6-K 1 ccupr1q14_6k.htm CCU REPORTS CONSOLIDATED FIRST QUARTER 2014 RESULTS ccupr1q14_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 2014 RESULTS1;2;3

 

Santiago, Chile, May 6th, 2014 – CCU announced today its consolidated financial results for the first quarter ended March 31st, 2014:

·          Consolidated Volumes increased 6.3% (organic 4.4%). The Chile Operating segment contributed with an increase of 6.6% (same figures for organic growth). The Río de la Plata Operating segment showed a 5.0% increase (3.1% decrease for organic growth) and the Wine Operating segment increased 10.3% this quarter (same figures for organic growth).

·          Total Net sales increased 10.1%. Organically it grew 7.9% as a consequence of 4.4% higher consolidated volumes coupled with 3.3% higher average prices.

·          Gross profit increased 6.7%. Organically it grew 5.3% as a combination of higher Net sales and an increase in Cost of sales of 322 bps as a percentage of Net sales.

·          Normalized EBITDA decreased 1.2%. On organic basis, Normalized EBITDA decreased 2.0% driven by Chile and Rio de la Plata segments, partially compensated by the Wine Operating segment.

·          Net income increased 0.6% this quarter and 0.3% organically.

·          Normalized Earnings per share 4 decreased 13.3% (decreased 13.5% organically) due to share dilution.

 

 

Key figures

Q1'14

Q1'13

Total

Organic

(In ThHL or CLP million unless stated otherwise)

change %

change %

Volumes

6,329

5,951

6.3 %

4.4 %

Net sales

334,811

304,100

10.1 %

7.9 %

Gross profit

185,784

174,184

6.7 %

5.3 %

Normalized EBIT

56,017

58,031

(3.5)%

(3.9)%

Normalized EBITDA

72,330

73,204

(1.2)%

(2.0)%

Net income

40,568

40,315

0.6 %

0.3 %

Normalized Net income

40,568

40,315

0.6 %

0.3 %

Normalized Earnings per share

109.8

126.6

(13.3)%

(13.5)%

 

 

 

 

 

 

 

 

1 For an explanation of the terms used please refer to the Glossary in Further Information and Exhibits. For organic growth details please refer to page 8. Figures in tables and exhibits have been rounded off and may not add exactly the total shown.

2 All references in this Press Release shall be deemed to refer to Q1’14 figures compared to Q1’13 figures, unless as otherwise indicated.

3 For a comparable basis, Volumes figures consider energy drinks sales from CCU Argentina in both periods shown.

4 Considers period weighted average shares according to Capital increase as of December 31th, 2013.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 1 of 17
 

 

 

 

 

COMMENTS FROM THE CEO

As we have mentioned during 2013, CCU will report from now onward its consolidated results pursuant to the Operating segments, essentially defined with respect to its revenues in the geographic areas of commercial activity which are as follows: Chile5, Río de la Plata6, Wine7 and Others8.

We are satisfied with CCU’s first quarter 2014 consolidated volumes which increased by 6.3% including a positive consolidation impact of 115,037 hectoliter due to the Paraguayan operation. In organic terms, the increase was 4.4%. This increase comes with market share growth in most of the categories. Nevertheless, we are not pleased with the overall results, where the Normalized EBITDA decreased 1.2%, including 0.8% positive consolidation impact related to the acquisition in Paraguay. The overall decrease was driven by Río de la Plata and Chile Operating segments. The Normalized EBITDA decrease of 1.2% is due to a 12.8% increase in MSD&A, partially compensated by 6.7% higher Gross profit. The Normalized EBITDA margin was 21.6%, 250 bps lower than Q1’13. This decrease is mainly explained by strong currency devaluation in Chile and Argentina, and higher distribution costs. In the quarter Net income grew 0.6% reaching CLP 40,568 million.

In the Chile Operating segment, the Normalized EBITDA decreased 8.4% despite of the 6.6% growth in volumes and 4.0% increase in average prices against the same quarter last year. The 10.9% increase in Net sales did not compensate the higher distribution costs and the strong Peso devaluation. In fact, the Chilean peso devaluated 5.1% during the quarter and 16.8% against the first quarter of 2013.

Río de la Plata Operating segment Normalized EBITDA decreased 26.3% in organic terms. This decrease is explained mainly due to external effects: the lower private consumption and government restrictions on our imported products portfolio affected our volumes; while high inflationary pressures and strong currency devaluation caused that our price increases could not compensate the higher costs. In fact, against the US Dollar the Argentinean peso devaluated 23.2% during the quarter and 56.2% against the first quarter of 2013.

The Wine Operating segment showed a significant 257.2% Normalized EBITDA increase. Excluding the impact of a higher exchange rate, representing CLP 2,421 million, the Normalized EBITDA grew 134.0% due to higher volumes and lower cost of wine. The volumes of this segment increased 10.3%, making an increase in the Net sales of 24.9%.

Finally, headwinds coming from weaker currencies, higher inflation and uncertainties from possible tax reforms in Chile will be tackled with excellence in the execution, branding and additional price efforts supported by cost savings. In fact, during April, we achieved additional price increases in most of our categories.

 

5 Chile: This segment commercializes Beers, Non Alcoholic Beverages and Spirits in the Chilean market.

6 Rio de la Plata: This segment commercializes Beers, Ciders, Non Alcoholic Beverages and Spirits in the Argentine, Uruguayan and Paraguayan market.

7 Wine: This segment commercializes wine, mainly in the export market reaching over 80 countries.

8 Other/Eliminations: Considers the non-allocated corporate overhead expenses and the result of the logistics subsidiary.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 2 of 17
 

 

 

 

 

CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (Exhibit 1)

 

NET SALES

 

Q1’14    Increased 10.1% to CLP 334,811 million as a result of 6.3% higher volumes and 3.5% higher average prices. Chile and Wine Operating segment contributed to this growth as follows: Chile with 10.9% increase and Wine with 24.9% increase.

On organic basis, Total Net sales increased 7.9% as a result of 4.4% higher volumes coupled with 3.3% increase in average prices. The Chile Operating segment contributed to this growth with 10.9% organic Net sales increase as volumes increased 6.6% organically coupled by 4.0% higher average prices. The Wine Operating segment contributed with a 24.9% increase, as average prices increased 13.2% coupled by 10.3% higher organic volumes. This growth was partially compensated by Río de la Plata Operating segment with 4.1% decrease as volumes decreased 3.1% organically coupled by 1.0% decrease in organic average prices.

