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, 23rdfloor, 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-FXForm 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 ___ NoX
CCU REPORTS CONSOLIDATED THIRD QUARTER 2013 RESULTS1; 2; 3
Santiago, Chile, November 5, 2013 – CCU announced today its consolidated financial results for the third quarter ended September 30, 2013:
· Consolidated volumes increased 13.2% (6.6% organic). The Chile business segment contributed with an increase of 15.0% (9.9% organic). The Rio de la Plata business segment showed 11.5% increase (-2.2% organic) and the Wine business segment increased 2.4% this quarter (same figures for organic growth).
· Total Net sales increased 13.4%. Organically it grew 11.7% as a consequence of 6.6% higher consolidated volumes coupled with 4.8% higher average prices.
· Gross profit increased 14.7%. Organically it grew 13.3% as a combination of higher Net sales and a decrease in Cost of sales of 57 bps as a percentage of Net sales.
· EBITDA increased 6.2%. On organic basis, EBITDA grew 6.0%, driven by Chile and Wine business segments.
· Earnings per Share 4 increased 19.1% this quarter, mainly due to lower Income taxes, partially compensated by higher Non-operating losses. On organic basis, Earnings per share increased 20.9%.
| | | | |
Key figures
(In ThHL or CLP million unless stated otherwise) | Q3'13 | Q3'12 | Total
change % | Organic
change % |
|
| Volumes | 4,874 | 4,307 | 13.2% | 6.6% |
| Net sales | 276,715 | 243,976 | 13.4% | 11.7% |
| Gross Profit | 147,203 | 128,316 | 14.7% | 13.3% |
| EBIT | 34,673 | 34,063 | 1.8% | 2.7% |
| EBITDA | 50,807 | 47,862 | 6.2% | 6.0% |
| Net income | 20,999 | 17,388 | 20.8% | 22.6% |
| Earnings Per Share | 65.0 | 54.6 | 19.1% | 20.9% |
| | | | | |
Key figures
(In ThHL or CLP million unless stated otherwise) | YTD '13 | YTD '12 | Total
change % | Organic
change % |
| Volumes | 15,193 | 13,667 | 11.2% | 4.4% |
| Net sales | 824,261 | 743,474 | 10.9% | 9.0% |
| Gross Profit | 445,339 | 392,145 | 13.6% | 11.8% |
| EBIT | 114,546 | 111,303 | 2.9% | 2.7% |
| EBITDA | 161,943 | 151,485 | 6.9% | 6.1% |
| Net income | 76,744 | 68,924 | 11.3% | 11.2% |
| Earnings Per Share | 239.8 | 216.4 | 10.8% | 10.6% |
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.
2All references in this Press Release shall be deemed to refer to Q3’13 figures compared to Q3’12 figures, unless as otherwise indicated.
3For a comparable basis, Volumes figures consider energy drinks sales from CCU Argentina in both periods shown.
4 Considers period weighted average shares according to capital increase as of September 30, 2013.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 1 of 19 |
PRESS RELEASE
We are pleased with CCU’s third quarter 2013 overall performance, where the EBITDA grew 6.2%. On organic basis, EBITDA increased 6.0% driven by Chile and Wine business segments.
Chile business segment EBITDA increased 10.3%. Organically, EBITDA grew 8.9% driven by Beer Chile operational segment which contributed with 7.7% growth and Non-alcoholic beverages with 15.9%, mainly as a consequence of higher volumes coupled with higher average prices. This higher average price was mainly due to price increases done in the first half and in the third quarter 2013.
Wine business segment showed a significant 20.4% EBITDA organic growth this quarter due to higher average prices and lower grapes cost.
During this quarter, in Chile, we faced important distribution expenses pressure due to higher real salaries caused by unemployment rate drop and higher cost of oil.
Rio de la Plata business segment EBITDA, measured in USD, decreased from 9.1 million to 6.8 million. Net Sales, in USD terms, raised 3.8% this quarter in CCU Argentina operational segment due to price increases partially compensated by lower sales volumes. Price adjustments have allowed us to partially compensate inflationary pressures. Consequently, measured in USD, EBITDA decreased from 9.1 million to 7.6 million, as well as it decreased from CLP 4,326 million to CLP 3,881 million.
As we mentioned in our previous press release on August 7, 2013, our extraordinary shareholder’s meeting approved on June 18, 2013 a capital increase through the issuance of 51,000,000 new shares of common stock. We successfully closed our capital increase process, which subscribed 49,957,479 new shares of common stock, raising CLP 324,724 million. The subscription was 98.0% of the total offering, the remaining 1,042,521 shares are expected to be subscribed through one or more auctions/remates on November 8, 2013.
The proceeds of the mentioned capital increase will be used to fund our expansion plan, which contemplates organic and inorganic growth. Looking ahead, we are confident that our operational excellence supported with consistent branding efforts, will keep CCU on the path of healthy development.
As we stated in our two previous Press Releases (May 2 and August 7, 2013), in the future, on a date to be defined, releases will disclose Chile5, Rio de la Plata6 and Wine business segments only.
5Chile includes the following operational segments: Beer Chile, Non-alcoholic beverages and Spirits.
6 Rio de la Plata includes the following operational segments: CCU Argentina and Uruguay.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 2 of 19 |
CONSOLIDATED INCOME STATEMENT HIGHLIGHTS(Exhibits 1 & 2) |
NET SALES
Q3’13 Increased 13.4% to CLP 276,715 million mainly as a result of 13.2% higher volumes. All business segments contributed to this growth in Net sales as follows: Chile with 15.3% increase, as well as Rio de la Plata, which grew 13.9% and Wine complemented with 6.9% increase.
On organic basis, Total Net sales increased 11.7% as a result of 6.6% higher volumes coupled with 4.8% increase in average prices. The Chile business segment contributed to this growth in Net sales with 13.8% increase and Rio de la Plata business segment with 10.2%.
2013 Accumulated Total Net sales increased 10.9% to CLP 824,261 million mainly as a result of 11.2% higher volumes. On organic basis, accumulated Total Net sales increased 9.0% to CLP 810,379million as a result of 4.4% higher volumes coupled with 4.4% increase in average prices.
Net sales by segment
| | | | | | |
| | Net sales (million CLP) |
| | Q3'13 | M ix | Q3'12 | M ix | Total
Change% | Organic
Change% |
| 1. Chile Business segment | 172,248 | 62.2% | 149,347 | 61.2% | 15.3 | 13.8 |
| Beer Chile | 76,283 | 27.6% | 67,903 | 27.8% | 12.3 | 12.3 |
| Non-alcoholic beverages | 76,574 | 27.7% | 64,504 | 26.4% | 18.7 | 15.3 |
| Spirits | 19,391 | 7.0% | 16,940 | 6.9% | 14.5 | 14.5 |
| 2. Rio de la Plata Business segment | 62,530 | 22.6% | 54,899 | 22.5% | 13.9 | 10.2 |
| CCU Argentina | 60,498 | 21.9% | 54,899 | 22.5% | 10.2 | 10.2 |
| Uruguay | 2,033 | 0.7% | - | - | - | - |
| 3. Wine Business segment | 42,628 | 15.4% | 39,862 | 16.3% | 6.9 | 6.9 |
| 4. Other/Eliminations | (692) | (0.2)% | (132) | (0.1)% | N/A | N/A |
| TOTAL | 276,715 | 100.0% | 243,976 | 100.0% | 13.4 | 11.7 |
| |
| | Net sales (million CLP) |
| | YTD '13 | M ix | YTD '12 | M ix | Total
Change% | Organic
Change% |
| 1. Chile Business segment | 530,362 | 64.3% | 472,743 | 63.6% | 12.2 | 10.5 |
| Beer Chile | 241,238 | 29.3% | 221,286 | 29.8% | 9.0 | 9.0 |
| Non-alcoholic beverages | 239,438 | 29.0% | 205,980 | 27.7% | 16.2 | 12.5 |
| Spirits | 49,687 | 6.0% | 45,477 | 6.1% | 9.3 | 9.3 |
| 2. Rio de la Plata Business segment | 181,217 | 22.0% | 159,945 | 21.5% | 13.3 | 9.5 |
| CCU Argentina | 175,139 | 21.2% | 159,945 | 21.5% | 9.5 | 9.5 |
| Uruguay | 6,078 | 0.7% | - | - | - | - |
| 3. Wine Business segment | 113,808 | 13.8% | 111,751 | 15.0% | 1.8 | 1.8 |
| 4. Other/Eliminations | (1,127) | (0.1)% | (965) | (0.1)% | (16.8) | (16.8) |
| TOTAL | 824,261 | 100.0% | 743,474 | 100.0% | 10.9 | 9.0 |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 3 of 19 |
GROSS PROFIT
Q3’13 Increased 14.7% to CLP 147,203 million as a result of 13.4% higher Net sales. Cost of sales, as a percentage of Net sales, decreased from 47.4%to 46.8%, mainly due to lower cost of some raw materials, as sugar in Non-alcoholics and grapes in Wine. As a consequence, Gross profit, as a percentage of Net sales, increased from 52.6%to 53.2%.
