6-K 1 ccupr4q11_6k.htm EARNINGS RELEASE 4Q11 ccupr4q11_6k.htm - Generated by SEC Publisher for SEC Filing


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

     Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

COMPANIA CERVECERIAS UNIDAS S.A.
(Exact name of Registrant as specified in its charter)
UNITED BREWERIES COMPANY, INC.
(Translation of Registrant’s name into English)

Republic of Chile
(Jurisdiction of incorporation or organization)
Vitacura 2670, 23rd floor, Santiago, Chile
(Address of principal executive offices)
 _________________________________________

Securities registered or to be registered pursuant to section 12(b) of the Act.

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F ___

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ___ No X

 

 

 

CCU REPORTS CONSOLIDATED FOURTH QUARTER 2011 RESULTS (1)

 

FOURTH QUARTER

Net sales up 26.0%, EBIT(2) up 41.6%, EBITDA(3) up 33.2% 

Net profit(4) up 22.1% to CLP 141.3 per share

YTD

Net sales up 15.7%, EBIT up 17.7%, EBITDA up 15.1% 

Net profit up 10.9% to CLP 385.4 per share

 

FOURTH QUARTER BEFORE EXCEPTIONAL ITEMS (EI)(5)

EBIT up 41.5%, EBITDA up 33.1% 

Net profit up 33.6% to CLP 154.6 per share

YTD BEFORE EXCEPTIONAL ITEMS

EBIT up 14.6%, EBITDA up 12.6% 

Net profit up 10.3% to CLP 373.5 per share

 

 

(Santiago, Chile, February 1, 2012) -- CCU announced today its consolidated financial results for the fourth quarter ended December 31, 2011(6).

 

COMMENTS FROM THE CEO

 

CCU closed 2011 with an outstanding fourth quarter after a difficult first semester when increasing raw material costs, in addition to higher cost of fuel and energy, stressed the results. At the beginning of the year the Company took various actions in order to mitigate the adverse scenario’s effects, which included among others, earlier sales price adjustments, a renewed effort to control costs and expenses, acceleration of introducing new products and of the integration of new businesses like cider in Argentina and Pernod Ricard products in Chile. All these actions begun to cause effects during the third quarter and allowed us to deliver the fourth quarter results we hereby present.

 

 


(1)Statements made in this press release that relate to CCU’s future performance or financial results are forward-looking statements, which involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ. We undertake no obligation to update any of these statements. Persons reading this press release are cautioned not to place undue reliance on these forward-looking statements. These statements should be taken in conjunction with the additional information about risk and uncertainties set forth in CCU’s annual report on Form 20-F filed with the US Securities and Exchange Commission and in the annual report submitted to the SVS and available in our web page.

(2)EBIT stands for Earnings Before Interest and Taxes, and corresponds to profit before Taxes, Interests, Results of indexed units, Share of profits of associates and joint ventures and profits/(losses) on exchange rate differences.

(3)EBITDA represents EBIT plus depreciation and amortization. EBITDA is not a calculation based on IFRS principles. For more detail, please see full note before Exhibits.

(4)Net profit attributable to parent company shareholders as per IFRS.

(5)Exceptional items (EI), formerly Non recurring items (NRI).

(6)All the comments below refers to Q4’11 figures compared to Q4’10, under IFRS. Figures have been rounded in graphics, charts and exhibits and may not sum exactly the total.

 

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We are pleased to communicate that the consolidated volume grew 10.0% in Q4’11, above the 4.5% consolidated volume growth in Q4’10. Organic growth(7) accounted for 6.9 percentage points out of the total growth of 10.0%. All segments contributed to this result: Spirits in Chile increased 19.4%, including 15.9 percentage points of non-organic growth (which represent 0.2 percentage points of the consolidated growth), Wines 10.9%, Beer Chile 8.4%, Non-alcoholic beverages 8.2% and Beer Argentina 2.8%. Also the non-organic growth corresponding to the cider and spirits in Argentina, contributed in 2.9 percentage points to the consolidated growth.

 

The described volume performance was coupled with an average price increase of 15.0% due mostly to price increases during the year in order to restore margins, but also due to changes towards a higher-end mix. The combined effect of higher volume and higher average price resulted in a 26.0% increase of Net sales and a 26.4% Gross profit increase, with a gross margin slightly above the one in Q4’10.

 

With regards to the 21.7% MSD&A(8) increase, more than three quarters is due to higher expenses in Argentina related to inflationary pressures, to exchange rates conversion and to the expenses of the cider business acquired at the end of December 2010. The MSD&A expenses in Chile increased 2.5% above inflation which is explained mostly by higher cost of distribution and expenses related to the overall better performance of the Company. As a percentage of Net sales, MSD&A decreases 121 bps on a consolidated basis; moreover, isolating the Argentine businesses, MSD&A decreases 252 bps.

 

The EBITDA increased 33.2%, and the EBITDA margin was 26.7%, which is 150 bps higher than the EBITDA margin in Q4’10.

 

The timely actions taken to restore the proper margins, together with a responsive market, and, consequently, the Q4’11 good results, give us the satisfaction of having accomplished a target that just after the first semester seemed difficult to reach.

 

 

 

 

 

 

 

 

_________________________

(7) Organic growth excludes sales from new endeavors of the last twelve months (cider and liquors in Argentina and Pernod Ricard in Chile).

(8) Marketing/Selling, Distribution and Administrative expenses (MSD&A).

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CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (Exhibits 1 & 2)

 

 

NET SALES

 

Q4’11        Total Net sales increased 26.0% to CLP 315,857 million as a result of a 15.0% higher average price and 10.0% higher consolidated volumes. This volume growth is split into 6.9 percentage points of organic growth and 3.1 percentage points of non-organic growth, mostly cider and spirits in Argentina and spirits in Chile. Another positive contribution to the volume growth was the higher average temperature in the Center-South region in Chile compared with the previous year’s weather. Volumes increased in all segments: Spirits 19.4%, Wine 10.9%, Beer Chile 8.4%, Non-alcoholic beverages 8.2% and Beer Argentina 2.8%. Additionally, Argentina had non-organic sales of 148.9 MHls corresponding to the cider and spirits operation acquired in December 2010. The higher average price is mainly explained by a 37.1% increase in the average price of Beer in Argentina, affected also by F/X conversion and change in mix, an increase of 24.3% in Spirits due mostly to change in mix as we begun to distribute the Pernod Ricard products, 6.1% in Wine, 4.8% in Non-alcoholic beverages and 4.4% in Beer Chile.

