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Financial Information as per operating segments | 12 Months Ended
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Dec. 31, 2019
Operating segments [Abstract] |
Disclosure of entity's operating segments [text block] | Note 6 Financial Information as per operating segments The Company has defined three Operating segments, essentially defined with respect to its revenues in the geographic areas of commercial activity: 1. Chile, 2. International business and 3.Wine. These Operating segments mentioned are consistent with the way the Company is managed and how results are reported by CCU. These segments reflect separate operating results which are regularly reviewed by the chief operating decision maker in order to make decisions about the resources to be allocated to the segment and assess its performance.
Operating segment | ‎ Products and services
Chile | Beers, non-alcoholic beverages, spirits and SSU.
International Business | Beers, cider, non-alcoholic beverages and spirits in Argentina, Uruguay, Paraguay and Bolivia.
Wines | Wines, mainly in export markets to more 80 countries.
Corporate revenues and expenses are presented separately within the Other, in addition in the other presents the elimination of transactions between segments. The Company does not have any customers representing more than 10% of consolidated revenues. The detail of the segments is presented in the following tables: a) Information as per operating segments for the years ended December 31, 2019 and 2018 :
| Chile | International Business | Wines | Others | Total
| 2019 | 2018 | 2019 | 2018 (4) | 2019 | 2018 | 2019 | 2018 (4) | 2019 | 2018 (5)
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$
Sales revenue external customers | 1,134,048,629 | 1,080,974,052 | 452,267,652 | 473,972,819 | 203,230,777 | 201,305,759 | - | - | 1,789,547,058 | 1,756,252,630
Other income | 16,438,937 | 15,754,493 | 11,724,538 | 9,404,839 | 3,806,545 | 4,190,594 | 1,023,619 | (2,320,219) | 32,993,639 | 27,029,707
Sales revenue between segments | 13,816,469 | 12,845,646 | 495,259 | 548,184 | 5,284,436 | 1,022,378 | (19,596,164) | (14,416,208) | - | -
Net sales | 1,164,304,035 | 1,109,574,191 | 464,487,449 | 483,925,842 | 212,321,758 | 206,518,731 | (18,572,545) | (16,736,427) | 1,822,540,697 | 1,783,282,337
Change % | 4.9 | - | (4.0) | - | 2.8 | - | - | - | 2.2 | -
Cost of sales | (540,048,331) | (501,255,744) | (248,880,925) | (230,068,601) | (128,763,785) | (133,271,578) | 9,374,851 | 4,584,531 | (908,318,190) | (860,011,392)
% of Net sales | 46.4 | 45.2 | 53.6 | 47.5 | 60.6 | 64.5 | - | - | 49.8 | 48.2
Gross margin | 624,255,704 | 608,318,447 | 215,606,524 | 253,857,241 | 83,557,973 | 73,247,153 | (9,197,694) | (12,151,896) | 914,222,507 | 923,270,945
% of Net sales | 53.6 | 54.8 | 46.4 | 52.5 | 39.4 | 35.5 | - | - | 50.2 | 51.8
MSD&A (1) | (429,093,171) | (407,242,869) | (210,155,693) | (210,591,361) | (55,595,811) | (52,408,689) | (9,726,563) | (11,332,903) | (704,571,238) | (681,575,822)
% of Net sales | 36.9 | 36.7 | 45.2 | 43.5 | 26.2 | 25.4 | - | - | 38.7 | 38.2
Other operating income (expenses) | 5,266,475 | 1,586,173 | 14,201,709 | 223,078,626 | 515,019 | 1,828,938 | 1,173,780 | 532,889 | 21,156,983 | 227,026,626
Adjusted operating result (2) | 200,429,008 | 202,661,751 | 19,652,540 | 266,344,506 | 28,477,181 | 22,667,402 | (17,750,477) | (22,951,910) | 230,808,252 | 468,721,749
Change % | (1.1) | - | (92.6) | - | 25.6 | - | - | - | (50.8) | -