On organic basis, Gross profit increased 13.3% to CLP 145,423 million as a result of 11.7% higher Net sales. As a consequence, Gross profit, as a percentage of Net sales, increased from 52.6% to 53.4%.
2013 Increased 13.6% to CLP 445,339 million and, as a percentage of Net sales, the consolidated Gross profit increased from 52.7% to 54.0%. On organic basis, Gross profit increased 11.8% to CLP 438,592 million and as a percentage of Net sales increased from 52.7% to 54.1%.
EBIT
Q3’13 Increased 1.8% to CLP34,673 million, mostly explained by 14.7% higher Gross profit, partially compensated by 18.8% higher MSD&A expenses, which increased to CLP 112,973 million. MSD&A expenses, as a percentage of Net sales, increased from 39.0% to 40.8%, mainly as a result of higher distribution costs, given higher real salaries caused by unemployment rate drop and higher cost of oil, and selling expenses in Chile and Argentina.
On organic basis,EBIT increased 2.7% to CLP 34,968 million, mostly explained by 13.3% higher Gross profit, partially compensated by 16.5% higher MSD&A expenses, which increased to CLP 110,789 million.
2013 Increased 2.9% to CLP 114,546 million and its margin decreased from 15.0% to 13.9%. On organic basis, EBIT increased 2.7% to CLP 114,348 million and its margin decreased from 15.0% to 14.1%, mostly explained by 11.8% higher Gross profit, partially compensated by 14.9% higher MSD&A expenses, which increased to CLP 325,412 million. MSD&A expenses, as a percentage of Net sales, increased from 38.1% to 40.2%, mainly as a result of higher distribution, marketing and selling expenses.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 4 of 19 |
EBIT and EBIT margin by segment
| | | | | | | | | | |
| | EBIT (million CLP) | EBIT margin |
| | Q3'13 | M ix | Q3'12 | M ix | Total
Change% | Organic
Change% | Q3'13Q3'12 | Total
Change(bps) | Organic
Change(bps) |
| 1. Chile Business segment | 30,502 | 88.0% | 27,454 | 80.6% | 11.1 | 10.3 | 17.7% | 18.4% | (67) | (57) |
| Beer Chile | 17,931 | 51.7% | 16,216 | 47.6% | 10.6 | 10.6 | 23.5% | 23.9% | (38) | (38) |
| Non-alcoholic beverages | 10,658 | 30.7% | 9,040 | 26.5% | 17.9 | 15.6 | 13.9% | 14.0% | (10) | 4 |
| Spirits | 1,913 | 5.5% | 2,198 | 6.5% | (13.0) | (13.0) | 9.9% | 13.0% | (311) | (311) |
| 2. Rio de la Plata Business segment | 753 | 2.2 % | 2,618 | 7.7 % | (71.2) | (51.9) | 1.2 % | 4.8 % | (356) | (269) |
| CCU Argentina | 1,260 | 03.6 % | 2,618 | 7.7 % | (51.9) | (51.9) | 2.1 % | 4.8 % | (269) | (269) |
| Uruguay | (507) | (1.5)% | - | - | - | - | (24.9)% | - | - | - |
| 3. Wine Business segment | 4,820 | 13.9% | 3,996 | 11.7% | 20.6 | 20.6 | 11.3% | 10.0% | 128 | 128 |
| 4. Other/Eliminations | (1,402) | (4.0)% | (5) | (0.0)% | N/A | N/A | - | - | - | - |
| TOTAL | 34,673 | 100.0% | 34,063 | 100.0% | 1.8 | 2.7 | 12.5% | 14.0% | (143) | (113) |
| |
| | EBIT (million CLP) | EBIT margin |
| | YTD '13 | M ix | YTD '12 | M ix | Total
Change% | Organic
Change% | YTD '13 | YTD '12 | Total
Change(bps) | Organic
Change(bps) |
| 1. Chile Business segment | 100,299 | 87.6% | 89,293 | 80.2% | 12.3 | 10.9 | 18.9% | 18.9% | 2 | 7 |
| Beer Chile | 60,074 | 52.4% | 53,580 | 48.1% | 12.1 | 12.1 | 24.9% | 24.2% | 69 | 69 |
| Non-alcoholic beverages | 35,284 | 30.8% | 30,502 | 27.4% | 15.7 | 11.6 | 14.7% | 14.8% | (7) | (11) |
| Spirits | 4,941 | 4.3% | 5,211 | 4.7% | (5.2) | (5.2) | 9.9% | 11.5% | (151) | (151) |
| 2. Rio de la Plata Business segment | 5,704 | 5.0 % | 11,230 | 10.1% | (49.2) | (39.9) | 3.1 % | 7.0 % | (387) | (317) |
| CCU Argentina | 6,745 | 5.9% | 11,230 | 10.1% | (39.9) | (39.9) | 3.9 % | 7.0 % | (317) | (317) |
| Uruguay | (1,041) | (0.9)% | - | - | - | - | (17.1)% | - | - | - |
| 3. Wine Business segment | 9,061 | 7.9% | 7,965 | 7.2% | 13.8 | 13.8 | 8.0% | 7.1% | 83 | 83 |
| 4. Other/Eliminations | (518) | (0.5)% | 2,815 | 2.5 % | (118.4) | (118.4) | - | - | - | - |
| TOTAL | 114,546 | 100.0% | 111,303 | 100.0% | 2.9 | 2.7 | 13.9% | 15.0% | (107) | (86) |
EBITDA
Q3’13 Increased 6.2% to CLP 50,807 million and the EBITDA margin decreased from 19.6% to 18.4%.
On organic basis, EBITDA increased 6.0% to CLP 50,716 million and the EBITDA margin decreased 100 bps to 18.6%.
