Compania Cervecerias Unidas Q1 Earnings Call Highlights

Compania Cervecerias Unidas (NYSE:CCU) began 2026 with beardown results successful its Chile business, but softness successful Argentina and a crisp downturn successful vino weighed connected consolidated performance, Chief Financial Officer Felipe Dubernet said connected the company’s first-quarter net call.

Dubernet said consolidated EBITDA was fundamentally flat, rising 0.1% from the anterior year. The effect reflected a 13.7% summation successful EBITDA successful Chile, which was offset by declines of 18.6% successful the planetary concern conception and 50.1% successful the vino segment.

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Consolidated nett income roseate 0.2%, arsenic a 1.8% summation successful volumes was astir offset by a 1.5% alteration successful mean prices successful Chilean pesos. Dubernet said the little mean prices were chiefly owed to a antagonistic currency translation effect successful Argentina pursuing a 28.7% depreciation of the Argentine peso against the U.S. dollar, partially offset by gross absorption initiatives.

Gross nett accrued 1.4%, portion gross borderline improved 55 ground points, driven by little nonstop costs and efficiencies. MSD&A expenses were astir level successful Chilean pesos, though they roseate 23 ground points arsenic a percent of nett sales. EBITDA borderline remained unchangeable astatine 16.1%. Net income fell 6.8% from the anterior year.

Chile Drives First-Quarter Growth

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CCU’s Chile segment, its largest operating business, posted 3.9% top-line growth, driven by a 3.9% summation successful volumes. Average prices were flat, which Dubernet attributed to portfolio mix, peculiarly maturation successful non-alcoholic products specified arsenic water.

Non-alcoholic categories grew astatine a high-single-digit rate, portion alcoholic products, which see brew and spirits successful the Chile segment, declined by debased azygous digits. Dubernet said flavored low-alcohol ready-to-drink products grew astatine a low-double-digit rate.

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In effect to a question from Bank of America expert Fernando Olvera, Dubernet said brushed drinks were level to up precise debased azygous digits, portion different non-alcoholic categories performed better. Water, including enhanced and flavored h2o with earthy juices specified arsenic the Mas brand, grew astatine a double-digit rate. Juices grew mid-single digits, portion functional beverages, including vigor drinks and sports drinks, besides contributed to growth.

“This is much related to user trends,” Dubernet said, pointing to innovation and continued maturation successful enhanced water.

Chile’s gross nett roseate 10.2%, and gross borderline expanded 278 ground points. Dubernet cited the 8.1% appreciation of the Chilean peso against the U.S. dollar, which lowered U.S. dollar-denominated costs, on with procurement and manufacturing efficiencies. Those benefits were partially offset by higher aluminum prices. EBITDA successful Chile accrued 13.7%, and the EBITDA borderline expanded 173 ground points to 20.0%.