Compania Cervecerias Unidas (NYSE:CCU) Posts Earnings Results, Meets Expectations

Compania Cervecerias Unidas (NYSE:CCU) released its quarterly earnings data on Wednesday. The company reported ($0.12) EPS for the quarter, meeting analysts’ consensus estimates of ($0.12), FiscalAI reports. Compania Cervecerias Unidas had a return on equity of 7.34% and a net margin of 4.14%.The business had revenue of $659.17 million during the quarter, compared to the consensus estimate of $641.90 million.

Here are the key takeaways from Compania Cervecerias Unidas’ conference call:

• Consolidated EBITDA rose 59.4% year over year, supported by a 26.2% increase in Chile and a 25.8% reduction in the international segment’s EBITDA loss. Net sales grew 4.8% on 6.4% higher average prices, despite a 1.5% volume decline.
• Chile delivered 2.5% volume growth and gained overall market share, led by mid-single-digit growth in non-alcoholic categories and double-digit expansion in flavored, low-alcohol and ready-to-drink products. CCU also acquired Nestlé Chile’s 49% stake in Aguas CCU-Nestlé, reaching full ownership of the growing water business.
• The wine segment remained a major weakness, with volumes down 13.7% and EBITDA falling 61.9% due to global category pressure, unfavorable mix, a stronger Chilean peso and higher wine costs. CCU incurred CLP 1.633 billion in wine restructuring expenses, though management expects improved harvest conditions to reduce input costs over time.
• Argentina’s beer and water volumes declined at a high-single-digit rate amid weak consumption, while Bolivia was affected by social unrest and roadblocks. Management cited improving month-over-month trends since March and expects a potential recovery in Argentina during the second half, but acknowledged that macroeconomic conditions remain volatile.
• New CEO Eduardo Ffrench-Davis introduced the four-pillar “Vamos por Más” strategy, emphasizing business focus, operational synergies, agility and digital transformation. The company is preparing a new four-year plan through 2030, while targeting efficiencies, high-margin innovation and growth in core markets such as Colombia; however, the water acquisition increased net leverage from 1.7x to 2.4x EBITDA.

Compania Cervecerias Unidas Stock Up 0.7%

NYSE CCU traded up $0.08 during trading hours on Wednesday, reaching $11.74. 58,926 shares of the company’s stock were exchanged, compared to its average volume of 188,788. The company’s 50-day moving average is $11.37 and its two-hundred day moving average is $12.21. Compania Cervecerias Unidas has a one year low of $10.71 and a one year high of $15.36. The company has a debt-to-equity ratio of 0.63, a quick ratio of 1.46 and a current ratio of 2.04. The company has a market capitalization of $2.17 billion, a price-to-earnings ratio of 17.26, a price-to-earnings-growth ratio of 0.78 and a beta of 0.52.

Hedge Funds Weigh In On Compania Cervecerias Unidas

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Arax Advisory Partners boosted its stake in Compania Cervecerias Unidas by 917.9% in the 4th quarter. Arax Advisory Partners now owns 2,270 shares of the company’s stock valued at $29,000 after purchasing an additional 2,047 shares during the period. Parallel Advisors LLC lifted its stake in shares of Compania Cervecerias Unidas by 69.1% in the 4th quarter. Parallel Advisors LLC now owns 2,557 shares of the company’s stock valued at $33,000 after purchasing an additional 1,045 shares during the period. EverSource Wealth Advisors LLC increased its stake in Compania Cervecerias Unidas by 1,252.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 3,233 shares of the company’s stock valued at $42,000 after purchasing an additional 2,994 shares in the last quarter. Rhumbline Advisers lifted its position in shares of Compania Cervecerias Unidas by 140.6% during the first quarter. Rhumbline Advisers now owns 6,555 shares of the company’s stock valued at $100,000 after purchasing an additional 3,831 shares in the last quarter. Finally, Advisory Services Network LLC purchased a new stake in Compania Cervecerias Unidas in the third quarter worth $91,000. 24.07% of the stock is owned by institutional investors.

Analyst Ratings Changes

CCU has been the subject of a number of recent analyst reports. Wall Street Zen cut Compania Cervecerias Unidas from a “strong-buy” rating to a “buy” rating in a research note on Saturday, June 6th. Weiss Ratings cut shares of Compania Cervecerias Unidas from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, June 8th. Finally, Zacks Research raised shares of Compania Cervecerias Unidas from a “strong sell” rating to a “hold” rating in a research note on Monday, June 15th. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Reduce” and a consensus price target of $12.00.

About Compania Cervecerias Unidas

Compañía Cervecerías Unidas SA (NYSE: CCU) is a Chile-based beverages company with operations across Latin America. The company engages in the production, marketing and distribution of beer, soft drinks, wines, mineral water and other non-alcoholic beverages. Through a combination of owned brands and licensing agreements, CCU serves both domestic and export markets with a diversified portfolio designed to meet evolving consumer tastes.

In its beer segment, CCU produces flagship brands such as Cristal, Escudo and Royal Guard, while also brewing international labels under license, including Heineken in select markets.