 

2011          Accumulated Net sales increased 15.7% amounting to CLP 969,551 million, as a result of 6.4% higher consolidated volumes and 9.0% higher average prices.

 

 

 

       * Percentage calculations exclude “Other/Eliminations”

 

 

 

 

 

 

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Net sales by segment

 

                

           
  Q4 (million CLP)
  2011 2010 % Chg. 
Beer Chile  102,912   32.6%   91,060  36.3%  13.0% 
Beer Argentina  71,546   22.7%   50,687  20.2%  41.2% 
Non-alcoholic beverages  75,158   23.8%   66,424  26.5%  13.1% 
Wine  36,479   11.5%   31,634  12.6%  15.3% 
Spirits  16,436   5.2%   11,490  4.6%  43.0% 
Other/Eliminations  13,326   4.2%   -571  -0.2%  - 
TOTAL  315,857   100.0%   250,725  100.0%  26.0% 
 
  YTD (million CLP)
  2011 2010 % Chg. 
Beer Chile  313,017   32.3%   287,981  34.4%  8.7% 
Beer Argentina  198,181   20.4%   156,363  18.7%  26.7% 
Non-alcoholic beverages  248,509   25.6%   223,476  26.7%  11.2% 
Wine  138,348   14.3%   132,293  15.8%  4.6% 
Spirits  50,936   5.3%   43,218  5.2%  17.9% 
Other/Eliminations  20,560   2.1%   -5,072  -0.6%  - 
TOTAL  969,551   100.0%   838,258  100.0%  15.7% 

 

GROSS PROFIT

 

Q4’11        Increased 26.4% to CLP 176,556  million as a result of 26.0%  higher Net sales, partially offset by 25.4% higher Cost of goods sold (COGS) which amounted to CLP 139,301  million. As a percentage of Net sales, COGS decreased from 44.3% in Q4’10 to 44.1% in Q4’11. Consequently, the Gross profit as a percentage of Net sales increased from 55.7% in Q4’10 to 55.9%  this quarter.

 

2011          Increased 14.2%  to CLP 518,987 million and, as a percentage of Net sales, the consolidated Gross profit decreased from 54.2% to 53.5% when compared to 2010.

 

EBIT                                                                                                                                                  

 

Q4’11        Increased 41.6% to CLP 71,994  million as a result of higher Gross profit, partially compensated by higher Marketing/Selling, Distribution and Administrative expenses (MSD&A). MSD&A expenses increased 21.7% in Q4’11, to CLP 109,602  million. MSD&A expenses, as a percentage of Net sales, decreased from 35.9%  in Q4’10 to 34.7%  in Q4’11. The increase in MSD&A is mostly explained by the cider operation acquired in late 2010, the inflationary pressures in Argentina and higher distribution costs. EBIT margin increased from 20.3% in Q4’10 to 22.8% in Q4’11. EBIT before Exceptional items increased 41.5% to CLP 71,938 million and EBIT margin before Exceptional items increased from 20.3% in Q4’10 to 22.8% in Q4’11.

 

2011          Increased 17.7% amounting to CLP 190,760  million due to a higher positive Exceptional items effect this year and to a better 2011 outcome. The CLP 12,905 million positive Exceptional items, mostly due to the insurance settlement during 2011, almost doubled the CLP 6,791  million for the sale of a site in Lima during 2010. The consolidated EBIT margin was 19.7%, increasing 0.4 percentage points when compared to 2010. The accumulated EBIT before Exceptional items increased 14.6% and its margin decreased from 18.5% in 2010 to 18.3% in 2011.

 

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* Percentage calculations exclude “Other/Eliminations”

 

 

 

EBIT and EBIT margin by segment

 

             

           
  Q4
  EBIT (million CLP)  EBIT margin 
  2011  2010  % Chg  2011  2010 
Beer Chile  35,776   30,488  17.3%   34.8%   33.5% 
Beer Argentina  10,945   8,905  22.9%   15.3%   17.6% 
Non-alcoholic beverages  11,610   9,353  24.1%   15.4%   14.1% 
Wine  4,666   917  408.7%   12.8%   2.9% 
Spirits  1,721   1,573  9.4%   10.5%   13.7% 
Other/Eliminations  7,277   -395  NM   -   - 
TOTAL   71,994   50,842  41.6%   22.8%   20.3% 
 
  YTD
  EBIT (million CLP)  EBIT margin 
  2011  2010  %Chg  2011  2010 
Beer Chile  99,412   85,295  16.6%   31.8%   29.6% 
Beer Argentina  25,129   22,028  14.1%   12.7%   14.1% 
Non-alcoholic beverages  36,318   32,364  12.2%   14.6%   14.5% 
Wine  16,890   10,256  64.7%   12.2%   7.8% 
Spirits  6,690   6,409  4.4%   13.1%   14.8% 
Other/Eliminations  6,321   5,698  10.9%   -   - 
TOTAL   190,760   162,049  17.7%   19.7%   19.3% 

 

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EBITDA

 

Q4’11         Increased 33.2%, to CLP 84,317 million explained by higher Gross profit, partially compensated by higher MSD&A. The consolidated EBITDA margin increased from 25.2% in Q4’10 to 26.7% in Q4’11. EBITDA before Exceptional items increased 33.1% to CLP 84,261 million and EBITDA margin increased from 25.2% to 26.7%.

 

2011          Increased 15.1%  to CLP 238,542 million and the EBITDA margin decreased from 24.7% in 2010 to 24.6% in 2011. The accumulated EBITDA before Exceptional items increased 12.6% to CLP 225,637  million and the margin decreased from 23.9% in 2010 to 23.3% in 2011.

