Q1 2026 Compania Cervecerias Unidas SA Earnings Call

May 7, 2026

Operator: Ladies and gentlemen, good day, everyone, and welcome to CCU's First Quarter 2026 Earnings Conference Call on 7 May 2026. Please note that today's conference call is being recorded. I would now like to turn the line over to Mr. Claudio Heras, the Head of Investor Relations. Please go ahead, sir.

Speaker #2: like to turn the line over to Mr. Claudio Heras, the Head of Investor Relations. Please go ahead, sir. Welcome. And thank you for attending CCU's first quarter 2026 conference call.

Claudio Heras: Welcome, thank you for attending CCU's Q1 2026 Conference Call. Today with me are Mr. Felipe Dubernet, Chief Financial Officer, Mr. Joaquín Trejo, Financial Planning and Investor Relations Manager, and Mrs. Carolina Burgos, Senior Investor Relations Analyst. You have received a copy of the company's consolidated Q1 2026 earnings release. The call, as usual, will start by reviewing our overall results, then we will move on to a Q&A session. Before we begin, please take note of the following statement. The statements that we will make in this call that relates to CCU future's financial results are forward-looking statements, which of course involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ.

Speaker #2: Analyst. You have received a copy of the company's consolidated first quarter 2026 earnings release. The call, as usual, will start by reviewing our overall results and then we will move on to a Q&A session.

Speaker #2: Before we begin, please take note of the following statement. A statement that we will make in this call that relates to CCU futures financial results are forward-looking statements, which, of course, involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ.

Speaker #2: This statement should be taken in conjunction with the additional information about risk and uncertainties set forth in CCU's annual report and inform 20F recently filed with the US Security and Exchange Commission and, of course, the annual report that's also available on the CMF and our website.

Claudio Heras: These statements should be taken in conjunction with the additional information about risk and uncertainties set forth in CCU's annual report and in Form 20-F, recently filed with the U.S. Securities and Exchange Commission, and of course, the annual report that's also available on the CMF and our website. It's now my pleasure to introduce our CFO, Mr. Felipe Dubernet.

Speaker #2: It's now my pleasure to introduce our CFO, Mr. Felipe Azocar. Thank you, Claudio, and thank you, you all, for joining the call today. We started 2020 the year 2026 with a strong set of results in Chile, our main operating segment, while we continue to face a soft consumption environment in Argentina and a particularly weak business context in the wine business.

Felipe Dubernet: Thank you, Claudio, and thank you all for joining the call today. We started the year 2026 with a strong set of results in Chile, our main operating segment, while we continue to face a soft consumption environment in Argentina and a particularly weak business context in the wine business. In terms of financial results, consolidated EBITDA was flat versus last year, growing 0.1% as the robust 13.7% EBITDA growth in the Chile operating segment was offset by contraction of 18.6% and 50.1% in the international business and wine operating segment respectively. In the quarter, consolidated net sales were flat, growing 0.2%, explained by 1.8% higher volumes, almost fully offset by 1.5% lower average prices in Chilean pesos.

Speaker #2: In terms of financial results, consolidated EBITDA was flat versus last year, growing 0.1%, as the robust 13.7% EBITDA growth in the Chile operating segment was offset by contraction of 18.6% and 50.1% in the international business and wine operating segment, respectively.

Speaker #2: In the quarter, consolidated net sales were flat, growing 0.2%, explained by 1.8% higher volumes, almost fully offset by 1.5% lower average prices in Chilean pesos.

Felipe Dubernet: Consolidated volumes were driven by a 3.9% expansion in the Chile Operating Segment, more than offsetting the decreases of 1.7% and 5.9% in the International Business and Wine Operating Segment, respectively. Lower average prices in CLP were mostly due to a negative currency translation effect in Argentina, coming from the 28.7% depreciation of the Argentine peso against the USD, being partially compensated by revenue management initiatives. Gross profit grew by 1.4%, and gross margin improved 55 basis points, mainly due to lower direct costs and efficiencies. MSD&A expenses were practically flat in CLP, offsetting with efficiencies over the expenses pressures and restructuring costs in Argentina. As a percentage of net sales, MSD&A grew 23 basis points. In all, EBITDA margin was stable at 16.1%.

Speaker #2: Consolidated volumes were driven by a 3.9% expansion in the Chile operating segment, more than offsetting the decreases of 1.7% and 5.9% in the international business and wine operating segment, respectively.

