pania Cervecerias Unidas S.A.(CCU) - 2025 Q4 - Annual Report

Financial Performance - Net sales decreased by 11.8% to CLP 853,413 million in 4Q25, with a year-to-date (YTD) total of CLP 2,909,625 million, reflecting a 0.2% increase compared to YTD24[6] - Gross profit fell by 15.2% to CLP 392,642 million in 4Q25, with YTD gross profit at CLP 1,291,591 million, down 1.7% from YTD24[6] - EBITDA reached CLP 151,201 million in 4Q25, a 17.2% decrease, with YTD EBITDA totaling CLP 376,208 million, down 9.6%[6] - Net income contracted by 25.7% to CLP 55,096 million in 4Q25, with YTD net income at CLP 117,152 million, down 27.2%[6] - Net sales decreased by 11.8%, driven by a 12.4% drop in average prices in CLP, while volumes increased by 0.6%[17] - Gross profit reached CLP 392,642 million, a 15.2% decrease, with gross margin declining by 183 bps[17] - EBITDA totaled CLP 151,201 million, a 17.2% decrease year-over-year, with the Chile segment growing by 6.0% but offset by a 44.5% decrease in the International Business segment[17] - Net income was CLP 55,096 million, down from CLP 74,153 million the previous year, reflecting the overall performance challenges[17] - Total net sales for Q4 2025 reached CLP 853,413 million, a decrease of 11.8% compared to Q4 2024's CLP 968,078 million[47] - Gross profit for Q4 2025 was CLP 392,642 million, down 15.2% from CLP 463,084 million in Q4 2024, resulting in a gross margin of 46.0%[47] - EBIT for Q4 2025 decreased by 20.2% to CLP 109,913 million, with an EBIT margin of 12.9% compared to 14.2% in Q4 2024[45] - Net income attributable to equity holders for Q4 2025 was CLP 55,096 million, a decline of 25.7% from CLP 74,153 million in Q4 2024[45] - EBITDA for Q4 2025 was CLP 151,201 million, down 17.2% from CLP 182,621 million in Q4 2024, with an EBITDA margin of 17.7%[45] - For the twelve months ended December 31, 2025, net sales were CLP 2,909,625 million, a slight increase of 0.2% from CLP 2,904,566 million in 2024[46] - Gross profit for the twelve months ended December 31, 2025 was CLP 1,291,591 million, down 1.7% from CLP 1,313,609 million, resulting in a gross margin of 44.4%[46] - EBIT for the twelve months ended December 31, 2025 decreased by 15.9% to CLP 220,849 million, with an EBIT margin of 7.6%[46] - Net income attributable to equity holders for the twelve months ended December 31, 2025 was CLP 117,152 million, a decrease of 27.2% from CLP 160,944 million in 2024[46] Segment Performance - The Chile Operating segment's EBITDA grew by 7.8%, while the International Business and Wine segments saw contractions of 29.5% and 14.9%, respectively[10] - In Colombia, volumes reached 2.4 million hectoliters in 2025, marking a 6.1% increase, indicating robust brand portfolio development[14] - The Chile Operating segment saw a 5.5% increase in top line, driven by a 4.1% rise in volumes and a 1.3% increase in average prices[22] - The International Business Operating segment experienced a 36.3% decrease in net sales, primarily due to lower average prices and a 4.6% contraction in volumes[25] - The Wine Operating segment reported a 16.8% decline in net sales, with a 9.7% drop in volumes and a 7.9% decrease in average prices[26] Strategic Initiatives - The company integrated PepsiCo's beverage portfolio in Paraguay, contributing to regional growth and volume increases in the water business in Argentina[11] - CCU's strategic plan for 2025-2027 focuses on profitability, growth, and sustainability, with an emphasis on revenue management and high-margin innovations[11] - The company aims to continue developing its strategic pillars while navigating challenges in the macroeconomic environment, particularly in Argentina and the wine business[15] - The company launched new products in the flavored low alcohol ready-to-drink category and expanded its partnership with Nestlé for coffee drinks[24] Cost Management - MSD&A expenses decreased by 13.0% in CLP, improving as a percentage of net sales by 46 bps due to efficiencies across all segments[17] - Direct costs for Q4 2025 were CLP 368,591 million, a decrease of 7.8% from CLP 399,752 million in Q4 2024[47] - MSD&A expenses increased by 10.1% to CLP 285,497 million compared to CLP 328,318 million in Q4 2024[47] Cash Flow and Financial Position - Cash and cash equivalents at the end of 2025 were CLP 519,176 million, down from CLP 707,123 million at the end of 2024[50] - Total assets decreased to CLP 3,645,387 million in 2025 from CLP 3,989,717 million in 2024[50] - Total financial debt decreased to CLP 1,281,541 million in 2025 from CLP 1,439,668 million in 2024[51] - Net financial debt to EBITDA ratio increased to 2.03x in 2025 from 1.76x in 2024[51] - The liquidity ratio decreased to 1.90 in 2025 from 2.06 in 2024[51] - The company reported a net cash outflow from investing activities of CLP 164,300 million in 2025, compared to CLP 118,294 million in 2024[53]