 

 

* Percentage calculations exclude “Other/Eliminations”

 

 

 

EBITDA and EBITDA margin by segment

 

             

           
  Q4
  EBITDA (million CLP)  EBITDA margin 
  2011  2010  % Chg  2011  2010 
Beer Chile  39,834   35,565  12.0%   38.7%   39.1% 
Beer Argentina  12,431   10,179  22.1%   17.4%   20.1% 
Non-alcoholic beverages  14,362   11,967  20.0%   19.1%   18.0% 
Wine  6,241   2,533  146.4%   17.1%   8.0% 
Spirits  2,202   1,983  11.0%   13.4%   17.3% 
Other/Eliminations  9,247   1,076  759.7%   -   - 
TOTAL   84,317   63,303  33.2%   26.7%   25.2% 
 
  YTD
  EBITDA (million CLP)  EBITDA margin 
  2011  2010  % Chg  2011  2010 
Beer Chile  115,577   101,041  14.4%   36.9%   35.1% 
Beer Argentina  30,480   26,879  13.4%   15.4%   17.2% 
Non-alcoholic beverages  46,746   41,982  11.3%   18.8%   18.8% 
Wine  23,308   16,727  39.3%   16.8%   12.6% 
Spirits  8,567   8,081  6.0%   16.8%   18.7% 
Other/Eliminations  13,865   12,540  10.6%   -   - 
TOTAL   238,542   207,250  15.1%   24.6%   24.7% 

 

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ALL OTHER

 

Q4’11         In All other we include the following: Other gains/(losses) and Exchange rate differences, Result of indexed units, and Share of profits of associates and joint ventures. The total variation of these accounts, when compared to the same quarter last year, is a lower result of CLP 1,013  million mainly explained by:

 

·         Results of indexed units,  which decreased CLP 1,221  million, mainly due to 1.28% increase of the UF value in Q4’11 compared with 0.54% UF variation in Q4’10, applied to a lower UF liability since VSPT refinanced 50% of the long term bonds with USD and Euro denominated debt. (The UF is a monetary unit indexed to the CPI variation).

 

·         Share of profits of associates and joint ventures, which decreased CLP 138  million, mainly explained by lower results in FOODs Compañía de Alimentos CCU S.A., Cervecería Austral S.A. and Viña Valles de Chile S.A.(9).

 

                      These results were partially offset by:

 

·         Other gains/(losses) and Exchange rate differences, which increased CLP 300  million mostly due to gains related to hedges covering foreign exchange   variations on taxes.

 

2011          The negative result decreased CLP 3,389  million from a loss of CLP 14,457 million to a loss of CLP 11,068 million, due mostly to higher profits in Other gains/(losses) and lower Net financing expenses.

 

 

INCOME TAX  

 

Q4’11        Income tax increased CLP 9,438  million mostly due to (a) higher profits coupled with a higher corporate income tax rate in Chile(10), (b) the effect of foreign exchange fluctuations on taxes compensated by a reverse sign entry in Other gains/(losses), (c) the settlement of a case with the Chilean IRS(11), and (d) higher profits in Argentina levied with a higher corporate income tax.

 

2011                  Increased CLP 17,234  million mainly due to the above explanations, a one-time loss in Aguas CCU-Nestlé taxes, and other prior year’s settlements.

 

 

 

 

 

 

_____________________

(9)The share of profits of Viñas Valles de Chile S.A. considers only the first two months of the fourth quarter. As of December 2011, Viñas Valles de Chile S.A. consolidates under the segment “Wines” after the split of its two main components: Tabalí and Leyda; the latter remained in VSPT.

(10)The corporate income tax rate in Chile was increased from 17% in 2010 to 20% in 2011 with the purpose of financing the reconstructions works after the 2010 earthquake.

(11)CLP 4,273 million considered as an Exceptional item.

 

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MINORITY INTEREST

 

Q4’11         Increased CLP 2,556  million to CLP 4,630  million mostly due to the higher results in Viña San Pedro Tarapacá, Aguas CCU-Nestlé and to the new cider business in Argentina.

 

2011           Increased CLP 2,813  million to CLP 12,051  million mainly due to the higher results in Aguas CCU-Nestlé and in Viña San Pedro Tarapacá, the latter explained mainly by the effect of the insurance claim settlement.

 

 

NET PROFIT

 

Q4’11         Increased CLP 8,146  million to CLP 44,990  million due mostly to a higher EBIT partially compensated by lower Results of indexed units, a higher Minority interest, and higher Income tax. Net profit before Exceptional items increased 33.6% to CLP 49,227 million.

 

2011           Increased CLP 12,052  million to CLP 122,752  million due mostly to higher EBIT, better Other gains and lower Net financing expenses, partially compensated by lower Results of indexed units, higher Income tax and higher Minority interest. Net profit before Exceptional items increased 10.3% to CLP 118,972 million.

 

 

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EXCEPTIONAL ITEMS (EI)

 

During 2011 CCU recorded the following Exceptional items at EBIT level: (a) the settlement of the insurance claims related to the February 27, 2010 earthquake in Chile generated a positive Exceptional item of CLP 13,289 million in 2011 to make up for the operational losses caused by the natural disaster, and (b) CLP 384 million severance paid related to the cider business in Argentina, for a net total of CLP 12,905 million. In 2010, we recorded an Exceptional item derived from the sale of a site in Lima which generated one-time profit before taxes of CLP 6,791 million.

 

The following schedules show the EBIT/EBITDA and EBIT/EBITDA margins YTD, both before Exceptional items:

 

 

           
YTD AS OF DECEMBER EBIT before EI (million CLP)  EBIT margin before EI
2011  2010  % Chg  2011  2010 
Beer Chile  94,083   85,295  10.3%   30.1%   29.6% 
Beer Argentina  25,129   22,028  14.1%   12.7%   14.1% 
Non-alcoholic beverages  35,083   32,364  8.4%   14.1%   14.5% 
Wine  10,422   10,256  1.6%   7.5%   7.8% 
Spirits  6,383   6,409  -0.4%   12.5%   14.8% 
Other/Eliminations  6,755   -1,093  NM   -   - 
TOTAL  177,855   155,258  14.6%   18.3%   18.5% 
 
 
YTD AS OF DECEMBER EBITDA before EI (million CLP)  EBITDA margin before EI 
2011  2010  % Chg  2011  2010 
Beer Chile  110,248   101,041  9.1%   35.2%   35.1% 
Beer Argentina  30,480   26,879  13.4%   15.4%   17.2% 
Non-alcoholic beverages  45,510   41,982  8.4%   18.3%   18.8% 
Wine  16,841   16,727  0.7%   12.2%   12.6% 
Spirits  8,260   8,081  2.2%   16.2%   18.7% 
Other/Eliminations  14,298   5,749  148.7%   -   - 
TOTAL  225,637   200,459  12.6%   23.3%   23.9% 

 

 

 

In addition, at Net profit level, we have considered CLP 4,273 million as an Exceptional item, due to a final tax settlement in December 31, 2011.

