Q1 2025 Compania Cervecerias Unidas SA Earnings Call
Good day, everyone and welcome to Ccu's first quarter 2025 earnings conference call on the eighth of May 2025. Please note that today's call is being recorded at this time I would like to turn the conference call over to Claudio Las Vegas, The head of Investor Relations. Please go ahead Sir.
Wisdom.
Speaker Change: Thank you for attending Ccu's first quarter 2020 significantly five core principles.
There would be a mistake, but least yucatan chief Executive officer.
Fishman: Mr Fishman, who admit chief financial Officer, Mr. <unk> <unk>.
Speaker Change: National planning and Investor relation manager and Mrs. Catalina Booz senior Investor Relations analyst.
Speaker Change: You will have received a copy of the conference hopefully the first quarter 2025.
Speaker Change: The goal with Saturday view, our overall results and then we will then move onto Q&A session.
Speaker Change: As usual before we begin please take note of the following statement.
Speaker Change: Statements made in this scope that relate to Ccu's future financial results are forward looking statements, which in both known and unknown risks.
Speaker Change: Certainties that could cause actual performance or results to materially differ.
Speaker Change: These statements should be taken in conjunction with additional information about risks and uncertainties.
Speaker Change: It's in Ccu's annual reports.
Speaker Change: <unk> filed with the U S Securities and Exchange Commission.
Speaker Change: In the annual report submitted to the CMS and available on our website. It is now my pleasure to introduce our CEO Mr. Patricio for that.
Patricio: Thank you guys.
Patricio: Thank you all for joining us today.
Patricio: In the first quarter 'twenty you.
Patricio: You didn't even higher financial results versus last year.
Patricio: <unk> consolidated EBITDA and net income by 6%.
Patricio: Eight 7%.
Patricio: Secondly, in spite of a highly volatile business environment.
Patricio: In this context, we're getting close to being an important this is excluding the volume supply west beauty.
Patricio: And.
Patricio: In Argentina.
Patricio: <unk>, respectively were down one 8% driven by operating segments, I mean pulp consumption.
Patricio: The IEA.
<unk> International business operating segment, largely due to RCC, where.
Patricio: Sure.
Patricio: <unk>.
Patricio: That you for 2025, we continue to be challenging and volatile.
Patricio: Our focus in the coming quarters will be to current demand.
Patricio: Demand in our 'twenty to 'twenty, five 'twenty 50 cents.
Patricio: And the three theaters profitability growth and sustainability.
Patricio: Patient focus on profitability through further efforts in revenue management and efficiency at the same time either in the group's pillar difficult.
Patricio: Funding business.
Patricio: We focus on Brexit will be seamless execution installations, but this new consumer trends lastly.
Peter: Sustainability, Peter our goal is to progress.
Peter: And of course, we built a strategy to be that's our target and our people.
Peter: The figures that I will be heard now how the consolidators in the international business operating segment results.
Peter: This is excluding again, the consolidation of our duty and our disclaimer.
Peter: <unk>.
Peter: In other way.
Peter: Regarding our consolidated performance.
Peter: First quarter 2025 organic consolidated net sales were up 3%.
Peter: Blaine by four 9%.
Peter: Hi, organic average prices in pesos, while organic volumes were one 8%.
Peter: Hi, organic average prices in Chilean pesos.
Peter: And by all operating segments a contra.
Peter: Revenue management excellence gross profit grew one 7% organically.
Peter: Organic gross margin contracted by 56 basis points.
Peter: Higher cost of sales.
Ted: Yes Ted.
Peter: Organic.
Peter: <unk> expenses expanded two 7% in Chilean pesos offsetting inflationary pressures with efficiencies.
Peter: And as a percentage of net sales declined 11 basis points.
Peter: Organic EBITDA.
Peter: 136 million Chilean pesos, a four 8% organically.
Peter: Organic increase in terms of our segments in the Chile operating segment top line expanded to 8% a result of a four 8% increase in average prices when volumes were down one 9%.
Peter: With prices would be despite revenue management efforts, partly compensated by negative.
Peter: It's a different formula gross profit decreased one 1% and gross margin was down 180 basis points.
Peter: Two last year.
Peter: Manufacturing costs and they get.
Peter: Marketing and cost pressures coming from higher U S dollar denominated costs and SG&A expenses were $2, 7% higher.
Peter: Practically flat as a percentage of net sales.
Peter: Efficiencies that compensate inflationary pressures altogether EBITDA reached 94400 needed to those patients.
Peter: <unk> margin was down 97 basis points in international business operating segment, excluding the inorganic volumes from the consolidation of Oslo arm.