Speaker #2: Lower average prices in Chilean pesos were mostly due to a negative currency translation effect in Argentina coming from the 28.7% depreciation of the Argentine peso against the US dollar being partially compensated by revenue management initiatives.

Speaker #2: Gross profit grew by 1.4%, and gross margin improved 55 basis points, mainly due to lower direct costs and efficiencies. MSNBNA expenses were practically flat in Chilean pesos, offsetting with efficiencies overall expenses as pressures and restricted in cost in Argentina.

Speaker #2: As a percentage of net sales, MSNBNA grew 23 basis points, in all EBITDA margin was stable at 16.1%. Net income was down 6.8% from last year.

Felipe Dubernet: Net income was down 6.8% from last year. In terms of our operating segment, in Chile, top line expanded 3.9%, explained by higher volumes as average prices were flat. Higher volumes were driven by high single-digit growth of non-alcoholic categories and overall market share gains in alcoholic and non-alcoholic categories. Alcohol products, which encompasses in this segment beer and spirits, decreased low single digits, although flavored low-alcohol ready-to-drink products volumes grew low double digits. Flat average prices were a consequence of a mix effect in the portfolio, mainly due to the growth in non-alcoholic, particularly in water.

Speaker #2: In terms of our operating segment in Chile, top line expanded 3.9%, explained by higher volumes as average prices were flat. Higher volumes were driven by high single-digit growth of non-alcoholic categories and overall market share gains in alcoholic and non-alcoholic categories.

Speaker #2: Alcohol products, which encompasses in this segment beer and spirits, decreased low single digits, although flavored low alcohol ready-to-drink products volumes grew low double digits.

Speaker #2: Flat average prices were a consequence of a mixed effect in the portfolio, mainly due to the growth in non-alcoholic particularly in water. Gross profit increased 10.2%, and gross margin rose 278 basis points, compared to last year, mainly driven by lower costs, coming from the 8.1% appreciation of the Chilean peso against the US dollar.

Felipe Dubernet: Gross profit increased 10.2%. Gross margin rose 278 basis points compared to last year, mainly driven by lower costs coming from the 8.1% appreciation of the Chilean peso against the US dollar, impacting favorably our US dollar-denominated costs and efficiency gains in procurement and manufacturing costs, partially offset by higher aluminum prices. MSD&A expenses as a percentage of net sales grew 31 basis points. Altogether, EBITDA increased 13.7%, and EBITDA margin was up by 173 basis points, reaching 20.0% EBITDA margin. In the international business operating segment, net sales recorded a 6.7% decrease, driven by 5.1% lower average prices in Chilean pesos and a 1.7% contraction in volumes.

Speaker #2: Impacting primarily our US dollar denominated cost and efficiency gains in procurement and manufacturing costs. Partially offset by higher aluminum prices. MSNBNA expenses as percentage of net sales grew 31 basis points, altogether EBITDA increased 13.7%, and EBITDA margin was up by 173 basis points, reaching 20.0% EBITDA margin.

Speaker #2: In the international business operating segment, net sales recorded a 6.7% decrease, driven by 5.1% lower average prices in Chilean pesos and a 1.7% contraction in volumes.

Felipe Dubernet: Lower average prices in Chilean pesos were a consequence of a negative currency translation effect in Argentina and negative mix effect, partially offset by price actions in line with inflation on a year-to-date basis, although still lagging annual inflation in this country. Volumes in this segment were below last year, explained by Argentina through a mid-single digit contraction in beer in a stable market share scenario, partially offset by a low single-digit decrease in the non-alcoholic category. As a result of the challenging scenario in Argentina, gross profit contracted 10.7% in Chilean pesos, and gross margin decreased by 218 basis points due to cost pressures. MSD&A expenses as a percentage of net sales decreased 54 basis points due to efficiencies. In all, EBITDA contracted an 18.76%.

Speaker #2: Lower average prices in Chilean pesos were a consequence of a negative currency translation effect in Argentina and a negative mix effect, partially offset by price actions in line with inflation on a year-to-date basis, although still lagging annual inflation in this country.

Speaker #2: Volumes in these segments were below last year, explained by Argentina to a mid-single-digit contraction in year in a stable market share scenario, partially offset by a low single-digit increase in the non-alcoholic category.

Speaker #2: As a result of the challenging scenario in Argentina gross profit contracted 10.7% in Chilean pesos and gross margin decreased by 218 basis points due to cost pressures.

