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 FOURTH QUARTER 2013 RESULTS 1;2;3;4
Santiago, Chile, February 4 th ,2014 – CCUannounced today its consolidated financial resultsfor the fourth quarterended December 31st ,2013:
- Consolidated volumes increased 8.3% (6.0% organic). The Chile business segment contributed withan increaseof 13.7% (10.3%organic).The Río de la Platabusiness segment showed a 2.9% decrease (same figures for organic growth) and the Winebusiness segment decreased 1.6% thisquarter (same figuresfor organicgrowth).
- Total Net sales increased 12.3%. Organically it grew 11.7% as a consequence of 6.0% higher consolidated volumes coupled with 5.4%higher average prices.
- Gross profit increased 13.3%. Organically it grew 12.6% as a combination of higher Net sales and a decrease in Cost of sales of 46 bpsas a percentage of Net sales.
- Normalized EBITDA increased 10.8%. On organic basis, Normalized EBITDA grew 10.2%, driven by Río de la Plata and Wine business segments.
- Normalized Earnings per share 5 decreased 7.3% due to share dilution. Nevertheless, Netincome increased this quarter, mainly due to higher Normalized EBIT and lower Non-operating losses, partially compensated by higher Income taxes. On organicbasis, Normalized Earningsper sharedecreased 7.6%.
- Full Year 2013 closed with significant growth in its key indicators: Net sales of CLP 1,197,227 million with a 11.3% growth; Volumes of 21,914 ThHL with a 10.1% growth; EBITDA of CLP 252,512 million with 7.0% growth. Regarding Net income we reached 123,036 million with a 7.5%growth.
| | | | |
| Key figures | | | Total | Organic |
| (In ThHL or CLP million unless stated otherwise) | Q4'13 | Q4'12 | change % | change % |
| Volumes | 6,726 | 6,212 | 8.3% | 6.0% |
| Net sales | 372,966 | 332,211 | 12.3% | 11.7% |
| Gross profit | 215,191 | 189,886 | 13.3% | 12.6% |
| Normalized EBIT | 76,710 | 69,885 | 9.8% | 9.4% |
| Normalized EBITDA | 93,559 | 84,464 | 10.8% | 10.2% |
| Net income | 46,292 | 45,509 | 1.7% | 1.3% |
| Normalized Net income | 48,606 | 45,509 | 6.8% | 6.4% |
| Normalized Earnings per share | 132.5 | 142.9 | (7.3)% | (7.6)% |
| Key figures | | | Total | Organic |
| (In ThHL or CLP million unless stated otherwise) | YTD '13 | YTD '12 | change % | change % |
| Volumes | 21,914 | 19,909 | 10.1% | 5.0% |
| Net sales | 1,197,227 | 1,075,690 | 11.3% | 9.9% |
| Gross profit | 660,530 | 582,603 | 13.4% | 12.0% |
| Normalized EBIT | 191,255 | 181,188 | 5.6% | 5.2% |
| Normalized EBITDA | 255,502 | 235,948 | 8.3% | 7.5% |
| Net income | 123,036 | 114,433 | 7.5% | 6.6% |
| Normalized Net income | 125,350 | 114,433 | 9.5% | 8.7% |
| Normalized Earnings per share | 377.8 | 359.3 | 5.1% | 4.3% |
1For an explanation of the terms used please refer to the Glossary in Further Information and Exhibits. For organic growth details please refer to page 8.Figuresin tablesandexhibits have beenroundedoffandmaynot addexactly the total shown.
2 Allreferencesin thisPress Release shall bedeemed torefer to Q4’13figures compared to Q4’12 figures, unlessasotherwiseindicated.
3 Fora comparablebasis,Volumes figures consider energydrinks sales from CCUArgentinainboth periods shown.
4 Paraguay’s December operationisonly shownatEBIT,EBITDA and Netincome Level.Volumesarenotconsidered.
5 Considersperiodweightedaverage sharesaccording to Capital increaseasof December 31 th ,2013.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 1 of 20 |
We are pleased with CCU’s fourth quarter 2013 overall performance, where the Normalized EBITDA grew 10.8%. On organic basis, Normalized EBITDA increased 10.2% driven by Ríode la Plata and Wine business segments. Normalized EBITDA excludes the effect of CLP 2,989 million as Exceptional items associated with a Restructuringprocess of theorganizationwhich implied the early retirement of managers replaced internally, promotions and the soleand exceptionalpayments of incentivesto the leaving and remaining personnel.
Chilebusiness segment Normalized EBITDA decreased 0.1% mainlyexplained byhigherdistribution cost due to higher real salaries caused by lowunemployment as ithasbeenhappening throughout 2013. As a consequence, the organic Normalized EBITDA in Chiledecreasedby0.8%. Nevertheless, thereare threeelements thatarenot consideredas Exceptional items, but they aredue to special circumstanceswhich if adjusted would result inan organic Normalized EBITDA increase of 9.4%. These circumstances are: strongdevaluation of the Chilean peso in Q4’13, finished products inventorydepletion in Beer Chileduring Q4’13 and the sale of a site in Q4’12. All of these effects are explained in more detailon page 5 of this Press Release.
Río de la Plata business segment. Normalized EBITDA, measured in USD terms, increased 11.5% organically inCCU Argentina. Despite lower Net sales which decreased by 1.6%, Grossprofit increased by 1.2% this quarter in CCU Argentina. Price adjustments coupled with both lower costs of sales and expenses have allowed us to compensate inflationarypressures, consequently, Normalized EBITDAmargin increased 278 bpsorganically.
Wine business segment showed a significant 33.0% Normalized EBITDA increase. Excluding the impact of a higher exchange rate, representing CLP 1,395million, the Normalized EBITDAgrew3.2%. This growth is mainly explained by higher average prices and lower wine cost,although facing distribution expensespressures in line with the rest of the segments.
Following our strategic plan for organicand non-organicgrowth, we were able to execute transactions and agreements. During October, our subsidiary ECUSA executed a series of contracts and agreements with PepsiCo Inc. that will allow us to expand our current relationship in the non-alcoholic beverages, as wellas extending itslong term duration. Furthermore, in December, we announced the acquisition of 50.005% of Bebidas del Paraguay S.A. and the 49.995% of Distribuidora del Paraguay S.A.,both companiesassociated with the Cartes Group. These transactionsallowed us to enter into the soft drinks,water and nectar industries and the beer distribution in Paraguay.
Aswe have been mentioning in 2013 Press Releases -in a future on a date to be defined-, CCU will report its Consolidated Results in the following three business segments: Chile 6,Ríode la Plata 7 and Wine 8.This is consistent with the way the Company is managed and responds to how the results are reported in CCU. The time has come, and this change willbe implemented beginning with the Q1’14 results.
We trust that our operational excellence, consistent branding and constant innovation efforts,as wellas inorganic growth opportunities will keep CCU on the path of healthy anddynamicdevelopment.
6Chile includes Beer Chile, Non Alcoholic beverages and Spirits.
7Rio de la Plata includes CCU Argentina, Uruguay and, since December 2013, Paraguay.
8Wine includes Domestic, Exports from Chile and Argentina.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 2 of 20 |
CONSOLIDATEDINCOMESTATEMENTHIGHLIGHTS(Exhibits1&2) |
NETSALES
Q4’13 Increased 12.3% to CLP 372,966 million mainly as a result of 8.3% higher volumes. Allbusiness segments contributed to this growth in Net sales as follows: Chile with 15.2% increase, Río de la Plata grew 8.3% and Wine with 1.7% increase.
On organic basis, Total Net sales increased 11.7% as a result of 6.0% higher volumes coupled with 5.4% increase in average prices. The Chile business segment contributed to this growth with 14.3% organic Net sales increase, Río de la Plata business segment with 8.3% growth and Wine business segment with 1.7% increase.
2013 Accumulated Total Net sales increased 11.3% to CLP 1,197,227 million mainlyas a result of 10.1% higher volumes. On organic basis, accumulated Total Netsales increased 9.9% to CLP 1,182,312 million as a result of 5.0% highervolumes coupledwith 4.7% increase in average prices.
Netsales by segment
| | Net sales (million CLP) |
| | | | Total | Organic |
Q4'13 | Mix | Q4'12 | Mix | Change% | Change% |
1. Chile Business segment | 234,833 | 63.0% | 203,781 | 61.3% | 15.2 | 14.3 |
Beer Chile | 111,806 | 30.0% | 99,558 | 30.0% | 12.3 | 12.3 |
Non-alcoholic beverages | 102,795 | 27.6% | 86,153 | 25.9% | 19.3 | 17.2 |
Spirits | 20,231 | 5.4% | 18,07 | 5.4% | 12.0 | 12.0 |
2. Rio de la Plata Business segment | 101,218 | 27.1% | 93,459 | 28.1% | 8.3 | 8.3 |
CCU Argentina | 97,36 | 26.1% | 91,051 | 27.4% | 6.9 | 6.9 |
Uruguay | 3,858 | 1.0% | 2,408 | 0.7% | 60.2 | 60.2 |
3. Wine Business segment | 38,447 | 10.3% | 37,806 | 11.4% | 1.7 | 1.7 |
4. Other/Eliminations | -1,533 | (0.4)% | -2,835 | (0.9)% | N/A | N/A |
TOTAL | 372,966 | 100.0% | 332,211 | 100.0% | 12.3 | 11.7 |
| | Net sales (million CLP) |
| | | | Total | Organic |
YTD '13 | Mix | YTD '12 | Mix | Change% | Change% |
1. Chile Business segment | 765,196 | 63.9% | 676,529 | 62.9% | 13.1 | 11.7 |
Beer Chile | 353,044 | 29.5% | 320,844 | 29.8% | 10.0 | 10.0 |
Non-alcoholic beverages | 342,233 | 28.6% | 292,133 | 27.2% | 17.1 | 13.9 |
Spirits | 69,919 | 5.8% | 63,552 | 5.9% | 10.0 | 10.0 |
2. Rio de la Plata Business segment | 282,435 | 23.6% | 253,826 | 23.6% | 11.3 | 9.2 |
CCU Argentina | 272,499 | 22.8% | 250,996 | 23.3% | 8.6 | 8.6 |
Uruguay | 9,936 | 0.8% | 2,830 | 0.3% | 251.1 | 64.7 |
3. Wine Business segment | 152,255 | 12.7% | 149,557 | 13.9% | 1.8 | 1.8 |
4. Other/Eliminations | (2,660) | (0.2)% | (4,223) | (0.4)% | 37.0 | 37.0 |
TOTAL | 1,197,227 | 100.0% | 1,075,690 | 100.0% | 11.3 | 9.9 |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 3 of 20 |
GROSSPROFIT
Q4’13 Increased 13.3% to CLP 215,191 million as a result of 12.3% higher Net sales. Costof sales,as apercentageof Net sales, decreased from 42.8% to42.3%. As a consequence, Gross profit, as a percentage of Net sales, increased from 57.2% to 57.7%.