2013 Increased 6.9% to CLP 161,943 million. EBITDA margin decreased from 20.4% to 19.6%. On organic basis, EBITDA increased 6.1% to CLP 160,706 million and its margin decreased 54 bps to 19.8 %.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 5 of 19 |
EBITDA and EBITDA margin by segment
| | | | | | | | | | |
| | EBITDA (million CLP) | EBITDA margin |
| | Q3'13 | M ix | Q3'12 | M ix | Total
Change% | Organic
Change% | Q3'13 | Q3'12 | Total
Change(bps) | Organic
Change(bps) |
| 1. Chile Business segment | 39,695 | 78.1% | 35,977 | 75.2% | 10.3 | 8.9 | 23.0% | 24.1% | (104) | (104) |
| Beer Chile | 22,813 | 44.9% | 21,175 | 44.2% | 7.7 | 7.7 | 29.9% | 31.2% | (128) | (128) |
| Non-alcoholic beverages | 14,472 | 28.5% | 12,051 | 25.2% | 20.1 | 15.9 | 18.9% | 18.7% | 22 | 10 |
| Spirits | 2,410 | 4.7% | 2,750 | 5.7% | (12.4) | (12.4) | 12.4% | 16.2% | (381) | (381) |
| 2. Rio de la Plata Business segment | 3,462 | 6.8 % | 4,326 | 9.0 % | (20.0) | (10.3) | 5.5 % | 7.9 % | (234) | (146) |
| CCU Argentina | 3,881 | 7.6 % | 4,326 | 9.0 % | (10.3) | (10.3) | 6.4 % | 7.9 % | (146) | (146) |
| Uruguay | (419) | (0.8)% | - | - | - | - | (20.6)% | | - | - |
| 3. Wine Business segment | 6,685 | 13.2% | 5,552 | 11.6% | 20.4 | 20.4 | 15.7% | 13.9% | 175 | 175 |
| 4. Other/Eliminations | 964 | 1.9 % | 2,007 | 4.2 % | (52.0) | (52.0) | - | - | - | - |
| TOTAL | 50,807 | 100.0% | 47,862 | 100.0% | 6.2 | 6.0 | 18.4% | 19.6% | (126) | (100) |
| |
| | EBITDA (million CLP) | EBITDA margin |
| | YTD '13 | M ix | YTD '12 | M ix | Total
Change% | Organic
Change% | YTD '13 | YTD '12 | Total
Change(bps) | Organic
Change(bps) |
| 1. Chile Business segment | 127,831 | 78.9% | 113,623 | 75.0% | 12.5 | 10.7 | 24.1% | 24.0% | 7 | 3 |
| Beer Chile | 74,985 | 46.3% | 67,759 | 44.7% | 10.7 | 10.7 | 31.1% | 30.6% | 46 | 46 |
| Non-alcoholic beverages | 46,357 | 28.6% | 39,111 | 25.8% | 18.5 | 13.3 | 19.4% | 19.0% | 37 | 14 |
| Spirits | 6,488 | 4.0% | 6,753 | 4.5% | (3.9) | (3.9) | 13.1% | 14.8% | (179) | (179) |
| 2. Rio de la Plata Business segment | 13,376 | 8.3 % | 16,225 | 10.7 % | (17.6) | (12.5) | 7.4 % | 10.1 % | (276) | (204) |
| CCU Argentina | 14,200 | 8.8% | 16,225 | 10.7 % | (12.5) | (12.5) | 8.1 % | 10.1 % | (204) | (204) |
| Uruguay | (823) | (0.5)% | - | - | - | - | (13.5)% | | - | - |
| 3. Wine Business segment | 14,189 | 8.8% | 12,927 | 8.5% | 9.8 | 9.8 | 12.5% | 11.6% | 90 | 90 |
| 4. Other/Eliminations | 6,547 | 4.0 % | 8,709 | 5.7 % | (24.8) | (24.8) | - | - | - | - |
| TOTAL | 161,943 | 100.0% | 151,485 | 100.0% | 6.9 | 6.1 | 19.6% | 20.4% | (73) | (54) |
NON-OPERATING RESULT
Q3’13 Decreased CLP 3,259 million from a loss of CLP 3,815 million to a loss of CLP 7,074 million mainly explained by:
· Net financial expenses which increased CLP 2,769 million to a loss of CLP 5,100 million, due to higher debt in Argentina in Q3’13 at ARS nominal interest rate.
· Results as per adjustment unitswhich decreased CLP 1,197 million, mainly due to 1.04% increase of the UF value in Q3’13 compared with 0.16% decrease of the UF in Q3’12.
Partially compensated by:
· Other gains/(losses) and Foreign currency exchange differences which increased CLP 521 million mainly due to gains related to hedges covering foreign exchange variations on taxes.
2013 Decreased CLP 1,760 million from a loss of CLP 12,183 to a loss of CLP 13,944 million, due mostly to higher Net financial expenses partially compensated by Other gains/(losses) and Results as per adjustment units.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 6 of 19 |
INCOME TAXES
Q3’13 Decreased CLP 6,615 million, mainly explained by the absence of one-time effect of CLP 6,142 million caused by higher corporate income tax rate in Chile in Q3’12.
2013 Decreased CLP 6,718 million mostly explained by the absence of one-time effect on deferred income taxes, of CLP 5,235 million caused by higher corporate income tax rate in Chile in 2012.
NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF PARENT COMPANY
Q3’13 Increased 20.8% to CLP 20,999 million mostly due to lower Income taxes, partially compensated by higher Non-operating losses. On organic basis, Net Income increased 22.6%.
2013 Increased 11.3% to CLP 76,744 million mostly explained by higher EBIT and lower Income taxes partially compensated by higher Non-operating losses. On organic basis, Net Income increased 11.2%.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 7 of 19 |
The following schedule details the effect of first time consolidation of the acquisition of Manantial and in Uruguay in the third quarter and year to date as of September 2013. For better insight, Proforma refers to consolidated results as reported, excluding the Manantial and Uruguay operation’s consolidation impact.
| | | | | | | | |
| Third Quarter | As reported | Manantial(1) | Uruguay | Proforma(2) | Total(3) | Organic(4) |
| (In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | 2013 | 2012 | Change% | Change% |
| Volumes | 4,874 | 4,307 | 151 | 134 | 4,589 | 4,307 | 13.2 | 6.6 |
| Net Sales | 276,715 | 243,976 | 2,227 | 2,033 | 272,455 | 243,976 | 13.4 | 11.7 |
| Net Sales (CLP/HL) | 56,775 | 56,653 | 14,741 | 15,171 | 59,374 | 56,653 | 0.2 | 4.8 |
| Cost of sales | (129,512) | (115,659) | (640) | (1,840) | (127,032) | (115,659) | 12.0 | 9.8 |
| % of net sales | 46.8 | 47.4 | 28.8 | 90.5 | 46.6 | 47.4 | | |
| Gross profit | 147,203 | 128,316 | 1,587 | 193 | 145,423 | 128,316 | 14.7 | 13.3 |
| % of net sales | 53.2 | 52.6 | 71.2 | 9.5 | 53.4 | 52.6 | | |
| MSD&A | (112,973) | (95,123) | (1,484) | (700) | (110,789) | (95,123) | 18.8 | 16.5 |
| % of net sales | 40.8 | 39.0 | 66.6 | 34.5 | 40.7 | 39.0 | | |
| Other operating income/(expenses) | 443 | 870 | 109 | 1 | 333 | 870 | (49.1) | (61.7) |
| EBIT | 34,673 | 34,063 | 212 | (507) | 34,968 | 34,063 | 1.8 | 2.7 |
| EBIT Margin (%) | 12.5 | 14.0 | 9.5 | (24.9) | 12.8 | 14.0 | | |
| EBITDA | 50,807 | 47,862 | 509 | (419) | 50,716 | 47,862 | 6.2 | 6.0 |
| EBITDA Margin (%) | 18.4 | 19.6 | 22.9 | (20.6) | 18.6 | 19.6 | | |
| |
| YTD as of September | As reported | Manantial(1) | Uruguay | Proforma(2) | Total(3) | Organic(4) |
| (In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | 2013 | 2012 | Change% | Change% |
| Volumes | 15,193 | 13,667 | 506 | 420 | 14,267 | 13,667 | 11.2 | 4.4 |
| Net Sales | 824,261 | 743,474 | 7,804 | 6,078 | 810,379 | 743,474 | 10.9 | 9.0 |
| Net Sales (CLP/HL) | 54,253 | 54,401 | 15,422 | 14,460 | 56,802 | 54,401 | (0.3) | 4.4 |
| Cost of sales | (378,922) | (351,329) | (1,963) | (5,172) | (371,787) | (351,329) | 7.9 | 5.8 |
| % of net sales | 46.0 | 47.3 | 25.2 | 85.1 | 45.9 | 47.3 | | |
| Gross profit | 445,339 | 392,145 | 5,841 | 906 | 438,592 | 392,145 | 13.6 | 11.8 |
| % of net sales | 54.0 | 52.7 | 74.8 | 14.9 | 54.1 | 52.7 | | |
| MSD&A | (332,077) | (283,290) | (4,736) | (1,930) | (325,412) | (283,290) | 17.2 | 14.9 |
| % of net sales | 40.3 | 38.1 | 60.7 | 31.7 | 40.2 | 38.1 | | |
| Other operating income/(expenses) | 1,284 | 2,448 | 133 | (17) | 1,167 | 2,448 | (47.6) | (52.3) |
| EBIT | 114,546 | 111,303 | 1,238 | (1,041) | 114,348 | 111,303 | 2.9 | 2.7 |
| EBIT Margin (%) | 13.9 | 15.0 | 15.9 | (17.1) | 14.1 | 15.0 | | |
| EBITDA | 161,943 | 151,485 | 2,060 | (823) | 160,706 | 151,485 | 6.9 | 6.1 |
| EBITDA Margin (%) | 19.6 | 20.4 | 26.4 | (13.5) | 19.8 | 20.4 | | |
| (1) Mantantial reports with 1month delay. |
| (2) Proforma excludes Manantial and Uruguay. |
| (3) Total Change refers to as reported figures variation. |
| (4) Organic Change refers to as proform figures variation. |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 8 of 19 |
BUSINESS SEGMENTS HIGHLIGHTS(Exhibits 3 and 4) |
1. CHILE |
Net sales increased 15.3% to CLP 172,248 million as a result of 15.0% higher sales volume coupled with 0.3% higher average prices. On organic basis, Net sales increased 13.8% as a result of 9.9% higher organic sales volume coupled with 3.5% increase in average prices.
