6-K 1 ccupr1q10_6k.htm CCU S.A. REPORTS CONSOLIDATED FIRST QUARTER RESULTS ccupr1q10_6k.htm - Provided by MZ Technologies

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, 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

Attached is a press release of the Company dated May 27, 2010.



FOR IMMEDIATE RELEASE
For more information contact:
Rosita Covarrubias / Carolina Burgos
Investor Relations Department
Compañía Cervecerías Unidas S.A.
www.ccu-sa.com; www.ccu.cl
(56-2) 427-3581 / (56-2) 427-3104

CCU S.A. REPORTS CONSOLIDATED FIRST QUARTER RESULTS (1)

FIRST QUARTER 2010
Net profit(2) down 22.7% to Ch$105.7 per share
Net sales up 0.9%, Operating result increases 2.2%, EBITDA(3) up 2.1% 

 

(Santiago, Chile, May 26, 2010) -- CCU announced today its consolidated financial results, stated under IFRS, for the first quarter ended March 31, 2010.

COMMENTS FROM THE CEO (4) 

 

The Q1’10 Net profit decreased 22.7% mainly because of the February 27 earthquake effect on the Operating profit (mostly in the Chilean Beer and Wine segments), lower Non operating results and higher Income taxes. In 2010, the businesses were evidencing encouraging results in the first two months. Volumes as well as Operating result were growing soundly. As a consequence of the earthquake we faced a production interruption that affected our main business segments in Chile.

Nevertheless, given the situation that followed the earthquake, and the good performance obtained in January and February, overall we are satisfied with CCU’s Q1 results. The consolidated volume increased 3.5% in Q1’10 since all segments, with the exception of Beer Chile, showed a positive variance, causing Net sales to increase 0.9%.

(1) 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 SVS and available in our web page.
(2) Net profit attributable to parent company shareholders, as per IFRS.
(3) EBITDA represents Operating result plus depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles. For more detail, please see full note before Exhibits. Please see reconciliation of EBITDA to Operating result in exhibits 1.
(4) All the comments bellow refers to Q1’10 figures compared to Q1’09.

The 14.6% Chilean peso average appreciation in relation to the US dollar had a net positive effect since the lower Cost of Good Sold (COGS) more than compensated this quarter’s negative translation effect on Argentina’s beer results and wine exports Net sales.

The Operating result increased 2.2% as a consequence of higher Net sales (0.9%) and lower COGS (5.0%), partially compensated by 9.9% higher Marketing/Selling, Distribution and Administrative expenses (MSD&A). EBITDA increased 2.1% and EBITDA margin grew from 27.0% to 27.3%.

Net income decreased mainly as a result of the absence this year of two non recurring gains obtained in Q1’09, negatively affecting Results of indexed units and Income taxes. Results of indexed units were positive last year because of the effect on the financial debt of the 2.3% reduction in the UF (correlated with CPI variation), as compared with a positive 0.3% UF variation this quarter. Income taxes were higher this quarter mostly due to the absence of an extraordinary tax gain generated last year, and to a lesser extent due to the higher participation of the Argentine profit this year, which pays 35% taxes as compared to 17% by the Chilean operations.

With respect to the consequences of the earthquake, the Company is adequately insured for the incurred losses —physical damages as well as business interruption— with a limit of indemnity of Ch$323,377 million(5) and a maximum deductible of Ch$210 million per location and 10 days for business interruption. Considering the coverage, as of March 31, 2010 the Company recorded Ch$13,539 million in Accounts receivables, corresponding to:

  1. Destroyed inventory at book value.
  2. Costs and expenses incurred as of March 31 in damage control tasks such as assets repairing, cleaning, inventory and assets order setting as well as business interruption mitigation activities.

The estimated deductible amount that would apply was not booked, neither the collectable income due to business interruption, nor the compensation in excess of the book value to be received for: (a) finished product losses to be compensated at sales price, and (b) fixed assets write off to be compensated at replacement value.

These items will be recorded net of deductibles as the claims are settled.

