818 million are explained by Argentina from the sharpdevaluation of the ARS, (ii) a higher loss in Equity
and income of JVs and associated by CLP 8,214 million, mostly associated with theroute-to-market integration of
our JV in Argentina with Aguas Danone into our operation, and (iii) lower result in Results as per adjustmentunits
by CLP 5,334 million. These effects were partially compensated by: (i) a lower loss by CLP 7,880 million in Net
financial expenses,mainly due to higher Interest income associated with more favorable interest rates, and (ii) a
higher result in Other gains/(losses) byCLP 3,734 million, mostly explained by a better result in derivative contracts
[7]
.
. Income taxes
reached a gain of CLP 4,227million versus a gain of CLP 10,185 million last year. The
lower gain was associated with a worse result on Tax effect of permanent differences,net
[8]
.
. Net income
reached a gain of CLP 9,499million, a 44.9% contraction when compared
with a gain of CLP 17,226 million recorded last year. The reduction
of Net income was mostlyexplained by two effects in Argentina: (i) a
higher loss in Foreign currency exchange differences by CLP 8,818
3
million fromthe sharp devaluation of the
ARS during the quarter, and (ii) CLP 8,665
3
millionof non-recurring expenses related with the
route-to-market integration of our JV in Argentina with
Aguas Danone into our operation.Isolating the aforementioned
effects, Net income would have increased 25.3%.
-------------------------------------------------------------------------------
[5] The CLP currency variation against the USD considers 2023 average ofperiod
(aop) compared with 2022 (aop).
[6] The ARS currency variation against the USD considers 2023 end of
period(eop) compared with 2022 (eop).
[7] See Note 32 Other Gain/(Losses) of our Financial Statements as of
September2023.
[8] See Note 25 Income taxes of our Financial Statements as of September2023.
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PRESS RELEASE
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS - 9 MONTHS YEAR TO DATE
(Exhibit 2 & 4)
. Net sales
were up 2.6%, fully explainedby 4.4% higher average prices in CLP while volumes declined 1.7%. The higher average
prices in CLP were largely explained by the 9.0%growth in the Chile Operating segment, due to the implementation
of revenue management initiatives, partially compensated by negativemix effects. Average prices expanded 0.6%
in the Wine Operating segment, and in the International Business Operating segment contractedslightly by 0.3%,
explained by negative translation effects in Argentina, as in local currency prices grew due to revenue management
efforts.Volumes were down 1.7%, driven by a 0.7% drop in the Chile Operating segment, a 2.8% decrease in
the International Business Operatingsegment, highly concentrated in Argentina, due to a weaker consumption, and
a 16.1% drop in the Wine Operating segment, the latter mainlydue to a challenging scenario for wine exports.
. Cost of sales
was down 2.8%, mainly explainedby a 1.1% decrease in Cost of sales per hectoliter and the lower
volumes. The Chile Operating segment reported a 0.9% growth in Cost ofsales per hectoliter,
driven by higher costs in some raw materials, mainly sugar and carryover inventories of malt,
partially compensatedwith lower costs in aluminum, efficiencies in manufacturing, and the 4.4%
3
appreciation of the CLP against the USD, impactingpositively our USD denominated costs.
In the International Business Operating segment, the Cost of sales per hectoliter
contracted 4.1%in CLP, mostly explained by a translation effect in Argentina, as in
local currency Cost of sales per hectoliter expanded, mostly drivenby the 137.6%
4
depreciation of the ARS against the USD, and its
negative impact on USD-denominated costs. In the Wine
Operatingsegment, the Cost of sales per hectoliter
grew 3.1%, due to higher costs in packaging materials.
. Gross profit
reached CLP 922,675 million,a 9.7% expansion. Gross margin expanded 299
bps, from 43.3% to 46.3%, as a consequence of the effects described above.
. MSD&A
expenses were up 6.9%, and aspercentage of Net sales, grew 153 bps, from 36.3% to 37.8%.
The latter was mostly caused by higher distribution costs, mostly as a consequenceof
higher oil prices and higher marketing activities to enhance brand equity. The performance
by segment was as follows: In the ChileOperating segment, MSD&A expenses expanded
16.1%, and as a percentage of Net sales increased 232 bps. In the International
BusinessOperating segment MSD&A expenses in CLP were down 4.1%, and as a percentage of Net
sales decreased 49 bps. In the Wine Operating segment,MSD&A expenses decreased 1.1%,
and as a percentage of Net sales grew 441 bps associated with a lower business scale.