% of Net sales | 17.2 | 18.3 | 4.2 | 55.0 | 13.4 | 11.0 | - | - | 12.7 | 26.3
Net financial expense | - | - | - | - | - | - | - | - | (14,602,562) | (7,766,206)
Equity and income of associates and joint ventures | - | - | - | - | - | - | - | - | (16,431,759) | (10,815,520)
Foreign currency exchange differences | - | - | - | - | - | - | - | - | (9,054,155) | 3,299,657
Results as per adjustment units | - | - | - | - | - | - | - | - | (8,255,001) | 742,041
Other gains (losses) | - | - | - | - | - | - | - | - | 3,156,799 | 4,029,627
Income before taxes |  |  |  |  |  |  |  |  | 185,621,574 | 458,211,348
Tax income (expense) |  |  |  |  |  |  |  |  | (39,975,914) | (136,126,817)
Net income for year |  |  |  |  |  |  |  |  | 145,645,660 | 322,084,531
Non-controlling interests |  |  |  |  |  |  |  |  | 15,503,968 | 15,193,739
Net income attributable to equity holders of the parent |  |  |  |  |  |  |  |  | 130,141,692 | 306,890,792
Depreciation and amortization | 66,301,914 | 63,148,804 | 27,077,745 | 19,798,708 | 9,826,148 | 7,935,006 | 1,815,127 | 2,406,676 | 105,020,934 | 93,289,194
ORBDA (3) | 266,730,922 | 265,810,555 | 46,730,285 | 286,143,214 | 38,303,329 | 30,602,408 | (15,935,350) | (20,545,234) | 335,829,186 | 562,010,943
Change % | 0.3 | - | (83.7) | - | 25.2 | - | - | - | (40.2) | -
% of Net sales | 22.9 | 24.0 | 10.1 | 59.1 | 18.0 | 14.8 | - | - | 18.4 | 31.5
(1) MSD&A included Marketing, Selling, Distribution and Administrative expenses. (2) Adjusted operating result (for management purposes we have defined as Net income before other gains (losses), net financial expense, equity and income of joint venture, foreign currency exchange differences, result as per adjustment units and income taxes). (3) ORBDA (for management purpose we have defined as Adjusted Operating Result before Depreciation and Amortization). (4) The net impact, related to early termination of Budweiser license, on International Business Operating segment earnings was a one-time gain of ThCh$ 211,228,960 in ORBDA and a loss in Other for an amount of ThCh$ 2,386,517. (5) The net impact, related to early termination of Budweiser license (See Note 1 – General information, letter C ), on CCU’s consolidated earnings was a one-time gain of ThCh$ 208,842,443 in ORBDA and ThCh$ 157,358,973 in Net income attributable to equity holder of the parent.
b) Information as per operating segments for the years ended December 31, 2018 and 2017 :
| Chile | International Business | Wines | Others | Total
| 2018 | 2017 | 2018 (4) | 2017 | 2018 | 2017 | 2018 (4) | 2017 | 2018 (5) | 2017
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$
Sales revenue external customers | 1,080,974,052 | 1,020,763,055 | 473,972,819 | 457,178,413 | 201,305,759 | 200,455,713 | - | - | 1,756,252,630 | 1,678,397,181
Other income | 15,754,493 | 14,667,777 | 9,404,839 | 2,740,533 | 4,190,594 | 3,105,064 | (2,320,219) | (549,761) | 27,029,707 | 19,963,613
Sales revenue between segments | 12,845,646 | 11,688,658 | 548,184 | 398,100 | 1,022,378 | 893,005 | (14,416,208) | (12,979,763) | - | -
Net sales | 1,109,574,191 | 1,047,119,490 | 483,925,842 | 460,317,046 | 206,518,731 | 204,453,782 | (16,736,427) | (13,529,524) | 1,783,282,337 | 1,698,360,794
Change % | 6.0 | - | 5.1 | - | 1.0 | - | - | - | 5.0 | -
Cost of sales | (501,255,744) | (483,604,499) | (230,068,601) | (190,387,412) | (133,271,578) | (126,244,373) | 4,584,531 | 1,497,629 | (860,011,392) | (798,738,655)
