6-K 1 ccupr2q14_6k.htm CCU REPORTS CONSOLIDATED SECOND QUARTER 2014 RESULTS ccupr2q14_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 SECOND QUARTER 2014 RESULTS1;2

 

Santiago, Chile, August 5th, 2014 – CCU announced today its consolidated financial results for the second quarter ended June 30, 2014:

·          Consolidated Volumes increased 6.6% (4.5% for organic growth). The Chile Operating segment contributed with an increase of 6.5% (same figures for organic growth). The Río de la Plata Operating segment showed a 10.7% increase (0.1% decrease for organic growth) and the Wine Operating segment decreased 2.5% this quarter (same figures for organic growth).

·          Net sales increased 8.3% as a consequence of 6.6% higher consolidated Volumes coupled with 1.5% higher average prices. Organically, Net sales grew 6.0%.

·          Gross profit increased 7.0% as a combination of higher Net sales and an increase in Cost of sales of 58 bps as a percentage of Net sales. Organically, Gross profit grew 5.9%.

·          EBITDA  increased 37.5% (37.7% for organic growth), driven by the Wine Operating segment and the Rio de la Plata Operating segment, partially offset by the Chile Operating segment. The Rio de la Plata Operating segment includes, as a non-recurring item, the positive one-time effect compensations received by our Argentine subsidiary CICSA, for the termination of the contract which allowed us to import and distribute on an exclusive basis, Corona  and Negra Modelo beers in Argentina and the license for the production and distribution of Budweiser  beer in Uruguay. When excluding the non-recurring item, EBITDA decreased 12.3%.

·          Net income increased 52.1% this quarter (55.5% for organic growth). When excluding the non-recurring item, Net income decreased 27.4%.

·          Earnings per share3 increased 31.1% and 30.5% in organic terms. When excluding the non-recurring item, Earnings per share decreased 37.5%.

 

 

 

 

 

 

Key figures

Q2'14

Q2'13

Total

Organic

(In ThHL or CLP million unless stated otherwise)

    

change %

change %

Volumes

4,657

4,367

6.6 %

4.5 %

Net sales

263,553

243,446

8.3 %

6.0 %

Gross profit

132,672

123,952

7.0 %

5.9 %

EBIT

35,842

21,841

64.1 %

66.4 %

EBITDA

52,142

37,932

37.5 %

37.7 %

Net income

23,468

15,429

52.1 %

55.5 %

Earnings per share

63.5

48.4

31.1 %

30.5 %

             

 

 

 

 

 

Key figures

YTD'14

YTD'13

Total

Organic

(In ThHL or CLP million unless stated otherwise)

change %

change %

Volumes

10,986

10,318

6.5 %

4.4 %

Net sales

598,364

547,546

9.3 %

7.0 %

Gross profit

318,457

298,136

6.8 %

5.5 %

EBIT

91,859

79,872

15.0 %

15.4 %

EBITDA

124,472

111,136

12.0 %

11.6 %

Net income

64,036

55,745

14.9 %

15.6 %

Earnings per share

173.3

175.0

(1.0)%

(0.3)%

             

1 For an explanation of the terms used please refer to the Glossary in Further Information and Exhibits. For organic growth details please refer to page 7. Figures in tables and exhibits have been rounded off and may not add exactly the total shown.

2 All references in this Press Release shall be deemed to refer to Q2’14 figures compared to Q2’13 figures, unless otherwise stated.

3 Considers period weighted average shares according to Capital increase as of December 31th, 2013.

 

PRESS RELEASE

                                                                                                                  

COMMENTS FROM THE CEO

 

We are pleased with CCU’s second quarter 2014 consolidated Volumes results which increased by 6.6% with positive volume growth in most of the Operating segments. In organic terms, Volumes grew 4.5% excluding the positive consolidation impact of the Paraguayan operation. EBITDA grew 37.5% and the EBITDA margin was 19.8%. When excluding the compensations received by our Argentine subsidiary CICSA4, for the termination of the contract which allowed us to import and distribute on an exclusive basis, Corona  and Negra Modelo beers in Argentina, and the license for the production and distribution of Budweiser  beer in Uruguay, the EBITDA decreased 12.3% mainly explained by 9.5% higher Cost of sales and 14.7% increase in MSD&A, while the EBITDA margin decreased to 12.6%, 296 bps lower than Q2’13. All in, Net income increased 52.1% reaching CLP 23,468 million in the quarter.

Chile Operating segment EBITDA decreased 14.1% as the Cost of sales increased by 17.2%, mainly due to the 14% average peso devaluation against the same  quarter of last year, coupled with 20.3% increase in MSD&A as distribution cost raised and more intense marketing was performed. These two effects were not compensated by the 6.5% higher sales Volumes and the 5.7% higher average prices. Nevertheless we were able to gain market share in all the categories within this Operating segment, despite price increases in beer, soft drinks and spirits.

The Río de la Plata Operating segment EBITDA was CLP 13,087 million. Excluding the positive one time effect of the above mentioned compensations in Argentina and Uruguay, the EBITDA was negative CLP 5,795 million, as the Argentina operation was not able to offset the unfavorable external conditions: lower private consumption and government restrictions on our imported products portfolio affected our volumes, while higher inflationary pressures and a strong currency devaluation of 52% year on year in USD terms, increased our Costs of sales and MSD&A expenses. Still, we were able to increase market share in our most relevant businesses in Rio de la Plata Operating segment.

Our Wine Operating segment continued showing positive trends. The EBITDA showed a significant increase of 63.7% mostly explained by: the Domestic market, where volumes increased 6.9% and prices increased 2.9% driven by a better sales mix; the Export business, where lower sales Volumes were fully compensated by a 1.6% higher average prices in USD terms and a higher exchange rate; and the lower input cost of wine. Furthermore, the Wine Operating segment achieved the top position in value share within the entire business category for the Domestic market.

During this quarter we continued with our strategy to achieve non organic growth, as we entered in a new neighboring market through a partnership that will allow us to participate in the Bebidas Bolivianas S.A. business, which involves the production, marketing and multi-category sales of alcoholic beverages and soft drinks in Bolivia. Additionally, we must highlight the distinction of ECCUSA as the PepsiCo Global Bottler of the Year.