. EBIT
reached CLP 168,245 million, an expansionof 22.1%, mainly due to higher revenues, boosted by
higher average prices as a consequence of revenue management initiatives, and lowercost pressures.
. EBITDA
reached CLP 268,846 million, a 14.3%increase, driven by 26.7% expansion in the Chile Operating
segment and 17.4% jump in the International Business Operating segment expanded.The latter was
partially offset by the Wine Operating segment which decreased EBITDA by 43.0%, as a consequence of
a challenging yearfor exports. In addition, EBITDA margin improved 139 bps, from 12.1% to 13.5%.
. Non-operating result
totalized a loss ofCLP 95,197 million versus a negative result of CLP
55,985 million last year. The higher loss was explained by: (i) a higher
loss by CLP17,997 million in Foreign currency exchange differences, mostly
concentrated in Argentina, (ii) a lower result in Equity and income
ofJVs and associated by CLP 13,811 million, mainly associated with the
route-to-market integration of our JV in Argentina with Aguas Danoneinto
our operation, (iii) a higher loss in Other gains/(losses) by CLP 11,117
million, mostly explained by a lower result in derivativecontracts
7
, and (iv) a higher loss in Results
as per adjustment units by CLP
5,451 million. These effects were
partially compensatedby a higher
result by CLP 9,163 million in Net
financial expenses mainly due to
higher Interest income associated
with more favorableinterest rates.
. Income taxes
reached a loss of CLP 2,426million versus a gain of CLP 641 million last year,
attributable to a worse result on Tax effect of permanent differences, net
8
.
. Net income
reached a gain of CLP 63,923million, a 10.4% decrease, explained by the reasons described above.
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PRESS RELEASE
HIGHLIGHTS OPERATING SEGMENTS THIRD QUARTER
CHILE OPERATINGSEGMENT
In the Chile Operating segment, our top lineexpanded 5.1%, explained by 4.7%
decrease in volumes being more than offset by a 10.2% growth in average
prices. The higher average priceswere explained by revenue management
initiatives. Lower volumes were explained by a challenging consumption
environment, although in linewith the industry as market shares remained
stable. Gross profit expanded 17.4%, and Gross margin improved from 40.1% to
44.8%, due totop line performance and lower cost pressures. MSD&A expenses
were 12.3% higher, and as percentage of Net sales grew 237 bps from34.6% to
37.0%, mostly due to higher marketing activities. In all, EBITDA reached CLP
52,618 million, growing 38.7%, and EBITDA marginincreased 320 bps from 10.0%
to 13.2%.
In terms of innovation, in line with the fifthpillar of "HerCCUles", which
aims focusing in core brands and high margin/volume innovations, we launched
Royal Guard GoldenLager, continue expanding the successful portfolio of Royal
Guard.
Regarding sustainability initiatives and alignedwith our commitment to a
circular economy, we continued moving forward in the construction of our
unprecedented PET recycling plant, whichwe named "CirCCUlar". We expect this
facility will be operating during 2024, with a capacity to process 18,000 tons
of PETyearly, enabling us to recycle around 870 million bottles per year.
"CirCCUlar" will have cutting-edge technology and certifiedrenewable energy,
aligned to our sustainability goals and strategy.
INTERNATIONALBUSINESS OPERATING SEGMENT
In the International Business Operating segment,which includes Argentina,
Bolivia, Paraguay and Uruguay, Net sales recorded a 2.4% contraction in CLP,
as a result of 4.3% drop in volumes,partially offset by 2.0% increase in
average prices in CLP. Volumes were negatively impacted by a weaker
consumption environment in Argentina,partially compensated by volume expansion
in all the other geographies. Gross profit expanded 1.1%, and Gross margin
grew from 48.5% to50.2%. MSD&A expenses decreased 6.0%, and as a percentage of
Net sales improved 167 bps due to efficiencies, compensating higher
inflationand other cost pressures. Altogether, EBITDA reached CLP 25,785
million, a 30.2% expansion from last year.
