pania Cervecerias Unidas S.A.(CCU) - 2025 Q2 - Quarterly Report

Financial Performance - Net sales for the six-month period ended June 30, 2025, reached ThCh$ 1,397,584,492, a 10% increase from ThCh$ 1,270,665,463 in 2024[13] - Gross margin improved to ThCh$ 619,013,030 for the six-month period, compared to ThCh$ 562,240,017 in the previous year, reflecting a 10% increase[13] - Net income for the six-month period was ThCh$ 50,275,434, down 19% from ThCh$ 61,858,215 in 2024[16] - Basic earnings per share from continuing operations decreased to 126.01 Chilean pesos, down from 154.92 Chilean pesos in 2024, representing a decline of 18%[13] - Other comprehensive income showed a loss of ThCh$ 17,568,093 for the six-month period, contrasting with a gain of ThCh$ 173,863,000 in 2024[16] - Comprehensive income attributable to equity holders of the parent was ThCh$ 36,409,797, down from ThCh$ 226,899,306 in the previous year, indicating a significant decline[16] - Income before taxes for the six-month period was ThCh$ 17,602,026, a decrease of 64% compared to ThCh$ 48,578,674 in 2024[13] Assets and Liabilities - Total assets decreased from ThCh$3,989,716,990 as of December 31, 2024, to ThCh$3,512,954,979 as of June 30, 2025, representing a decline of approximately 11.9%[8] - Current liabilities reduced from ThCh$860,006,211 to ThCh$645,487,795, a decrease of about 25%[10] - Total equity attributable to equity holders of the parent decreased from ThCh$1,525,183,185 to ThCh$1,476,796,450, reflecting a decline of approximately 3.2%[10] - Cash and cash equivalents decreased from ThCh$707,122,815 to ThCh$511,260,232, a reduction of about 27.7%[8] - Total current assets decreased from ThCh$1,771,266,840 to ThCh$1,384,158,165, a decline of approximately 21.9%[8] - Total liabilities decreased from ThCh$2,317,201,680 to ThCh$1,902,592,320, a reduction of about 17.9%[10] - Non-current liabilities decreased from ThCh$1,457,195,469 to ThCh$1,257,104,525, a reduction of approximately 13.7%[10] Operational Costs - Distribution costs increased to ThCh$ 270,169,675, up from ThCh$ 247,689,360 in 2024, indicating a rise of 9%[13] - Administrative expenses rose to ThCh$ 107,139,653, compared to ThCh$ 84,770,584 in 2024, marking a 26% increase[13] Cash Flow and Investments - The net cash inflows from operating activities for the first half of 2025 were ThCh$98,169,005, compared to ThCh$86,683,789 in 2024, indicating an increase of about 13.5%[24] - The company reported a net cash outflow from investing activities of ThCh$65,479,723 for the first half of 2025, compared to a net outflow of ThCh$45,273,619 in 2024, indicating an increase in investment activity[24] - Cash and cash equivalents at the end of the period were ThCh$511,260,232, down from ThCh$636,538,816 at the end of June 2024, showing a decrease of approximately 19.7%[24] Employee and Dividend Information - The company paid dividends totaling ThCh$48,172,529 in the first half of 2025, compared to ThCh$41,753,925 in the same period of 2024, representing an increase of about 15.5%[24] - Payments of salaries increased to ThCh$223,558,430 in 2025 from ThCh$198,375,392 in 2024, reflecting a rise of approximately 12.7%[24] - As of June 30, 2025, the company employed a total of 9,470 employees, with 437 in the parent company and 9,470 consolidated[28] Market Presence and Brand Portfolio - Compañía Cervecerías Unidas S.A. operates in multiple countries including Chile, Argentina, Uruguay, Paraguay, Colombia, and Bolivia, and is the largest brewer in Chile and the second largest in Argentina[26] - The company has a diverse portfolio of brands, including its own CCU brands and international licensing brands such as Heineken and Sol, across various beverage categories[35][36] - CCU has expanded its wine portfolio through its subsidiary VSPT, which includes brands like Altaïr and GatoNegro, produced across eight wineries[41] - The company has a significant presence in the cider market in Argentina, marketing leading brands such as "Sidra Real" and "La Victoria"[39] Licensing and Joint Ventures - The company holds licenses for major brands including Aberlour, Absolut, and Chivas Regal, with validity extending to June 2027 for many[46] - The company has a joint venture in Colombia for the production and distribution of Heineken beer, and has incorporated local brands like Andina and Tres Cordilleras[45] - The company has established a partnership with the Vierci Group in Paraguay to market and distribute Pepsico beverages and snacks, enhancing its product offerings[43] Financial Reporting and Accounting Policies - The company’s financial statements are presented in thousands of Chilean pesos, ensuring clarity in financial reporting[31] - The Company uses the Chilean peso (Ch$ or CLP) as its functional currency, while subsidiaries in the U.S., Argentina, Uruguay, Paraguay, Bolivia, the UK, and China use their respective currencies[103] - The application of IAS 21 amendments resulted in a negative equity impact of ThCh$ 59,151,843 due to currency translation adjustments[89] - The Company assesses impairment of accounts receivable collectively based on similar risk characteristics, recognizing losses in the Interim Consolidated Statement of Income as Administrative expenses[144] Investments and Acquisitions - The company acquired 51% of Bebidas del Paraguay S.A. and Distribuidora del Paraguay S.A. for USD 32,652,006 (equivalent to ThCh$ 31,549,348) on February 20, 2024[56] - The acquired business contributed revenues of ThCh$ 9,270,041 and net income of ThCh$ 108,368 for the period from October 14, 2024, to December 31, 2024[59] - CCU Inversiones S.A. increased its stake in Viña San Pedro Tarapacá S.A. to 85.1697% for ThCh$ 711,155, positively impacting equity by ThCh$ 681,186[72]