 

Net sales by segment

 

 

 

Net sales (million CLP)

 

Q1'14

Mix

Q1'13

Mix

Total Change%

Organic Change%

1. Chile Operating segment

224,717

67.1%

202,654

66.6%

10.9

10.9

2. Río de la Plata Operating segment

76,584

22.9%

72,748

23.9%

5.3

-4.1

3. Wine Operating segment

36,371

10.9%

29,127

9.6%

24.9

24.9

4. Other/Eliminations

(2,861)

(0.9)%

(429)

(0.1)%

N/A

N/A

TOTAL

334,811

100.0%

304,100

100.0%

10.1

7.9

 

 

 

GROSS PROFIT

 

Q1’14    Increased 6.7% to CLP 185,784  million as a result of 10.1% higher Net sales, partially compensated by 14.7% higher Cost of sales, which as a percentage of Net sales, increased from 42.7% to 44.5%. As a consequence, Gross profit, as a percentage of Net sales, decreased from 57.3% to 55.5%. 

On organic basis, Despite of 7.9% higher Net sales, the Gross profit increased only 5.3% to CLP 183,372 million due to 11.3% higher Cost of sales. As a consequence, Gross profit as a percentage of Net sales, decreased from 57.3% to 55.9%.

 

Normalized EBIT                                                                                                                           

 

Q1’14    Decreased 3.5% to CLP 56,017 million, mostly explained by 12.8% higher MSD&A expenses which increased to CLP 131,759 million, partially compensated by 6.7% higher Gross profit. MSD&A expenses, as a percentage of Net sales, increased from 38.4% to 39.4%, mainly as a result of higher distribution expenses due to increasing salaries and higher costs of fuel.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 3 of 17
 

 

On organic basis, Normalized EBIT decreased 3.9% to CLP 55,796 million, mostly explained by 10.9% higher MSD&A expenses, which increased to CLP 129,563 million, partially compensated by 5.3% higher Gross profit.

 

Normalized EBIT and Normalized EBIT margin by segment

 

 

Normalized EBIT (million CLP)

Normalized EBIT margin

 

Q1'14

Mix

Q1'13

Mix

Total Change%

Organic Change%

Q1'14

Q1'13

Total Change(bps)

Organic Change(bps)

1. Chile Operating segment

40,768

72.8%

45,913

79.1%

(11.2)

(11.2)

18.1%

22.7%

(451)

(451)

2. Río de la Plata Operating segment

6,526

11.6 %

8,974

15.5 %

(27.3)

(29.7)

8.5 %

12.3 %

(381)

(330)

3. Wine Operating segment

5,328

9.5%

406

0.7%

N/A

N/A

14.7%

1.4%

1326

1326

4. Other/Eliminations

3,395

6.1 %

2,738

4.7 %

N/A

N/A

-

-

-

-

TOTAL

56,017

100.0%

58,031

100.0%

(3.5)

(3.9)

16.7%

19.1%

(235)

(207)

 

 

 

Normalized EBITDA

 

Q1’14    Decreased 1.2% to CLP 72,330 million and the Normalized EBITDA margin decreased from 24.1% to 21.6%. On organic basis, Normalized EBITDA decreased 2.0% to CLP  71,729 million and the Normalized EBITDA margin also decreased from 24.1% to 21.9%.

 

Normalized EBITDA and Normalized EBITDA margin by segment

 

 

 

Normalized EBITDA (million CLP)

Normalized EBITDA margin

 

Q1'14

Mix

Q1'13

Mix

Total Change%

Organic Change%

Q1'14

Q1'13

Total Change(bps)

Organic Change(bps)

1. Chile Operating segment

50,299

69.5%

54,927

75.0%

(8.4)

(8.4)

22.4%

27.1%

(472)

(472)

2. Río de la Plata Operating segment

9,016

12.5 %

11,421

15.6 %

(21.1)

(26.3)

11.8 %

15.7 %

(393)

(364)

3. Wine Operating segment

7,021

9.7%

1,966

2.7%

257.2

257.2

19.3%

6.7%

1256

1256

4. Other/Eliminations

5,994

8.3 %

4,889

6.7 %

22.6

22.6

-

-

-

-

TOTAL

72,330

100.0%

73,204

100.0%

(1.2)

(2.0)

21.6%

24.1%

(247)

(221)

 

 

 

 

NON-OPERATING RESULT

 

Q1’14    Increased CLP 1,973 million from a loss of CLP 4,481 million to a loss of CLP 2,509 million mainly explained by:

·      Net financial expenses  which decreased CLP 2,658 million from a loss of CLP 3,939 million to a loss of CLP 1,281 million, due to higher financial incomes from the higher Cash and Cash equivalent related to the capital increase

·      Results as per adjustment units which decreased CLP 979 million from a loss of CLP 209 million to a loss of CLP 1,188 million, mainly due to higher inflation in the Q1’14 compared to Q1’13 periods.

·      Foreign currency exchange differences and Other gain/ loses which increased CLP 342 million from a loss of CLP 309 million to a gain of CLP 33 million mainly due to gains related to hedges covering foreign exchange variations on taxes.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 4 of 17
 

 

 

INCOME TAXES

 

Q1’14  Decreased CLP 2,162 million, mainly explained by lower results in the Rio de la Plata and Chile Operating segments and a positive effect of foreign exchange fluctuations on taxes.

 

 

 

NORMALIZED NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF PARENT COMPANY

 

Q1’14    Increased 0.6% to CLP 40,568 million mostly explained by lower EBIT partially compensated by lower Non-operating losses. On organic basis, Net income increased 0.3%.

  

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 5 of 17
 

 

 

ORGANIC GROWTH

 

The following schedule details the effect of first time consolidation of the acquisition of the Paraguayan Operation in December 2013. For better insight, Proforma refers to consolidated results as reported for the year.

