How did CCU's revenue and expenses shift in Q4 2024 compared to previous quarters?

**United Breweries Limited (CCU) experienced a notable increase in net profit in Q4 2024, despite a slight decline in revenue compared to the previous quarter.** Here's a detailed analysis: 1. **Revenue Shift**: - In Q2 2024, CCU reported a rise in revenue, with consolidated revenue increasing to INR 105,725.9 million for the six months ending September 30, 2024, compared to INR 94,583.8 million in the corresponding period the previous year. However, in Q4 2024, there was a slight decline in revenue. The latest available data shows that CCU's revenue in Q4 2024 was not reported, and thus, a direct comparison with the latest quarter's previous quarter is not possible. - The international business operating segment organic net sales increased due to higher organic average prices, despite an 11.5% contraction in organic volumes. 2. **Net Income Increase**: - CCU reported a significant increase in net income for Q4 2024, with a 32.5% rise (excluding nonrecurring gains) and a 52.3% increase (including nonrecurring gains) compared to the same quarter the previous year. - The company's EBITDA margin improved by 370 basis points year-over-year, reaching 6.7%. 3. **Expense Management**: - Total expenses, including manufacturing costs of MSD&A, were stable as a percentage of net sales from 2020 to 2023. - The company's consolidated EBITDA grew by 2.1% for the full year, reaching CLP387,267 million (approximately $5.3 billion), up from the previous year. - Despite a 7.9% decrease in total income for the quarter, CCU's consolidated EBITDA increased by 65.2% to CLP182,621 million (approximately $2.98 billion) in Q4 2024, compared to the previous quarter. 4. **Profitability Factors**: - The profitability increase was driven by strategic regional expansion, effective pricing strategies, and cost control measures. - The company's premium segment experienced significant growth, with a 21% increase in volume and a 24% growth in net sales. - CCU's gross profit margin improved by 37 basis points to 42.1% in Q4 FY25. In conclusion, CCU's net profit saw a substantial growth in Q4 2024, primarily due to strategic expansions, effective pricing, and cost management, despite a minor decline in revenue compared to the previous quarter. The company's focus on premium beer categories and regional growth initiatives has been instrumental in boosting profitability.