Speaker #2: MSNBNA expenses as percentage of net sales decreased 54 basis points, due to efficiencies, in all EBITDA contracted an 18.76%. Excluding the before-mentioned restricted in cost in Argentina, EBITDA would have contracted a 10.4%.

Felipe Dubernet: Excluding the beforementioned restructuring cost in Argentina, EBITDA would have contracted a 10.4%. The wine operating segment posted a top-line drop of 7.2%, mostly driven by 5.9% lower volumes and 1.4% lower average prices. Weaker volumes were explained by a contraction in both exports and our domestic markets in line with the industries. The lower average prices were mostly as a result of the appreciation of the Chilean peso against the US dollar and its unfavorable impact on export revenues together with mix effect, partially offset by revenue management initiatives in domestic markets. Gross profit was down 21.8%, and gross margin deteriorated by 589 basis points, mostly due to higher cost of wine. MSD&A expenses as a percentage of net sales were flat.

Speaker #2: The wine operating segment posted a top line drop of 7.2%, mostly driven by 5.9% lower volumes and 1.4% lower average prices. Weaker volumes were explained by a contraction in both exports and our domestic markets.

Speaker #2: In line with the industries, the lower average prices were mostly as a result of their appreciation of the Chilean peso against the US dollar and its internal impact on export revenues together with mixed effect, partially offset by revenue management initiatives in domestic markets.

Speaker #2: Gross profit was down 21.8%, and gross margin deteriorated by 589 basis points, mostly due to higher cost of wine. MSNBNA expenses as a percentage of net sales were flat; altogether, EBITDA decreased 50.1%, and EBITDA margin was down 508 basis points.

Felipe Dubernet: Altogether, EBITDA decreased 50.1%, and EBITDA margin was down 508 basis points. Regarding our main joint venture and associated business in Colombia, we posted mid-teens volume growth during the quarter, continuing on a positive path of building business scale. We are focused on building brand equity to enhance profitable growth in the future in this country. Now, I will be glad to answer any question you may have.

Speaker #2: Regarding our main joint venture and associated business in Colombia, we posted mid-teens volume growth during the quarter, continuing on a positive path of building business escape.

Speaker #2: We are focused on building brand equity to enhance profitable growth in the future in this country. Now I will be glad to answer any question you may have.

Operator 1: Thank you very much for the presentation. We'll now be moving to the Q&A part of the call. If you're dialed in by the telephone, please press star two on your keypad. That's star two on your keypad. If you're dialed in by the web, you may also ask a voice or a text question. Our first question comes from Mr. Fernando Olvera from Bank of America. Please go ahead, sir. Your line is open.

Operator: Thank you very much for the presentation. We'll now be moving to the Q&A part of the call. If you're dialed in by the telephone, please press star two on your keypad. That's star two on your keypad. If you're dialed in by the web, you may also ask a voice or a text question. Our first question comes from Mr. Fernando Olvera from Bank of America. Please go ahead, sir. Your line is open.

Speaker #1: Thank you very much for the presentation. It will now be moving to the Q&A part of the call. If you're dialed in by the telephone, please press star two on your keypad.

Speaker #1: That's star two on your keypad. If you're dialed in via the web, you may also ask a voice or a text question. Our first question comes from Mr. Fernando Olvera from Bank of America.

Speaker #1: Please go ahead, sir. Your line is open.

Fernando Olvera: Hi. Good morning, everyone. Thanks for taking my questions. The first one is related to Chile. If you can explain or give us some color of what were the drivers of the high single-digit growth of non-alcoholic drinks? How do you expect volume to behave in the quarters ahead? That's the first one.

Speaker #3: Hi. Good morning, everyone. Thanks for taking my questions. The first one is related to Chile. If you can explain or give us some color of what were the drivers of the high single-digit growth of non-alcoholic drinks and how do you expect volume to behave in the quarters ahead?

Speaker #3: That's the first one.

Felipe Dubernet: Okay, Fernando, would you like to make me the second question right now? You have two questions.

Speaker #4: Okay, Fernando. Would you like to make me the second question right now? You have two questions? Okay?

Fernando Olvera: Okay.

Felipe Dubernet: Okay.

Fernando Olvera: Sure. The second question is regarding the solid growth margin expansion that you deliver this quarter, you know, how are you thinking about costs the remaining of the year considering the volatility of aluminum prices and the strength of the Chilean peso? I mean, both questions are related to Chile.

