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 2014 RESULTS1;2;3
Santiago, Chile, February 3rd, 2015–CCU announced today its consolidated financial results for the fourth quarter ended December 31st, 2014:
- Consolidated Volumesincreased 1.6% (organically, it decreased 0.5%). The Chile Operatingsegment contributed with an increase of 0.5% (same figures for organic growth), the Río de la PlataOperating segment showed a 4.9% increase (3.5% decrease for organic growth) and the WineOperating segment increased 1.5% this quarter (same figures for organic growth).
- Net salesincreased 6.1% as a consequence of 4.4% higher average prices coupled with 1.6%higher consolidated Volumes. Organically, Net sales increased 3.4%.
- Gross profitincreased 2.1% as a combination of 6.1% higher Net sales partially offset by 11.6%increase in Cost of sales. Organically, Gross profit grew 0.3%.
- Normalized EBITDAdecreased 12.4% (organically, it decreased 14.3%), driven by Chile and Río dela Plata Operating segments, partially compensated by the Wine Operating segment.
- Normalized Net incomedecreased 14.0% this quarter (organically, it decreased 18.0%).
- Net Incomedecreased 12.3% this quarter (organically, it decreased 13.9%).
- Earnings per share4 decreased 23.3% due to a lower Net income and share dilution.
- Full Year 2014closed with top line growth. Net sales increased 8.4% to CLP 1,297,966 million, as Volumes increased 4.5% and prices increased 3.8%. Normalized EBITDA decreased 2.1% to CLP 250,155 million, and Normalized Net income decreased 3.7% to CLP 120,755 million. Net Income decreased 2.8% to CLP 119,557 million.
Key figures | Q4'14 | Q4'13 | Total | Organic |
(In ThHL or CLP million unless stated otherwise) | change % | change % |
Volumes | 6,839 | 6,728 | 1.6 | (0.5) |
Net sales | 395,649 | 372,966 | 6.1 | 3.4 |
Gross profit | 219,649 | 215,191 | 2.1 | 0.3 |
Normalized EBIT | 63,069 | 76,710 | (17.8) | (19.5) |
Normalized EBITDA | 81,931 | 93,559 | (12.4) | (14.3) |
Normalized Net income | 41,798 | 48,606 | (14.0) | (18.0) |
Net income | 40,600 | 46,292 | (12.3) | (13.9) |
Earnings per share | 109.9 | 143.3 | (23.3) | (28.3) |
Key figures | YTD'14 | YTD'13 | Total | Organic |
(In ThHL or CLP million unless stated otherwise) | change % | change % |
Volumes | 22,895 | 21,916 | 4.5 | 2.4 |
Net sales | 1,297,966 | 1,197,227 | 8.4 | 5.9 |
Gross profit | 693,429 | 660,530 | 5.0 | 3.4 |
Normalized EBIT | 181,548 | 191,255 | (5.1) | (5.8) |
Normalized EBITDA | 250,155 | 255,502 | (2.1) | (3.3) |
Normalized Net income | 120,755 | 125,350 | (3.7) | (4.6) |
Net income | 119,557 | 123,036 | (2.8) | (2.8) |
Earnings per share | 323.6 | 384.5 | (15.8) | (17.4) |
1 The consolidated figures of the following release are expressed in nominal Chilean Pesos and according to the rules and instructions of the Chilean Superintendence of Securities and Insurance ("SVS"), which are in accordance with IFRS, except as instructed by the SVS in its Circular Letter N°856 (Oficio Circular N°856), as described on page 6 under Income Taxes.
2 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 8. Figures in tables and exhibits have been rounded off and may not add exactly the total shown.
3 All references in this Press Release shall be deemed to refer to Q4’14 figures compared toQ4’13 figures, unless otherwisestated.
4 Considers period weighted average shares according to Capital increase executed on 2013.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 1 of 18 |
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CCU’s fourthquarter 2014 consolidated results were impacted by short term negative effects, as our Normalized EBITDA showed a 12.4% decrease while the Normalized EBITDA margin was 20.7%, 438bps lower than Q4’13. Normalized EBITDA excludes the effect of CLP1,627 million as Exceptional item associated with restructuring processes across Operating segments. These results are mainly explained by: currency devaluation of 16% for the Chilean peso and 41% for the Argentine peso against the US dollar; and higher marketing rate as we continued with our strategy for developing strong brands and improving market position. These two effects were partially compensated by 1.6% higher sales Volumes, coupled with 4.4% higher average prices. Volume growth was negatively affected by the economic slowdown scenario and the Chilean tax reform which became effective on October 1st. As previously stated, this Tax reform included an increase in excise taxes for both alcoholic and sugar containing beverages, in which we made prompt price adjustments to some of the affected categories. Furthermore, the described higher exchange rates estimated impact, at an EBITDA level is CLP 8,024 million, while the higher marketing rate estimated impact, at an EBITDA level is CLP 2,840 million. When excluding both combined effects, Normalized EBITDA would have decreased by 0.8%.
All of the above closes a particular year 2014, with 12.6% higher accumulated Cost of sales as currencies devaluated, coupled with 13.1% accumulated MSD&A increase as higher marketing rate was performed and higher inflation affected our expenses. Both effects were partially compensated by 4.5% Volume growth, despite the private consumption slowdown and excise tax increases, coupled with 3.8% higher average prices, as we performed pricing actions. The Normalized EBITDA for 2014 showed a 2.1% decrease and 207 bps margin contraction. At an EBITDA level, the estimated impact of the higher exchange rate is CLP 27,254 million, while the estimated impact of higher marketing rate is CLP 8,324 million. All in, when excluding these two effects, the Normalized EBITDA would have increased by 11.8% for the full year, or 4.4% increase when excluding the CLP 18,882 million at EBITDA level for the compensations received by our Argentine subsidiary CICSA5in Q2’14.Altogether, Net income was CLP 119,557 million, 2.8% lower than 2013.
Nevertheless, during 2014 we made significant progress to continue building our business long term performance: a) we sustained our organic growth through market share gains across different Operating segments; b) continued executing our non-organic growth strategy as we entered into three new markets: Paraguay, in December 2013, Bolivia and Colombia; and c) planned a series of cost savings and maximizing margins initiatives for the future, as part of our efforts to reach operational and commercial excellence.
We will continue to strengthen our operations to ensure the preference of our brands, quality of our products and market position, with special focus on beer and non-alcoholic categories. Always improving the efficiency of our operational processes, while structuring ourselves in a way that allows us to operate our regional strategy with the highest added value in all our geographies in which we participate. In sum, fourth quarter and full year 2014, allowed us to progress in the sustainability of our business, which we expect will lead to profitable growth of our business in the future.