Onorganic basis, Gross profit increased 12.6% to CLP 213,823 million as a result of 11.7% higher Net sales. As a consequence, Gross profit, as a percentage of Net sales decreased from 57.2% to 57.6%.
2013 Increased 13.4% to CLP 660,530 million and, as a percentage of Net sales, the consolidated Gross profit increased from 54.2% to 55.2%. On organic basis, Grossprofit increased 12.0% to CLP 652.490 million and as a percentageof Net sales increased from 54.2% to 55.2%.
Normalized EBIT
Q4’13 Increased 9.8% to CLP 76,710 million, mostlyexplained by 13.3% higher Gross profit,partially compensated by 16.5% higher MSD&A expenses, which increased to CLP 141,446 million. MSD&A expenses, as a percentage of Net sales, increased from 36.5% to 37.9%, mainly as a result of higher distribution expenses due to higher real salaries caused by low unemployment in Chile and higher inflation in Argentina.
Onorganic basis, Normalized EBIT increased 9.4% to CLP 76,455 million,mostlyexplained by 12.6% higher Gross profit, partially compensated by 15.6% higherMSD&A expenses, which increased to CLP 140,309 million.
2013 Increased 5.6% to CLP 191,255 million and its margin decreased from 16.8% to 16.0%. On organic basis, Normalized EBIT increased 5.2% to CLP 190,622 million and its margin decreased from 16.8% to 16.1%, mostly explained by 12.0% higher Gross profit, partially compensated by 15.0% higher MSD&A expenses, which increased to CLP 465,976 million. MSD&A expenses, as a percentage of Net sales, increased from 37.7% to 39.4%, 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 20 |
Normalized EBIT and Normalized EBIT margin by segment
| | Normalized EBIT (million CLP) | Normalized EBIT margin |
| | | | Total | Organic | | | Total | Organic |
Q4'13 | Mix | Q4'12 | Mix | Change% | Change% | Q4'13 | Q4'12 | Change(bps) | Change(bps) |
1. Chile Business segment | 47,849 | 62.4% | 48,928 | 70.0% | (2.2) | (2.7) | 20.4% | 24.0% | (363) | (358) |
Beer Chile | 29,380 | 38.3% | 31,522 | 45.1% | (6.8) | (6.8) | 26.3% | 31.7% | (538) | (538) |
Non-alcoholic beverages | 16,925 | 22.1% | 14,844 | 21.2% | 14.0 | 12.3 | 16.5% | 17.2% | (77) | (72) |
Spirits | 1,544 | 2.0% | 2,562 | 3.7% | (39.7) | (39.7) | 7.6% | 14.2% | (655) | (655) |
2. Rio de la Plata Business segment | 21,532 | 28.1 % | 16,913 | 24.2 % | 27.3 | 27.3 | 21.3 % | 18.1 % | 318 | 318 |
CCU Argentina | 21,667 | 28.2 % | 16,952 | 24.3 % | 27.8 | 27.8 | 22.3 % | 18.6 % | 364 | 364 |
Uruguay | (134) | (0.2)% | (39) | (0.1)% | (247.0) | (247.0) | (3.5)% | (1.6)% | (187) | (187) |
3. Wine Business segment | 4,128 | 5.4% | 3,088 | 4.4% | 33.7 | 33.7 | 10.7% | 8.2% | 257 | 257 |
4. Other/Eliminations | 3,200 | 4.2 % | 956 | 1.4 % | N/A | N/A | - | - | - | - |
TOTAL | 76,710 | 100.0% | 69,885 | 100.0% | 9.8 | 9.4 | 20.6% | 21.0% | (47) | (44) |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | Normalized EBIT (million CLP) | Normalized EBIT margin |
YTD '13 | | YTD '12 | | Total | Organic | YTD '13 | YTD '12 | Total | Organic |
Mix | Mix | Change% | Change% | Change(bps) | Change(bps) |
1. Chile Business segment | 148,148 | 77.5% | 138,221 | 76.3% | 7.2 | 6.1 | 19.4% | 20.4% | (107) | (112) |
Beer Chile | 89,454 | 46.8% | 85,102 | 47.0% | 5.1 | 5.1 | 25.3% | 26.5% | (119) | (119) |
Non-alcoholic beverages | 52,209 | 27.3% | 45,346 | 25.0% | 15.1 | 11.8 | 15.3% | 15.5% | (27) | (27) |
Spirits | 6,485 | 3.4% | 7,772 | 4.3% | (16.6) | (16.6) | 9.3% | 12.2% | (295) | (295) |
2. Rio de la Plata Business segment | 27,237 | 14.2 % | 28,057 | 15.5 % | (2.9) | (1.8) | 9.6 % | 11.1 % | (141) | (11) |
CCU Argentina | 28,411 | 14.9 % | 28,182 | 15.6 % | 0.8 | 0.8 | 10.4 % | 11.2 % | (80) | (81) |
Uruguay | (1,175) | (0.6)% | (125) | (0.1)% | 841.9 | N/A | (11.8)% | (4.4)% | (742) | (72) |
3. Wine Business segment | 13,189 | 6.9% | 11,053 | 6.1% | 19.3 | 19.3 | 8.7% | 7.4% | 127 | 109 |
4. Other/Eliminations | 2,682 | 1.4 % | 3,857 | 2.1 % | (30.5) | (30.5) | - | - | - | - |
TOTAL | 191,255 | 100.0% | 181,188 | 100.0% | 5.6 | 5.2 | 16.0% | 16.8% | (87) | (72) |
Normalized EBITDA
Q4’13 Increased 10.8% to CLP 93,559 million and the Normalized EBITDA margin decreased from 25.4% to 25.1%. On organic basis, Normalized EBITDA increased 10.2% to CLP 93,103 million and the Normalized EBITDA margin also decreased from 25.4% to 25.1%.
Chile business segment Normalized EBITDA decreased 0.1% mainly explained by higher distribution cost due to higher real salaries caused by low unemployment as it has been happening throughout 2013. As a consequence, the organic Normalized EBITDA in Chile decreased by 0.8%. There are three elements that are not considered as Exceptional items, but they are due to special circumstances which if adjusted would result in an organic Normalized EBITDA increase of 9.4%. These circumstances are: strong devaluation of the Chilean peso in Q4’13 by 8.1%, with a total negative effect of CLP 1,902 million for the Chile business segment; finished products inventory depletion mainly in Beer Chile during Q4’13 with a total negative effect of CLP 2,538 million and the sale of a site in Q4’12 by Compañía Pisquera de Chile for CLP 1,364 million at EBITDA level.
Wine business segment showed a significant 33.0% Normalized EBITDA increase. Excluding the impact of a higher exchange rate, representing CLP 1,395 million, the Normalized EBITDA grew 3.2%. This growth is mainly explained by higher average prices and lower wine cost, although facing distribution expenses pressures in line with the rest of the segments.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 5 of 20 |
2013 Increased 8.3% to CLP 255,502 million. Normalized EBITDA margin decreased from 21.9% to 21.3%. On organic basis, Normalized EBITDA increased 7.5% to CLP 253,662 million and its margin decreased from 21.9% to 21.5%.
Normalized EBITDA and Normalized EBITDAmargin by segment
| | Normalized EBITDA (million CLP) | Normalized EBITDA margin |
| | | | Total | Organic | | | Total | Organic |
Q4'13 | Mix | Q4'12 | Mix | Change% | Change% | Q4'13 | Q4'12 | Change(bps) | Change(bps) |
1. Chile Business segment | 57,851 | 61.8% | 57,882 | 68.5% | (0.1) | (0.8) | 24.6% | 28.4% | (377) | (377) |
Beer Chile | 34,649 | 37.0% | 36,599 | 43.3% | (5.3) | (5.3) | 31.0% | 36.8% | (577) | (577) |
Non-alcoholic beverages | 21,124 | 22.6% | 18,201 | 21.5% | 16.1 | 13.6 | 20.5% | 21.1% | (58) | (65) |
Spirits | 2,079 | 2.2% | 3,082 | 3.6% | (32.6) | (32.6) | 10.3% | 17.1% | (678) | (678) |
2. Rio de la Plata Business segment | 23,817 | 25.5 % | 18,918 | 22.4 % | 25.9 | 25.9 | 23.5 % | 20.2 % | 329 | 329 |
CCU Argentina | 23,830 | 25.5 % | 18,896 | 22.4 % | 26.1 | 26.1 | 24.5 % | 20.8 % | 372 | 372 |
Uruguay | (13) | (0.0)% | 22 | 0.0% | (158.0) | (158.0) | (0.3)% | 0.9 % | (126) | (126) |
3. Wine Business segment | 6,239 | 6.7% | 4,693 | 5.6% | 33.0 | 33.0 | 16.2% | 12.4% | 382 | 382 |
4. Other/Eliminations | 5,651 | 6.0 % | 2,970 | 3.5 % | 90.2 | 90.2 | - | - | - | - |
TOTAL | 93,559 | 100.0% | 84,464 | 100.0% | 10.8 | 10.2 | 25.1% | 25.4% | (34) | (34) |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | Normalized EBITDA (million CLP) | Normalized EBITDA margin |
| | | | Total | Organic | | | Total | Organic |
YTD '13 | Mix | YTD '12 | Mix | Change% | Change% | YTD '13 | YTD '12 | Change(bps) | Change(bps) |
1. Chile Business segment | 185,682 | 72.7% | 171,506 | 72.7% | 8.3 | 6.8 | 24.3% | 25.4% | (108) | (111) |
Beer Chile | 109,634 | 42.9% | 104,359 | 44.2% | 5.1 | 5.1 | 31.1% | 32.5% | (147) | (147) |
Non-alcoholic beverages | 67,481 | 26.4% | 57,312 | 24.3% | 17.7 | 13.4 | 19.7% | 19.6% | 10 | (9) |
Spirits | 8,567 | 3.4% | 9,836 | 4.2% | (12.9) | (12.9) | 12.3% | 15.5% | (322) | (322) |
2. Rio de la Plata Business segment | 37,194 | 14.6 % | 35,080 | 14.9 % | 6.0 | 8.0 | 13.2 % | 13.8 % | (65) | (14) |
CCU Argentina | 38,030 | 14.9 % | 35,121 | 14.9 % | 8.3 | 8.3 | 14.0 % | 14.0 % | (4) | (4) |
Uruguay | (836) | (0.3)% | (41) | 0.0% | 1920.7 | 286.6 | (8.4)% | (1.5)% | (695) | (48) |
3. Wine Business segment | 20,428 | 8.0% | 17,619 | 7.5% | 15.9 | 15.9 | 13.4% | 11.8% | 164 | 164 |
4. Other/Eliminations | 12,198 | 4.8 % | 11,743 | 5.0 % | 3.9 | 3.9 | - | - | - | - |
TOTAL | 255,502 | 100.0% | 235,948 | 100.0% | 8.3 | 7.5 | 21.3% | 21.9% | (59) | (48) |
NON-OPERATING RESULT
Q4’13 Increased CLP 1,182 million from a loss of CLP 7,895 million to a loss of CLP 6,713million mainly explained by:
· Net financial expenses which decreased CLP 1,039 million from a loss of CLP 3,993 million to a lossof CLP 2,953 million,due tohigherfinancial incomesfrom the current Cash and Cash equivalent.