Speaker #3: Sure. The second question is regarding the solid gross margin expansion that you deliver this quarter. How are you thinking about costs, the remaining of the year, considering the volatility of aluminum prices and the strength of the Chilean peso?

Speaker #3: I mean, both questions are related to Chile.

Felipe Dubernet: Okay. Thank you, Fernando, for your question.

Speaker #4: Okay. Thank you, Fernando, for your question. First, your first question is the good expansion we have had on the non-alcoholic category. I would say that there are differences between products in terms of growth.

Fernando Olvera: Thank you.

Felipe Dubernet: First, your first question regarding the good expansions we have had on the non-alcoholic category. I would say that there are differences between products in terms of growth. As you know, soft drinks in Chile, we have a high per capita consumption compared to the rest of Latin America. This category particularly grew something flat or very low single digit. However, the rest of the categories show a very good growth, especially driven by water. I think it's more related to consumer trends, some innovations we have had and continued growth of enhanced water or flavored water with natural juices, such as the Mas brand.

Speaker #4: As you know, soft drinks in Chile—we have a high per capita consumption compared to the rest of Latin America. So, this category particularly grew something flat or very low single-digit.

Speaker #4: However, the rest of the categories show a very good growth, especially driven by water. This is, I think, more related to consumer trends, some innovations we have had, and continued growth of enhanced water or flavored water with natural juices.

Speaker #4: Such as the mass brand, in fact, in all these categories of water that also encompasses the enhanced water, we grew double-digit. There are other liquids that regain growth, such as juices, growing mid-single-digit.

Felipe Dubernet: In fact, in all this category of water that also encompasses the enhanced water, we grew double digits. There are other liquids that regain growth, such as juices growing mid-single digits. And also all the functional ones that we could highlight energy drinks and sport drinks. I would say very low growth in soft drinks, however, very high growth in all the rest of the portfolio. It's more related to consumer trends, I would say. This particularly very good growth in the non-alcoholic category in Chile. Going forward, I would say it's difficult to do forecast, especially when the consumer is under pressure given, you know, increases in oil, inflationary pressures.

Speaker #4: So, and also all the functional ones, we could highlight energy drinks and sports drinks. So, I would say very low growth in soft drinks; however, very high growth in all the rest of the portfolio.

Speaker #4: And it's more related to consumer trends, I would say—this particular, very good growth in the non-alcoholic category in Chile. Going forward, I would say it's difficult to do forecasts, especially when the consumer is under pressure given increases in oil and inflationary pressures, so it's difficult to say how things would evolve going forward because, as you know, particularly in Chile, oil prices, gasoline prices, are passed through to the consumer very quickly.

Felipe Dubernet: It's difficult to say how this would evolve going forward because as you know, particularly in Chile, oil prices, gasoline prices, were passed through the consumer very quickly. As you mentioned, I'm linking with your second question, it's a very volatile scenario, not only for us in terms of input costs, but also for the consumer in terms of how its own cost would evolve and this could impact our demand of products. So far, very good results in the non-alcoholic category. Regarding input costs, I would highlight that it's not only aluminum, but also oil prices that impact our distribution costs.

Speaker #4: So as you mentioned, I'm linking with your second question. It's a very volatile scenario. Not only for us in terms of input cost, but also for the consumer in terms of how its own cost would evolve and this could impact our demand.

Speaker #4: Of products. But so far, very good results in the non-alcoholic category. Regarding input cost, I would highlight that it's not only aluminum, but also oil prices that, in fact, our distribution cost.

Felipe Dubernet: This I would say are the main drivers of higher input costs that currently we are having, linked also with all the plastic related packaging materials such as PET, polyethylene and polypropylene that we use especially for packaging. As you mentioned, we delivered a solid gross margin in Chile, driven by, of course, the appreciation of the Chilean peso, but also efficiencies in manufacturing and in procurement. Going forward, I would say, every day is Today I saw Bloomberg and oil prices were down 5%, but maybe in a week we could have plus 5%. It's very volatile.

Speaker #4: This, I would say, are the main drivers of higher input cost that currently we are having. Linked also with all the plastic-related packaging materials, such as PET, polyethylene, and polypropylene that we use especially for packaging.

Speaker #4: So, as you mentioned, we deliver a solid gross margin in Chile, driven by, of course, the appreciation of the Chilean peso, but also efficiencies in manufacturing and in procurement.