EBITincreased 11.1% to CLP 30,502 million due to 15.3% higher Net sales, partially offset by 13.8% higher Cost of Sales and 18.6% higher MSD&A expenses. Cost of sales, as a percentage of Net sales, decreased from 46.9% to 46.3% and MSD&A, as a percentage of Net sales, increased from 35.1% to 36.1%, mainly explained by higher distribution costs and selling expenses. The EBIT margin decreased from 18.4% to 17.7%. On organic basis, EBIT increased 10.3% due to 13.8% higher Net sales, partially offset by 12.9% higher Cost of sales and 15.8% higher MSD&A expenses. The EBIT margin decreased from 18.4% to 17.8 %.
EBITDAincreased 10.3% to CLP 39,695 million and the EBITDA margin decreased from 24.1% to 23.0%. On organic basis, EBITDA increased 8.9% to CLP 39,186million and the EBITDA margin decreased from 24.1% to 23.0%.
Net sales increased 12.3% to CLP 76,283 million as a result of 7.3% higher average prices coupled with 4.7% higher sales volume.
EBITincreased 10.6% to CLP17,931 million because of 12.3% higher Net sales, partially offset by 13.3% higher Cost of Sales and 11.8% higher MSD&A expenses. Cost of sales, as a percentage of Net sales, increased from 41.6% to 42.0% due to higher one-way packaging sales and higher malt cost this quarter. MSD&A, as a percentage of Net sales, decreased from 34.7% to 34.6% despite higher distribution costs. The EBIT margin decreased from 23.9% to 23.5%.
EBITDAincreased 7.7% to CLP 22,813 million and the EBITDA margin decreased from 31.2% to 29.9%.
Comments In July, we successfully implemented a price increase for our entire portfolio. The launch of Escudo Negra not only resulted in volume growth for the brand itself, it also reignited consumer interest in the entire dark beer segment, thus driving overall market growth. We will continue implementing value-adding innovations as a way to strengthen both our market position as well as lead growth in per capita consumption. This quarter we launched Royal Guard Black Label, an extension of our premium brand Royal Guard. This launch is still at its initial stage. However, having created confidence with our customers through the previous launches of new products we have seen a very swift distribution build-up. Also this innovation was launched at a higher price point than the mother brand, as was the case previously with Cristal Cero, Cristal Light and Escudo Negra.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 9 of 19 |
- NON-ALCOHOLIC BEVERAGES |
Net sales increased 18.7% to CLP 76,574 million. On organic basis, Net Sales increased 15.3% as a result of 13.3% volume growth coupled with 1.7% increase in average prices. Outstanding organic volume growth was delivered by every category: nectar 26.5%, water 14.6% and soft drinks 9.5%.
EBITincreased17.9% to CLP10,658 million due to24.7% higher Gross profit, as a consequence of higher Net sales, partiallycompensated by 12.5% increase in Cost of sales. Nevertheless, Cost of sales, as a percentage of Net sales, decreased from48.9% to46.4% mainly explained by lower sugar cost. The higher Gross profit was partially offset by 27.0% growth in MSD&A expenses explained by higher distribution costs. EBIT margin decreased from 14.0% to 13.9%. On organic basis, EBIT increased 15.6% due to 19.9% higher Gross profit partially compensated by 20.8% increase in MSD&A expenses. Consequently, EBIT margin increased from 14.0% to 14.1%.
EBITDAincreased 20.1% to CLP 14,472 million and the EBITDA margin increased from 18.7% to 18.9%. On organic basis, EBITDA increased 15.9% to CLP 13,963 million and its margin increased from 18.7% to 18.8%.
CommentsVolumes continued with the trend shown in the past quarters, given growth in all categories. Non-carbonated beverages had an excellent performance mainly due to consumer trends consolidation (look and feel good) and market share expansion, in particular nectar. As for the carbonated beverages, market share has increased in the cola segment, although the category has a lower growth rate. During the quarter we faced an increase in promotional activities, intensifying the competitive environment.
Net sales increased 14.5% to CLP 19,391 million as a result of 7.4% higher volumes coupled with 6.6% higher average prices.
EBIT decreased 13.0% to CLP1,913 million mainly due to19.2% higher Cost of sales due to higher cost of raw materials driven by higher Pisco grapes cost and an increase in third parties distillation, partially offset by 14.5% higher Net Sales. MSD&A expenses increased10.7% to CLP5,319 million mostly explained by higher distribution costs. EBIT margin decreased from 13.0% to 9.9%.
EBITDAdecreased 12.4% to CLP 2,410 million and the EBITDA margin decreased from 16.2% to 12.4%.
CommentsVolume increase is mostly explained by the performance in the pisco category, partly driven by an increase in our customer’s inventories due to a Pisco price increase announced in August. This price increase is to compensate for higher Cost of sales, which is mainly caused by the intense drought suffered in the regions where (designation of origin) Pisco grapes are produced.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 10 of 19 |
Net sales, measured in Chilean pesos, increased 13.9% to CLP 62,530 million as a result of 11.5% higher sales volume coupled with 2.2% increase in average prices. On organic basis, Net sales increased 10.2% to CLP 60,498 million due to 12.6% increase in average prices, partially compensated by 2.2% lower sales volume.
EBIT, measured in Chilean pesos, decreased 71.2% to CLP 753 million in Q3’13, as a result of 17.9% increase in MSD&A expenses due to inflationary pressure, distribution costs, selling and marketing expenses, not fully compensated by higher Net sales. Therefore, Cost of sales and MSD&A, as a percentage of Net sales, increased from 41.5% to 43.5% and from 53.9% to 55.8%, respectively. EBIT margin decreased from 4.8% to 1.2%. On organic basis, EBIT decreased 51.9% due to 15.5% increase in MSD&A expenses.
EBITDA, measured in Chilean pesos, decreased 20.0% to CLP 3,462 million and EBITDA margin decreased from 7.9% to 5.5%. Measured in USD, EBITDA decreased from 9.1 million to 6.8 million. On organic basis, EBITDA decreased 10.3% to CLP 3,881 million and EBITDA margin decreased from 7.9% to 6.4%.
Net sales, measured in Chilean pesos, increased 10.2% to CLP 60,498 million as a result of 12.6% higher average prices partially offset by 2.2% lower sales volume.
EBIT,measured in Chilean pesos, decreased 51.9% to CLP 1,260 million mainly due to 15.5% higher MSD&A expenses, despite the Gross profit increase of 9.4% which, as a percentage of Net sales, decreased from 58.5% to 58.1%. MSD&A as a percentage of Net sales, increased from 53.9% to 56.5%, mainly due to higher distribution costs, selling and marketing expenses. EBIT margin decreased from 4.8% to 2.1%.
EBITDAdecreased 10.3% to CLP 3,881 million this quarter and the EBITDA margin dropped from 7.9% to 6.4%. Measured in USD, EBITDA decreased from 9.1 million to 7.6 million.