The consequences of the earthquake were manifested mostly in the first quarter. We are confident to be able to restore the growth path we had before the earthquake, in the rest of the year.

 

(5) UF 15.4 million, equivalent to Ch$323,377 million as of March 31, 2010.

CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (Exhibits 1) 

 

(Note: the comments below refer to Q1’10 figures compared to Q1’09.)

NET SALES

Q1’10    Total Net sales increased 0.9% to Ch$213,652 million as a result of 3.5% higher consolidated volumes and 2.2% lower average prices in nominal Chilean pesos. The increase in consolidated volumes is explained by the growth in Wine (27.9%), in the Non-alcoholic beverages segment (9.8%), in Beer Argentina (5.2%) and in Spirits (1.6%), partially offset by lower volumes in Beer Chile (-7.7%). The lower average price is explained by the decrease in Wine (-12.3%), in Beer Argentina (-2.9%), in the Non-alcoholic beverages segment (-2.3%) and in Spirits (-0.7%), partially offset by higher average prices in Beer Chile (1.6%).

Net sales by segment


  Q1 (million Ch$)
  2009  2010 % Chg. 
Beer Chile  82,472  39.0%  77,292  36.2%  -6.3% 
Beer Argentina  42,547  20.1%  44,546  20.8%  4.7% 
Non-alcoholic beverages  55,964  26.4%  59,734  28.0%  6.7% 
Wine  24,146  11.4%  26,430  12.4%  9.5% 
Spirits  7,745  3.7%  7,808  3.7%  0.8% 
Other/Eliminations  -1,145  -0.5%  -2,158  -1.0%  - 
TOTAL  211,729  100.0%  213,652  100.0%  0.9% 

 

GROSS PROFIT

Q1’10    Increased 5.9% to Ch$121,487 million as a result of 0.9% higher Net sales and 5.0% lower Cost of goods sold (COGS) which amounted to Ch$92,165 million. As a percentage of Net sales the COGS decreased from 45.8% to 43.1% mainly as a result of the 14.6% Chilean peso appreciation vs the US dollar comparing the average F/X rate in Q1’10 with Q1’09. Accordingly, the Gross profit, as a percentage of Net sales, increased from 54.2% to 56.9%.

OPERATING RESULT

Q1’10    Increased 2.2% to Ch$47,854 million due to the higher Gross profit, partially offset by higher Marketing/Selling, Distribution and Administrative expenses (MSD&A). MSD&A expenses increased in Q1’10 by 9.9%, to Ch$73,740 million due mostly to higher marketing and distribution expenses, and donations related to the earthquake. MSD&A expenses as a percentage of Net sales increased from 31.7% to 34.5%. The consolidated operating margin increased from 22.1% to 22.4%.


Operating result and Operating margin by segment

  Q1
  Operating result (million Ch$)  Operating margin 
  2009  2010  % Chg  2009  2010 
Beer Chile  25,870  24,623  -4.8%  31.4%  31.9% 
Beer Argentina  8,453  9,211  9.0%  19.9%  20.7% 
Non-alcoholic beverages  6,785  10,105  48.9%  12.1%  16.9% 
Wine  1,610  1,359  -15.6%  6.7%  5.1% 
Spirits  1,283  1,051  -18.1%  16.6%  13.5% 
Other/Eliminations  2,807  1,505  -46.4%  -  - 
TOTAL  46,808  47,854  2.2%  22.1%  22.4% 

 

EBITDA (6)

Q1’10    Increased 2.1%, to Ch$58,354 million and the consolidated EBITDA margin improved 0.3 percentage points, reaching 27.3%.

