Compañía Cervecerías Unidas (CCL) Q1 2025 earnings summary

Executive summary

• Achieved higher financial results in Q1 2025, with EBITDA up 6% and net income up 10.7% year-over-year despite a volatile environment.

• Net sales increased 9.6% to CLP 817,671 million, with organic consolidated net sales up 3% and organic volumes down 1.8%.

• International Business drove growth, while Chile and Wine segments saw volume declines.

• Maintains a diversified beverage portfolio and strong market positions across Chile and international markets.

• Strategic focus remains on operational efficiency, growth, and sustainability through 2027.

Financial highlights

• 1Q25 consolidated volume reached 10.1 million HL, up 13% year-over-year, but organic volumes declined 1.8%.

• EBITDA rose 6% to CLP 131,554 million (4.8% organic), with EBITDA margin at 16.1%.

• Net income for 1Q25 was CLP 57,778 million, up 10.7% year-over-year.

• Gross profit grew 8.5% (1.7% organic), but gross margin contracted by up to 56 bps due to higher costs.

• Non-operating loss widened to CLP 26,681 million, mainly due to derivative contracts and higher financial expenses.

Outlook and guidance

• Management expects continued challenging and volatile conditions in 2025, especially for alcoholic beverage volumes.

• Margin recovery is anticipated in Chile, aided by a stronger peso and input cost improvements.

• In Argentina, price increases are expected to be limited as inflation slows, requiring greater efficiency.

• Strategic plan for 2025–2027 targets improved operational margins, growth, and sustainability.

• Continued progress on 2030 sustainability goals, including water, circular economy, climate action, and responsible supply chain.