• Full Year Consolidated EBITDA: CLP387,267 million, up 2.1% excluding nonrecurring gains; up 9.6% including nonrecurring gains.
• Full Year Consolidated Net Income: Increased 32.5% excluding nonrecurring gains; up 52.3% including nonrecurring gains.
• Q4 2024 Consolidated EBITDA: CLP182,621 million, a 65.2% increase.
• Q4 2024 Consolidated Net Income: CLP74,153 million, up 77.7%.
• Chile Operating Segment Revenue: Increased 9.9% with a 4.9% rise in average prices and 4.7% higher volumes.
• Chile Operating Segment EBITDA: Expanded 23%, with EBITDA margin up 208 basis points to 19.6%.
• International Business Operating Segment Organic Net Sales: Increased due to higher organic average prices despite an 11.5% contraction in organic volumes.
• Wine Operating Segment Revenue: Expanded 21.4% with a 21.7% rise in average prices; volumes were flat.
• Wine Operating Segment EBITDA: Grew 16%, though EBITDA margin decreased by 74 basis points.
• Colombia Joint Venture Volume: 2.3 million hectoliters in full year 2024, up 7.8%, achieving positive EBITDA.

• Warning! GuruFocus has detected 9 Warning Signs with CCU.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• United Breweries Co Inc (NYSE:CCU) delivered higher financial results in 2024 compared to 2023, with a strong turnaround in the second half of the year.
• Consolidated EBITDA for the full year increased by 2.1%, and net income expanded by 32.5%, excluding nonrecurring gains.
• The company successfully executed its regional plan, HerCCUles, which aligned the company under six pillars, resulting in positive EBITDA and net income growth.
• CCU strengthened its regional footprint by consolidating Aguas de Origen in Argentina and expanding its scale in Paraguay through a partnership with the Vierci Group.
• In quarter four 2024, CCU achieved a 65.2% increase in consolidated EBITDA, driven by solid performance across all operating segments.

Negative Points

• CCU faced a low 20s contraction in the beer and water industries in Argentina and flat volumes in the Chile Operating segment due to modest economic growth.
• The company experienced cost and expense pressures from the depreciation of local currencies against the US dollar.
• Quarterly volumes were down 0.1% in quarter four 2024, primarily due to a contraction in the international business operating segment.
• The Wine Operating segment saw a decline in EBITDA margin by 74 basis points despite a 21.4% top line expansion.
• The business scenario for 2025 is expected to remain volatile and uncertain, with a cautious outlook on economic growth in key markets.

Q & A Highlights

Q: Can you comment on the performance in Chile between premium and mainstream beer, and how do you expect the mix to behave this year? Also, how are you thinking about price elasticity in Chile? A: The mix between premium and mainstream beer in Chile remained stable between Q4 2024 and Q4 2023. The outlook for the industry is soft, with expected low single-digit growth. Regarding price elasticity, we increased prices by 4.9% to recover margins, and despite the soft volume, we have managed to increase prices while maintaining volume growth. (Felipe Dubernet Azocar, CFO)

Q: How has Argentina been performing so far in 2025, and what are your expectations going forward? A: After a significant volume decrease in Q2 and Q3 2024, Argentina showed improvement in Q4. We expect gradual recovery in scale, although it is unlikely to reach 2023 levels soon. The recovery will depend on macroeconomic factors, and we anticipate a gradual improvement over the next two to three years. (Felipe Dubernet Azocar, CFO)

Q: Should we expect margin recovery during 2025 and 2026, and will it come from price increases ahead of cost inflation? A: We aim to improve margins through revenue management and efficiencies. While external factors like exchange rates will impact margins, we plan to increase prices in line with inflation and rationalize promotions to recover profitability. (Felipe Dubernet Azocar, CFO)

Q: Can you comment on the Wine division's volume expectations and outlook for exports and domestic markets? Also, how is Colombia performing? A: For the Wine division, we expect export growth, especially with new commercial offices in key markets. In Chile, we maintain a strong market position. In Colombia, we saw high single-digit growth and positive EBITDA, driven by strong brand performance. We expect continued good performance. (Felipe Dubernet Azocar, CFO)

Q: What is the CapEx expectation for this year, and do you have any targets regarding CapEx versus EBITDA? A: CapEx will be slightly above depreciation, focusing on efficiencies and regulatory compliance rather than capacity expansion. We aim for CapEx as a percentage of net sales to be around 5.5%. We do not have a specific CapEx-to-EBITDA target, but we aim to maintain flexibility to adapt to industry needs. (Felipe Dubernet Azocar, CFO)

For the complete transcript of the earnings call, please refer to the full earnings call transcript.