% of Net sales | 45.2 | 46.2 | 47.5 | 41.4 | 64.5 | 61.7 | - | - | 48.2 | 47.0
Gross margin | 608,318,447 | 563,514,991 | 253,857,241 | 269,929,634 | 73,247,153 | 78,209,409 | (12,151,896) | (12,031,895) | 923,270,945 | 899,622,139
% of Net sales | 54.8 | 53.8 | 52.5 | 58.6 | 35.5 | 38.3 | - | - | 51.8 | 53.0
MSD&A (1) | (407,242,869) | (383,169,121) | (210,591,361) | (225,341,789) | (52,408,689) | (53,941,735) | (11,332,903) | (6,330,835) | (681,575,822) | (668,783,480)
% of Net sales | 36.7 | 36.6 | 43.5 | 49.0 | 25.4 | 26.4 | - | - | 38.2 | 39.4
Other operating income (expenses) | 1,586,173 | 2,438,416 | 223,078,626 | 678,153 | 1,828,938 | 251,765 | 532,889 | 687,209 | 227,026,626 | 4,055,543
Adjusted operating result (2) | 202,661,751 | 182,784,286 | 266,344,506 | 45,265,998 | 22,667,402 | 24,519,439 | (22,951,910) | (17,675,521) | 468,721,749 | 234,894,202
Change % | 10.9 | - | 488.4 | - | (7.6) | - | - | - | 99.5 | -
% of Net sales | 18.3 | 17.5 | 55.0 | 9.8 | 11.0 | 12.0 | - | - | 26.3 | 13.8
Net financial expense | - | - | - | - | - | - | - | - | (7,766,206) | (19,115,361)
Equity and income of associates and joint ventures | - | - | - | - | - | - | - | - | (10,815,520) | (8,914,097)
Foreign currency exchange differences | - | - | - | - | - | - | - | - | 3,299,657 | (2,563,019)
Results as per adjustment units | - | - | - | - | - | - | - | - | 742,041 | (110,539)
Other gains (losses) | - | - | - | - | - | - | - | - | 4,029,627 | (7,716,791)
Income before taxes |  |  |  |  |  |  |  |  | 458,211,348 | 196,474,395
Tax income (expense) |  |  |  |  |  |  |  |  | (136,126,817) | (48,365,976)
Net income for year |  |  |  |  |  |  |  |  | 322,084,531 | 148,108,419
Non-controlling interests |  |  |  |  |  |  |  |  | 15,193,739 | 18,501,066
Net income attributable to equity holders of the parent |  |  |  |  |  |  |  |  | 306,890,792 | 129,607,353
Depreciation and amortization | 63,148,804 | 64,807,818 | 19,798,708 | 15,568,301 | 7,935,006 | 7,505,440 | 2,406,676 | 4,317,945 | 93,289,194 | 92,199,504
ORBDA (3) | 265,810,555 | 247,592,104 | 286,143,214 | 60,834,299 | 30,602,408 | 32,024,879 | (20,545,234) | (13,357,576) | 562,010,943 | 327,093,706
Change % | 7.4 | - | 370.4 | - | (4.4) | - | - | - | 71.8 | -
% of Net sales | 24.0 | 23.6 | 59.1 | 13.2 | 14.8 | 15.7 | - | - | 31.5 | 19.3
(1) MSD&A included Marketing, Selling, Distribution and Administrative expenses. (2) Adjusted operating result (for management purposes we have defined as Net income before other gains (losses), net financial expense, equity and income of joint venture, foreign currency exchange differences, result as per adjustment units and income taxes). (3) ORBDA (for management purpose we have defined as Adjusted Operating Result before Depreciation and Amortization). (4) The net impact, related to early termination of Budweiser license, on International Business Operating segment earnings was a one-time gain of ThCh$ 211,228,960 in ORBDA and a loss in Other for an amount of ThCh$ 2,386,517. (5) The net impact, related to early termination of Budweiser license (See Note 1 – General information, letter C ), on CCU’s consolidated earnings was a one-time gain of ThCh$ 208,842,443 in ORBDA and ThCh$ 157,358,973 in Net income attributable to equity holder of the parent. Sales information by geographic location
Net sales per geographical location | For the years ended as of December 31,
2019 | 2018 | 2017
ThCh$ | ThCh$ | ThCh$
Chile (1) | 1,342,369,499 | 1,289,513,013 | 1,226,668,091
