6-K 1 ccupr2q15_6k.htm CCU REPORTS CONSOLIDATED SECOND QUARTER 2015 RESULTS1;2;3 ccupr2q15_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 2015 RESULTS1;2;3

 

Santiago, Chile, August 4, 2015 – CCU announced today its consolidated financial results for the second quarter ended June 30, 2015:

·        Consolidated Volumes increased 8.6%. The Río de la Plata Operating segment contributed with a 12.7% increase this quarter, the Chile Operating segment increased 8.1% and the Wine Operating segment showed an increase of 1.7%.

·         Net sales increased 17.9% as a consequence of 8.6% higher average prices coupled with 8.6% higher consolidated Volumes.

·         Gross profit increased 24.0% as a combination of 17.9% higher Net sales partially offset by a 11.7% increase in Cost of sales.

·         EBITDA decreased 3.6%, driven by Río de la Plata Operating segment, mainly due to the positive one-time effect compensation received in Q2’14 by our Argentine subsidiary CICSA4. Excluding this one-time effect, EBITDA increased by 51%.

·          Net income decreased 21.0% this quarter. When excluding the above mentioned one-time effect compensation, Net income increased by 65.7%.

·          Earnings per share decreased 21.0% due to a lower Net income.

 

Key figures

Q2'15

Q2'14

Total
change %

(In ThHL or CLP million unless stated otherwise)

Volumes

5,058

4,658

8.6

Net sales

310,673

263,553

17.9

Gross profit

164,482

132,672

24.0

EBIT

30,343

35,842

(15.3)

EBITDA

50,239

52,142

(3.6)

Net income

18,549

23,468

(21.0)

Earnings per share

50.2

63.5

(21.0)

 

Key figures

YTD'15

YTD'14

Total
change %

(In ThHL or CLP million unless stated otherwise)

Volumes

11,635

10,988

5.9

Net sales

693,508

598,364

15.9

Gross profit

381,752

318,457

19.9

EBIT

98,507

91,859

7.2

EBITDA

136,884

124,472

10.0

Net income

61,838

64,036

(3.4)

Earnings per share

167.4

173.3

(3.4)

 

 

1 The consolidated figures of the following release are expressed in nominal Chilean Pesos and according to the rules and instructions of the Chilean Superintendence of Securities and Insurance ("SVS"), which are in accordance with IFRS.

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

3 All references in this Press Release shall be deemed to refer to Q2’15 figures compared to Q2’14 figures, unless otherwise stated.

4 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 to produce and distribute Budweiser beer in Uruguay.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 1 of 15

 

PRESS RELEASE  

 

 

COMMENTS FROM THE CEO

 

We are very pleased with CCU’s second quarter 2015 results. When excluding the extraordinary one-time effect compensation received by our Argentine subsidiary CICSA during Q2’14, 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 to produce and distribute Budweiser beer in Uruguay, the Consolidated EBITDA increased 51.0%, and Net income increased by 65.7%, mainly due to a top line growth of 17.9%, driven by 8.6% growth in volumes and average prices as well as the continuous generation of efficiencies through our “ExCCelencia CCU” program. Considering the previously mentioned compensation, consolidated EBITDA decreased 3.6% with an EBITDA margin of 16.2% and Net income decreased 21.0%. Overall, we were able to keep rather stable market share regarding volume and increasing market share regarding value.

The Chile Operating segment EBITDA grew 46.3% with an EBITDA margin improvement of 491 bps. A 12.8% top line growth was delivered as a consequence of 8.1% higher volumes and 4.4% higher average prices. The effective marketing and execution in the points of sale and the Copa América Championship activation, where we sponsor the Chilean National Team, helped us to capitalize the benefits from an exceptional industry growth, partially influenced by good weather conditions. Efficiency gains and some lower raw material costs more than compensated the negative effect of the Chilean peso devaluation in the quarter.

The Río de la Plata Operating segment EBITDA decreased to negative CLP 62 million from CLP 13,087 million. Excluding the positive one-time effect of the above mentioned compensation in Argentina and Uruguay, the EBITDA increased by CLP 5,733 million, being much higher than in Q2’14, mainly driven by 31.4% higher average prices (in CLP terms) and 12.7% increase in volumes. Efficiencies contributed as well to decrease MSD&A and Cost of sales as a percentage of sales.