5 Compensations received for the termination of the contract which allowed us to import and distribute on an exclusive basis, Corona and Negra Modelo beers in Argentina, and the license for the production and distribution of Budweiser beer in Uruguay. CICSA: Compañía Industrial Cervecera S.A. subsidiary of CCU S.A.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 2 of 18 |
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CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (Exhibits 1 & 2) |
NET SALES
Q4’14 | Increased 6.1% to CLP 395,649 million as a result of 4.4% higher average prices and 1.6% higher consolidated volumes. All Operating segments contributed to this Net sales growth: Chile with 5.4% growth, Río de la Plata with 8.7% increase and Wine with 10.5% increase. On organic basis, Net sales increased 3.4% as a result of 3.9% increase in average prices, partially offset by 0.5% lower organic Volumes. The Chile Operating segment contributed to this growth with 5.4% Net sales increase, as average prices increased 4.8% coupled with 0.5% higher Volumes. The Wine Operating segment contributed with a 10.5% Net sales increase, as average prices increased 8.8%, coupled with 1.5% higher Volumes. This was partially offset by Río de la Plata Operating segment with a 1.2% decrease in Net sales, as organic Volumes decreased 3.5%, not fully compensated by a 2.4% increase in organic average prices measured in CLP terms. |
2014 | Accumulated Net sales increased 8.4% to CLP 1,297,966 million as a result of 4.5% higher Volumes coupled with 3.8% increase in average prices. On organic basis, accumulated Net sales increased 5.9% to CLP 1,267,774 million as a result of 2.4% higher Volumes coupled with 3.4% increase in average prices. |
Net sales by segment
| | Net sales (million CLP) |
| | Q4'14 | Mix | Q4'13 | Mix | Total Change% | Organic Change% |
1. Chile Operating segment | 247,414 | 62.5% | 234,833 | 63.0% | 5.4 | 5.4 |
2. Río de la Plata Operating segment | 110,066 | 27.8% | 101,218 | 27.1% | 8.7 | (1.2) |
3. Wine Operating segment | 42,469 | 10.7% | 38,447 | 10.3% | 10.5 | 10.5 |
4. Other/Eliminations | (4,299) | (1.1)% | (1,533) | (0.4)% | N/A | N/A |
TOTAL | 395,649 | 100.0% | 372,966 | 100.0% | 6.1 | 3.4 |
| | Net sales (million CLP) |
| | YTD '14 | Mix | YTD '13 | Mix | Total Change% | Organic Change% |
1. Chile Operating segment | 830,341 | 64.0% | 765,196 | 63.9% | 8.5 | 8.5 |
2. Río de la Plata Operating segment | 299,668 | 23.1% | 282,435 | 23.6% | 6.1 | (4.6) |
3. Wine Operating segment | 172,349 | 13.3% | 152,255 | 12.7% | 13.2 | 13.2 |
4. Other/Eliminations | (4,391) | (0.3)% | (2,660) | (0.2)% | N/A | N/A |
TOTAL | 1,297,966 | 100.0% | 1,197,227 | 100.0% | 8.4 | 5.9 |
GROSS PROFIT
Q4’14 | Increased 2.1% to CLP 219,649 million as a result of 6.1% higher Net sales, partially offset by 11.6% higher Cost of sales, which, as a percentage of Net sales, increased from 42.3% to 44.5% due to the local currencies devaluation against the US dollarwith a negative effect in the US dollar denominated raw materials. As a consequence, Gross profit as a percentage of Net sales decreased from 57.7% to 55.5%. |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 3 of 18 |
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| On organic basis, Gross profit increased 0.3% to CLP 215,731 million as a result of 3.4% higher Net sales, partially offset by 7.7% higher Cost of sales. Organic Gross profit, as a percentage of Net sales, decreased from 57.7% to 55.9%. |
2014 | Increased 5.0% to CLP 693,429 million and, as a percentage of Net sales, decreased from 55.2% to 53.4%. On organic basis, Gross profit increased 3.4% to CLP 682,805 million and, as a percentage of Net sales, decreased from 55.2% to 53.9%. |
NormalizedEBIT
Q4’14 | Decreased 17.8% to CLP 63,069 million and the Normalized EBIT margin decreased 463 bps to 15.9%, mainly explained by 11.6% higher Cost of sales, as local currencies devaluated in all our Operating segments, and MSD&A increased 11.2% mainly due to higher marketing expenses, as we kept investing in brands. On organic basis, Normalized EBIT decreased 19.5% to CLP 61,755 million, and the Normalized organic EBIT margin decreased from 20.6% to 16.0%. |
2014 | Normalized EBIT decreased 5.1% to CLP 181,548 million and Normalized EBIT margin decreased from 16.0% to 14.0%. On organic basis, Normalized EBIT decreased 5.8% to CLP 180,254 million and the Normalized organic EBIT margin decreased from 16.0% to 14.2%. |
Normalized EBIT and Normalized EBIT margin by segment
| | Normalized EBIT (million CLP) | Normalized EBIT margin |
| | Q4'14 | Mix | Q4'13 | Mix | Total Change% | Organic Change% | Q4'14 | Q4'13 | Total Change(bps) | Organic Change(bps) |
1. Chile Operating segment | 44,980 | 71.3% | 47,849 | 62.4% | (6.0) | (6.0) | 18.2% | 20.4% | (220) | (220) |
2. Río de la Plata Operating segment | 13,549 | 21.5 % | 21,532 | 28.1 % | (37.1) | (43.2) | 12.3 % | 21.3 % | (896) | (904) |
3. Wine Operating segment | 4,950 | 7.8% | 4,128 | 5.4% | 19.9 | 19.9 | 11.7% | 10.7% | 92 | 92 |
4. Other/Eliminations | (410) | (0.7)% | 3,200 | 4.2 % | (112.8) | (112.8) | - | - | - | - |
TOTAL | 63,069 | 100.0% | 76,710 | 100.0% | (17.8) | (19.5) | 15.9% | 20.6% | (463) | (455) |
| | Normalized EBIT (million CLP) | Normalized EBIT margin |
| | YTD '14 | Mix | YTD '13 | Mix | Total Change% | Organic Change% | YTD '14 | YTD '13 | Total Change(bps) | Organic Change(bps) |
1. Chile Operating segment | 129,740 | 71.5% | 148,148 | 77.5% | (12.4) | (12.4) | 15.6% | 19.4% | (374) | (374) |
2. Río de la Plata Operating segment | 29,367 | 16.2 % | 27,237 | 14.2 % | 7.8 | 3.1 | 9.8 % | 9.6 % | 16 | 77 |
3. Wine Operating segment | 24,780 | 13.6% | 13,189 | 6.9% | 87.9 | 87.9 | 14.4% | 8.7% | 572 | 572 |
4. Other/Eliminations | (2,339) | (1.3)% | 2,682 | 1.4 % | (187.2) | (187.2) | - | - | - | - |
TOTAL | 181,548 | 100.0% | 191,255 | 100.0% | (5.1) | (5.8) | 14.0% | 16.0% | (199) | (176) |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 4 of 18 |
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Normalized EBITDA
Q4’14 | Decreased 12.4% to CLP 81,931 million and Normalized EBITDA margin decreased from 25.1% to 20.7%. On organic basis, Normalized EBITDA decreased 14.3% to CLP 80,179 million and the Normalized organic EBITDA margin decreased from 25.1% to 20.8%. |
2014 | Decreased 2.1% to CLP 250,155 million and Normalized EBITDA margin decreased from 21.3% to 19.3%. On organic basis, Normalized EBITDA decreased 3.3% to CLP247,175 million and organic Normalized EBITDA margin decreased from 21.3% to 19.5%. |
Normalized EBITDA and Normalized EBITDA margin by segment
| | Normalized EBITDA (million CLP) | Normalized EBITDA margin |
| | Q4'14 | Mix | Q4'13 | Mix | Total Change% | Organic Change% | Q4'14 | Q4'13 | Total Change(bps) | Organic Change(bps) |
1. Chile Operating segment | 55,569 | 67.8% | 57,851 | 61.8% | (3.9) | (3.9) | 22.5% | 24.6% | (218) | (218) |
2. Río de la Plata Operating segment | 16,686 | 20.4 % | 23,817 | 25.5 % | (29.9) | (37.3) | 15.2 % | 23.5 % | (837) | (860) |
3. Wine Operating segment | 6,866 | 8.4% | 6,239 | 6.7% | 10.0 | 10.0 | 16.2% | 16.2% | (6) | (6) |
4. Other/Eliminations | 2,810 | 3.4 % | 5,651 | 6.0 % | (50.3) | (50.3) | - | - | - | - |
TOTAL | 81,931 | 100.0% | 93,559 | 100.0% | (12.4) | (14.3) | 20.7% | 25.1% | (438) | (429) |
| | Normalized EBITDA (million CLP) | Normalized EBITDA margin |
| | YTD '14 | Mix | YTD '13 | Mix | Total Change% | Organic Change% | YTD '14 | YTD '13 | Total Change(bps) | Organic Change(bps) |
1. Chile Operating segment | 168,573 | 67.4% | 185,682 | 72.7% | (9.2) | (9.2) | 20.3% | 24.3% | (396) | (396) |
2. Río de la Plata Operating segment(1) | 40,561 | 16.2 % | 37,194 | 14.6 % | 9.1 | 1.0 | 13.5 % | 13.2 % | 37 | 78 |