EBITDA by segment


  Q1
  EBITDA (million Ch$)  EBITDA margin 
  2009  2010  % Chg  2009  2010 
Beer Chile  29,353  28,111  -4.2%  35.6%  36.4% 
Beer Argentina  9,710  10,368  6.8%  22.8%  23.3% 
Non-alcoholic beverages  9,010  12,364  37.2%  16.1%  20.7% 
Wine  3,312  2,907  -12.2%  13.7%  11.0% 
Spirits  1,706  1,465  -14.1%  22.0%  18.8% 
Other/Eliminations  4,034  3,138  -22.2%  -  - 
TOTAL  57,126  58,354  2.1%  27.0%  27.3% 

 

ALL OTHER

Q1’10    In All other we include the following: Net financing expenses, Share of profits of associates and joint ventures, Exchange rate differences, Result of indexed units and Other gains/(losses). The total variation of these accounts, when compared to the same quarter last year, is a higher loss of Ch$2,759 million mainly explained by:

•  Results of indexed units, which decreased Ch$4,552 million mainly due to a higher UF variation affecting CCU’s UF debt as a consequence of a positive 0.3% UF variance in Q1’10 versus a negative 2.3% UF variation in the same period of 2009. (The UF is a daily unit, which is calculated from the 9th of each month to the 9th of the following month, based on the previous month CPI variation).

Partially compensated by

•  Exchange rate differences, which increased Ch$1,780 million due to the lower exchange rate fluctuations this period.

INCOME TAX

Q1’10    Income tax increased Ch$8,158 million mostly due to the absence of a 2009 non recurring tax gain, and in a lesser extent to the higher participation of the Argentine profits this year, which pays 35% taxes as compared to 17% in the other Chilean operations.

NET PROFIT ATTRIBUTABLE TO PARENT COMPANY SHAREHOLDERS

Q1’10    Decreased Ch$9,866 million to Ch$33,668 million due mostly to higher Income taxes and lower Results of indexed units partially compensated by higher Operating result.

 

 

 

BUSINESS UNITS HIGHLIGHTS (Exhibit 2) 

Business segments are reflected in the same way that each Strategic Business Unit (SBU) is managed. Corporate shared services and distribution and logistics expenses have been allocated to each SBU based on Service Level Agreements. The non-allocated corporate overhead expenses and the result of the logistics subsidiary are included in “Other/Eliminations”.

(Note: the comments below refer to Q1’10 figures compared to Q1’09.)

BEER CHILE 

 

Net sales decreased 6.3% to Ch$77,292 million as a result of 7.7% lower sales volumes, partially compensated by 1.6% higher average prices.

Operating result decreased 4.8% to Ch$24,623 million, mainly as a result of lower Gross profit and higher MSD&A expenses. Gross profit decrease is explained by lower Net sales partially compensated by lower COGS which decreased 13.1% to Ch$29,816 million. As a percentage of Net sales, COGS decreased from 41.6% to 38.6%, mainly due to the lower dollar cost of barley and to the lower exchange rate for imported raw materials. The MSD&A expenses increased 3.5% to Ch$23,015 million. As a percentage of Net sales, MSD&A increased from 27.0% to 29.8%, mainly due to higher marketing expenses. The operating margin increased from 31.4% to 31.9%.

EBITDA decreased 4.2% to Ch$28,111 million, while the EBITDA margin was 36.4% or 0.8 percentage points higher than in Q1’09.

Comments The brewery in Santiago was damaged by the earthquake as we disclosed on March 3 and March 17. For some days we had a supply interruption which was soon mitigated mainly with production in the Temuco brewery and imports from our facilities in Argentina. The bottling lines and filters were up and running earlier than initially anticipated. The 23% drop in volume during March explains both the quarter lower volume and the consequently lower result, which annulled the positive January-February performance. Since April volumes have recovered and showed growth again. The Beer Chile segment benefited from the appreciation of the Chilean peso, which helped, among others, to reduce in 5.8% the cost per hectoliter of beer. The marketing expenses were higher due to the implementation of the new brand image of Cristal.

BEER ARGENTINA 

 

Net sales measured in Chilean increased 4.7% to Ch$44,546 million, as a result of 5.2% higher sales volumes partially offset by 2.9% lower average prices.