 

 

YTD AS OF MARCH

As reported

 

Paraguay Effect(1)

 

Proforma(2)

 

Total(3)

 

Organic(4)

(In ThHL or CLP million unless stated otherwise)

2014

2013

 

 

2014

2013

 

Change%

 

Change%

Volumes

6,329

5,951

 

115

 

6,214

5,951

 

6.3

 

4.4

Net sales

334,811

304,100

 

6,784

 

328,027

304,100

 

10.1

 

7.9

Net sales (CLP/HL)

52,900

51,099

 

58,974

 

52,788

51,099

 

3.5

 

3.3

Cost of sales

(149,027)

(129,916)

 

(4,372)

 

(144,655)

(129,916)

 

14.7

 

11.3

% of net sales

44.5

42.7

 

64.4

 

44.1

42.7

 

 

 

 

Gross profit

185,784

174,184

 

2,412

 

183,372

174,184

 

6.7

 

5.3

% of net sales

55.5

57.3

 

35.6

 

55.9

57.3

 

 

 

 

MSD&A

(131,759)

(116,853)

 

(2,196)

 

(129,563)

(116,853)

 

12.8

 

10.9

% of net sales

39.4

38.4

 

32.4

 

39.5

38.4

 

 

 

 

Other operating income/(expenses)

1,992

700

 

5

 

1,987

700

 

184.7

 

184.0

Normalized EBIT

56,017

58,031

 

221

 

55,796

58,031

 

(3.5)

 

(3.9)

Normalized EBIT Margin (%)

16.7

19.1

 

3.3

 

17.0

19.1

 

 

 

 

Normalized EBITDA

72,330

73,204

 

601

 

71,729

73,204

 

(1.2)

 

(2.0)

Normalized EBITDA Margin (%)

21.6

24.1

 

8.9

 

21.9

24.1

 

 

 

 

(1) Effect of excluding Paraguay's results from the quarter As reported.

(2) Excludes the mentioned effects for the period.

(3) Total Change refers to As reported figures variation.

(4) Organic Change refers to as Proforma figures variation.

 

 

 

 

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 6 of 17

 

 

 

FIRST QUARTER OPERATING SEGMENTS HIGHLIGHTS (Exhibit 2) 

 

1.    CHILE 

                   

Net sales increased 10.9% to CLP 224,717 million as a result of 6.6% higher sales volume coupled with 4.0% higher average prices.

 

Normalized EBIT decreased 11.2% to CLP 40,768 million due to 17.6% higher Cost of sales and 16.7% higher MSD&A expenses, partially compensated by 10.9% higher Net sales. Cost of sales, as a percentage of Net sales, increased from 42.7% to 45.3%, explained by the devaluation of the Chilean peso and higher energy costs. MSD&A, as a percentage of Net sales, increased from 34.9% to 36.7%, almost fully explained by higher distribution costs. The Normalized EBIT margin decreased from 22.7% to 18.1%.

 

Normalized EBITDA decreased 8.4% to CLP 50,299 million and the Normalized EBITDA margin decreased from 27.1% to 22.4%.

Comments We increased prices across all of our categories in Chile during March and April. Value-adding innovations continued during this first quarter with good results. We launched a renewed image for Escudo and a limited edition packaging for Cristal. We launched the new Kem Extreme Ice functional drink, Cachantun Mas Granada in the flavored waters portfolio, a flavored pisco extension for Control C Manzana and new packaging for Mistral. These innovations will help us to strengthen our market position as well as lead per capita consumption.

Finally, headwinds coming from a weaker Chilean peso, higher inflation in the quarter and uncertainties from possible tax reforms will be tackled with excellence in the execution, branding and pricing efforts supported by cost savings.

 

 

 

 

 

 

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 7 of 17

 

 

 

2.    RIO DE LA PLATA

 

Net sales, measured in Chilean pesos, increased 5.3% to CLP 76,584  million as a result of 0.3% increase in average prices, partially compensated by 5.0% higher sales volume. Organically, Net sales decreased 4.1% as a result of 3.1% lower sales volumes, coupled by lower prices measured in CLP terms.

Normalized EBIT measured in Chilean pesos, decreased 27.3% to CLP 6,526 million. Organically, it decreased 29.7% as a result of 6.9% lower Gross profit due to higher Cost of sales as of Argentinian peso devaluation, partially compensated by 0.7% decrease in MSD&A expenses. Organically, Cost of sales as a percentage of Net sales, increased from 38.3% to 40.1%. Organic Normalized EBIT margin decreased from 12.3% to 9.0%.

Normalized EBITDA, measured in Chilean pesos, decreased 21.1% to CLP 9,016 million and Normalized EBITDA margin decreased from 15.7% to 11.8%. Organically, Normalized EBITDA decreased 26.3% and the Normalized EBITDA margin decreased from 15.7% to 12.1%

Comments Lower results in the Rio de la Plata Operating segment were mainly explained by the Argentinean operation which faced negative external conditions such as a slowdown in private consumption, higher inflation and strong currency devaluation. Lower private consumption and government restrictions on our imported products portfolio affected our volumes. Price increases did not compensate the cost increase due to inflationary pressures and the currency devaluation. In fact, against the US Dollar the Argentinean peso devaluated by 23.2% during the quarter and 56.2% against the first quarter of 2013.

Overall, the integration of the new acquired operations is progressing well and in line with management plans.

 

 

 

 

 

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 8 of 17

 

 

 

 

3.    WINE 

 

Net sales increased 24.9% to CLP 36,371 million due to 13.2% higher average price coupled by 10.3 % higher sales volumes.

Normalized EBIT increased 1,212% to CLP 5,328 million mainly due to higher average prices, the positive effect of the devaluation of the Chilean peso in the export side of the business and lower Cost of sales on a per unit basis, due to lower cost of wine. MSD&A expenses increased 14.5% mainly due to higher marketing expenses and distribution costs. Normalized EBIT margin increased from 1.4% to 14.7%.

Normalized EBITDA increased 257.2% to CLP 7,021 million and the Normalized EBITDA margin increased from 6.7% to 19.3%. Excluding the impact of a higher exchange rate, representing CLP 2,421  million, the Normalized EBITDA grew 134.0%.

 

Comments VSPT outstanding sales performance during the first quarter 2014 was positively influenced by a good performance in Export and Domestic markets. Consolidated average price increased by 13.2% in CLP terms. In the export side of the business, price increased by 2.5% in USD terms. VSPT was positively affected by the depreciation of the Chilean peso against the US Dollar, with a positive CLP 2,421 million at EBITDA level as the FX increased by 16.8% on a yearly basis.

Our premium portfolio was awarded this quarter, Castillo de Molina Pinot Noir was recognized as “Wine of the Year” in Finland, and our wine 1865 Single Vineyard Cabernet Sauvignon scored 91 points in “Wine Spectator”.