3. Wine Operating segment | 31,896 | 12.8% | 20,428 | 8.0% | 56.1 | 56.1 | 18.5% | 13.4% | 509 | 509 |
4. Other/Eliminations | 9,126 | 3.6 % | 12,198 | 4.8 % | (25.2) | (25.2) | - | - | - | - |
TOTAL | 250,155 | 100.0% | 255,502 | 100.0% | (2.1) | (3.3) | 19.3% | 21.3% | (207) | (184) |
(1) Includes the effect of CLP 18,882 million at EBITDA level from agreements reached by the Argentine subsidiary Compañía Industrial Cervecera S.A. ("CICSA") with Cervecería Modelo S. de R.L. de CV. and Anheuser-Busch LLC, both ABINBEV affiliates, as of May 28th, 2014. On June 7th it has been terminated: i) the contract which allows CICSA to import and distribute on an exclusive basis, Corona and Negra Modelo beers in Argentina, and ii) the license for the production and distribution of Budweiser beer in Uruguay |
NON-OPERATING RESULT
Q4’14 | Increased CLP 804 million from a loss of CLP 6,713 million to a loss of CLP 5,909 million mainly explained by: ·Foreign currency exchange differences and Other gains/(losses) which increased CLP 4,159 million mainly explained by lower Foreign currency exchange differences inthe Q4’14 period compared to the Q4’13 period as the currencies devaluated less in the current period. Partially offset by ·Net financial expenses which increased CLP 2,431 million from a loss of CLP 2,953 million to a loss of CLP 5,384 million, mainly due to lower amount of Cash and Cash equivalent, partially compensated by lower financial debt. |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 5 of 18 |
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| ·Results as per adjustment units which decreased CLP 592 million from a loss of CLP 751 million to a loss of CLP 1,343 million, mainly explained by a higher increase of the UF withinQ4’14 compared to Q4’13 periods. |
2014 | Increased CLP 7,904 million from a loss of CLP 20,656 million to a loss of CLP 12,752 million, mostly due to lower Net financial expenses, and lower Foreign currency exchange differences and higher Other gains, partially offset by lower Results as per adjustment units, and lower Equity and Income of JVs and associates |
INCOME TAXES
Q4’14 | Decreased CLP 6,855 million, mainly due to lower results in the Río de la Plata and Chile Operating segments. |
2014 | Decreased CLP 2,426 million mostly explained by price-level restatements of the tax equity due to adjustments for inflation. On September 29, 2014 Act No. 20,780 was published in Chile, regarding the socalled “Tax reform” which introduces amendments, among others, to the Income taxsystem. The said Act provides that corporations will apply by default the "Partially Integrated System", unless a future Extraordinary Shareholders Meeting agrees to optfor the "Attributed Income Regime”. The Act provides for the "Partially Integrated System" a gradual increase in the First Category Income tax rate, going from 20% to 21% for the business year 2014, to 22.5% for the business year 2015, to 24% for the business year 2016, to 25.5% for the business year 2017 and to 27% starting 2018 business year. The difference between assets and liabilities for deferred taxes which occur as a direct effect of the increase in the First Category Income tax rate introduced by Act No.20,780 and according to the Circular Letter N°856 (“Oficio Circular” N°856) of theChilean Superintendence of Securities and Insurance ("SVS"), has been accounted against Equity, under Retained earnings. As of September 30, 2014, the total effectregistered against the Company’s equity amounted to CLP 14,395 millionand CLP 126 million in the Consolidated Statement of Income. The effect of applying the new rate of 21%, applicable to count from January 1st, 2014, generated a higher charge to results of CLP 1,359 million. |
NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF PARENT COMPANY
Q4’14 | Decreased 12.3% to CLP 40,600 million mostly explained by a lower result partially compensated by lower Income taxes. |
2014 | Decreased 2.8% to CLP 119,557 million mostly explained by lower results partially compensated by lower Income taxes. |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 6 of 18 |
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The following schedule details the effect of the consolidation of the Paraguayan operation acquisition in December 2013. For better insight, Proforma refers to consolidated results as reported for the year.
FOURTH QUARTER | As reported | | Paraguay Effect(1) | | Proforma(2) | | Total(3) | | Organic(4) |
(In ThHL or CLP million unless stated otherwise) | 2014 | 2013 | | | 2014 | 2013 | | Change% | | Change% |
Volumes | 6,839 | 6,728 | | 141 | | 6,697 | 6,728 | | 1.6 | | (0.5) |
Net sales | 395,649 | 372,966 | | 10,042 | | 385,607 | 372,966 | | 6.1 | | 3.4 |
Net sales (CLP/HL) | 57,856 | 55,436 | | 70,976 | | 57,579 | 55,436 | | 4.4 | | 3.9 |
Cost of sales | (176,000) | (157,775) | | (6,124) | | (169,876) | (157,775) | | 11.6 | | 7.7 |
% of net sales | 44.5 | 42.3 | | 61.0 | | 44.1 | 42.3 | | | | |
Gross profit | 219,649 | 215,191 | | 3,918 | | 215,731 | 215,191 | | 2.1 | | 0.3 |
% of net sales | 55.5 | 57.7 | | 39.0 | | 55.9 | 57.7 | | | | |
MSD&A | (157,283) | (141,446) | | (2,616) | | (154,667) | (141,446) | | 11.2 | | 9.3 |
% of net sales | 39.8 | 37.9 | | 26.1 | | 40.1 | 37.9 | | | | |
Other operating income/(expenses) | 703 | 2,965 | | 11 | | 692 | 2,965 | | (76.3) | | (76.7) |
Normalized EBIT | 63,069 | 76,710 | | 1,313 | | 61,755 | 76,710 | | (17.8) | | (19.5) |
Normalized EBIT margin | 15.9 | 20.6 | | 13.1 | | 16.0 | 20.6 | | | | |
Normalized EBITDA | 81,931 | 93,559 | | 1,753 | | 80,179 | 93,559 | | (12.4) | | (14.3) |
Normalized EBITDA margin | 20.7 | 25.1 | | 17.5 | | 20.8 | 4,647.7 | | | | |
(1) Effect of excluding Paraguay's results from the quarter As reported. |
(2) Excludes the mentioned effects for the period. |
(3) Total Change refers to As reported figures variation. |
(4) Organic Change refers to as Proforma figures variation. |
YTD AS OF DECEMBER | As reported | | Paraguay Effect(1) | | Proforma(2) | | Total(3) | | Organic(4) |
(In ThHL or CLP million unless stated otherwise) | 2014 | 2013 | | | 2014 | 2013 | | Change% | | Change% |
Volumes | 22,895 | 21,916 | | 456 | | 22,439 | 21,916 | | 4.5 | | 2.4 |
Net sales | 1,297,966 | 1,197,227 | | 30,192 | | 1,267,774 | 1,197,227 | | 8.4 | | 5.9 |
Net sales (CLP/HL) | 56,692 | 54,629 | | 66,144 | | 56,499 | 54,629 | | 3.8 | | 3.4 |
Cost of sales | (604,537) | (536,697) | | (19,567) | | (584,969) | (536,697) | | 12.6 | | 9.0 |
% of net sales | 46.6 | 44.8 | | 64.8 | | 46.1 | 44.8 | | | | |
Gross profit | 693,429 | 660,530 | | 10,625 | | 682,805 | 660,530 | | 5.0 | | 3.4 |
% of net sales | 53.4 | 55.2 | | 35.2 | | 53.9 | 55.2 | | | | |
MSD&A | (535,603) | (473,524) | | (9,306) | | (526,297) | (473,524) | | 13.1 | | 11.1 |
% of net sales | 41.3 | 39.6 | | 30.8 | | 41.5 | 39.6 | | | | |
Other operating income/(expenses) | 23,721 | 4,249 | | (25) | | 23,746 | 4,249 | | N/A | | N/A |
Normalized EBIT | 181,548 | 191,255 | | 1,294 | | 180,254 | 191,255 | | (5.1) | | (5.8) |
Normalized EBIT margin | 14.0 | 16.0 | | 4.3 | | -14.2 | -16.0 | | | | |
Normalized EBITDA | 250,155 | 255,502 | | 2,980 | | 247,175 | 255,502 | | (2.1) | | (3.3) |
Normalized EBITDA margin | 19.3 | 21.3 | | 9.9 | | 19.5 | 21.3 | | | | |
(1) Effect of excluding Paraguay's results from the quarter As reported. |
(2) Excludes the mentioned effects for the period. |
(3) Total Change refers to As reported figures variation. |
(4) Organic Change refers to as Proforma figures variation. |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 7 of 18 |
| PRESS RELEASE | |
During 2014 CCU recorded at an EBIT level the effect of CLP 1,627 million as Exceptional items associated with several restructuring processes across Operating segments.