4 CICSA: Compañía Industrial Cervecera S.A, a subsidiary of CCU Argentina

 

 

 

PRESS RELEASE

 

Finally, the terms of the Tax reform are still under discussion in Congress. According to the last updated version, already approved by the Upper Congress, changes will increase corporate taxes as well as taxes on alcoholic and sugar containing beverages.

We remain ourselves optimistic in our search of growth opportunities, as well as cautious in this current complex scenario, determined to constantly reach operational excellence and continue with our efforts in cost savings, pricing and maximizing margins initiatives across all of our operations.   

 

 

CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (Exhibits 1 & 2)

 

NET SALES

 

Q2’14    Increased 8.3% to CLP 263,553 million as a result of 6.6% higher volumes and 1.5% higher average prices. All Operating segments contributed to this growth in Net sales as follows: Chile with 12.6% increase, Wine with 5.0% and Rio de la Plata with 2.0%.

On organic basis, Net sales increased 6.0% as a result of 4.5% higher Volumes coupled with 1.5% increase in average prices. The Chile Operating segment contributed to this growth with 12.6% organic Net sales increase as Volumes increased 6.5% organically, coupled with 5.7% higher average prices. The Wine Operating segment contributed with a 5.0% increase, as average prices increased 7.7%, partially compensated by 2.5% lower organic Volumes. This was partially compensated by Río de la Plata Operating segment with a 10.0% decrease in Net sales, as Volumes decreased 0.1% organically, coupled with 9.9% decrease in organic average prices measured in CLP terms.

2014      As reported, accumulated Net sales increased 9.3% to CLP 598,364 million as a result of 6.5 % higher Volumes coupled with 2.6 % increase in average prices. On organic basis, accumulated Net sales increased 7.0% to CLP 586,091 million as a result of 4.4% higher Volumes coupled with 2.5% increase in average prices.

 

Net sales by segment

 

 

 

 

 

 

 

 

 

 

Net sales (million CLP)

 

Q2'14

Mix

Q2'13

Mix

Total Change%

Organic Change%

1. Chile Operating segment

175,097

66.4%

155,461

63.9%

12.6

12.6

2. Río de la Plata Operating segment

46,843

17.8%

45,939

18.9%

2.0

(10.0)

3. Wine Operating segment

44,154

16.8%

42,053

17.3%

5.0

5.0

4. Other/Eliminations

(2,540)

(1.0)%

(6)

(0.0)%

N/A

N/A

TOTAL

263,553

100.0%

243,446

100.0%

8.3

6.0

             

 

 

 

 

 

 

 

 

 

Net sales (million CLP)

 

YTD '14

Mix

YTD '13

Mix

Total Change%

Organic Change%

1. Chile Operating segment

399,814

66.8%

358,115

65.4%

11.6

11.6

2. Río de la Plata Operating segment

123,426

20.6%

118,687

21.7%

4.0

(6.3)

3. Wine Operating segment

80,525

13.5%

71,180

13.0%

13.1

13.1

4. Other/Eliminations

(5,401)

(0.9)%

(436)

(0.1)%

N/A

N/A

TOTAL

598,364

100.0%

547,546

100.0%

9.3

7.0

 

 

 

 

 

 

 

             

 

 

 

 

 

PRESS RELEASE

 

 

 

GROSS PROFIT

 

Q2’14    Increased 7.0% to CLP 132,672 million as a result of 8.3% higher Net sales, partially offset with 9.5% higher Cost of sales, which increased from 49.1% to 49.7% as a percentage of Net sales. As a consequence, Gross profit decreased from 50.9% to 50.3% as a percentage of Net sales.

On organic basis, Gross profit increased 5.9% to CLP 131,212 million due to 6.0% higher Net sales, partially offset by 6.2% higher Cost of sales. Organic Gross profit, as a percentage of Net sales, decreased from 50.9% to 50.8%.

2014      Gross profit increased 6.8% to CLP 318,457 million and, as a percentage of Net sales, decreased from 54.4% to 53.2%. On organic basis, Gross profit increased 5.5% to CLP 314,584 million and, as a percentage of Net sales, decreased from 54.4% to 53.7%.

 

 

EBIT  

 

Q2’14    Increased 64.1% to CLP 35,842 million, mostly explained by the positive, one time effect compensations received by our Argentine subsidiary CICSA for the termination of the contract which allowed us to import and distribute on an exclusive basis, Corona  and Negra Modelo beers in Argentina, and the license for the production and distribution of Budweiser  beer in Uruguay. The EBIT margin increased 462 bps. Excluding the referred non-recurring item, the EBIT decreased 22.3%, mainly explained by 9.5% higher Cost of sales, as local currencies devaluated in all of our Operating segments, and 14.7% increase in MSD&A, due to higher distribution costs and marketing expenses. Excluding the compensations, the EBIT margin decreased 254 bps.

On organic basis, EBIT increased 66.4% to CLP 36,354 million, and organic EBIT margin increased from 9.0% to 14.1%.

2014      EBIT increased 15.0% to CLP 91,859 million and EBIT margin increased from 14.6% to 15.4%. On organic basis, EBIT increased 15.4% to CLP 92,149 million and organic EBIT margin increased from 14.6%  to 15.7%.

 

EBIT and EBIT margin by segment

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT (million CLP)

EBIT margin

 

Q2'14

Mix

Q2'13

Mix

Total Change%

Organic Change%

Q2'14

Q2'13

Total Change(bps)

Organic Change(bps)

1. Chile Operating segment

19,391

54.1%

23,884

109.4%

(18.8)

(18.8)

11.1%

15.4%

(429)

(429)

2. Río de la Plata Operating segment

10,452

29.2 %

(4,023)

(18.4)%

359.8

372.5

22.3 %

(8.8)%

3107

3527

3. Wine Operating segment

7,334

20.5%

3,834

17.6%

91.3

91.3

16.6%

9.1%

749

749

4. Other/Eliminations

(1,335)

(3.7)%

(1,854)

(8.5)%

(28.0)

(28.0)

-

-

-

-

TOTAL

35,842

100.0%

21,841

100.0%

64.1

66.4

13.6%

9.0%

463

512

                     

 

 

 

 

PRESS RELEASE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBIT (million CLP)

EBIT margin

 

