Core Viewpoint - Cervecerias Unidas (CCU) is experiencing significant selling pressure, with an 8.8% decline over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analysts predicting better-than-expected earnings [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2]. - CCU's current RSI reading is 26.52, suggesting that the heavy selling may be exhausting itself, indicating a possible bounce back towards equilibrium in supply and demand [5]. Group 2: Fundamental Analysis - There is strong consensus among sell-side analysts that earnings estimates for CCU have increased by 12.9% over the last 30 days, which often correlates with price appreciation in the near term [7]. - CCU holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further indicating a potential turnaround [8].

If you enjoyed this, consider Ian's Insider Corner to enjoy access to similar initiation reports for all the new stocks that we buy. Membership also includes an active chat room, weekly updates, and my responses to your questions.I have been a shareholder of Compañía Cervecerías Unidas ( CCU ) for a while and last covered the company on Seeking Alpha back in 2022. At the time, I wrote that overblownIan leads the investing group Ian's Insider Corner . Features of the group include: the Weekend Digest which c ...

Group 1 - The core investment strategy of Quipus Capital focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - Quipus Capital emphasizes understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations from Quipus Capital will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - The articles produced by Quipus Capital aim to provide important information for future investors and introduce a healthy skepticism in a generally bullish market [1]

Group 1 - Cervecerias Unidas (CCU) has experienced significant selling pressure, resulting in a 10.9% decline in stock price over the past four weeks, but it is now considered to be in oversold territory with potential for recovery [1] - The Relative Strength Index (RSI) for CCU is currently at 27.06, indicating that the stock may be nearing a reversal point due to excessive selling [5] - Analysts have raised earnings estimates for CCU by 12.9% over the last 30 days, suggesting a positive outlook for the company's earnings and potential price appreciation [7] Group 2 - CCU holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which indicates a strong potential for a turnaround in the near term [8]

Group 1 - Cervecerias Unidas (CCU) has gained approximately 25.2% year-to-date, outperforming the average gain of 5% in the Consumer Staples sector [4] - The Zacks Rank for Cervecerias Unidas is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for CCU's full-year earnings has increased by 10.5% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - Cervecerias Unidas belongs to the Beverages - Alcohol industry, which consists of 17 individual stocks and is currently ranked 84 in the Zacks Industry Rank [5] - Stocks in the Beverages - Alcohol industry have gained about 9.4% year-to-date, indicating that CCU is performing better than its industry peers [5] - Another stock in the Consumer Staples sector, Monster Beverage, has a year-to-date return of 18.6% and also holds a Zacks Rank of 2 (Buy) [4][6]

Core Insights - The article compares Cervecerias Unidas (CCU) and Boston Beer (SAM) to determine which stock is more undervalued for investors in the Beverages - Alcohol sector [1] Valuation Metrics - CCU has a forward P/E ratio of 18.44, while SAM has a forward P/E of 25.57, indicating that CCU is more attractively priced [5] - CCU's PEG ratio is 1.33, compared to SAM's PEG ratio of 1.71, suggesting that CCU offers better value relative to its expected earnings growth [5] - CCU's P/B ratio is 1.61, whereas SAM's P/B ratio is 2.96, further highlighting CCU's superior valuation metrics [6] Analyst Outlook - CCU holds a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision activity compared to SAM, which has a Zacks Rank of 3 (Hold) [3][7] - The stronger estimate revision activity for CCU suggests an improving analyst outlook, making it a more appealing option for value investors [3][7] Value Grades - CCU has a Value grade of A, while SAM has a Value grade of C, reflecting the overall assessment of their valuation metrics [6][7]

Group 1 - The conference call for Compañía Cervecerías Unidas S.A. (CCU) regarding Q1 2025 earnings took place on May 8, 2025, at 10:30 AM ET [1] - Key participants included CEO Patricio Jottar, CFO Felipe Dubernet, and other members of the investor relations team [2] - The purpose of the call was to review overall results and transition into a Q&A session [3] Group 2 - Forward-looking statements regarding CCU's future financial results were made, highlighting the presence of known and unknown risks and uncertainties [3] - Additional information about risks and uncertainties is available in CCU's annual report in Form 20-F filed with the U.S. Securities and Exchange Commission [4]

