Price rises boosted beer sales at Chile’s Compania Cervecerias Unidas (CCU) in 2009, with profits lifted by gains from a deal with Nestle Waters.

Net sales for the 12 months to the end of December rose by 9.3% on 2008 to CHP776bn (US$1.5bn), driven by a 4% rise in drinks volume sales and a 7.5% rise in average prices, said CCU yesterday (18 March).

The brewer, wine and soft drinks producer said that net profits rose to CHP128bn, bolstered by a CHP20bn gain on the sale of a 29.9% stake in Aguas CCU-Nestle Chile to Nestle Waters.

Operating profits rose by 11% for the year, to CHP137.4bn.

CCU said it finished the year with a strong balance sheet, showing net debt to ebitda ratio of 0.5.

The group’s domestic beer division survived a 1% sales decline in the fourth quarter to report net sales up 3% for the year, to CHP278bn.

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Beer sales in Argentina rose by 19% for the year, with wine sales up 35% and soft drinks sales up nearly 8%. All divisions reported slowdowns in the fourth quarter, apart from spirits, which increased sales by 2.2% in the final three months – compared to 0.1% for the full-year.

CCU, which is 33%-owned by Heineken, also provided an update on damage sustained in the powerful earthquake that struck Chile on 27 February.

Its brewery in Santiago has reopened and is “operating partially”, as is the winery in Isla de Maipo, said CCU.

“Due to the many variables involved, the enormous workload affecting the insurance companies and adjusters and the
time required by this process, the financial impact has not been determined yet.

“The 1st quarter 2010 financial statements, to be published in May, should reflect preliminarily this impact,” said the group.

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