Chile, Santiago: Chile's leading brewer CCU announced on May 5 that first-quarter net profit fell by half from last year due to an extraordinary gain in 2003 and as financial items offset robust sales growth. Net profit fell to 16.302 billion pesos (US$26.97 million) from 32.645 billion pesos year-on-year. Sales grew 10.3 % to 110.293 billion pesos, mainly on greater volumes and better prices for its products.

The company posted a one-time gain in March 2003 from the sale of Croatian brewer KP Adria to Heineken. It also noted setbacks compared with last year from the calculation of exchange rate differences and adjustments for inflation. CCU sells beer, wine, soft drinks, mineral water and nectar in Chile and Argentina.

The company, formally known as Compania Cervecerias Unidas, also forecast 2004 sales growth in line with overall economic growth in Chile and growth outstripping the pace of the economy in Argentina.

CCU sells Heineken and Budweiser beers in Argentina and Chile and also produces soft drinks, wine, juice, mineral water, pisco and candy.

"In the last 12 months we have seen strong growth in soft drinks and beer, and we believe that growth will hold steady or increase this year, in line with Chile's economic growth," said Guillermo Luksic, president of CCU.

07 May, 2004