YTD '14

Mix

YTD '13

Mix

Total Change%

Organic Change%

YTD '14

YTD '13

Total Change(bps)

Organic Change(bps)

1. Chile Operating segment

60,159

65.5%

69,797

87.4%

(13.8)

(13.8)

15.0%

19.5%

(444)

(444)

2. Río de la Plata Operating segment

16,977

18.5 %

4,951

6.2 %

242.9

248.8

13.8 %

4.2 %

958

1136

3. Wine Operating segment

12,662

13.8%

4,240

5.3%

198.6

198.6

15.7%

6.0%

977

977

4. Other/Eliminations

2,061

2.2 %

884

1.1 %

133.1

133.1

-

-

-

-

TOTAL

91,859

100.0%

79,872

100.0%

15.0

15.4

15.4%

14.6%

76

114

                     

 

 

EBITDA

 

Q2’14    Increased 37.5% to CLP 52,142 million and EBITDA margin increased from 15.6% to 19.8%. On organic basis, EBITDA increased 37.7% to CLP 52,245 million and the EBITDA margin increased from 15.6% to 20.2%.

 

2014      Increased 12.0% to CLP 124,472 million and EBITDA margin increased from 20.3% to 20.8%. On organic basis, EBITDA increased 11.6% to CLP 123,974 million and organic EBITDA margin increased from 20.3% to 21.2%.

 

EBITDA and EBITDA margin by segment

 

 

 

EBITDA (million CLP)

EBITDA margin

 

Q2'14

Mix

Q2'13

Mix

Total Change%

Organic Change%

Q2'14

Q2'13

Total Change(bps)

Organic Change(bps)

1. Chile Operating segment

28,525

54.7%

33,208

87.5%

(14.1)

(14.1)

16.3%

21.4%

(507)

(507)

2. Río de la Plata Operating segment

13,087

25.1 %

(1,507)

(4.0)%

N/A

N/A

27.9 %

(3.3)%

3122

3518

3. Wine Operating segment

9,066

17.4%

5,538

14.6%

63.7

63.7

20.5%

13.2%

736

736

4. Other/Eliminations

1,464

2.8 %

694

1.8 %

111.1

111.1

-

-

-

-

TOTAL

52,142

100.0%

37,932

100.0%

37.5

37.7

19.8%

15.6%

420

466

 

 

 

 

 

 

 

 

 

 

 

                     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA (million CLP)

EBITDA margin

 

YTD '14

Mix

YTD '13

Mix

Total Change%

Organic Change%

YTD '14

YTD '13

Total Change(bps)

Organic Change(bps)

1. Chile Operating segment

78,824

63.3%

88,136

79.3%

(10.6)

(10.6)

19.7%

24.6%

(490)

(490)

2. Río de la Plata Operating segment

22,103

17.8 %

9,914

8.9 %

122.9

117.9

17.9 %

8.4 %

955

1108

3. Wine Operating segment

16,087

12.9%

7,504

6.8%

114.4

114.4

20.0%

10.5%

944

944

4. Other/Eliminations

7,458

6.0 %

5,583

5.0 %

33.6

33.6

-

-

-

-

TOTAL

124,472

100.0%

111,136

100.0%

12.0

11.6

20.8%

20.3%

50

86

 

 

 

 

 

 

 

 

 

 

 

                     

 

NON-OPERATING RESULT

 

Q2’14    Decreased CLP 2,256 million from a loss of CLP 2,388 million to a loss of CLP 4,645 million mainly explained by:

·      Net financial expenses  which decreased CLP 1,614 million from a loss of CLP 3,838 million to a loss of CLP 2,224 million, mainly due to higher financial incomes from the larger current Cash and Cash equivalent.

 

 

PRESS RELEASE

 

·      Results as per adjustment units which decreased CLP 1,364 million from a gain of CLP 87 million to a loss of CLP 1,277 million, mainly explained by higher inflation in the Q2’14 compared to Q2’13 periods.

·      Foreign currency exchange differences and Other gains/(losses) which decreased CLP 2,174 million from a gain of CLP 1,340 million to a loss of CLP 834 million mainly explained by losses related to hedges covering foreign exchange variations on taxes.

2014      Decreased CLP 284 million from a loss of CLP 6,870 million to a loss of CLP 7,153 million, mostly due to Results as per adjustment units, Foreign currency exchange differences and Other gains/(losses), partially compensated by Net financial expenses.

 

 

INCOME TAXES

 

Q2’14    Increased CLP 2,087 million, mainly explained by the higher operating result in Rio de la Plata due to the already highlighted positive one time effect compensations, and the higher operating result of the Wine Operating segment.

 

2014     Decreased CLP 74 million mostly explained by higher results in the Rio de la Plata and Wine Operating segments, fully compensated by price-level restatements of the tax equity due to adjustments for inflation.

 

 

NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF PARENT COMPANY

 

Q2’14    Increased 52.1% to CLP 23,468 million mostly explained by the already mentioned compensations received by CICSA and the Wine operating segment higher operating result, partially offset by lower Non-operating results. On organic basis, Net income increased 55.5%.

  

2014      Increased CLP 8,291 million to CLP 64,036 million mostly explained by higher EBIT, mainly due to the Rio de la Plata and Wine Operating segments, partially offset by the Chile Operating segment and the Non-operating results.

 

 

 

 

 

 

PRESS RELEASE

 

ORGANIC GROWTH

 

The following schedule details the effect of the consolidation of the Paraguayan operation acquisition  in December 2013. For better insight, Proforma refers to consolidated results as reported for the year.