Comments In USD terms, Net Sales raised 3.8% this quarter due to price increases and lower discounts to our customers, partially compensated by lower sales volumes, in line with industry decline. Price adjustments have allowed us to partially compensate higher MSD&A expenses given inflationary pressures. During the quarter, we have continued with the implementation of the proprietary bottle park renewal.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 11 of 19 |
The integration of the acquired operation in Uruguay is progressing well and in line with management plans. As of Q3 2013, CCU Uruguay has moved its Administrative, Sales and Distribution operations to a new distribution center in Montevideo and has taken its first step into direct distribution. The company has completed the integration of its beer portfolio, transitioning the Heineken, Budweiser and Schneider brands to its route to market. The new image of the Nativa Mineral Water brand was introduced to the market in September together with a new marketing campaign.
Measured in Chilean pesos, this quarter results delivered CLP 2,033 million of Net sales and 134 thousand hectoliter volume sales. EBITDA amounted to a loss of CLP 419 million. Cost of sales where higher than in previous quarters due to depreciation of the Uruguayan Peso which impacted imported raw materials cost. Furthermore, the competitive environment has affected margins.
Net sales increased 6.9% to CLP 42,628 million due to 2.4% increase in volumes and 4.5% higher average price, when expressed in Chilean pesos. The Chile Domestic average price increased 5.7% as a result of better sales mix.
EBITincreased 20.6% to CLP 4,820 millionmainly due to higher volumes and prices. Cost of sales increased 2.3% and as a percentage of Net sales, it decreased from 61.4% to 58.7%, mainly due to lower grapes costs related with 2013 good harvest. MSD&A expenses increased 10.7% mainly due to higher marketing expenses and distribution costs. EBIT margin increased from 10.0% to 11.3%.
EBITDAincreased 20.4% to CLP 6,685 million and the EBITDA margin increased from 13.9% to 15.7%.
CommentsThe results of the third quarter are positively influenced by the depreciation of the Chilean peso, lower costs of wine, and a good performance in the Domestic market. Additionally, we have continued with our strategy to invest more in marketing (brand building). In the Exports market we have had a good performance, but with some concerns in Brazil, Venezuela and Colombia.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 12 of 19 |
FURTHER INFORMATION AND EXHIBITS |
ABOUT CCU
CCUis a diversified beverage company operating principally in Chile, Argentina and Uruguay. CCUis the largest Chilean brewer, the second-largest Argentine brewer, the second-largest Chilean soft drink producer, the third-largest Chilean wine producer, the largest Chilean mineral water and nectars producer, the largest pisco distributor and also participates in the HOD, rum and confectionery industries in Chile. 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.. For more 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
Business Segments
Business segments are reflected as follows: 1. Chile, which considers Beer Chile, Spirits and Non Alcoholic (including nectars, water, as purified mineral and HOD, and softdrinks which also incorporates tea, sports and energy drinks); 2. Rio de la Plata, which includes CCU Argentina (including beer, cider, spirits, energy drinks and domestic wine from Tamarí sales) and Uruguay’s Operation (softdrinks and mineral water); 3. Wine, (including Chile domestic, Chile export and Argentina, export and domestic, except sales from Tamarí), 4. The “Other/Eliminations” considers the non-allocated corporate overhead expenses and the result of the logistics subsidiary. Corporate shared services, distribution and logistics expenses allocated to each business segment based on Service Level Agreements.
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)
Net profit divided by the weighted average number of shares during the year.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 13 of 19 |
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.
Exceptional Items (EI)
Formerly referred to as Non recurring items (NRI), Exceptional items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are important for the understanding of the underlying sustainable performance of the Company due to their size or nature.
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.
Normalized
The term “normalized” refers to performance measures (EBITDA, EBIT, Net income, EPS) before exceptional items.
ROCE
ROCE stands for Return on Capital Employed.
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.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 14 of 19 |
| | | | | | |
| Exhibit 1: Income Statement (Third Quarter 2013) | | | | | | |
| Third Quarter | 2013 | 2012 | 2013 | 2012 | Total | Organic |
| | (CLP million) | (USD million)(1) | Change % | Change % |
| Net Sales | 276,715 | 243,976 | 545 | 481 | 13.4 | 11.7 |
| Cost of sales | (129,512) | (115,659) | (255) | (228) | 12.0 | 9.8 |
| % of net sales | 46.8 | 47.4 | 46.8 | 47.4 | | |
| Gross profit | 147,203 | 128,316 | 290 | 253 | 14.7 | 13.3 |
| MSD&A | (112,973) | (95,123) | (223) | (187) | 18.8 | 16.5 |
| % of net sales | 40.8 | 39.0 | 40.8 | 39.0 | | |
| Other operating income/(expenses) | 443 | 870 | 1 | 2 | (49.1) | (61.7) |
| Normalized EBIT | 34,673 | 34,063 | 68 | 67 | 1.8 | 2.7 |
| % of net sales | 12.5 | 14.0 | 12.5 | 14.0 | | |
| Exceptional items | - | - | - | - | | |
| EBIT | 34,673 | 34,063 | 68 | 67 | 1.8 | 2.7 |
| % of net sales | 12.5 | 14.0 | 12.5 | 14 | | |
| Net financial expenses | (5,100) | (2,331) | (10) | (5) | 118.8 | 119.7 |
| Equity and income of JVs | 163 | (24) | 0 | (0) | 784.2 | 784.2 |
| Foreign currency exchange differences | (617) | 91 | (1) | 0 | (778.4) | (837.1) |
| Results as per adjustment units | (929) | 268 | (2) | 1 | (446.1) | (446.1) |
| Other gains/(losses) | (590) | (1,820) | (1) | (4) | (67.6) | (71.5) |