The following schedules show the EBIT/EBITDA, both after Exceptional items:
| | EBIT (million CLP) | EBIT margin |
| | Q4'14 | Mix | Q4'13 | Mix | Total Change% | Organic Change% | Q4'14 | Q4'13 | Total Change(bps) | Organic Change(bps) |
1. Chile Operating segment | 44,980 | 73.2% | 47,068 | 63.8% | (4.4) | (4.4) | 18.2% | 20.0% | (186) | (220) |
2. Río de la Plata Operating segment | 12,335 | 20.1 % | 20,989 | 28.5 % | (41.2) | (47.5) | 11.2 % | 20.7 % | (953) | (904) |
3. Wine Operating segment | 4,950 | 8.1% | 3,853 | 5.2% | 28.5 | 28.5 | 11.7% | 10.0% | 163 | 163 |
4. Other/Eliminations | (823) | (1.3)% | 1,810 | 2.5 % | (145.5) | (145.5) | - | - | - | - |
TOTAL | 61,441 | 100.0% | 73,720 | 100.0% | (16.7) | (18.4) | 15.5% | 19.8% | (424) | (455) |
| | EBITDA (million CLP) | EBITDA margin |
| | Q4'14 | Mix | Q4'13 | Mix | Total Change% | Organic Change% | Q4'14 | Q4'13 | Total Change(bps) | Organic Change(bps) |
1. Chile Operating segment | 55,569 | 69.2% | 57,071 | 63.0% | (2.6) | (2.6) | 22.5% | 24.3% | (184) | (184) |
2. Río de la Plata Operating segment | 15,472 | 19.3 % | 23,274 | 25.7 % | (33.5) | (41.1) | 14.1 % | 23.0 % | (894) | (928) |
3. Wine Operating segment | 6,866 | 8.5% | 5,963 | 6.6% | 15.1 | 15.1 | 16.2% | 15.5% | 66 | 66 |
4. Other/Eliminations | 2,397 | 3.0 % | 4,261 | 4.7 % | (43.7) | (43.7) | - | - | - | - |
TOTAL | 80,304 | 100.0% | 90,569 | 100.0% | (11.3) | (13.3) | 20.3% | 24.3% | (399) | (391) |
| | EBIT (million CLP) | EBIT margin |
| | YTD '14 | Mix | YTD '13 | Mix | Total Change% | Organic Change% | YTD '14 | YTD '13 | Total Change(bps) | Organic Change(bps) |
1. Chile Operating segment | 129,740 | 72.1% | 147,367 | 78.3% | (12.0) | (12.0) | 15.6% | 19.3% | (363) | (374) |
2. Río de la Plata Operating segment | 28,152 | 15.6 % | 26,693 | 14.2 % | 5.5 | 0.6 | 9.4 % | 9.5 % | (6) | 52 |
3. Wine Operating segment | 24,780 | 13.8% | 12,913 | 6.9% | 91.9 | 91.9 | 14.4% | 8.5% | 590 | 590 |
4. Other/Eliminations | (2,752) | (1.5)% | 1,292 | 0.7 % | 313.0 | (313.0) | - | - | - | - |
TOTAL | 179,920 | 100.0% | 188,266 | 100.0% | (4.4) | (5.1) | 13.9% | 15.7% | (186) | (164) |
| | EBITDA (million CLP) | EBITDA margin |
| | YTD '14 | Mix | YTD '13 | Mix | Total Change% | Organic Change% | YTD '14 | YTD '13 | Total Change(bps) | Organic Change(bps) |
1. Chile Operating segment | 168,573 | 67.8% | 184,902 | 73.2% | (8.8) | (8.8) | 20.3% | 24.2% | (386) | (386) |
2. Río de la Plata Operating segment(1) | 39,347 | 15.8 % | 36,651 | 14.5 % | 7.4 | (0.8) | 13.1 % | 13.0 % | 15 | 52 |
3. Wine Operating segment | 31,896 | 12.8% | 20,152 | 8.0% | 58.3 | 58.3 | 18.5% | 13.2% | 527 | 527 |
4. Other/Eliminations | 8,713 | 3.5 % | 10,808 | 4.3 % | (19.4) | (19.4) | - | - | - | - |
TOTAL | 248,528 | 100.0% | 252,512 | 100.0% | (1.6) | (2.8) | 19.1% | 21.1% | (194) | (172) |
(1) Includes the effect of CLP 18,882 million at EBITDA level from agreements reached by the Argentine subsidiary Compañía Industrial Cervecera S.A. ("CICSA") with Cervecería Modelo S. de R.L. de CV. and Anheuser-Busch LLC, both ABINBEV affiliates, as of May 28th, 2014. On June 7th it has been terminated: i) the contract which allows CICSA to import and distribute on an exclusive basis, Corona and Negra Modelo beers in Argentina, and ii) the license for the production and distribution of Budweiser beer in Uruguay |
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 8 of 18 |
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FORTH QUARTER OPERATING SEGMENT HIGHLIGHTS (Exhibits 3 & 4) |
Net salesincreased 5.4% to CLP 247,414 million as a result of 4.8% higher average prices coupled with 0.5% higher sales Volumes.
Normalized EBITdecreased 6.0% to CLP 44,980 million due to 7.8% higher MSD&A expenses and 7.7% higher Cost of sales, partially compensated by 5.4% higher Net sales. As a percentage of Net sales, Cost of sales increased from 44.0% to 45.0%, as the local currency devaluated 16% on average against the USD in the same quarter of last year. MSD&A, as a percentage of Net sales, increased from 36.0% to 36.8%, mainly due to higher marketing expenses. The Normalized EBIT margin decreased from 20.4% to 18.2%.
Normalized EBITDAdecreased 3.9% to CLP 55,569 million and the Normalized EBITDA margin decreased from 24.6% to 22.5%.
Comments: The Chile Operating segment showed 5.4% Net sales growth, in spite of weaker private consumption in Chile–with an estimated IMACEC6for the quarter of 1.8%- and the Chilean tax reform becoming effective on October 1st. Still, we increased marketing expenses, consistent with our long term strategy for developing strong brands.
We continued in the right path with our strategy to build strong portfolios through high quality products, innovation and brands, with highlights on the effective introduction of Sol beer. In the Non-alcoholic categories, we launched several brand extensions, such as Kem Xtreme sugarfree, new flavors of Watt’s nectar and Lipton Ice Tea amongst others, and executed valueadded promotions for returnable packaging in our carbonated soft drinks offering. Finally, in Spirits, besides new packaging and value added promotions for several SKUs, we launched Campanario Blanco.