Interim Consolidated Financial Statements [Interim Consolidated Statements of Financial Position](index=5&type=section&id=INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20FINANCIAL%20POSITION) As of March 31, 2025, the company reported total assets of **Ch$ 3,914.1 billion**, a slight decrease from **Ch$ 3,989.7 billion** at year-end 2024. Total liabilities also decreased to **Ch$ 2,237.9 billion** from **Ch$ 2,317.2 billion**, while total shareholders' equity saw a marginal increase to **Ch$ 1,676.2 billion** Consolidated Statement of Financial Position (Ch$ in thousands) | Account | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | 1,719,202,357 | 1,771,266,840 | | **Total Non-Current Assets** | 2,194,908,943 | 2,218,450,150 | | **Total Assets** | **3,914,111,300** | **3,989,716,990** | | **Total Current Liabilities** | 796,886,225 | 860,006,211 | | **Total Non-Current Liabilities** | 1,441,016,643 | 1,457,195,469 | | **Total Liabilities** | **2,237,902,868** | **2,317,201,680** | | **Total Shareholders' Equity** | **1,676,208,432** | **1,672,515,310** | | **Total Liabilities and Equity** | **3,914,111,300** | **3,989,716,990** | [Interim Consolidated Statements of Income](index=7&type=section&id=INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) For the three months ended March 31, 2025, the company achieved net sales of **Ch$ 817.7 billion**, a **9.6%** increase year-over-year. Gross margin improved to **Ch$ 382.2 billion**. However, operating income slightly decreased to **Ch$ 84.4 billion** from **Ch$ 90.0 billion** in the prior year period. Net income for the period rose to **Ch$ 61.5 billion**, compared to **Ch$ 55.0 billion** in Q1 2024, resulting in a basic EPS of **Ch$ 156.37** Q1 2025 vs Q1 2024 Income Statement Highlights (Ch$ in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Sales | 817,670,591 | 746,023,982 | | Gross Margin | 382,181,409 | 352,126,656 | | Income from Operational Activities | 84,438,794 | 89,978,543 | | Income Before Taxes | 65,202,240 | 69,648,531 | | Net Income of Period | 61,487,966 | 55,027,607 | | Basic Earnings Per Share (Ch$) | 156.37 | 141.28 | [Interim Consolidated Statements of Comprehensive Income](index=8&type=section&id=INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20INCOME) For the first quarter of 2025, the company reported a total comprehensive income of **Ch$ 40.6 billion**. This was significantly lower than the **Ch$ 239.3 billion** in the same period of 2024, primarily due to a large negative impact from foreign currency translation differences in the current period, compared to a large positive impact in the prior year Q1 2025 Comprehensive Income Breakdown (Ch$ in thousands) | Component | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income of Period | 61,487,966 | 55,027,607 | | Gains (losses) on exchange differences on translation | (21,245,701) | 182,607,608 | | Total Other Comprehensive Income (Loss) | (20,932,490) | 184,277,049 | | **Comprehensive Income** | **40,555,476** | **239,304,656** | [Interim Consolidated Statements of Changes in Equity](index=9&type=section&id=INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20EQUITY) Shareholders' equity increased from **Ch$ 1,672.5 billion** at the start of 2025 to **Ch$ 1,676.2 billion** by March 31, 2025. The increase was driven by net income of **Ch$ 57.8 billion** attributable to parent holders, which was partially offset by dividend payments of **Ch$ 28.9 billion** and a negative other comprehensive income of **Ch$ 19.0 billion** Q1 2025 Changes in Equity (Ch$ in thousands) | Item | Amount | | :--- | :--- | | Balance as of January 1, 2025 | 1,672,515,310 | | Total Comprehensive Income (Loss) | 40,555,476 | | Interim Dividends | (28,888,804) | | Other Changes | (8,003,547) | | **Balance as of March 31, 2025** | **1,676,208,432** | [Interim Consolidated Statements of Cash Flows](index=10&type=section&id=INTERIM%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, the company generated **Ch$ 130.4 billion** in net cash from operating activities, an increase from **Ch$ 121.3 billion** in Q1 2024. Cash used in investing activities was **Ch$ 28.1 billion**, primarily for property, plant, and equipment purchases. Financing activities resulted in a net cash outflow of **Ch$ 10.2 billion**. Overall, cash and cash equivalents increased by **Ch$ 64.3 billion** during the quarter Q1 2025 vs Q1 2024 Cash Flow Summary (Ch$ in thousands) | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 130,429,751 | 121,280,183 | | Net Cash from Investing Activities | (28,078,407) | (53,975,799) | | Net