6-K 1 ccupr1q11_6k.htm EARNINGS RELEASE 1Q11 ccupr1q11_6k.htm - Generated by SEC Publisher for SEC Filing


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

     Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

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

 

 

 

CCU REPORTS CONSOLIDATED FIRST QUARTER 2011 RESULTS(1)

 

FIRST QUARTER

Net sales up 13.4%, EBIT(2)  increases 37.7%, EBITDA(3)  up 32.7%

Net profit(4) up 35.2% to CLP 142.9 per share

 

FIRST QUARTER BEFORE NON RECURRING ITEMS (NRI)

EBIT(2)  before NRI increases 11.2%, EBITDA(3)  before NRI up 10.9% 

Net profit(4) before NRI up 11.2% to CLP 117.6 per share

 

(Santiago, Chile, May 4, 2011) -- CCU announced today its consolidated financial results for the first quarter ended March 31, 2011. (5)

 

COMMENTS FROM THE CEO

 

We are pleased with CCU’s first quarter performance. The consolidated volumes grew 6.1% to 5.0 million hectoliters, with the contribution of the following segments: Beer Chile grew 9.6%, Beer Argentina increased 6.9%, Spirits was up 6.6% and Non alcoholic beverages grew 3.7%, which all together more than compensated the 1.7% decrease in Wine volume.  

 

The Net profit(4) in Q1’11 increased 35.2%, mainly due to 11.2% higher EBIT(2) before NRI and to the recognition of a positive CLP 12,683 million one time effect, at EBIT level, of the settlement of the insurance claim related with the damages caused by the February 2010 earthquake, partially offset by higher income tax. This NRI is a compensation for the lost results in 2010 attributable to the earthquake effects on our operations. As of the date of this report, the Company had received in cash, from the insurance companies, the total amount of CLP 39,549 million and has an account receivable for the remaining CLP 3,929 million.

 

(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)EBIT stands for Earnings Before Interest and Taxes, and corresponds to profit before Taxes, Interests, Results of indexed units, Share of profits of associates and joint ventures and profits/(losses) on exchange rate differences.

(3)EBITDA represents EBIT plus depreciation and amortization. EBITDA is not a calculation based on IFRS principles. For more detail, please see full note before Exhibits.

(4)Net profit attributable to parent company shareholders as per IFRS.

(5)All the comments below refers to Q1’11 figures compared to Q1’10, under IFRS.

 

 

1

 

 

 

 

The 11.2% EBIT before NRI increase to CLP 53,212 million is the result of the 13.4% increase in Net sales partially offset by 16.7% higher Cost of goods sold (COGS) and 12.1% increase in marketing, sales, distribution and administrative expenses (MSD&A). The recognition of the positive insurance settlement effect brings the EBIT increase to 37.7% reaching CLP 65,896 million.

 

The EBITDA before NRI increased 10.9% to CLP 64,732 million and with the NRI grew 32.7%. The EBITDA margin varied from 27.3% in Q1’10 to 26.7% in Q1’11 or to 32.0% after NRI.

 

Reflecting on 2011, we are facing a scenario with three variables which can affect negatively our margins: (1) the raise in the raw material prices, (2) the higher cost of fuel and (3) the energy cost increase. In order to compensate the adverse scenario we have in place a contingency plan consisting in (a) to generate costs and expenses savings throughout the organization and (b) to anticipate price increases which were already planned for a later date in the year. Although there is uncertainty if the contingency plan will compensate in full the adverse effects, we expect to bridge a significant part of the negative effects on the margins.

 

 

 

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CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (Exhibit 1)

 

 

NET SALES

 

Q1’11        Total Net sales increased 13.4% to CLP 242,263 million as a result of 6.1% higher consolidated volumes and 6.9% higher average price. Volumes increased in almost all our segments, contributing to the consolidated volume growth: our Beer segment in Chile achieved a 9.6% larger volume, Beer Argentina was up by 6.9%, Spirits was 6.6% higher, the Non-alcoholic beverages increased 3.7%, more than compensating 1.7% lower volume in Wine. The higher average price is mainly explained by 12.9% increase in the average price of Beer in Argentina, 9.5% increase in Wine average price, 6.5% in Non-alcoholic beverages prices, 3.2% price increase in Beer Chile and 3.1% in Spirits. Prices increased mainly due to more premium products in the mix and to price adjustments to compensate higher cost of raw material, energy and fuel.