 

 

     

 

  

 

 

 

 

  

 

  

SECOND QUARTER

As reported

 

Paraguay Effect(1)

 

Proforma(2)

 

Total(3)

 

Organic(4)

(In ThHL or CLP million unless stated otherwise)

2014

2013

 

 

2014

2013

 

Change%

 

Change%

Volumes

4,657

4,367

 

94

 

4,563

4,367

 

6.6

 

4.5

Net sales

263,553

243,446

 

5,488.7

 

258,064

243,446

 

8.3

 

6.0

Net sales (CLP/HL)

56,589

55,741

 

58,351

 

56,552

55,741

 

1.5

 

1.5

Cost of sales

(130,880)

(119,494)

 

(4,028)

 

(126,852)

(119,494)

 

9.5

 

6.2

% of net sales

49.7

49.1

 

73.4

 

49.2

49.1

 

 

 

 

Gross profit

132,672

123,952

 

1,460

 

131,212

123,952

 

7.0

 

5.9

% of net sales

50.3

50.9

 

26.6

 

50.8

50.9

 

 

 

 

MSD&A

(117,241)

(102,252)

 

(1,969)

 

(115,272)

(102,252)

 

14.7

 

12.7

% of net sales

44.5

42.0

 

35.9

 

44.7

42.0

 

 

 

 

Other operating income/(expenses)

20,410

141

 

(3)

 

20,413

141

 

N/A

 

N/A

EBIT

35,842

21,841

 

(511.76)

 

36,354

21,841

 

64.1

 

66.4

EBIT Margin (%)

13.6

9.0

 

(9.3)

 

14.1

9.0

 

 

 

 

EBITDA

52,142

37,932

 

(103)

 

52,245

37,932

 

37.5

 

37.7

EBITDA Margin (%)

19.8

15.6

 

(1.9)

 

20.2

15.6

 

 

 

 

(1) Effect of excluding Paraguay's results from the quarter As reported.

 

 

 

 

(2) Excludes the mentioned effects for the period.

 

 

 

 

 

(3) Total Change refers to As reported figures variation.

 

 

 

 

 

 

 

(4) Organic Change refers to as Proforma figures variation.

 

 

 

 

 

 

 

 

 

     

 

  

 

 

 

 

  

 

  

YTD AS OF JUNE

As reported

 

Paraguay Effect(1)

 

Proforma(2)

 

Total(3)

 

Organic(4)

(In ThHL or CLP million unless stated otherwise)

2014

2013

 

 

2014

2013

 

Change%

 

Change%

Volumes  

10,986

10,318

 

209

 

10,777

10,318

 

6.5

 

4.4

Net sales

598,364

547,546

 

12,272.9

 

586,091

547,546

 

9.3

 

7.0

Net sales (CLP/HL)

54,464

53,065

 

58,694

 

54,382

53,065

 

2.6

 

2.5

Cost of sales

(279,907)

(249,410)

 

(8,400)

 

(271,507)

(249,410)

 

12.2

 

8.9

% of net sales

46.8

45.6

 

68.4

 

46.3

45.6

 

 

 

 

Gross profit

318,457

298,136

 

3,873

 

314,584

298,136

 

6.8

 

5.5

% of net sales

53.2

54.4

 

31.6

 

53.7

54.4

 

 

 

 

MSD&A

(249,000)

(219,104)

 

(4,166)

 

(244,834)

(219,104)

 

13.6

 

11.7

% of net sales

41.6

40.0

 

33.9

 

41.8

40.0

 

 

 

 

Other operating income/(expenses)

22,402

841

 

2

 

22,400

841

 

N/A

 

N/A

EBIT

91,859

79,872

 

(290.74)

 

92,149

79,872

 

15.0

 

15.4

EBIT Margin (%)

15.4

14.6

 

(2.4)

 

15.7

14.6

 

 

 

 

EBITDA

124,472

111,136

 

498

 

123,974

111,136

 

12.0

 

11.6

EBITDA Margin (%)

20.8

20.3

 

4.1

 

21.2

20.3

 

 

 

 

(1) Effect of excluding Paraguay's results from the quarter As reported.

 

 

 

 

(2) Excludes the mentioned effects for the period.

 

 

 

 

 

(3) Total Change refers to As reported figures variation.

 

 

 

 

 

 

 

(4) Organic Change refers to as Proforma figures variation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PRESS RELEASE

 

SECOND QUARTER OPERATING SEGMENTS HIGHLIGHTS (Exhibits 3 & 4)

 

1.    CHILE 

                   

Net sales increased 12.6% to CLP 175,097 million as a result of 6.5% higher sales Volume coupled with 5.7% higher average prices.

 

EBIT decreased 18.8% to CLP 19,391 million due to 17.2% higher Cost of sales and 20.3% higher MSD&A expenses, partially compensated by 12.6% higher Net sales. Cost of sales, as a percentage of Net sales, increased from 47.4% to 49.3%, mainly explained by the 14% average Chilean peso devaluation against the same quarter of last year. MSD&A, as a percentage of Net sales, increased from 37.2% to 39.7%, almost fully explained by higher distribution costs and higher marketing expenses. The EBIT margin decreased from 15.4% to 11.1%.

 

EBITDA decreased 14.1% to CLP 28,525 million and the EBITDA margin decreased from 21.4% to 16.3%.

 

Comments: The Chile operation showed growth in Volumes across all the businesses, fueled partially by the World Cup related promotional activities. The good execution in the points of sale and the effective marketing campaigns, allowed us to increase consolidated market share in the Operating segment despite the price increases performed in most of our categories of around 3.5% in beers, 3.6% in soft drinks and 4.9% in spirits.

Continuing with the innovation strategy, we must highlight the introduction of Sol beer across the whole country by the end of May. This brand, already launched in the north of Chile, was able to deliver excellent results. Also “Escudo XXX” was introduced as a brand extension and new returnable packaging for nectars amongst other innovations.

Promotions and marketing for key brands drove per capita consumption. Focus on the Cristal brand, as an official sponsor of the Chile national soccer team, delivered excellent results through strong social media, television and marketing campaigns. Furthermore, Gatorade was part of the global “Football 2014” campaign with limited edition flavors and football idols pictures in packaging. Finally, we want to highlight the series of initiatives for promoting premium Pisco consumption which included instructive programs for cocktail preparations.

The terms of the Tax reform are still under discussion in Congress. According to the last updated version, already approved by the Upper Congress, changes will increase corporate taxes as well as taxes on alcoholic and sugar containing beverages.

Additionally, we must highlight the distinction of ECCUSA as the PepsiCo Global Bottler of the Year. Furthermore, we have been voted as one of the “Most Admired” and one of the “Most Respected” Companies in Chile by two of the most renowned local rankings.

 

 

 

PRESS RELEASE

 

We remain ourselves optimistic in our search of growth opportunities in Chile, as well as cautious in this current complex scenario, determined to constantly reach operational excellence and continue with our efforts in cost savings, pricing and maximizing margins initiatives across our entire Chile Operating segment.