Peter: In Argentina, and Paraguay, respectively, organic net sales recorded a six 3% increase driven by higher organic average prices, which more than offset by one 2% contraction in organic volume organic volumes in Argentina, our nearest flat continuing on a recovery path.
Peter: Business days compared to previous quarters, Meanwhile, Uruguay, and Paraguay posted low and mid single digit organic volume trends, respectively. Westwood EBIT grew by low single digits.
Peter: Organic average prices were mostly driven by revenue management initiatives in all the geographies more than offsetting cost pressures guidance basically from a weaker August.
Peter: He saw against the U S dollar and inflationary pressures. Consequently, organic gross profit expanded 10, 7% our organic gross margins U 202 basis points organic and SG&A expenses.
Peter: Net sales increased 32 basis points, mostly infill.
Peter: Inflationary pressures in Argentina.
Peter: Organic EBITDA reached.
Peter: 33000, 435 million Chilean pesos.
Peter: The eight 5% expansion driven by Argentina, Uruguay and Bolivia.
Peter: The drilling segment posted a top line expansion was one 1% reported driven by a six 2% rise in average prices with volumes were down three 8% compared to last year lower volumes were explained by a contraction in the chicken domestic market industry wide exports from Chile were flat the better average price.
Peter: This is where most explained by a weaker Chilean peso and its favorable impact on export revenues, our revenue management initiatives.
Peter: Domestic markets.
Peter: Gross profit was down one 6% gross margin deteriorated by one has a 42 basis points due to cost pressures from higher corporate wide.
Peter: Packaging costs.
Peter: <unk> expenses were flat and as a percentage, let's say improved 56 basis points due to efficiencies.
Peter: Together EBITDA reached 6590 2 million seniors are one.
Peter: One 1% increase in margin was down 36 basis points regarding our main disease associated businesses in Colombia, we posted financial results versus last year.
Peter: The slight contraction in Poland, which nonetheless were slightly lower.
Peter: Now I will let Ross or any questions you may have.
Peter: Thank you very much we will now move to the question and answer section if you'd like to ask a question. Please press star two and your phone and wait to be prompted for Darden by the web you can type. Your question in the box provided our request Wesco voice question, we just wait a moment or two further questions to come in.
Peter: Okay.
Peter: Okay.
Peter: Okay. So our first question is from Fernando Ferreira from Bank of America. Your line is now open. Please go ahead.
Hi, good morning, everyone and thanks for taking my my question first.
First I would like to explore our volume performance in Chile. If you can give us some details of how different was the performance between non non alcoholic alcoholic beverages and specifically on beer.
Peter: So if you can comment about the performance between premium and mainstream that's my first question. Thanks.
Peter: Thank you.
Peter: Uh huh.
Peter: Thank you Fernando for your question.
Peter: According to Nielsen.
Peter: Our overall market share routinely in the Chile operating segment is.
Peter: No.
Peter: Maiden double peak, we have gained some market share small non alcoholic and we have lost some market share small eating ear.
Peter: Taking into considerations. According to Nielsen is not but overall alcohol.
Peter: Increasing mid single digits.
Peter: These are sell out volumes to consumers.
Peter: Yes.
Peter: Selling points provides including different chatters in vas I'd, rather than necessarily reflected in the market to gain market share in the total <unk> operating segments stable.
Peter: Yeah.
Peter: With that small increase on game.
Peter: I think as a small piece.
Peter: Our loss.
Peter: In the year.
Peter: Okay.
Peter: And regarding the recovery going forward on volumes, how long are you seeing.
Peter: Such trends.
Peter: Excuse me, our garden mainstream or premium.
Peter: So regarding mainstream and premium state.
Peter: Looking for looking forward.
Peter: Lisa.
Peter: Oh sure.
Speaker Change: Not just in China, but in the world regarding alcohol offers.
Peter: Of consumption.
Peter: I've heard about this because it is something which is being discussed in every.
Peter: Company, producing and selling alcohol.
Peter: All over the world.
Peter: Huge papers.
Peter: The complete consumption of alcohol one hundreds.
Peter: To make this calculation.
Peter: At least 5% wine calculate.
Peter: <unk> calculated through five.
Peter: <unk>.
Peter: If you are considering other speeds.
When you calculate the bespoke kind of consumption of alcohol or tablets.
Peter: Decrease the speed getting cheated.
Peter: <unk> was five three meters of alcohol <unk> coffee Cup per year five three.
Peter: It increased a lot.
As the pandemic began to decrease particularly between we're still five three stable level that we funded it has to be put before ubiquity.
Peter: As well.
Peter: That's beginning to define the trend is to.
Peter: You spud increased sand very seamless.
Peter: Figures for the United States.
Peter: Seven for 2019.
Peter: Okay.