 

 

 

       * Percentage calculations exclude “Other/Eliminations”

 

Net sales by segment

 

  FIRST QUARTER (million CLP)
  2011 2010 % Chg.
Beer Chile 86,774 35.8% 77,292 36.2% 12.3%
Beer Argentina 52,072 21.5% 44,546 20.8% 16.9%
Non-alcoholic beverages 66,118 27.3% 59,734 28.0% 10.7%
Wine 28,437 11.7% 26,430 12.4% 7.6%
Spirits 8,841 3.6% 7,808 3.7% 13.2%
Other/Eliminations 21 0.0% -2,158 -1.0% -
TOTAL 242,263 100.0% 213,652 100.0% 13.4%

 

 

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GROSS PROFIT

 

Q1’11        Increased 10.9% to CLP 134,728  million as a result of 13.4%  higher Net sales, partially offset by 16.7% higher COGS which amounted to CLP 107,535  million. As a percentage of Net sales, COGS increased from 43.1% in Q1’10 to 44.4% in Q1’11. Consequently, the Gross profit, as a percentage of Net sales, decreased from 56.9% in Q1’10 to 55.6%  this quarter.

 

EBIT                                                                                                                                                  

 

Q1’11        Increased 37.7% to CLP 65,896  million due to the higher Gross profit and due to the CLP 12,683 million positive effect of the insurance settlement, partially offset by higher MSD&A expenses, which increased in Q1’11 by 12.1%, to CLP 82,660  million. MSD&A expenses, as a percentage of Net sales decreased from 34.5% in Q1’10 to 34.1% in Q1’11. The consolidated EBIT margin increased from 22.4% in Q1’10 to 27.2% in Q1’11. Isolating the NRI positive effect of the insurance settlement, the consolidated EBIT margin decreased from 22.4% in Q1’10 to 22.0% in Q1’11.

       

 

                 * Percentage calculations exclude “Other/Eliminations”

 

            EBIT and EBIT margin by segment

 

  FIRST QUARTER
  EBIT (million CLP) EBIT margin
  2011 2010 %Chg 2011 2010
Beer Chile 34,148 24,623 38.7% 39.4% 31.9%
Beer Argentina 9,856 9,211 7.0% 18.9% 20.7%
Non-alcoholic beverages 12,769 10,105 26.4% 19.3% 16.9%
Wine 6,913 1,359 408.7% 24.3% 5.1%
Spirits 1,266 1,051 20.5% 14.3% 13.5%
Other/Eliminations 944 1,505 -37.3% - -
TOTAL 65,896 47,854 37.7% 27.2% 22.4%

 

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EBITDA

 

Q1’11         Increased 32.7%, to CLP 77,415 million and the consolidated EBITDA margin varied from 27.3% in Q1’10 to 32.0% in Q1’11 or to 26.7% excluding the NRI.

 

 

 

 

                                             * Percentage calculations exclude “Other/Eliminations”

 

EBITDA and EBITDA margin by segment

 

  FIRST QUARTER
  EBITDA (million CLP) EBITDA margin
  2011 2010 % Chg 2011 2010
Beer Chile 38,019 28,111 35.2% 43.8% 36.4%
Beer Argentina 11,123 10,368 7.3% 21.4% 23.3%
Non-alcoholic beverages 15,305 12,364 23.8% 23.1% 20.7%
Wine 8,465 2,907 191.1% 29.8% 11.0%
Spirits 1,655 1,465 13.0% 18.7% 18.8%
Other/Eliminations 2,847 3,138 -9.3% - -
TOTAL 77,415 58,354 32.7% 32.0% 27.3%

 

ALL OTHER

 

Q1’11         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 lower result of CLP 314 million mainly explained by:

 

·         Results of indexed units, which worsened CLP 600 million, mainly due to a 0.6% increase of the UF value in Q1’11 compared with a 0.3% UF variation in Q1’10 . (The UF is a monetary unit indexed to the CPI variation).