| Total Non-operating result | (7,074) | (3,815) | (14) | (8) | (85.4) | (85.4) |
| Income/(loss) before taxes | 27,599 | 30,248 | 54 | 60 | (8.8) | (7.8) |
| Income taxes | (4,095) | (10,710) | (8) | (21) | (61.8) | (61.9) |
| Net income for the period | 23,504 | 19,538 | 46 | 39 | 20.3 | 21.9 |
| |
| Normalized net income attributable to: | | | | | | |
| The equity holders of the parent | 20,999 | 17,388 | 41 | 34 | 20.8 | 22.6 |
| |
| Net income attributable to: | | | | | | |
| The equity holders of the parent | 20,999 | 17,388 | 41 | 34 | 20.8 | 22.6 |
| Non-controlling interest | 2,505 | 2,150 | 5 | 4 | 16.5 | 16.5 |
| |
| Normalized EBITDA | 50,807 | 47,862 | 100 | 94 | 6.2 | 6.0 |
| % of net sales | 18.4 | 19.6 | 18.4 | 19.6 | | |
| EBITDA | 50,807 | 47,862 | 100 | 94 | 6.2 | 6.0 |
| % of net sales | 18.4 | 19.6 | 18.4 | 19.6 | | |
| |
| OTHER INFORMATION | | | | | | |
| Number of shares(2) | 322,964,121 | 318,502,872 | 322,964,121 | 318,502,872 | | |
| Shares per ADR(3) | 2 | 2 | 2 | 2 | | |
| |
| Normalized Earnings per share | 65.02 | 54.59 | 0.13 | 0.11 | 19.1 | 20.9 |
| Earnings per share | 65.02 | 54.59 | 0.13 | 0.11 | 19.1 | 20.9 |
| Normalized Earnings per ADR | 130.04 | 109.19 | 0.26 | 0.22 | 19.1 | 20.9 |
| Earnings per ADR | 130.04 | 109.19 | 0.26 | 0.22 | 19.1 | 20.9 |
| |
| Depreciation | 16,134 | 13,798 | 32 | 27 | 16.9 | 16.9 |
| Capital Expenditures | 40,267 | 21,197 | 79 | 42 | 90.0 | 90.0 |
| (1) Average Exchange rate for the period: US$1.00 = CLP 507.42 |
| (2) Considers period w eighted average shares according to capital increase as of September 30, 2013. |
| (3) Dated December 20th, 2012 there w as an ADR ratio change from 1 ADR to 5 common shares, to a new ratio of 1 ADR to 2 common shares. |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 15 of 19 |
| | | | | | |
| Exhibit 2: Income Statement (Nine months ended on September 30, 2013) | | | | |
| YTD as of September | 2013 | 2012 | 2013 | 2012 | Total | Organic |
| | (CLP million) | (USD million)(1) | Change % | Change % |
| Net Sales | 824,261 | 743,474 | 1,624 | 1,465 | 10.9 | 9.0 |
| Cost of sales | (378,922) | (351,329) | (747) | (692) | 7.9 | 5.8 |
| % of net sales | 46.0 | 47.3 | 46.0 | 47.3 | | |
| Gross profit | 445,339 | 392,145 | 878 | 773 | 13.6 | 11.8 |
| MSD&A | (332,077) | (283,290) | (654) | (558) | 17.2 | 14.9 |
| % of net sales | 40.3 | 38.1 | 40.3 | 38.1 | | |
| Other operating income/(expenses) | 1,284 | 2,448 | 3 | 5 | (47.6) | (52.3) |
| Normalized EBIT | 114,546 | 111,303 | 226 | 219 | 2.9 | 2.7 |
| % of net sales | 13.9 | 15.0 | 13.9 | 15.0 | | |
| Exceptional items | - | - | - | - | | |
| EBIT | 114,546 | 111,303 | 226 | 219 | 2.9 | 2.7 |
| % of net sales | 13.9 | 15.0 | 13.9 | 15 | | |
| Net financial expenses | (12,877) | (5,369) | (25) | (11) | 139.8 | 134.5 |
| Equity and income of JVs | 161 | (144) | 0 | (0) | 211.4 | 211.4 |
| Foreign currency exchange differences | (1,266) | (522) | (2) | (1) | (142.4) | (130.7) |
| Results as per adjustment units | (1,050) | (2,359) | (2) | (5) | 55.5 | 55.5 |
| Other gains/(losses) | 1,089 | (3,788) | 2 | (7) | 128.7 | 130.8 |
| Total Non-operating result | (13,944) | (12,183) | (27) | (24) | (14.5) | (14.5) |
| Income/(loss) before taxes | 100,602 | 99,120 | 198 | 195 | 1.5 | 1.3 |
| Income taxes | (17,819) | (24,536) | (35) | (48) | (27.4) | (27.7) |
| Net income for the period | 82,783 | 74,584 | 163 | 147 | 11.0 | 10.8 |
| |
| Normalized net income attributable to: | | | | | | |
| The equity holders of the parent | 76,744 | 68,924 | 151 | 136 | 11.3 | 11.2 |
| |
| Net income attributable to: | | | | | | |
| The equity holders of the parent | 76,744 | 68,924 | 151 | 136 | 11.3 | 11.2 |
| Non-controlling interest | 6,040 | 5,660 | 12 | 11 | 6.7 | 6.7 |
| |
| Normalized EBITDA | 161,943 | 151,485 | 319 | 299 | 6.9 | 6.1 |
| % of net sales | 19.6 | 20.4 | 19.6 | 20.4 | | |
| EBITDA | 161,943 | 151,485 | 319 | 299 | 6.9 | 6.1 |
| % of net sales | 19.6 | 20.4 | 19.6 | 20.4 | | |
| |
| OTHER INFORMATION | | | | | | |
| Number of shares(2) | 320,006,296 | 318,502,872 | 320,006,296 | 318,502,872 | | |
| Shares per ADR(3) | 2 | 2 | 2 | 2 | | |
| |
| Normalized Earnings per share | 239.82 | 216.40 | 0.47 | 0.43 | 10.8 | 10.6 |
| Earnings per share | 239.82 | 216.40 | 0.47 | 0.43 | 10.8 | 10.6 |
| Normalized Earnings per ADR | 479.64 | 432.80 | 0.95 | 0.85 | 10.8 | 10.6 |
| Earnings per ADR | 479.64 | 432.80 | 0.95 | 0.85 | 10.8 | 10.6 |
| |
| Depreciation | 47,398 | 40,182 | 93 | 79 | 18.0 | 18.0 |
| Capital Expenditures | 91,197 | 76,376 | 180 | 151 | 19.4 | 19.4 |
| (1) Average Exchange rate for the period: US$1.00 = CLP 507.42 |
| (2) Considers period weighted average shares according to capital increase as of September 30, 2013. |
| (3) Dated December 20th, 2012 there was an ADR ratio change from 1 ADR to 5 common shares, to a new ratio of 1 ADR to 2 common shares. |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 16 of 19 |
PRESS RELEASE ��
| | | | | | | | | | | | | | | | |
| Exhibit3: Segment Information (Third Quarter 2013) | | | | | | | | | |
| | 1. Chile Business segment |
| Third Quarter | Beer Chile | Non-Alcoholic | Spirits | Total |
| (In ThHL o r CLP million unless stated o therwise) | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % |
| Volumes(1) | 1,167 | 1,115 | 4.7 | 4.7 | 2,169 | 1,781 | 21.8 | 13.3 | 77 | 71 | 7.4 | 7.4 | 3,414 | 2,967 | 15.0 | 9.9 |
| Net Sales | 76,283 | 67,903 | 12.3 | 12.3 | 76,574 | 64,504 | 18.7 | 15.3 | 19,391 | 16,940 | 14.5 | 14.5 | 172,248 | 149,347 | 15.3 | 13.8 |
| Net Sales (CLP/HL) | 65,344 | 60,887 | 7.3 | 7.3 | 35,296 | 36,222 | (2.6) | 1.7 | 252,672 | 237,019 | 6.6 | 6.6 | 50,459 | 50,327 | 0.3 | 3.5 |
| Cost of sales | (32,028) | (28,278) | 13.3 | 13.3 | (35,517) | (31,574) | 12.5 | 10.5 | (12,210) | (10,240) | 19.2 | 19.2 | (79,754) | (70,091) | 13.8 | 12.9 |
| % of net sales | 42.0 | 41.6 | | | 46.4 | 48.9 | | | 63.0 | 60.4 | | | 46.3 | 46.9 | | |
| Gross profit | 44,255 | 39,625 | 11.7 | 11.7 | 41,057 | 32,931 | 24.7 | 19.9 | 7,181 | 6,700 | 7.2 | 7.2 | 92,493 | 79,256 | 16.7 | 14.7 |