The Wine Operating segment keeps showing positive results. A 5.4% top line growth contributed to an EBITDA margin of 19.1% and an EBITDA of CLP 8,911 million, nevertheless, this figure is 1.7% lower than the one reported on Q2’14. These results are mainly explained by higher cost of wine due to the 2014 harvest, the 24% devaluation of the Euro against the USD and the strong competitive environment, all these effects partially compensated by efficiencies. 

It’s important to mention that in spite of the compensation received in Q2’14, the consolidated EBITDA for the first half of the year increased 10.0% totaling CLP 136,884 million. Excluding the above mentioned one-time effect compensation, the EBITDA increased by 29.6%.

Finally, we are still facing economic uncertainties and strong competition in our main geographies; therefore we commit ourselves to maintain our efforts searching for efficiencies and brand building, in order to keep growing volumes and expanding margins across all our Operating segments, reinforcing our commitment to follow the path of operational and commercial excellence.

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 2 of 15

 

 

 

PRESS RELEASE  

 

CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (Exhibit 1)

 

NET SALES

 

Q2’15   Increased 17.9% to CLP 310,673 million as a result of 8.6% higher average prices and 8.6% higher consolidated volumes. All Operating segments contributed to this Net sales growth: Río de la Plata with a 48.0% increase in Net sales, as average prices increased 31.4% and volumes grew 12.7%; Chile with 12.8% growth as average prices increased 4.4% coupled with 8.1% higher volumes; and finally, the Wine Operating segment Net sales increased 5.4% as average price and volumes increased 3.7% and 1.7% respectively.

 

2015   Accumulated Net sales increased 15.9% to CLP 693,508 million as a result of 5.9% higher Volumes coupled with 9.4% increase in average prices.

 

Net sales by segment

 

 

Net sales (million CLP)

 

Q2'15

Mix

Q2'14

Mix

Total Change%

1. Chile Operating segment

194,676

62.7%

172,542

65.5%

12.8

2. Río de la Plata Operating segment

69,348

22.3%

46,843

17.8%

48.0

3. Wine Operating segment

46,541

15.0%

44,154

16.8%

5.4

4. Other/Eliminations

108

-

15

-

-

TOTAL

310,673

100.0%

263,553

100.0%

17.9

 

 

Net sales (million CLP)

 

YTD '15

Mix

YTD '14

Mix

Total Change%

1. Chile Operating segment

440,827

63.6%

394,307

65.9%

11.8

2. Río de la Plata Operating segment

165,396

23.8%

123,426

20.6%

34.0

3. Wine Operating segment

87,357

12.6%

80,525

13.5%

8.5

4. Other/Eliminations

(71)

(0.0)%

105

0.0 %

N/A

TOTAL

693,508

100.0%

598,364

100.0%

15.9

 

 

GROSS PROFIT

 

Q2’15   Increased 24.0% to CLP 164,482 million as a result of 17.9% higher Net sales, partially offset by 11.7% higher Cost of sales. Cost of sales, as a percentage of Net sales, decreased from 49.7% to 47.1% due to efficiency gains and lower cost of raw materials, partially offset by the devaluation of our main currencies. Gross profit as a percentage of Net sales increased from 50.3% to 52.9%.

2015    Gross profit increased 19.9% to CLP 381,752 million and, as a percentage of Net sales, increased from 53.2% to 55.0%.

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 3 of 15
 

 

PRESS RELEASE  

EBIT  

 

Q2’15   Decreased 15.3% to CLP 30,343 million, and the EBIT margin decreased 383 bps, explained by the positive, one-time effect compensation received by our Argentine subsidiary CICSA in Q2’14 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 to produce and distribute Budweiser beer in Uruguay. Excluding the referred one-time effect compensation, the EBIT increased 78.9%, mainly explained by 24.0% higher Gross profit, and the EBIT margin increased 333 bps.

 

2015    EBIT increased 7.2% to CLP 98,507 million and EBIT margin decreased from 15.4% to 14.2%. Excluding the above mentioned one-time effect compensation, EBIT increased by 35.0%.