· Results as per adjustment units which increased CLP 1,948 million from a lossof CLP2,699 million to a loss of CLP 751 million, mainly due to lower amount of UF linked debt in Q4’13.
· Equity and income of JV’s which increased CLP 190 million from a loss of CLP 42 million to a gain of CLP 148 million mostly explained by better results in Foods Compañía de Alimentos CCU S.A. and CerveceraAustral S.A. Partially compensated by:
· Foreign currency exchange differences and Other gain/ loses whichdecreased CLP 1,995 million from a loss of CLP 1,161 million to a loss of CLP 3,156 million mainly due to foreign currency exchange differences of royalty debt and Capital Increase expenses.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 6 of 20 |
2013 Decreased CLP578 million from a lossof CLP 20,078 million to a lossof CLP 20,656million, due mostly to higher Net financial expenses and Foreign currencyexchangedifferences partially compensated by Other gains/(losses) and Results as peradjustment units.
INCOME TAXES
Q4’13 Increased CLP 4,289 million, mainlyexplained by the effect of foreign exchangefluctuations on taxes compensated by a reverse sign entry inOthergains/(losses) coupled with a higher Net income in Q4’13.
2013 Decreased CLP 2,428 million despite higher profits, mostly due to a one-time positiveeffect of CLP 2,510 million caused by ataxprovision reversal related to deposits for returnsof bottles and containers.
NORMALIZED NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF PARENT COMPANY
Q4’13 Increased 6.8% to CLP 48,606 million mostly explained by higher EBIT and lower Non-operating losses, partially compensated by higher Income taxes. On organicbasis, Net income increased 6.4%.
2013 Increased 9.5% to CLP 125,350 million mostly explained by higher EBIT and lower Income taxes, partially compensated by higher Non-operating losses. On organicbasis, Net income increased 8.7%.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 7 of 20 |
The following schedule details the effect of first time consolidation of theacquisitionofManantial S.A. in December 2012 and the Uruguayoperation in September 2012, in the fourthquarter and year todate as of December 2013. For better insight, Proforma refers to consolidated results as reported for the year, excluding those results that have less than oneyear in the operation.
Fourth Quarter | As reported | Manantial | Proforma(4) | Total(5) | Organic(6) | |
(In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | Effect(1) | 2013 | 2012 | Change% | Change% | |
Volumes | 6,726 | 6,212 | 140 | 6,586 | 6,212 | 8.3 | 6.0 | |
Net sales | 372,966 | 332,211 | 1,835 | 371,13 | 332,211 | 12.3 | 11.7 | |
Net sales (CLP/HL) | 55,447 | 53,481 | 13,085 | 56,349 | 53,481 | 3.7 | 5.4 | |
Cost of sales | -157,775 | -142,324 | -468 | -157,307 | -142,324 | 10.9 | 10.5 | |
% of net sales | 42.3 | 42.8 | 25.5 | 42.4 | 42.8 | | | |
Gross profit | 215,191 | 189,886 | 1,368 | 213,823 | 189,886 | 13.3 | 12.6 | |
% of net sales | 57.7 | 57.2 | 74.5 | 57.6 | 57.2 | | | |
MSD&A | -141,446 | -121,381 | -1,138 | -140,309 | -121,381 | 16.5 | 15.6 | |
% of net sales | 37.9 | 36.5 | 62.0 | 37.8 | 36.5 | | | |
Other operating income/(expenses) | 2,965 | 1,38 | 25 | 2,94 | 1,38 | 114.8 | 113.0 | |
Normalized EBIT | 76,71 | 69,885 | 255 | 76,455 | 69,885 | 9.8 | 9.4 | |
Normalized EBIT Margin (%) | 20.6 | 21.0 | 13.9 | 20.6 | 21.0 | |
Normalized EBITDA | 93,559 | 84,464 | 456 | 93,103 | 84,464 | 10.8 | 10.2 | |
Normalized EBITDA Margin (%) | 25.1 | 25.4 | 24.8 | 25.1 | 25.4 | |
| | | | | | | | | |
YTD as of December | As reported | Manantial | Uruguay | Proforma(4) | Total(5) | Organic(6) |
(In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | Effect(2) | Effect(3) | 2013 | 2012 | Change% | Change% |
Volumes | 21,914 | 19,909 | 647 | 371 | 20,896 | 19,909 | 10.1 | 5.0 |
Net sales | 1,197,227 | 1,075,690 | 9,639 | 5,275 | 1,182,312 | 1,075,690 | 11.3 | 9.9 |
Net sales (CLP/HL) | 54,632 | 54,03 | 137,681 | - | 56,579 | 54,03 | 1.1 | 4.7 |
Cost of sales | -536,697 | -493,087 | -2,431 | -4,444 | -529,822 | -493,087 | 8.8 | 7.4 |
% of net sales | 44.8 | 45.8 | 25.2 | 84.3 | 44.8 | 45.8 | | |
Gross profit | 660,53 | 582,603 | 7,209 | 831 | 652,49 | 582,603 | 13.4 | 12.0 |
% of net sales | 55.2 | 54.2 | 74.8 | 15.7 | 55.2 | 54.2 | | |
MSD&A | -473,524 | -405,243 | -5,874 | -1,673 | -465,976 | -405,243 | 16.8 | 15.0 |
% of net sales | 39.6 | 37.7 | 60.9 | 31.7 | 39.4 | 37.7 | | |
Other operating income/(expenses) | 4,249 | 3,828 | 158 | -17 | 4,107 | 3,828 | 11.0 | 7.3 |
Normalized EBIT | 191,255 | 181,188 | 1,493 | -860 | 190,622 | 181,188 | 5.6 | 5.2 |
Normalized EBIT Margin (%) | 16.0 | 16.8 | 15.5 | -16 | 16.1 | 16.8 |
Normalized EBITDA | 255,502 | 235,948 | 2,516 | -676 | 253,662 | 235,948 | 8.3 | 7.5 |
Normalized EBITDA Margin (%) | 21.3 | 21.9 | 26.1 | -13 | 21.5 | 21.9 |
(1) Effect of excluding Manantial's October and November 2013 results from the quarter As reported.(2) Effect of excluding Manantial's January to November 2013 results from the YTD As reported.
(3) Effect of excluding Uruguay's January to August 2013 results from the YTD As reported.(4) Excludes the mentioned effects for the period.
(5) Total Change refers to As reported figures variation.
(6) Organic Change refers to as Proforma figures variation.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 8 of 20 |
During 2013 CCU recorded at EBIT level the effect of CLP 2,989 million as Exceptional itemsassociated with a Restructuring process of the organization which implied the early retirementof managers replaced internally, promotions and the sole and exceptionalpayments of incentivesto the leaving and remaining personnel.
