Compañía Cervecerías Unidas SA Q1 FY2025 earnings call

• In Q1 2025, CCU delivered higher financial results with consolidated EBITDA up 6% and net income up 10.7% despite a volatile environment.
• Organic consolidated volumes were down 1.8% across operating segments. Focus on 2025-2027 strategic plan pillars: profitability, growth, sustainability, with emphasis on profitability via revenue management and efficiency.
• Chile segment: top line up 2.8% but volume down, gross profit down, EBITDA down. International segment: net sales up 6.3%, gross profit up 10.7%, EBITDA up 28.1%. U.S. segment: top line up 2.1% but volume down, gross profit down, EBITDA down slightly.
• JVs and associated businesses in Colombia posted better financial results vs last year despite slight volume contraction.

Chile Operating segment: Organic net sales up 2.8% due to 4.8% increase in average prices while volumes were down 1.9%. Gross profit decreased 1.1%, EBITDA reached CLP 94,400 million, a 2.4% decrease. International business operating segment: Organic net sales recorded a 6.3% increase, driven by higher average prices offsetting volume contraction. Organic gross profit expanded 10.7%, EBITDA reached CLP 33,435 million, a 28.1% expansion. U.S. operating segment: Top-line expanded 2.1% on 6.2% price increase, volumes down 3.8%. Gross profit down 1.6%, EBITDA reached CLP 6,592 million, a 1.1% decrease.

• The scenario for 2025 will continue to be challenging and volatile.
• Focus on implementing the 2025-2027 strategic plan, including revenue management, efficiency, brand equity, sales execution, innovations, and sustainability efforts in Juntos por un Mejor Vivir strategy.

• Volatile business environment impacting volumes and margins.
• Alcohol consumption trends posing challenges to volumes, especially in wine category.
• Macroeconomic uncertainties in Argentina affecting pricing and volumes.
• Input cost pressures, particularly in Chile's manufacturing costs.

Q: Weak demand in wine, local and exports, volume behavior.

A: Patricio Jottar discussed wine consumption decline vs beer and spirits, innovation in low-alcohol products to offset trends.

Q: Change in beer consumption habits, soda vs beer.

A: Patricio Jottar mentioned beer per capita decline globally but Chile's slight increase, and challenges in beer consumption trends