 

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BUSINESS UNITS HIGHLIGHTS (Exhibits 3 & 4) 

 

 

Business segments are reflected in the same way that each Strategic Business Unit (SBU) is managed. Corporate shared services and distribution and logistics expenses have been allocated to each SBU based on Service Level Agreements. The non-allocated corporate overhead expenses, the result of the logistics subsidiary and the cider business in Argentina are included in “Other/Eliminations”.

 

 

BEER CHILE  

                   

Net sales increased 13.0% to CLP 102,912 million as a result of 8.4% higher sales volumes and 4.4% higher average prices.

 

EBIT          increased 17.3% to CLP 35,776 million, mainly as a result of higher Gross profit, partially compensated by higher MSD&A expenses. The Gross profit increase is explained by higher Net sales, partially compensated by higher COGS which increased 10.7% to CLP 38,282 million. The higher cost of raw material and energy explained mostly the higher COGS. As a percentage of Net sales, COGS decreased from 38.0% in Q4’10 to 37.2% in Q4’11. MSD&A expenses increased 13.4% to CLP 29,545  million mostly due to higher distribution and marketing expenses. As a percentage of Net sales, MSD&A increased from 28.6% to 28.7% in Q4’11. The EBIT margin increased from 33.5% to 34.8% in Q4’11.

 

EBITDA    increased 12.0% to CLP 39,834 million and the EBITDA margin was 38.7% or 0.4  percentage points lower than in Q4’10.

 

Comments Pursuant an effective commercial strategy and higher average temperature during the quarter, the volumes increased significantly in Q4’11. All categories experienced growth in the upper single digits or above, highlighting the premium category which continues growing at a double digit rate. The higher average price is mainly due to the 7% price increase with inception on June 1, 2011.

 

Notwithstanding the positive mentioned growth figures in 2011, due to the market dynamics with aggressive competitive price pressures and growing imports, we lost some market share reaching an estimate of 80.2% for the full year.

 

BEER ARGENTINA

 

Net sales measured in Chilean pesos, increased 41.2% to CLP 71,546 million, as a result of 2.8% higher sales volumes and 37.1% higher average prices, affected by F/X conversion, changes in mix, reposition of the Budweiser brand and price increases in order to partially compensate the higher costs and expenses.

 

EBIT          measured in Chilean pesos, increased 22.9% to CLP 10,945 million in Q4’11, as a consequence of higher Gross profit, partially compensated by higher MSD&A. Gross profit increased due to higher Net sales, enough to compensate the higher

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                   COGS, which increased 30.2% to CLP 26,165  million this quarter. The COGS increase is explained mainly by higher cost of raw material, higher personnel costs, and energy costs. As a percentage of Net sales, COGS decreased from 39.6% to 36.6% in Q4’11. As a consequence, the gross margin increased from 60.4% to 63.4%. MSD&A expenses increased 56.8%, from CLP 21,914  million to CLP 34,351  million, due to inflationary pressures, unionization of sales personnel, higher marketing, distribution and sales taxes expenses. As a percentage of Net sales, MSD&A expenses increased from 43.2% to 48.0%. The EBIT margin decreased from 17.6% in Q4’10 to 15.3% in Q4’11 due to cost and expense pressures not fully compensated by higher prices.

 

EBITDA    increased 22.1% to CLP 12,431  million this quarter and the EBITDA margin decreased from 20.1% to 17.4%. 

 

Comments Sales prices were adjusted in mid-November 2011 in order to partially compensate for the inflationary cost pressures. Total volume grew 2.8%, where premium brands’ volumes increased at a double digit rate. The results in US dollars are as follows: EBIT increased 33,9% and EBITDA increased 31.5%, while the EBITDA margin decreased from 21.0% to 20.6% in Q4’11. These results exclude cider and spirits in Argentina which are presented in the column “Other/eliminations” and contributed with an EBIT of CLP 4,266 million and an EBITDA of CLP 4,404 million in Q4’11.

 

NON-ALCOHOLIC BEVERAGES

 

Net sales increased 13.1% to CLP 75,158  million due to higher volumes of 8.2% and 4.8% increase in the average price.

 

EBIT          increased 24.1% to CLP 11,610 million, due to higher Net sales offsetting the higher COGS and higher MSD&A expenses. COGS increased 14.9% to CLP 37,507  million mainly due to cost increases in raw material such as sugar and resin, as well as in energy and personnel costs. COGS, as a percentage of Net sales, increased from 49.1% to 49.9%. As a consequence, gross margin decreased from 50.9% to 50.1%. MSD&A increased 6.0% to CLP 26,051 million mainly due to higher distribution expenses, while as a percentage of Net sales, MSD&A decreased from 37.0% to 34.7%. The EBIT margin increased from 14.1% to 15.4%. 

 

EBITDA    increased 20.0% to CLP 14,362  million and the EBITDA margin increased to 19.1%, 1.1  percentage points higher than in Q4’10.

 

Comments Volumes had a good performance during the quarter following the industry growth. Water increased 17.3%, Nectars 12.0%, and Soft drinks 4.5%. The segment’s average price increased 4.8% during the quarter. The 8.2% consolidated volume increase, coupled with higher average prices allowed to dilute expenses and fixed costs, thus improving EBIT and EBITDA margins.

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WINE

 

Net sales increased 15.3% to CLP 36,479  million due to an increase in volume of 10.9% and a higher average price of 6.1% in CLP, excluding bulk wine. Chile exports volume increased 14.8% whereas the volumes in Argentina decreased 8.6%. Export prices in USD increased 1.4% in Chile and 7.5% in Argentina. The Chile domestic volume increased 9.6% and domestic average prices increased 2.3% as a result of a 2% price increase in November.

