The leading brewer in Chile, CCU (Compania Cervecerias Unidas S.A.), part-owned by the Chilean Quinenco group, has reported net earnings for the fourth quarter of 2002 of US$15.7m, down 5.9% from US$16.7m in the same period of 2001. CCU, attributed the fall in profits to the economic crisis and currency devaluation in Argentina and weak internal demand in Chile.

"These results are the consequence of the economic situation in Argentina, that has not yet allowed us to transfer the higher costs of raw materials to prices, and the still weak internal demand in Chile," said CEO, Patricio Jottar.

Fourth-quarter operating income fell by 26.6% to US20.1m, while net sales declined by 5.7% to US$143.3m. However, volumes were up 5.4%, driven by growth in beer sales in Argentina and wine export sales. Consolidated full-year 2002 profits fell by 44.2% to US30.7m, the company said.

24 February, 2003