| % of net sales | 58.0 | 58.4 | | | 53.6 | 51.1 | | | 37.0 | 39.6 | | | 53.7 | 53.1 | | |
| MSD&A | (26,367) | (23,590) | 11.8 | 11.8 | (30,447) | (23,982) | 27.0 | 20.8 | (5,319) | (4,806) | 10.7 | 10.7 | (62,133) | (52,377) | 18.6 | 15.8 |
| % of net sales | 34.6 | 34.7 | | | 39.8 | 37.2 | | | 27.4 | 28.4 | | | 36.1 | 35.1 | | |
| Other operating income/(expenses) | 43 | 181 | N/A | N/A | 49 | 91 | N/A | N/A | 50 | 304 | N/A | N/A | 142 | 576 | N/A | N/A |
| EBIT | 17,931 | 16,216 | 10.6 | 10.6 | 10,658 | 9,040 | 17.9 | 15.6 | 1,913 | 2,198 | (13.0) | (13.0) | 30,502 | 27,454 | 11.1 | 10.3 |
| EBIT Margin (%) | 23.5 | 23.9 | | | 13.9 | 14.0 | | | 9.9 | 13.0 | | | 17.7 | 18.4 | | |
| EBITDA | 22,813 | 21,175 | 7.7 | 7.7 | 14,472 | 12,051 | 20.1 | 15.9 | 2,410 | 2,750 | (12.4) | (12.4) | 39,695 | 35,977 | 10.3 | 8.9 |
| EBITDA Margin (%) | 29.9 | 31.2 | | | 18.9 | 18.7 | | | 12.4 | 16.2 | | | 23.0 | 24.1 | | |
| |
| | 2. Río de la Plata Business segment | 3. Wine Business segment |
| Third Quarter | CCU Argentina | Uruguay | Total |
| (In ThHL o r CLP million unless stated o therwise) | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % |
| Volumes(1) | 962 | 983 | (2.2) | (2.2) | 134 | - | | | 1,096 | 983 | 11.5 | (2.2) | 364 | 356 | 2.4 | 2.4 |
| Net Sales | 60,498 | 54,899 | 10.2 | 10.2 | 2,033 | - | | | 62,530 | 54,899 | 13.9 | 10.2 | 42,628 | 39,862 | 6.9 | 6.9 |
| Net Sales (CLP/HL) | 62,870 | 55,822 | 12.6 | 12.6 | 15,171 | - | | | 57,040 | 55,822 | 2.2 | 12.6 | 117,119 | 112,118 | 4.5 | 4.5 |
| Cost of sales | (25,372) | (22,805) | 11.3 | 11.3 | (1,840) | - | | | (27,212) | (22,805) | 19.3 | 11.3 | (25,044) | (24,481) | 2.3 | 2.3 |
| % of net sales | 41.9 | 41.5 | | | 90.5 | - | | | 43.5 | 41.5 | | | 58.7 | 61.4 | | |
| Gross profit | 35,125 | 32,094 | 9.4 | 9.4 | 193 | | | | 35,318 | 32,094 | 10.0 | 9.4 | 17,585 | 15,381 | 14.3 | 14.3 |
| % of net sales | 58.1 | 58.5 | | | 9.5 | - | | | 56.5 | 58.5 | | | 41.3 | 38.6 | | |
| MSD&A | (34,169) | (29,579) | 15.5 | 15.5 | (700) | - | | | (34,869) | (29,579) | 17.9 | 15.5 | (12,679) | (11,454) | 10.7 | 10.7 |
| % of net sales | 56.5 | 53.9 | | | 34.5 | - | | | 55.8 | 53.9 | | | 29.7 | 28.7 | | |
| Other operating income/(expenses) | 303 | 102 | N/A | N/A | 1 | - | | | 304 | 102 | N/A | N/A | (85) | 69 | N/A | N/A |
| EBIT | 1,260 | 2,618 | (51.9) | (51.9) | (507) | - | | | 753 | 2,618 | (71.2) | (51.9) | 4,820 | 3,996 | 20.6 | 20.6 |
| EBIT Margin (%) | 2.1 | 4.8 | | | (24.9) | - | | | 1.2 | 4.8 | | | 11.3 | 10.0 | | |
| EBITDA | 3,881 | 4,326 | (10.3) | (10.3) | (419) | - | | | 3,462 | 4,326 | (20.0) | (10.3) | 6,685 | 5,552 | 20.4 | 20.4 |
| EBITDA Margin (%) | 6.4 | 7.9 | | | (20.6) | - | | | 5.5 | 7.9 | | | 15.7 | 13.9 | | |
| |
| | 4. Other/eliminations | Total | | | | | | | | |
| Third Quarter | | | | | | | | |
| (In ThHL o r CLP million unless stated o therwise) | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % | | | | | | | | |
| Volumes(1) | - | - | 0.0 | 0.0 | 4,874 | 4,307 | 13.2 | 6.6 | | | | | | | | |
| Net Sales | (692) | (132) | (422.6) | (422.6) | 276,715 | 243,976 | 13.4 | 11.7 | | | | | | | | |
| Net Sales (CLP/HL) | - | - | 0.0 | 0.0 | 56,775 | 56,653 | 0.2 | 4.8 | | | | | | | | |
| Cost of sales | 2,498 | 1,718 | 45.4 | 45.4 | (129,512) | (115,659) | 12.0 | 9.8 | | | | | | | | |
| % of net sales | | | | | 46.8 | 47.4 | | | | | | | | | | |
| Gross profit | 1,806 | 1,586 | 13.9 | 13.9 | 147,203 | 128,316 | 14.7 | 13.3 | | | | | | | | |
| % of net sales | | | | | 53.2 | 52.6 | | | | | | | | | | |
| MSD&A | (3,291) | (1,713) | 92.1 | 92.1 | (112,973) | (95,123) | 18.8 | 16.5 | | | | | | | | |
| % of net sales | | | | | 40.8 | 39.0 | | | | | | | | | | |
| Other operating income/(expenses) | 83 | 123 | (32.4) | (32.4) | 443 | 870 | (49.1) | (61.7) | | | | | | | | |
| EBIT | (1,402) | (5) | N/A | N/A | 34,673 | 34,063 | 1.8 | 2.7 | | | | | | | | |
| EBIT Margin (%) | | | | | 12.5 | 14.0 | | | | | | | | | | |
| EBITDA | 964 | 2,007 | (52.0) | (52.0) | 50,807 | 47,862 | 6.2 | 6.0 | | | | | | | | |
| EBITDA Margin (%) | | | | | 18.4 | 19.6 | | | | | | | | | | |
| |
| (1) Excludes bulk wine sales. | | | | | | | | | | | | | | | | |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 17 of 19 |
| | | | | | | | | | | | | | | | |
| Exhibit 4: Segment Information (Nine monthsended on September 30, 2013) | | | | | | | | | | | | | |
| | 1. Chile Business segment |
| YTD as of September | Beer Chile | Non-Alcoholic | Spirits | Total |
| (In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | Total % Organic % | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % Organic % | 2013 | 2012 | Total % | Organic % |
| Volumes(1) | 3,793 | 3,797 | (0.1) | (0.1) | 6,837 | 5,690 | 20.2 | 11.3 | 197 | 187 | 5.4 | 5.4 | 10,827 | 9,674 | 11.9 | 6.7 |
| Net Sales | 241,238 | 221,286 | 9.0 | 9.0 | 239,438 | 205,980 | 16.2 | 12.5 | 49,687 | 45,477 | 9.3 | 9.3 | 530,362 | 472,743 | 12.2 | 10.5 |
| Net Sales (CLP/HL) | 63,602 | 58,277 | 9.1 | 9.1 | 35,021 | 36,202 | (3.3) | 1.1 | 251,732 | 242,749 | 3.7 | 3.7 | 48,984 | 48,866 | 0.2 | 3.6 |
| Cost of sales | (98,325) | (94,213) | 4.4 | 4.4 | (110,730) | (100,107) | 10.6 | 8.7 | (30,856) | (27,418) | 12.5 | 12.5 | (239,911) | (221,738) | 8.2 | 7.3 |
| % of net sales | 40.8 | 42.6 | | | 46.2 | 48.6 | | | 62.1 | 60.3 | | | 45.2 | 46.9 | | |
| Gross profit | 142,913 | 127,073 | 12.5 | 12.5 | 128,707 | 105,873 | 21.6 | 16.1 | 18,832 | 18,059 | 4.3 | 4.3 | 290,452 | 251,005 | 15.7 | 13.4 |
| % of net sales | 59.2 | 57.4 | | | 53.8 | 51.4 | | | 37.9 | 39.7 | | | 54.8 | 53.1 | | |
| MSD&A | (82,915) | (73,491) | 12.8 | 12.8 | (93,780) | (75,647) | 24.0 | 17.7 | (13,941) | (13,144) | 6.1 | 6.1 | (190,636) | (162,283) | 17.5 | 14.6 |
| % of net sales | 34.4 | 33.2 | | | 39.2 | 36.7 | | | 28.1 | 28.9 | | | 35.9 | 34.3 | | |
| Other operating income/(expenses) | 76 | (2) | N/A | N/A | 356 | 276 | 29.1 | (19.2) | 50 | 296 | N/A | N/A | 483 | 570 | (15.3) | (38.7) |
| EBIT | 60,074 | 53,580 | 12.1 | 12.1 | 35,284 | 30,502 | 15.7 | 11.6 | 4,941 | 5,211 | (5.2) | (5.2) | 100,299 | 89,293 | 12.3 | 10.9 |