 

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·         Other gains/(losses) and Exchange rate differences, which decreased CLP 1,088 million mainly due to lower gains related to hedges.

 

                        All of the above was partially compensated by:

 

·         Share of profits of associates and joint ventures, which increased CLP 801 million mainly due to higher Net profit in Foods Compañía de Alimentos CCU S.A. explained by the effect of the insurance claim settlement. 

·         Net financing expenses, which decreased CLP 573  million, from a net expense of CLP 2,426  million to CLP 1,853  million as a result of lower financial net liabilities.

 

INCOME TAX  

 

Q1’11        Income tax increased CLP 3,823  million mostly due to higher income before taxes and to the increase, in Chile, of the income tax rate from 17% to 20% for the fiscal year 2011.The income tax rate was increased in order to fund the reconstruction of public works after the 2010 earthquake: from 17% to 20% in 2011, to 18.5% in 2012 and back to 17% from 2013 and subsequent years.

 

MINORITY INTEREST

 

Q1’11        Increased CLP 2,058 million to CLP 4,321  million mostly due to the higher results of Viña San Pedro Tarapaca S.A. explained mainly by the effect of the insurance claim settlement.

 

NET PROFIT

 

Q1’11        Increased CLP 11,847  million to CLP 45,515  million due mostly to higher EBIT partially compensated by lower All other result, higher Minority interest and higher Income tax.

 

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2010 EARTHQUAKE SETTLEMENT  

 

As of March 31 CCU had settled the insurance claims related to the 2010 earthquake which generated the positive non recurring effect of CLP 12,683 million, at EBIT level, to make up for the operational losses caused by the natural disaster.  The compensation has the following breakdown:

 

1.    The compensation for destroyed finished product at sales value, business interruption damages, and cost and expenses incurred in order setting and cleaning amounted to CLP 7,875 millions.

2.    The compensation corresponding to machinery and equipment write offs valued at replacement cost, amounted to CLP 4,808 million.

    

As of the date of the of this report, the Company had received in cash the total amount of CLP 39,549 million and has an account receivable for the remaining CLP 3,929 million.

 

The following schedules show the EBIT/EBITDA and EBIT/EBITDA margins, both, before NRI to facilitate the comparison between quarters:  

 

  FIRST QUARTER
  EBIT before NRI (million CLP) EBIT margin before NRI
  2011 2010 % Chg 2011 2010
Beer Chile 28,819 24,623 17.0% 33.2% 31.9%
Beer Argentina 9,856 9,211 7.0% 18.9% 20.7%
Non-alcoholic beverages 11,533 10,105 14.1% 17.4% 16.9%
Wine 1,052 1,359 -22.6% 3.7% 5.1%
Spirits 959 1,051 -8.7% 10.8% 13.5%
Other/Eliminations 993 1,505 -34.0% - -
TOTAL 53,212 47,854 11.2% 22.0% 22.4%
 
 
  FIRST QUARTER
  EBITDA before NRI (million CLP) EBITDA margin before NRI
  2011 2010 % Chg 2011 2010
Beer Chile 32,690 28,111 16.3% 37.7% 36.4%
Beer Argentina 11,123 10,368 7.3% 21.4% 23.3%
Non-alcoholic beverages 14,070 12,364 13.8% 21.3% 20.7%
Wine 2,604 2,907 -10.4% 9.2% 11.0%
Spirits 1,348 1,465 -8.0% 15.2% 18.8%
Other/Eliminations 2,896 3,138 -7.7% - -
TOTAL 64,732 58,354 10.9% 26.7% 27.3%

 

 

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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, the result of the logistics subsidiary and the Cider business in Argentina are included in “Other/Eliminations”.