Thefollowing schedules show the EBIT/EBITDA, both after Exceptional items:
| | | | | | |
| EBITDA (million CLP) |
| | | | | | Total | Organic |
| | Q4'13 | Mix | Q4'12 | Mix | Change% | Change% |
| 1. Chile Business segment | 47,068 | 63.8% | 48,928 | 70.0% | (3.8) | (4.3) |
Beer Chile | 29,188 | 39.6% | 31,522 | 45.1% | (7.4) | (7.4) |
Non-alcoholic beverages | 16,398 | 22.2% | 14,844 | 21.2% | 10.5 | 8.8 |
Spirits | 1,482 | 2.0% | 2,562 | 3.7% | (42.2) | (42.2) |
2. Rio de la Plata Business segment | 20,989 | 28.5 % | 16,913 | 24.2 % | 24.1 | 24.1 |
CCU Argentina | 21,164 | 28.7 % | 16,952 | 24.3 % | 24.9 | 24.9 |
Uruguay | -175 | (0.2)% | -39 | - | 352.2 | 352.2 |
3. Wine Business segment | 3,853 | 5.2% | 3,088 | 4.4% | 24.8 | 24.8 |
4. Other/Eliminations | 1,81 | 2.5 % | 956 | 1.4 % | 89.3 | 89.3 |
TOTAL | 73,72 | 100.0% | 69,885 | 100.0% | 5.5 | 5.1 |
|
| EBITDA (million CLP) |
| | | | | | Total | Organic |
Q4'13 | Mix | Q4'12 | Mix | Change% | Change% |
1. Chile Business segment | 57,071 | 63.0% | 57,882 | 68.5% | (1.4) | (2.2) |
Beer Chile | 34,457 | 38.0% | 36,599 | 43.3% | (5.9) | (5.9) |
Non-alcoholic beverages | 20,597 | 22.7% | 18,201 | 21.5% | 13.2 | 10.7 |
Spirits | 2,017 | 2.2% | 3,082 | 3.6% | (34.6) | (34.6) |
2. Rio de la Plata Business segment | 23,274 | 25.7 % | 18,918 | 22.4 % | 25.9 | 27.1 |
CCU Argentina | 23,328 | 25.8 % | 18,896 | 22.4 % | 26.1 | 26.1 |
Uruguay | -54 | (0.1)% | 22 | - | (158.0) | (158.0) |
3. Wine Business segment | 5,963 | 6.6% | 4,693 | 5.6% | 27.1 | 27.1 |
4. Other/Eliminations | 4,261 | 4.7 % | 2,97 | 3.5 % | 43.5 | 43.5 |
TOTAL | 90,569 | 100.0% | 84,464 | 100.0% | 7.2 | 6.7 |
|
| EBIT (million CLP) |
| | | | | | Total | Organic |
YTD '13 | Mix | YTD '12 | Mix | Change% | Change% |
1. Chile Business segment | 147,367 | 78.3% | 138,221 | 76.3% | 6.6 | 5.5 |
Beer Chile | 89,262 | 47.4% | 85,102 | 47.0% | 4.9 | 4.9 |
Non-alcoholic beverages | 51,682 | 27.5% | 45,346 | 25.0% | 14.0 | 10.7 |
Spirits | 6,423 | 3.4% | 7,772 | 4.3% | (17.4) | (17.4) |
2. Rio de la Plata Business segment | 26,693 | 14.2 % | 28,057 | 15.5 % | (4.9) | (1.8) |
CCU Argentina | 27,909 | 14.8 % | 28,182 | 15.6 % | (1.0) | (1.0) |
Uruguay | -1,216 | (0.6)% | -125 | - | N/A | N/A |
3. Wine Business segment | 12,913 | 6.9% | 11,053 | 6.1% | 16.8 | 16.8 |
4. Other/Eliminations | 1,292 | 0.7 % | 3,857 | 2.1 % | (66.5) | (66.5) |
TOTAL | 188,266 | 100.0% | 181,188 | 100.0% | 3.9 | 3.6 |
|
| EBITDA (million CLP) |
| | | | | | Total | Organic |
YTD '13 | Mix | YTD '12 | Mix | Change% | Change% |
1. Chile Business segment | 184,902 | 73.2% | 171,506 | 72.7% | 7.8 | 6.3 |
Beer Chile | 109,442 | 43.3% | 104,359 | 44.2% | 4.9 | 4.9 |
Non-alcoholic beverages | 66,954 | 26.5% | 57,312 | 24.3% | 16.8 | 12.4 |
Spirits | 8,505 | 3.4% | 9,836 | 4.2% | (13.5) | (13.5) |
2. Rio de la Plata Business segment | 36,651 | 14.5 % | 35,08 | 14.9 % | 4.5 | 6.4 |
CCU Argentina | 37,528 | 14.9 % | 35,121 | 14.9 % | 6.9 | 6.9 |
Uruguay | -877 | (0.3)% | -41 | - | N/A | N/A |
3. Wine Business segment | 20,152 | 8.0% | 17,619 | 7.5% | 14.4 | 14.4 |
4. Other/Eliminations | 10,808 | 4.3 % | 11,743 | 5.0 % | (8.0) | (8.0) |
TOTAL | 252,512 | 100.0% | 235,948 | 100.0% | 7.0 | 6.2 |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 9 of 20 |
FOURTHQUARTERBUSINESSSEGMENTSHIGHLIGHTS(Exhibits3and4) |
1. CHILE
Netsales increased 15.2% to CLP 234,833 million as aresult of 13.7% higher sales volume coupled with 1.4% higher average prices. On organic basis, Net sales increased 14.3% as a result of 10.3%higher organic sales volume coupled with 3.7% increase in average prices.
Normalized EBIT decreased 2.2% to CLP 47,849 million due to 18.5% higher Costof salesand 22.8% higher MSD&A expenses partiallyoffset by 15.2% higher Net sales. Cost of sales,as a percentage of Net sales, increased from 42.8% to 44.0% explained by the devaluation of the Chilean peso and finished products inventorydepletion. MSD&A, as a percentage of Net sales, increased from 33.8% to 36.0%; mainly explained by higherdistribution costs. TheNormalized EBIT margin decreased from 24.0% to 20.4%. On organicbasis, Normalized EBITdecreased 2.7% due to 18.0% higher Cost of sales and 21.2% higherMSD&A expensespartially compensated by14.3% higher Net sales. The organic Normalized EBIT margindecreased from 24.0% to 20.43%.
Normalized EBITDA remained almost flat at CLP 57,851 million and the Normalized EBITDA margin decreased from 28.4% to 24.6%. On organic basis, Normalized EBITDA decreased 0.8% toCLP 57,396 million and the EBITDA margin decreased from 28.4% to 24.6%.
-BEER CHILE
Netsales increased 12.3% to CLP 111,806 million as aresult of 5.5% higheraverageprices coupled with 6.5% higher salesvolume.
Normalized EBIT decreased 6.8% toCLP 29,380 million due to 23.9% higher Cost of sales and 18.4% higher MSD&A expenses partiallyoffset by 12.3% higher Net sales. Costof sales, as a percentage of Net sales, increased from 36.5% to40.3% due to theeffect of finished products inventorydepletion, peso devaluation and the increased sales mix of one way packaging, partially compensated by lower energy costs.MSD&A, as a percentage of Net sales, increased from 32.2% to33.9% as distribution costs continue to raise due to increasing labor costs. The Normalized EBIT margindecreased from 31.7% to26.3%.
Normalized EBITDA decreased 5.3% to CLP 34,649 millionand the Normalized EBITDA margin decreased from 36.8% to 31.0%. Excluding the finished products inventory depletion and peso devaluation effects, Normalized EBITDA increased 5.9%
Comments The innovation plan for thisyearwas completed with the launch of a newvariant (Mango) of our Lemon Stones brand and the launch of a 710 ml��bottle for Royal Guard Black Label. Capacity increase as well as quality related investments forboth the Santiago and the Temuco brewerywere completed at the end of the quarter. Especiallyduring the month of December there were heavyprice promotionsby competition, to which we responded sporadically inorder to protect our desiredprice/margin equation.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 10 of 20 |
-NON-ALCOHOLIC BEVERAGES
Netsales increased 19.3% to CLP 102,795 million. On organicbasis, Net sales increased 17.2% as a result of 13.2% volume growth coupled with 3.5% increase inaverage prices. Outstanding organic volume growth was delivered in all categories:Nectar22.5%, Water 16.5% and Soft drinks 11.1%.
Normalized EBIT increased 14.0% to CLP 16,925 million due to 22.3% higher Grossprofit, as a consequence of higher Net sales, partially compensated by 15.8% increase inCost of sales. Nevertheless, Cost of sales, as a percentageof Net sales,decreasedfrom 45.6% to 44.3% mainly explained by lower sugar cost that offsets the currencydevaluation. The higher Gross profit was partially compensated by29.2% growth inMSD&A expenses explained by higherdistribution costs and marketingexpenses. Normalized EBIT margin decreased from 17.2% to 16.5%. On organicbasis, Normalized EBIT increased 12.3% due to 19.4% higher Gross profit partially compensated by 25.6% increase in MSD&A expenses. Consequently, organic Normalized EBIT margin also decreased from 17.2% to 16.5%.
Normalized EBITDA increased 16.1% to CLP 21,124 million and the Normalized EBITDA margin decreased from 21.1% to 20.5%. On organicbasis, Normalized EBITDA increased 13.6% to CLP 20,668 million and its margin decreased from 21.1% to20.5%. When excluding the peso devaluation effect, Normalized EBITDA increased 17.5%.
Comments Volumes continued the stronggrowth shown this year. During Q4’13,theCompany consolidated the leadership in the Non-carbonated beverages, Water, Nectar, Sports Drinks and Tea, showing extraordinary results in volume growth. InCarbonated soft drinks, although a category that is growing slower than the pointedonesabove, ourvolumes showed a strong growth.
- SPIRITS
Netsales increased 12.0% to CLP 20,231 million as a result of 12.8% higheraveragepricespartially compensated by 0.7% lowerSales volumes.
Normalized EBIT decreased 39.7% to CLP 1,544 million mainlydue to the effect of the sale of a site which generated a profit before taxes of CLP 1,364 million last year. Costof sales increased 10.8% mainly explained by higher costs of Pisco grapes as a resultof droughts in the production zones and an increase in third parties distillation costs.MSD&A expenses increased 12.1% to CLP 5,960 million mostly explained byhigherdistribution costs. Normalized EBIT margin decreased from 14.2% to7.6%.
Normalized EBITDA decreased 32.6% to CLP 2,079millionand the Normalized EBITDA margin decreased from 17.1% to 10.3%. Excluding the sale of the site, Normalized EBITDA would have increased 23.7%and Normalized EBITDAmarginwould have increased from 9.5% to 10.5% for Q4’13.
Comments Net sales increased mainlydue to higher prices, both in the pisco andwhisky category. Both categories had a good performance not only inthis quarter, butalso during the entire year, increasing annual volumes by5.2% and 29.4% respectively,offsetting rum, that had a contraction lead mainly by the mainstream segment.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 11 of 20 |
2. RIODE LAPLATA
Netsales, measured in Chilean pesos, increased 8.3% to CLP 101,218 million as a result of 11.5% increase in average prices, partially compensated by 2.9% lower sales volume.
Normalized EBIT, measured in Chilean pesos, increased 27.3% to CLP 21,532 million, as a result of 10.8% higher Gross profit, partially compensated by 4.2% increase in MSD&Aexpenses due to inflationarypressure, distribution costs, sellingand marketing expenses. Costof sales and MSD&A, as a percentage of Net sales, decreased from 38.4% to 37.0% and from 43.8% to42.1%, respectively. Normalized EBIT margin increased from 18.1% to21.3%.
Normalized EBITDA, measured in Chilean pesos, increased 25.9% to CLP 23,817 million and Normalized EBITDAmargin increased from 20.2% to23.5%.