 

 

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 9 of 17
 

 

 

FURTHER INFORMATION AND EXHIBITS

 

ABOUT CCU

 

CCU is a diversified beverage company operating principally in Chile, Argentina, Uruguay and Paraguay. CCU is the largest Chilean brewer, the second-largest Chilean soft drinks producer and the largest Chilean water and nectar producer, the second-largest Argentine brewer, the second-largest Chilean wine producer and the largest pisco distributor. It also participates in the HOD, rum and confectionery industries in Chile, in the beer, water and soft drinks industries in Uruguay, and in the soft drinks, water and nectar industries and beer distribution in Paraguay. The Company has licensing agreements with Heineken Brouwerijen B.V., Anheuser-Busch Incorporated, PepsiCo Inc., Schweppes Holdings Limited, Guinness Brewing Worldwide Limited, Société des Produits Nestlé S.A., Pernod Ricard and Compañía Pisquera Bauzá S.A.

 

CAUTIONARY STATEMENT

 

Statements made in this press release that relate to CCU’s future performance or financial results are forward-looking statements, which involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ. We undertake no obligation to update any of these statements. Persons reading this press release are cautioned not to place undue reliance on these forward-looking statements. These statements should be taken in conjunction with the additional information about risk and uncertainties set forth in CCU’s annual report on Form 20-F filed with the US Securities and Exchange Commission and in the annual report submitted to the SVS and available in our web page.

 

GLOSSARY

 

Operating segments

The Operating segments are defined with respect to its revenues in the geographic areas of commercial activity:

 

·         Chile: This segment commercializes Beer, Non Alcoholic Beverages and Spirits in the Chilean market.

·         Rio de la Plata: This segment commercializes Beer, Cider, Non Alcoholic Beverages and Spirits in the Argentinean, Uruguayan and Paraguayan market.

·         Wine: This segment commercializes Wine, mainly in the export market reaching over 80 countries.

·         Other/Eliminations:  It considers the non-allocated corporate overhead expenses and the result of the logistics subsidiary.

 

Cost of sales

Formerly referred to as Cost of Goods Sold (COGS), Cost of sales includes direct costs and manufacturing expenses.

 

Earnings Per Share (EPS)

Net profit divided by the weighted average number of shares during the year.

 

EBIT

Stands for Earnings Before Interest and Taxes, and for management purposes it is defined, as earnings before other gains (losses), net financial expenses, equity and income of joint ventures, foreign currency exchange differences, results as per adjustment units and income taxes. EBIT is equivalent to Operating Result used in the 20-F Form.

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 10 of 17
 

 

 

EBITDA

EBITDA represents EBIT plus depreciation and amortization. EBITDA is not an accounting measure under IFRS. When analyzing the operating performance, investors should use EBITDA in addition to, not as an alternative for Net income, as this item is defined by IFRS. Investors should also note that CCU’s presentation of EBITDA may not be comparable to similarly titled indicators used by other companies. EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization), used in the 20-F Form.

 

Exceptional Items (EI)

Formerly referred to as Non recurring items (NRI), Exceptional items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are important for the understanding of the underlying sustainable performance of the Company due to their size or nature.

 

Marketing, Selling, Distribution and Administrative expenses (MSD&A)

MSD&A include marketing, selling, distribution and administrative expenses.

 

Net Debt

Total financial debt minus cash & cash equivalents.

 

Net Debt / EBITDA

The ratio is based on a twelve month rolling calculation for EBITDA.

 

Net income

Net profit attributable to parent company shareholder as per IFRS.

 

Normalized

The term “normalized” refers to performance measures (EBITDA, EBIT, Net income, EPS) before exceptional items.

 

Organic growth  

Organic growth refers to growth excluding the effect of consolidation changes and the effect of first time consolidation an acquisition.

 

UF

The UF is a monetary unit indexed to the CPI variation.

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 11 of 17

 

 

 

Exhibit 1: Income Statement (First Quarter 2014)

First Quarter

2014

2013

2014

2013

Total

Organic

 

(CLP million)

(USD million)(1)

Change %

Change %

Net sales

334,811

304,100

607

551

10.1

7.9

Cost of sales

(149,027)

(129,916)

(270)

(235)

14.7

11.3

% of net sales

44.5

42.7

44.5

42.7

-

-

Gross profit

185,784

174,184

337

316

6.7

5.3

MSD&A

(131,759)

(116,853)

(239)

(212)

12.8

10.9

% of net sales

39.4

38.4

0.1

0.1

-

-

Other operating income/(expenses)

1,992

700

4

1

184.7

184.0

Normalized EBIT

56,017

58,031

101

105

(3.5)

(3.9)

% of net sales

16.7

19.1

16.7

19.1

-

-

Exceptional items

-

-

-

-

-

-

EBIT

56,017

58,031

101

105

(3.5)

(3.9)

% of net sales

16.7

19.1

16.7

19.1

-

-

Net financial expenses

(1,281)

(3,939)

(2)

(7)

(67.5)

(36.1)

Equity and income of JVs

(73)

(24)

(0)

(0)

196.7

196.7

Foreign currency exchange differences

(1,251)

(118)

(2)

(0)

957.6

978.6

Results as per adjustment units

(1,188)

(209)

(2)

(0)

468.1

468.1

Other gains/(losses)

1,284

(191)

2

(0)

(773.0)

(773.0)

Total Non-operating result

(2,509)

(4,481)

(5)

(8)

(44.0)

(15.9)

Income/(loss) before taxes

53,508

53,550

97

97

(0.1)

(0.5)

Income taxes

(9,286)

(11,448)

(17)

(21)

(18.9)

(18.9)

Net income for the year

44,222

42,102

80

76

5.0

4.5

 

 

 

 

 

 

 

Normalized net income attributable to:

 

 

 

 

 

 

The equity holders of the parent

40,568

40,315

74

73

0.6

0.3

 

 

 

 

 

 

 

Net income attributable to:

 

 

 

 

 

 

The equity holders of the parent

40,568

40,315

74

73

0.6

0.3

Non-controlling interest

3,654

1,787

7

3

104.5

110.9

 

 

 

 

 

 

 

Normalized EBITDA

72,330

73,204

131

133

(1.2)

(2.0)

% of net sales

21.6

24.1

21.6

24.1

-

-

EBITDA

72,330

73,204

131

133

(1.2)

(2.0)

% of net sales

21.6

24.1

21.6

24.1

-

-

 

 

 

 

 

 

 

OTHER INFORMATION

 

 

 

 

 

 

Number of shares(2)

369,502,872

318,502,872

369,502,872

318,502,872

 

 

Shares per ADR

2

2

2

2

 

 

 

 

 

 

 

 

 

Normalized Earnings per share

109.79

126.58

0.20

0.23

(13.3)

(13.5)

Earnings per share

109.79

126.58

0.20

0.23

(13.3)

(13.5)

Normalized Earnings per ADR

219.58

253.16

0.40

0.46

(13.3)

(13.5)

Earnings per ADR

219.58

253.16

0.40

0.46

(13.3)

(13.5)

 

 

 

 

 

 

 

Depreciation

16,313

15,173

30

27

7.5

5.0

Capital Expenditures

28,020

23,565

51

43

18.9

18.9

(1) Average Exchange rate for the period: US$1.00 = CLP 551.91

(2) Considers period weighted average shares according to capital increase as of December 31, 2013.