Argentina (2) | 390,443,569 | 421,607,095 | 413,466,737
Uruguay | 17,805,957 | 17,708,773 | 16,402,136
Paraguay | 47,148,643 | 43,565,171 | 41,823,830
Bolivia (3) | 24,773,029 | 10,888,285 | -
Foreign countries | 480,171,198 | 493,769,324 | 471,692,703
Total | 1,822,540,697 | 1,783,282,337 | 1,698,360,794
(1) Includes net sales correspond to Corporate Support Unit and eliminations between geographical locations. Additionally, includes net sales made in Chile of the Wines Operating segment. (2) Includes net sales made by the subsidiaries Finca La Celia S.A. and Los Huemules SRL., registered under the Wines Operating segment and Chile Operating segment, respectively. (3) See Note 15 – Business combinations, letter a) . Sales information by customer
| For the years ended as of December 31,
Net Sales | 2019 | 2018 | 2017
| ThCh$ | ThCh$ | ThCh$
Domestic sales | 1,702,109,548 | 1,664,613,889 | 1,572,617,473
Exports sales | 120,431,149 | 118,668,448 | 125,743,321
Total | 1,822,540,697 | 1,783,282,337 | 1,698,360,794
Sales information by product category
Sales information by product category | For the years ended as of December 31,
2019 | 2018 | 2017
ThCh$ | ThCh$ | ThCh$
Alcoholic business | 1,206,288,857 | 1,206,506,503 | 1,158,451,078
Non-alcoholic business | 583,258,201 | 549,746,127 | 519,946,103
Others (1) | 32,993,639 | 27,029,707 | 19,963,613
Total | 1,822,540,697 | 1,783,282,337 | 1,698,360,794
(1) Others consist mainly of sales of by-products and packaging including bottles, pallets, and glasses. Depreciation and amortization as per operating segments
Depreciation and amortization | For the years ended as of December 31,
2019 | 2018 | 2017
ThCh$ | ThCh$ | ThCh$
Chile operating segment | 66,301,914 | 63,148,804 | 64,807,818
International Business operating segment | 27,077,745 | 19,798,708 | 15,568,301
Wines operating segment | 9,826,148 | 7,935,006 | 7,505,440
Others (1) | 1,815,127 | 2,406,676 | 4,317,945
Total | 105,020,934 | 93,289,194 | 92,199,504
(1) I ncludes depreciation and amortization corresponding to the Corporate Support Units. Cash flows Operating Segments
Cash flows Operating Segments |  | For the years ended as of December 31,
| 2019 | 2018 | 2017
| ThCh$ | ThCh$ | ThCh$
Cash flows from operating activities |  | 242,320,045 | 429,313,131 | 262,161,431
Chile operating segment |  | 139,560,085 | 155,728,711 | 161,413,504
International business operating segment |  | 3,885,657 | 228,740,495 | 58,773,027
Wines operating segment |  | 37,196,293 | 14,340,011 | 16,167,068
Others |  | 61,678,010 | 30,503,914 | 25,807,832
Cash flows from investing activities |  | (144,185,726) | (199,002,101) | (173,614,379)
Chile operating segment |  | (125,009,624) | (115,670,330) | (78,746,298)
International business operating segment |  | (38,558,437) | (35,475,310) | (32,312,751)
Wines operating segment |  | (28,895,781) | (16,749,301) | (10,870,574)
Others (1) (*) |  | 48,278,116 | (31,107,160) | (51,684,756)
Cash flows from financing activities |  | (199,420,161) | (52,963,862) | (53,001,198)
Chile operating segment |  | (14,458,606) | (60,093,788) | (65,996,567)
International business operating segment |  | 25,039,794 | (100,573,425) | (8,217,846)
Wines operating segment |  | 439,231 | 3,741,241 | (15,171,642)
Others (1) (*) |  | (210,440,580) | 103,962,110 | 36,384,857
(1) Others include Corporate Support Units, due to cash flows are managed by CCU. (*) It includes contribution to joint ventures. See Note 8 - Cash and cash equivalents . Capital expenditures as per operating segments