- CCUARGENTINA
Netsales, measured in Chilean pesos, increased 6.9% to CLP 97,360 million as a result of 11.6% higher average prices partially compensated by4.2% lower Salesvolume mainly in Spirits (12.5%decrease) and Cider (12.4%decrease).
Normalized EBIT, measured in Chilean pesos, increased 27.8% to CLP 21,667million mainly due to 10.2% higher Gross profit partially compensated by 3.1% higherMSD&A expenses. MSD&A as a percentage of Net sales, decreased from 44.3% to 42.8%. Normalized EBIT margin increased from 18.6% to22.3%.
Normalized EBITDA increased 26.1% to CLP 23,830 million thisquarter and the Normalized EBITDA margin increased from 20.8% to 24.5%. Measured in USD terms, Normalized EBITDA increased from USD39.5 million to USD44.1 million.
Comments Despite Argentina facingan acceleration in the devaluation rate speciallyduring the last month of thisquarterfrom 5,81 AR$/USD to 6,55 AR$/USD (12.7%increase), which continued in January2014, CCU Argentina Normalized EBITDA increased 11.5% measured in USD terms. CCU Argentina beervolume performancewas in line with the domestic beer industryestimations (during Q4’13 CCU Argentinabeer volumes decreased 1.2%) while an increase in the industryaverage prices resulted in positive performance related to Net sales.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 12 of 20 |
- URUGUAY
The integration of the acquired operation in Uruguay hasbeen successfully completedand has taken its first steps into direct distribution. The companyhas also completed the integration of its beer portfolio and has introduced to the market the new image of the Nativa MineralWater brand.
Measured in Chilean pesos, Q4’13 results delivered CLP 3,858 million of Net salesand CLP 3,010 million of Cost of sales. The latter were affected by the rawmaterials costs which suffered the Uruguayan Peso depreciation. The Q4’13 volume sales totaled 195 thousand hectoliter and EBITDAamounted to a lossof CLP 54 million.
3. WINE
Netsales increased 1.7% to CLP 38,447 million due to 3.3% higheraverage price, partially compensated by1.6% lower sales volumes.
Normalized EBIT increased 33.7% to CLP 4,128 million mainlydue to higher average prices, the positive effect of the devaluation of the Chilean peso in the export side of the business andlower Cost of sales due to lower cost of wine. MSD&A expenses increased 6.9%mainly due tohigher marketing expenses and distribution costs. Normalized EBIT margin increased from 8.2% to10.7%.
Normalized EBITDA increased 33.0% to CLP 6,239 millionand the Normalized EBITDAmargin increased from 12.4% to 16.2%. Excluding the impact of a higherexchange rate, representing CLP1,395 million, the Normalized EBITDA grew 3.2%.
Comments The results of the fourth quarter are positively influenced by a good performance inthe Domestic and Argentinian markets, the depreciation of the Chilean peso both against the Dollarand the Euro, and lower costs of wine. VSPT Exportvolumesperformed flat during the last quarter, with good performance in China and Brazil.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 13 of 20 |
FURTHERINFORMATIONANDEXHIBITS |
ABOUT CCU
CCU is a diversified beverage company operating principally in Chile, Argentina, Uruguayand Paraguay. CCU is the largest Chilean brewer, the second-largest Chilean softdrinksproducerand the largest Chilean water and nectarproducer, the second-largest Argentine brewer, the third-largest Chilean domestic wine producer and the largest pisco distributor. It alsoparticipates in the HOD, rum and confectionery industries in Chile, in the beer, water and softdrinks industries in Uruguay, and in the soft drinks, waterand nectar industries and beerdistribution in Paraguay. The Companyhas licensing agreements with Heineken Brouwerijen B.V., Anheuser-Busch Incorporated, PepsiCo Inc., Schweppes HoldingsLimited, Guinness Brewing Worldwide Limited, Société des Produits Nestlé S.A., Pernod Ricard and Compañía PisqueraBauzá S.A.
CAUTIONARY STATEMENT
Statements made in thispress release that relate to CCU’s future performance orfinancial results are forward-looking statements, which involve known and unknown risks anduncertainties that could cause actual performance or results to materiallydiffer. We undertakeno obligation to update anyof 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 riskand uncertainties setforth in CCU’s annual report on Form 20-F filed with the US Securitiesand Exchange Commission and in the annualreport submitted to the SVSand available in ourweb page.
GLOSSARY
Business Segments
Business segments are reflected as follows: 1. Chile, which considers Beer Chile, Spirits and NonAlcoholic (including nectar, water, as purified mineral and HOD, and soft drinks whichalso incorporates tea, sports and energydrinks); 2. Río de la Plata,which includes CCU Argentina (including beer, cider, spirits, energy drinks and domestic wine from Tamarí sales), Uruguay’s Operation (soft drinks and mineral water) and, since December 2013, Paraguay’s Operation (soft drinks, water and nectar, and beer distribution); 3. Wine, (including Chiledomestic, Chile export and Argentina, exportand domestic, except sales from Tamarí), 4. The“Other/Eliminations” considers the non-allocated corporate overhead expenses and the resultof the logistics subsidiary. Corporate shared services, distribution and logisticsexpensesallocated to each business segment based on Service Level Agreements.
Cost ofsales
Formerly referred to as Cost of Goods Sold (COGS), Cost of sales includes direct costs andmanufacturing expenses.
Earnings PerShare (EPS)
Net profitdivided by the weighted average number ofsharesduring the year.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 14 of 20 |
EBIT
Stands for Earnings Before Interest and Taxes, and formanagement purposes it isdefined, asearnings before other gains (losses), net financial expenses, equityand income of jointventures, foreign currencyexchange differences, resultsasperadjustment unitsand income taxes. EBIT isequivalent to Operating Resultused in the 20-F Form.
EBITDA
EBITDA represents EBIT plus depreciation and amortization. EBITDA is not anaccountingmeasure under IFRS. When analyzing the operating performance, investors shoulduse 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 maynot 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 orexpenses which do not occur regularlyas part of the normal activities of the Company. Theyare presented separatelybecause theyare important for the understanding of the underlying sustainable performance of the Company due to their size or nature.
Marketing,Selling, Distributionand Administrative expenses (MSD&A)
MSD&A include marketing, selling, distribution and administrative expenses.
Net Debt
Totalfinancialdebt minus cash & cash equivalents.
Net Debt/ EBITDA
The ratio isbased on a twelve month rolling calculation for EBITDA.
Net Income
Net profitattributable to parent company shareholder as per IFRS.
Normalized
The term “normalized” refers to performance measures (EBITDA, EBIT, Net income, EPS)
beforeexceptional items.
Organic growth
Organic growth refers to growth excluding the effect of consolidation changes and the effect offirst time consolidation an acquisition.
UF
The UF is amonetary unit indexed to the CPI variation.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 15 of 20 |
| | | | | | |
| Exhibit 1: Income Statement (Fourth Quarter 2013) |
| Fourth Quarter | 2013 | 2012 | 2013 | 2012 | Total | Organic |