In Bolivia, we strengthened our beer portfolioby successfully launching the
global beer brand Amstel. In Colombia, we renewed the image of our mainstream
local beer brand Andina.
WINEOPERATING SEGMENT
The Wine Operating segment continued facing atough business environment during
the quarter. Revenues were down 14.7%, mostly explained by a 17.3% contraction
in volumes, while averageprices increased 3.1%, due to revenue management in
the domestic markets, partially compensated with negative mix effects. The
lower volumewas explained by both a 14.4% fall in exports from Chile (29.9%
contraction of the Chilean industry
4
), and a 14.8% drop inthe Chile domestic market. Gross profit dropped 8.1% but
Gross margin improved 296 bps from 38.0% to 40.9%, due to higher average
pricesand a decrease in COGS per liter, due to a more favorable cost of wine.
MSD&A expenses were flat versus last year, and as a percentageof Net sales
increased 429 bps associated with a lower business scale. In all, EBITDA
reached CLP 11,606 million, a 21.2% contraction.
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PRESS RELEASE
ADDITIONAL INFORMATION AND EXHIBITS
ABOUT CCU
CCU is a multi-categorybeverage company with operations in Chile, Argentina,
Bolivia, Colombia, Paraguay and Uruguay. CCU is one of the largest players in
eachone of the beverage categories in which it participates in Chile,
including beer, soft drinks, mineral and bottled water, nectar, wineand 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 inthe malt industry. The Company's principal
licensing, distribution and / or joint venture agreements include Heineken
BrouwerijenB.V., PepsiCo Inc., Seven-up International, Schweppes Holdings
Limited, Societe des Produits Nestle S.A., PernodRicard Chile S.A., Promarca
S.A. (Watt's), Red Bull Panama S.A., Stokely Van Camp Inc., and Coors Brewing
Company.
CORPORATE HEADQUARTERS
Vitacura 2670,26th floor
Santiago
Chile
STOCK TICKER
Bolsa de Comerciode Santiago: CCU
NYSE: CCU
CAUTIONARY STATEMENT
Statements madein this press release that relate to CCU's future performance
or financial results are forward-looking statements, which involveknown and
unknown risks and uncertainties that could cause actual performance or results
to materially differ. We undertake no obligationto update any of these
statements. Persons reading this press release are cautioned not to place
undue reliance on these forward-lookingstatements. These statements should be
taken in conjunction with the additional information about risk and
uncertainties set forth inCCU's annual report on Form 20-F filed with the US
Securities and Exchange Commission and in the annual report submitted to
theCMF (Chilean Market Regulator) and available on our web page.
GLOSSARY
Operating segments
The Operating segments are defined with respect toits 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, ComercialCCU S.A., Creccu S.A. and Fabrica de Envases Plasticos S.A.
. International Business
: This segment commercializesBeer, Cider, Wine, Non-Alcoholic Beverages and Spirits in Argentina, Uruguay, Paraguay and Bolivia.
. Wine
: This segment commercializes Wineand 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-allocatedcorporate overhead expenses and eliminations of transactions and volumes between segments.
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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 ofshares during the year.
EBIT
Earnings Before Interest and Taxes. For managementpurposes, EBIT is defined as
Net income before other gains (losses), net financial expenses, equity and
income of joint ventures, foreigncurrency exchange differences, results as per
adjustment units and income taxes. EBIT is equivalent to Adjusted Operating
Result usedin 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 EBITDAmay not be comparable to similarly titled indicators
used by other companies. EBITDA is equivalent to ORBDA (Adjusted Operating
ResultBefore 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 arepresented separately because they are
important for the understanding of the underlying sustainable performance of
the Company due totheir size or nature.
Gross profit
Gross profit represents the difference betweenNet 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 Administrativeexpenses (MSD&A)
MSD&A includes marketing, sales, distributionand administrative expenses.
Net Financial Debt
Total Financial Debt minus Cash & Cash Equivalents.
Net Financial Debt / EBITDA
The ratio is based on a twelve month rollingcalculation for EBITDA.
Net income
Net income attributable to the equity holdersof the parent.
UF
The UF is a monetary unit indexed to the ConsumerPrice Index variation in Chile.
USD
United States Dollar.