 

BEER CHILE  

                   

Net sales increased 12.3% to CLP 86,774 million as a result of 9.6% higher sales volume and 3.2% higher average prices.

  

EBIT          increased 38.7% to CLP 34,148 million mainly due to higher Net sales and the CLP 5,329 million one time positive effect of the settlement, partially offset by higher COGS and higher MSD&A expenses. COGS increased 12.5% to CLP 33,547 million mainly due to higher volumes and higher unit costs (+2.7%). The higher cost of energy had a relevant impact on manufacturing costs. As a percentage of Net sales, COGS was flat at 38.7%. The MSD&A expenses increased 6.2% to CLP 24,433  million due mostly to higher distribution expenses related to fuel price increases. As a percentage of Net sales, MSD&A decreased from 29.8% to 28.2%. EBIT before NRI increased 17.0% to CLP 28,819 million.

 

EBITDA    increased 35.2% to CLP 38,019 million which considers the insurance settlement. EBITDA before NRI increased 16.3% to CLP 32,690 million and the EBITDA margin increased from 36.4% in Q1’10 to 37.7% in Q1’11 or to 43.8% considering the one time insurance effect.

 

Comments The volume growth of 9.6% contrasts with the 7.7% drop experienced in the same period in 2010 as a consequence of the earthquake effects on the brewery in Santiago. The damages caused an inevitable supply shortage which was gradually normalized. The higher average price is mainly due to a higher incidence of premium products and one way package products in the sales mix, and to price increases to compensate the higher production and distribution costs. In August 2010 the price of premium beer and one way packaging was adjusted 6% on average, and given the actual COGS pressure, we will continue to adjust prices to protect the margins.

 

 

BEER ARGENTINA

 

Net sales measured in Chilean pesos increased 16.9% to CLP 52,072 million, as a result of 6.9% higher sales volumes and 12.9% higher average prices.

 

 

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 EBIT          measured in Chilean pesos increased 7.0% to CLP 9,856 million in Q1’11, as a consequence of higher Net sales, partially compensated by higher COGS and MSD&A. COGS increased 9.2%, to CLP 19,617  million this quarter mainly due to higher prices of raw materials and salary pressures.  As a percentage of Net sales, COGS decreased from 40.3% to 37.7% in Q1’11. MSD&A expenses increased 30.3% from CLP 17,401  million to CLP 22,673  million due to inflationary pressures, unionization of sales personnel and distributors and sales taxes.  As a percentage of Net sales, MSD&A expenses increased from 39.1% to 43.5%.  

 

EBITDA    increased 7.3% or CLP 755  million to CLP 11,123  million this quarter and the EBITDA margin decreased from 23.3% to 21.4%. 

 

Comments Despite of cost and expenses pressures we are satisfied with Beer Argentina results. Sales prices were adjusted during February 2011. Total volume grew 6.9% on average, where international brands and exports to third countries made considerable progress. The results in Chilean pesos are affected by the depreciation of the Argentinean peso (4.6%) and the appreciation of the Chilean peso (7.2%), both vis a vis the dollar. The results in dollars are as follows: EBIT increased 14.6% and EBITDA increased 14.9%, while the EBITDA margin decreased from 25% to 22.8%.

                     With regards to the cider business we acquired in December 2010, the volumes grew 6.1% with respect to Q1’10, the EBITDA was negative USD1.2 million which is consistent with a highly seasonal business. The cider business in Argentina has its peak towards year end when most of the EBITDA is generated. In 2010 the EBITDA was USD4million. During 2011 the cider business result will be shown in the “Other/eliminations” segment.

 

 

NON-ALCOHOLIC BEVERAGES

 

Net sales increased 10.7% to CLP 66,118  million due to higher volumes of 3.7% and 6.5% increase in the average price.