| | (CLP million) | (USD million)(1) | Change % | Change % |
| Net sales | 372,966 | 332,211 | 723 | 644 | 12.3 | 11.7 |
| Cost of sales | (157,775) | (142,324) | (306) | (276) | 10.9 | 10.5 |
| % of net sales | 42.3 | 42.8 | 42.3 | 42.8 | - | - |
| Gross profit | 215,191 | 189,886 | 417 | 368 | 13.3 | 12.6 |
| MSD&A | (141,446) | (121,381) | (274) | (235) | 16.5 | 15.6 |
| % of net sales | 37.9 | 36.5 | 37.9 | 36.5 | - | - |
| Other operating income/(expenses) | 2,965 | 1,380 | 6 | 3 | 114.8 | 113.0 |
| Normalized EBIT | 76,710 | 69,885 | 149 | 135 | 9.8 | 9.4 |
| % of net sales | 20.6 | 21.0 | 20.6 | 21.0 | - | - |
| Exceptional items | (2,989) | - | (6) | - | - | - |
| EBIT | 73,720 | 69,885 | 143 | 135 | 5.5 | 5.1 |
| % of net sales | 19.8 | 21.0 | 19.8 | 21 | - | - |
| Net financial expenses | (2,953) | (3,993) | (6) | (8) | (26.0) | (26.0) |
| Equity and income of JVs | 148 | (42) | 0 | (0) | 453.6 | 453.6 |
| Foreign currency exchange differences | (3,026) | (481) | (6) | (1) | (529.8) | (529.8) |
| Results as per adjustment units | (751) | (2,699) | (1) | (5) | 72.2 | 72.4 |
| Other gains/(losses) | (130) | (680) | (0) | (1) | 80.9 | 84.3 |
| Total Non-operating result | (6,713) | (7,895) | (13) | (15) | (15.0) | (15.3) |
| Income/(loss) before taxes | 67,008 | 61,990 | 130 | 120 | 8.1 | 7.7 |
| Income taxes | (16,886) | (12,597) | (33) | (24) | 34.0 | 33.7 |
| Net income for the year | 50,121 | 49,393 | 97 | 96 | 1.5 | 1.1 |
| |
| Normalized net income attributable to: | | | | | | |
| The equity holders of the parent | 48,606 | 45,509 | 94 | 88 | 6.8 | 6.4 |
| |
| Net income attributable to: | | | | | | |
| The equity holders of the parent | 46,292 | 45,509 | 90 | 88 | 1.7 | 1.3 |
| Non-controlling interest | 3,829 | 3,884 | 7 | 8 | (1.4) | (1.4) |
| |
| Normalized EBITDA | 93,559 | 84,464 | 181 | 164 | 10.8 | 10.2 |
| % of net sales | 25.1 | 25.4 | 25.1 | 25.4 | - | - |
| EBITDA | 90,569 | 84,464 | 176 | 164 | 7.2 | 6.7 |
| % of net sales | 24.3 | 25.4 | 24.3 | 25.4 | - | - |
| |
| OTHER INFORMATION | | | | | | |
Number of shares(2)366,821,989 | 366,821,989 | 318,502,872 | 366,821,989 | 318,502,872 | | |
| Shares per ADR | 2 | 2 | 2 | 2 | | |
| |
| Normalized Earnings per share | 132.51 | 142.88 | 0.26 | 0.28 | (7.3) | (7.6) |
| Earnings per share | 126.20 | 142.88 | 0.24 | 0.28 | (11.7) | (7.6) |
| Normalized Earnings per ADR | 265.01 | 285.77 | 0.51 | 0.55 | (7.3) | (7.6) |
| Earnings per ADR | 252.40 | 285.77 | 0.49 | 0.55 | (11.7) | (7.6) |
| |
| Depreciation | 16,849 | 14,578 | 33 | 28 | 15.6 | 14.2 |
| Capital Expenditures | 33,362 | 41,270 | 65 | 80 | (19.2) | N/A |
(1) Average Exchange rate for the period: US$1.00 = CLP 516
(2) Considers period weighted average shares according to capital increase as of December 31, 2013. |
|
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 16 of 20 |
| | | | | | |
| Exhibit 2: Income Statement (Twelve months ended on December 31, 2013) | | | | |
| YTD as of December | 2013 | 2012 | 2013 | 2012 | Total | Organic |
| | (CLP million) | (USD million)(1) | Change % | Change % |
| Net sales | 1,197,227 | 1,075,690 | 2,418 | 2,173 | 11.3 | 9.9 |
| Cost of sales | (536,697) | (493,087) | (1,084) | (996) | 8.8 | 7.4 |
| % of net sales | 44.8 | 45.8 | 44.8 | 45.8 | - | - |
| Gross profit | 660,530 | 582,603 | 1,334 | 1,177 | 13.4 | 12.0 |
| MSD&A | (473,524) | (405,243) | (957) | (819) | 16.8 | 15.0 |
| % of net sales | 39.6 | 37.7 | 39.6 | 37.7 | - | - |
| Other operating income/(expenses) | 4,249 | 3,828 | 9 | 8 | 11.0 | 7.3 |
| Normalized EBIT | 191,255 | 181,188 | 386 | 366 | 5.6 | 5.2 |
| % of net sales | 16.0 | 16.8 | 16.0 | 16.8 | - | - |
| Exceptional items | (2,989) | - | (6) | - | - | - |
| EBIT | 188,266 | 181,188 | 380 | 366 | 3.9 | 3.6 |
| % of net sales | 15.7 | 16.8 | 15.7 | 17 | - | - |
| Net financial expenses | (15,830) | (9,362) | (32) | (19) | 69.1 | 66.5 |
| Equity and income of JVs | 309 | (177) | 1 | (0) | 274.3 | 274.3 |
| Foreign currency exchange differences | (4,292) | (1,003) | (9) | (2) | (328.0) | (304.5) |
| Results as per adjustment units | (1,802) | (5,058) | (4) | (10) | 64.4 | 64.8 |
| Other gains/(losses) | 959 | (4,478) | 2 | (9) | 121.4 | 123.6 |
| Total Non-operating result | (20,656) | (20,078) | (42) | (41) | (2.9) | (0.1) |
| Income/(loss) before taxes | 167,609 | 161,110 | 339 | 325 | 4.0 | 4.3 |
| Income taxes | (34,705) | (37,133) | (70) | (75) | (6.5) | (7.4) |
| Net income for the year | 132,905 | 123,977 | 268 | 250 | 7.2 | 7.8 |
| |
| Normalized net income attributable to: | | | | | | |
| The equity holders of the parent | 125,350 | 114,433 | 253 | 231 | 9.5 | 8.7 |
| |
| Net income attributable to: | | | | | | |
| The equity holders of the parent | 123,036 | 114,433 | 249 | 231 | 7.5 | 6.6 |
| Non-controlling interest | 9,869 | 9,544 | 20 | 19 | 3.4 | 3.4 |
| |
| Normalized EBITDA | 255,502 | 235,948 | 516 | 477 | 8.3 | 7.5 |
| % of net sales | 21.3 | 21.9 | 21.3 | 21.9 | - | - |
| EBITDA | 252,512 | 235,948 | 510 | 477 | 7.0 | 6.2 |
| % of net sales | 21.1 | 21.9 | 21.1 | 21.9 | - | - |
| |
| OTHER INFORMATION | | | | | | |
| Number of shares(2)331,806,416 | 331,806,416 | 318,502,872 | 331,806,416 | 318,502,872 | | |
| Shares per ADR | 2 | 2 | 2 | 2 | | |
| |
| Normalized Earnings per share | 377.78 | 359.28 | 0.76 | 0.73 | 5.1 | 4.3 |
| Earnings per share | 370.81 | 359.28 | 0.75 | 0.73 | 3.2 | 4.3 |
| Normalized Earnings per ADR | 755.56 | 718.57 | 1.53 | 1.45 | 5.1 | 4.3 |
| Earnings per ADR | 741.61 | 718.57 | 1.50 | 1.45 | 3.2 | 4.3 |
| |
| Depreciation | 64,246 | 54,760 | 130 | 111 | 17.3 | 15.1 |
| Capital Expenditures | 124,559 | 117,646 | 252 | 238 | 5.9 | N/A |
(1) Average Exchange rate for the period: US$1.00 = CLP 495
(2) Considers period weighted average shares according to capital increase as of December 31, 2013. |
|
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 17 of 20 |
| | | | | | | | | | | | | | | | |
| Exhibit 3: Segment Information (Fourth Quarter 2013) |
| | 1. Chile Business segment |
| Fourth Quarter | Beer Chile | Non-Alcoholic(1) | Spirits | Total(1) |
| (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 | 1,743 | 1,637 | 6.5 | 6.5 | 2,921 | 2,457 | 18.9 | 13.2 | 76 | 76 | (0.7) | (0.7) | 4,740 | 4,170 | 13.7 | 10.3 |
| Net sales | 111,806 | 99,558 | 12.3 | 12.3 | 102,795 | 86,153 | 19.3 | 17.2 | 20,231 | 18,070 | 12.0 | 12.0 | 234,833 | 203,781 | 15.2 | 14.3 |
| Net sales (CLP/HL) | 64,150 | 60,830 | 5.5 | 5.5 | 35,189 | 35,062 | 0.4 | 3.5 | 267,558 | 237,219 | 12.8 | 12.8 | 49,546 | 48,868 | 1.4 | 3.7 |
| Cost of sales | (45,058) | (36,374) | 23.9 | 23.9 | (45,520) | (39,316) | 15.8 | 14.6 | (12,742) | (11,497) | 10.8 | 10.8 | (103,320) | (87,187) | 18.5 | 18.0 |
| % of net sales | 40.3 | 36.5 | | | 44.3 | 45.6 | | | 63.0 | 63.6 | | | 44.0 | 42.8 | | |
| Gross profit | 66,749 | 63,183 | 5.6 | 5.6 | 57,276 | 46,837 | 22.3 | 19.4 | 7,489 | 6,573 | 13.9 | 13.9 | 131,513 | 116,594 | 12.8 | 11.6 |
| % of net sales | 59.7 | 63.5 | | | 55.7 | 54.4 | | | 37.0 | 36.4 | | | 56.0 | 57.2 | | |
| MSD&A | (37,899) | (32,022) | 18.4 | 18.4 | (40,707) | (31,503) | 29.2 | 25.6 | (5,960) | (5,317) | 12.1 | 12.1 | (84,567) | (68,842) | 22.8 | 21.2 |
| % of net sales | 33.9 | 32.2 | | | 39.6 | 36.6 | | | 29.5 | 29.4 | | | 36.0 | 33.8 | | |
| Other operating income/(expenses) | 530 | 360 | N/A | N/A | 357 | (490) | N/A | N/A | 15 | 1,306 | N/A | N/A | 902 | 1,176 | N/A | N/A |