Speaker #4: Going forward, I would say every day is today, I saw Bloomberg and oil prices were down 5%, but maybe in a week we could have plus 5%.

Speaker #4: So it's very volatile. However, we have took actions since the beginning of this rally on prices especially, as you mentioned, aluminum, but also oil.

Felipe Dubernet: However, we have took actions since the beginning of this rally on prices, especially as you mentioned aluminum, but also oil. We have in end of March, April increased prices across the portfolio.

Speaker #4: And we have in end of March, April, increased prices across the portfolio.

Fernando Olvera: Great. Thank you, Felipe.

Speaker #3: Great. Thank you, Felipe.

Speaker #1: Thank you very much. Our next question comes from Constanza Gonzalez from Quest Capital. Please go ahead, ma'am. Your line is open.

Operator 2: Thank you very much. Our next question comes from Constanza Gonzalez from Quest Capital. Please go ahead, ma'am, your line is open.

Operator: Thank you very much. Our next question comes from Constanza Gonzalez from Quest Capital. Please go ahead, ma'am, your line is open.

Constanza Gonzalez: Good afternoon, Felipe and the rest of the team. I have two questions. The first concern is about Chile, the margin. Are there any spend that can be replicable for the rest of the year? Are these levels sustainable for the remaining of the 2026? The second question is regarding Argentina. Do you expect a recovery in volumes in the coming quarters?

Speaker #5: Good afternoon, Felipe and the rest of the team. I have two questions. The first concern is about Chile with the margin. Are there any specs that can be replicable for the rest of the year?

Speaker #5: Are these levels sustainable for the remaining of the 2026? And my second question is regarding Argentina. Do you expect a recovery in volumes in the coming quarters?

Felipe Dubernet: Yeah. Regarding EBITDA margin, as you mentioned, yeah, we have had a nice expansion in terms of EBITDA margin for the because of we had a overall better prices than last year in all the categories. We suffered from mix effects. That's logical when you sell more non-alcoholic than alcoholic products, of course it will have an impact on price per hectoliter, okay? Also, unit cost helped us during Q1. Going forward, your question, I repeat what I have answered to Fernando Olvera in the previous question. At the end, we are suffering from a very volatile scenario. We are trying to do everything to compensate these new input costs, but we need to be careful because it's a balance between volume and price.

Speaker #4: Yeah. Regarding the margin, as you mentioned, yeah, we have had a nice expansion in terms of the margin for the because we had overall better prices than last year in all the categories.

Speaker #4: We suffer from mixed effects. But it's logical. When you sell more non-alcoholic than alcoholic products, of course, we'll have an impact on price per hectolic.

Speaker #4: Okay. Also, unit cost helped us during the first quarter. Going forward, to your question, I repeat what I have answered to Fernando Olvera in the previous question.

Speaker #4: At the end, we are suffering from a very volatile scenario. We are trying to do everything to compensate these new input costs. But we need to be careful because it's a balance between volume and price.

Felipe Dubernet: As I mentioned, we have increased prices in Chile, end of March, beginning of April in all the categories. Also we are searching for additional efficiencies in order to compensate the effects. It's very volatile and it's too early until the conflict is not reaching an end and still, we are suffering with this volatility in oil prices and also aluminum prices and other packaging materials, as I said, where it is difficult to do a proper forecast. I will Of course, we have scenarios internally, that so far with the price increases we did, more or less, we are able to compensate.

Speaker #4: As I mentioned, we have increased prices in Chile end of March. Beginning of April in all the categories. And also, we are searching for additional efficiencies in order to compensate the effects.

Speaker #4: But it's very volatile and it's too early. Until the conflict is not reaching an end and still we are suffering with this volatility in oil prices and also aluminum prices and other packaging materials, as I said, it is difficult to do a proper forecast and I will not of course, we have scenarios internally that so far with the price increases we did, more or less, we are able to compensate.

Felipe Dubernet: As I mentioned, we could face or we could find a more soft consumer, in terms of that the consumer not only consume or buy our products, but has other needs. For example, to run the car, now he's paying more for the gasoline for his car. We need to be very careful. Regarding Argentina volumes, yeah, the Q1 I would say was soft, still soft. We decreased our volumes in non-alcoholic as we mentioned, mid-single digit. The Q1 of last year was a very high comp. In the following quarters, I'm sure we will be seeing a growth when you compare Q2 against Q2, Q3 against Q3, Q4 against Q4.