Cash from Financing Activities | (10,158,794) | (40,071,609) | | **Increase (Decrease) in Cash** | **64,312,224** | **74,232,224** | Notes to the Interim Consolidated Financial Statements [Note 1: General Information](index=11&type=section&id=NOTE%201%20GENERAL%20INFORMATION) Compañía Cervecerías Unidas S.A. (CCU) is a diversified beverage company with primary operations in Chile, Argentina, Uruguay, Paraguay, Colombia, and Bolivia. It is controlled by Inversiones y Rentas S.A. (IRSA), a joint venture between Quiñenco S.A. and Heineken. The note details the company's extensive portfolio of owned and licensed brands across beer, soft drinks, water, wine, and spirits. It also outlines significant recent corporate activities, including gaining control of Aguas de Origen S.A. in Argentina and forming a new partnership with Vierci Group in Paraguay - CCU is a diversified beverage company operating mainly in Chile, Argentina, Uruguay, Paraguay, Colombia, and Bolivia[26](index=26&type=chunk) - The company is controlled by Inversiones y Rentas S.A. (IRSA), which is a **50/50** joint venture between Quiñenco S.A. and Heineken Chile SpA[27](index=27&type=chunk) - On July 1, 2024, CCU acquired a controlling **50.1%** stake in Aguas de Origen S.A. in Argentina, which is now consolidated[75](index=75&type=chunk) - On October 14, 2024, CCU entered into a partnership with Vierci Group in Paraguay, consolidating their beverage businesses and giving CCU a **51%** ownership stake in the combined entity[61](index=61&type=chunk)[62](index=62&type=chunk) [Note 2: Summary of Material Accounting Policies](index=21&type=section&id=NOTE%202%20SUMMARY%20OF%20MATERIAL%20ACCOUNTING%20POLICIES) The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS). Key policies include the consolidation of subsidiaries using the acquisition method, accounting for joint ventures via the equity method, and revenue recognition upon transfer of control of goods. The company's functional and presentation currency is the Chilean peso. Notably, due to hyperinflation, the financial statements of Argentine subsidiaries are restated per IAS 29 before consolidation - The interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)[84](index=84&type=chunk) - Argentina has been classified as a hyperinflationary economy since July 1, 2018, requiring the application of IAS 29 for its subsidiaries, which involves restating financial statements to the purchasing power at the reporting date before translation to Chilean pesos[107](index=107&type=chunk)[108](index=108&type=chunk)[110](index=110&type=chunk) - Revenue from the sale of goods is recognized when the company transfers control of the goods to the buyer, which is generally upon delivery, in accordance with IFRS 15[187](index=187&type=chunk) [Note 5: Risk Administration](index=35&type=section&id=NOTE%205%20RISK%20ADMINISTRATION) The company actively manages financial risks including exchange rates, interest rates, inflation, raw material prices, and credit. Exchange rate risk is mitigated through derivative contracts like currency forwards. Interest rate risk is managed by maintaining **100%** of its debt at fixed rates. Inflation risk is partially mitigated by pricing policies and swaps. Raw material price risk is a key exposure that is not hedged. Credit risk is managed through internal credit policies and the use of credit insurance, which covers a significant portion of receivables - The company's main risk exposures are related to exchange rates, interest rates, inflation, raw materials prices, and credit risk[210](index=210&type=chunk) - As of March 31, 2025, **100%** of the company's debt is at fixed interest rates to manage interest rate risk[225](index=225&type=chunk) - The company does not engage in hedging for raw material purchases, such as barley, malt, cans, and sugar, exposing it to price fluctuations[236](index=236&type=chunk) - Credit risk on domestic accounts receivable in Chile is mitigated by credit insurance covering **82%** of total accounts receivable as of March 31, 2025[243](index=243&type=chunk) [Note 6: Financial Information as per Operating Segments](index=41&type=section&id=NOTE%206%20FINANCIAL%20INFORMATION%20AS%20PER%20OPERATING%20SEGMENTS) The company operates through three segments: Chile, International Business, and Wine. In Q1 2025, the International Business segment was the primary growth driver, with a **31.8%** increase in net sales and a **45.5%** rise in adjusted operating results. The Chile segment saw modest sales growth of **2.8%** but a decline in operating results. The Wine segment experienced flat sales and a decrease in operating results. Overall consolidated net sales grew **9.6%** year-over-year Q1 2025 vs Q1 2024 Segment Performance (Ch$ in thousands) | Operating