EBIT and EBIT margin by Operating segment

 

 

EBIT (million CLP)

EBIT margin

 

Q2'15

Mix

Q2'14

Mix

Total Change%

Q2'15

Q2'14

Total Change(bps)

1. Chile Operating segment

30,537

100.6%

19,391

54.1%

57.5

15.7%

11.2%

445

2. Río de la Plata Operating segment

(3,438)

(11.3)%

10,452

29.2 %

(132.9)

(5.0)%

22.3 %

(2727)

3. Wine Operating segment

7,101

23.4%

7,334

20.5%

(3.2)

15.3%

16.6%

-135

4. Other/Eliminations

(3,857)

(12.7)%

(1,335)

(3.7)%

189.0

-

-

-

TOTAL

30,343

100.0%

35,842

100.0%

(15.3)

9.8%

13.6%

(383)

 

 

EBIT (million CLP)

EBIT margin

 

YTD '15

Mix

YTD '14

Mix

Total Change%

YTD '15

YTD '14

Total Change(bps)

1. Chile Operating segment

81,283

82.5%

60,159

65.5%

35.1

18.4%

15.3%

318

2. Río de la Plata Operating segment

6,523

6.6 %

16,977

18.5 %

(61.6)

3.9 %

13.8 %

(981)

3. Wine Operating segment

13,176

13.4%

12,662

13.8%

4.1

15.1%

15.7%

-64

4. Other/Eliminations

(2,475)

(2.5)%

2,061

2.2 %

220.1

-

-

-

TOTAL

98,507

100.0%

91,859

100.0%

7.2

14.2%

15.4%

(115)

 

 

EBITDA

 

Q2’15    Decreased 3.6% to CLP 50,239 million and EBITDA margin decreased from 19.8% to 16.2%. Excluding the above mentioned one-time effect compensation, EBITDA increased by 51%.

2015    Increased 10.0% to CLP 136,884 million and EBITDA margin decreased from 20.8% to 19.7%. Excluding the above mentioned one-time effect compensation, EBITDA increased by 29.6%.

EBITDA and EBITDA margin by Operating segment

 

 

EBITDA (million CLP)

EBITDA margin

 

Q2'15

Mix

Q2'14

Mix

Total Change%

Q2'15

Q2'14

Total Change(bps)

1. Chile Operating segment

41,745

83.1%

28,525

54.7%

46.3

21.4%

16.5%

491

2. Río de la Plata Operating segment

(62)

(0.1)%

13,087

25.1 %

(100.5)

(0.1)%

27.9 %

(2803)

3. Wine Operating segment

8,911

17.7%

9,066

17.4%

-1.7

19.1%

20.5%

(139)

4. Other/Eliminations

(355)

(0.7)%

1,464

2.8 %

(124.2)

-

-

-

TOTAL

50,239

100.0%

52,142

100.0%

(3.6)

16.2%

19.8%

(361)

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 4 of 15

 

 

PRESS RELEASE  

 

 

EBITDA (million CLP)

EBITDA margin

 

YTD '15

Mix

YTD '14

Mix

Total Change%

YTD '15

YTD '14

Total Change(bps)

1. Chile Operating segment

102,799

75.1%

78,824

63.3%

30.4

23.3%

20.0%

333

2. Río de la Plata Operating segment (1)

13,264

9.7 %

22,103

17.8 %

(40.0)

8.0 %

17.9 %

(989)

3. Wine Operating segment

16,868

12.3%

16,087

12.9%

4.9

19.3%

20.0%

(67)

4. Other/Eliminations

3,953

2.9 %

7,458

6.0 %

(47.0)

-

-

-

TOTAL

136,884

100.0%

124,472

100.0%

10.0

19.7%

20.8%

(106)

(1) Includes the effect of CLP 18,882 million at EBITDA level from agreements reached by the Argentine subsidiary Compañía Industrial Cervecera S.A. ("CICSA") with Cervecería Modelo S. de R.L. de CV. and Anheuser-Busch LLC, both ABINBEV affiliates, as of May 28th, 2014. On June 7th it has been terminated: i) the contract which allows CICSA to import and distribute on an exclusive basis, Corona and Negra Modelo beers in Argentina, and ii) the license for the production and distribution of Budweiser beer in Uruguay

 

NON-OPERATING RESULT

 

Q2’15   Increased CLP 493 million from a loss of CLP 4,645 million to a loss of CLP 4,152 million mainly explained by:

·                Foreign currency exchange differences and Other gain / (losses) which increased CLP 2,363 million mainly explained by positive Foreign currency exchange differences in the Q2’15 period compared to the Q2’14 period as the currencies devaluated less in the current period.