Operating result measured in Chilean pesos increased 9.0% to Ch$9,211 million in Q1’10, as a consequence of higher Gross profit partially compensated by higher MSD&A. Gross profit increase due to higher Net sales and slightly lower COGS which decreased 0.3%, to Ch$17,957 million this quarter. As a percentage of Net sales, COGS decreased from 42.3% to 40.3%, mainly as a consequence of the dilution of fixed cost. MSD&A expenses increased 8.0% from Ch$16,108 million to Ch$17,401 million. As a percentage of sales, MSD&A expenses increased from 37.9% to 39.1% mostly due to higher distribution and marketing expenses this quarter. The operating margin improved from 19.9% in Q1’09 to 20.7% in Q1’10.


EBITDA increased 6.8% or Ch$659 million to Ch$10,368 million this quarter, while the EBITDA margin increased from 22.8% to 23.3%.

Comments The first quarter results are affected by the 14.6% appreciation of the Chilean peso vis a vis the US dollar and of the 8.3% depreciation of the Argentine peso vis a vis the same currency. MSD&A increased mostly due to higher marketing expenses and higher distribution costs, mainly related to higher volume and higher unit cost.

NON-ALCOHOLIC BEVERAGES 

 

Net sales increased 6.7% to Ch$59,734 million due to higher volumes of 9.8%, partially compensated by a decrease of 2.3% in the average price.

Operating result increased 48.9% to Ch$10,105 million as a consequence of higher Net sales and lower COGS, partially compensated by higher MSD&A expenses. COGS decreased 2.9% to Ch$27,176 million. COGS, as a percentage of Net sales, decreased from 50.0% to 45.5 mainly due to the effect of the Chilean peso appreciation versus the US dollar on raw material traded on such currency. As a consequence, gross margin increased from 50.0% to 54.5%. MSD&A increased 9.8% to Ch$22,513 million. As a percentage of Net sales, MSD&A increased from 36.7% to 37.7% mainly due to higher marketing and distribution expenses. The operating margin increased from 12.1% to 16.9%.

EBITDA increased 37.2% to Ch$12,364 million and the EBITDA margin was 20.7%, 4.6 points higher than in Q1’09.

Comments Volumes had a very positive performance in all categories during the quarter: soft drinks increased 8.1%, water 14.5%, and nectars 10.0%. In the water category, the purified water volume increased 94.5% in the quarter mostly explained by a strong March, which relates to the lack of tap water in various locations due to the earthquake. The lower average price in each category can be explained by the fact that most of the growth has come from larger packages, which tend to have lower price per hectoliter.


WINE 

 

Net sales increased 9.5% to Ch$26,430 million due to an increase in volume of 27.9% partially offset by a decrease of 12.3% in the average price in Ch$, excluding bulk wine. The price decrease in the domestic market is explained by higher mix in popular priced products versus bottled products, whose production and inventories were affected by the earthquake. The exports price in Chilean pesos decrease is driven by the Chilean peso appreciation and higher volume in lower price export markets.

Operating result decreased 15.6% from Ch$1,610 million to Ch$1,359 million in Q1’10, due mostly to higher COGS and higher MSD&A expenses, partially compensated by higher Net sales. COGS increased 8.8% from Ch$15,346 million to Ch$16,700 million due to the higher volume. As a percentage of Net sales, COGS decreased from 63.6% to 63.2%. Consequently, the gross margin increased from 36.4% to 36.8%. MSD&A increased 15.8% to Ch$8,362 million. As a percentage of Net sales, MSD&A increased from 29.9% to 31.6%. As a consequence, the operating margin decreased from 6.7% in Q1’09 to 5.1% in Q1’10.

EBITDA decreased 12.2% to Ch$2,907 million and the EBITDA margin decreased from 13.7% to 11.0%.

Comments Volumes increased in all categories: domestic wine 15.5%, bottled exported wine 36.0% and wine in Argentina 75.3%. The increase in volume was mostly in the lower price categories, causing the decrease in average prices. In the case of wine exports, the appreciation of the Chilean peso (versus foreign currencies in which the prices are quoted) reinforced this price decrease. VSPT is able to carry out the 2010 vintage as we disclosed after the earthquake, since we were able to resume partial operations in 7 out of 8 production centers soon after the event and the missing capacity was supplemented with third party facilities and other mitigation actions.