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PRESS RELEASE
Exhibit 1: Consolidated Income Statement (Third Quarter 2023)
Third Quarter 2023 2022 Total Change %
(CLP million)
Net sales 686,677 684,106 0.4
Cost of sales (368,362) (391,714) (6.0)
% of Net sales 53.6 57.3 (362) bps
Gross profit 318,315 292,391 8.9
% of Net sales 46.4 42.7 362 bps
MSD&A (267,407) (259,956) 2.9
% of Net sales 38.9 38.0 94 bps
Other operating income/(expenses) 164 1,096 (85.0)
EBIT 51,072 33,531 52.3
EBIT margin % 7.4 4.9 254 bps
Net financial expenses (10,815) (18,695) (42.2)
Equity and income of JVs and associated (11,709) (3,495) 235.0
Foreign currency exchange differences (24,485) (8,096) 202.4
Results as per adjustment units (693) 4,641 (114.9)
Other gains/(losses) 5,063 1,329 281.0
Non-operating result (42,638) (24,316) 75.3
Income/(loss) before taxes 8,434 9,215 (8.5)
Income taxes 4,227 10,185 (58.5)
Net income for the period 12,660 19,400 (34.7)
Net income attributable to:
The equity holders of the parent 9,499 17,226 (44.9)
Non-controlling interest (3,161) (2,174) 45.4
EBITDA 86,344 67,607 27.7
EBITDA margin % 12.6 9.9 269 bps
OTHER INFORMATION
Number of shares 369,502,872 369,502,872
Shares per ADR 2 2
Earnings per share (CLP) 25.7 46.6 (44.9)
Earnings per ADR (CLP) 51.4 93.2 (44.9)
Depreciation 35,272 34,075 3.5
Capital Expenditures 46,147 69,647 (33.7)
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PRESS RELEASE
Exhibit 2: Consolidated Income Statement (Nine months ended on September 30, 2023)
YTD as of September 2023 2022 Total Change %
(CLP million)
Net sales 1,992,949 1,943,073 2.6
Cost of sales (1,070,274) (1,101,649) (2.8)
% of Net sales 53.7 56.7 (299) bps
Gross profit 922,675 841,424 9.7
% of Net sales 46.3 43.3 299 bps
MSD&A (754,300) (705,604) 6.9
% of Net sales 37.8 36.3 153 bps
Other operating income/(expenses) (130) 1,935 (106.7)
EBIT 168,245 137,755 22.1
EBIT margin % 8.4 7.1 135 bps
Net financial expenses (26,415) (35,578) (25.8)
Equity and income of JVs and associated (21,708) (7,897) 174.9
Foreign currency exchange differences (35,929) (17,932) 100.4
Results as per adjustment units (5,882) (431) >500
Other gains/(losses) (5,263) 5,854 (189.9)
Non-operating result (95,197) (55,985) 70.0
Income/(loss) before taxes 73,048 81,771 (10.7)
Income taxes (2,426) 641 (478.5)
Net income for the period 70,623 82,411 (14.3)
Net income attributable to:
The equity holders of the parent 63,923 71,315 (10.4)
Non-controlling interest (6,699) (11,096) (39.6)
EBITDA 268,846 235,203 14.3
EBITDA margin % 13.5 12.1 139 bps
OTHER INFORMATION
Number of shares 369,502,872 369,502,872
Shares per ADR 2 2
Earnings per share (CLP) 173.0 193.0 10.4
Earnings per ADR (CLP) 346.0 386.0 10.4
Depreciation 100,601 97,448 3.2
Capital Expenditures 99,644 148,451 (32.9)
Page
9
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PRESS RELEASE
Exhibit 3: Segment Information (Third Quarter 2023)
1. Chile Operating 2. International Business 3. Wine Operating
segment Operating segment segment
Third Quarter
(In ThHL or CLP million 2023 2022 YoY % 2023 2022 YoY % 2023 2022 YoY %
unless stated otherwise)
Volumes 5,039 5,285 (4.7) 2,187 2,286 (4.3) 361 437 (17.3)
