Compañía Cervecerías Unidas (CCL) Q1 2025 earnings summary

Executive summary

• Delivered higher financial results in Q1 2025, with EBITDA up 6.0% and net income up 10.7% year-over-year, despite a volatile environment and soft regional consumption.

• Organic consolidated net sales rose 3.0%, driven by a 4.9% increase in average prices, while organic volumes declined 1.8%.

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

• Strategic focus remains on profitability, growth, and sustainability, with ongoing revenue management and efficiency initiatives through 2027.

• Revenue management and efficiency initiatives drove profitability, especially in International Business.

Financial highlights

• Net sales for 1Q25 were CLP 817,671 million, a 9.6% increase year-over-year (3.0% organic).

• EBITDA reached CLP 131,554 million, up 6.0% (4.8% organic), with EBITDA margin at 16.1%.

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

• Gross margin slightly declined by 46–56 basis points due to higher cost of sales.

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

Outlook and guidance

• Management expects 2025 to remain challenging and volatile, with continued focus on margin recovery and efficiency.

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

• Alcoholic beverage volumes are expected to face ongoing pressure due to global consumption trends.

• Anticipates improved Q2 results due to a weak comparison base in 2024.

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