Segment | Net Sales (Q1 2025) | Net Sales (Q1 2024) | % Change | Adjusted Operating Result (Q1 2025) | Adjusted Operating Result (Q1 2024) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Chile | 515,794,592 | 501,876,690 | 2.8% | 70,226,058 | 76,824,254 | (8.6%) | | International Business | 256,029,914 | 194,253,750 | 31.8% | 21,785,416 | 14,970,806 | 45.5% | | Wines | 60,021,512 | 58,765,210 | 2.1% | 3,421,104 | 3,730,296 | (8.3%) | | **Total** | **817,670,591** | **746,023,982** | **9.6%** | **91,883,253** | **88,914,195** | **3.3%** | - The company's sales are diversified geographically, with Chile accounting for **Ch$ 556.9 billion** and Argentina for **Ch$ 216.1 billion** of net sales in Q1 2025[267](index=267&type=chunk) [Note 15: Business Combinations](index=71&type=section&id=NOTE%2015%20BUSINESS%20COMBINATIONS) This note details two significant business combinations. First, on July 1, 2024, CCU gained control of its former joint venture, Aguas de Origen S.A. (ADO) in Argentina, by increasing its stake to **50.1%**. Second, on October 14, 2024, CCU formed a strategic partnership in Paraguay with Vierci Group, consolidating their respective beverage businesses and resulting in CCU holding a **51%** controlling interest in the combined operations - On July 1, 2024, CCU exercised a stock option to increase its ownership in Aguas de Origen S.A. (ADO) to **50.1%**, thereby gaining control and beginning to consolidate its financial information[354](index=354&type=chunk)[355](index=355&type=chunk) - On October 14, 2024, CCU entered into a definitive association agreement with Vierci Group in Paraguay, combining their beverage businesses. CCU now owns **51%** of the resulting entities (AV S.A., Bebidas del Paraguay S.A., and Distribuidora del Paraguay S.A.)[357](index=357&type=chunk)[358](index=358&type=chunk) [Note 16: Investments Accounted for Using Equity Method](index=73&type=section&id=NOTE%2016%20INVESTMENTS%20ACCOUNTED%20FOR%20USING%20EQUITY%20METHOD) The company holds investments in joint ventures and associates, which are accounted for using the equity method. As of March 31, 2025, the total value of these investments was **Ch$ 139.0 billion**. The most significant investments are the joint ventures in Colombia, Central Cervecera de Colombia S.A.S. and Zona Franca Central Cervecera S.A.S. For Q1 2025, the company's share of net loss from these investments was **Ch$ 1.5 billion** Investments in Joint Ventures & Associates (Ch$ in thousands) | Investment Type | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total Joint Ventures | 137,239,665 | 137,933,397 | | Total Associates | 1,796,798 | 1,813,524 | | **Total** | **139,036,463** | **139,746,921** | - The company's share of net loss from these equity method investments was **Ch$ 1,518 million** for Q1 2025, compared to a loss of **Ch$ 3,318 million** in Q1 2024[364](index=364&type=chunk) [Note 18: Goodwill](index=78&type=section&id=NOTE%2018%20GOODWILL) As of March 31, 2025, the company's goodwill balance was **Ch$ 159.7 billion**. This goodwill is allocated across various Cash-Generating Units (CGUs) within the Chile, International Business, and Wine segments. The company performs annual impairment tests using a discounted cash flow model. Key assumptions for the tests include perpetual growth rates (e.g., **3.0%** for Chile, **4.0%** for Argentina) and discount rates based on WACC. No impairment losses were recognized Goodwill by Segment (Ch$ in thousands) | Segment | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Chile | 46,502,610 | 46,502,645 | | International Business | 80,796,232 | 82,664,444 | | Wines | 32,416,144 | 32,416,144 | | **Total** | **159,714,986** | **161,583,233** | - Goodwill is tested for impairment annually using a value-in-use model based on discounted cash flows. Management determined that no reasonably possible change in key assumptions would cause a CGU's carrying amount to exceed its recoverable amount[388](index=388&type=chunk)[393](index=393&type=chunk) [Note 21: Other Financial Liabilities](index=84&type=section&id=NOTE%2021%20OTHER%20FINANCIAL%20LIABILITIES) Total other financial liabilities amounted to **Ch$ 1,357.7 billion** as of March 31, 2025, consisting mainly of bank borrowings and bonds payable. The note details the terms, maturities, and interest rates for various debt instruments, including several series of local bonds (J, L, M, P, R) and an international bond. The company is subject to financial covenants on its major borrowings, such as maintaining specific debt-to-equity and interest coverage ratios, and was in compliance with all covenants as of the reporting date Other Financial Liabilities Breakdown (Ch$ in thousands) | Liability Type | Current (Mar 31, 2025) | Non-Current (Mar 31, 2025) | Total | | :--- | :--- | :--- | :--- | | Bank Borrowings | 33,795,782 | 166,263,683 | 200,059,465 | | Bonds Payable | 92,541,670 | 1,039,093,986 | 1,131,635,656 | | Derivatives & Deposits | 17,663,746 | 8,366,244 | 26,029,990 | | **Total** | **144,001,198** | **1,213,723,913** | **1,357,725,111** | - The company has several bond issuances with specific covenants, including maintaining a Consolidated Net Financial Debt Level not greater than **1.5 times** Total Adjusted Equity and a financial expense coverage of no less than **3 times**[486](index=486&type=chunk) - As of March 31, 2025, the company was in compliance with all financial covenants related to its borrowings and bonds[484](index=484&type=chunk)[488](index=488&type=chunk) [Note 28: Common Shareholders' Equity](index=112&type=section&id=NOTE%2028%20COMMON%20SHAREHOLDERS%27%20EQUITY) As of March 31, 2025, the company's paid-up capital was **Ch$ 562.7 billion**, represented by **369,502,872** common shares. The company's dividend policy is to distribute at least **50%** of the annual net distributable profit. In April 2025, a final dividend of **Ch$ 100.28470** per share for the 2024 fiscal year was approved. Basic and diluted earnings per share for Q1 2025 were both **Ch$ 156.37**, as there were no potential dilutive instruments - The company's capital consists of **369,502,872** common shares with no par value, totaling **Ch$ 562.7 billion**[534](index=534&type=chunk) Earnings Per Share (in Chilean pesos) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Basic EPS | 156.37 | 141.28 | | Diluted EPS | 156.37 | 141.28 | - The company's dividend policy is to distribute at least **50%** of the net distributable profit annually. A final dividend for fiscal year 2024 of **Ch$ 100.28470** per share was approved in April 2025[541](index=541&type=chunk)[543](index=543&type=chunk) [Note 35: Contingencies and Commitments](index=125&type=section&id=NOTE%2035%20CONTINGENCIES%20AND%20COMMITMENTS) The company has various commitments and contingencies. As of March 31, 2025, capital investment commitments totaled **Ch$ 67.7 billion**. The company is also involved in several legal proceedings, primarily related to labor claims and administrative fees, for which it has provisioned **Ch$ 2.8 billion**. Additionally, CCU has provided indirect guarantees, such as comfort letters and standby letters of credit, to support financing for its subsidiaries and joint ventures - As of March 31, 2025, the company had capital investment commitments of approximately **Ch$ 67.7 billion**[571](index=571&type=chunk) - The company faces several legal proceedings and has established provisions of **Ch$ 2.8 billion** to cover potential losses from these contingencies[572](index=572&type=chunk)[574](index=574&type=chunk) - CCU has provided indirect guarantees, including a stand-by letter of credit for **USD 2.6 million** to support a subsidiary's debt in Peru, and has committed to maintaining majority ownership in key subsidiaries to comply with loan covenants[576](index=576&type=chunk)[577](index=577&type=chunk) [Note 36: Subsequent Events](index=127&type=section&id=NOTE%2036%20SUBSEQUENT%20EVENTS) The Board of Directors approved the interim consolidated financial statements on May 7, 2025. No other significant events that could materially affect the interpretation of these financial statements occurred between the reporting date of March 31, 2025, and the date of issuance - The interim consolidated financial statements as of March 31, 2025, were approved by the Board of Directors on May 7, 2025[577](index=577&type=chunk) - No other significant financial or other matters that could affect the interpretation of the financial statements were reported after March 31, 2025[577](index=577&type=chunk)

Revenue Breakdown - The Chile Operating segment accounted for 61.0% of total revenues in 2024, while the International Business Operating segment contributed 29.3% and the Wine Operating segment accounted for 9.7%[41]. - Approximately 72% of sales volume in 2024 corresponded to own brands, mitigating the risk of losing licensing agreements[35]. Economic Environment - The Chilean economy recorded average GDP growth of 2.0% per year from 2014 to 2024, with inflation reaching 12.8% in 2022, but falling to 3.9% and 4.5% in 2023 and 2024 respectively[42]. - The company is dependent on the political, social, and economic conditions in Chile and Argentina, which significantly impact operational results[41]. Competition and Market Risks - The company faces significant competition in the beer market from Anheuser-Busch InBev SA/NV and its subsidiaries, which could negatively impact sales and market share[26]. - The company is exposed to fluctuations in raw material costs, which could negatively impact profitability due to market