CCU Latest Report

Key Financial Data

1. Chilean CCU's total operating revenue at December 31, 2024 was Rmb968.078 billion (~$140.083 billion), up 69.06% YoY from Rmb572.607 billion (~$83.790 billion) in 2023. This growth indicates strong performance in revenue generation, possibly benefiting from increased market demand or optimized product portfolio.

2. Chilean CCU's overall sales volume increased by 5.7% in Q3 2024, but organic sales volume decreased by 5.5%. Among them, the sales volume in the Chilean market grew by 1.8%, while the international business volume dropped significantly by 84.7% (organic decrease of 80.6%).

3. CCU's net sales in Q3 2024 decreased by 3.0% (organic decrease of 6.9%), and gross profit decreased by 9.4% (organic decrease of 13.7%), showing the company's vulnerability in facing market challenges.

Peer Comparison

1. Industry-wide analysis: The beverage industry has recovered from the pandemic, with market demand gradually warming up, and many companies reported revenue growth. It is expected that the global beverage market will continue to grow in 2024, especially for non-alcoholic drinks and health drinks. CCU's performance aligns with industry trends but faces significant challenges in international markets.

2. Peer evaluation analysis: Chilean CCU's total operating revenue growth is higher than many competitors, demonstrating its competitiveness and brand influence in the market. However, the significant decline in international markets may weaken its position in the global market and affect its future growth potential.

Summary

Chilean CCU achieved significant growth in its total operating revenue in 2024, mainly driven by strong domestic market demand and optimized product portfolio. However, the poor performance in international markets, especially the significant decline in sales volume, shows the company's challenges in global expansion. Despite the strong overall performance, future attention should be paid to the recovery of international business.

Opportunities

1. With the recovery of consumer confidence, CCU can further strengthen its marketing strategies in the domestic market to boost sales.

2. The company can consider launching more products that align with market trends to attract different consumer groups, especially in the health drinks sector.

3. In international markets, adjusting product mix and pricing strategies may help restore sales and enhance market share.

Risks

1. The significant decline in international sales may affect the company's overall performance and lead to increased financial pressure.

2. If market conditions remain unfavorable, it may affect the company's net sales and gross profit, further reducing profitability.

3. Facing rising raw material costs, if unable to effectively pass on costs, profit margins may be affected.