6 IMACEC =Indice Mensual de Actividad Económica(Monthly Industrial Index on Economic Activity) is calculated by Chile’s Central Bank.
Estimate based on market consensus.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 9 of 18 |
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Net sales,measured in Chilean pesos, increased 8.7% to CLP 110,066 million as a result of 4.9% higher sales Volume and 3.7% increase in average prices. Organically, Net sales decreased 1.2% as a result of 3.5% lower sales Volumes partially compensated by 2.4% higher average prices measured in CLP terms.
Normalized EBITmeasured in Chilean pesos, decreased to CLP 13,549 million as a result of 24.7% higher Cost of sales and 18.3% higher MSD&A expenses, partially compensated by 8.7% higher Net sales. The Normalized EBIT margin decreased from 21.3% to 12.3%. Organically, the Normalized organic EBIT margin decreased from 21.3% to 12.2%.
Normalized EBITDA, measured in Chilean pesos, decreased 29.9% to CLP 16,686 million and the Normalized EBITDA margin decreased from 23.5% to 15.2%. Organically, the Normalized EBITDA decreased 37.3% and the Normalized organic EBITDA margin decreased from 23.5% to 14.9%.
Comments:The Río de la Plata Operating segment continues to face tough macroeconomic conditions particularly in Argentina: high devaluation of the local currencyagainst Q4’13, slowdown of private consumption, high inflation, and restrictions for pricing actions and imports. Organic Volumes decrease was mainly driven by the slowdown of Uruguay and Argentina consumption.
Continuing with the innovation strategy, we must highlight the introduction of one way packaging in relevant brands in our Argentine beer portfolio. Furthermore, the integration of the Paraguay operation keeps showing top line growth, highlighting the introduction of Watts Light and the introduction of Kunstmann beer brand.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 10 of 18 |
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Net salesincreased 10.5% to CLP 42,469 million due to 8.8% higher average price, coupled with 1.5% higher sales Volumes7.
NormalizedEBITincreased 19.9% to CLP 4,950 million mainly due to higher average prices, positively affected by the devaluation of the Chilean peso. Cost of sales increased 11.6% mainly due to higher cost of wine partially offset by cost reduction initiatives, while MSD&A expenses increased 6.7% mainly due to higher marketing expenses, aligned with our brand building strategy. Normalized EBIT margin increased from 10.7% to 11.7%.
NormalizedEBITDAincreased 10.0% to CLP 6,866 million and the Normalized EBITDA margin remains flat in 16.2%.
Comments:Fourth quarter Wine Operating segment Net sales results are explained by: a) the good performance in the export market, mainly driven by Asia and Latin America, and b) in the domestic market, we consolidated our leading position in value market share terms.
During November we began with an operational expansion plan, which contemplates to nearly double the current production capacity of the Molina Plant, with infrastructure and technology that will will help to drive our future opportunities.
2014 was a very positive year for our Wine Operating segment including top line growth of 13.2%, explained not only by currency devaluation but explained by volume growth and mix improvement. As a consequence, Normalized EBITDA grew 56.1% reaching CLP 31,896 million. In addition to these excellent results, our subsidiary Viña San Pedro Tarapaca wasawarded as the “Winery of the Year 2014” by Wines of Chile. This recognitionresponds to our performance and important progress such as our enologic excellence and the solid commitment with sustainability in our operations.
7Excludes bulk wine
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 11 of 18 |
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FURTHER INFORMATION AND EXHIBITS |
ABOUT CCU
CCU is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. CCU is the largest Chilean brewer, the second-largest Chilean soft drinks producer and the largest Chilean water and nectar producer, the second-largest Argentine brewer, the second-largest Chilean wine producer and the largest pisco distributor. It also participates in the HOD, rum and confectionery industries in Chile, in the beer, water and soft drinks industries in Uruguay, and in the soft drinks, water and nectar industries and beer distribution in Paraguay and Bolivia. The Company has licensing and / or distribution agreements with Heineken Brouwerijen B.V., Anheuser-Busch Incorporated, PepsiCo Inc., Schweppes Holdings Limited, Guinness Brewing Worldwide Limited, Société des Produits Nestlé S.A., Pernod Ricard, Compañía Pisquera Bauzá S.A. and Coors Brewing Company. For further information, visit www.ccu.cl.
CAUTIONARY STATEMENT
Statements made in this press release that relate to CCU’s future performance or financialresults 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 setforth in CCU’s annual report on Form 20-F filed with the US Securities and Exchange Commission and in the annual report submitted to the SVS and available in our web page.
GLOSSARY
Operating segments
The Operating segments are defined with respect to its revenues in the geographic areas of commercial activity:
- Chile: This segment commercializes Beer, Non Alcoholic Beverages and Spirits in theChilean market.
- Río de la Plata: This segment commercializes Beer, Cider, Non Alcoholic Beveragesand Spirits in the Argentinean, Uruguayan and Paraguayan market.
- Wine: This segment commercializes Wine, mainly in the export market reaching over 80countries.
- Other/Eliminations:It considers the non-allocated corporate overhead expenses andthe result of the logistics subsidiary.
Cost of sales
Formerly referred to as Cost of Goods Sold (COGS), Cost of sales includes direct costs and manufacturing expenses.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 12 of 18 |
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Earnings Per Share (EPS)
Net profit divided by the weighted average number of shares during the year.
EBIT
Stands for Earnings Before Interest and Taxes, and for management purposes it is defined, as earnings before other gains (losses), net financial expenses, equity and income of joint ventures, foreign currency exchange differences, results as per adjustment units and income taxes. EBIT is equivalent to Operating Result used in the 20-F Form.
EBITDA
EBITDA represents EBIT plus depreciation and amortization. EBITDA is not an accounting measure under IFRS. When analyzing the operating performance, investors should use EBITDA in addition to, not as an alternative for Net income, as this item is defined by IFRS.
Investors should also note that CCU’s presentation of EBITDA may not be comparable tosimilarly 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) beforeexceptional items.
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 in Chile.