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 12 of 17
 

 

 

Exhibit 2: Segment Information (First Quarter 2014)

 

1. Chile Operating segment

 

2. Río de la Plata Operating segment

 

3. Wine Operating segment

First Quarter

 

 

(In ThHL or CLP million unless stated otherwise)

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

Volumes

4,553

4,273

6.6

6.6

 

1,496

1,425

5.0

(3.1)

 

280

254

10.3

10.3

Net sales

224,717

202,654

10.9

10.9

 

76,584

72,748

5.3

(4.1)

 

36,371

29,127

24.9

24.9

Net sales (CLP/HL)

49,350

47,432

4.0

4.0

 

51,205

51,057

0.3

(1.0)

 

129,904

114,719

13.2

13.2

Cost of sales

(101,688)

(86,434)

17.6

17.6

 

(32,350)

(27,829)

16.2

0.5

 

(20,538)

(19,369)

6.0

6.0

% of net sales

45.3

42.7

 

 

 

42.2

38.3

 

 

 

56.5

66.5

 

 

Gross profit

123,030

116,220

5.9

5.9

 

44,233

44,919

(1.5)

(6.9)

 

15,834

9,758

62.3

62.3

% of net sales

54.7

57.3

 

 

 

57.8

61.7

 

 

 

43.5

33.5

 

 

MSD&A

(82,509)

(70,719)

16.7

16.7

 

(38,056)

(36,102)

5.4

(0.7)

 

(10,825)

(9,450)

14.5

14.5

% of net sales

36.7

34.9

 

 

 

49.7

49.6

 

 

 

29.8

32.4

 

 

Other operating income/(expenses)

247

411

(40.0)

(40.0)

 

348

157

121.7

118.5

 

320

98

225.0

225.0

Normalized EBIT

40,768

45,913

(11.2)

(11.2)

 

6,526

8,974

(27.3)

(29.7)

 

5,328

406

N/A

N/A

Normalized EBIT margin (%)

18.1

22.7

 

 

 

8.5

12.3

 

 

 

14.7

1.4

 

 

Exceptional items

-

-

-

-

 

-

-

-

-

 

-

-

-

-

Normalized EBITDA

50,299

54,927

(8.4)

(8.4)

 

9,016

11,421

(21.1)

(26.3)

 

7,021

1,966

257.2

257.2

Normalized EBITDA margin (%)

22.4

27.1

 

 

 

11.8

15.7

 

 

 

19.3

6.7

 

 

         

 

        

 

        

 

4. Other/eliminations

 

Total

 

        

First Quarter

 

 

        

(In ThHL or CLP million unless stated otherwise)

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

 

        

Volumes

-

-

 

 

 

6,329

5,951

6.3

4.4

 

        

Net sales

(2,861)

(429)

N/A

N/A

 

334,811

304,100

10.1

7.9

 

        

Net sales (CLP/HL)

 

 

 

 

 

52,900

51,099

3.5

3.3

 

        

Cost of sales

5,549

3,716

49.3

49.3

 

(149,027)

(129,916)

14.7

11.3

 

        

% of net sales

 

  

 

 

 

44.5

42.7

 

 

 

        

Gross profit

2,688

3,287

(18.2)

(18.2)

 

185,784

174,184

6.7

5.3

 

        

% of net sales

 

 

 

 

 

55.5

57.3

 

 

 

        

MSD&A

(370)

(581)

(36.4)

(36.4)

 

(131,759)

(116,853)

12.8

10.9

 

        

% of net sales

 

  

 

 

 

39.4

38.4

 

 

 

        

Other operating income/(expenses)

1,077

33

N/A

N/A

 

1,992

700

184.7

184.0

 

        

Normalized EBIT

3,395

2,738

24.0

24.0

 

56,017

58,031

(3.5)

(3.9)

 

        

Normalized EBIT margin (%)

 

 

 

 

 

16.7

19.1

 

 

 

        

Exceptional items

-

-

-

-

 

-

-

-

-

 

        

Normalized EBITDA

5,994

4,889

22.6

22.6

 

72,330

73,204

(1.2)

(2.0)

 

        

Normalized EBITDA margin (%)

 

 

 

 

 

21.6

24.1

 

 

 

        

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 13 of 17
 

 

Exhibit 3: Balance Sheet

 

March 31

December 31

March 31

December 31

 

Total Change%

 

2014

2013

2014

2013

 

 

(CLP million)

(US$ million)(1)

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

348,044

408,853

631

742

 

(14.9)

Other current assets

374,048

409,644

679

743

 

(8.7)

Total current assets

722,091

818,497

1,310

1,485

 

(11.8)

 

 

 

 

 

 

 

PP&E (net)

682,698

680,994

1,239

1,236

 

0.3

Other non current assets

225,226

228,229

409

414

 

(1.3)

Total non current assets

907,925

909,223

1,647

1,650

 

(0.1)

Total assets

1,630,016

1,727,720

2,957

3,135

 

(5.7)

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Short term financial debt

54,015

120,488

98

219

 

(55.2)

Other liabilities

258,135

288,641

468

524

 

(10.6)

Total current liabilities

312,150

409,129

566

742

 

(23.7)

 

 

 

 

 

 

 

Long term financial debt

137,831

142,763

250

259

 

(3.5)

Other liabilities

87,765

91,584

159

166

 

(4.2)

Total non current liabilities

225,596

234,347

409

425

 

(3.7)

Total Liabilities

537,746

643,476

976

1,167

 

(16.4)

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Paid-in capital

562,693

562,693

1,021

1,021

 

-

Other reserves

(79,484)

