Compañía Cervecerías Unidas S.A. Q1 FY2026 earnings call

Started 2026 with strong results in Chile, but faced soft consumption in Argentina and weak wine business. Chile operating segment had 13.7% EBITDA growth, offset by declines in international business and wine segments. Consolidated net sales flat, volumes up 1.8% but average prices down. Gross profit grew 1.3%, gross margin improved 55 basis points. In Chile, non-alcoholic categories had high single-digit growth, alcoholic products had low single-digit decline. International business segment saw 6.7% decrease due to lower prices and volume contraction. Wine segment had 7.2% top-line drop, volume and price declines. Focused on building brand equity in Colombia joint venture

Consolidated net sales were flat, growing 0.2% by 1.8% higher volumes, almost fully offset by 1.5% lower average prices in Chilean vessels. Consolidated volumes were driven by a 3.9% expansion in the Chile operating segment, more than offsetting the decreases of 1.7% and 5.9% in the international business and wine operating segments. In Chile, top line expanded 3.9%, gross profit increased 10.2% and gross margin rose to 278 basis points. In the international business operating segment, NetSite recorded a 6.7% decrease. The wine operating segment posted a top-line drop of 7.2%

Will continue executing 2025-2027 strategic plan with pillars of profitability, growth, sustainability. Took proactive revenue management initiatives at end of quarter and will reinforce efficiency efforts and manage CapEx priorities

Volatile input costs including aluminum, oil, and packaging materials. Uncertain consumer demand due to inflationary pressures and geopolitical conflicts. Weak business context in Argentina and wine business with ongoing challenges

Q: Related to Chile's non-alcoholic growth drivers and volume outlook; A: Non-alcoholic growth due to consumer trends, water, juices, etc.; difficult to forecast future volume due to volatile scenario.

Q: Margin expansion sustainability and Argentina recovery; A: Margin expansion replicable but volatile; Argentina volumes soft in Q1, expecting better comparisons in future quarters.

Q: Wine business outlook; A: Declining domestic consumption, but export market has opportunities; no plan to sell wine business.

Q: Volume breakdown between alcoholic and non-alcoholic in Chile and international; A: Chile non-alcoholic high single-digit growth, alcoholic low single-digit decline; Argentina alcoholic volumes down, non-alcoholic mid-single digit decline