Compania Cervecerias Unidas (NYSE:CCU) reported higher sales, earnings and volumes in the third quarter of 2026, with growth in Chile and its international business offsetting a decline in wine profitability.
Net sales rose 15.5% from a year earlier as consolidated volumes increased 4.4%, Chief Executive Officer Eduardo Ffrench-Davis said on the company’s Nov. 4 earnings call. Consolidated earnings before interest, taxes, depreciation and amortization, or EBITDA, grew 13.4%, while net income rose 5%.
EBITDA margin narrowed by 20 basis points. Excluding restructuring expenses in both the 2026 and 2025 quarters, EBITDA would have grown 21.3% and margin would have expanded 59 basis points, Ffrench-Davis said.
Net cash flow from operating activities increased 60.3% for the first nine months of the year, supported by EBITDA growth and working capital management, the CEO said. He added that capital spending was focused on transformation projects intended to improve efficiency over the medium term.
Chile gains share as ready-to-drink products grow
In Chile, net sales increased 6%, reflecting 5% higher volumes and a 1% increase in average prices, Chief Financial Officer Felipe Dubernet said. Non-alcoholic volumes grew at a high-single-digit rate, while alcoholic categories, including beer and spirits, posted a low-single-digit increase.
Chile segment EBITDA rose 16.3%, and its EBITDA margin expanded 141 basis points. Dubernet said expense efficiencies more than offset higher oil prices and restructuring costs.
Ffrench-Davis attributed the volume gains largely to market-share increases. He said alcoholic pricing was in line with inflation, while non-alcoholic pricing was slightly below inflation because of a shift toward water, which carries a lower price than other categories. Excluding that mix effect, non-alcoholic pricing was above inflation, he said.
Flavored low-alcohol ready-to-drink products posted double-digit volume growth and represented 6.6% of total alcohol volume in the quarter, Dubernet said. Brands cited by management included Stones, Mistral Ice and Kantal.
Asked whether alcohol consumption had reached a bottom, Ffrench-Davis said he did not know, but that the company’s innovations were helping address the decline. He pointed to ready-to-drink products and seasonal beers as ways to reach more consumption occasions.
International growth contrasts with wine weakness
International segment net sales rose 52.8%, with average prices in Chilean pesos up 46.4% and volumes up 4.4%. Dubernet attributed the pricing increase to revenue-management actions, particularly in Argentina, and a positive effect from hyperinflation accounting.
Argentina’s alcoholic volumes grew at a low-teens rate against a weak year-earlier comparison, while non-alcoholic volumes in the country fell at a mid-single-digit rate. International EBITDA rose 74.1%, and margin increased 59 basis points, despite raw-material cost pressures, especially for aluminum, Dubernet said.
Wine segment sales increased 3.4%, supported by a 4.9% rise in volumes. Argentine domestic volumes more than doubled, helped by a fruit-flavored extension of Colón Selecto Dulce, while Chilean domestic and export volumes declined 4.5% and 1.9%, respectively.
Wine EBITDA fell 35.5%, with restructuring expenses contributing to higher costs. Excluding those expenses, EBITDA declined 11%, Dubernet said. He added that a stronger Chilean peso against the U.S. dollar and product mix weighed on average prices.
In Colombia, the company’s main joint venture and associated business posted low-single-digit volume growth despite temporary distribution disruptions in regions affected by a recent earthquake, Dubernet said.
Restructuring shifts toward operations
Ffrench-Davis said the first stage of restructuring, covering businesses in Argentina and Chile, had been completed. The work included combining sales forces and integrating processes, particularly in wine and spirits. He said the company expected benefits from those changes without further restructuring costs for that stage.
A second stage will review logistics and industrial operations across geographies, and could involve additional restructuring. Ffrench-Davis said it would include technology, process and organizational changes, but would not necessarily require more capital spending.
Dubernet said CCU has sufficient alcoholic beverage capacity and can produce ready-to-drink products at existing breweries. The company expanded non-alcoholic capacity this year, particularly to support flavored water, but expects future capital spending to focus more on transformation and efficiency than capacity.
Management also outlined priorities for its 2027–2030 plan, including revitalizing alcoholic volumes, expanding products aligned with wellness trends and using analytics to improve distribution and pricing. Ffrench-Davis said the company does not provide numerical forward-looking guidance.
About Compania Cervecerias Unidas (NYSE:CCU)
Compañía Cervecerías Unidas SA (CCU) is a Chile-based beverage company with operations spanning alcoholic and non-alcoholic drinks. The company traces its roots to Chile’s brewing industry and was established in 1902. Its principal activities include the production, marketing and distribution of beer, soft drinks, bottled water, juices and other beverages.
CCU’s beer portfolio includes Chilean brands such as Cristal, Escudo and Royal Guard, along with internationally recognized brands produced or distributed under license.