Office Address: Vitacura 2670, 23rd Floor, Santiago, Chile Bolsa de Comercio de Santiago: CCU NYSE: CCU | Page 13 of 18 |
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Exhibit 1: Income Statement (Fourth Quarter 2014) |
Fourth Quarter | 2014 | 2013 | 2014 | 2013 | Total | Organic |
| (CLP million) | (USD million)(1) | Change % | Change % |
Net sales | 395,649 | 372,966 | 661.3 | 623.4 | 6.1 | 3.4 |
Cost of sales | (176,000) | (157,775) | (294.2) | (263.7) | 11.6 | 7.7 |
% of net sales | 44.5 | 42.3 | 44.5 | 42.3 | - | - |
Gross profit | 219,649 | 215,191 | 367.1 | 359.7 | 2.1 | 0.3 |
MSD&A | (157,283) | (141,446) | (262.9) | (236.4) | 11.2 | 9.3 |
% of net sales | 39.8 | 37.9 | 0.1 | 0.1 | - | - |
Other operating income/(expenses) | 703 | 2,965 | 1.2 | 5.0 | (76.3) | (76.7) |
Normalized EBIT | 63,069 | 76,710 | 105.4 | 128.2 | (17.8) | (19.5) |
Normalized EBIT margin | 16 | 21 | 15.9 | 20.6 | - | - |
Exceptional items | (1,627) | (2,989) | (2.7) | (5.0) | - | - |
EBIT | 61,441 | 73,720 | 102.7 | 123.2 | (16.7) | (18.4) |
EBIT margin | 15.5 | 19.8 | 15.5 | 19.8 | - | - |
Net financial expenses | (5,384) | (2,953) | (9.0) | (4.9) | 82.3 | 82.7 |
Equity and income of JVs and associated | (184) | 148 | (0.3) | 0.2 | N/A | N/A |
Foreign currency exchange differences | 961 | (3,026) | 1.6 | (5.1) | (131.8) | (129.3) |
Results as per adjustment units | (1,343) | (751) | (2.2) | (1.3) | 78.8 | 78.8 |
Other gains/(losses) | 42 | (130) | 0.1 | (0.2) | (132.1) | (331.0) |
Total Non-operating result | (5,909) | (6,713) | (9.9) | (11.2) | (12.0) | (18.5) |
Income/(loss) before taxes | 55,533 | 67,008 | 92.8 | 112.0 | (17.1) | (18.4) |
Income taxes | (10,032) | (16,886) | (16.8) | (28.2) | (40.6) | (41.4) |
Net income for the year | 45,501 | 50,121 | 76.0 | 83.8 | (9.2) | (10.7) |
| | | | | | | |
Normalized net income attributable to: | | | | | | |
The equity holders of the parent | 41,798 | 48,606 | 69.9 | 81.2 | (14.0) | (18.0) |
| | | | | | |
Net income attributable to: | | | | | | |
The equity holders of the parent | 40,600 | 46,292 | 67.9 | 77.4 | (12.3) | (13.9) |
Non-controlling interest | 4,901 | 3,829 | 8.2 | 6.4 | 28.0 | 28.0 |
| | | | | | |
Normalized EBITDA | 81,931 | 93,559 | 136.9 | 156.4 | (12.4) | (14.3) |
Normalized EBITDA margin | 20.7 | 25.1 | 20.7 | 25.1 | - | - |
EBITDA | 80,304 | 90,569 | 134.2 | 151.4 | (11.3) | (14.3) |
EBITDA margin | 20.3 | 24.3 | 20.3 | 24.3 | - | - |
| | | | | | |
OTHER INFORMATION | | | | | | |
Number of shares(2) | 369,502,872 | 322,964,121 | 369,502,872 | 322,964,121 | | |
Shares per ADR | 2 | 2 | 2 | 2 | | |
| | | | | | |
Normalized Earnings per share | 113.1 | 150.5 | 0.2 | 0.3 | (24.8) | (28.3) |
Earnings per share | 109.9 | 143.3 | 0.18 | 0.24 | (23.3) | (28.3) |
Normalized Earnings per ADR | 226.2 | 301.0 | 0.38 | 0.50 | (24.8) | (28.3) |
Earnings per ADR | 219.8 | 286.7 | 0.37 | 0.48 | (23.3) | (28.3) |
| | | | | | |
Depreciation | 18,863 | 16,849 | 31.5 | 28.2 | 12.0 | 9.3 |
Capital Expenditures | 52,291 | 33,362 | 87.4 | 55.8 | 56.7 | |
(1) Average Exchange rate for the period: US$1.00 = CLP 598,32 |
(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 14 of 18 |
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Exhibit 2: Income Statement (Twelve months ended on December 31, 2014) |
YTD AS OF DECEMBER | 2014 | 2013 | 2014 | 2013 | Total | Organic |
| (CLP million) | (USD million)(1) | Change % | Change % |
Net sales | 1,297,966 | 1,197,227 | 2,276.5 | 2,099.8 | 8.4 | 5.9 |
Cost of sales | (604,537) | (536,697) | (1,060.3) | (941.3) | 12.6 | 9.0 |
% of net sales | 46.6 | 44.8 | 0.1 | 0.1 | - | - |
Gross profit | 693,429 | 660,530 | 1,216.2 | 1,158.5 | 5.0 | 3.4 |
MSD&A | (535,603) | (473,524) | (939.4) | (830.5) | 13.1 | 11.1 |
% of net sales | 41.3 | 39.6 | 0.1 | 0.1 | - | - |
Other operating income/(expenses) | 23,721 | 4,249 | 41.6 | 7.5 | N/A | N/A |
Normalized EBIT | 181,548 | 191,255 | 318.4 | 335.4 | (5.1) | (5.8) |
Normalized EBIT margin | 14.0 | 16.0 | 0.0 | 0.0 | - | - |
Exceptional items | (1,627) | (2,989) | (2.9) | (5.2) | - | - |
EBIT | 179,920 | 188,266 | 315.6 | 330.2 | (4.4) | (5.1) |
EBIT margin | 13.9 | 15.7 | 0.0 | 0.0 | - | - |
Net financial expenses | (10,821) | (15,830) | (19.0) | (27.8) | (31.6) | (31.2) |
Equity and income of JVs and associated | (1,196) | 309 | (2.1) | 0.5 | N/A | N/A |
Foreign currency exchange differences | (613) | (4,292) | (1.1) | (7.5) | 85.7 | 82.3 |
Results as per adjustment units | (4,159) | (1,802) | (7.3) | (3.2) | 130.8 | 130.8 |
Other gains/(losses) | 4,037 | 959 | 7.1 | 1.7 | 321.0 | 352.8 |
Total Non-operating result | (12,752) | (20,656) | (22.4) | (36.2) | (38.3) | (43.6) |
Income/(loss) before taxes | 167,168 | 167,609 | 293.2 | 294.0 | (0.3) | (0.4) |
Income taxes | (32,279) | (34,705) | (56.6) | (60.9) | (7.0) | (7.5) |
Net income for the year | 134,889 | 132,905 | 236.6 | 233.1 | 1.5 | 1.5 |
| | | | | | | |
Normalized net income attributable to: | | | | | | |
The equity holders of the parent | 120,755 | 125,350 | 211.8 | 219.9 | (3.7) | (4.6) |
| | | | | | |
Net income attributable to: | | | | | | |
The equity holders of the parent | 119,557 | 123,036 | 209.7 | 215.8 | (2.8) | (2.8) |
Non-controlling interest | 15,332 | 9,869 | 26.9 | 17.3 | 55.4 | 55.4 |
| | | | | | |
Normalized EBITDA | 250,155 | 255,502 | 438.8 | 448.1 | (2.1) | (3.3) |
Normalized EBITDA margin | 19.3 | 21.3 | 19.3 | 21.3 | - | - |
EBITDA | 248,528 | 252,512 | 435.9 | 442.9 | (1.6) | (2.8) |
EBITDA margin | 19.1 | 21.1 | 19.1 | 21.1 | - | - |
| | | | | | |
OTHER INFORMATION | | | | | | |
Number of shares(2) | 369,502,872 | 320,006,296 | 369,502,872 | 320,006,296 | | |
Shares per ADR | 2 | 2 | 2 | 2 | | |