Net sales 398,550 379,319 5.1 227,379 232,995 (2.4) 72,380 84,893 (14.7)
Net sales 79,101 71,767 10.2 103,957 101,925 2.0 200,317 194,377 3.1
(CLP/HL)
Cost of (219,977) (227,167) (3.2) (113,270) (120,091) (5.7) (42,762) (52,666) (18.8)
sales
% of Net 55.2 59.9 (469) bps 49.8 51.5 (173) bps 59.1 62.0 (296) bps
sales
Gross 178,573 152,152 17.4 114,109 112,904 1.1 29,618 32,227 (8.1)
profit
% of Net 44.8 40.1 469 bps 50.2 48.5 173 bps 40.9 38.0 296 bps
sales
MSD&A (147,453) (131,347) 12.3 (99,375) (105,711) (6.0) (21,036) (21,031) 0.0
% of Net 37.0 34.6 237 bps 43.7 45.4 (167) bps 29.1 24.8 429 bps
sales
Other operating 271 (43) >500 (101) 529 (119.2) (153) 227 (167.7)
income/(expenses)
EBIT 31,391 20,762 51.2 14,633 7,722 89.5 8,428 11,422 (26.2)
EBIT margin 7.9 5.5 240 bps 6.4 3.3 312 bps 11.6 13.5 (181) bps
EBITDA 52,618 37,947 38.7 25,785 19,800 30.2 11,606 14,733 (21.2)
EBITDA 13.2 10.0 320 bps 11.3 8.5 284 bps 16.0 17.4 (132) bps
margin
4. Total
Other/eliminations
Third Quarter
(In ThHL or CLP million 2023 2022 YoY % 2023 2022 YoY %
unless stated otherwise)
Volumes (28) (44) (37.5) 7,559 7,964 (5.1)
Net sales (11,631) (13,101) (11.2) 686,677 684,106 0.4
Net sales 90,838 85,902 5.7
(CLP/HL)
Cost of 7,646 8,209 (6.9) (368,362) (391,714) (6.0)
sales
% of Net 53.6 57.3 (362) bps
sales
Gross (3,985) (4,892) (18.5) 318,315 292,391 8.9
profit
% of Net 46.4 42.7 362 bps
sales
MSD&A 456 (1,867) (124.5) (267,407) (259,956) 2.9
% of Net 38.9 38.0 94 bps
sales
Other operating 148 384 (61.5) 164 1,096 (85.0)
income/(expenses)
EBIT (3,380) (6,375) (47.0) 51,072 33,531 52.3
EBIT margin 7.4 4.9 254 bps
EBITDA (3,666) (4,874) (24.8) 86,344 67,607 27.7
EBITDA 12.6 9.9 269 bps
margin
Page
10
of 13
PRESS RELEASE
Exhibit 4: Segment Information (Nine months ended on September 30, 2023)
1. Chile Operating 2. International Business 3. Wine Operating
segment Operating segment segment
YTD as of September
(In ThHL or CLP million 2023 2022 YoY % 2023 2022 YoY % 2023 2022 YoY %
unless stated otherwise)
Volumes 16,501 16,616 (0.7) 6,360 6,544 (2.8) 1,007 1,200 (16.1)
Net sales 1,262,745 1,166,086 8.3 567,277 585,432 (3.1) 189,396 224,516 (15.6)
Net sales 76,523 70,180 9.0 89,198 89,467 (0.3) 188,155 187,096 0.6
(CLP/HL)
Cost of (686,965) (685,326) 0.2 (278,597) (298,849) (6.8) (120,539) (139,410) (13.5)
sales
% of Net 54.4 58.8 (437) bps 49.1 51.0 (194) bps 63.6 62.1 155 bps
sales
Gross 575,780 480,761 19.8 288,680 286,583 0.7 68,857 85,105 (19.1)
profit
% of Net 45.6 41.2 437 bps 50.9 49.0 194 bps 36.4 37.9 (155) bps
sales
MSD&A (437,059) (376,575) 16.1 (255,568) (266,615) (4.1) (56,809) (57,431) (1.1)
% of Net 34.6 32.3 232 bps 45.1 45.5 (49) bps 30.0 25.6 441 bps
sales
Other operating (590) (136) 332.7 (19) 1,122 (101.7) 164 479 (65.8)
income/(expenses)
EBIT 138,131 104,050 32.8 33,093 21,090 56.9 12,211 28,153 (56.6)
EBIT margin 10.9 8.9 202 bps 5.8 3.6 223 bps 6.4 12.5 (609) bps
EBITDA 196,485 155,103 26.7 63,468 54,068 17.4 21,645 37,991 (43.0)
EBITDA 15.6 13.3 226 bps 11.2 9.2 195 bps 11.4 16.9 (549) bps
margin
4. Total
Other/eliminations
YTD as of September
(In ThHL or CLP million 2023 2022 YoY % 2023 2022 YoY %
unless stated otherwise)
Volumes (63) (136) (53.4) 23,805 24,223 (1.7)
Net sales (26,469) (32,961) (19.7) 1,992,949 1,943,073 2.6