Peter: In 2024, so the decrease in United States, it's been even higher than in Chile, and Peru, when the world was $3 one leaders remain key.
Peter: Great.
Peter: Leads are seen with the plant.
<unk> said before there may be a hypothesis.
Peter: It is.
Peter: So clearly.
Peter: If you want we could discuss from east, but my main concern regarding disputed our volumes on the <unk>.
Peter: Alcohol neat.
Peter: The alcoholic category.
Peter: Yes fast throughout the plan, but the trends are not favorable.
Peter: We are making a little schemes so changes also.
Peter: Responsible consumption base.
Peter: But this is a concern.
Peter: Okay.
Peter: And if I may just one last question. If you can give us more color on the lower tax in Argentina, which I understand that because theyre. The sharp decline on consolidated taxes and if this effect is expected in coming quarters.
Peter: Thank you.
Peter: But could you elaborate on this a little general.
Fernando Ferreira: Fernando could you clarify that.
Fernando Ferreira: This is related to.
Fernando Ferreira: This is part of the input costs you mean.
Fernando Ferreira: Yes.
Fernando Ferreira: Yeah, Yes, I mean consolidated Texas, you mentioned that he decline.
Fernando Ferreira: Secondly, you or your did you lower.
Fernando Ferreira: A lower tax in Argentina, because of inflation I understand all this.
Fernando Ferreira: Yes on your question, Yes. This is related to the use of <unk>.
Fernando Ferreira: Inflation for tax purposes.
Fernando Ferreira: Dr.
Fernando Ferreira: Hum.
Fernando Ferreira: In 2019.
Fernando Ferreira: The inflation for tax purposes, since President's, England started to use that but we have some provisions.
Fernando Ferreira: Related to that.
Fernando Ferreira: Uncertainty has become a more stable in terms of microeconomics or ebay.
Fernando Ferreira: Exchange controls.
Fernando Ferreira: Besides that we released some provisions related to that in the in the use of inflation for tax purposes.
Fernando Ferreira: Yes.
Fernando Ferreira: Okay and this effect.
Fernando Ferreira: This benefit is expected in the coming quarters Philippe.
Philippe: Yeah, yeah, because he's traveling.
Fernando Ferreira: Okay. Okay perfect. Thank you.
Fernando Ferreira: And then one more remark regarding the trends of alcohol consumption.
Fernando Ferreira: My remark before showing a decline.
Fernando Ferreira: Let's take a worldwide of alcohol.
Fernando Ferreira: <unk>.
Fernando Ferreira: Consumptions deciding to long term.
Fernando Ferreira: It's a long term consideration.
Consider this if you make that at least some forces coupon.
Fernando Ferreira: Last year in Argentina was very poor in Q2 until it was very good.
Fernando Ferreira: So we expect to have a much better results regarding our.
Fernando Ferreira: Alcoholic volumes.
Speaker Change: You too.
Speaker Change: The part that is because it's a consideration on the basis of price even before this trend is not favorable.
Speaker Change: For the industry.
Speaker Change: Yes.
Speaker Change: Okay, great. Thank you so much.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: Our next question is from Alvaro Garcia from BTG. Your line is now open. Please go ahead.
Alvaro Garcia: Can you hear me.
Speaker Change: Yes, we can please go ahead.
Speaker Change: Although we cannot hear you now.
Speaker Change: Okay, perhaps you can send us a tax question or are redial can you hear me there.
Speaker Change: Now, we can yes, sorry about that Mike.
Patrizio: Hi, Patrizio.
Speaker Change: Just a couple.
Speaker Change: Couple of questions one on how you're thinking about margins in Chile, and a stronger Chilean peso environment.
Speaker Change: Into the second half of this year, obviously, you've had a lot of questions over the last couple of years on sort of where you can take margins over the medium term that we seem to be getting in a better sort of.
Speaker Change: Input costs input cost environment for you.
Speaker Change: So that would be interesting and then my second question is on Argentina.
Speaker Change: I was wondering if you could talk about pricing because we were a little bit surprised I mean, I know, you're consolidating a water business, which obviously has much lower pricing.
Speaker Change: But I was wondering if maybe you can comment a bit on pricing.
Speaker Change: There's a little bit of a surprise I would say in our model there what youre seeing from a pricing standpoint as inflation comes down. Thank you very much.
Speaker Change: Yeah.
Speaker Change: Nick.
Speaker Change: Thank you Alberto for your two questions.
Speaker Change: We begin with Argentina than I would have gone to.
Speaker Change: To achieve it.
Mark: It's a big question, Mark because I think for many years.
Speaker Change: Prices.
Speaker Change: Were key in Argentina, as we have no physicals.
Speaker Change: We increased prices in line to inflation higher than inflation, because if inflation amounted to 10%.