(65,882)

(144)

(120)

 

(20.6)

Retained earnings

512,288

491,864

929

892

 

4.2

Net equity attributable to parent company shareholders

995,497

988,676

1,806

1,794

 

0.7

Minority interest

96,773

95,568

176

173

 

1.3

Total equity

1,092,270

1,084,244

1,982

1,967

 

0.7

Total equity and liabilities

1,630,016

1,727,720

2,957

3,135

 

(5.7)

         

 

  

OTHER FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financial debt

191,846

263,251

348

478

 

(27.1)

 

 

 

 

 

 

 

Net Financial debt

(156,198)

(145,602)

(283)

(264)

 

7.3

 

 

 

 

 

 

 

Liquidity ratio

2.31

2.00

 

 

 

 

Financial Debt / Capitalization

0.15

0.20

 

 

 

 

Net Financial debt / EBITDA

(0.62)

(0.58)

 

 

 

 

(1) Exchange rate as of March 31, 2014: US$1.00 = CLP 551.18

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 14 of 17
 

 

PROFORMA FINANCIAL REPORTING STRUCTURE

 

 

As we have mentioned in press releases during 2013, CCU determined that starting in 2014 it will report its consolidated results pursuant to the following operating segments, essentially defined with respect to its revenues in the geographic areas of commercial activity: Chile9, Río de la Plata10 and Wine11. Corporate revenues and expenses are presented separately within the Other12.

 

These operating segments mentioned are consistent with the way the Company is managed and how results will be reported by CCU. These segments reflect separate operating results which are regularly reviewed by each segment chief operating decision maker in order to make decisions about the resources to be allocated to the segment and assess its performance.

 

We will evaluate the performance of the segments based on several indicators, including EBIT, EBITDA, EBITDA margin, volumes and sales revenues. Sales between segments are conducted using terms and conditions at current market rates.

 

The following tables detail historical information regarding the Operating segments mentioned above.

 

 

 

 

 

 

 

 

 

                                                 

9 Chile: This segment commercializes Beers, Non Alcoholic Beverages and Spirits in the Chilean market.

10 Rio de la Plata: This segment commercializes Beers, Ciders, Non Alcoholic Beverages and Spirits in the Argentine, Uruguayan and Paraguayan market.

11 Wine: This segment commercializes wine, mainly in the export market reaching over 80 countries.

12 Other/Eliminations: Considers the non-allocated corporate overhead expenses and the result of the logistics subsidiary.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 15 of 17
 

 

 

1. Chile Business segment

 

2011

 

2012

 

2013

(In ThHL or CLP million unless stated otherwise)

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

Volumes

3,448

2,488

2,758

3,909

12,604

 

3,895

2,812

2,967

4,170

13,844

 

4,273

3,141

3,414

4,740

15,568

Net sales

161,732

119,888

136,336

194,505

612,462

 

186,671

136,725

149,347

203,786

676,529

 

202,654

155,461

172,248

234,833

765,196

Net sales (CLP/HL)

46,906

48,189

49,438

49,758

48,593

 

47,931

48,620

50,327

48,870

48,867

 

47,430

49,495

50,459

49,546

49,153

Cost of sales

(69,750)

(57,264)

(62,706)

(82,861)

(272,581)

 

(83,140)

(68,506)

(70,091)

(86,621)

(308,359)

 

(86,434)

(73,722)

(79,754)

(103,320)

(343,230)

% of net sales

43.1

47.8

46.0

42.6

44.5

 

44.5

50.1

46.9

42.5

45.6

 

(42.7)

(47.4)

(46.3)

(44.0)

(44.9)

Gross profit

91,982

62,624

73,631

111,644

339,881

 

103,531

68,219

79,256

117,165

368,170

 

116,220

81,738

92,493

131,513

421,965

% of net sales

56.9

52.2

54.0

57.4

55.5

 

55.5

49.9

53.1

57.5

54.4

 

57.3

52.6

53.7

56.0

55.1

MSD&A

(51,137)

(43,738)

(46,487)

(60,767)

(202,130)

 

(60,540)

(49,366)

(52,377)

(69,413)

(231,696)

 

(70,719)

(57,784)

(62,133)

(84,567)

(275,203)

% of net sales

31.6

36.5

34.1

31.2

33.0

 

32.4

36.1

35.1

34.1

34.2

 

34.9

37.2

36.1

36.0

36.0

Other operating income/(expenses)

948

(100)

246

818

1,912

 

115

(121)

576

1,176

1,746

 

411

(70)

142

902

1,385

Normalized EBIT

41,793

18,785

27,389

51,695

139,663

 

43,106

18,732

27,454

48,928

138,221

 

45,913

23,884

30,502

47,849

148,148

Normalized EBIT margin (%)

25.8

15.7

20.1

26.6

22.8

 

23.1

13.7

18.4

24.0

20.4

 

22.7

15.4

17.7

20.4

19.4

Exceptional items

6,872

-

-

-

6,872

 

-

-

-

-

-

 

-

-

-

(780)

(780)

EBIT

48,664

18,785

27,389

51,695

146,535

 

43,106

18,732

27,454

48,928

138,221

 

45,913

23,884

30,502

47,068

147,367

% of net sales

30.1

15.7

20.1

26.6

23.9

 

23.1

13.7

18.4

24.0

20.4

 

22.7

15.4

17.7

20.0

19.3

Normalized EBITDA

48,589

25,927

34,630

58,987

168,133

 

50,575

27,072

35,977

57,882

171,506

 

54,927

33,208

39,695

57,851

185,682

Normalized EBITDA margin (%)

30.0

21.6

25.4

30.3

27.5

 

27.1

19.8

24.1

28.4

25.4

 

27.1

21.4

23.0

24.6

24.3

EBITDA

55,461

25,927

34,630

58,987

175,004

 

50,575

27,072

35,977

57,882

171,506

 

54,927

33,208

39,695

57,071

184,902

% of net sales

34.3

21.6

25.4

30.3

28.6

 

27.1

19.8

24.1

28.4

25.4

 

27.1

21.4

23.0

24.3

24.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2. Rio de la Plata Business segment

 

2011

 

2012

 

2013

(In ThHL or CLP million unless stated otherwise)

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

Volumes

1,271

851

937

1,522

4,581

 

1,263

779

1,014

1,733

4,789

 

1,425

874

1,091

1,683

5,072

Net sales

52,887

36,848

45,643

85,525

220,903

 