 

EBIT          increased from CLP 917  million to CLP 4,666  million in Q4’11, due to higher Gross profit as a result of higher Net sales offsetting the increase in COGS and the sale of dispensable assets. COGS increased 7.4% from CLP 20,978  million to CLP 22,527  million, however the cost per unit decreased 3.2%. As a percentage of Net sales, COGS decreased from 66.3% to 61.8%. Consequently, the gross margin increased from 33.7% to 38.2% in Q4’11. MSD&A increased 10.6% to CLP 10,882  million due mostly to expenses related to the better results. As a percentage of Net sales, MSD&A decreased from 31.1% to 29.8%. As a consequence, the EBIT margin increased from 2.9%  in Q4’10 to 12.8% in Q4’11.

 

EBITDA    increased to CLP 6,241 million and the EBITDA margin increased from 8.0%  to 17.1%.

 

Comments VSPT has been focusing on discipline pricing, especially in the export markets, and brand building. This is in line with VSPT’s commercial strategy to improve long term profitability. The average price increased 6.1%, driven by Chile exports which increased in 8.2%. In addition, in November VSPT was selected by the American specialized magazine Wine Enthusiast as the New World Winery of the Year.

 

SPIRITS

 

Net sales increased 43.0% to CLP 16,436 million as a result of 24.3% higher average price and 19.4% higher volume, both positively affected by the distribution of Pernod Ricard products which started in July 2011.

                 

EBIT          increased 9.4% from CLP 1,573  million to CLP 1,721  million, mainly due to higher Net sales, partially compensated by higher COGS and MSD&A. COGS increased 73.2% from CLP 6,093  million to CLP 10,554  million, mostly due to the distribution of the Pernod Ricard products in the market which have both, a higher price and a higher cost per unit. As a percentage of Net sales, COGS increased from 53.0% to 64.2%. MSD&A expenses increased 5.9% to CLP 4,278  million, mostly due to higher distribution expenses in connection to the new product line and to the higher fuel cost. As a percentage of Net sales, MSD&A decreased from 35.2% to 26.0%. The EBIT margin decreased from 13.7% to 10.5%. 


 

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EBITDA    increased 11.0% from CLP 1,983  million to CLP 2,202  million, while the EBITDA margin decreased from 17.3% to 13.4%. 

 

Comments CPCh begun to distribute the Pernod Ricard products through the traditional channel starting July 1st, 2011. The increase in costs, MSD&A and revenue are explained principally by this new product line, as well as the drop in EBITDA margin since the distribution margin is lower than the margins of the traditional spirits produced by CPCh. Conversely, the ROCE is higher since it requires lower capital employed. In Q4’11 the Company subscribed a license contract to distribute the Bauzá premium pisco brand, which complements the company’s portfolio of premium brands. In addition, it acquired 49% of the licensor, Compañía Pisquera Bauzá.

 

 

Note: EBITDA represents EBIT plus depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles. The amounts in the EBITDA calculation, however, are derived from amounts included in the historical statements of income data. EBITDA is presented as supplemental information because management believes that EBITDA is useful in assessing the Company’s operations. EBITDA is useful in evaluating the operating performance compared to that of other companies, as the calculation of EBITDA eliminates the effects of financing, income taxes and the accounting of capital spending, which items may vary for reasons unrelated to overall operating performance. When analyzing the operating performance, however, investors should use EBITDA in addition to, not as an alternative for, EBIT and net income. Investors should also note that CCU’s presentation of EBITDA may not be comparable to similarly titled measures used by other companies.

 

13

 

 

 

 

           
Exhibit 1: Income Statement (Fourth Quarter 2011)          
Q4 2011  2010  2011(1)  2010(1)  VARIANCE % 
(CLP million)  (CLP million)  (US$ million)  (US$ million)   
Core revenue  310,052  245,230  597.2  472.3  26.4  
Other revenue  5,805  5,495  11.2  10.6  5.6  
Interco sales revenue  0  0  0.0  0.0  -  
Net sales   315,857   250,725   608.4   482.9   26.0  
Cost of goods sold  (139,301)  (111,076)  (268.3)  (213.9)  25.4  
% of net sales  44.1  44.3  44.1  44.3   
Gross profit   176,556   139,649   340.1   269.0   26.4  
MSD&A(2)  (109,602)  (90,041)  (211.1)  (173.4)  21.7  
% of net sales  34.7  35.9  34.7  35.9   
Other operating income/(expenses)  4,984  1,234  9.6  2.4  303.8  
EBIT before Exceptional Items(3)   71,938   50,842   138.6   97.9   41.5  
% of net sales  22.8  20.3  22.8  20.3   
Exceptional items  56  0  0.1  0.0  -  
EBIT   71,994   50,842   138.7   97.9   41.6  
% of net sales  22.8  20.3  22.8  20.3   
Net financing expenses  (2,096)  (2,142)  (4.0)  (4.1)  (2.1)  
Share of profits of associates and joint ventures  201  339  0.4  0.7  (40.8)  
Exchange rate differences  (429)  (262)  (0.8)  (0.5)  64.0  
Results of indexed units  (2,285)  (1,064)  (4.4)  (2.0)  114.7  
Other gains/(losses)  (333)  (801)  (0.6)  (1.5)  n/a  
ALL OTHER   (4,943)   (3,930)   (9.5)   (7.6)   25.8  
INCOME/(LOSS) BEFORE TAXES   67,051   46,912   129.1   90.4   42.9  
Income tax(4)  (17,431)  (7,992)  (33.6)  (15.4)  118.1  
NET PROFIT FOR THE PERIOD   49,621   38,919   95.6   75.0   27.5  
 
 
NET PROFIT before EI ATTRIBUTABLE TO:
PARENT COMPANY SHAREHOLDERS  		          
49,227  36,845  94.8  71.0  33.6 
 
NET PROFIT ATTRIBUTABLE TO:
PARENT COMPANY SHAREHOLDERS  		          
44,990  36,845  86.7  71.0  22.1 
MINORITY INTEREST   4,630   2,075   8.9   4.0   123.2  
 
Net profit attributable to Parent Company Shareholders as % of net sales  14.2  14.7  14.2  14.7   
 
Earnings per share
Earnings per ADR  		 141.3  115.7  0.3  0.2  22.1 
706.3  578.4  1.4  1.1  22.1 
 