Speaker #4: However, as I mentioned, we could face or we could find a more soft consumer in terms of the consumer not only consume or buy our products, but has other needs.

Speaker #4: For example, to run the car. And now he's paying more for the gasoline, for his car. So we need to be very careful. Regarding Argentina, volumes, yeah, the first quarter, I would say, was soft, still soft.

Speaker #4: We decreased our volumes in non-alcoholic as we mentioned in mid-single digit. However, the first quarter of last year was a very high cone. In the following quarters, I'm sure we will be seeing a growth when you compare quarter two against quarter two, quarter three against quarter three.

Speaker #4: And quarter four against quarter four. And this is related because the last nine months of last year were particularly weak in Argentina. Now, I think we face a more stable macroeconomic situation since however, with a lot of inflationary pressures, I would say.

Felipe Dubernet: This is related because the last 9 months of last year were particularly weak in Argentina. Now I think we face a more stable macroeconomic situation, it seems. However, with a lot of inflationary pressures, I would say. We have high inflation in Argentina. We have been able so far to increase prices in line with inflation as we kept a lag from last year. Last year our prices increases were below inflation. Overall, in Argentina, I would say we have a more favorable comps. However, we don't see an extraordinary good recovery. However, it's more stable so far. Okay.

Speaker #4: We have high inflation in Argentina. We have been able so far to increase prices in line with inflation. As we kept a lag from last year.

Speaker #4: Last year, our prices increases were below inflation. So overall, in Argentina, I would say we have a more favorable cones. However, we don't see an extraordinary good recovery.

Speaker #4: However, it's more stable. So far.

Constanza Gonzalez: Thank you, Felipe. I have a follow-up question. Can you give us a sensitivity in EBITDA according to the volatility in prices in oil prices?

Speaker #5: Thank you, Felipe. I have a follow-up question. Can you give us a sensibility in the data according to the volatility in prices in oil?

Speaker #5: Oil prices?

Felipe Dubernet: I would say in terms of the impact on oil prices, we have direct effects that are completely direct because all the contracts and the drivers are particularly linked to oil prices, such as distribution costs. This has significant impact. Other costs such as glass, that is very energy intensive. I would say that each $30 per barrel of oil increase, we are talking something like $30 million direct impact of oil prices. This could be compensate on the other hand by the appreciation of the Chilean peso. Each 1% of appreciation of the Chilean peso is about $4 million.

Speaker #4: Yeah. I would say in terms of the impact on oil prices, we have direct effects that are completely direct because all the contracts and the drivers are particularly linked to oil prices, such as distribution costs.

Speaker #4: This has significant impact. And other costs such as glass that is very energy-intensive. I would say that each $30 per barrel of oil increase we are talking something like $30 million.

Speaker #4: Direct impact of oil prices. But this could be compensated on the other hand by the appreciation of the Chilean peso. Each 1% of appreciation of the Chilean peso is about $4,000 $4 million.

Felipe Dubernet: If we have 10% of appreciation of the Chilean peso, we are talking about significant money to compensate. These are theoretical effects, because at the end, it would depend how this would evolve in terms of the volatility we are seeing today.

Speaker #4: So if we have 10% appreciation of the Chilean peso, we are talking about significant money to compensate. But these are theoretical effects. Because, at the end, it would depend on how this would evolve in terms of the volatility we are seeing today.

Constanza Gonzalez: Thank you, Felipe.

Speaker #5: Thank you, Felipe.

Operator 1: Okay. Thank you very much. Just a reminder once again, star two for any additional questions. Star two. You may also ask a text question via the web. We'll give another few seconds for any additional questions to come through. Okay, we have a follow-up question from Fernando Olvera from Bank of America. Please go ahead, Fernando. Your line is open.

Operator: Okay. Thank you very much. Just a reminder once again, star two for any additional questions. Star two. You may also ask a text question via the web. We'll give another few seconds for any additional questions to come through. Okay, we have a follow-up question from Fernando Olvera from Bank of America. Please go ahead, Fernando. Your line is open.

Speaker #1: Okay, thank you very much. Just a reminder, once again, STAR 2 for any additional questions. STAR 2, you may also ask a text question via the web.

Speaker #1: We'll give another few seconds for any additional questions to come through. Okay. We have a follow-up question from Fernando Olvera from Bank of America.

Speaker #1: Please go ahead, Fernando. Your line is open.