Net sales 83,721 80,214 4.4
(CLP/HL)
Cost of 15,827 21,936 (27.8) (1,070,274) (1,101,649) (2.8)
sales
% of Net 53.7 56.7 (299) bps
sales
Gross (10,641) (11,025) (3.5) 922,675 841,424 9.7
profit
% of Net 46.3 43.3 299 bps
sales
MSD&A (4,865) (4,983) (2.4) (754,300) (705,604) 6.9
% of Net 37.8 36.3 153 bps
sales
Other operating 315 470 (32.9) (130) 1,935 (106.7)
income/(expenses)
EBIT (15,191) (15,537) (2.2) 168,245 137,755 22.1
EBIT margin 8.4 7.1 135 bps
EBITDA (12,752) (11,959) 6.6 268,846 235,203 14.3
EBITDA 13.5 12.1 139 bps
margin
Page
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PRESS RELEASE
Exhibit 5: Balance Sheet
September 30 December 31
2023 2022
(CLP million)
ASSETS
Cash and cash equivalents 626,526 597,082
Other current assets 1,002,884 1,064,867
Total current assets 1,629,410 1,661,948
PP&E 1,381,696 1,356,846
(net)
Other non current assets 600,647 576,284
Total non current assets 1,982,344 1,933,131
Total assets 3,611,753 3,595,079
LIABILITIES
Short term financial debt 128,352 195,000
Other liabilities 559,076 602,153
Total current liabilities 687,428 797,152
Long term financial debt 1,286,542 1,207,013
Other liabilities 174,071 154,944
Total non current liabilities 1,460,614 1,361,958
Total Liabilities 2,148,042 2,159,110
EQUITY
Paid-in capital 562,693 562,693
Other reserves (91,628) (90,712)
Retained earnings 875,007 843,045
Total equity attributable to equity holders of the parent 1,346,072 1,315,026
Non - controlling interest 117,640 120,943
Total equity 1,463,712 1,435,969
Total equity and liabilities 3,611,753 3,595,079
OTHER FINANCIAL INFORMATION
Total Financial Debt 1,414,895 1,402,013
Net Financial Debt 788,369 804,931
Liquidity ratio 2.37 2.08
Total Financial Debt / Capitalization 0.49 0.49
Net Financial Debt / EBITDA 2.01 2.25
Page
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PRESS RELEASE
Exhibit 6: Summary of the Statement of Cash Flow
3Q
2023 2022
(CLP million)
Cash and cash equivalents at beginning of the period 591,015 643,999
Net cash inflows from operating activities 58,608 (20,514)
Net cash (outflow) from investing activities (51,157) (71,868)
Net cash (outflow) flow from financing activities (19,060) 77,267
Net (decrease) increase in cash and cash equivalents (11,610) (15,114)
Effects of exchange rate changes on cash and cash equivalents 47,120 6,599
Increase (decrease) in cash and cash equivalents 35,510 (8,515)
Cash and cash equivalents at end of the period 626,526 635,484
As of September 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 205,681 (21,871)
Net cash (outflow) from investing activities (111,051) (175,168)
Net cash (outflow) flow from financing activities (58,930) 515,545
Net (decrease) increase in cash and cash equivalents 35,700 318,505
Effects of exchange rate changes on cash and cash equivalents (6,256) 51,411
Increase (decrease) in cash and cash equivalents 29,444 369,916
Cash and cash equivalents at end of the period 626,526 635,484
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.
Compania Cervecerias Unidas S.A.
(United Breweries Company, Inc.)
/s/ Felipe Dubernet
Chief Financial Officer
Date: November 8, 2023
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