| Normalized EBIT | 29,380 | 31,522 | (6.8) | (6.8) | 16,925 | 14,844 | 14.0 | 12.3 | 1,544 | 2,562 | (39.7) | (39.7) | 47,849 | 48,928 | (2.2) | (2.7) |
| Normalized EBIT margin (%) | 26.3 | 31.7 | | | 16.5 | 17.2 | | | 7.6 | 14.2 | | | 20.4 | 24.0 | | |
| Exceptional items | (192) | - | N/A | N/A | (527) | - | N/A | N/A | (62) | - | N/A | N/A | (780) | - | N/A | N/A |
| EBIT | 29,188 | 31,522 | (7.4) | (7.4) | 16,398 | 14,844 | 10.5 | 8.8 | 1,482 | 2,562 | (42.2) | (42.2) | 47,068 | 48,928 | (3.8) | (4.3) |
| % of net sales | 26.1 | 31.7 | | | 16.0 | 17.2 | | | 7.3 | 14.2 | | | 20.0 | 24.0 | | |
| Normalized EBITDA | 34,649 | 36,599 | (5.3) | (5.3) | 21,124 | 18,201 | 16.1 | 13.6 | 2,079 | 3,082 | (32.6) | (32.6) | 57,851 | 57,882 | (0.1) | (0.8) |
| Normalized EBITDA margin (%) | 31.0 | 36.8 | | | 20.5 | 21.1 | | | 10.3 | 17.1 | | | 24.6 | 28.4 | | |
| EBITDA | 34,457 | 36,599 | (5.9) | (5.9) | 20,597 | 18,201 | 13.2 | 10.7 | 2,017 | 3,082 | (34.6) | (34.6) | 57,071 | 57,882 | (1.4) | (2.2) |
| % of net sales | 30.8 | 36.8 | | | 20.0 | 21.1 | | | 10.0 | 17.1 | | | 24.3 | 28.4 | | |
| |
| | 2. Río de la Plata Business segment | 3. Wine Business segment |
| Fourth Quarter | 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 | 1,488 | 1,553 | (4.2) | (4.2) | 195 | 180 | 8.2 | 8.2 | 1,683 | 1,733 | (2.9) | (2.9) | 303 | 308 | (1.6) | (1.6) |
| Net sales | 97,360 | 91,051 | 6.9 | 6.9 | 3,858 | 2,408 | 60.2 | 60.2 | 101,218 | 93,459 | 8.3 | 8.3 | 38,447 | 37,806 | 1.7 | 1.7 |
| Net sales (CLP/HL) | 65,414 | 58,623 | 11.6 | 11.6 | 19,792 | 13,363 | 48.1 | 48.1 | 60,131 | 53,918 | 11.5 | 11.5 | 126,691 | 122,614 | 3.3 | 3.3 |
| Cost of sales | (34,439) | (33,940) | 1.5 | 1.5 | (3,010) | (1,945) | 54.8 | 54.8 | (37,450) | (35,884) | 4.4 | 4.4 | (21,584) | (22,952) | (6.0) | (6.0) |
| % of net sales | 35.4 | 37.3 | | | 78.0 | 80.8 | | | 37.0 | 38.4 | | | 56.1 | 60.7 | | |
| Gross profit | 62,921 | 57,112 | 10.2 | 10.2 | 847 | 463 | 82.8 | 82.8 | 63,768 | 57,575 | 10.8 | 10.8 | 16,863 | 14,855 | 13.5 | 13.5 |
| % of net sales | 64.6 | 62.7 | | | 22.0 | 19.2 | | | 63.0 | 61.6 | | | 43.9 | 39.3 | | |
| MSD&A | (41,638) | (40,378) | 3.1 | 3.1 | (976) | (518) | 88.5 | 88.5 | (42,614) | (40,896) | 4.2 | 4.2 | (12,585) | (11,768) | 6.9 | 6.9 |
| % of net sales | 42.8 | 44.3 | | | 25.3 | 13.4 | | | 42.1 | 43.8 | | | 32.7 | 31.1 | | |
| Other operating income/(expenses) | 384 | 218 | N/A | N/A | (6) | 16 | N/A | N/A | 378 | 234 | N/A | N/A | (150) | 2 | N/A | N/A |
| Normalized EBIT | 21,667 | 16,952 | 27.8 | 27.8 | (134) | (39) | (247.0) | (247.0) | 21,532 | 16,913 | 27.3 | 27.3 | 4,128 | 3,088 | 33.7 | 33.7 |
| Normalized EBIT margin (%) | 22.3 | 18.6 | | | (3.5) | (1.6) | | | 21.3 | 18.1 | | | 10.7 | 8.2 | | |
| Exceptional items | (502) | - | N/A | N/A | (41) | - | N/A | N/A | (543) | - | N/A | N/A | (276) | - | N/A | N/A |
| EBIT | 21,164 | 16,952 | 24.9 | 24.9 | (175) | (39) | 352.2 | 352.2 | 20,989 | 16,913 | 24.1 | 24.1 | 3,853 | 3,088 | 24.8 | 24.8 |
| % of net sales | 21.7 | 18.6 | | | (4.5) | (1.6) | | | 20.7 | 18.1 | | | 10.0 | 8.2 | | |
| Normalized EBITDA | 23,830 | 18,896 | 26.1 | 26.1 | (13) | 22 | (158.0) | (158.0) | 23,817 | 18,918 | 25.9 | 25.9 | 6,239 | 4,693 | 33.0 | 33.0 |
| Normalized EBITDA margin (%) | 24.5 | 20.8 | | | (0.3) | 0.9 | | | 23.5 | 20.2 | | | 16.2 | 12.4 | | |
| EBITDA | 23,328 | 18,896 | 23.5 | 23.5 | (54) | 22 | (340.7) | (340.7) | 23,274 | 18,918 | 23.0 | 23.0 | 5,963 | 4,693 | 27.1 | 27.1 |
| % of net sales | 24.0 | 20.8 | | | (1.4) | 0.9 | | | 23.0 | 20.2 | | | 15.5 | 12.4 | | |
| |
| | 4. Other/eliminations | Total(1) | | | | | | | | |
| Fourth Quarter | | | | | | | | |
| (In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % | | | | | | | | |
| Volumes | - | - | - | - | 6,726 | 6,212 | 8.3 | 6.0 | | | | | | | | |
| Net sales | (1,533) | (2,835) | 45.9 | 45.9 | 372,966 | 332,211 | 12.3 | 11.7 | | | | | | | | |
| Net sales (CLP/HL) | - | - | - | - | 55,447 | 53,481 | 3.7 | 5.4 | | | | | | | | |
| Cost of sales | 4,579 | 3,699 | 23.8 | 23.8 | (157,775) | (142,324) | 10.9 | 10.5 | | | | | | | | |
| % of net sales | - | - | | | 42.3 | 42.8 | | | | | | | | | | |
| Gross profit | 3,046 | 863 | 252.9 | 252.9 | 215,191 | 189,886 | 13.3 | 12.6 | | | | | | | | |
| % of net sales | - | - | - | | 57.7 | 57.2 | | | | | | | | | | |
| MSD&A | (1,680) | 124 | 1453.4 | -1453.4 | (141,446) | (121,381) | 16.5 | 15.6 | | | | | | | | |
| % of net sales | - | - | | | 37.9 | 36.5 | | | | | | | | | | |
| Other operating income/(expenses) | 1,835 | (31) | N/A | N/A | 2,965 | 1,380 | N/A | N/A | | | | | | | | |
| Normalized EBIT | 3,200 | 956 | 234.7 | 234.7 | 76,710 | 69,885 | 9.8 | 9.4 | | | | | | | | |
| Normalized EBIT margin (%) | - | - | | | 20.6 | 21.0 | | | | | | | | | | |
| Exceptional items | (1,390) | - | N/A | N/A | (2,989) | - | N/A | N/A | | | | | | | | |
| EBIT | 1,810 | 956 | 89.3 | 89.3 | 73,720 | 69,885 | 5.5 | 5.1 | | | | | | | | |
| % of net sales | - | - | | | 19.8 | 21.0 | | | | | | | | | | |
| Normalized EBITDA | 5,651 | 2,970 | 90.2 | 90.2 | 93,559 | 84,464 | 10.8 | 10.2 | | | | | | | | |
| Normalized EBITDA margin (%) | - | - | | | 25.1 | 25.4 | | | | | | | | | | |
| EBITDA | 4,261 | 2,970 | 43.5 | 43.5 | 90,569 | 84,464 | 7.2 | 6.7 | | | | | | | | |
| % of net sales | - | - | | | 24.3 | 25.4 | | | | | | | | | | |
| |
| (1) Organic excludes Manantial's October and November 2013 results from the quarter As reported |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 18 of 20 |
| | | | | | | | | | | | | | | | |
| Exhibit 4: Segment Information (Twelve monthsended on December 31, 2013) |
| | 1. Chile Business segment |
| YTD as of December | Beer Chile | Non-Alcoholic(1) | Spirits | Total(1) |
| (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 | 5,536 | 5,434 | 1.9 | 1.9 | 9,759 | 8,147 | 19.8 | 11.8 | 273 | 263 | 3.6 | 3.6 | 15,568 | 13,844 | 12.4 | 7.8 |
| Net sales | 353,044 | 320,844 | 10.0 | 10.0 | 342,233 | 292,133 | 17.1 | 13.9 | 69,919 | 63,552 | 10.0 | 10.0 | 765,196 | 676,529 | 13.1 | 11.7 |
| Net sales (CLP/HL) | 63,774 | 59,046 | 8.0 | 8.0 | 35,069 | 35,858 | (2.2) | 1.8 | 256,116 | 241,190 | 6.2 | 6.2 | 49,153 | 48,867 | 0.6 | 3.6 |
| Cost of sales | (143,382) | (130,587) | 9.8 | 9.8 | (156,250) | (138,906) | 12.5 | 10.7 | (43,598) | (38,865) | 12.2 | 12.2 | (343,230) | (308,359) | 11.3 | 10.5 |
| % of net sales | 40.6 | 40.7 | | | 45.7 | 47.5 | | | 62.4 | 61.2 | | | 44.9 | 45.6 | | |
| Gross profit | 209,662 | 190,256 | 10.2 | 10.2 | 185,983 | 153,227 | 21.4 | 16.7 | 26,321 | 24,687 | 6.6 | 6.6 | 421,965 | 368,170 | 14.6 | 12.7 |
| % of net sales | 59.4 | 59.3 | | | 54.3 | 52.5 | | | 37.6 | 38.8 | | | 55.1 | 54.4 | | |
| MSD&A | (120,814) | (105,513) | 14.5 | 14.5 | (134,488) | (107,667) | 24.9 | 19.5 | (19,901) | (18,516) | 7.5 | 7.5 | (275,203) | (231,696) | 18.8 | 16.2 |
| % of net sales | 34.2 | 32.9 | | | 39.3 | 36.9 | | | 28.5 | 29.1 | | | 36.0 | 34.2 | | |
| Other operating income/(expenses) | 607 | 358 | N/A | N/A | 713 | (214) | N/A | N/A | 65 | 1,601 | N/A | N/A | 1,385 | 1,746 | N/A | N/A |
| Normalized EBIT | 89,454 | 85,102 | 5.1 | 5.1 | 52,209 | 45,346 | 15.1 | 11.8 | 6,485 | 7,772 | (16.6) | (16.6) | 148,148 | 138,221 | 7.2 | 6.1 |
| Normalized EBIT margin (%) | 25.3 | 26.5 | | | 15.3 | 15.5 | | | 9.3 | 12.2 | | | 19.4 | 20.4 | | |
| Exceptional items | (192) | - | N/A | N/A | (527) | - | N/A | N/A | (62) | - | N/A | N/A | (780) | - | N/A | N/A |
| EBIT | 89,262 | 85,102 | 4.9 | 4.9 | 51,682 | 45,346 | 14.0 | 10.7 | 6,423 | 7,772 | (17.4) | (17.4) | 147,367 | 138,221 | 6.6 | 5.5 |