Fernando Olvera: Hi, thanks for taking my question again. I have just a quick one regarding the wine business. You know, if you can share what is your outlook for the remaining of the year and, I mean, and if you have seen any sign that suggests volume stabilization or even a recovery of the market.

Speaker #6: Hi. Thanks for taking my question again. I have just a quick one regarding the wine business. If you can share what is your outlook for the remainder of the year and if you have seen any sign that suggests volume stabilization or even a recovery, of the market?

Felipe Dubernet: Thank you. Thank you, Fernando. I would say overall, the wine consumption in the world, Chile is not the exception. Also overall in the world, wine is consumption is declining. At the end, we need to think differently to enhance innovation in order And to focus on key markets and key products or key brands, especially domestic market. The outlook going forward, I would say the export business is different than the domestic one. I think the domestic one will continue to experience a decline on that. This could be transferred, this consumption, to beer consumption or to other kind of alcoholic beverage such as the low alcohol ready-to-drink flavored alcoholic products. There's a switch of the consumer.

Speaker #4: Thank you. Thank you, Fernando. I would say overall, with wine consumption in the world, Chile is not the exception. And also, overall in the world, wine consumption is declining.

Speaker #4: So at the end, we need to think differently to enhance innovation. And to focus on key markets and key products or key brands. Especially in the domestic market.

Speaker #4: The outlook going forward—I would say the export business is different than the domestic one. I think the domestic one will continue to experience a decline.

Speaker #4: On that. But this could be transferred, this consumption to beer consumption or to other kind of alcoholic beverage such as the low alcohol ready-to-drink flavored alcoholic products.

Speaker #4: There is a switch of the consumer. So I would say the outlook is not positive. In our view, because at the end, we are experiencing what the world is experiencing in terms of this particular category.

Felipe Dubernet: I would say the outlook is not positive, in our view, because at the end, we are experiencing what the world is experiencing in terms of this particular category. However, there are opportunities in the export market, as there will be certainly consolidation in the industry, and also we have enough scale to operate in different markets in the export business. Because at the end, in terms of market share of our exports, of the total Chilean wine that is a number one brand in the world, I would say we will be growing. In the domestic, I would say is more a declining, but however, focusing on more profitable products and on innovation.

Speaker #4: However, there are opportunities in the export market. As there would be certainly consolidation in the industry. And also, we have enough scale to operate in different markets in the export business.

Speaker #4: So because at the end, in terms of market share of our exports of the total Chilean wine that is an overall brand in the world, I would say we will be growing.

Speaker #4: In the domestic, I would say it's more a declining, but, however, focusing on more profitable products and on innovation.

Fernando Olvera: Okay. Felipe, in that regard, have you considered selling the wine business?

Speaker #6: Okay, Felipe, in that regard, have you considered selling the wine business?

Felipe Dubernet: No. No, because it has synergies, especially in the domestic market, and as I said, the export business will be growing its profitability and market share. Also consider that the wine business, particularly this year, is very affected by the cyclical wine costs. The last harvest was almost normal, let's say. However, this year we have a particularly perfect storm. Lower consumption globally, as I said, and particularly domestic, in the domestic business, but we have a very high market share. I would say, as I said, strategy is to focus more on a more profitable portfolio, doing efficiencies, and because in the route to market, we have synergies so far. Mm-hmm.

Speaker #4: No, no, because it has synergies, especially in the domestic market. And as I said, the export business will be growing its profitability and market share.

Speaker #4: Also consider that the wine business, particularly this year, is very affected by cyclical wine costs. The last harvest was almost normal, let's say. However, this year, we have a particularly perfect storm.

Speaker #4: So lower consumption globally, as I said, and particularly domestic in the domestic business. But we have a very high market share. So I would say, as I said, strategy is to focus more on a more profitable portfolio doing efficiencies.

Speaker #4: And because in the route to market, we have synergies so far. So yeah.

Fernando Olvera: Okay. Oh, great. Thank you, Felipe.

Speaker #6: Okay. Oh, great. Thank you, Felipe.

Operator 1: Thank you very much. We have a question from Santiago Petry from Franklin Templeton. Hello, thank you for the call. Can you please provide us volume breakdown in percentage terms between alcoholic and non-alcoholic in Chile and international? Thank you.

Operator: Thank you very much. We have a question from Santiago Petry from Franklin Templeton. Hello, thank you for the call. Can you please provide us volume breakdown in percentage terms between alcoholic and non-alcoholic in Chile and international? Thank you.

