pania Cervecerias Unidas S.A.(CCU) - 2025 Q3 - Quarterly Report

Financial Performance - In Q3 2025, consolidated volumes increased by 1.2% to 8,086 ThHL, while year-to-date volumes rose by 10.5% to 25,365 ThHL[5]. - Net sales decreased by 1.1% to CLP 658,628 million in Q3 2025, with a year-to-date increase of 6.2% to CLP 2,056,212 million[5]. - Gross profit fell by 2.9% to CLP 279,936 million, with a year-to-date gross profit of CLP 898,949 million, reflecting a 5.7% increase[5]. - Net income contracted by 47.6% to CLP 15,496 million, with earnings per share dropping to CLP 41.9[5][10]. - Net sales decreased by 1.1%, driven by a 2.2% decline in average prices in CLP, while volumes increased by 1.2%[19]. - Gross profit reached CLP 279,936 million, a decrease of 2.9%, with gross margin declining by 79 basis points[19]. - EBITDA increased by 4.6% to CLP 73,635 million, with a consolidated EBITDA margin expanding from 10.6% to 11.2%[19]. - EBIT grew by 8.2% to CLP 36,392 million, reflecting improved operational efficiency[19]. - Net income was CLP 15,496 million, down from CLP 29,548 million year-over-year[19]. - Net sales for Q3 2025 were CLP 658,628 million, a decrease of 1.1% compared to Q3 2024[47]. - Gross profit for Q3 2025 was CLP 279,936 million, down 2.9% year-over-year, with a gross margin of 42.5%[47]. - EBITDA for Q3 2025 increased by 4.6% to CLP 73,635 million, resulting in an EBITDA margin of 11.2%[47]. - Net income attributable to equity holders for Q3 2025 was CLP 15,496 million, a decline of 47.6% from Q3 2024[47]. - For the nine months ended September 30, 2025, net sales rose by 6.2% to CLP 2,056,212 million compared to the same period in 2024[48]. - EBIT for the nine months ended September 30, 2025, was CLP 110,936 million, down 11.2% year-over-year, with an EBIT margin of 5.4%[48]. Segment Performance - The International Business segment saw a volume increase of 5.3%, but net sales contracted by 8.9% due to a 13.5% decline in average prices[12]. - The Wine segment experienced a 1.6% increase in top line, driven by a 4.8% rise in average prices, despite a 3.0% decline in volumes[13]. - The Chile operating segment reported a 1.8% increase in top line, supported by a 2.4% rise in average prices, despite a 0.6% decline in volumes[11]. - The International Business Operating segment saw a volume increase of 5.3%, but net sales contracted by 8.9% due to a 13.5% drop in average prices in CLP[28]. - The Wine Operating segment reported a 1.6% increase in top line, driven by a 4.8% rise in average prices, while volumes decreased by 3.0%[29]. Strategic Focus - The company is focused on its 2025-2027 Strategic Plan, emphasizing profitability through revenue management and operational efficiencies[16]. - The company continues to build a robust brand portfolio in Colombia, achieving low-double digit volume growth[14]. - The company launched new products, including Rockstar Sandía Punch and Gatorade Limón, to align with market trends[27]. Financial Position and Cash Flow - The company reported a total financial debt of CLP 1,296,584 million, down from CLP 1,439,668 million in December 2024[54]. - Net financial debt to EBITDA ratio increased to 1.96x from 1.76x in the previous year, indicating a rise in leverage[54]. - The company’s total assets decreased to CLP 3,597,681 million from CLP 3,989,717 million in December 2024[54]. - The company’s liquidity ratio remained stable at 2.06, indicating strong short-term financial health[54]. - Cash and cash equivalents at the end of Q3 2025 decreased to CLP 498,785 million from CLP 599,279 million in Q3 2024, representing a decline of 16.7%[56]. - Net cash inflows from operating activities for YTD September 2025 were CLP 113,244 million, down 15.1% from CLP 133,354 million in 2024[56]. - The net cash outflow from investing activities for YTD September 2025 was CLP 115,999 million, significantly higher than CLP 78,008 million in 2024, indicating increased investment activity[56]. - The net cash outflow from financing activities for YTD September 2025 was CLP 173,744 million, compared to CLP 67,176 million in 2024, reflecting a substantial increase in financing costs[56]. - The effects of exchange rate changes on cash and cash equivalents resulted in a negative impact of CLP 31,840 million for YTD September 2025, compared to a negative CLP 7,045 million in 2024[56]. - The consolidated EBITDA excluding the impact of IAS 29 for Q3 2025 was CLP 74,088 million, compared to CLP 70,453 million in Q3 2024, showing a growth of 5.1%[56]. - The cash and cash equivalents at the beginning of the year for 2025 were CLP 707,123 million, up from CLP 618,154 million in 2024, indicating a stronger starting position[56].