| % of net sales | 25.3 | 26.5 | | | 15.1 | 15.5 | | | 9.2 | 12.2 | | | 19.3 | 20.4 | | |
| Normalized EBITDA | 109,634 | 104,359 | 5.1 | 5.1 | 67,481 | 57,312 | 17.7 | 13.4 | 8,567 | 9,836 | (12.9) | (12.9) | 185,682 | 171,506 | 8.3 | 6.8 |
| Normalized EBITDA margin (%) | 31.1 | 32.5 | | | 19.7 | 19.6 | | | 12.3 | 15.5 | | | 24.3 | 25.4 | | |
| EBITDA | 109,442 | 104,359 | 4.9 | 4.9 | 66,954 | 57,312 | 16.8 | 12.4 | 8,505 | 9,836 | (13.5) | (13.5) | 184,902 | 171,506 | 7.8 | 6.3 |
| % of net sales | 31.0 | 32.5 | | | 19.6 | 19.6 | | | 12.2 | 15.5 | | | 24.2 | 25.4 | | |
| |
| | 2. Río de la Plata Business segment | 3. Wine Business segment |
| YTD as of December | 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 | 4,457 | 4,578 | (2.6) | (2.6) | 615 | 211 | 191.4 | 15.8 | 5,072 | 4,789 | 5.9 | (1.8) | 1,274 | 1,276 | (0.1) | (0.1) |
| Net sales | 272,499 | 250,996 | 8.6 | 8.6 | 9,936 | 2,830 | 251.1 | 64.7 | 282,435 | 253,826 | 11.3 | 9.2 | 152,255 | 149,557 | 1.8 | 1.8 |
| Net sales (CLP/HL) | 61,139 | 54,825 | 11.5 | 11.5 | 16,149 | 13,403 | 20.5 | 42.2 | 55,682 | 52,998 | 5.1 | 11.2 | 119,493 | 117,226 | 1.9 | 1.9 |
| Cost of sales | (105,082) | (97,711) | 7.5 | 7.5 | (8,183) | (2,321) | 252.5 | 61.0 | (113,265) | (100,033) | 13.2 | 8.8 | (92,864) | (95,635) | (2.9) | (2.9) |
| % of net sales | 38.6 | 38.9 | | | 82.4 | 82.0 | | | 40.1 | 39.4 | | | 61.0 | 63.9 | | |
| Gross profit | 167,417 | 153,285 | 9.2 | 9.2 | 1,753 | 509 | 244.5 | 81.3 | 169,171 | 153,794 | 10.0 | 9.5 | 59,391 | 53,922 | 10.1 | 10.1 |
| % of net sales | 61.4 | 61.1 | | | 17.6 | 18.0 | | | 59.9 | 60.6 | | | 39.0 | 36.1 | | |
| MSD&A | (140,066) | (125,400) | 11.7 | 11.7 | (2,906) | (649) | 347.5 | 89.8 | (142,972) | (126,049) | 13.4 | 12.1 | (46,036) | (43,175) | 6.6 | 6.6 |
| % of net sales | 51.4 | 50.0 | | | 29.2 | 6.5 | | | 50.6 | 49.7 | | | 30.2 | 28.9 | | |
| Other operating income/(expenses) | 1,061 | 297 | N/A | N/A | (23) | 16 | N/A | N/A | 1,038 | 313 | N/A | N/A | (166) | 306 | N/A | N/A |
| Normalized EBIT | 28,411 | 28,182 | 0.8 | 0.8 | (1,175) | (125) | N/A | N/A | 27,237 | 28,057 | (2.9) | (1.8) | 13,189 | 11,053 | 19.3 | 19.3 |
| Normalized EBIT margin (%) | 10.4 | 11.2 | | | (11.8) | (4.4) | | | 9.6 | 11.1 | | | 8.7 | 7.4 | | |
| Exceptional items | (502) | - | N/A | N/A | (41) | - | N/A | N/A | (543) | - | N/A | N/A | (276) | - | N/A | N/A |
| EBIT | 27,909 | 28,182 | (1.0) | (1.0) | (1,216) | (125) | N/A | N/A | 26,693 | 28,057 | (4.9) | (1.8) | 12,913 | 11,053 | 16.8 | 16.8 |
| % of net sales | 10.2 | 11.2 | | | (12.2) | (4.4) | | | 9.5 | 11.1 | | | 8.5 | 7.4 | | |
| Normalized EBITDA | 38,030 | 35,121 | 8.3 | 8.3 | (836) | (41) | N/A | N/A | 37,194�� | 35,080 | 6.0 | 8.0 | 20,428 | 17,619 | 15.9 | 15.9 |
| Normalized EBITDA margin (%) | 14.0 | 14.0 | | | (8.4) | (1.5) | | | 13.2 | 13.8 | | | 13.4 | 11.8 | | |
| EBITDA | 37,528 | 35,121 | 6.9 | 6.9 | (877) | (41) | N/A | N/A | 36,651 | 35,080 | 4.5 | 6.4 | 20,152 | 17,619 | 14.4 | 14.4 |
| % of net sales | 13.8 | 14.0 | | | (8.8) | (1.5) | | | 13.0 | 13.8 | | | 13.2 | 11.8 | | |
| |
| | 4. Other/eliminations | Total(1) | | | | | | | | |
| YTD as of December | | | | | | | | |
| (In ThHL or CLP million unless stated otherwise) | 2013 | 2012 | Total % | Organic % | 2013 | 2012 | Total % | Organic % | | | | | | | | |
| Volumes | - | - | - | - | 21,914 | 19,909 | 10.1 | 5.0 | | | | | | | | |
| Net sales | (2,660) | (4,223) | 37.0 | 37.0 | 1,197,227 | 1,075,690 | 11.3 | 9.9 | | | | | | | | |
| Net sales (CLP/HL) | - | - | - | - | 54,632 | 54,030 | 1.1 | 4.7 | | | | | | | | |
| Cost of sales | 12,663 | 10,939 | 15.8 | 15.8 | (536,697) | (493,087) | 8.8 | 7.4 | | | | | | | | |
| % of net sales | | | | | 44.8 | 45.8 | | | | | | | | | | |
| Gross profit | 10,003 | 6,716 | 48.9 | 48.9 | 660,530 | 582,603 | 13.4 | 12.0 | | | | | | | | |
| % of net sales | | | | | 55.2 | 54.2 | | | | | | | | | | |
| MSD&A | (9,313) | (4,323) | 115.4 | 115.4 | (473,524) | (405,243) | 16.8 | 15.0 | | | | | | | | |
| % of net sales | | | | | 39.6 | 37.7 | | | | | | | | | | |
| Other operating income/(expenses) | 1,992 | 1,464 | N/A | N/A | 4,249 | 3,828 | N/A | N/A | | | | | | | | |
| Normalized EBIT | 2,682 | 3,857 | (30.5) | (30.5) | 191,255 | 181,188 | 5.6 | 5.2 | | | | | | | | |
| Normalized EBIT margin (%) | | | | | 16.0 | 16.8 | | | | | | | | | | |
| Exceptional items | (1,390) | - | N/A | N/A | (2,989) | - | N/A | N/A | | | | | | | | |
| EBIT | 1,292 | 3,857 | (66.5) | (66.5) | 188,266 | 181,188 | 3.9 | 3.6 | | | | | | | | |
| % of net sales | | | | | 15.7 | 16.8 | | | | | | | | | | |
| Normalized EBITDA | 12,198 | 11,743 | 3.9 | 3.9 | 255,502 | 235,948 | 8.3 | 7.5 | | | | | | | | |
| Normalized EBITDA margin (%) | | | | | 21.3 | 21.9 | | | | | | | | | | |
| EBITDA | 10,808 | 11,743 | (8.0) | (8.0) | 252,512 | 235,948 | 7.0 | 6.2 | | | | | | | | |
| % of net sales | | | | | 21.1 | 21.9 | | | | | | | | | | |
(1) Organic excludes Manantial's January to November 2013 results from the YTD As reported
(2) Organic excludes Uruguay's January to August 2012 / 2013 results from the YTD As reported |
|
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 19 of 20 |
| | | | | |
| Exhibit 5: Balance Sheet |
| |
| | December 31 | December 31 | December 31 | December 31 | Total
Change% |
| | 2013 | 2012 | 2013 | 2012 |
| | (CLP million) | (US$ million)(1) |
| ASSETS | | | | | |
| Cash and cash equivalents | 408,853 | 102,337 | 779 | 195 | 299.5 |
| Other current assets | 409,644 | 393,551 | 781 | 750 | 4.1 |
| Total current assets | 818,497 | 495,888 | 1,560 | 945 | 65.1 |
| | | | | | |
| PP&E (net) | 680,994 | 612,329 | 1,298 | 1,167 | 11.2 |
| Other non current assets | 228,229 | 220,493 | 435 | 420 | 3.5 |
| Total non current assets | 909,223 | 832,822 | 1,733 | 1,588 | 9.2 |
| Total assets | 1,727,720 | 1,328,710 | 3,293 | 2,533 | 30.0 |
| |
| LIABILITIES | | | | | |
| Short term financial debt | 120,488 | 54,874 | 230 | 105 | 119.6 |
| Other liabilities | 288,641 | 259,656 | 550 | 495 | 11.2 |
| Total current liabilities | 409,129 | 314,530 | 780 | 600 | 30.1 |
| | | | | | |
| Long term financial debt | 142,763 | 209,123 | 272 | 399 | (31.7) |
| Other liabilities | 91,584 | 94,539 | 175 | 180 | (3.1) |
| Total non current liabilities | 234,347 | 303,662 | 447 | 579 | (22.8) |
| Total Liabilities | 643,476 | 618,191 | 1,227 | 1,178 | 4.1 |
| |
| EQUITY | | | | | |
| Paid-in capital | 562,693 | 231,020 | 1,073 | 440 | 143.6 |
| Other reserves | (65,882) | (48,146) | (126) | (92) | (36.8) |
| Retained earnings | 491,864 | 430,346 | 938 | 820 | 14.3 |
| | | | | | |
| Net equity attributable to parent company shareholders | 988,676 | 613,220 | 1,885 | 1,169 | 61.2 |
| Minority interest | 95,568 | 97,299 | 182 | 185 | (1.8) |
| Total equity | 1,084,244 | 710,518 | 2,067 | 1,354 | 52.6 |
| Total equity and liabilities | 1,727,720 | 1,328,710 | 3,293 | 2,533 | 30.0 |
| |
| OTHER FINANCIAL INFORMATION | | | | | |
| | | | | |
| Total financial debt | 263,251 | 263,997 | 502 | 503 | (0.3) |
| | | | | |
| Net Financial debt | (145,602) | 161,660 | (278) | 308 | (190.1) |
| | | | | |
| Liquidity ratio | 2.00 | 1.58 | | | |
| Financial Debt / Capitalization | 0.20 | 0.27 | | | |
| Net Financial debt / EBITDA | (0.58) | 0.69 | | | |
| (1) Exchange rate as of December 31, 2013: US$1.00 = CLP 525 |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU
NYSE: CCU | Page 20of 20 |
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: February 06, 2014