 

2.    RIO DE LA PLATA

 

Net sales, measured in Chilean pesos, increased 2.0% to CLP 46,843 million as a result of 10.7% higher sales Volume, partially compensated by 7.9% decrease in average prices. Organically, Net sales decreased 10.0% as a result of 0.1% lower sales Volumes, coupled with 9.9% lower average prices measured in CLP terms as the Argentine peso devaluated 52% year on year in USD terms.

EBIT measured in Chilean pesos, increased 359.8% to CLP 10,452 million as a result of the positive one time effect of the compensations on the Corona  and Negra Modelo brand licenses agreements in Argentina and Budweiser  brand license in Uruguay. The EBIT margin increased from negative 8.8% to 22.3%. Organically, it increased 372.5%, and the organic EBIT margin increased from negative 8.8% to 26.5%.

EBITDA, measured in Chilean pesos, increased 968.2% to CLP 13,087 million and EBITDA margin increased from negative 3.3% to 27.9%. Organically, the EBITDA increased 975.0% and the organic EBITDA margin increased from negative 3.3% to 31.9%.

Comments: The Rio de la Plata organic Volumes decrease was mainly explained by the Argentine operation which was negatively affected by a slowdown of private consumption and Government restrictions for imported products.

In Argentina, cost saving efforts and price increases in March were not enough to compensate for increased promotional activity and cost increases due to inflation and devaluation. As we mentioned in our June 6th Information of Interest to the Market, our subsidiary Compañía Industrial Cervecera S.A. reached agreements with Cervecería Modelo S. de R.L. de CV. and Anheuser-Busch LLC, for the termination of the contract which allows CICSA to import and distribute on an exclusive basis, Corona  and Negra Modelo beers in Argentina, and the license for the production and distribution of Budweiser  beer in Uruguay. CICSA received in compensation of these agreements the amount of ARS 277.2 million, equivalent to USD 34.2 million.

Regarding market share, we were able to increase it in our most relevant businesses in Rio de la Plata Operating segment.

The integration of the newly acquired operations of Paraguay and Uruguay are progressing well, with Volume growth despite very competitive challenges.

 

 

 

 

 

 

 

PRESS RELEASE

 

 

 

3.    WINE 

 

Net sales increased 5.0% to CLP 44,154 million due to 8.3%5 higher average price, partially offset by 2.5% lower sales Volumes.

EBIT increased 91.3% to CLP 7,334 million mainly due to higher average prices –positively affected by the devaluation of the Chilean peso in the export side of the business- and lower Cost of sales, attributable to lower cost of wine and cost reduction initiatives in Argentina. MSD&A expenses increased 9.5% mainly due to higher marketing expenses, as we continued with our strategy to invest more in marketing -brand building-, and distribution costs. EBIT margin increased from 9.1% to 16.6%.

EBITDA increased 63.7% to CLP 9,066 million and the EBITDA margin increased from 13.2% to 20.5%. Excluding the impact of a higher exchange rate, representing CLP 2,513 million, the EBITDA grew 18.3%, confirming the excellent performance of the Wine Operating segment.

 

Comments The results of the second quarter 2014 are positively influenced by: i) a good performance in the Domestic market where Volumes increased 6.9% and prices 2.9% driven by a better sales mix; ii) in the Export side of the business prices increased by 1.6% in USD terms which partially compensated the lower sales Volumes and; iii) better performance in Argentina in terms of profits. The Wine Operating segment was also positively affected by lower costs of wine and the depreciation of the Chilean peso against the US dollar.

Highlights from the domestic operation can be found in all the categories in which we participate due to healthy brands and good execution: Volumes against the same quarter of last year for fine bottled wine grew 10%, massive wine increased 7%, and sparkling wines increased 23%. Furthermore, according to Nielsen Chile, the Wine Operating segment showed a strong performance both in volume and value. Worth to mention, in 2014, the Operating segment achieved first position in value share within the entire business category with 27.2% in total.

As mentioned previously, the Domestic operation will be affected by the tax reform in Chile, which includes an increase in taxes on alcohol. We have been making our best efforts through our industry trade associations for arguing in favor of the industry.

In Argentina, despite of having lower sales Volumes, the operations continued to show a good performance in profits driven by its strong discipline in cost savings, synergies within the Wine Operating segment and exclusive focus on key strategic markets. We expect to keep the positive trend during the year.

In the Export side of the business, lower sales Volumes were not fully compensated by the increase in sales volumes in Asia. Our strategy continued with launches in new markets, such as Gato Cabernet Sauvignon Rose in Sweden; and brand building through diverse recognitions and marketing initiatives, such as Castillo de Molina as “Wine of the Year” in Finland or the sponsorship of recognized sport figures with 1865. Finally, this quarter, our premium wine 1865 Limited Edition Syrah was awarded with Gold Medal in the last edition of the “Decanter World Wine Awards” and, it also won a regional trophy, which is an important recognition for our winemaking team.

5 Excluding bulk wine

 

 

PRESS RELEASE

 

 

FURTHER INFORMATION AND EXHIBITS

 

ABOUT CCU

 

CCU is a diversified beverage company operating principally in Chile, Argentina, Uruguay, Paraguay and Bolivia. CCU is the largest Chilean brewer, the second-largest Chilean soft drinks producer and the largest Chilean water and nectar producer, the second-largest Argentine brewer, the second-largest Chilean wine producer and the largest pisco distributor. It also participates in the HOD, rum and confectionery industries in Chile, in the beer, water and soft drinks industries in Uruguay, and in the soft drinks, water and nectar industries and beer distribution in Paraguay and Bolivia. The Company has licensing agreements with Heineken Brouwerijen B.V., Anheuser-Busch Incorporated, PepsiCo Inc., Schweppes Holdings Limited, Guinness Brewing Worldwide Limited, Société des Produits Nestlé S.A., Pernod Ricard and Compañía Pisquera Bauzá S.A.

 

CAUTIONARY STATEMENT

 

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.

 

GLOSSARY

 

Operating segments

The Operating segments are defined with respect to its revenues in the geographic areas of commercial activity:

 

·         Chile: This segment commercializes Beer, Non Alcoholic Beverages and Spirits in the Chilean market.