·              Net financial expenses increased CLP 973 million from a loss of CLP 2,224 million to a loss of CLP 3,197 million, mainly due to lower Interest income.

2015      Increased CLP 1,134 million from a loss of CLP 7,153 million to a loss of CLP 6,019 million, mostly due to higher Foreign currency exchange differences, Results as per adjustment units and Other gains/(losses), partially compensated by higher Net financial expenses and a lower Equity and income of JVs and associated.

 

INCOME TAXES

 

Q2’15    Decreased CLP 568 million, mainly explained by lower results in the Río de la Plata Operating segment due to the already mentioned one-time effect compensation received in Q2’14.

 

2015      Increased CLP 8,208 million mostly explained by higher results in the Chile and Wine Operating segments and the increase of the First Category Income tax rate in Chile from 20.0% to 22.5%, partially compensated by lower results in the Río de la Plata Operating segment.

 

NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF PARENT COMPANY

 

Q2’15   Decreased 21.0% to CLP 18,549 million mostly explained by a lower income taxes against the same quarter of last year and higher non-controlling interest.

 

2015     Decreased CLP 2,198 million to CLP 61,838 million despite a higher Income before taxes, offset by higher Non-controlling interest and higher Income taxes in Chile.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 5 of 15
 

 

PRESS RELEASE  

 

SECOND QUARTER OPERATING SEGMENT HIGHLIGHTS (Exhibit 2)

1.    CHILE

                 

Net sales increased 12.8% to CLP194,676 million as a result of 8.1% higher sales Volumes coupled with 4.4% higher average prices.

 

EBIT increased 57.5% to CLP 30,537 million mainly explained by 12.8% higher Net sales, partially offset by 10.2% higher Cost of sales and 3.6% higher MSD&A expenses. Cost of sales, as a percentage of Net sales, decreased from 48.6% to 47.5%. MSD&A, as a percentage of Net sales, decreased from 40.3% to 37.0%. All in, the EBIT margin increased from 11.2% to 15.7%.

 

EBITDA increased 46.3% to CLP 41,745 million and the EBITDA margin increased from 16.5% to 21.4%.

 

Comments: The Chile Operating segment 8.1% increase in Volumes is mainly explained by the effective marketing and execution in the points of sale, helped by an increase in consumption due to the good weather and the Copa América Championship. Regarding prices, we maintain the effect of previous quarter’s price increases. Additionally, the gain of efficiencies coming from the “ExCCelencia CCU” program and the decrease in prices of some raw materials, allowed us to increase our EBITDA 46.3% and our EBITDA margin in 491 bps, in spite of the 11% Chilean peso devaluation.

In line with our innovation strategy, during this quarter we launched a limited edition packaging for Cristal beer, as official sponsor of the Chilean National Football Team for the Copa América Championship. In the non-alcoholic categories, we continue developing our portfolio through innovation as we successfully launched Nectar Watts Selección, a new premium offering in the nectar categories, with several flavors and packaging. Additionally, highlights were found in the good performance of the water categories.

In the corporate side of the business, once again, CCU was awarded as Top 10 Most Admired Companies in Chile, as published in the “Diario Financiero”.

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 6 of 15
 

 

PRESS RELEASE  

2.    RÍO DE LA PLATA

 

Net sales measured in Chilean pesos, increased 48.0% as a result of 31.4% increase in average prices and 12.7% higher sales Volume.

 

EBIT measured in Chilean pesos, decreased to negative CLP 3,438 million as a result of the one-time effect compensation received by our Argentine subsidiary CICSA during Q2’14, 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 to produce and distribute Budweiser beer in Uruguay. The EBIT margin decreased from 22.3% to negative 5.0%.

 

EBITDA measured in Chilean pesos, decreased 100.5% to negative CLP 62 million and the EBITDA margin decreased from 27.9% to negative 0.1%.

 

Comments: The Río de la Plata Operating segment showed positive Volumes growth in all its geographies, consolidating a 12.7% volume increase. A strong marketing campaign allowed us to increase market share in our most relevant categories, in spite of the 31.4% average price increase in CLP terms. Additionally, efficiencies and operational improvements were achieved during the quarter together with lower costs in some raw materials, nevertheless, inflation and depreciation of the currencies continued to pressure our COGS and MSD&A expenses.

