Compañía Cervecerías Unidas S.A.

CCU reported consolidated net sales growth of 4.8% year over year, driven almost entirely by 6.4% higher average prices in CLP, while volumes fell 1.5%. Gross profit rose 6.8% and gross margin improved 76 basis points; MSD&A expenses rose 3.3% but fell 62 basis points as a percentage of net sales. Consolidated EBITDA increased 59.4%. Net income was hit by a CLP 6,068 million impairment loss related to Bolivia and by lower income taxes in Q2 2025 tied to a nonrecurring positive tax effect in Argentina. By segment, Chile net sales rose 1.5% and EBITDA increased 26.2%; international business net sales rose 15.7% and EBITDA loss improved 25.8%; wine net sales fell 14.1% and EBITDA dropped 61.9%. For balance sheet and capital allocation, leverage increased from 1.7x to 2.4x net financial debt/EBITDA after the Aguas Nestlé acquisition, and management said the dividend policy remains at least 50% of net income, with leverage expected to trend back toward the 1.5x-2.5x range if conditions improve.

The CEO framed the quarter as solid operationally but emphasized that CCU is operating in a “particularly challenging context.” He introduced the “Vamos por Más” strategy built around four pillars: increased business focus, operational synergies, greater agility, and accelerated transformation. He stressed that CCU will reorganize gradually through the year to preserve continuity while pushing multi-category growth, better consumer occasion targeting, and more digital/AI-enabled execution.

The CFO highlighted that pricing was the main revenue driver, with 6.4% higher average prices in CLP offsetting a 1.5% volume decline, and said revenue management actions supported pricing across segments. He also noted gross margin expansion of 76 basis points and that MSD&A rose only 3.3%, or fell 62 basis points as a share of sales, helped by logistics efficiencies even as distribution costs rose with oil prices and restructuring costs hit Argentina and wine. On capital structure, he said leverage moved to 2.4x net financial debt/EBITDA after funding the Aguas Nestlé acquisition with cash on hand, and reiterated a dividend policy of at least 50% of net income.

Analysts focused on Chile competition, Argentine beer demand, the new strategic plan, hedging policy, wine restructuring, Colombia, the Nestlé water transaction, and distribution costs. Management said Chile’s soft drinks market remains highly competitive but that better-for-you categories such as waters, flavored waters, juices, and functional drinks are growing and are a key strength for CCU; in Argentina, they expect volumes to recover in the second half versus a tough comparison base and said trends have improved since March. They also said hedging policy remains unchanged, Colombia remains a core growth market with room to expand, and the Aguas Nestlé deal gives CCU more flexibility in the water business but does not fundamentally change the operating strategy.