EBITDA(5) before Exceptional items   84,261   63,303   162.3   121.9   33.1  
% of net sales  26.7  25.2  26.7  25.2   
EBITDA   84,317   63,303   162.4   121.9   33.2  
% of net sales  26.7  25.2  26.7  25.2   

 

           
OTHER INFORMATION           
Number of shares  318,502,872  318,502,872  318,502,872  318,502,872   
Shares per ADR  5  5  5  5   
 
DEPRECIATION  12,323  12,462  23.7  24.0  (1.1) 
Capital Expenditures  33,582  16,239  64.7  31.3  106.8 
(1) Exchange rate: US$1.00 = CLP 519,20
(2) MSD&A refers to Marketing selling, distribution and administrative expenses
(3) Exceptional Items (IE), formerly Non recurring items (NRI)
(4) CLP 4,273 million considered as an Exceptional item, due to a final tax settlement in December 31, 2011
(5) Please see full note in page before exhibits
 

14

 

 

 

 

           
Exhibit 2: Income Statement (Twelve Months ended on December 31, 2011)        
YTD AS OF DECEMBER 2011  2010  2011(1)  2010(1)  VARIANCE % 
(CLP million)  (CLP million)  (US$ million)  (US$ million)   
Core revenue  951,105  820,627  1,831.9  1,580.6  15.9  
Other revenue  18,446  17,631  35.5  34.0  4.6  
Interco sales revenue  0  0  0.0  0.0  -  
Net sales   969,551   838,258   1,867.4   1,614.5   15.7  
Cost of goods sold  (450,563)  (383,813)  (867.8)  (739.2)  17.4  
% of net sales  46.5  45.8  46.5  45.8   
Gross profit   518,987   454,445   999.6   875.3   14.2  
MSD&A(2)  (348,363)  (300,659)  (671.0)  (579.1)  15.9  
% of net sales  35.9  35.9  35.9  35.9   
Other operating income/(expenses)  7,230  1,472  13.9  2.8  391.3  
EBIT before Exceptional Items(3)   177,855   155,258   342.6   299.0   14.6  
% of net sales  18.3  18.5  18.3  18.5   
Exceptional items  12,905  6,791  24.9  13.1  90.0  
EBIT   190,760   162,049   367.4   312.1   17.7  
% of net sales  19.7  19.3  19.7  19.3   
Net financing expenses  (7,334)  (8,288)  (14.1)  (16.0)  (11.5)  
Share of profits of associates and joint ventures  1,069  966  2.1  1.9  10.7  
Exchange rate differences  (1,079)  (1,401)  (2.1)  (2.7)  n/a  
Results of indexed units  (6,734)  (5,080)  (13.0)  (9.8)  32.6  
Other gains/(losses)  3,010  (655)  5.8  (1.3)  n/a  
ALL OTHER   (11,068)   (14,457)   (21.3)   (27.8)   (23.4)  
INCOME/(LOSS) BEFORE TAXES   179,693   147,593   346.1   284.3   21.7  
Income tax(4)  (44,890)  (27,656)  (86.5)  (53.3)  62.3  
NET PROFIT FOR THE PERIOD   134,802   119,937   259.6   231.0   12.4  
 
 
NET PROFIT before EI ATTRIBUTABLE TO:
PARENT COMPANY SHAREHOLDERS 		          
118,972  107,898  229.1  207.8  10.3 
 
NET PROFIT ATTRIBUTABLE TO:
PARENT COMPANY SHAREHOLDERS  		          
122,752  110,700  236.4  213.2  10.9 
MINORITY INTEREST   12,051   9,237   23.2   17.8   30.5  
 
Net profit attributable to Parent Company Shareholders           
  12.7  13.2  12.7  13.2   
as % of net sales           
 
Earnings per share
Earnings per ADR  		 385.4  347.6  0.7  0.7  10.9 
1,927.0  1,737.8  3.7  3.3  10.9 
 
EBITDA(5) before Exceptional items   225,637   200,459   434.6   386.1   12.6  
% of net sales  23.3  23.9  23.3  23.9   
EBITDA   238,542   207,250   459.4   399.2   15.1  
% of net sales  24.6  24.7  24.6  24.7   

 

           
OTHER INFORMATION           
Number of shares  318,502,872  318,502,872  318,502,872  318,502,872   
Shares per ADR  5  5  5  5   
 
DEPRECIATION  47,782  45,201  92.0  87.1  5.7 
Capital Expenditures  77,847  64,396  149.9  124.0  20.9 
(1) Exchange rate: US$1.00 = CLP 519,20
(2) MSD&A refers to Marketing selling, distribution and administrative expenses
(3) Exceptional Items (IE), formerly Non recurring items (NRI)
(4) CLP 4,273 million considered as an Exceptional item, due to a final tax settlement in December 31, 2011
(5) Please see full note in page before exhibits

 

15

 

 

 

 