volatility and geopolitical factors[36]. - Water availability and quality are critical for production, and regulatory changes or climate impacts could negatively affect sales and profitability[79]. Regulatory and Compliance Issues - The company operates under various regulatory environments, with potential changes in tax laws and advertising regulations that could negatively impact profitability[58][60]. - The Company has implemented a robust regulatory compliance system to ensure adherence to applicable regulations[63]. - The 2022 Water Code reform introduced temporary water use rights and stricter environmental assessments, impacting operational regulations[67]. Health and Safety Concerns - The company has contingency plans for health crises, but prolonged adverse public health developments could materially affect operations and financial position[40]. - A cybersecurity incident on September 25, 2024, affected the Company's IT systems related to sales and distribution, leading to recovery measures[74]. - The company has comprehensive insurance coverage for natural disasters, but coverage limits may be insufficient for extraordinary events[77]. Sustainability Initiatives - The Company built the CirCCUlar Recycling Plant to produce recycled resin, aiming for 15% recycled content in disposable plastic bottles by 2025, increasing to 70% by 2060[66]. - CCU's 2020 Environmental Vision plan achieved a 35.7% reduction in greenhouse gas emissions per liter produced, exceeding the goal of 20%[155]. - The company’s sustainability strategy includes 20 goals to be achieved by 2030 under the pillars "Our Planet" and "Our People"[171]. - The company inaugurated the first plastic bottle-to-bottle Recycling Plant in Chile, projected to recycle 870 million bottles per year[174]. Financial Profile - The company maintains a conservative financial profile with adequate liquidity indicators and favorable risk ratings, including 'AA+' from Fitch Chile and 'BBB' from Standard & Poor's[50]. - The Chilean peso has experienced significant fluctuations, depreciating 12.5% in 2024, which could adversely affect the value of the Company's ADSs[82]. - CCU issued a 10-year USD 600 million international bond with a yield to maturity of 3.365%[160]. - CCU placed a three million UF bond in the Chilean market at a rate of 2.85%[142]. Operational Developments - The company has implemented innovation strategies supported by marketing campaigns to strengthen sales and market share[28]. - In September 2023, the Company began participating in ReSimple, a collective management system for packaging recovery in Chile, in line with Law No. 20,920 on Extended Producer Responsibility[65]. - CCU began operating the first 100% electric truck in Chile, aiming for electric trucks to represent 50% of the fleet by 2030[144]. - CCU's new distribution center has a 22,500 square meter warehouse and operates with 100% electricity-powered machinery[145]. Market Share and Growth - The weighted volume market share for the Chile Operating segment was approximately 44.9% in 2024[190]. - The weighted volume market share for the International Business Operating segment was approximately 18.1%, 17.1%, and 18.7% for the years 2022, 2023, and 2024, respectively[200]. - VSPT's weighted average volume market share was 19.9%, 20.0%, and 18.4% for the years 2022, 2023, and 2024, respectively, with 35.8% of total domestic industry sales in Chile in 2024[207]. Strategic Acquisitions and Investments - The company currently owns 99.98% of Embotelladoras Chilenas Unidas S.A. (ECUSA), which produces PepsiCo brands under license[97]. - In 2024, the company prepared a 2025-2027 Strategic Plan focusing on Profitability, Growth, and Sustainability[173]. - In July 2022, the company acquired the premium beer brand Volcanes del Sur in Chile[165]. - In January 2023, the company began consolidating D&D SpA, a premium frozen cocktails company in Chile, after acquiring a controlling interest[166].

Group 1 - The core viewpoint of the article highlights the challenges in interpreting CCU's Q4 results due to the impact of Argentina's inflationary accounting, which has led to a reported revenue increase of over 60% despite flat organic sales volumes [1] - The analysis emphasizes a focus on operational aspects and long-term earnings power rather than market-driven dynamics, suggesting a preference for companies that can be held regardless of future price movements [1] - The article indicates that most recommendations will be holds, reflecting a cautious approach in a bullish market, with only a small fraction of companies deemed suitable for a buy at any given time [1] Group 2 - The article does not provide any specific financial metrics or detailed analysis of CCU's competitive dynamics or industry participation [1]