E-Malt.com News article: 3068

Chile's largest brewer CCU reported on Wednesday, August 4, a sharp improvement in its second-quarter earnings compared with a year earlier due to higher sales volumes and prices despite increased financial expenses. CCU trimmed its net loss in the April-June period to $0.1 million from $1.5 million a year earlier. Stronger sales growth in soft drinks and beer in Chile and Argentina plus growth in the Chilean wine segment boosted CCU's revenue by 8.3 percent to $132.1 million.

Operating profit -- earnings before interest, taxes, amortization and non-cash financial items -- soared 274.7 % despite a slight increase in operating costs. "During this period, the Chilean and Argentine beer businesses -- as well as soft drinks, mineral water and nectars -- had a very positive performance," CCU said in a report.

The company, controlled by a holding company owned by Chile's Quinenco and Dutch brewer Heineken NV, sells beer in Chile and Argentina and also produces soft drinks, mineral water, wine, juice, liquor and candy. The gains were partly offset by a decrease in financial income caused by lower interest rates, greater debt and a depreciation of the Chilean peso.

Earlier on Wednesday, CCU said its January-June net profit plunged 48.7 percent against a year earlier to 16.460 billion pesos due to the absence of the gain generated in the first quarter of last year from the sale of Croatian assets.

CCU previously said its overall sales volume rose 4.4 % in the first first six months of the year and its second-quarter volumes were up 3.4 percent.

Earlier this year, the company forecast sales growth in Chile in line with overall economic growth, or 4 percent to 5 percent. It also estimated sales in Argentina would outstrip the pace of the economy.

CCU's first-quarter 2004 net profit fell by half from last year due to an extraordinary gain in 2003 and as financial items offset robust sales growth. ($1 = 636.30 Chilean pesos)


06 August, 2004