Speaker Change: With prices by 11 or 12% nothing happens consumers as they are paying for your products.
Speaker Change: Inflation is increasing a lot and that's the deliberation of exchange rate exchange rates remained almost stable in Argentina. So there.
Speaker Change: There are different opinions on what's going to happen with inflation, Argentina substituting.
Speaker Change: Patients will continue to be 2%.
Speaker Change: Per year.
Speaker Change: Some people are saying that it will move to zero pretty rapidly.
Speaker Change: And there will be new for seeing that appropriate will have negative inflation.
Speaker Change: Second remark there are some services, which are adjusting their prices. So there is about keeping inflation, which we can from those services.
Speaker Change: Input costs so big.
Speaker Change: <unk>.
Speaker Change: Pricing, we saw the industry.
Speaker Change: The consumer products industry.
Speaker Change: So with that feature.
Speaker Change: Information from this for this effect.
Speaker Change: So we don't know I'm not sure I prefer to see that.
Speaker Change: Nation is going to be very low.
Speaker Change: Is it supposed to be very difficult to continue increasing prices and that we have to compensate east with input costs, which are healthy and we.
Speaker Change: Strong efficiencies programs our SG&A.
Speaker Change: This would be doing you can see Asia continues to be 2%. Indeed, we will have to increase prices.
Speaker Change: Right.
Speaker Change: We would have.
Speaker Change: <unk> got the absolute to fibers.
Speaker Change: This is this is.
Speaker Change: This is.
Speaker Change: Executing every single day.
Speaker Change: And we're seeing some pricing.
Speaker Change: <unk> continually being high in total 2%, we're continuing with some pricing less inflation of course.
Speaker Change: We've been patient collapsed.
Speaker Change: Roof.
Speaker Change: Uh huh.
Speaker Change: We will not be able to increase prices in both cases, we are making airports and reducing expense.
Speaker Change: Regarding margins in Chile.
Speaker Change: We have been increasing prices.
Speaker Change: To compensate for the prices and we even increased in the past.
Speaker Change: Cost of revenue on the input costs.
Speaker Change: A lot will recuperate margins margins quarter to quarter will continue with this type of win 10 input costs R. R.
Speaker Change: And we are.
Speaker Change: Being very extreme onto online.
Speaker Change: On being efficient in our expenses altogether, we expect to recuperate margins, having said that the comparison basis in Q2 2024, we're very pleased with how the wood.
Speaker Change: Q2, but this having extension associated to that so the week basis of comparison for 2024 local brand as patterns to recuperate margins.
Speaker Change: Great. Thank you and then just maybe a follow up on Argentina element would you say that in the first quarter you pass a little less price than usual.
Speaker Change: Or was it just pretty standard from our core organic standpoint.
Speaker Change: Yes definitely missed.
Speaker Change: 'twenty, one before we pass more than inflation to progress from Q and in the Q first.
Speaker Change: The print confusion.
Speaker Change: <unk> difficult to push price.
Speaker Change: I think the decision to collapse.
Speaker Change: Very soon.
Speaker Change: First one of the things inflation will move.
Speaker Change: The range of zero to <unk> five four maximum 115% for the math, because we had a nice amount I think what we said we see the market.
Speaker Change: Prices of consumer reports are very stable.
Speaker Change: As opposed to.
To increase price.
Speaker Change: That's clear.
Speaker Change: About the game, what we need we need to see at least what we're seeing today.
Speaker Change: Thank you.
Speaker Change: Thank you.
Speaker Change: Okay.
Speaker Change: Thank you very much.
Speaker Change: Just a reminder, if you'd like to ask a question. Please press starts when your phone that it starts when your phone and wait for the prompt introduction by the web you can type your question in the box provided our request Wesco voice question, we will give him a few moments for the questions to come in.
Speaker Change: Okay.
Speaker Change: Okay.
Speaker Change: Okay. So our next question is from Felipe <unk> from Scotiabank. Your line is now open. Please go ahead.
Speaker Change: Thanks, operator.
Felipe: All our potential Philip and team. Thanks for taking my question. So my first one is around costs.
Felipe: The release mentioned that you experienced higher manufacturing costs in Chile.
Felipe: I was curious about the language about it being around manufacturing rather than raw materials can you expand on what exactly what are the drivers for these costs.
Felipe: And then I'll have a follow up after that thank you.
Felipe: Yes.
Felipe: See indeed.
Felipe: There are one sided risk.
Felipe: Hey, why don't you elaborate so.
Felipe: And a matter of fact recover.
Felipe: Due to two reasons, one was about inventory depletion.
Felipe: Ultimately, reducing regulatory again at that location.
Felipe: Fixed cost was higher.
