CCU · Compañía Cervecerías Unidas S.A.

CCU's 1Q26 results showed resilience in its core Chile operating segment, where volumes expanded 3.9% driven by high-single-digit growth in non-alcoholic categories like water and market share gains across alcoholic and non-alcoholic beverages, despite low-single-digit declines in beer and spirits offset by low-double-digit growth in flavored low-alcohol RTD products. This led to 3.9% net sales growth with flat prices due to portfolio mix, 10.2% gross profit increase from CLP 8.1% appreciation vs USD lowering USD-denominated costs and efficiencies despite higher aluminum prices, and 13.7% EBITDA growth to CLP 107,357 million with margin expansion to 20.0%. Consolidated net sales rose modestly 0.2% as 1.8% volume growth was nearly offset by 1.5% lower average prices in CLP, primarily from 28.7% ARS depreciation in Argentina. Gross profit grew 1.4% with 55 bps margin improvement from lower direct costs and efficiencies. EBITDA was flat at 0.1% growth to CLP 131,644 million (16.1% margin) as Chile's strength was counterbalanced by International Business EBITDA contraction of 18.6% to CLP 28,489 million (ex-restructuring -10.4%) due to Argentina's mid-single-digit beer volume drop, cost pressures, and currency effects, and Wine segment's 50.1% EBITDA plunge to CLP 3,288 million from 5.9% volume contraction in exports/domestic markets, higher wine costs, and CLP appreciation hurting export pricing. Net income declined 6.8% to CLP 53,856 million due to higher income taxes from increased taxable income and prior-year Argentina tax benefits, despite improved non-operating results from derivative gains and adjustment units. CEO commentary highlights focus on 2025-2027 Strategic Plan pillars of Profitability, Growth, and Sustainability amid global inflationary pressures, with proactive revenue management, efficiency efforts, and CAPEX prioritization. In JVs, Colombia saw mid-teens volume growth.