| | | | | | |
Normalized Earnings per share | 326.8 | 391.7 | 0.6 | 0.7 | (16.6) | (17.4) |
Earnings per share | 323.6 | 384.5 | 0.6 | 0.7 | (15.8) | (17.4) |
Normalized Earnings per ADR | 653.6 | 783.4 | 1.1 | 1.4 | (16.6) | (17.4) |
Earnings per ADR | 647.1 | 769.0 | 1.1 | 1.3 | (15.8) | (17.4) |
| | | | | | |
Depreciation | 68,608 | 64,246 | 120.3 | 112.7 | 6.8 | 4.2 |
Capital Expenditures | 230,080 | 124,559 | 403.5 | 218.5 | 84.7 | |
(1) Average Exchange rate for the period: US$1.00 = CLP 570,15 |
(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 15 of 18 |
| PRESS RELEASE | |
Exhibit 3: Segment Information (Fourth Quarter 2014) |
| 1. Chile Operating segment(2) | | 2. Río de la Plata Operating segment(1) | | 3. Wine Operating segment |
Fourth Quarter | | |
(In ThHL or CLP million unless stated otherwise) | 2014 | 2013 | Total % | Organic % | | 2014 | 2013 | Total % | Organic % | | 2014 | 2013 | Total % | Organic % |
Volumes | 4,766 | 4,742 | 0.5 | 0.5 | | 1,765 | 1,683 | 4.9 | (3.5) | | 308 | 303 | 1.5 | 1.5 |
Net sales | 247,414 | 234,833 | 5.4 | 5.4 | | 110,066 | 101,218 | 8.7 | (1.2) | | 42,469 | 38,447 | 10.5 | 10.5 |
Net sales (CLP/HL) | 51,917 | 49,526 | 4.8 | 4.8 | | 62,360 | 60,147 | 3.7 | 2.4 | | 137,913 | 126,707 | 8.8 | 8.8 |
Cost of sales | (111,262) | (103,320) | 7.7 | 7.7 | | (46,692) | (37,450) | 24.7 | 8.3 | | (24,096) | (21,584) | 11.6 | 11.6 |
% of net sales | 45.0 | 44.0 | | | | 42.4 | 37.0 | | | | 56.7 | 56.1 | | |
Gross profit | 136,152 | 131,513 | 3.5 | 3.5 | | 63,374 | 63,768 | (0.6) | (6.8) | | 18,372 | 16,863 | 8.9 | 8.9 |
% of net sales | 55.0 | 56.0 | | | | 57.6 | 63.0 | | | | 43.3 | 43.9 | | |
MSD&A | (91,172) | (84,567) | 7.8 | 7.8 | | (50,408) | (42,614) | 18.3 | 12.2 | | (13,427) | (12,585) | 6.7 | 6.7 |
% of net sales | 36.8 | 36.0 | | | | 45.8 | 42.1 | | | | 31.6 | 32.7 | | |
Other operating income/(expenses) | 0 | 902 | 100.0 | 100.0 | | 584 | 378 | 54.3 | 51.3 | | 4 | (150) | (102.7) | (102.7) |
Normalized EBIT | 44,980 | 47,849 | (6.0) | (6.0) | | 13,549 | 21,532 | (37.1) | (43.2) | | 4,950 | 4,128 | 19.9 | 19.9 |
Normalized EBIT margin | 18.2 | 20.4 | | | | 12.3 | 21.3 | | | | 11.7 | 10.7 | | |
Exceptional items | | (780) | (100.0) | (100.0) | | (1,215) | (543) | 123.6 | 123.6 | | | (276) | (100.0) | (100.0) |
EBIT | 44,980 | 47,068 | (4.4) | (4.4) | | 12,335 | 20,989 | (41.2) | (47.5) | | 4,950 | 3,853 | 28.5 | 28.5 |
EBIT Margin | 18.2 | 20.0 | | | | 11.2 | 20.7 | | | | 11.7 | 10.0 | | |
Normalized EBITDA | 55,569 | 57,851 | (3.9) | (3.9) | | 16,686 | 23,817 | (29.9) | (37.3) | | 6,866 | 6,239 | 10.0 | 10.0 |
Normalized EBITDA margin | 22.5 | 24.6 | | | | 15.2 | 23.5 | | | | 16.2 | 16.2 | | |
EBITDA | 55,569 | 57,071 | (2.6) | (2.6) | | 15,472 | 23,274 | (33.5) | (41.1) | | 6,866 | 5,963 | 15.1 | 15.1 |
EBITDA Margin | 22.5 | 24.3 | | | | 14.1 | 23.0 | | | | 16.2 | 15.5 | | |
| | | | | | | | | | | | | | | |
| 4. Other/eliminations(2) | | Total | | | | | |
Fourth Quarter | | | | | | |
(In ThHL or CLP million unless stated otherwise) | 2014 | 2013 | Total % | Organic % | | 2014 | 2013 | Total % | Organic % | | | | | |
Volumes | | | | | | 6,839 | 6,728 | 1.6 | (0.5) | | | | | |
Net sales | (4,299) | (1,533) | N/A | N/A | | 395,649 | 372,966 | 6.1 | 3.4 | | | | | |
Net sales (CLP/HL) | | | | | | 57,856 | 55,436 | 4.4 | 3.9 | | | | | |
Cost of sales | 6,050 | 4,579 | 32.1 | 32.1 | | (176,000) | (157,775) | 11.6 | 7.7 | | | | | |
% of net sales | | | | | | 44.5 | 42.3 | | | | | | | |
Gross profit | 1,751 | 3,046 | (42.5) | (42.5) | | 219,649 | 215,191 | 2.1 | 0.3 | | | | | |
% of net sales | | | | | | 55.5 | 57.7 | | | | | | | |
MSD&A | (2,276) | (1,680) | 35.5 | 35.5 | | (157,283) | (141,446) | 11.2 | 9.3 | | | | | |
% of net sales | | | | | | 39.8 | 37.9 | | | | | | | |
Other operating income/(expenses) | 115 | 1,835 | N/A | N/A | | 703 | 2,965 | (76.3) | (76.7) | | | | | |
Normalized EBIT | (410) | 3,200 | (112.8) | (112.8) | | 63,069 | 76,710 | (17.8) | (19.5) | | | | | |
Normalized EBIT margin | | | | | | 15.9 | 20.6 | | | | | | | |
Exceptional items | (413) | (1,390) | (70.3) | (70.3) | | (1,627) | (2,989) | (45.6) | (45.6) | | | | | |
EBIT | (823) | 1,810 | (145.5) | (145.5) | | 61,441 | 73,720 | (16.7) | (18.4) | | | | | |
EBIT Margin | - | - | - | - | | 15.5 | 19.8 | | | | | | | |
Normalized EBITDA | 2,810 | 5,651 | (50.3) | (50.3) | | 81,931 | 93,559 | (12.4) | (14.3) | | | | | |
Normalized EBITDA margin | | | | | | 20.7 | 25.1 | | | | | | | |
EBITDA | 2,397 | 4,261 | (43.7) | (43.7) | | 80,304 | 90,569 | (11.3) | (13.3) | | | | | |
EBITDA Margin | - | - | - | - | | 20.3 | 24.3 | | | | | | | |
| | | | | | | | | | | | | | |
(1) Organic excludes Paraguay's results from the Quarter as reported |
(2) Considers adjustments to eliminations from the Chile Operating segment which were included in the Other / Eliminations Operating segment |
| PRESS RELEASE | |
Exhibit 4: Segment Information (Twelve months ended on December 31, 2014) |
| 1. Chile Operating segment | | 2. Río de la Plata Operating segment(1) | | 3. Wine Operating segment |
YTD AS OF DECEMBER | | |
(In ThHL or CLP million unless stated otherwise) | 2014 | 2013 | Total % | Organic % | | 2014 | 2013 | Total % | Organic % | | 2014 | 2013 | Total % | Organic % |
Volumes | 16,214 | 15,570 | 4.1 | 4.1 | | 5,375 | 5,071 | 6.0 | (3.0) | | 1,306 | 1,274 | 2.5 | 2.5 |
Net sales | 830,341 | 765,196 | 8.5 | 8.5 | | 299,668 | 282,435 | 6.1 | (4.6) | | 172,349 | 152,255 | 13.2 | 13.2 |
Net sales (CLP/HL) | 51,212 | 49,145 | 4.2 | 4.2 | | 55,752 | 59,090 | (5.6) | (7.3) | | 131,932 | 119,495 | 10.4 | 10.4 |