·         Rio de la Plata: This segment commercializes Beer, Cider, Non Alcoholic Beverages and Spirits in the Argentinean, Uruguayan and Paraguayan market.

·         Wine: This segment commercializes Wine, mainly in the export market reaching over 80 countries.

·         Other/Eliminations:  It considers the non-allocated corporate overhead expenses and the result of the logistics subsidiary.

 

Cost of sales

Formerly referred to as Cost of Goods Sold (COGS), Cost of sales includes direct costs and manufacturing expenses.

 

Earnings Per Share (EPS)

 

 

 

PRESS RELEASE

 

Net profit divided by the weighted average number of shares during the year.

EBIT

Stands for Earnings Before Interest and Taxes, and for management purposes it is defined, as earnings before other gains (losses), net financial expenses, equity and income of joint ventures, foreign currency exchange differences, results as per adjustment units and income taxes. EBIT is equivalent to Operating Result used in the 20-F Form.

 

EBITDA

EBITDA represents EBIT plus depreciation and amortization. EBITDA is not an accounting measure under IFRS. When analyzing the operating performance, investors should use EBITDA in addition to, not as an alternative for Net income, as this item is defined by IFRS. Investors should also note that CCU’s presentation of EBITDA may not be comparable to similarly titled indicators used by other companies. EBITDA is equivalent to ORBDA (Operating Result Before Depreciation and Amortization), used in the 20-F Form.

 

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

MSD&A include marketing, selling, distribution and administrative expenses.

 

Net Debt

Total financial debt minus cash & cash equivalents.

 

Net Debt / EBITDA

The ratio is based on a twelve month rolling calculation for EBITDA.

 

Net income

Net profit attributable to parent company shareholder as per IFRS.

 

Organic growth  

Organic growth refers to growth excluding the effect of consolidation changes and the effect of first time consolidation an acquisition.

 

UF

The UF is a monetary unit indexed to the CPI variation.

 

 

 

PRESS RELEASE

 

 

             

Exhibit 1: Income Statement (Second Quarter 2014)

Second Quarter

2014

2013

2014

2013

Total

Organic

 

(CLP million)

(USD million)(1)

Change %

Change %

Net sales

263,553

243,446

475.4

439.2

8.3

6.0

Cost of sales

(130,880)

(119,494)

(236.1)

(215.6)

9.5

6.2

% of net sales

49.7

49.1

49.7

49.1

-

-

Gross profit

132,672

123,952

239.3

223.6

7.0

5.9

MSD&A

(117,241)

(102,252)

(211.5)

(184.5)

14.7

12.7

% of net sales

44.5

42.0

0.1

0.1

-

-

Other operating income/(expenses)

20,410

141

36.8

0.3

N/A

N/A

EBIT

35,842

21,841

64.7

39.4

64.1

66.4

EBIT margin

13.6

9.0

13.6

9.0

-

-

Net financial expenses

(2,224)

(3,838)

(4.0)

(6.9)

(42.1)

(40.8)

Equity and income of JVs and associated

(311)

23

(0.6)

0.0

N/A

N/A

Foreign currency exchange differences

(561)

(530)

(1.0)

(1.0)

5.8

0.5

Results as per adjustment units

(1,277)

87

(2.3)

0.2

N/A

N/A

Other gains/(losses)

(273)

1,870

(0.5)

3.4

(114.6)

(114.6)

Total Non-operating result

(4,645)

(2,388)

(8.4)

(4.3)

94.5

83.2

Income/(loss) before taxes

31,197

19,453

56.3

35.1

60.4

64.4

Income taxes

(4,363)

(2,276)

(7.9)

(4.1)

91.7

92.4

Net income for the year

26,834

17,177

48.4

31.0

56.2

60.7

 

 

 

 

 

 

 

Net income attributable to:

 

 

 

 

 

 

The equity holders of the parent

23,468

15,429

42.3

27.8

52.1

55.5

Non-controlling interest

3,366

1,748

6.1

3.2

92.6

106.2

 

 

 

 

 

 

 

EBITDA

52,142

37,932

94.1

68.4

37.5

37.7

EBITDA margin

19.8

15.6

19.8

15.6

-

-

 

 

 

 

 

 

 

OTHER INFORMATION

 

 

 

 

 

 

Number of shares(2)

369,502,872

318,502,872

369,502,872

318,502,872

 

 

Shares per ADR

2

2

2

2

 

 

 

 

 

 

 

 

 

Earnings per share

63.5

48.4

0.1

0.1

31.1

30.5

Earnings per ADR

127.0

96.9

0.2

0.2

31.1

30.5

 

 

 

 

 

 

 

Depreciation

16,300

16,091

29.4

29.0

1.3

(3.6)

Capital Expenditures

36,176

27,365

65.3

49.4

32.2

32.2

(1) Average Exchange rate for the period: US$1.00 = CLP 554.35

            

(2) Considers period weighted average shares according to capital increase as of December 31, 2013.

     

 

 

 

 

 

PRESS RELEASE

 

 

Exhibit 2: Income Statement (Six months ended on June 30, 2014)

YTD AS OF JUNE

2014

2013

2014

2013

Total

Organic

 

(CLP million)

(USD million)(1)

Change %

Change %

Net sales

598,364

547,546

1,079.4

987.7

9.3

7.0

Cost of sales

(279,907)

(249,410)

(504.9)

(449.9)

12.2

8.9

% of net sales

46.8

45.6

0.1

0.1

-

-

Gross profit

318,457

298,136

574.5

537.8

6.8

5.5

MSD&A

(249,000)

(219,104)

(449.2)

(395.2)

13.6

11.7

% of net sales

41.6

40.0

0.1

0.1

-

-

Other operating income/(expenses)

22,402

841

40.4

1.5

N/A

N/A

EBIT

91,859

79,872

165.7

144.1

15.0

15.4

EBIT margin

15.4

14.6

0.0

0.0

-

-

Net financial expenses

(3,504)

(7,777)

(6.3)

(14.0)

(54.9)

(54.6)

Equity and income of JVs and associated

(383)

(2)

(0.7)

(0.0)

N/A

N/A

Foreign currency exchange differences

(1,812)

(648)

(3.3)

(1.2)

(179.4)

(178.9)

Results as per adjustment units

(2,464)

(122)

(4.4)

(0.2)

