CCU

Business Context and Reporting Period

Company: Compañía Cervecerías Unidas S.A. (United Breweries Company, Inc.)
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Fourth Quarter and Full Year ended December 31, 2025
Release Date: February 24, 2026

CCU is a multi-category beverage company operating in Chile, Argentina, Bolivia, Colombia, Paraguay, and Uruguay. The company reported results for 4Q25 and the full year 2025, highlighting a divergence in performance between its core Chilean operations and its International Business and Wine segments.

Key Financial Metrics

Liquidity and Debt (as of Dec 31, 2025):

• Cash and Cash Equivalents: CLP 519,176 million (down from CLP 707,123 million in 2024).
• Total Financial Debt: CLP 1,281,541 million.
• Net Financial Debt: CLP 762,365 million.
• Net Financial Debt / EBITDA: 2.03x (vs. 1.76x in 2024).
• Liquidity Ratio: 1.90 (vs. 2.06 in 2024).

Material Changes vs. Prior Period

Segment Performance (4Q25):

• Chile: The core segment drove volume growth (+4.1%) and EBITDA expansion (+6.0% to CLP 113,313 million). Net sales rose 5.5% due to volume increases in non-alcoholic categories and revenue management.
• International Business: Significant contraction with Net sales down 36.3% and EBITDA down 44.5% (to CLP 40,370 million). Driven by a high-single-digit beer industry contraction in Argentina, negative currency translation effects, and pricing below inflation.
• Wine: Net sales fell 16.8% and EBITDA dropped 45.2% (to CLP 6,698 million). Headwinds included a 9.7% volume decline, a stronger Chilean Peso impacting exports, and higher wine costs.

Full Year 2025 Adjustments:

Excluding a non-recurring gain from the sale of land in Chile in 2Q24 (CLP 28,669 million pre-tax), YTD 2025 EBITDA decreased 2.9% and Net Income decreased 16.3% compared to the prior year. Organic volume growth for the full year was 0.6%, fully driven by the Chile segment.

Guidance, Outlook, and Risks

Management Commentary:

• Management expressed optimism regarding the company's core strengths despite a challenging macroeconomic environment in Argentina and headwinds in the wine business.
• Strategic focus remains on the 2025-2027 plan pillars: Profitability, Growth, and Sustainability.
• Profitability efforts include revenue management and high-margin innovation (e.g., low-alcohol ready-to-drink products).
• Growth initiatives include the integration of PepsiCo's portfolio in Paraguay and volume expansion in Colombia and Bolivia.

Risks and Contingencies:

• Argentina Macro Environment: Continued volatility in the Argentine Peso (ARS) and inflationary pressures negatively impact translation and pricing power.
• Foreign Exchange: Fluctuations in the Chilean Peso (CLP) against the USD impact export revenues (Wine segment) and USD-linked costs.
• Derivative Contracts: Significant losses in "Other gains/(losses)" (CLP 23,359 million in 4Q25) were attributed to forward contracts used to mitigate FX risks.
• Raw Material Costs: Rising costs for aluminum and PET recycling ("CirCCUlar" plant) offset savings in sugar and malt.

Investor Verification Checklist

• Argentina Exposure: Verify the sustainability of the International Business segment's recovery given the 44.5% EBITDA drop and ongoing inflationary pressures in Argentina.
• FX Hedging Effectiveness: Review the impact of derivative contracts on non-operating results, which contributed significantly to the loss in 4Q25.
• Organic vs. Reported Growth: Distinguish between reported volume growth (7.3% YTD) and organic growth (0.6% YTD) to understand the impact of recent consolidations (ADO in Argentina, AV in Paraguay).
• Debt Leverage: Monitor the increase in Net Financial Debt/EBITDA ratio to 2.03x and the reduction in cash reserves.
• Non-Recurring Items: Confirm the exclusion of the 2Q24 land sale gain when comparing full-year profitability trends.