 

EBIT          increased 26.4% to CLP 12,769  million mainly due to higher Net sales and the CLP 1,236 million positive effect of the insurance settlement. The positive variations were partially compensated by higher COGS and higher MSD&A expenses.  COGS increased 18.4% to CLP 32,188  million mainly due to price increases in raw material such as sugar, fruit pulp and resin which were not fully compensated by the appreciation of the Chilean peso.  Also, higher energy costs and −to a lesser extent− the operation this year of the Antofagasta plant, had an impact on manufacturing costs.  COGS, as a percentage of Net sales, increased from 45.5% to 48.7%. MSD&A increased 3.6% to CLP 23,313 million mainly due to higher distribution, marketing expenses and depreciation. Consequently, as a percentage of Net sales, MSD&A decreased from 37.7% to 35.3%. EBIT before NRI increased 14.1% to CLP 11,533 million. 

 

EBITDA    increased 23.8% to CLP 15,305 million which considers the insurance settlement positive effect. EBITDA before NRI increased 13.8% to CLP 14,070  million and the EBITDA margin increased from 20.7% in Q1’10 to 21.3% in Q1’11, or to 23.1%considering the one time insurance effect.

 

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Comments Volumes had a positive performance during the quarter: soft drinks increased 2.8%, nectars 16.9%, and water 0.3%. The soft drinks category “Light” or Diet products, Functional products and Ice Tea volumes grew at double-digit rates.  Water volume grew in 2011 despite the challenging 14.5% increase in Q1’10 because of tap water shortage caused by the earthquake in some regions last year. The segment’s average price increased 6.5% due to the 3% price increase in all categories on November 2010 and 1% in soft drinks at the beginning of April 2011. The purpose of these price actions is to mitigate raw materials, energy and fuel price raise.

 

WINE

 

Net sales increased 7.6% to CLP 28,437  million due to an increase of 9.5% in the average price in CLP partially offset by a decrease in volume of 1.7%. The Chile domestic volume decreased 1.1%, Chile exports increased 0.8% and Argentina’s volume decreased 24.2%. The 23.7% price increase in the domestic market is explained by price adjustments during 2010 and higher participation of bottled wine in the sale’s mix. The Chile exports prices in Chilean pesos increased 2.9%, despite of the appreciation of the Chilean peso, due to higher prices in the export markets. In dollar terms, the Chile export prices were 14% higher than in the same period last year, and the Argentine average price considering both domestic sales and exports in dollars terms, increased 21%.

 

EBIT          increased 408.7% to CLP 6,913 million mainly due to the CLP 5,861 million one time positive effect of the settlement of the insurance claim, partially offset by higher COGS and MSD&A expenses. COGS increased 11.2% from CLP 16,700  million to CLP 18,574  million due to the higher cost of wine. As a percentage of Net sales, COGS increased from 63.2% to 65.3%. MSD&A increased 6.5% to CLP 8,908  million mainly due to marketing and distribution expenses. As a percentage of Net sales, MSD&A decreased from 31.6% to 31.3%.  EBIT before NRI decreased 22.6% from CLP 1,359  million to CLP 1,052  million in Q1’11, mainly due to the 7% appreciation of the Chilean peso vs. the US dollar.

 

EBITDA    increased 191.1% to CLP 8,465 million which considers the insurance settlement positive effect. EBITDA before NRI decreased 10.4% to CLP 2,604  million and the EBITDA margin before NRI varied from 11.0% in Q1’10 to 9.2% in Q1’11, or to 29.8% considering the one time insurance effect.

 

Comments The higher cost of wine (as raw material) that has been affecting the industry due to last year’s vintage and to the wine lost during the earthquake, has continued affecting the COGS. Additionally, the strengthening of the Chilean currency vis a vis the foreign currencies in the company’s destination markets has affected our revenues. In order to compensate this, the company has been improving the sales mix to more premium, and adjusting prices in all of our segments.

 

 

 

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SPIRITS

 

Net sales increased 13.2% to CLP 8,841 million due to 6.6% higher volume and 3.1% higher average prices.

