Compañía Cervecerías Unidas (CCL) Q1 2025 earnings summary

Executive summary

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

• Net sales increased 9.6% to CLP 817,671 million, with consolidated volume at 10.1 million HL, up 13% year-over-year, though organic volumes declined 1.8%.

• Profitability was driven by higher prices, efficiency initiatives, and international expansion, while maintaining a diversified beverage portfolio.

• Strategic focus remains on operational efficiency, growth, and sustainability through the 2025–2027 plan.

Financial highlights

• EBITDA rose 6% to CLP 131,554 million, with margin at 16.1%; net income reached CLP 57,778 million, up 10.7%.

• Organic EBITDA reached CLP 136 million, up 4.8% year-over-year.

• Gross profit grew 8.5% to CLP 382,181 million, but gross margin declined by 46–56 basis points due to higher costs.

• Non-operating loss widened to CLP 26,681 million, mainly from derivatives and higher financial expenses.

• Net financial debt/EBITDA improved to 1.51x; cash and cash equivalents increased to CLP 771,435 million.

Outlook and guidance

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

• Margin recovery is expected in Chile as input costs improve and efficiency programs advance.

• In Argentina, price increases are becoming more difficult as inflation slows; focus will shift to cost efficiencies.

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

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