63,956

41,089

55,322

93,459

253,826

 

72,748

45,939

62,530

101,218

282,435

Net sales (CLP/HL)

41,610

43,300

48,712

56,193

48,222

 

50,639

52,777

54,534

53,918

52,998

 

51,052

52,561

57,315

60,131

55,682

Cost of sales

(20,737)

(16,721)

(20,773)

(33,006)

(91,237)

 

(24,216)

(16,750)

(23,182)

(35,884)

(100,033)

 

(27,829)

(20,774)

(27,212)

(37,450)

(113,265)

% of net sales

39.2

45.4

45.5

38.6

41.3

 

37.9

40.8

41.9

38.4

39.4

 

38.3

45.2

43.5

37.0

40.1

Gross profit

32,150

20,127

24,870

52,519

129,666

 

39,740

24,339

32,140

57,575

153,794

 

44,919

25,165

35,318

63,768

169,171

% of net sales

60.8

54.6

54.5

61.4

58.7

 

62.1

59.2

58.1

61.6

60.6

 

61.7

54.8

56.5

63.0

59.9

MSD&A

(23,091)

(18,115)

(22,249)

(36,958)

(100,413)

 

(29,649)

(25,795)

(29,710)

(40,896)

(126,049)

 

(36,102)

(29,386)

(34,869)

(42,614)

(142,972)

% of net sales

43.7

49.2

48.7

43.2

45.5

 

46.4

62.8

53.7

43.8

49.7

 

49.6

64.0

55.8

42.1

50.6

Other operating income/(expenses)

72

92

(240)

24

(52)

 

95

(119)

102

234

313

 

157

199

304

378

1,038

Normalized EBIT

9,131

2,104

2,381

15,585

29,201

 

10,187

(1,574)

2,532

16,913

28,057

 

8,974

(4,023)

753

21,532

27,237

Normalized EBIT margin (%)

17.3

5.7

5.2

18.2

13.2

 

15.9

(3.8)

4.6

18.1

11.1

 

12.3

(8.8)

1.2

21.3

9.6

Exceptional items

-

-

(440)

56

(384)

 

-

-

-

-

-

 

-

-

-

(543)

(543)

EBIT

9,131

2,104

1,941

15,641

28,817

 

10,187

(1,574)

2,532

16,913

28,057

 

8,974

(4,023)

753

20,989

26,693

% of net sales

17.3

5.7

4.3

18.3

13.0

 

15.9

(3.8)

4.6

18.1

11.1

 

12.3

(8.8)

1.2

20.7

9.5

Normalized EBITDA

10,545

3,502

3,843

17,209

35,099

 

11,781

119

4,262

18,918

35,080

 

11,421

(1,507)

3,462

23,817

37,194

Normalized EBITDA margin (%)

19.9

9.5

8.4

20.1

15.9

 

18.4

0.3

7.7

20.2

13.8

 

15.7

(3.3)

5.5

23.5

13.2

EBITDA

10,545

3,502

3,403

17,265

34,715

 

11,781

119

4,262

18,918

35,080

 

11,421

(1,507)

3,462

23,274

36,651

% of net sales

19.9

9.5

7.5

20.2

15.7

 

18.4

0.3

7.7

20.2

13.8

 

15.7

(3.3)

5.5

23.0

13.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3. Wine Business segment

 

2011

 

2012

 

2013

(In ThHL or CLP million unless stated otherwise)

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

Volumes

251

314

343

304

1,212

 

266

346

356

308

1,276

 

254

353

364

303

1,274

Net sales

28,437

35,102

38,330

36,479

138,348

 

31,199

40,690

39,862

37,806

149,557

 

29,127

42,053

42,628

38,447

152,255

Net sales (CLP/HL)

113,137

111,731

111,875

119,997

114,149

 

117,362

117,568

112,118

122,614

117,226

 

114,722

119,182

117,119

126,691

119,493

Cost of sales

(18,574)

(23,480)

(25,268)

(22,527)

(89,850)

 

(21,250)

(26,952)

(24,481)

(22,952)

(95,635)

 

(19,369)

(26,868)

(25,044)

(21,584)

(92,864)

% of net sales

65.3

66.9

65.9

61.8

64.9

 

68.1

66.2

61.4

60.7

63.9

 

66.5

63.9

58.7

56.1

61.0

Gross profit

9,864

11,621

13,062

13,952

48,498

 

9,949

13,738

15,381

14,855

53,922

 

9,758

15,185

17,585

16,863

59,391

% of net sales

34.7

33.1

34.1

38.2

35.1

 

31.9

33.8

38.6

39.3

36.1

 

33.5

36.1

41.3

43.9

39.0

MSD&A

(8,908)

(9,775)

(10,677)

(10,882)

(40,242)

 

(9,291)

(10,662)

(11,454)

(11,768)

(43,175)

 

(9,450)

(11,322)

(12,679)

(12,585)

(46,036)

% of net sales

31.3

27.8

27.9

29.8

29.1

 

29.8

26.2

28.7

31.1

28.9

 

32.4

26.9

29.7

32.7

30.2

Other operating income/(expenses)

96

63

411

1,596

2,166

 

189

47

69

2

306

 

98

(29)

(85)

(150)

(166)

Normalized EBIT

1,052

1,909

2,796

4,666

10,422

 

846

3,123

3,996

3,088

11,053

 

406

3,834

4,820

4,128

13,189

Normalized EBIT margin (%)

3.7

5.4

7.3

12.8

7.5

 

2.7

7.7

10.0

8.2

7.4

 

1.4

9.1

11.3

10.7

8.7

Exceptional items

5,861

-

606

-

6,467

 

-

-

-

-

-

 

-

-

-

(276)

(276)

EBIT

6,913

1,909

3,402

4,666

16,890

 

846

3,123

3,996

3,088

11,053

 

406

3,834

4,820

3,853

12,913

% of net sales

24.3

5.4

8.9

12.8

12.2

 

2.7

7.7

10.0

8.2

7.4

 

1.4

9.1

11.3

10.0

8.5

Normalized EBITDA

2,604

3,598

4,398

6,241

16,841

 

2,521

4,854

5,552

4,693

17,619

 

1,966

5,538

6,685

6,239

20,428

Normalized EBITDA margin (%)

9.2

10.2

11.5

17.1

12.2

 

8.1

11.9

13.9

12.4

11.8

 