Capital expenditures (property, plant and equipment and software additions) | For the years ended as of December 31,
2019 | 2018 | 2017
ThCh$ | ThCh$ | ThCh$
Chile operating segment |  | 69,394,303 | 78,887,075 | 80,866,369
International Business operating segment |  | 38,524,717 | 32,756,828 | 32,312,751
Wines operating segment |  | 22,020,111 | 16,961,638 | 10,948,212
Others (1) |  | 10,548,718 | 2,834,881 | 1,638,148
Total |  | 140,487,849 | 131,440,422 | 125,765,480
(1) Others include the capital investments corresponding to the Corporate Support Units. Assets as per operating segments
Assets as per Operating segment | As of December 31, 2019 | As of December 31, 2018
ThCh$ | ThCh$
Chile operating segment | 1,255,267,920 | 1,183,145,732
International Business operating segment | 460,237,744 | 463,913,523
Wines operating segment | 380,892,311 | 341,959,321
Others (1) | 257,292,739 | 416,846,340
Total | 2,353,690,714 | 2,405,864,916
(1) I ncludes assets corresponding to the Corporate Support Units. Assets per geographic location
Assets per geographical location | As of December 31, 2019 | As of December 31, 2018
ThCh$ | ThCh$
Chile (1) | 1,862,882,784 | 1,924,196,897
Argentina (2) | 370,434,173 | 373,091,516
Uruguay | 26,403,153 | 26,925,415
Paraguay | 55,536,326 | 53,126,091
Bolivia (3) | 38,434,278 | 28,524,997
Total | 2,353,690,714 | 2,405,864,916
(1) Includes the assets corresponding to the Corporate Support Units and eliminations between geographic location and investments in associates and joint ventures. Additionally, includes part of Wines Operating segment and excludes its argentine subsidiary Finca La Celia S.A. (2) Includes the assets of the subsidiaries Finca La Celia S.A. and Los Huemules S.R.L., registered under the Wines Operating segment and Chile Operating segment, respectively. (3) See Note 15 – Business combinations, letter a) . Liabilities as per operating segments
Liabilities as per Operating segment | As of December 31, 2019 | As of December 31, 2018
ThCh$ | ThCh$
Chile operating segment | 479,278,341 | 457,517,605
International Business operating segment | 170,050,938 | 172,893,966
Wines operating segment | 139,805,629 | 112,427,830
Others (1) | 121,628,583 | 273,909,572
Total | 910,763,491 | 1,016,748,973
(1) O thers include liabilities corresponding to the Corporate Support Units. Operating Segment’s additional information The Consolidated Statement of Income classified according to the Company’s operations management is as follows:
CONSOLIDATED STATEMENT OF INCOME | Notes | For the years ended December 31,
2019 | 2018 (*) | 2017
ThCh$ | ThCh$ | ThCh$
Sales revenue external customers |  | 1,789,547,058 | 1,756,252,630 | 1,678,397,181
Other income |  | 32,993,639 | 27,029,707 | 19,963,613
Net sales |  | 1,822,540,697 | 1,783,282,337 | 1,698,360,794
Change % |  | 2.2 | 5.0 | -
Cost of sales |  | (908,318,190) | (860,011,392) | (798,738,655)
% of Net sales |  | 49.8 | 48.2 | 47.0
Gross margin |  | 914,222,507 | 923,270,945 | 899,622,139
% of Net sales |  | 50.2 | 51.8 | 53.0
MSD&A (1) |  | (704,571,238) | (681,575,822) | (668,783,480)
% of Net sales |  | 38.7 | 38.2 | 39.4
Other operating income (expenses) |  | 21,156,983 | 227,026,626 | 4,055,543
Adjusted operating result (2) |  | 230,808,252 | 468,721,749 | 234,894,202
Change % |  | (50.8) | 99.5 | -
% of Net sales |  | 12.7 | 26.3 | 13.8
Net financial expense | 32 | (14,602,562) | (7,766,206) | (19,115,361)