Felipe: So obviously you saw the accounting.
Counting.
Felipe: Sure.
Felipe: Issue or or or.
Felipe: On the other kind of higher labor costs that we experienced in Chile because of some we need some we need to improve definitely evening I want a safe operation plan, because we we pure.
Felipe: In the in overtime.
Felipe: And this was neutral.
Felipe: Labor costs and also included a write off of.
Felipe: Some lines that we are not using any more because they work through all of that will be replaced by a new technology. So we pure on extra depreciation cost as we take the write off in the key operating segments.
Felipe: In the Chile operating segment in the depreciation a lot of work to do so this is so we have two one offs that Patricia mentioned, one is related to bright spot in the Chile operating segment and secondly views.
Felipe: In event that we have less inventory than last year in Chile. So.
Felipe: Yes.
Felipe: By the allocation of fixed it.
Felipe: Expenses.
Felipe: Okay.
Felipe: Over time that this thing.
Felipe: And efficiency.
Felipe: Because of <unk>.
Felipe: Let's say not too good.
Felipe: Since inauguration, but we have a project.
Felipe: You bet.
Felipe: We did some scope from Yamana reports of Milwaukee and improving our plan. So we oversee that.
Felipe: In the in the following quarters, we should deliver the efficiencies and be more efficient.
Felipe: Manufacturing.
Felipe: Very clear.
Speaker Change: And my next question was actually around efficiency, you managed to maintain your efficiency levels. Despite having negative volumes, which is it's not easy to do.
Speaker Change: So it seems like your efficiency program is beginning to work and you expand a little bit on how far along you are in that program and how much more you expect.
Speaker Change: Okay.
Speaker Change: Thank you for your remarks any more than.
Speaker Change: Beginning to work has to work for.
Speaker Change: For many years here, we have the figures.
Speaker Change: MSR MSR.
Speaker Change: As a percentage of sales have declined by five 4% in a longer period of time.
We are.
Speaker Change: We are putting much more pressure today on.
Speaker Change: On the first.
Speaker Change: Expect.
Speaker Change: Boardrooms of alcohol.
Speaker Change: To be passing the futures I mentioned before.
Speaker Change: And that speaks to that.
Speaker Change: Argentina will have clients oftentimes regarding prices.
Speaker Change: The combination of these elements for <unk> the conference recording our opinion too much more.
Speaker Change: Sure.
Speaker Change: On executing efficiencies programs.
Speaker Change: Thanks, Rich, we're moving in that direction.
Speaker Change: That's helpful. Let me ask a follow up on the efficiency side are you, reducing marketing expenses in any way or is that part of the SG&A kind of.
Speaker Change: Our plan is to maintain a consistent and driving efficiencies from other lines.
Speaker Change: No from another line.
Speaker Change: Stay safe airports.
Speaker Change: We are replacing a lot of.
Speaker Change: Functions made by.
Speaker Change: Sales people through technology with a lot of with a lot of success.
Speaker Change:
Speaker Change: I mean few words.
Speaker Change: Typically for many years.
Speaker Change: A salesperson had.
Speaker Change: Four responsibilities number one to come into the client wants to buy.
Number two to execute towards that.
Speaker Change: Your order.
Speaker Change: <unk> suite to execute in the point of sales.
Speaker Change: Number four to keep a good personal relation with the client.
Speaker Change: For our activities.
Speaker Change: The first two are completely.
Speaker Change: Could be completely replaced by technology to D. R.
Speaker Change: Our official intelligence programs are matched.
Speaker Change: Mark to our sales force to recommence declined by number one.
Speaker Change: And there are much more efficient ways to place the orders through digital younger.
Speaker Change: Our sales forces.
Speaker Change: It's extremely important to execute in the point of sale number one is to have the personal relation with the clients.
Speaker Change: But you need less sales force to do even more I think not yet we're moving rapidly in this direction.
Speaker Change: And I compliment Patricia if you.
Speaker Change: Look at our latest nvme, especially in Chile, which is the main ore bodies in the segment.
Speaker Change: They were below inflation by two 7%, while marketing expenses were above inflation. So it means that we are making efficiencies as Patricia said insights, but also in distribution.
Speaker Change: Sure.
Speaker Change: Because of.
Speaker Change: Mind, you there as you know practice efficiency warehouses efficiencies so.
Speaker Change: We got you.
Speaker Change: You're seeing perfectly you're seeing a good part, let's say efficiency program.
Speaker Change: If we maintain this path of growing.
Speaker Change: Of growing our expenses less than inflation, while maintaining or investing.
Speaker Change: That's a good fun.
Speaker Change: Okay.
Speaker Change: In fact, we made sure four times per year.