SPIRITS 

 

Net sales increased 0.8% to Ch$7,808 million due to 1.6% higher volume partially offset by 0.7% lower average prices.

Operating result decreased 18.1% from Ch$1,283 million to Ch$1,051 million, mainly due to higher COGS and MSD&A expenses, partially compensated by higher Net sales. COGS increased from Ch$3,991 million to Ch$4,015 million. COGS as a percentage of Net sales decreased from 51.5% to 51.4%. MSD&A increased 10.8% to Ch$2,743 million. As a percentage of Net sales, MSD&A increased from 32.0% to 35.1% mostly due to higher cost of personnel, distribution and marketing expenses. As a consequence, the operating margin decreased from 16.6% to 13.5%.


EBITDA decreased 14.1% from Ch$1,706 million to Ch$1,465 million and the EBITDA margin decreased from 22.0% to 18.8%.

Comments The higher volume is mostly explained by Mistral Premium Ice Blend, which is an innovation introduced in 2009. In the pisco category, the mix has a higher percentage of premium quality brands, which is consistent with the Company’s strategy.

Note: EBITDA represents Operating result plus depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles. The amounts in the EBITDA calculation, however, are derived from amounts included in the historical statements of income data. EBITDA is presented as supplemental information because management believes that EBITDA is useful in assessing the Company’s operations. EBITDA is useful in evaluating the operating performance compared to that of other companies, as the calculation of EBITDA eliminates the effects of financing, income taxes and the accounting of capital spending, which items may vary for reasons unrelated to overall operating performance. When analyzing the operating performance, however, investors should use EBITDA in addition to, not as an alternative for, operating income and net income, as those items are defined by GAAP. Investors should also note that CCU’s presentation of EBITDA may not be comparable to similarly titled measures used by other companies. Please see reconciliation of EBITDA to operating income on exhibits 1.


Exhibit 1: Income Statement (First Quarter 2010)         
Q1 2009  2010  2009(1)  2010(1)  VARIANCE % 
(Ch$ million)  (Ch$ million)  (US$ million)  (US$ million)   
Net sales  211,729  213,652  403.7  407.4  0.9 
Cost of goods sold  (97,060)  (92,165)  (185.1)  (175.7)  -5.0 
% of net sales  45.8  43.1  45.8  43.1   
Gross profit  114,669  121,487  218.6  231.6  5.9 
Marketing and selling, distribution, and  (67,075)  (73,740)  (127.9)  (140.6)   
administrative costs          9.9 
% of net sales  31.7  34.5  31.7  34.5   
Other operating income/(expenses)  (786)  106  (1.5)  0.2   
OPERATING RESULT  46,808  47,854  89.2  91.2  2.2 
% of net sales  22.1  22.4  22.1  22.4   
Net financing expenses  (1,861)  (2,426)  (3.5)  (4.6)  30.4 
Share of profits of associates and joint  233  (88)  0.4  (0.2)  -137.8 
ventures           
Exchange rate differences  (1,321)  459  (2.5)  0.9  -134.7 
Results of indexed units  4,002  (549)  7.6  (1.0)  -113.7 
Other gains/(losses)  (67)  832  (0.1)  1.6  -1343.5 
INCOME/(LOSS) BEFORE TAXES  47,794  46,081  91.1  87.9  -3.6 
Income tax  (1,993)  (10,150)  (3.8)  (19.4)  409.4 
NET PROFIT FOR THE PERIOD  45,802  35,931  87.3  68.5  -21.6 
           
NET PROFIT ATTRIBUTABLE TO:           
PARENT COMPANY SHAREHOLDERS  43,534  33,668  83.0  64.2  -22.7 
MINORITY INTEREST  2,268  2,263  4.3  4.3  -0.2 
           
Net profit attributable to Parent Company  20.6  15.8  20.6  15.8   
Shareholders as % of net sales           
           
Earnings per share  136.7  105.7  0.26  0.20  -22.7 
Earnings per ADR  683.4  528.5  1.30  1.01  -22.7 
           