N/A

N/A

Other gains/(losses)

1,011

1,679

1.8

3.0

(39.8)

39.8

Total Non-operating result

(7,153)

(6,870)

(12.9)

(12.4)

(4.1)

0.3

Income/(loss) before taxes

84,705

73,003

152.8

131.7

16.0

16.8

Income taxes

(13,649)

(13,723)

(24.6)

(24.8)

(0.5)

(0.4)

Net income for the year

71,056

59,279

128.2

106.9

19.9

20.8

 

 

 

 

 

 

 

Net income attributable to:

 

 

 

 

 

 

The equity holders of the parent

64,036

55,745

115.5

100.6

14.9

15.6

Non-controlling interest

7,020

3,535

12.7

6.4

98.6

102.1

 

 

 

 

 

 

 

EBITDA

124,472

111,136

224.5

200.5

12.0

33.6

EBITDA margin

20.8

20.3

20.8

20.3

-

-

 

 

 

 

 

 

 

OTHER INFORMATION

 

 

 

 

 

 

Number of shares(2)

369,502,872

318,502,872

369,502,872

318,502,872

 

 

Shares per ADR

2

2

2

2

 

 

 

 

 

 

 

 

 

Earnings per share

173.3

175.0

0.3

0.3

(1.0)

(0.3)

Earnings per ADR

346.6

350.0

0.6

0.6

(1.0)

(0.3)

 

 

 

 

 

 

 

Depreciation

32,613

31,264

58.8

56.4

4.3

1.8

Capital Expenditures

64,196

50,930

115.8

91.9

26.0

N/A

(1) Average Exchange rate for the period: US$1.00 = CLP 554,35

            

(2) Considers period weighted average shares according to capital increase as of December 31, 2013.

     
 

 

PRESS RELEASE

 

 

Exhibit 3: Segment Information (Second Quarter 2014)

 

1. Chile Operating segment

 

2. Río de la Plata Operating segment(1)

 

3. Wine Operating segment

Second Quarter

 

 

(In ThHL or CLP million unless stated otherwise)

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

Volumes

3,347

3,141

6.5

6.5

 

967

874

10.7

(0.1)

 

344

353

(2.5)

(2.5)

Net sales

175,097

155,461

12.6

12.6

 

46,843

45,939

2.0

(10.0)

 

44,154

42,053

5.0

5.0

Net sales (CLP/HL)

52,319

49,492

5.7

5.7

 

48,459

52,589

(7.9)

(9.9)

 

128,354

119,182

7.7

7.7

Cost of sales

(86,402)

(73,722)

17.2

17.2

 

(24,944)

(20,774)

20.1

0.7

 

(24,401)

(26,868)

(9.2)

(9.2)

% of net sales

49.3

47.4

 

 

 

53.3

45.2

 

 

 

55.3

63.9

 

 

Gross profit

88,695

81,738

8.5

8.5

 

21,898

25,165

(13.0)

(18.8)

 

19,752

15,185

30.1

30.1

% of net sales

50.7

52.6

 

 

 

46.7

54.8

 

 

 

44.7

36.1

 

 

MSD&A

(69,532)

(57,784)

20.3

20.3

 

(30,448)

(29,386)

3.6

(3.1)

 

(12,392)

(11,322)

9.5

9.5

% of net sales

39.7

37.2

 

 

 

65.0

64.0

 

 

 

28.1

26.9

 

 

Other operating income/(expenses)

228

(70)

425.4

425.4

 

19,002

199

N/A

N/A

 

(27)

(29)

(9.4)

(9.4)

EBIT

19,391

23,884

(18.8)

(18.8)

 

10,452

(4,023)

(359.8)

(372.5)

 

7,334

3,834

91.3

91.3

EBIT Margin

11.1

15.4

 

 

 

22.3

(8.8)

 

 

 

16.6

9.1

 

 

EBITDA

28,525

33,208

(14.1)

(14.1)

 

13,087

(1,507)

(968.2)

(975.0)

 

9,066

5,538

63.7

63.7

EBITDA Margin

16.3

21.4

 

 

 

27.9

(3.3)

 

 

 

20.5

13.2

 

 

         

 

        

 

        

 

4. Other/eliminations

 

Total

 

        

Second Quarter

 

 

        

(In ThHL or CLP million unless stated otherwise)

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

 

        

Volumes

 

 

 

 

 

4,657

4,367

6.6

4.5

 

        

Net sales

(2,540)

(6)

N/A

N/A

 

263,553

243,446

8.3

6.0

 

        

Net sales (CLP/HL)

 

 

 

 

 

56,589

55,741

1.5

1.5

 

        

Cost of sales

4,867

1,870

160.3

160.3

 

(130,880)

(119,494)

9.5

6.2

 

        

% of net sales

 

  

 

 

 

49.7

49.1

 

 

 

        

Gross profit

2,327

1,864

24.8

24.8

 

132,672

123,952

7.0

5.9

 

        

% of net sales

 

 

 

 

 

50.3

50.9

 

 

 

        

MSD&A

(4,869)

(3,760)

29.5

29.5

 

(117,241)

(102,252)

14.7

12.7

 

        

% of net sales

 

  

 

 

 

44.5

42.0

 

 

 

        

Other operating income/(expenses)

1,207

41

N/A

N/A

 

20,410

141

N/A

N/A

 

        

EBIT

(1,335)

(1,854)

(28.0)

(28.0)

 

35,842

21,841

64.1

66.4

 

        

EBIT Margin

-

-

-

-

 

13.6

9.0

 

 

 

        

EBITDA

1,464

694

111.1

111.1

 

52,142

37,932

37.5

37.7

 

        

EBITDA Margin

-

-

-

-

 

19.8

15.6

420.3

466.3

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Organic excludes Paraguay's results from the Quarter as reported

                      

 

 

 

 
PRESS RELEASE

 

 

 

Exhibit 4: Segment Information (Six months ended on June 30, 2014)

    

 

        

 

      

 

1. Chile Operating segment

 

2. Río de la Plata Operating segment(1)

 

3. Wine Operating segment

YTD AS OF JUNE

 

 

(In ThHL or CLP million unless stated otherwise)

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

Volumes

7,901

7,414

6.6

6.6

 

2,461

2,298

7.1

(2.0)

 