Speaker Change: Brian take with each one of the breadth of our portfolio and the brand equity of each one of the brands of our competitors.
Speaker Change: <unk>.
Speaker Change: You get to Q1 'twenty 'twenty five.
Speaker Change: He can say Bruce Shaw our.
Speaker Change: Our brand equity indicators are one of the tightest.
Speaker Change: Struggled historically the last thing here is that our portfolio today is extremely.
Speaker Change: And.
Speaker Change: This gives us a lot of confidence on <unk>.
Speaker Change: Having good volumes good market shares good promises.
Speaker Change: Yeah.
Speaker Change: Two continued the improving.
Speaker Change: Improving our profitability.
Speaker Change: Very clear thanks, Thanks, a lot for the color.
Speaker Change: Okay.
Speaker Change: Thank you.
Speaker Change: Our next question is from F. I'll start from <unk>. Your line is now open. Please go ahead.
Speaker Change: Good morning, and thanks for taking my question.
Speaker Change: And in the press release, you mentioned that in competition.
Speaker Change: And the context remains highly volatile and you expect to do so.
Speaker Change: In quarters.
Speaker Change: I wanted to ask and how do you expect competition, how aggressive you expect competition to be in Chile.
Speaker Change: And in the remaining of the year.
Speaker Change: Okay.
Speaker Change: Thank you very much.
Speaker Change: Thank you everyone for your questions.
Speaker Change: Competition has always been.
Speaker Change: Very.
Speaker Change: Not only that they released where we participate in to that and the other factors I think that.
Speaker Change: This is not going to change.
Speaker Change: Same time.
Speaker Change: This is <unk>.
Speaker Change: Hey, Matt.
Speaker Change: My main.
Speaker Change: Got.
Speaker Change: Because the.
Speaker Change: A good element of the tax element of having tough competition difficult to make biodiesel prices too.
Speaker Change: With margins as where we'd like to Louise.
Speaker Change: Clearly through efficiencies because single stock competition, you said.
Speaker Change: Per capita consumption.
Speaker Change: Because if I may should before the alcohol.
Speaker Change: Central and all over the world.
Speaker Change: Under pressure for many reasons.
Speaker Change: A lot of competition a lot of innovation a lot of marketing a lot of execution at the point of sales.
Speaker Change: Contributes to offset those.
Speaker Change: Those trends.
Speaker Change: Let me give you an example.
Speaker Change: Very POC.
Speaker Change: Obese per capita consumption in Chilean beer.
Speaker Change: It probably would be the kind of the consumption of the year 2014 years ago was 44 leases.
Speaker Change: So kind of the consumption of beer in 'twenty 'twenty, four and you get faster.
Speaker Change: $4 2 billion.
Speaker Change: We just put out.
Speaker Change: The same period per capita consumption has increased from 34th excuse me Steven before too.
Speaker Change: In line.
Speaker Change: I think the word.
Speaker Change: $25 four meters.
Speaker Change: Several users.
Speaker Change: We have been competing in a.
Speaker Change: That's the way I think it was.
Speaker Change: But when you get into.
Speaker Change: I think we'll continue to be true, but I think that at the end of it that is good for categories.
Speaker Change: We're not afraid of.
Speaker Change: Sure.
Speaker Change: I took lifestyle to improve.
Speaker Change: To improve our capabilities day after day, and finally as I mentioned before.
Speaker Change: The high level of.
Brian: Brian I think we can measure.
Speaker Change: Sure.
Speaker Change: Fortunately our Gulf.
Speaker Change: At night similar levels in the last 10 years in the last many years.
Speaker Change: In most of our most of our competitors. So we're very glad to.
Speaker Change: This will allow us will allow us to.
Speaker Change: It will be.
Speaker Change: One competitor.
Speaker Change: In the other countries, where we participate.
Speaker Change: Okay. Thanks.
Speaker Change: Thank you.
Speaker Change: Our next question is from constant Simon <unk> from <unk> capital. Your line is now open. Please go ahead.
Speaker Change: With money, but GTR to leap day and thank.
Speaker Change: Thank you for what they call <unk>.
Speaker Change: For taking my question.
Jeremy: Thanks, Jeremy 19, again cleaner and quite frankly, considering that you.
Speaker Change: And.
Speaker Change: I recall it Ian.
Speaker Change: In the economy. These days that volumes in the next quarter are going to increase.
Speaker Change: And the second question.
Speaker Change: Oh wait at peak.
Speaker Change: Sure.
Speaker Change: Economy do you expect to bring Mark go next trend Argentina to Chile.
Speaker Change: It's going to be that process.
Speaker Change: I think my I. Appreciate if you can be back some color about that change.
Speaker Change: Indeed <unk>.