                             
Exhibit 3: Segment Information - Fourth Quarter 2011
Q4  Beer Chile  Beer Argentina  Non-Alcoholic  Wines  Spirits  Other/eliminations  Total 
(CLP million)  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010 
Core revenue  101,642  89,861  69,885  49,592  73,707  64,985  35,110  29,819  16,287  10,974  13,421  0  310,052  245,230 
Other revenue  1,064  964  1,640  1,077  257  359  1,361  1,806  90  108  1,393  1,179  5,805  5,495 
Interco sales revenue  206  235  21  19  1,195  1,080  8  9  58  408  (1,488)  (1,750)  0  0 
Net sales   102,912   91,060   71,546   50,687   75,158   66,424   36,479   31,634   16,436   11,490   13,326   (571)   315,857   250,725  
variance %  13.0    41.2    13.1    15.3    43.0        26.0   
Cost of goods sold  (38,282)  (34,575)  (26,165)  (20,094)  (37,507)  (32,629)  (22,527)  (20,978)  (10,554)  (6,093)  (4,266)  3,293  (139,301)  (111,076) 
% of net sales  37.2  38.0  36.6  39.6  49.9  49.1  61.8  66.3  64.2  53.0      44.1  44.3 
Gross profit   64,630   56,485   45,382   30,593   37,651   33,796   13,952   10,656   5,881   5,396   9,060   2,722   176,556   139,649  
MSD&A(1)  (29,545)  (26,063)  (34,351)  (21,914)  (26,051)  (24,581)  (10,882)  (9,838)  (4,278)  (4,040)  (4,494)  (3,604)  (109,602)  (90,041) 
% of net sales  28.7  28.6  48.0  43.2  34.7  37.0  29.8  31.1  26.0  35.2      34.7  35.9 
Other operating income/(expenses)  691  66  (86)  226  10  139  1,596  99  118  217  2,655  487  4,984  1,234 
EBIT before Exceptional items(2)   35,776   30,488   10,945   8,905   11,610   9,353   4,666   917   1,721   1,573   7,221   (395)   71,938   50,842  
variance %  17.3    22.9    24.1    408.7    9.4        41.5   
% of net sales  34.8  33.5  15.3  17.6  15.4  14.1  12.8  2.9  10.5  13.7      22.8  20.3 
Exceptional items  0  0  0  0  0  0  0  0  0  0  56  0  56  0 
EBIT   35,776   30,488   10,945   8,905   11,610   9,353   4,666   917   1,721   1,573   7,277   (395)   71,994   50,842  
variance %  17.3    22.9    24.1    408.7    9.4        41.6   
% of net sales  34.8  33.5  15.3  17.6  15.4  14.1  12.8  2.9  10.5  13.7      22.8  20.3 
EBITDA before Exceptional items   39,834   35,565   12,431   10,179   14,362   11,967   6,241   2,533   2,202   1,983   9,191   1,076   84,261   63,303  
variance %  12.0    22.1    20.0    146.4    11.0        33.1   
% of net sales  38.7  39.1  17.4  20.1  19.1  18.0  17.1  8.0  13.4  17.3      26.7  25.2 
EBITDA   39,834   35,565   12,431   10,179   14,362   11,967   6,241   2,533   2,202   1,983   9,247   1,076   84,317   63,303  
variance %  12.0    22.1    20.0    146.4    11.0    759.7    33.2   
% of net sales  38.7  39.1  17.4  20.1  19.1  18.0  17.1  8.0  13.4  17.3      26.7  25.2 
 
Q4  Beer Chile  Beer Argentina(3)  Non- alcoholic(4)  Wine(5)  Spirits  Other/eliminations  Total 
VOLUMES(HL)  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010 
SEGMENT VOLUME  1,756,616  1,621,089  1,373,460  1,336,124  2,083,952  1,926,457  303,583  273,649  69,662  58,340  148,886  -  5,736,159  5,215,659 
variance %  8.4    2.8    8.2    10.9    19.4    -    10.0   
          SOFT DRINKS  CHILE DOMESTIC             
          1,329,810  1,271,995  143,867  131,322             
variance %          4.5    9.6               
          NECTAR  CHILE EXPORTS             
          287,923  256,976  145,495  126,767             
variance %          12.0    14.8               
          WATER  ARGENTINA             
          466,219  397,486  14,221  15,561             
variance %          17.3    -8.6               
(1) MSD&A refers to Marketing selling, distribution and administrative expenses
(2) Exceptional Items (IE), formerly Non recurring items (NRI)
(3) Excludes exports to Chile of 4,954 Hl and 5,518 Hl in 2011 and 2010 respectively
(4) Includes soft drinks (sof drinks, tea, sports and energetic drinks), nectars and water (purified and mineral)
(5) Excludes bulk wine of 8,580 Hl and 28,043 Hl in 2011 and 2010 respectively
 
Q4  Beer Chile  Beer Argentina  Non-Alcoholic  Wines  Spirits  Other/eliminations  Total 
AVE. PRICES (CLP/Hl)  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010 
SEGMENT AVE. PRICE  57,862  55,433  50,882  37,116  35,369  33,733  115,654  108,967  233,804  188,096  90,145    54,052  47,018 
variance %  4.4    37.1    4.8    6.1    24.3        15.0   
          SOFT DRINKS  CHILE DOMESTIC    PISCO         
          35,110  33,129  88,812  86,775             
variance %          6.0    2.3               
          NECTAR  CHILE EXPORTS             
          47,332  44,780  136,510  126,118             
variance %          5.7    8.2               
          WATER  ARGENTINA             
          28,719  28,525  173,566  156,404             
variance %          0.7    11.0               

 

16

 

 

                             
Exhibit 4: Segment Information - Twelve Months ended on December 31, 2011
YTD AS OF DECEMBER  Beer Chile  Beer Argentina  Non-Alcoholic  Wines  Spirits  Other/eliminations  Total 
(CLP million)  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010 
Core revenue  309,287  283,448  194,454  151,952  243,330  218,841  132,934  125,790  49,361  40,596  21,740  0  951,105  820,627 
Other revenue  3,208  2,925  3,640  2,227  1,226  1,152  5,391  6,484  492  1,184  4,488  3,660  18,446  17,631 
Interco sales revenue  522  1,608  87  2,184  3,953  3,483  24  19  1,083  1,438  (5,669)  (8,732)  0  0 
Net sales   313,017   287,981   198,181   156,363   248,509   223,476   138,348   132,293   50,936   43,218   20,560   (5,072)   969,551   838,258  
variance %  8.7    26.7    11.2    4.6    17.9        15.7   
Cost of goods sold  (122,417)  (113,816)  (77,601)  (66,543)  (126,415)  (108,666)  (89,850)  (83,876)  (29,153)  (22,622)  (5,128)  11,710  (450,563)  (383,813) 
% of net sales  39.1  39.5  39.2  42.6  50.9  48.6  64.9  63.4  57.2  52.3      46.5  45.8 
Gross profit   190,600   174,165   120,580   89,820   122,095   114,810   48,498   48,417   21,783   20,596   15,432   6,638   518,987   454,445  
MSD&A(1)  (97,196)  (89,203)  (95,289)  (68,006)  (88,053)  (82,745)  (40,242)  (38,372)  (15,592)  (14,368)  (11,991)  (7,964)  (348,363)  (300,659) 
% of net sales  31.1  31.0  48.1  43.5  35.4  37.0  29.1  29.0  30.6  33.2      35.9  35.9 
Other operating income/(expenses)  679  333  (162)  214  1,041  299  2,166  211  192  182  3,314  233  7,230  1,472 
EBIT before Exceptional items(2)   94,083   85,295   25,129   22,028   35,083   32,364   10,422   10,256   6,383   6,409   6,755   (1,093)   177,855   155,258  
variance %  10.3    14.1    8.4    1.6    -0.4        14.6   
% of net sales  30.1  29.6  12.7  14.1  14.1  14.5  7.5  7.8  12.5  14.8      18.3  18.5 
Exceptional items  5,329  0  0  0  1,236  0  6,467  0  307  0  (433)  6,791  12,905  6,791 
EBIT   99,412   85,295   25,129   22,028   36,318   32,364   16,890   10,256   6,690   6,409   6,321   5,698   190,760   162,049  
variance %  16.6    14.1    12.2    64.7    4.4    10.9    17.7   
% of net sales  31.8  29.6  12.7  14.1  14.6  14.5  12.2  7.8  13.1  14.8      19.7  19.3 
EBITDA before Exceptional items   110,248   101,041   30,480   26,879   45,510   41,982   16,841   16,727   8,260   8,081   14,298   5,749   225,637   200,459  
variance %  9.1    13.4    8.4    0.7    2.2    148.7    12.6   
% of net sales  35.2  35.1  15.4  17.2  18.3  18.8  12.2  12.6  16.2  18.7      23.3  23.9 
EBITDA   115,577   101,041   30,480   26,879   46,746   41,982   23,308   16,727   8,567   8,081   13,865   12,540   238,542   207,250  
variance %  14.4    13.4    11.3    39.3    6.0    10.6    15.1   
% of net sales  36.9  35.1  15.4  17.2  18.8  18.8  16.8  12.6  16.8  18.7      24.6  24.7 
 