Speaker #1: Thank you very much. We have a question from Santiago Petri from Franklin Templeton. Hello, and thank you for the call. Can you please provide us volume breakdown in percentage terms between alcoholic and non-alcoholic in Chile and international?

Speaker #1: Thank you.

Felipe Dubernet: Hello, Santiago. Thank you for the question. As we stated in the press release, we made the disclosure between how much was the growth between alcoholic and non-alcoholic. Particularly in non-alcoholic, we grew high single digits, and in alcoholic products, we declined low single digits. And this is what we can say. On the other hand, particularly in Chile, we gain both alcoholic and non-alcoholic products market share. In the other important market that is Argentina, we also stated that we decreased the alcoholic volumes by mid-single digits. On the other hand, we grew the non-alcoholic portfolio by low single digits. That is the disclosure.

Speaker #4: No. Hello. Hello, Santiago. Thank you for the question. As we stated in the press release, we made the disclosure between how much was the growth between alcoholic and non-alcoholic.

Speaker #4: Particularly non-alcoholic, we grew high single digit. And in alcoholic products, we declined low single digit. So and this is what we can say. On the other hand, particularly in Chile, we gained both alcoholic and non-alcoholic products market share.

Speaker #4: In the other market, the other important market that is Argentina, we also stated that we decreased the alcoholic consumption. The alcoholic volumes by mid-single digit.

Speaker #4: On the other hand, we grew the alcoholic and the non-alcoholic portfolio by low single digits. So that's the disclosure.

Operator 1: Okay. Thank you very much. Reminder, star 2 for any final questions. We'll give another few seconds. Okay. It looks like we have no further questions at this point. I'll be passing the line back to the management and IR team for the concluding remarks.

Operator: Okay. Thank you very much. Reminder, star 2 for any final questions. We'll give another few seconds. Okay. It looks like we have no further questions at this point. I'll be passing the line back to the management and IR team for the concluding remarks.

Speaker #1: Okay. Thank you very much. Reminder star two for any final questions. We'll give another few seconds. Okay. It looks like we have no further questions at this point.

Speaker #1: I'll be passing the line back to the management and IR team for the concluding remarks.

Felipe Dubernet: Thank you you all for attending this conference call. In summary, during Q1 of 2026, we delivered a robust performance in Chile, our main operating segment, and faced challenging business environment still in Argentina and particularly in the wine business. Looking forward, we will continue working under the execution of CCU's 2025, 2027 strategic plan and its three pillars, profitability, growth, and sustainability, which will be crucial to face the similar moment that the global economy is going through, given current geopolitical conflicts which have materially increased costs globally, increasing inflationary pressures. Our company is not exempt from this, forcing us to act with caution and deploy our resiliency and our adaptation capacity to navigate this uncertain and volatile scenario.

Speaker #4: Thank you, you all, for attending this conference call. In summary, during first quarter, 2026, we delivered a robust performance in Chile. Our main operating segment.

Speaker #4: And faced challenging business environment, still in Argentina, and particularly in the wine business. Looking forward, we will continue working under the execution of CCUs 2025-2027 strategic plan.

Speaker #4: And it's three pillars: profitability, growth, and sustainability. Which will be crucial to face the singular moment that the global economy is going through, given current geopolitical conflicts which have materially increased cost globally.

Speaker #4: Increasing inflationary pressures. Our company is not exempt from this. Forcing us to act with caution and deploy our resiliency and adaptation capacity, navigate this uncertain and volatile scenario.

Felipe Dubernet: Regarding this, CCU already took, at the end of the quarter, proactive actions of revenue management initiatives, and we will continue reinforcing efficiency efforts and managing CapEx priorities. All of these initiatives aim to offset the negative impact of the current scenario. Thank you all, and I wish you a wonderful afternoon.

Speaker #4: Regarding this, CCU already took at the end of the quarter proactive actions of revenue management initiatives. And we will continue reinforcing efficiency efforts and managing CAPEX priorities.

Speaker #4: All of these initiatives aim to offset the negative impact of the current scenario. Thank you, you all. And I wish you a wonderful afternoon.

Operator 1: Thank you very much. This concludes today's conference call. We'll now be closing all the lines. Thank you and goodbye.

Operator: Thank you very much. This concludes today's conference call. We'll now be closing all the lines. Thank you and goodbye.