Speaker Change: Hello regarding volumes.
Speaker Change: Argentina.
Speaker Change: The freshness of Mr relate when the patient was very high but there was a lot of management focus.
Speaker Change: Of consumers before the adjustment.
Speaker Change: The run rate of our guidance range radars the deposits over the last quarter justifies seasonal effect.
Speaker Change: The industry.
Speaker Change: Let's say.
Speaker Change: We just had.
Speaker Change: In the worst moment.
Speaker Change: In 2024.
Speaker Change: Q2.
Speaker Change: Q3.
Speaker Change: Volumes of prevailing industry decreased on a run rate basis by 20%. So if were handed before.
Speaker Change: <unk>.
Speaker Change: Today, we are in an adaptive the needle of the world between previous estimate and the worst moment after.
Speaker Change: Yes.
Speaker Change: This is my reminder, although remark number towards the worst moment of the adjustment towards Q2, and Q3 Q3 was deepened.
Speaker Change: Before so we expect to have good growth in volumes compared to those figures, but again at the gate 90 is delays.
Speaker Change: So the industry is.
Speaker Change: Stabilizing in a level, which is 10% better than the Westmoreland, a 10% lower than.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: Lynn.
Speaker Change: And that's the cyclic question I will ask Felipe.
Speaker Change: But if it was regarding to the new measures announced on April 14.
Speaker Change: And governments.
Speaker Change: Yes, the Central Bank announced an agreement with the Internet.
Speaker Change: International Monetary policy.
Speaker Change: But also include a comprehensive financing package and new.
Speaker Change: In Europe, the regulatory framework for change.
Speaker Change: <unk> controls. This allows us of course for the futures are very positive because for Florida.
Speaker Change: We saw solid income and EBIT from audited financial statement.
Speaker Change: 25, after we would be able to bring <unk> from from Argentina, which is a good news for the future I cannot tell you we will bring on <unk>. It will depend a lot. What we felt another account and also it was announced immuno bottomed out just a new ball.
Speaker Change: Sure.
Speaker Change: Ebay sponge.
Speaker Change: It would allow us to southern some accounts.
Speaker Change: Commercial partners.
Speaker Change: Farming.
Speaker Change: The social casino.
Speaker Change: Which is positive but also to pay.
Speaker Change: <unk> said this from the holding company.
Speaker Change: From the company's website.
Speaker Change: So.
Speaker Change: First is suddenly be accounts would be the first full protected and then of course for the future is positive.
Speaker Change: Good.
Speaker Change: Building immunized from the from freight.
Speaker Change: 5000, okay.
Speaker Change: Okay.
Speaker Change: So we see very good.
Speaker Change: These new announcements of the government.
Speaker Change: Okay. Thank thank you Sir.
So tell us a little up.
Darren: It's Darren.
Darren: No relation we understand in Shanghai.
Darren: Grant.
Darren: <unk>.
Darren: What is I'm sorry.
Darren: All of my argument would be that that you feel comfortable.
Darren: For the long term.
Speaker Change: No we do not make.
Darren: <unk>.
Darren: Obviously for the long term.
Darren: We are trying to recuperate EBITDA margin.
Darren: You bet.
Darren: Business, both in Chile, and Argentina.
Darren: Okay. Thank you. Thank you for your answers.
Darren: Thank you.
Darren: Okay.
Darren: Thank you we.
We have a follow up question from Fernando Ferreira from Bank of America. Your line is now open. Please go ahead.
Fernando Ferreira: Great and thanks for picking up my question again.
Darren: Yeah.
Darren: I just would like I would like to hear your thoughts about the about the.
Darren: Weak demand in wine in both local and market on exports now is there any other reason besides lower the mantle of alcohol.
Darren: And also how do you expect volume to behave and the remaining of the year.
Darren: Given that you will face easier comps. Thank you.
Speaker Change: Thank you. Thank you Fernando I think as I mentioned before the trends to be used as the alcohol consumption.
Darren: Okay.
Pete: Alcohol categories, but thank you Pete.
Pete: The category has been the wireless operating mode.
Pete: Figures are seniors.
Pete: This is T plus demand in different capital one moving to Spotify widespread private banking team at Lincoln place 70 meters plenty put before 10 pardon.
Pete: 75 continually declining.
Speaker Change: United States start to acquire in 2019 nine.
Speaker Change: If I could looking for eight four.
Speaker Change: We're a quota which impacts on our ability to export crude.
Speaker Change: <unk> thousand 20 main theme of why it was probably three things of interest.
Speaker Change: 433 liters.
Speaker Change: So we're more and more all of the.
Speaker Change: I think Luis there was suffering the most.
Speaker Change: This year.
Categories have been able to.