EBITDA(2)  57,126  58,354  108.9  111.3  2.1 
% of net sales  27.0  27.3  27.0  27.3   
           
OTHER INFORMATION           
Number of shares  318,502,872  318,502,872  318,502,872  318,502,872   
Shares per ADR  5  5  5  5   
Exchange rate Ch/US$  524.46         
 
Depreciation and Amortization  10,318  10,500  19.7  20  1.8 
Capital Expenditures  10,885  11,324  20.8  22  4.0 
(1) Exchange rate: US$1.00 = Ch$ 524.46           
(2) EBITDA = Operating result + Depreciation and Amortization         

 


 Exhibit 2: Segment Information - First Quarter 2010 
Q1
(Ch$ million) 		 Beer Chile  Beer Argentina  Non-Alcoholic  Wines  Spirits  Other/eliminations  Total 
2009  2010  2009  2010  2009  2010  2009  2010  2009  2010  2009  2010  2009  2010 
Sales revenue  81,821  76,644  42,526  43,244  54,858  58,802  24,147  26,428  7,742  7,806  634  729  211,730  213,652 
Interco sales revenue  651  648  21  1,302  1,106  932  (1)  2  2  2  (1,779)  (2,886)  (0)  0 
Net sales  82,472  77,292  42,547  44,546  55,964  59,734  24,146  26,430  7,745  7,808  (1,145)  (2,158)  211,729  213,652 
variance %    -6.3    4.7    6.7    9.5    0.8        0.9 
Cost of goods sold  (34,310)  (29,816)  (18,017)  (17,957)  (27,985)  (27,176)  (15,346)  (16,700)  (3,991)  (4,015)  2,589  3,499  (97,060)  (92,165) 
% of net sales  41.6  38.6  42.3  40.3  50.0  45.5  63.6  63.2  51.5  51.4      45.8  43.1 
Gross profit  48,162  47,476  24,530  26,589  27,980  32,558  8,800  9,730  3,753  3,793  1,444  1,342  114,669  121,487 
Marketing and selling, distribution, and  (22,239)  (23,015)  (16,108)  (17,401)  (20,512)  (22,513)  (7,222)  (8,362)  (2,476)  (2,743)  1,481  295  (67,075)  (73,740) 
administrative costs                             
% of net sales  27.0  29.8  37.9  39.1  36.7  37.7  29.9  31.6  32.0  35.1      31.7  34.5 
Other operating income/(expenses)  (53)  162  30  23  (683)  60  32  (9)  6  1  (118)  (132)  (786)  106 
OPERATING RESULT  25,870  24,623  8,453  9,211  6,785  10,105  1,610  1,359  1,283  1,051  2,807  1,505  46,808  47,854 
variance %    -4.8    9.0    48.9    -15.6    -18.1        2.2 
% of net sales  31.4  31.9  19.9  20.7  12.1  16.9  6.7  5.1  16.6  13.5      22.1  22.4 
EBITDA  29,353  28,111  9,710  10,368  9,010  12,364  3,312  2,907  1,706  1,465  4,034  3,138  57,126  58,354 
variance %    -4.2    6.8    37.2    -12.2    -14.1        2.1 
% of net sales  35.6  36.4  22.8  23.3  16.1  20.7  13.7  11.0  22.0  18.8      27.0  27.3 
 
Q1
VOLUMES(HL) 		 Beer Chile  Beer Argentina*  Non- alcoholic**  Wine***  Spirits  Other/eliminations  Total 
2009  2010  2009  2010  2009  2010  2009  2010  2009  2010  2009  2010  2009  2010 
SEGMENT VOLUME  1,506,893  1,390,336  1,123,421  1,182,021  1,652,372  1,813,729  200,530  256,427  39,891  40,520      4,523,107  4,683,034 
variance %    -7.7    5.2    9.8    27.9    1.6        3.5 
          SOFT DRINKS  CHILE DOMESTIC  PISCO         
          1,085,642  1,173,239  99,014  114,403  33,909  34,883         
variance %            8.1    15.5    2.9         
          NECTAR  CHILE EXPORTS  RUM         
          181,900  200,028  91,373  124,246  5,982  5,638         
variance %            10.0    36.0    -5.8         
          WATER  ARGENTINA             
          384,830  440,461  10,143  17,779             
variance %            14.5    75.3             
* Excludes exports to Chile of 45,604 Hl and 6,323 Hl in 2010 and 2009 respectively                     
** Includes softdrink (sofdrink, tea , sports and energetic drinks) , nectars and water (purified and mineral)                 
*** Excludes bulk wine of 18,740 Hl and 25,724 Hl in 2010 and 2009 respectively                     
 