                 

EBIT          increased 20.5% to CLP 1,266 million mainly due to higher Net sales and the CLP 307 million one time positive effect of the settlement of the insurance claim, partially offset by higher COGS and higher MSD&A expenses. COGS increased 15.2% from CLP 4,015  million to CLP 4,626  million due to higher raw material costs and finished product inventory depletion.  COGS as a percentage of Net sales increased from 51.4% to 52.3%. MSD&A increased 18.8% to CLP 3,260  million, mostly due to higher marketing and personnel expenses. As a percentage of Net sales, MSD&A increased from 35.1% to 36.9%. EBIT before NRI decreased 8.7% from CLP 1,051  million to CLP 959  million.

 

EBITDA    increased 13.0% to CLP 1,655 million which considers the insurance settlement positive effect. EBITDA before NRI decreased 8.0% from CLP 1,465  million to CLP 1,348  million, and the EBITDA margin decreased from 18.8% in Q1’10 to 15.2% in Q1’11, or to 18.7% considering the one time insurance effect.

 

Comments The higher volume, as well as the higher average price, is explained by pisco products volume growth such as Mistral (16%), Mistral Ice Blend (15%) and rum volume (13%), mainly the Cabo Viejo brand.

 

(The exhibits to follow, figures have been rounded and may not sum exactly the totals shown.)

Note: EBITDA represents EBIT 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, EBIT and net income. Investors should also note that CCU’s presentation of EBITDA may not be comparable to similarly titled measures used by other companies

 

 

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Exhibit 1: Income Statement (Three Months Ended March 31, 2011)      
Q1 2011 2010 2011(1) 2010(1) VARIANCE %
(CLP million) (CLP million) (US$ million) (US$ million)  
Core revenue 237,911 209,669 496.2 437.3 13.5
Other revenue 4,352 3,983 9.1 8.3 9.3
Interco sales revenue (0) 0 (0.0) 0.0 -
Net sales 242,263 213,652 505.3 445.6 13.4
Cost of goods sold (107,535) (92,165) (224.3) (192.2) 16.7
% of net sales 44.4 43.1 44.4 43.1  
Gross profit 134,728 121,487 281.0 253.4 10.9
MSD&A (2) (82,660) (73,740) (172.4) (153.8) 12.1
% of net sales 34.1 34.5 34.1 34.5  
Other operating income/(expenses) 1,144 106 2.4 0.2 n/a
EBIT before NRI 53,212 47,854 111.0 99.8 11.2
% of net sales 22.0 22.4 22.0 22.4  
NRI 12,683 0 26.5 0.0 -
EBIT 65,896 47,854 137.4 99.8 37.7
% of net sales 27.2 22.4 27.2 22.4  
Net financing expenses (1,853) (2,426) (3.9) (5.1) (23.6)
Share of profits of associates and joint ventures 713 (88) 1.5 (0.2) n/a
Exchange rate differences 121 459 0.3 1.0 (73.6)
Results of indexed units (1,149) (549) (2.4) (1.1) 109.2
Other gains/(losses) 82 832 0.2 1.7 (90.2)
INCOME/(LOSS) BEFORE TAXES 63,809 46,081 106.6 96.1 38.5
Income tax (13,973) (10,150) (29.1) (21.2) 37.7
NET PROFIT FOR THE PERIOD 49,835 35,931 77.5 74.9 38.7
 
NET PROFIT before NRI ATTRIBUTABLE TO:          
PARENT COMPANY SHAREHOLDERS 37,455 33,668 78.1 70.2 11.2
 
NET PROFIT ATTRIBUTABLE TO:          
PARENT COMPANY SHAREHOLDERS 45,515 33,668 68.5 70.2 35.2
MINORITY INTEREST 4,321 2,263 9.0 4.7 90.9
 
Net profit attributable to Parent Company Shareholders as % of net sales 18.8 15.8 13.6 15.8  
 
Earnings per share 142.9 105.7 0.2 0.2 35.2
Earnings per ADR 714.5 528.5 1.1 1.1 35.2
 
EBITDA(3) before NRI 64,732 58,354 135.0 121.7 10.9
% of net sales 26.7 27.3 26.7 27.3  
EBITDA(3) 77,415 58,354 161.5 121.7 32.7
% of net sales 32.0 27.3 32.0 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  
 