| EBIT Margin (%) | 24.9 | 24.2 | | | 14.7 | 14.8 | | | 9.9 | 11.5 | | | 18.9 | 18.9 | | |
| EBITDA | 74,985 | 67,759 | 10.7 | 10.7 | 46,357 | 39,111 | 18.5 | 13.3 | 6,488 | 6,753 | (3.9) | (3.9) | 127,831 | 113,623 | 12.5 | 10.7 |
| EBITDA Margin (%) | 31.1 | 30.6 | | | 19.4 | 19.0 | | | 13.1 | 14.8 | | | 24.1 | 24.0 | | |
| |
| | 2. Río de la Plata Business segment | 3. Wine Business segment |
| YTD as of September | CCU Argentina | Uruguay | Total |
| (In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | Total % Organic % | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % Organic % | 2013 | 2012 | Total % | Organic % |
| Volumes(1) | 2,975 | 3,025 | (1.7) | (1.7) | 420 | - | | | 3,395 | 3,025 | 12.2 | (1.7) | 971 | 967 | 0.3 | 0.3 |
| Net Sales | 175,139 | 159,945 | 9.5 | 9.5 | 6,078 | - | | | 181,217 | 159,945 | 13.3 | 9.5 | 113,808 | 111,751 | 1.8 | 1.8 |
| Net Sales (CLP/HL) | 58,875 | 52,875 | 11.3 | 11.3 | 14,460 | - | | | 53,376 | 52,875 | 0.9 | 11.3 | 117,242 | 115,509 | 1.5 | 1.5 |
| Cost of sales | (70,643) | (63,772) | 10.8 | 10.8 | (5,172) | - | | | (75,815) | (63,772) | 18.9 | 10.8 | (71,280) | (72,683) | (1.9) | (1.9) |
| % of net sales | 40.3 | 39.9 | | | 85.1 | - | | | 41.8 | 39.9 | | | 62.6 | 65.0 | | |
| Gross profit | 104,496 | 96,173 | 8.7 | 8.7 | 906 | | | | 105,402 | 96,173 | 9.6 | 8.7 | 42,528 | 39,068 | 8.9 | 8.9 |
| % of net sales | 59.7 | 60.1 | | | 14.9 | - | | | 58.2 | 60.1 | | | 37.4 | 35.0 | | |
| MSD&A | (98,428) | (85,022) | 15.8 | 15.8 | (1,930) | - | | | (100,358) | (85,022) | 18.0 | 15.8 | (33,451) | (31,407) | 6.5 | 6.5 |
| % of net sales | 56.2 | 53.2 | | | 31.7 | - | | | 55.4 | 53.2 | | | 29.4 | 28.1 | | |
| Other operating income/(expenses) | 677 | 79 | N/A | N/A | (17) | - | | | 660 | 79 | N/A | N/A | (16) | 305 | N/A | N/A |
| EBIT | 6,745 | 11,230 | (39.9) | (39.9) | (1,041) | - | | | 5,704 | 11,230 | (49.2) | (39.9) | 9,061 | 7,965 | 13.8 | 13.8 |
| EBIT Margin (%) | 3.9 | 7.0 | | | (17.1) | - | | | 3.1 | 7.0 | | | 8.0 | 7.1 | | |
| EBITDA | 14,200 | 16,225 | (12.5) | (12.5) | (823) | - | | | 13,376 | 16,225 | (17.6) | (12.5) | 14,189 | 12,927 | 9.8 | 9.8 |
| EBITDA Margin (%) | 8.1 | 10.1 | | | (13.5) | - | | | 7.4 | 10.1 | | | 12.5 | 11.6 | | |
| |
| | 4. Other/eliminations | Total | | | | | | | | |
| YTD as of September | | | | | | | | |
| (In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % | | | | | | | | |
| Volumes(1) | - | - | 0.0 | 0.0 | 15,193 | 13,667 | 11.2 | 4.4 | | | | | | | | |
| Net Sales | (1,127) | (965) | (16.8) | (16.8) | 824,261 | 743,474 | 10.9 | 9.0 | | | | | | | | |
| Net Sales (CLP/HL) | - | - | 0.0 | 0.0 | 54,253 | 54,401 | (0.3) | 4.4 | | | | | | | | |
| Cost of sales | 8,084 | 6,864 | 17.8 | 17.8 | (378,922) | (351,329) | 7.9 | 5.8 | | | | | | | | |
| % of net sales | | | | | 46.0 | 47.3 | | | | | | | | | | |
| Gross profit | 6,957 | 5,899 | 17.9 | 17.9 | 445,339 | 392,145 | 13.6 | 11.8 | | | | | | | | |
| % of net sales | | | | | 54.0 | 52.7 | | | | | | | | | | |
| MSD&A | (7,632) | (4,578) | 66.7 | 66.7 | (332,077) | (283,290) | 17.2 | 14.9 | | | | | | | | |
| % of net sales | | | | | 40.3 | 38.1 | | | | | | | | | | |
| Other operating income/(expenses) | 157 | 1,495 | (89.5) | (89.5) | 1,284 | 2,448 | (47.6) | (52.3) | | | | | | | | |
| EBIT | (518) | 2,815 | N/A | N/A | 114,546 | 111,303 | 2.9 | 2.7 | | | | | | | | |
| EBIT Margin (%) | | | | | 13.9 | 15.0 | | | | | | | | | | |
| EBITDA | 6,547 | 8,709 | (24.8) | (24.8) | 161,943 | 151,485 | 6.9 | 6.1 | | | | | | | | |
| EBITDA Margin (%) | | | | | 19.6 | 20.4 | | | | | | | | | | |
| |
| (1) Excludes bulk wine sales. | | | | | | | | | | | | | | | | |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 18 of 19 |
PRESS RELEASE
| Exhibit5: Balance Sheet | | | | | |
| | September 30 | December 31 | September 30 | December 31 | Total
Change% |
| | 2013 | 2012 | 2013 | 2012 |
| | (CLP million) | (US$ million)(1) |
| ASSETS | | | | | |
| Cash and cash equivalents | 215.999 | 102.337 | 428 | 203 | 111,1 |
| Other current assets | 378.362 | 393.551 | 750 | 781 | (3,9) |
| Total current assets | 594.361 | 495.888 | 1.179 | 984 | 19,9 |
| |
| PP&E (net) | 666.540 | 612.329 | 1.322 | 1.214 | 8,9 |
| Other non current assets | 215.200 | 218.231 | 427 | 433 | (1,4) |
| Total non current assets | 881.740 | 830.560 | 1.749 | 1.647 | 6,2 |
| Total assets | 1.476.101 | 1.326.448 | 2.928 | 2.631 | 11,3 |
| |
| LIABILITIES | | | | | |
| Short term financial debt | 126.989 | 54.874 | 252 | 109 | 131,4 |
| Other liabilities | 227.984 | 259.656 | 452 | 515 | (12,2) |
| Total current liabilities | 354.973 | 314.530 | 704 | 624 | 12,9 |
| |
| Long term financial debt | 144.145 | 209.123 | 286 | 415 | (31,1) |
| Other liabilities | 89.366 | 92.277 | 177 | 183 | (3,2) |
| Total non current liabilities | 233.511 | 301.400 | 463 | 598 | (22,5) |
| Total Liabilities | 588.484 | 615.930 | 1.167 | 1.222 | (4,5) |
| |
| EQUITY | | | | | |
| Paid-in capital | 382.942 | 231.020 | 760 | 458 | 65,8 |
| Other reserves | (57.627) | (48.146) | (114) | (95) | 0,0 |
| Retained earnings | 468.718 | 430.346 | 930 | 854 | 8,9 |
| | 794.033 | 613.220 | 1.575 | 1.216 | 29,5 |
| Net equity attributable to parent company shareholders | | | | | |
| Minority interest | 93.584 | 97.299 | 186 | 193 | (3,8) |
| Total equity | 887.617 | 710.518 | 1.760 | 1.409 | 24,9 |
| Total equity and liabilities | 1.476.101 | 1.326.448 | 2.928 | 2.631 | 11,3 |
| |
| OTHER FINANCIAL INFORMATION | | | | | |
| |
| Total financial debt | 271.134 | 263.997 | 538 | 524 | 2,7% |
| |
| Net Financial debt | 55.135 | 161.660 | 109 | 321 | -65,9% |
| |
| Liquidity ratio | 1,67 | 1,58 | | | |
| Financial Debt / Capitalization | 0,23 | 0,27 | | | |
| Net Financial debt / EBITDA | 0,22 | 0,69 | | | |
| (1) Exchange rate as of September 30, 2013: US$1.00 = CLP 504.2 | | | | | |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile
Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 19 of 19 |
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: November 6, 2013