Q1
AVE. PRICES (Ch$/Hl) 		 Beer Chile  Beer Argentina  Non- alcoholic  Wine  Spirits  Other/eliminations  Total 
2009  2010  2009  2010  2009  2010  2009  2010  2009  2010  2009  2010  2009  2010 
PRECIOS SEGMENTO  53,766  54,622  36,951  35,862  33,019  32,275  111,601  97,881  191,397  189,997      45,788  44,772 
variance %    1.6    -2.9    -2.3    -12.3    -0.7        -2.2 
          SOFT DRINKS  CHILE DOMESTIC  PISCO         
          32,610  32,181  75,101  65,183  184,400  183,733         
variance %            -1.3    -13.2    -0.4         
          NECTAR  CHILE EXPORTS  RUM         
          45,191  44,523  146,628  122,905  231,063  228,753         
variance %            -1.5    -16.2    -1.0         
          WATER  ARGENTINA             
          28,418  26,964  152,385  133,414             
variance %            -5.1    -12.4             

 


Exhibit 3: Balance Sheet             
December 31
2009 		 March 31
2010 		 December 31
2009 		 March 31
2010 		   %
Change
ASSETS  (Ch$ million) (Ch$ million) (US$ million)(1) (US$ million)(1)
Cash and cash equivalents  137,354  166,740  262  318    21.4% 
Other current assets  271,033  251,329  517  479    -7.3% 
Total current assets  408,387  418,070  779  797    2.4% 
PP&E (net)  488,447  488,440  931  931    0.0% 
Other non current assets  207,687  203,382  396  388    -2.1% 
Total non current assets  696,134  691,822  1,327  1,319    -0.6% 
Total assets  1,104,521  1,109,892  2,106  2,116    0.5% 
           
LIABILITIES             
Loans and other liabilities  19,780  17,212  38  33    -13.0% 
Other liabilities  226,355  213,951  432  408    -5.5% 
Total current liabilities  246,135  231,162  469  441    -6.1% 
           
Loans and other liabilities  209,747  210,632  400  402    0.4% 
Other liabilities  75,432  79,664  144  152    5.6% 
Total non current liabilities  285,179  290,295  544  554    1.8% 
Total Liabilities  531,314  521,458  1,013  994    -1.9% 
           
EQUITY             
Paid-in capital  231,020  231,020  440  440    0.0% 
Other reserves  (25,194)  (27,026)  (48)  (52)    0.0% 
Retained earnings  256,404  273,238  489  521    6.6% 
 
Net equity attributable to parent company shareholders  462,230  477,232  881  910    3.2% 
Minority interest  110,977  111,202  212  212    0.2% 
Total equity  573,207  588,434  1,093  1,122    2.7% 
Total equity and liabilities  1,104,521  1,109,892  2,106  2,116    0.5% 
 
OTHER FINANCIAL INFORMATION             
 
Total financial debt  229,528  227,843  438  434    -0.7% 
 
Net debt (2)  92,174  61,103  176  117    -33.7% 
 
Liquidity ratio  1.66  1.81         
Financial Debt / Capitalization  0.29  0.28         
Net debt / EBITDA  1.61  1.05         
(1) Exchange rate: US$1.00 = Ch$ 524.46             
(2) Total financial debt minus cash & cash equivalents             

 


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/ Ricardo Reyes      
  Chief Financial Officer 
 

 

Date: May 27, 2010