YTD AS OF DECEMBER  Beer Chile  Beer Argentina(3)  Non- alcoholic(4)  Wine(5)  Spirits  Other/eliminations  Total 
VOLUMES (HL)  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010 
TOTAL SEGMENT  5,385,567  5,148,001  4,345,209  4,142,440  6,990,587  6,590,598  1,211,713  1,204,674  228,301  212,302  236,079  -  18,397,457  17,298,015 
variance %  4.6    4.9    6.1    0.6    7.5    -    6.4   
          SOFT DRINKS  CHILE DOMESTIC             
          4,509,575  4,342,187  578,961  570,312             
variance %          3.9    1.5               
          NECTAR  CHILE EXPORTS             
          1,042,776  916,908  570,202  562,440             
variance %          13.7    1.4               
          WATER  ARGENTINA             
          1,438,236  1,331,503  62,550  71,922             
variance %          8.0    -13.0               
(1) MSD&A refers to Marketing selling, distribution and administrative expenses
(2) Exceptional Items (IE), formerly Non recurring items (NRI)
(3) Excludes exports to Chile of 12,585 Hl and 86,470 Hl in 2011 and 2010 respectively
(4) Includes soft drinks (sof drinks, tea, sports and energetic drinks), nectars and water (purified and mineral)
(5) Excludes bulk wine of 47,951 Hl and 84,709 Hl in 2011 and 2010 respectively
 
YTD AS OF DECEMBER  Beer Chile  Beer Argentina  Non-Alcoholic  Wines  Spirits  Other/eliminations  Total 
AVE. PRICES (CLP/Hl)  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010  2011  2010 
SEGMENT AVE. PRICE  57,429  55,060  44,751  36,682  34,808  33,205  109,707  104,418  216,210  191,219  92,090    51,698  47,441 
variance %  4.3    22.0    4.8    5.1    13.1    -    9.0   
          SOFT DRINKS  CHILE DOMESTIC             
          34,416  32,609  84,235  75,852             
variance %          5.5    11.1               
          NECTAR  CHILE EXPORTS             
          45,826  44,281  130,427  128,077             
variance %          3.5    1.8               
          WATER  ARGENTINA             
          28,051  27,523  156,520  145,893             
variance %          1.9    7.3               

 

 

17

 

           
Exhibit 5: Balance Sheet            
  December 31
2011  		 December 31
2010  		 December 31
2011  		 December 31
2010  		 Variance
%  
ASSETS  (CLP million)  (CLP million)  (US$ million)(1)  (US$ million)(1)   
Cash and cash equivalents  177,664  151,614  342  292  17.2 
Other current assets  364,881  294,668  703  568  23.8 
Total current assets   542,546   446,282   1,045   860   21.6  
 
PP&E (net)  556,949  508,162  1,073  979  9.6 
Other non current assets  198,996  197,245  383  380  0.9 
Total non current assets   755,946   705,407   1,456   1,359   7.2  
Total assets  1,298,491  1,151,689  2,501  2,218  12.7 
 
LIABILITIES           
Short term financial debt  76,105  12,822  147  25  493.6 
Other liabilities  274,666  224,136  529  432  22.5 
Total current liabilities   350,771   236,958   676   456   48.0  
 
Long term financial debt  170,955  220,145  329  424  (22.3) 
Other liabilities  91,980  79,512  177  153  15.7 
Total non current liabilities   262,935   299,657   506   577   (12.3)  
Total Liabilities  613,706  536,615  1,182  1,034  14.4 
 
EQUITY           
Paid-in capital  231,020  231,020  445  445  0.0 
Other reserves  (35,174)  (37,119)  (68)  (71)  0.0 
Retained earnings  373,130  311,754  719  600  19.7 
 
Net equity attributable to parent company shareholders   568,976   505,655   1,096   974   12.5  
Minority interest  115,810  109,419  223  211  5.8 
Total equity  684,786  615,074  1,319  1,185  11.3 
Total equity and liabilities  1,298,491  1,151,689  2,501  2,218  12.7 

 

 

 

OTHER FINANCIAL INFORMATION

           
Total financial debt  247,061 232,967 476 449 6.0%
   
Net debt (2)  69,396 81,353 134 157 -14.7%
Liquidity ratio 1.55 1.88
Financial Debt / Capitalization 0.27 0.27
Net debt / EBITDA (2) 0.29 0.39
(1) Exchange rate: US$ 1.00 = CLP 519.2
(2) Total financial debt minus cash & cash equivalents
(3) Last 12 months of EBITDA

 

 

18

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Compañía Cervecerías Unidas S.A.
(United Breweries Company, Inc.)

  /s/ Ricardo Reyes      
  Chief Financial Officer 
 

 

Date: February 03, 2012