The good weather and the active marketing campaign performed during the quarter, with the launch of a series of TV spots in Argentina and sponsoring several events, including major music festivals, helped us to increase sales volumes.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 7 of 15

 

 

 

PRESS RELEASE  

 

3.    WINE

 

Net sales increased 5.4% to CLP 46,541 million due to 3.7% higher average price, coupled with 1.7% higher sales Volumes5.

 

EBIT decreased 3.2% to CLP 7,101  million mainly explained by 6.9% Cost of sales increase and 7.8% higher MSD&A expenses, partially offset by 5.4% higher Net sales. Cost of sales, as a percentage of Net sales, increased from 55.3% to 56.1%. MSD&A, as a percentage of Net sales, increased from 28.1% to 28.7%. The EBIT margin decreased from 16.6% to 15.3%.

 

EBITDA decreased 1.7% to CLP 8,911 million and the EBITDA margin decreased 139 bps to 19.1%.

 

Comments: During 2015, our winery San Pedro celebrates its 150th anniversary. Facing this important date, we released different media plans giving “150 reasons to celebrate” to our consumers in Chile. In the export segment we highlighted this important date with the launch of a special edition of our recognized wine “1865”, which honors the foundation of the winery.

We continue with the development of the expansion plan in Molina which contemplates to nearly double the current production capacity of the Molina plant. We have been working in the expansion plan in a disciplined way that has not affected our production and future commitments, as part of our compromise with our clients we expect to continue working in the same way.

 

 

5 Excludes bulk wine.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 8 of 15
 

 

PRESS RELEASE  

 

FURTHER INFORMATION AND EXHIBITS

 

ABOUT CCU

 

CCU is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. 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 and / or distribution 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, Compañía Pisquera Bauzá S.A. and Coors Brewing Company. For further information, visit www.ccu.cl.

 

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.

·      Río 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.

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 9 of 15
 

 

PRESS RELEASE  

 

Earnings Per Share (EPS)

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.

 

UF

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

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 10 of 15

 

 

 

PRESS RELEASE  

 

Exhibit 1: Income Statement (Second Quarter 2015)

Second Quarter

2015

2014

2015

2014

Total

 

(CLP million)

(USD million)(1)

Change %

Net sales

310,673

263,553

503.0

426.7

17.9

Cost of sales

(146,191)

(130,880)

(236.7)

(211.9)

11.7

% of net sales

47.1

49.7

47.1

49.7

-

Gross profit

164,482

132,672

266.3

214.8

24.0

MSD&A

(134,668)

(117,241)

(218.0)

(189.8)

14.9

% of net sales

43.3

44.5

43.3

44.5

-

Other operating income/(expenses)

529

20,410

0.9

33.0

(97.4)

EBIT

30,343

35,842

49.1

58.0

(15.3)

EBIT margin

9.8

13.6

9.8

13.6

-

Net financial expenses

(3,197)

(2,224)

(5.2)

(3.6)

43.8

Equity and income of JVs and associated

(1,171)

(311)

(1.9)

(0.5)

N/A

Foreign currency exchange differences

48

(561)

0.1

(0.9)

(108.5)

Results as per adjustment units

(1,314)

(1,277)

(2.1)

(2.1)

2.9

Other gains/(losses)

1,482

(273)

2.4

(0.4)

(642.4)

Total Non-operating result

(4,152)

(4,645)

(6.7)

(7.5)

(10.6)

Income/(loss) before taxes

26,191

31,197

42.4

50.5

(16.0)

Income taxes

(3,794)

(4,363)

(6.1)

(7.1)

(13.0)

Net income for the period

22,396

26,834

36.3

43.4

(16.5)

 

 

 

 

 

 

Net income attributable to:

 

 

 

 

 

The equity holders of the parent

18,549

23,468

30.0

38.0

(21.0)

Non-controlling interest

3,848

3,366

6.2

5.5

14.3

 

 

 

 

 

 

EBITDA

50,239

52,142

81.3

84.4

(3.6)

EBITDA margin

16.2

19.8

16.2

19.8

-

 

 

 

 

 

 

OTHER INFORMATION

 

 

 

 

 

Number of shares

369,502,872

369,502,872

369,502,872

369,502,872

 

Shares per ADR

2

2

2

2

 

 

 

 

 

 

 

Earnings per share

50.2

63.5

0.08

0.10

(21.0)