DEPRECIATION 11,519 10,500 24.0 21.9 9.7
Capital Expenditures 12,877 11,324 26.9 23.6 13.7
(1) Exchange rate: US$1.00 = CLP 468.01
(2) MSD&A refers to Marketing selling, distribution and administrative expenses
(3) Please see full note in page before exhibits

 

12

 

Exhibit 2: Segment Information - Three Months March 31, 2011                        
Q1 Beer Chile Beer Argentina Non-Alcoholic Wines Spirits Other/eliminations Total
(CLP million) 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
Core revenue 85,899 75,943 51,121 42,390 64,693 58,539 27,015 25,099 8,460 7,699 722 0 237,911 209,669
Other revenue 805 701 933 855 300 263 1,419 1,329 131 107 765 729 4,352 3,983
Interco sales revenue 69 648 18 1,302 1,125 932 3 2 251 2 (1,466) (2,886) (0) 0
Net sales 86,774 77,292 52,072 44,546 66,118 59,734 28,437 26,430 8,841 7,808 21 (2,158) 242,263 213,652
variance % 12.3   16.9   10.7   7.6   13.2       13.4  
Cost of goods sold (33,547) (29,816) (19,617) (17,957) (32,188) (27,176) (18,574) (16,700) (4,626) (4,015) 1,018 3,499 (107,535) (92,165)
% of net sales 38.7 38.6 37.7 40.3 48.7 45.5 65.3 63.2 52.3 51.4     44.4 43.1
Gross profit 53,227 47,476 32,454 26,589 33,929 32,558 9,864 9,730 4,215 3,793 1,039 1,342 134,728 121,487
MSD&A (1) (24,433) (23,015) (22,673) (17,401) (23,313) (22,513) (8,908) (8,362) (3,260) (2,743) (72) 295 (82,660) (73,740)
% of net sales 28.2 29.8 43.5 39.1 35.3 37.7 31.3 31.6 36.9 35.1     34.1 34.5
Other operating income/(expenses) 26 162 74 23 917 60 96 (9) 5 1 26 (132) 1,144 106
EBIT before NRI(2) 28,819 24,623 9,856 9,211 11,533 10,105 1,052 1,359 959 1,051 993 1,505 53,212 47,854
variance % 17.0   7.0   14.1   -22.6   -8.7       11.2  
% of net sales 33.2 31.9 18.9 20.7 17.4 16.9 3.7 5.1 10.8 13.5     22.0 22.4
NRI 5,329 0 0 0 1,236 0 5,861 0 307 0 (49) 0 12,683 0
EBIT 34,148 24,623 9,856 9,211 12,769 10,105 6,913 1,359 1,266 1,051 944 1,505 65,896 47,854
variance % 38.7   7.0   26.4   408.7   20.5   -37.3   37.7  
% of net sales 39.4 31.9 18.9 20.7 19.3 16.9 24.3 5.1 14.3 13.5     27.2 22.4
EBITDA before NRI(2) 32,690 28,111 11,123 10,368 14,070 12,364 2,604 2,907 1,348 1,465 2,896 3,138 64,732 58,354
variance % 16.3   7.3   13.8   -10.4   -8.0   -7.7   10.9  
% of net sales 37.7 36.4 21.4 23.3 21.3 20.7 9.2 11.0 15.2 18.8     26.7 27.3
EBITDA 38,019 28,111 11,123 10,368 15,305 12,364 8,465 2,907 1,655 1,465 2,847 3,138 77,415 58,354
variance % 35.2   7.3   23.8   191.1   13.0   -9.3   32.7  
% of net sales 43.8 36.4 21.4 23.3 23.1 20.7 29.8 11.0 18.7 18.8     32.0 27.3
 