Speaker Change: Fine.
Speaker Change: I think that the costs.
Speaker Change: Categories are much more.
Speaker Change: More conservative and.
Speaker Change: The key category has bringing a lot of innovation.
Speaker Change: We havent been much more innovation, particularly on the flavored alcoholic profits.
Speaker Change: We are growing a lot.
Speaker Change: Low alcohol flavored sparkling those categories are increasing a lot.
Speaker Change: <unk> strongly those categories based on EBITDA basis. This is also based on Wayne <unk>, who have been able to defend that.
Speaker Change: Volumes and profitability by doing this and we expect those categories to grow a lot in the future.
Speaker Change: But regarding this year, we prefer not to make it public.
Speaker Change: Possibly.
Speaker Change: Estimation of course, we have our own estimation.
Speaker Change: We prefer not to make it look to make them.
Speaker Change: That trend is complicated as I mentioned before particularly for one.
Speaker Change: But we are trying to offset those.
Speaker Change: Bye.
Speaker Change: Pushing a lot of those.
Speaker Change: Flavor.
Speaker Change: Low level of alcohol.
Speaker Change: Non alcoholic.
Speaker Change:
Speaker Change: Is it severe without alcohol.
Speaker Change: And others.
Speaker Change: Sparkling wine without alcohol.
Speaker Change: We expect those categories to grow in the future and we are pushing the envelope.
Speaker Change: With our suppliers the manufacturers because those categories makes sense.
Speaker Change: Because they bring volume as they also bring.
Speaker Change: But I would agree with meaning you have to invest mode.
Speaker Change: You'll have to.
Speaker Change: You have to generate a return but additional cost in your operation.
Speaker Change: We are convinced that.
Speaker Change: That would be extremely important.
Speaker Change: But in.
Speaker Change: In the near future.
Speaker Change: But that's it.
Speaker Change: Okay, great. Thank you so much for the color.
Speaker Change: Thank you.
Speaker Change: We have a question from Santiago <unk> from Franklin Templeton.
Santiago <unk>: Good morning, Thanks for the call do you perceive a change in consumption habits towards towards beer consumption globally wire soda is doing better than beer.
Speaker Change: What is your outlook for beer consumption in the future.
Speaker Change: Thank you for your question.
Speaker Change: A key question for you.
Speaker Change: Thanks to this question before mine.
Speaker Change: Yes.
Speaker Change: Remarks tumor.
Speaker Change: But again I will repeat some failures and give you a ambitions because all over the world with the last thing to use.
Speaker Change: I mean, that's conferred prebuilt standing with.
Speaker Change: All over the world with catheter was 23, 9% that's important too.
Speaker Change: But another important absolutely gain so the case of <unk> GLA per capita in 2000 1952 to two <unk>.
Speaker Change: 64 <unk>.
Speaker Change: In April.
Speaker Change: Two.
Speaker Change: So moving.
Speaker Change: In a different direction then the world in the vehicle.
Speaker Change: And the escalation.
Speaker Change: Among other reasons.
Speaker Change: The competitive environment that we haven't seen the which apply to all competitors to <unk>.
Speaker Change: We were very smart.
Speaker Change: Promote power volumes.
Speaker Change: So we have been able to move in the right direction plenty 55 with the tenants.
Speaker Change: It's not good.
Speaker Change: Mention before.
Speaker Change: Before Nielsen shows.
Speaker Change: This is Howard.
Speaker Change: Say that this is the key challenge for all the companies producing alcohol alcohol all over the world.
Speaker Change: We are facing this challenge.
Speaker Change: Indeed, it is a challenge.
Speaker Change: Thank you very much I will now be passing the line for the CCU team for the closing remarks.
Speaker Change: Are these salary in first quarter to simplify it we're able to deliver higher financial results expanding EBITDA and net income in a challenging business environment for volumes and continued cost pressures.
Speaker Change: With our priority of recurrent profitability, we implemented revenue management airports across all operating segments.
Speaker Change: Deliver efficiencies.
Speaker Change: Furthermore, consistent.
Speaker Change: We're celebrating.
Speaker Change: 35 years of history.
Speaker Change: Peter viewing.
Speaker Change: Have overcome many times say being a dynamic and capable of adapting to those formations.
Speaker Change: The other countries, where we have expanded our operations. This past business experience will be key to navigating the current uncertainty.
Speaker Change: The scenario, especially in terms of consumption trends haven't changed right.
Speaker Change: That's one protein implementing our tentative five purposes et cetera.
Speaker Change: Supporting our working capital is starting to ensure sustainable and profitable growth for CCU.
Speaker Change: Okay.
Speaker Change: This concludes the call for today, Thank you and have a nice day.
Speaker Change: Okay.