Compania Cervecerias Unidas (NYSE:CCU) Releases Earnings Results, Hits Estimates

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

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 Performance

Shares of Compania Cervecerias Unidas stock remained flat at $11.66 on Wednesday. 49,023 shares of the stock were exchanged, compared to its average volume of 188,765. The company has a current ratio of 2.04, a quick ratio of 1.46 and a debt-to-equity ratio of 0.63. The business has a fifty day moving average price of $11.37 and a 200-day moving average price of $12.21. The company has a market capitalization of $2.15 billion, a PE ratio of 17.15, a P/E/G ratio of 0.78 and a beta of 0.52. Compania Cervecerias Unidas has a twelve month low of $10.71 and a twelve month high of $15.36.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of CCU. Arax Advisory Partners boosted its holdings in Compania Cervecerias Unidas by 917.9% during the fourth quarter. Arax Advisory Partners now owns 2,270 shares of the company’s stock valued at $29,000 after acquiring an additional 2,047 shares during the period. Parallel Advisors LLC lifted its position in shares of Compania Cervecerias Unidas by 69.1% during the 4th quarter. Parallel Advisors LLC now owns 2,557 shares of the company’s stock worth $33,000 after purchasing an additional 1,045 shares during the last quarter. EverSource Wealth Advisors LLC boosted 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 during the period. Rhumbline Advisers boosted its stake in Compania Cervecerias Unidas by 140.6% during the 1st quarter. Rhumbline Advisers now owns 6,555 shares of the company’s stock valued at $100,000 after purchasing an additional 3,831 shares during the period. Finally, Advisory Services Network LLC acquired a new stake in Compania Cervecerias Unidas in the 3rd quarter valued at approximately $91,000. Institutional investors own 24.07% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Wall Street Zen lowered Compania Cervecerias Unidas from a “strong-buy” rating to a “buy” rating in a research report on Saturday, June 6th. Zacks Research upgraded Compania Cervecerias Unidas from a “strong sell” rating to a “hold” rating in a report on Monday, June 15th. Finally, Weiss Ratings downgraded shares of Compania Cervecerias Unidas from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, June 8th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Reduce” and a consensus price target of $12.00.

Compania Cervecerias Unidas Company Profile

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.