Equity and income of associates and joint ventures | 16 | (16,431,759) | (10,815,520) | (8,914,097)
Foreign currency exchange differences | 32 | (9,054,155) | 3,299,657 | (2,563,019)
Results as per adjustment units | 32 | (8,255,001) | 742,041 | (110,539)
Other gains (losses) | 31 | 3,156,799 | 4,029,627 | (7,716,791)
Income before taxes |  | 185,621,574 | 458,211,348 | 196,474,395
Tax income (expense) | 24 | (39,975,914) | (136,126,817) | (48,365,976)
Net income for year |  | 145,645,660 | 322,084,531 | 148,108,419
Non-controlling interests | 28 | 15,503,968 | 15,193,739 | 18,501,066
Net income attributable to equity holders of the parent |  | 130,141,692 | 306,890,792 | 129,607,353
Depreciation and amortization | 29 | 105,020,934 | 93,289,194 | 92,199,504
ORBDA (3) |  | 335,829,186 | 562,010,943 | 327,093,706
Change % |  | (40.2) | 71.8 | -
% of Net sales |  | 18.4 | 31.5 | 19.3
(*) The net impact, related to early termination of Budweiser license (See Note 1 – General information, letter C) , on CCU’s consolidated earnings was a one-time gain of ThCh$ 208,842,443 in ORBDA and ThCh$ 157,358,973 in Net income attributable to equity holder of the parent. See definition of (1), (2) and (3) in information as per Operating segment under this Note. The following is a reconciliation of our Net income, the main comparable IFRS measure to Adjusted Operating Result for the years ended December 31, 2019, 2018 and 2017 :
| For the years ended December 31,
2019 | 2018 (*) | 2017
ThCh$ | ThCh$ | ThCh$
Net income of year | 145,645,660 | 322,084,531 | 148,108,419
Add (Subtract): |  |  |
Other gains (losses) | (3,156,799) | (4,029,627) | 7,716,791
Finance income | (13,117,641) | (15,794,456) | (5,050,952)
Finance costs | 27,720,203 | 23,560,662 | 24,166,313
Share of net loss of joint ventures and associates accounted for using the equity method | 16,431,759 | 10,815,520 | 8,914,097
Foreign currency exchange differences | 9,054,155 | (3,299,657) | 2,563,019
Result as per adjustment units | 8,255,001 | (742,041) | 110,539
Income tax expense | 39,975,914 | 136,126,817 | 48,365,976
Adjusted operating result | 230,808,252 | 468,721,749 | 234,894,202
Depreciation and amortization | 105,020,934 | 93,289,194 | 92,199,504
ORBDA | 335,829,186 | 562,010,943 | 327,093,706
(*) The net impact, related to early termination of Budweiser license (See Note 1 – General information, letter C) , on CCU’s consolidated earnings was a one-time gain of ThCh$ 208,842,443 in ORBDA and ThCh$ 157,358,973 in Net income attributable to equity holder of the parent. The following is a reconciliation of the consolidated amounts presented for MSD&A with the comparable amounts presented on the face of our consolidated statement of income:
| For the years ended December 31.
2019 | 2018 | 2017
ThCh$ | ThCh$ | ThCh$
Consolidated statement of income |  |  |
Distribution costs | (327,543,973) | (314,391,183) | (290,227,129)
Administrative expenses | (136,975,243) | (152,376,458) | (142,514,649)
Other expenses by function | (241,479,749) | (216,236,609) | (238,704,061)
Other expenses included in ´Other expenses by function´ | 1,427,727 | 1,428,428 | 2,662,359
Total MSD&A | (704,571,238) | (681,575,822) | (668,783,480)
Segment information by joint ventures and associates The Administration of the Company review the financial situation and result of the all of their joint ventures and associated that is described in Note 16 – Investments accounted for using equity method .

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