Q1 Beer Chile Beer Argentina(3) Non- alcoholic(4) Wine(5) Spirits Other/eliminations Total
VOLUMES (HL) 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
TOTAL SEGMENT 1,523,269 1,390,300 1,264,028 1,182,966 1,881,629 1,813,730 251,352 255,827 43,354 40,667 7,110 - 4,970,743 4,683,490
variance % 9.6   6.9   3.7   -1.7   6.6   -   6.1  
          SOFT DRINKS CHILE DOMESTIC        
          1,205,854 1,173,239 112,472 113,698        
variance %         2.8   -1.1          
          NECTAR CHILE EXPORTS        
          233,838 200,028 125,401 124,351        
variance %         16.9   0.8          
          WATER ARGENTINA            
          441,937 440,462 13,480 17,779            
variance %         0.3   -24.2              
(1) MSD&A refers to Marketing selling, distribution and administrative expenses
(2) NRI refers to Non-recurring items
(3) Excludes exports to Chile of 2,904 Hl and 45,604 Hl in 2011 and 2010 respectively
(4) Includes softdrink (sofdrink, tea , sports and energetic drinks) , nectars and water (purified and mineral)
(5) Excludes bulk wine of 18,791Hl and 15,648 Hl in 2011 and 2010 respectively
 
Q1 Beer Chile Beer Argentina Non-Alcoholic Wines Spirits Other/eliminations Total
AVE. PRICES (CLP/Hl) 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010 2011 2010
SEGMENT AVE. PRICE 56,391 54,623 40,443 35,833 34,381 32,275 107,478 98,111 195,129 189,313 100,887   47,861 44,768
variance % 3.2   12.9   6.5   9.5   3.1   -   6.9  
          SOFT DRINKS CHILE DOMESTIC        
          34,267 32,181 81,160 65,587        
variance %         6.5   23.7          
          NECTAR CHILE EXPORTS        
          46,346 44,523 126,410 122,801        
variance %         4.1   2.9          
          WATER ARGENTINA            
          28,363 26,964 150,954 133,414            
variance %         5.2   13.1              
 

 

13

 

Exhibit 3: Balance Sheet          
March 31 December 31 March 31 December 31 %
2011 2010 2011 2010 Change
ASSETS (CLP million) (CLP million) (US$ million)(1) (US$ million)(1)  
Cash and cash equivalents 184,761 151,614 385 316 21.9%
Other current assets 292,044 294,668 609 615 -0.9%
Total current assets 476,804 446,282 994 931 6.8%
             
PP&E (net) 520,780 508,162 1,086 1,060 2.5%
Other non current assets 193,941 197,245 404 411 (1.7)%
Total non current assets 714,721 705,407 1,491 1,471 1.3%
Total assets 1,191,525 1,151,689 2,485 2,402 3.5%
 
LIABILITIES  
Loans and other liabilities 12,249 12,822 26 27 (4.5)%
Other liabilities 229,008 224,136 478 467 2.2%
Total current liabilities 241,257 236,958 503 494 0.0
             
Loans and other liabilities 221,443 220,145 462 459 0.6%
Other liabilities 82,921 79,512 173 166 4.3%
Total non current liabilities 304,364 299,657 635 625 1.6%
Total Liabilities 545,621 536,615 1,138 1,119 1.7%
 
EQUITY  
Paid-in capital 231,020 231,020 482 482 0.0%
Other reserves (37,482) (37,119) (78) (77) 0.0%
Retained earnings 334,511 311,754 698 650 7.3%
Net equity attributable to parent company shareholders 528,049 505,655 1,101 1,055 4.4%
Minority interest 117,856 109,419 246 228 0.1
Total equity 645,904 615,074 1,347 1,283 5.0%
Total equity and liabilities 1,191,525 1,151,689 2,485 2,402 3.5%
 
OTHER FINANCIAL INFORMATION          
 
Total financial debt 233,692 232,967 487 486 0.3%
 
Net debt (2) 48,931 81,353 102 170 (39.9)%
 
Liquidity ratio 1.98 1.88      
Financial Debt / Capitalization 0.27 0.27      
Net debt / EBITDA (3) 0.22 0.39      
(1) Exchange rate: US$1.00 = CLP 479.46
(2) Total financial debt minus cash & cash equivalents
(3) Last 12 months of EBITDA.


14

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 9, 2011