624

607

2.8

2.8

Net sales

399,814

358,115

11.6

11.6

 

123,426

118,687

4.0

(6.3)

 

80,525

71,180

13.1

13.1

Net sales (CLP/HL)

50,602

48,303

4.8

4.8

 

50,148

53,716

(6.6)

(8.1)

 

129,049

117,314

10.0

10.0

Cost of sales

(188,089)

(160,156)

17.4

17.4

 

(57,295)

(48,603)

17.9

0.6

 

(44,939)

(46,237)

(2.8)

(2.8)

% of net sales

47.0

44.7

 

 

 

46.4

41.0

 

 

 

55.8

65.0

 

 

Gross profit

211,725

197,959

7.0

7.0

 

66,132

70,084

(5.6)

(11.2)

 

35,586

24,943

42.7

42.7

% of net sales

53.0

55.3

 

 

 

53.6

59.0

 

 

 

44.2

35.0

 

 

MSD&A

(152,041)

(128,503)

18.3

18.3

 

(68,504)

(65,489)

4.6

(1.8)

 

(23,217)

(20,772)

11.8

11.8

% of net sales

38.0

35.9

 

 

 

55.5

55.2

 

 

 

28.8

29.2

 

 

Other operating income/(expenses)

475

341

39.1

39.1

 

19,350

356

N/A

N/A

 

294

69

324.4

324.4

EBIT

60,159

69,797

(13.8)

(13.8)

 

16,977

4,951

242.9

248.8

 

12,662

4,240

198.6

198.6

EBIT margin

15.0

19.5

 

 

 

13.8

4.2

 

 

 

15.7

6.0

 

 

EBITDA

78,824

88,136

(10.6)

(10.6)

 

22,103

9,914

122.9

117.9

 

16,087

7,504

114.4

114.4

EBITDA margin

19.7

24.6

 

 

 

17.9

8.4

 

 

 

20.0

10.5

 

 

         

 

        

 

        

 

4. Other/eliminations

 

Total

 

        

YTD AS OF JUNE

 

 

        

(In ThHL or CLP million unless stated otherwise)

2014

2013

Total %

Organic %

 

2014

2013

Total %

Organic %

 

        

Volumes

 

 

 

 

 

10,986

10,318

6.5

4.4

 

        

Net sales

(5,401)

(436)

N/A

N/A

 

598,364

547,546

9.3

7.0

 

        

Net sales (CLP/HL)

 

 

 

 

 

54,464

53,065

2.6

2.5

 

        

Cost of sales

10,416

5,586

86.5

86.5

 

(279,907)

(249,410)

12.2

8.9

 

        

% of net sales

 

  

 

 

 

46.8

45.6

 

 

 

        

Gross profit

5,014

5,151

(2.6)

(2.6)

 

318,457

298,136

6.8

5.5

 

        

% of net sales

 

 

 

 

 

53.2

54.4

 

 

 

        

MSD&A

(5,238)

(4,341)

20.7

20.7

 

(249,000)

(219,104)

13.6

11.7

 

        

% of net sales

 

  

 

 

 

41.6

40.0

 

 

 

        

Other operating income/(expenses)

2,284

75

N/A

N/A

 

22,402

841

N/A

N/A

 

        

EBIT

2,061

884

133.1

133.1

 

91,859

79,872

15.0

15.4

 

        

EBIT margin

-

-

-

-

 

15.4

14.6

 

 

 

        

EBITDA

7,458

5,583

33.6

33.6

 

124,472

111,136

12.0

11.6

 

        

EBITDA margin

-

-

-

-

 

20.8

20.3

50.5

85.6

 

        

(1) Organic excludes Paraguay's results from the YTD as reported

 

 

 

 

 

 

 

 

 

 

        

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
PRESS RELEASE

 

 

Exhibit 5: Balance Sheet

        

 

  

 

June 30

December 31

June 30

December 31

 

Total Change%

 

2014

2013

2014

2013

 

 

(CLP million)

(US$ million)(1)

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

275,201

408,853

498

740

 

(32.7)

Other current assets

375,320

409,644

679

741

 

(8.4)

Total current assets

650,521

818,497

1,177

1,481

 

(20.5)

 

 

 

 

 

 

 

PP&E (net) 

701,706

680,994

1,270

1,232

 

3.0

Other non current assets

240,928

228,229

436

413

 

5.6

Total non current assets

942,634

909,223

1,705

1,645

 

3.7

Total assets

1,593,154

1,727,720

2,882

3,126

 

(7.8)

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Short term financial debt

59,521

120,488

108

218

 

(50.6)

Other liabilities

208,386

288,641

377

522

 

(27.8)

Total current liabilities

267,907

409,129

485

740

 

(34.5)

 

 

 

 

 

 

 

Long term financial debt

137,149

142,763

248

258

 

(3.9)

Other liabilities

84,654

91,584

153

166

 

(7.6)

Total non current liabilities

221,803

234,347

401

424

 

(5.4)

Total Liabilities

489,710

643,476

886

1,164

 

(23.9)

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Paid-in capital

562,693

562,693

1,018

1,018

 

-

Other reserves

(80,707)

(65,882)

(146)

(119)

 

(22.5)

Retained earnings

524,024

491,864

948

890

 

6.5

Net equity attributable to parent company shareholders

1,006,010

988,676

1,820

1,789

 

1.8

Minority interest

97,434

95,568

176

173

 

2.0

Total equity

1,103,445

1,084,244

1,996

1,962

 

1.8

Total equity and liabilities

1,593,154

1,727,720

2,882

3,126

 

(7.8)

 

 

 

 

 

 

  

OTHER FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Total financial debt

196,670

263,251

356

476

 

(25.3)

 

 

 

 

 

 

 

Net Financial debt

(78,531)

(145,602)

(142)

(263)

 

(46.1)

 

 

 

 

 

 

 

Liquidity ratio

2.43

2.00

 

 

 

 

Financial Debt / Capitalization

0.15

0.20

 

 

 

 

Net Financial debt / EBITDA

(0.30)

(0.60)

 

 

 

 

(1) Exchange rate as of June 30, 2014: US$1.00 = CLP 552.72

        

 

  

 

     

 

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/ Felipe Dubernet      
  Chief Financial Officer 
 

 

Date: August 6, 2014