Cost of sales | (383,559) | (343,230) | 11.7 | 11.7 | | (136,175) | (113,265) | 20.2 | 3.0 | | (97,524) | (92,864) | 5.0 | 5.0 |
% of net sales | 46.2 | 44.9 | | | | 45.4 | 40.1 | | | | 56.6 | 61.0 | | |
Gross profit | 446,783 | 421,965 | 5.9 | 5.9 | | 163,493 | 169,171 | (3.4) | (9.6) | | 74,825 | 59,391 | 26.0 | 26.0 |
% of net sales | 53.8 | 55.1 | | | | 54.6 | 59.9 | | | | 43.4 | 39.0 | | |
MSD&A | (317,765) | (275,203) | 15.5 | 15.5 | | (154,300) | (142,972) | 7.9 | 1.4 | | (50,284) | (46,036) | 9.2 | 9.2 |
% of net sales | 38.3 | 36.0 | | | | 51.5 | 50.6 | | | | 29.2 | 30.2 | | |
Other operating income/(expenses) | 722 | 1,385 | (47.8) | (47.8) | | 20,174 | 1,038 | N/A | N/A | | 239 | (166) | N/A | N/A |
Normalized EBIT | 129,740 | 148,148 | (12.4) | (12.4) | | 29,367 | 27,237 | 7.8 | 3.1 | | 24,780 | 13,189 | 87.9 | 87.9 |
Normalized EBIT margin | 15.6 | 19.4 | | | | 9.8 | 9.6 | | | | 14.4 | 8.7 | | |
Exceptional items | 0 | (780) | (100.0) | (100.0) | | (1,215) | (543) | 123.6 | 123.6 | | 0 | (276) | (100.0) | (100.0) |
EBIT | 129,740 | 147,367 | (12.0) | (12.0) | | 28,152 | 26,693 | 5.5 | 0.6 | | 24,780 | 12,913 | 91.9 | 91.9 |
EBIT margin | 15.6 | 19.3 | | | | 9.4 | 9.5 | | | | 14.4 | 8.5 | | |
Normalized EBITDA | 168,573 | 185,682 | (9.2) | (9.2) | | 40,561 | 37,194 | 9.1 | 1.0 | | 31,896 | 20,428 | 56.1 | 56.1 |
Normalized EBITDA margin | 20.3 | 24.3 | | | | 13.5 | 13.2 | | | | 18.5 | 13.4 | | |
EBITDA | 168,573 | 184,902 | (8.8) | (8.8) | | 39,347 | 36,651 | 7.4 | (0.8) | | 31,896 | 20,152 | 58.3 | 58.3 |
EBITDA margin | 20.3 | 24.2 | | | | 13.1 | 13.0 | | | | 18.5 | 13.2 | | |
| | | | | | | | | | | | | | | |
| 4. Other/eliminations | | Total | | | | | |
YTD AS OF DECEMBER | | | | | | |
(In ThHL or CLP million unless stated otherwise) | 2014 | 2013 | Total % | Organic % | | 2014 | 2013 | Total % | Organic % | | | | | |
Volumes | | | | | | 22,895 | 21,916 | 4.5 | 2.4 | | | | | |
Net sales | (4,391) | (2,660) | N/A | N/A | | 1,297,966 | 1,197,227 | 8.4 | 5.9 | | | | | |
Net sales (CLP/HL) | | | | | | 56,692 | 54,629 | 3.8 | 3.4 | | | | | |
Cost of sales | 12,720 | 12,663 | 0.5 | 0.5 | | (604,537) | (536,697) | 12.6 | 9.0 | | | | | |
% of net sales | | | | | | 46.6 | 44.8 | | | | | | | |
Gross profit | 8,329 | 10,003 | (16.7) | (16.7) | | 693,429 | 660,530 | 5.0 | 3.4 | | | | | |
% of net sales | | | | | | 53.4 | 55.2 | | | | | | | |
MSD&A | (13,254) | (9,313) | 42.3 | 42.3 | | (535,603) | (473,524) | 13.1 | 11.1 | | | | | |
% of net sales | | | | | | 41.3 | 39.6 | | | | | | | |
Other operating income/(expenses) | 2,586 | 1,992 | N/A | N/A | | 23,721 | 4,249 | N/A | N/A | | | | | |
Normalized EBIT | (2,339) | 2,682 | (187.2) | (187.2) | | 181,548 | 191,255 | (5.1) | (5.8) | | | | | |
Normalized EBIT margin | | | | | | 14.0 | 16.0 | | | | | | | |
Exceptional items | (413) | (1,390) | (70.3) | (70.3) | | (1,627) | (2,989) | (45.6) | (45.6) | | | | | |
EBIT | (2,752) | 1,292 | (313.0) | (313.0) | | 179,920 | 188,266 | (4.4) | (5.1) | | | | | |
EBIT margin | - | - | - | - | | 13.9 | 15.7 | | | | | | | |
Normalized EBITDA | 9,126 | 12,198 | (25.2) | (25.2) | | 250,155 | 255,502 | (2.1) | (3.3) | | | | | |
Normalized EBITDA margin | | | | | | 19.3 | 21.3 | | | | | | | |
EBITDA | 8,713 | 10,808 | (19.4) | (19.4) | | 248,528 | 252,512 | (1.6) | (2.8) | | | | | |
EBITDA margin | - | - | - | - | | 19.1 | 21.1 | | | | | | | |
(1) Organic excludes Paraguay's results from the YTD as reported |
| PRESS RELEASE | |
Exhibit 5: Balance Sheet | | | | | | |
| December 31 | December 31 | December 31 | December 31 | | Total Change% |
| 2014 | 2013 | 2014 | 2013 | |
| | (CLP million) | (US$ million)(1) | |
ASSETS | | | | | | |
Cash and cash equivalents | 214,775 | 408,853 | 354 | 674 | | (47.5) |
Other current assets | 470,615 | 409,644 | 776 | 675 | | 14.9 |
Total current assets | 685,390 | 818,497 | 1,130 | 1,349 | | (16.3) |
| | | | | | |
PP&E(net) | 833,171 | 680,994 | 1,373 | 1,122 | | 22.3 |
Other non current assets | 250,339 | 228,229 | 413 | 376 | | 9.7 |
Total non current assets | 1,083,511 | 909,223 | 1,786 | 1,499 | | 19.2 |
Total assets | 1,768,901 | 1,727,720 | 2,915 | 2,847 | | 2.4 |
| | | | | | |
LIABILITIES | | | | | | |
Short term financial debt | 65,318 | 120,488 | 108 | 199 | | (45.8) |
Other liabilities | 313,013 | 288,641 | 516 | 476 | | 8.4 |
Total current liabilities | 378,331 | 409,129 | 624 | 674 | | (7.5) |
| | | | | | |
Long term financial debt | 134,535 | 142,763 | 222 | 235 | | (5.8) |
Other liabilities | 107,535 | 91,584 | 177 | 151 | | 17.4 |
Total non current liabilities | 242,070 | 234,347 | 399 | 386 | | 3.3 |
Total Liabilities | 620,401 | 643,476 | 1,022 | 1,061 | | (3.6) |
| | | | | | |
EQUITY | | | | | | |
Paid-in capital | 562,693 | 562,693 | 927 | 927 | | - |
Other reserves | (75,051) | (65,882) | (124) | (109) | | (13.9) |
Retained earnings | 537,945 | 491,864 | 887 | 811 | | 9.4 |
Net equity attributable to parent company shareholders | 1,025,588 | 988,676 | 1,690 | 1,629 | | 3.7 |
Minority interest | 122,912 | 95,568 | 203 | 158 | | 28.6 |
Total equity | 1,148,500 | 1,084,244 | 1,893 | 1,787 | | 5.9 |
Total equity and liabilities | 1,768,901 | 1,727,720 | 2,915 | 2,847 | | 2.4 |
| | | | | | | |
OTHER FINANCIAL INFORMATION | | | | | | |
| | | | | | |
Total financial debt | 199,853 | 263,251 | 329 | 434 | | (24.1) |
| | | | | | |
Net Financial debt | (14,922) | (145,602) | (25) | (240) | | (89.8) |
| | | | | | |
Liquidity ratio | 1.81 | 2.00 | | | | |
Financial Debt / Capitalization | 0.15 | 0.20 | | | | |
Net Financial debt / EBITDA | (0.06) | (0.58) | | | | |
(1) Exchange rate as of December 31, 2014: US$1.00 = CLP 606,75 | | | | | | |
Page 18 of 18
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 4, 2015
