CHILE: Corona Argentinean one-off drives CCU in H1
- Half-year net profits jump 14.9% to CLP64.04bn (US$111.4m)
- Sales in six months to end of June rise 9.3% to CLP598.36bn
- Operating profits in H1 increase 12% to CLP124.47bn
- Second-quarter net profits soar 52.1% to CLP23.47bn
- Sales in three months to end of June up 8.3% to CLP263.55bn
- Q2 operating profits lift 37.5% to CLP52.14bn
CCU released its half-year results last week
CCU has seen its profits perform well in the first half of 2014, thanks to a one-off payment to its Argentinean unit.
A 52% leap in net profits in the three months to the end of June compared to a 0.6% rise in profits in Q1. The bottom line was boosted markedly by a compensation payment made to CICSA, its subsidiary in Argentina, following the termination of its importation and distribution agreement for Anheuser-Busch InBev's Corona and Negra Modelo brands.
Stripping out this one-off, as well as a compensation payment for the loss of its production and distribution rights for A-B InBev's Budweiser in Uruguay, net profits in Q2 were down by 27.4% year-on-year.
The 6.5% lift in half-year volumes mirrored the first quarter, when group volumes were up by 6.4%.
CCU also flagged a healthy performance by its wine operations, where half-year sales increased by 13.1%.
"We are pleased with CCU’s second quarter 2014 consolidated volumes results," said CEO Jose Patricio Jottar Nasrallah. "We remain optimistic in our search for growth opportunities, as well as cautious in this current complex scenario."
The group will continue with its "efforts in cost savings, pricing and maximising margins initiatives" across all operations", he added.
CCU operates across the beer, soft drinks, spirits, bottled water and wine categories in Chile, Argentina, Uruguay, Paraguay and Bolivia.
To read CCU's official statement, click here.
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