Compania Cervecerias Unidas reported a 0.1% rise in Q1 EBITDA, with Chile up 13.7% but Argentina and wine segments dragging performance.
Compania Cervecerias Unidas (NYSE:CCU) posted a 0.1% year-over-year increase in Q1 consolidated EBITDA, driven by a 13.7% rise in Chile but offset by an 18.6% decline in international operations and a 50.1% drop in wine. Net sales edged up 0.2%, as higher volumes were nearly erased by a 1.5% price decline in Chilean pesos due to currency effects in Argentina.
Gross profit rose 1.4%, with margins expanding 55 basis points on lower costs and efficiencies. EBITDA margin held steady at 16.1%, while net income fell 6.8%. Chile’s 3.9% top-line growth was volume-driven, with flat average prices attributed to a shift toward non-alcoholic products.
The Argentine peso’s 28.7% depreciation against the USD weighed on average prices, though revenue management initiatives provided partial relief.