Compania Cervecerias Unidas, S.A.

Good day, everyone, and welcome to CCU's fourth quarter 2025 earnings conference call on the 25th of February, 2026. Please note that today's call is being recorded. At this time, I'd like to turn the conference call over to Claudio Lazeras, the Head of Investor Relations. Please go ahead, sir.

Welcome, and thank you for attending CCU's fourth quarter 2025 conference call. Today with me are Mr. Felipe Duvernet, Chief Financial Officer and Carolina Burgos, Senior Investor Relations Analyst. You have received a copy of the company's Consolidated for Quarter 2025 results. As usual, the call will start by reviewing our overall results and then we will then move to a Q&A session. Before we begin, Please take notes of the following statements. The statements made in this call that relate to CCU's future financial results are forward-looking statements, which involve known and unknown risks and uncertainties that could cause that our performance or results could materially differ. This statement, as well, should be taken in conjunction with the additional information about risk and uncertainty successful in CCU's annual report, in Form 20-F filed with the U.S. Security and Exchange Commission, and also as the annual report submitted at the CMS. It is now my pleasure to introduce Mr. Felipe Duvernay. Thank you, Claudio, and thank you all for joining the call today. During 2025, CCU posted a strong set of results in its main operating segment Chile, while it faced a particularly challenging year in Argentina and in the wine business, especially during the second half of this. Isolating the non-recurring gain from the sale of a portion of land in Chile in 2024 consolidated a deep tap, decreasing 2.9%. By the bracing segment, Chile posted a robust 7.8% EBITDA growth, which was diluted by the 29.5% contraction in international business operating segments and a 14.9% drop in the wine operating segments. In addition, net income was down 16.3%. Under the same criteria and isolating Argentina, Consolidated Evita would have grown mid-single digit in 2025. In terms of business scale, consolidated volumes reached 36.2 million hectometers, expanding 7.3% versus 2024. Organic volumes increased 0.6%, fully driven by the geo-operating segment, which expanded 1.1%. recovering growth after three consecutive years of contraction. In terms of our strategy during the year, we move forward in our strategic 2025-2027 strategic plan and its three pillars, profitability, growth and sustainability. Regarding profitability, as mentioned, our core operating percent well above inflation and list a margin of 48 basis points while we keep growing in high margin innovation and delivering efficiencies in every aspect of the business. Regarding our growth pillar, we strengthened our regional footprint by successfully integrating in Paraguay PepsiCo's beverage portfolio and snacks Furthermore, we posted volume growth in our water business in Argentina in a tough business scenario and increased our beer scale in Colombia more. Also, to meet evolving consumer trends, we posted double-digit growth in low-alcohol and ready-to-drink federal products in Chile, innovating and consolidating our leadership in this high-growing cross-category segment, which involves beer, wine, and spirits in a context of soft industries. Regarding brand equity, we recorded a solid performance in Chile, increasing brand equity levels, being key to expand overall market share. Finally, as of sustainability in our Juntos por un Mejor Vivir strategy within the planet pillar, we kept reducing industrial water consumption. Regarding the pillar of our strategy, and in the years that we celebrated, 175 years of history, we reached important milestones. We obtained a high level of employee satisfaction, got certified in Chile and Argentina as a top employer by the top employer institute, moved up in CADEM ranking of citizen brands, and got awarded as one of the companies with governance by the survey La Voz del Mercado 2025. From a marketing perspective, consolidated bonds rose 0.6% fully driven by the Chile operating sector. Our financial results were below last year, mostly explained by the challenging business scenario in Argentina, together with the high competition base in Edista in that country, and headwinds in the wine operating segment. This was partially compensated by our main operating segment, Chile, which continued in a positive path of results. Consolidated Evita contracted 17.2%, where the 6% expansion in the Chile operating segment was more than offset by the 44.5% and 45.2% Evita contraction in the international business and wine operating segment respectively. Net income contracted 25.7%. Consolidated ISTA isolating Argentina would have expanded low-sitter digits in the quarter. In terms of our segment performance, in quarter 4, 2025, the Chile operating segment top line expanded 5.5% as a result of 4.1% increase in volumes and 1.3% higher average prices. Volumes were boosted by non-alcoholic categories. Average prices were driven by revenue management efforts, offset by negative mix-up rates. EBITDA increased 6% mostly due to a 9.1% gross profit expansion, partially offset by 10.1% higher MSM-DNA expenses. Regarding those profits, the rise was driven by higher volumes, lower cost pressures related to federal prices in some raw materials, with the exception of a mean, and the appreciation of the Chilean peso against the US dollar, which is positive on U.S. partially compensated by higher costs from our TP recycling plant circular. On the other side, MS&D&A expenses funded mostly associated with higher distribution expenses as volume new and larger marketing expenses to support running. In international business operating segment, net sales recorded a 36.3% decrease mostly driven by lower average prices and a 4.6 percent volume contraction highly driven by a single digit contraction in the beer industry in Argentina the decrease in average prices in Chilean pesos was driven by Argentina impacted by a negative translation effect pricing below inflation through the year and negative mix effect The laser was partially compensated by efficiency. In all, Avista dropped 44.5%. The wine operating segment posted a top line contraction of 16.8%, driven by 9.7% drop in volumes, together with 7.9% decrease in average price. Lower scale was driven by both exports and domestic markets. The weaker average prices were mostly explained by stronger Chilean pesos and its negative impact on export revenues and negative mixed effects in the portfolio partially compensated with revenue management initiatives. Evista contracted 45.2% also impacted by higher cost of wine. Regarding our main joint venture and association business in Colombia, volumes reached 2.4 million ecoliters in 2025, increasing 6.1%. We continue to build a robust brand portfolio and sales execution in Colombia, which is the path to long-term volume and financial growth. Now, I will be glad to answer any questions you may have.

Thank you very much. We'll now move to the Q&A part of the call. If you'd like to ask a question, please press star 2 on your phone. That is star 2 if you're connected from the phone. If you're connected from the web, you can type your question in the box provided or also request to ask a voice question. We'll give it a few moments for the questions to come in. Okay, so our first question is from Fernando Olvera from Bank of America. Your line is now open. Please go ahead.