6.7

13.2

15.7

16.2

13.4

EBITDA

8,465

3,598

5,005

6,241

23,308

 

2,521

4,854

5,552

4,693

17,619

 

1,966

5,538

6,685

5,963

20,152

% of net sales

29.8

10.2

13.1

17.1

16.8

 

8.1

11.9

13.9

12.4

11.8

 

6.7

13.2

15.7

15.5

13.2

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 16 of 17
 

 

 

4. Other / Eliminations

 

2011

 

2012

 

2013

(In ThHL or CLP million unless stated otherwise)

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

Volumes

-

-

-

-

-

 

-

-

-

-

-

 

-

-

-

-

-

Net sales

(794)

(449)

(267)

(653)

(2,162)

 

(347)

(485)

(555)

(2,835)

(4,223)

 

(429)

(6)

(692)

(1,533)

(2,660)

Net sales (CLP/HL)

-

-

-

-

-

 

-

-

-

-

-

 

-

-

-

-

-

Cost of sales

1,526

1,138

1,347

1,796

5,806

 

2,966

2,180

2,095

3,699

10,939

 

3,716

1,870

2,498

4,579

12,663

% of net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

732

689

1,080

1,143

3,644

 

2,619

1,694

1,540

863

6,716

 

3,287

1,864

1,806

3,046

10,003

% of net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MSD&A

476

(3,583)

(1,477)

(1,638)

(6,223)

 

165

(3,031)

(1,581)

124

(4,323)

 

(581)

(3,760)

(3,291)

(1,680)

(9,313)

% of net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other operating income/(expenses)

29

251

380

2,545

3,204

 

141

1,232

123

(31)

1,464

 

33

41

83

1,835

1,992

Normalized EBIT

1,237

(2,644)

(17)

2,049

626

 

2,925

(105)

81

956

3,857

 

2,738

(1,854)

(1,402)

3,200

2,682

Normalized EBIT margin (%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exceptional items

(49)

-

-

-

(49)

 

-

-

-

-

-

 

-

-

-

(1,390)

(1,390)

EBIT

1,188

(2,644)

(17)

2,049

576

 

2,925

(105)

81

956

3,857

 

2,738

(1,854)

(1,402)

1,810

1,292

% of net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Normalized EBITDA

2,993

(860)

1,607

3,882

7,622

 

5,021

1,681

2,071

2,970

11,743

 

4,889

694

964

5,651

12,198

Normalized EBITDA margin (%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

2,944

(860)

1,607

3,882

7,572

 

5,021

1,681

2,071

2,970

11,743

 

4,889

694

964

4,261

10,808

% of net sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

2011

 

2012

 

2013

(In ThHL or CLP million unless stated otherwise)

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

 

Q1

Q2

Q3

Q4

Full Year

Volumes

4,971

3,652

4,037

5,736

18,397

 

5,423

3,937

4,337

6,212

19,909

 

5,951

4,367

4,870

6,726

21,914

Net sales

242,263

191,389

220,042

315,857

969,551

 

281,480

218,019

243,976

332,216

1,075,690

 

304,100

243,446

276,715

372,966

1,197,227

Net sales (CLP/HL)

48,735

52,406

54,502

55,066

52,702

 

51,901

55,380

56,248

53,482

54,030

 

51,102

55,747

56,820

55,447

54,632

Cost of sales

(107,535)

(96,328)

(107,400)

(136,599)

(447,862)

 

(125,641)

(110,029)

(115,659)

(141,758)

(493,087)

 

(129,916)

(119,494)

(129,512)

(157,775)

(536,697)

% of net sales

44.4

50.3

48.8

43.2

46.2

 

44.6

50.5

47.4

42.7

45.8

 

42.7

49.1

46.8

42.3

44.8

Gross profit

134,728

95,061

112,643

179,258

521,689

 

155,838

107,990

128,316

190,458

582,603

 

174,184

123,952

147,203

215,191

660,530

% of net sales

55.6

49.7

51.2

56.8

53.8

 

55.4

49.5

52.6

57.3

54.2

 

57.3

50.9

53.2

57.7

55.2

MSD&A

(82,660)

(75,211)

(80,890)

(110,246)

(349,007)

 

(99,314)

(88,853)

(95,123)

(121,953)

(405,243)

 

(116,853)

(102,252)

(112,973)

(141,446)

(473,524)

% of net sales

34.1

39.3

36.8

34.9

36.0

 

35.3

40.8

39.0

36.7

37.7

 

38.4

42.0

40.8

37.9

39.6

Other operating income/(expenses)

1,144

305

797

4,984

7,230

 

540

1,039

870

1,380

3,828

 

700

141

443

2,965

4,249

Normalized EBIT

53,212

20,155

32,550

73,995

179,912

 

57,064

20,176

34,063

69,885

181,188

 

58,031

21,841

34,673

76,710

191,255

Normalized EBIT margin (%)

22.0

10.5

14.8

23.4

18.6

 

20.3

9.3

14.0

21.0

16.8

 

19.1

9.0

12.5

20.6

16.0

Exceptional items

12,683

-

166

56

12,905

 

-

-

-

-

-

 

-

-

-

(2,989)

(2,989)

EBIT

65,896

20,155

32,716

74,052

192,818

 

57,064

20,176

34,063

69,885

181,188

 

58,031

21,841

34,673

73,720

188,266

% of net sales

27.2

10.5

14.9

23.4

19.9

 

20.3

9.3

14.0

21.0

16.8

 

19.1

9.0

12.5

19.8

15.7

Normalized EBITDA

64,732

32,166

44,478

86,318

227,694

 

69,897

33,726

47,862

84,464

235,948

 

73,204

37,932

50,807

93,559

255,502

Normalized EBITDA margin (%)

26.7

16.8

20.2

27.3

23.5

 

24.8

15.5

19.6

25.4

21.9

 

24.1

15.6

18.4

25.1

21.3

EBITDA

77,415

32,166

44,644

86,374

240,600

 

69,897

33,726

47,862

84,464

235,948

 

73,204

37,932

50,807

90,569

252,512

% of net sales

32.0

16.8

20.3

27.3

24.8

 

24.8

15.5

19.6

25.4

21.9

 

24.1

15.6

18.4

24.3

21.1

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU

 Page 17 of 17
   
 

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Compañía Cervecerías Unidas S.A.
(United Breweries Company, Inc.)

  /s/ Felipe Dubernet      
  Chief Financial Officer 
 

 

Date: May 7, 2014