Earnings per ADR

100.4

127.0

0.16

0.21

(21.0)

 

 

 

 

 

 

Depreciation

19,896

16,300

32.2

26.4

22.1

Capital Expenditures

30,319

36,176

49.1

58.6

(16.2)

(1) Average Exchange rate for the period: US$1.00 = CLP 617.64

          

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 11 of 15
 

 

PRESS RELEASE  

 

Exhibit 2: Income Statement (Six months ended on June 30, 2015)

YTD AS OF JUNE

2015

2014

2015

2014

Total

 

(CLP million)

(USD million)(1)

Change %

Net sales

693,508

598,364

1,116.9

963.7

15.9

Cost of sales

(311,756)

(279,907)

(502.1)

(450.8)

11.4

% of net sales

45.0

46.8

45.0

46.8

-

Gross profit

381,752

318,457

614.8

512.9

19.9

MSD&A

(285,135)

(249,000)

(459.2)

(401.0)

14.5

% of net sales

41.1

41.6

41.1

41.6

-

Other operating income/(expenses)

1,890

22,402

3.0

36.1

N/A

EBIT

98,507

91,859

158.6

147.9

7.2

EBIT margin

14.2

15.4

14.2

15.4

-

Net financial expenses

(6,434)

(3,504)

(10.4)

(5.6)

83.6

Equity and income of JVs and associated

(1,812)

(383)

(2.9)

(0.6)

N/A

Foreign currency exchange differences

1,426

(1,812)

2.3

(2.9)

178.7

Results as per adjustment units

(1,307)

(2,464)

(2.1)

(4.0)

(47.0)

Other gains/(losses)

2,107

1,011

3.4

1.6

108.5

Total Non-operating result

(6,019)

(7,153)

(9.7)

(11.5)

(15.9)

Income/(loss) before taxes

92,488

84,705

149.0

136.4

9.2

Income taxes

(21,857)

(13,649)

(35.2)

(22.0)

60.1

Net income for the period

70,631

71,056

113.8

114.4

(0.6)

 

 

 

 

 

 

Net income attributable to:

 

 

 

 

 

The equity holders of the parent

61,838

64,036

99.6

103.1

(3.4)

Non-controlling interest

8,793

7,020

14.2

11.3

25.3

 

 

 

 

 

 

EBITDA

136,884

124,472

220.5

200.5

10.0

EBITDA margin

19.7

20.8

19.7

20.8

-

 

 

 

 

 

 

OTHER INFORMATION

 

 

 

 

 

Number of shares

369,502,872

369,502,872

369,502,872

369,502,872

 

Shares per ADR

2

2

2

2

 

 

 

 

 

 

 

Earnings per share

167.4

173.3

0.27

0.28

(3.4)

Earnings per ADR

334.7

346.6

0.54

0.56

(3.4)

 

 

 

 

 

 

Depreciation

38,377

32,613

61.8

52.5

17.7

Capital Expenditures

63,949

64,196

103.0

103.4

(0.4)

(1) Average Exchange rate for the period: US$1.00 = CLP 620.93

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 12 of 15
 

 

PRESS RELEASE  

 

Exhibit 3: Segment Information (Second Quarter 2015)

 

1. Chile Operating segment (1)

 

2. Río de la Plata Operating segment(1)

 

3. Wine Operating segment

Second Quarter

 

 

(In ThHL or CLP million unless stated otherwise)

2015

2014

Total %

 

2015

2014

Total %

 

2015

2014

Total %

Volumes

3,619

3,347

8.1

 

1,089

967

12.7

 

350

344

1.7

Net sales

194,676

172,542

12.8

 

69,348

46,843

48.0

 

46,541

44,154

5.4

Net sales (CLP/HL)

53,798

51,548

4.4

 

63,664

48,458

31.4

 

133,051

128,357

3.7

Cost of sales

(92,393)

(83,847)

10.2

 

(28,261)

(24,944)

13.3

 

(26,097)

(24,401)

6.9

% of net sales

47.5

48.6

 

 

40.8

53.3

 

 

56.1

55.3

 

Gross profit

102,284

88,695

15.3

 

41,087

21,898

87.6

 

20,444

19,752

3.5

% of net sales

52.5

51.4

 

 

59.2

46.7

 

 

43.9

44.7

 

MSD&A

(72,022)

(69,532)

3.6

 

(44,730)

