Financial Performance - The company's cost of sales decreased by 9.0% from CLP 1,514,925 million in 2022 to CLP 1,378,612 million in 2023, primarily due to a 5.7% decrease in cost of sales per hectoliter and a 3.4% decrease in sales volumes [102]. - Adjusted Operating Result increased by 9.4% from CLP 231,431 million in 2022 to CLP 253,283 million in 2023, with the margin rising from 8.5% to 9.9% [106]. - The Adjusted Operating Result for the Chile segment increased by 30.5% from CLP 156,753 million in 2022 to CLP 204,586 million in 2023, with the margin increasing from 9.4% to 11.6% [109]. - The International Business segment's Adjusted Operating Result decreased by 8.5% from CLP 62,913 million in 2022 to CLP 57,553 million in 2023, although the margin improved from 8.0% to 9.8% [110]. - The Wine segment's Adjusted Operating Result decreased by 48.7% from CLP 39,046 million in 2022 to CLP 20,019 million in 2023, with the margin declining from 13.2% to 7.9% [110]. - Net sales decreased by 5.4% from CLP 2,711,435 million in 2022 to CLP 2,565,556 million in 2023, attributed to a 3.4% decline in volumes and a 2.0% decrease in average prices [124]. - Net income for 2023 was CLP 118,425 million, down 10.6% from CLP 135,484 million in 2022 [120]. - Net income attributable to non-controlling interests dropped 26.2% from CLP 17,316 million in 2022 to CLP 12,773 million in 2023 [116]. Expenses and Financial Metrics - Marketing, Selling, Distribution and Administrative (MSD&A) expenses decreased by 3.3% from CLP 967,924 million in 2022 to CLP 936,272 million in 2023 [105]. - Net Financial Expenses declined by 29.1% from a loss of CLP 53,060 million in 2022 to a loss of CLP 37,621 million in 2023, attributed to higher interest income [111]. - Other Income by Function decreased by 16.4% from CLP 5,285 million in 2022 to CLP 4,420 million in 2023, primarily due to a decrease in income from leases [106]. - Other Expenses decreased by 25.9% from CLP 2,440 million in 2022 to CLP 1,809 million in 2023, mainly due to lower asset write-offs [106]. - Cash flows from operating activities in 2023 were CLP 1,059,814 million, an increase of 25.8% from CLP 843,182 million in 2022 [113]. - Cash used in investment activities totaled CLP 137,232 million in 2023, a decrease from CLP 236,457 million in 2022 [113]. - Long-term indebtedness as of December 31, 2023, amounted to CLP 1,329,262 million, with a consolidated interest coverage ratio of 4.93 [130]. - The company maintained a consolidated financial leverage ratio of 0.50 as of December 31, 2023 [130]. Economic and Market Conditions - In 2023, the Chilean economy experienced a GDP growth of 0.2% and an inflation rate of 3.9%, compared to a GDP growth of 2.1% and inflation of 12.8% in 2022 [137]. - The average unemployment rate in Chile was 8.7% in 2023, reflecting a deterioration compared to 7.9% in 2022 [137]. - The company anticipates GDP growth in Chile to improve in 2024, with forecasts between 2.0% and 3.0% [137]. - Price volatility of primary raw materials such as aluminum, malt, sugar, and PET may impact the company's operations [137]. - The Chilean peso experienced a depreciation of 2.5% in 2023, following a trend of fluctuations in exchange rates [137]. Strategic Initiatives - The execution of the regional plan "HerCCUles" contributed to improved operating results, focusing on revenue management and efficiency gains [122]. - The company is investing in new technologies and digital transformation, including the development of machine-learning algorithms for customer analysis and logistics optimization [136]. - The company launched a proprietary B2B platform "Mi Carro" in Chile and expanded its B2C platform "La Barra" to enhance consumer experience [134]. - The company has established technical agreements with Heineken for production assistance, enhancing operational capabilities [134]. - The company has made significant advancements in e-commerce platforms to improve sales and distribution processes [134].

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics an ...

Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Boston Beer (SAM) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highligh ...