(30,448)

46.9

 

(13,363)

(12,392)

7.8

% of net sales

37.0

40.3

 

 

64.5

65.0

 

 

28.7

28.1

 

Other operating income/(expenses)

275

228

20.5

 

205

19,002

(98.9)

 

19

(27)

(172.5)

EBIT

30,537

19,391

57.5

 

(3,438)

10,452

(132.9)

 

7,101

7,334

(3.2)

EBIT Margin

15.7

11.2

 

 

(5.0)

22.3

 

 

15.3

16.6

 

EBITDA

41,745

28,525

46.3

 

(62)

13,087

(100.5)

 

8,911

9,066

(1.7)

EBITDA Margin

21.4

16.5

 

 

(0.1)

27.9

 

 

19.1

20.5

 

       

 

      

 

      

 

4. Other/eliminations (1)

 

Total

 

      

Second Quarter

 

 

      

(In ThHL or CLP million unless stated otherwise)

2015

2014

Total %

 

2015

2014

Total %

 

      

Volumes

 

 

 

 

5,058

4,658

8.6

 

      

Net sales

108

15

N/A

 

310,673

263,553

17.9

 

      

Net sales (CLP/HL)

 

 

 

 

61,426

56,582

8.6

 

      

Cost of sales

559

2,312

(75.8)

 

(146,191)

(130,880)

11.7

 

      

% of net sales

 

  

 

 

47.1

49.7

 

 

      

Gross profit

667

2,327

(71.3)

 

164,482

132,672

24.0

 

      

% of net sales

 

 

 

 

52.9

50.3

 

 

      

MSD&A

(4,554)

(4,869)

(6.5)

 

(134,668)

(117,241)

14.9

 

      

% of net sales

 

  

 

 

43.3

44.5

 

 

      

Other operating income/(expenses)

30

1,207

N/A

 

529

20,410

(97.4)

 

      

EBIT

(3,857)

(1,335)

189.0

 

30,343

35,842

(15.3)

 

      

EBIT Margin

-

-

 

 

9.8

13.6

 

 

      

EBITDA

(355)

1,464

(124.2)

 

50,239

52,142

(3.6)

 

      

EBITDA Margin

-

-

 

 

16.2

19.8

 

 

      

 

 

 

 

 

 

 

 

 

 

 

 

(1) Considers adjustments to eliminations from the Chile and Rio de la Plata Operating segments which were included in the Other / Eliminations Operating segments.

    

 

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 13 of 15
 

 

PRESS RELEASE  

 

Exhibit 4: Segment Information (Six months ended on June 30, 2015)

 

1. Chile Operating segment (1)

 

2. Río de la Plata Operating segment(1)

 

3. Wine Operating segment

YTD AS OF JUNE

 

 

(In ThHL or CLP million unless stated otherwise)

2015

2014

Total %

 

2015

2014

Total %

 

2015

2014

Total %

Volumes

8,355

7,902

5.7

 

2,635

2,461

7.0

 

646

624

3.5

Net sales

440,827

394,307

11.8

 

165,396

123,426

34.0

 

87,357

80,525

8.5

Net sales (CLP/HL)

52,762

49,897

5.7

 

62,775

50,148

25.2

 

135,317

129,051

4.9

Cost of sales

(198,663)

(182,583)

8.8

 

(65,816)

(57,295)

14.9

 

(49,108)

(44,939)

9.3

% of net sales

45.1

46.3

 

 

39.8

46.4

 

 

56.2

55.8

 

Gross profit

242,164

211,725

14.4

 

99,580

66,132

50.6

 

38,249

35,586

7.5

% of net sales

54.9

53.7

 

 

60.2

53.6

 

 

43.8

44.2

 

MSD&A

(161,331)

(152,041)

6.1

 

(94,263)

(68,504)

37.6

 

(25,231)

(23,217)

8.7

% of net sales

36.6

38.6

 

 

57.0

55.5

 

 

28.9

28.8

 

Other operating income/(expenses)

450

475

(5.2)

 

1,205

19,350

(93.8)

 

159

294

(45.9)

EBIT

81,283

60,159

35.1

 

6,523

16,977

(61.6)

 

13,176

12,662

4.1

EBIT margin

18.4

15.3

 

 

3.9

13.8

 

 

15.1

15.7

 

EBITDA

102,799

78,824

30.4

 

13,264

22,103

(40.0)

 

16,868

16,087

4.9

EBITDA margin

23.3

20.0

 

 

8.0

17.9

 

 

19.3

20.0

 

       

 

      

 

      

 

4. Other/eliminations (1)

 

Total

 

      

YTD AS OF JUNE

 

 

      

(In ThHL or CLP million unless stated otherwise)

2015

2014

Total %

 

2015

2014

Total %

 

      

Volumes

 

 

 

 

11,635

10,988

5.9

 

      

Net sales

(71)

105

N/A

 

693,508

598,364

15.9

 

      

Net sales (CLP/HL)

 

 

 

 

59,604

54,458

9.4

 

      

Cost of sales

1,831

4,909

(62.7)

 

(311,756)

(279,907)

11.4

 

      

% of net sales

 

  

 

 

45.0

46.8

 

 

      

Gross profit

1,759

5,014

(64.9)

 

381,752

318,457

19.9

 

      

% of net sales

 

 

 

 

55.0

53.2

 

 

      

MSD&A

(4,310)

(5,238)

(17.7)

 

(285,135)

(249,000)

14.5

 

      

% of net sales

 

  

 

 

41.1

41.6

 

 

      

Other operating income/(expenses)

76

2,284

(96.7)

 

1,890

22,402

(91.6)

 

      

EBIT

(2,475)

2,061

(220.1)

 

98,507

91,859

7.2

 

      

EBIT margin

-

-

-

 

14.2

15.4

 

 

      

EBITDA

3,953

7,458

(47.0)

 

136,884

124,472

10.0

 

      

EBITDA margin

-

-

-

 

19.7

20.8

-106.4

 

      

(1) Considers adjusments to eliminations from the Chile and Rio de la Plata Operating segments which were included in the Other / Eliminations Operating segment

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 14 of 15

 

 
PRESS RELEASE  

 

Exhibit 5: Balance Sheet

        

 

  

 

June 30

December 31

June 30

December 31

 

Total Change%

 

2015

2014

2015

2014

 

 

(CLP million)

(US$ million)(1)

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

186,828

214,775

292

336

 

(13.0)

Other current assets

427,782

470,615

669

736

 

(9.1)

Total current assets

614,610

685,390

962

1,073

 

(10.3)

 

 

 

 

 

 

 

PP&E (net)

874,884

851,256

1,369

1,332

 

2.8

Other non current assets

236,812

232,255

371

363

 

2.0

Total non current assets

1,111,696

1,083,511

1,740

1,696

 

2.6

Total assets

1,726,306

1,768,901

2,701

2,768

 

(2.4)

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Short term financial debt

48,376

65,318

76

102

 

(25.9)

Other liabilities

240,619

313,013

377

490

 

(23.1)

Total current liabilities

288,995

378,331

452

592

 

(23.6)

 

 

 

 

 

 

 

Long term financial debt

148,571

134,535

232

211

 

10.4

Other liabilities

110,078

107,535

172

168

 

2.4

Total non current liabilities

258,649

242,070

405

379

 

6.8

Total Liabilities

547,644

620,401

857

971

 

(11.7)

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Paid-in capital

562,693

562,693

881

881

 

-

Other reserves

(76,598)

(75,051)

(120)

(117)

 

(2.1)

Retained earnings

568,864

537,945

890

842

 

5.7

Net equity attributable to parent company shareholders

1,054,959

1,025,588

1,651

1,605

 

2.9

Non - controlling interest

123,703

122,912

194

192

 

0.6

Total equity

1,178,662

1,148,500

1,844

1,797

 

2.6

Total equity and liabilities

1,726,306

1,768,901

2,701

2,768

 

(2.4)

         

 

  

OTHER FINANCIAL INFORMATION

 

 

 

 

 

 

 

        

 

 

Total financial debt

196,947

199,853

308

313

 

(1.5)

 

 

      

 

 

Net Financial debt

10,119

(14,922)

16

(23)

 

(167.8)

 

 

      

 

 

Liquidity ratio

2.13

1.81

    

 

 

Financial Debt / Capitalization

0.14

0.15

    

 

 

Net Financial debt / EBITDA

0.04

(0.06)

 

 

 

 

(1) Exchange rate as of June 30, 2015: US$1.00 = CLP 639.04

 

Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU 

Page 15 of 15
 

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 4 , 2015