Financial Data and Key Metrics Changes - Consolidated EBITDA grew by 6% in 2023, with an EBITDA margin improvement of 159 basis points, primarily driven by the Chile operating segment, which expanded EBITDA by 24.8% [11] - Consolidated net income contracted by 10.6% compared to 2022 [12] - Quarterly consolidated EBITDA dropped by 9.9%, while the EBITDA margin increased from 16% to 19.3% [17] Business Line Data and Key Metrics Changes - The Wine Operating segment saw a 37.4% drop in EBITDA, with revenues down 11.7% due to an 8.8% decrease in volumes and a 3.1% contraction in average prices [11][21] - The International Business Operating segment, which includes Argentina, experienced a 16% contraction in EBITDA, with net sales dropping 90% due to hyperinflation accounting [11][20] - In the key operating segment, top-line decreased by 2.2% in the last quarter, driven by a 7.3% contraction in volumes, partially offset by a 5.5% increase in average prices [19] Market Data and Key Metrics Changes - In Argentina, inflation was reported at 20.5% in January 2024, with industry contraction expected to be in the high single digits [27] - The Argentine peso devalued significantly, impacting results with a loss of CLP24,018 million in consolidated EBITDA due to hyperinflation accounting [18] - In Colombia, volumes contracted in the low single digits, while the water business in Argentina recorded mid-single digit growth despite economic challenges [22] Company Strategy and Development Direction - The company is focused on maintaining business scale, strengthening revenue management, delivering efficiency gains, optimizing CapEx and working capital, focusing on core brands, and investing in brand equity as part of the HerCCUles plan [12][13] - The company aims to continue working under three strategic pillars: growth, profitability, and sustainability, while navigating a challenging environment, especially in Argentina [63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a difficult year for the wine export business and Argentina's macroeconomic conditions but noted a recovery in operating results and profitability [7] - The company expects to continue its recovery path in financial results and profitability despite ongoing challenges in the region [63] Other Important Information - The company reduced the number of SKUs by about 100, representing approximately 5% of its offerings, to focus on core brands and profitable innovations [41] - The company is investing in returnable packaging to protect profitability and maintain brand equity [30] Q&A Session Summary Question: How did the quarter start for Argentina in 2024? - The quarter maintained the same trend as Q4, with continued price increases in line with inflation and an expected lower level of inflation in February [27] Question: Do you expect margins to deteriorate in Argentina? - Management indicated that maintaining relative scale is challenging but emphasized ongoing revenue management efforts and efficiency projects to protect profitability [28][29] Question: How did results look without weather effects in Chile? - Management noted that factoring out weather, the decrease in volumes would be around 7.3%, indicating a weaker consumer demand overall [31][33] Question: What is the outlook on costs and FX in Chile? - Management acknowledged significant pressure from FX, with efforts needed in revenue management and efficiency to stabilize EBITDA margins [39][40] Question: How many SKUs were eliminated in 2023? - Approximately 100 SKUs were eliminated, focusing on improving margins and brand equity [41] Question: What is the plan for the wine segment given its challenges? - Management highlighted the need for innovation and improved execution in key markets, with expectations for some growth in export volumes in the first quarter [56][58] Question: Are there plans for cost-cutting initiatives in Chile? - Management clarified that the focus is on cost control rather than aggressive cost-cutting, aiming to improve efficiency with existing resources [60][61]

Price-to-book ratio or P/B ratio is essentially the ratio of stock price to book value, i.e., how much an investor needs to pay for each dollar of book value of a stock. It is calculated by dividing the current closing price of the stock by the book value per share.In value investing, it is a common practice to pick stocks that are cheap but fundamentally strong. There are a number of investment styles for finding great stocks at attractive values.While considering valuation metrics, though price-to-earning ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to fi ...

Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Cervecerias Unidas (CCU) and Constellation Brands (STZ) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimat ...

MoreISO/iStock Editorial via Getty ImagesCompañía Cervecerías Unidas (NYSE:CCU) is a Chilean beverage company. It's a market leader in its home market and a challenger in a number of other South American countries. CCU produces and distributes market leading brands, has owners with deep pockets and a robust balance sheet. The financial performance of CCU is somewhat in a turnaround position. The company is still pursuing to reach pre-covid profitability level after suffering from several external factor ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these ...

Investors with an interest in Beverages - Alcohol stocks have likely encountered both Cervecerias Unidas (CCU) and Constellation Brands (STZ) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy ...