6-K 1 ccupr2q09_6k.htm CONSOLIDATED SECOND QUARTER 2009 RESULTS Provided by MZ Technologies
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 6-K

     Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

COMPAÑIA CERVECERIAS UNIDAS S.A. 
(Exact name of Registrant as specified in its charter)
UNITED BREWERIES COMPANY, INC. 
(Translation of Registrant's name into English)

Republic of Chile
(Jurisdiction of incorporation or organization)
Vitacura 2670, Twenty-Third Floor, Santiago, Chile 
(Address of principal executive offices)
 
     

Securities registered or to be registered pursuant to section 12(b) of the Act.

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F ___

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ___ No X

Attached is a press release of the Company dated August 11, 2009


FOR IMMEDIATE RELEASE

For more information contact:
Rosita Covarrubias / Germán del Río
Investor Relations Department
Compañía Cervecerías Unidas S.A.
www.ccu-sa.com
(56-2) 427-3581 or 427-3349

CCU S.A. REPORTS CONSOLIDATED SECOND QUARTER 2009
AND YEAR TO DATE RESULTS (1)

SECOND QUARTER

Revenues Up 3.5%, Operating Income decreases 5.0%, EBITDA(2) Up 1.4%, Net 
Income Increases 128.7% to US$0.88 per ADR

YEAR TO DATE

Revenues Up 7.7%, Operating Income decreases 3.5%, EBITDA(2) Up 0.7%, Net 
Income Increases 35.7% to US$1.91 per ADR

(Santiago, Chile, August 5, 2009) -- CCU announced today its consolidated financial results, stated in Chilean GAAP for the second quarter and year to date, ended June 30, 2009. All US dollar figures are based on the exchange rate effective June 30, 2009 (US$1.00 = Ch$531.76) .

COMMENTS FROM THE CEO 

We are very pleased with CCU’s performance considering the adverse domestic as well as international economic scenario in which we have developed our activities during the 2009 second quarter. When comparing the figures with those of the same period in 2008, one has to consider the following effects: (a) The GNP had a negative variation of 2.1% during the first quarter, and the economic activity dropped 4.4% in the second quarter of 2009. Along these lines, unemployment statistics published recently show a 10.7% unemployment rate for the period April/June, which is 2.3 points higher than the rate observed a year ago. (b)The daily average exchange rate for the quarter was Ch$567 per US$ as compared to Ch$471 per US$ in the second quarter of 2008. A depreciation of the Chilean peso vis a vis the US dollar is detrimental for CCU because raw materials indexed to the dollar become more expensive in Chilean pesos regardless of the commodities prices. In such scenario, with unfavorable economic indicators, we were able to increase sales by volume in almost all segments in which we participate, except for spirits and beer in Argentina. The total volume sold increased 4.3% and revenues grew 3.5% above the 2008 second quarter figures, after the latter was adjusted by a 3% inflation factor for the twelve months. Out of the total volume growth, 3.1 points correspond to organic growth.

______________________________
(1) Statements made in this press release that relate to CCU’s future performance or financial results are forward-looking statements, which involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ. We undertake no obligation to update any of these statements. Persons reading this press release are cautioned not to place undue reliance on these forward-looking statements. These statements should be taken in conjunction with the additional information about risk and uncertainties set forth in CCU’s annual report on Form 20-F filled with the US Securities and Exchange Commission.
(2) EBITDA represents operating income plus the sum of depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles. For more detail, please see full note before the exhibits. Please see reconciliation of EBITDA to operating income on exhibits 1 to 4.


Q2’09 Results 

In the described economic scenario, we were able to increase EBITDA by 1.4% in real terms with respect to the second quarter 2008 figure. EBITDA would have increased by 4.4% if we had not had the negative effect due to the Ch$ current year’s appreciation in the conversion of our Argentine affiliate’s results, which is fully disclosed in the Beer Argentina Chapter of this Press Release. Although this conversion effect is always present, it is worthwhile to be mentioned in this opportunity because of the significance of the fx variation affecting a low season quarter. The EBITDA increase is a particularly meaningful accomplishment since CCU has not yet enjoyed the full benefit of the raw material cost reduction due to stock depletion, and therefore, costs have been significantly higher in comparison to the ones in the second quarter 2008.

Net income in real terms increased 128.7% due mostly to the profit in the sale of 29.9% of Aguas CCU Nestlé S.A. equity to Nestlé Waters Chile S.A., upon the exercise of an option contract subscribed with ECUSA in 2007. The profit before taxes that resulted in the transaction was Ch$24,448 million and was recorded as non operating income in the month of June 2009.

2

CONSOLIDATED INCOME STATEMENT HIGHLIGHTS (Exhibits 1 & 2)

REVENUES     
 
       Q2'09    Total revenues increased 3.5%, to Ch$158,576 million (US$298.2 million), as a result of 4.3% higher consolidated volumes (of which 3.1 percentage points are due to organic growth), partially offset by 0.9% lower average prices. The increase in consolidated volumes is explained by increases in the non- alcoholic segment (6.0%), in beer Chile (3.8%), and in wines (18.2%), partially offset by lower volumes in beer Argentina (-1.0%) and spirits (-7.5%). Despite the higher average prices of beer Chile (4.6%), wine (19.8%), spirits (2.4%) and non-alcoholic beverages (0.3%), the consolidated average price was lower due to the fx effect produced by beer Argentina, which decreased its prices in Chilean pesos terms by 22.1%. 
 
       YTD    Accumulated revenues increased 7.7% amounting to Ch$373,397 million (US$702.2 million). 


* Percentage calculations exclude “Others/Eliminations”

3

Revenues by segment

    Q2 (US$ million)* 
     
    2008    2009    % Chg. 
                     
Beer - Chile    93.5    32.8%    100.6    33.6%    7.6% 
Beer - Argentina    53.6    18.8%    40.4    13.5%    -24.6% 
Non-alcoholics    76.8    26.9%    80.9    27.0%    5.3% 
Wine    41.8    14.7%    59.0    19.7%    41.2% 
Spririts    19.4    6.8%    18.4    6.1%    -5.3% 
Others/Eliminations    3.1    -    (1.1)   -    NM 
                     
TOTAL    288.2    100.0%    298.2    100.0%    3.5% 
     
 
    Year to Date (US$ million)* 
     
    2008    2009    % Chg. 
                     
Beer - Chile    251.9    39.0%    257.9    36.6%    2.4% 
Beer - Argentina    97.6    15.1%    119.9    17.0%    22.8% 
Non-alcoholics    187.7    29.1%    189.1    26.8%    0.7% 
Wine    73.5    11.4%    105.0    14.9%    42.8% 
Spririts    35.3    5.5%    33.5    4.8%    -5.0% 
Others/Eliminations    6.1    -    (3.3)   -    NM 
                     
TOTAL    652.2    100.0%    702.2    100.0%    7.7% 
     
* Percentage calculations exclude “Others/Eliminations”

GROSS PROFIT 
 
       Q2'09    Decreased 1.3% to Ch$76,456 million (US$143.8 million), as a result of 8.3% higher cost of goods sold (COGS), which amounted to Ch$82,121 million (US$154.4 million), partially offset by 3.5% higher revenues. The increase in cost of goods sold is explained by higher unitary costs of raw materials, in all business units, except beer Argentina, due to the fx effects. As a percentage of sales, the cost of goods sold increased from 49.5% in Q2’08 to 51.8% en Q2’09. Accordingly, the gross profit, as a percentage of sales, decreased from 50.5% in Q2'08 to 48.2% this quarter.
 
       YTD    Increased 2.5%, to Ch$190,504 million (US$358.3 million) and, as a percentage of revenues, the consolidated gross profit decreased from 53.6% to 51.0%, when compared to the same period in 2008.
 
 
OPERATING RESULT 
 
       Q2'09    Decreased 5.0% to Ch$14,304 million (US$26.9 million), due to the lower gross profit, partially offset by lower selling, general and administrative (SG&A) expenses. SG&A expenses decreased in Q2'09 by 0.4%, to Ch$62,151 million (US$116.9 million). SG&A expenses as a percentage of sales decreased 1.5 percentage points, from 40.7% in Q2'08 to 39.2% in Q2'09. The consolidated operating margin decreased from 9.8% in Q2'08 to 9.0% in Q2'09. 

4

YTD    Decreased 3.5% amounting Ch$56,172 million (US$105.6 million) and the operating margin was 15.0%, decreasing 1.8 percentage points when compared to the same period in 2008.


* Percentage calculations exclude "Others/Eliminations"

Operating Income and Operating Margin by Segment

    Q2 
     
    Operating Income (US$ million)   Operating Margin 
    2008    2009    % Chg    2008    2009 
                     
Beer - Chile    17.9    16.9    -5.1%    19.1%    16.9% 
Beer - Argentina    0.2    0.6    225.0%    0.3%    1.4% 
Non-alcoholics    7.2    6.3    -12.2%    9.3%    7.8% 
Wine    4.4    3.9    -10.4%    10.4%    6.6% 
Spirits    2.9    3.1    6.1%    15.0%    16.8% 
Others/Eliminations    -4.2    -3.9    -6.3%    NM    NM 
                     
TOTAL    28.3    26.9    -5.0%    9.8%    9.0% 
     
 
    Year to Date 
     
    Operating Income (US$ million)   Operating Margin 
    2008    2009    %Chg    2008    2009 
                     
Beer - Chile    71.9    60.3    -16.2%    28.5%    23.4% 
Beer - Argentina    5.8    14.6    150.7%    6.0%    12.2% 
Non-alcoholics    24.3    20.5    -15.8%    12.9%    10.8% 
Wine    3.8    4.6    21.0%    5.2%    4.4% 
Spirits    4.3    4.9    14.5%    12.2%    14.7% 
Others/Eliminations    -0.7    0.7    NM    NM    NM 
                     
TOTAL    109.5    105.6    -3.5%    16.8%    15.0% 
     

5

EBITDA2     
 
       Q2'09    Increased 1.4%, to Ch$28,724 million (US$54.0 million) compared to Q2’08, while the consolidated EBITDA margin was 0.4 percentage points lower than in Q2'08, reaching 18.1%. 
 
       YTD    Increased 0.7% to Ch$84,743 million (US$159.4 million) and the EBITDA margin reached 22.7%, decreasing 1.6 percentage points when compared to the same period in 2008. 

* Percentage calculations exclude “Others/Eliminations”

EBITDA by segment

    Q2 
     
    EBITDA (US$ million)   EBITDA margin 
    2008    2009    % Chg    2008    2009 
                     
Beer - Chile    26.9    26.6    -1.1%    28.8%    26.5% 
Beer - Argentina    4.5    4.1    -9.1%    8.3%    10.0% 
Non-alcoholics    12.3    11.8    -4.0%    16.0%    14.6% 
Wine    7.1    8.0    13.8%    16.9%    13.6% 
Spirits    3.8    4.1    8.3%    19.7%    22.5% 
Others/Eliminations    -1.3    -0.6    -51.2%    NM    NM 
                     
TOTAL    53.3    54.0    1.4%    18.5%    18.1% 
                 
 
    Year to Date 
     
    EBITDA (US$ million)   EBITDA margin 
    2008    2009    % Chg    2008    2009 
                     
Beer - Chile    91.1    79.7    -12.5%    36.2%    30.9% 
Beer - Argentina    12.7    22.2    75.0%    13.0%    18.5% 
Non-alcoholics    34.1    30.8    -9.7%    18.1%    16.3% 
Wine    9.2    12.8    39.5%    12.5%    12.2% 
Spirits    6.2    7.0    12.6%    17.6%    20.9% 
Others/Eliminations    5.0    6.9    38.9%    NM    NM 
                     
TOTAL    158.2    159.4    0.7%    24.3%    22.7% 
                 

_____________________________
2 Please see the note before the exhibits.

6

NON-OPERATING RESULT 
 
       Q2'09    Improved Ch$22,053 million (US$41.4 million) when compared to the same quarter last year, from a loss of Ch$2,787 million (US$5.2 million) to a profit of Ch$19,266 million (US$36.2 million). The improvement in the non-operating result is explained by: 
 
    •  Net non-operating income/expenses, improved in Ch$25,223 million mainly due to a one time profit of Ch$24,448 million (US$46.0) generated in the sale of Aguas CCU Nestlé S.A.’s 29.9% equity, to Nestle Waters Chile S.A
 
    The referred profit was partially off set by the following effects: 
 
    •  Goodwill amortization: increased Ch$115 million, from a loss of Ch$680 million to a loss of Ch$975 million, due mostly to the merger of VSP with Viña Tarapacá.
 
    •  Net Financial Expenses: increased Ch$628 million, from a loss of Ch$3,071 million to a loss of Ch$3,699 million due to a higher net debt related mostly to the merger of VSP with Viña Tarapacá in the last quarter 2008. 
 
    •  Price level restatement/currency exchange result: varied Ch$2,328 million from a profit of Ch$1,977 million to a loss of Ch$351 million. This negative result is fully offset at the tax level, as a consequence of our hedge policy to avoid bottom line after tax effects driven by fx fluctuations.
 
 
YTD    Improved from a loss of Ch$6,269 million (US$11.8 million) to a profit of Ch$13,729 million (US$25.8 million).
 
 
NET INCOME 
 
       Q2'09    Improved 128.7% from Ch$13,070 million (US$24.6 million) to Ch$29,896 million (US$56.2 million), as mentioned before, mainly as a consequence of the better non-operating result, partially offset by a lower operating income and higher taxes, due to the sale of the 29.9% of Aguas CCU Nestle S.A
 
       YTD    Increased 35.7% from Ch$47,562 million (US$89.4 million) to Ch$64,551 million (US$121.4 million). 

7

BUSINESS UNITS HIGHLIGHTS (Exhibits 3 and 4)

Business segments are currently reflected in the same way that each Strategic Business Unit (SBU) is managed. Revenues for each business segment have been categorized according to those derived from core beverage products and those derived from the sale of other non-core products. Corporate shared services and distribution and logistics expenses have been allocated to each SBU based on service level agreements. The non-allocated corporate overhead expenses and the results of the logistics subsidiary (which until last year were distributed in each business segment), have been included now in “Others/Eliminations”. For comparison purposes, last year figures were reclassified according to this criterion. As of 2009, confectionery sales are directly performed by Foods Compañía de Alimentos CCU S.A., which are not consolidated in CCU. Until December 2008, confectionery sales were done by the non-alcoholic beverage subsidiary, therefore, are consolidated and included in last year’s “Others/Eliminations”.

(Note: the comments below regarding volumes and prices refer to Q2'09.)

BEER CHILE 
 

Revenues   increased 7.6% to Ch$53,479 million (US$100.6 million), as a result of 3.8% higher sales volumes and 4.6% higher real average prices. 
 
Operating Income   decreased 5.1% to Ch$9,013 million (US$16.9 million), mainly as a result of higher COGS and SG&A expenses, partially compensated by higher revenues. The cost of goods sold increased 17.5%, to Ch$25,569 million (US$48.1 million), mainly due to higher direct costs. As a percentage of sales, COGS increased from 43.8% in Q2'08 to 47.8% in Q2'09. The SG&A expenses increased 2.4%, to Ch$18,897 million (US$35.5 million) mainly due to higher distribution costs, partially offset by other expense savings. As a percentage of sales, SG&A expenses decrease from a 37.1% en Q2'08 to 35.3% this quarter. As a consequence, the operating margin decreased from 19.1% in Q2'08 to 16.9% en Q2'09. 
 
EBITDA   decreased 1.1% to Ch$14,168 million (US$26.6 million), while the EBITDA margin was 26.5% or 2.3 percentage points lower than in Q2'08. 
 
Comments   The higher real average price when compared to Q2´08 is a consequence of price increases done in August/October 2008 and of a higher participation of the Premium products in the sales mix, partially offset by higher discounts. The higher cost is explained by the utilization of more expensive raw materials than the ones used in Q2´08. Lower price of malt will start to be noticed during the second semester, once older and more expensive inventories had been consumed and replaced by less expensive raw materials in dollar terms. The SG&A expenses increased mainly due to an increase in the distribution costs. 

BEER ARGENTINA 
 
Special remark:   The accounting rules that govern the financial statements of our affiliate in Argentina mandate they have to be translated from Argentine pesos into US dollars on a monthly basis. Subsequently, the accumulated US$ figures are  converted into Chilean pesos at the US$ to Ch$ exchange rate of the end of the quarter. The figures, in Chilean pesos, corresponding to the current quarter are obtained subtracting the amounts in Chilean pesos corresponding  to the previous quarter from the Chilean year to date pesos amount obtained from the described calculation. Therefore, if the Chilean peso, compared to the  previous quarter, appreciates with respect to the US dollar, the P&L Chilean  peso figures for the present quarter are reduced by the negative variation of the Ch$-US$ exchange rate applied to the accumulated US$ balances of the previous quarter. Therefore, any variation of the CH$-US$ exchange rate  between March 31st and June 30th applied on the 1Q balances, is shown in the  2Q on a line by line basis.  This accounting rule had a negative impact in CCU´s operational result of  Ch$658 million and of Ch$852 million in EBITDA. 

 


 

8


Revenues   Despite the higher revenues in US$ terms, which increased 11.1%, and the higher average prices of 12.8%, when measured in Chilean pesos, revenues decreased 24.6%, from Ch$28,521 million (US$53.6 million) in Q2’08 to Ch$21,505 million (US$40.4 million) this quarter, due to 1.0% lower sales  volumes and 22.1% lower average prices. The results in Chilean pesos for the quarter had an fx effect, as explained in the special remark above. 
     
Operating Income   measured in Chilean pesos increased Ch$212 million (US$0.4 million) from Ch$94 million (US$0.2 million) in Q2'08 to Ch$306 million (US$0.6 million) in Q2'09, as a consequence of lower revenues but also lower  COGS and SG&A expenses, both in Chilean pesos terms. The cost of goods sold decreased 29.6%, to Ch$10,509 million (US$19.8 million) this quarter  mainly due to the exchange rate effects mentioned before. As a percentage of sales, COGS decreased from 52.3% in Q2’08 to 48.9% in Q2’09. SG&A expenses decreased 20.9% from Ch$13,509 million (US$25.4 million) to  Ch$10,690 million (US$20.1 million) this quarter, mainly due to the translation  effects. As a percentage of sales, SG&A expenses increased from 47.4% in  Q2’08 to 49.7% this quarter. The operating margin improved from a 0.3% in  Q2'08 to 1.4% in Q2'09. Measured in dollar terms, COGS increased 3.62%, mainly due to lower direct costs, offset by an increase in production costs.  SG&A expenses in dollar terms increased 7.5% mainly due to higher  distribution and marketing expenses. 
     
EBITDA   Decreased 9.1% or Ch$286 million (US$0.5 million) from Ch$2,378 million  (US$4.5 million) in Q2’08 to Ch$2,161 million (US$4.1 million) this quarter, while the EBITDA margin increased from 8.3% in Q2'08 to 10.0% en Q2'09. In US$, EBITDA increased 91.4% and EBITDA margin increased to 12.7% from 7.4% in the same quarter in 2008. 

9


Comments   The results of the second quarter are affected by the appreciation of the  Chilean peso from Ch$583.26 per US$ on March 31st to Ch$531.76 per US$  on June 30 which, as commented before, had an important effect when  converting the results of the subsidiary to Chilean pesos. Even though, when  analyzing the results in dollar terms, we can observe a consistent improvement in the performance of the subsidiary in Argentina. 

NON-ALCOHOLIC BEVERAGES 
 

Revenues   increased 5.3% to Ch$43,002 million (US$80.9 million), due to higher volumes of 6.0% and to an increase of 0.3% in the average price. 
     
Operating Income   decreased 12.2% to Ch$3,346 million (US$6.3 million) as a  consequence of higher COGS and SG&A partially compensated by higher revenues. Cost of goods sold increased 11.3% to Ch$21,898 million (US$41.2 million) due to higher per unit direct costs, mostly explained by a higher cost in dollar of sugar and other raw materials as well as to the depreciation of the Chilean peso against the US dollar. COGS, as a  percentage of revenues, increased from 48.2% in Q2’08 to 50.9% in Q2’09.  SG&A increased 8.1% to Ch$17,759 million (US$33.4 million), mostly due to higher distribution expenses and higher marketing expenses to support the  newly introduced products. As a percentage of revenues, SG&A increased  from 40.3% in Q2’08 to 41.3% en Q2'09. The operating margin decreased from  9.3% in Q2'08 to 7.8% in Q2’09. 
     
EBITDA   decreased 4.0% to Ch$6,261 million (US$11.8 million) and the EBITDA margin was 14.6%, 1.4 points lower than in Q2'08. 
     
Comment   Volumes had a very positive performance in all categories during the quarter: soft drinks increased 4.6%, water 9.8%, and nectars 7.9%. In particular, flavored water and purified water strengthened their position in the market.The sale’s profit of 29.9% of Aguas CCU Nestlé S.A. equity to Nestlé Waters Chile S.A. upon the exercise of an option contract the latter subscribed with ECUSA in December 2007 was Ch$24,448 million and was recorded as a non- operational income in the month of June 2009. As a result of this transaction,since July 2009, the participation of ECUSA in Aguas CCU Nestle S.A. is 50.1%. 

10


WINE 
 

Revenues   increased 41.2% to Ch$31,396 million (US$59.0 million) due to an increase in sales by volume of 18.2% and of 19.8% in the average price in Ch$ excluding bulk wine. 
     
Operating Income   decreased 10.4% from Ch$2,323 million (US$4.4 million) to  Ch$2,081 million (US$3.9 million) en Q2'09, due mostly to higher COGS and  SG&A. Cost of goods sold increased 54.9% from Ch$12,871 million  (US$24.2 million) in Q2'08 to Ch$19,943 million (US$37.5 million) in Q2’09 due to a higher volume and to higher direct costs per unit because of vintage costs and the incidence of more premium products. As a percentage of  revenues, they increased from 57.9% in Q2'08 to 63.5% in 2Q’09. SG&A increased 33.2% to Ch$9,372 million (US$17.6 million) pursuant the merger of VSP with Viña Tarapacá in December 2008. The operating margin decreased from 10.4% en Q2'08 to 6.6% en Q2'09. 
     
EBITDA   increased 13.8% to Ch$4,267 million (US$8.0 million) in Q2’09 and the EBITDA margin decreased from 16.9% in Q2’08 to 13.6% en Q2’09.
     
Comments   The organic volume growth was 1.1% and the contribution of the former VT  brands allowed a total increase in volumes of 18.2%. Volumes increased in all categories: domestic wine grew in 1.9%, bottled export wine in 38.8% and wine in Argentina increased volumes in 30.0%. Domestic average prices increased 23.4% due mostly to more Premium wines in our mix. The export wine average price in Ch$ increased 9.7% mainly due to a higher US$ to Ch$ average exchange rate, in comparison with the same period in 2008 (Ch$ 566.53 per US$ vs Ch$ 471.08 per US$ in 2008). The average price of exports in foreign currency fell 7.2%, driven by a reduction in price at the industry level, triggered  by the economic circumstances of the export markets. 

SPIRITS 
 

Revenues   decreased 5.3% to Ch$9,783 million (US$18.4 million) due to 7.5% lower volume partially offset by 2.4% higher average prices. 
     
Operating Income   increased 6.1% from Ch$1,547 million (US$2.9 million) to Ch$1,641 million (US$3.1 million) in Q2'09, mainly due to lower SG&A expenses. Cost of goods sold remain constant in Ch$4,997 million (US$9.4 million). COGS as a percentage of revenues increased from 48.4% in Q2’08 to 51.1% in Q2'09 due mostly to higher cost of raw materials, due to the cost of the vintage in use and more premium products in the sales mix. SG&A decreased 16.9% to Ch$3,145 million (US$5.9 million) due mostly to lower marketing expenses. As a percentage of revenues, SG&A decreased from 36.6% in Q2’08 to 32.1% in Q2’09. The operational margin increased from 15.0% in Q2'08 to 16.8% in Q2'09. 

11


EBITDA   increased 8.3% from Ch$2,031 million (US$3.8 million) to Ch$2,199 million (US$4.1 million) and the EBITDA margin improved from 19.7% in Q2’08 to 22.5% in Q2’09. 
     
Comments   The profitability of this segment continues to improve as a result of the focus  of Compañía Pisquera de Chile (CPCh) on premium and RTD (ready to drink)products. As a result of its innovative approach, CPCh introduced this week MISTRAL ICE PREMIUM BLEND, a product which is a new category for CCU, with  fresh citric notes, slightly sparkling and 7°GL alcohol content. This product intends to strengthen the pisco sophistication image. 

(Five exhibits to follow)

_____________________________
Note: EBITDA represents operating income plus the sum of depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles. The amounts in the EBITDA calculation, however, are derived from amounts included in the historical statements of income data. EBITDA is presented as supplemental information because management believes that EBITDA is useful in assessing the Company’s operations. EBITDA is useful in evaluating the operating performance compared to that of other companies, as the calculation of EBITDA eliminates the effects of financing, income taxes and the accounting of capital spending, which items may vary for reasons unrelated to overall operating performance. When analyzing the operating performance, however, investors should use EBITDA in addition to, not as an alternative for, operating income and net income, as those items are defined by GAAP. Investors should also note that CCU’s presentation of EBITDA may not be comparable to similarly titled measures used by other companies. Please see reconciliation of EBITDA to operating income on exhibits 1 and 2.

12

EXHIBIT 1: INCOME STATEMENT (SECOND QUARTER 2009)

    Ch$ millions    US$ millions (1)   % 
    Q2'09    Q2'08    Q2'09    Q2'08    Change 
                     
                     
Net sales    158,576    153,260    298.2    288.2    3.5% 
                     
Cost of goods sold    (82,121)   (75,832)   (154.4)   (142.6)   8.3% 
       % of sales    51.8%    49.5%    51.8%    49.5%     
                     
Gross profit    76,456    77,428    143.8    145.6    -1.3% 
       % of sales    48.2%    50.5%    48.2%    50.5%     
                     
SG&A    (62,151)   (62,379)   (116.9)   (117.3)   -0.4% 
       % of sales    39.2%    40.7%    39.2%    40.7%     
                     
                     
Operating income    14,304    15,049    26.9    28.3    -5.0% 
       % of sales    9.0%    9.8%    9.0%    9.8%     
                     
                     
Non-operating result                     
       Financial income    413    (101)   0.8    (0.2)   NM 
       Equity in NI of rel. companies    121    219    0.2    0.4    -44.9% 
       Other non-operating income    24,877    446    46.8    0.8    5482.9% 
       Amortization of goodwill    (975)   (860)   (1.8)   (1.6)   13.4% 
       Interest expenses    (4,112)   (2,970)   (7.7)   (5.6)   38.5% 
       Other non-operating expenses    (706)   (1,498)   (1.3)   (2.8)   -52.9% 
       Price level restatement    1,019    (818)   1.9    (1.5)   NM 
       Currency exchange result    (1,370)   2,795    (2.6)   5.3    NM 
                     
           Total    19,266    (2,787)   36.2    (5.2)   NM 
                     
Income before taxes    33,570    12,262    63.1    23.1    173.8% 
       Income taxes    (3,308)   2,108    (6.2)   4.0    NM 
       Tax rate    9.9%    -17.2%    9.9%    -17.2%     
 
Minority interest    (438)   (1,315)   (0.8)   (2.5)   -66.7% 
 
Amort. of negative goodwill    72    15    0.1    0.0    380.7% 
 
Net income    29,896    13,070    56.2    24.6    128.7% 
       % of sales    18.9%    8.5%    18.9%    8.5%     
 
                     
Earnings per share    93.86    41.03    0.18    0.08    128.7% 
Earnings per ADR    469.32    205.17    0.88    0.39     
                     
Weighted avg. shares (millions)   318.5    318.5    318.5    318.5     
 
Depreciation    14,115    12,991    26.5    24.4    8.7% 
Amortization    305    279    0.6    0.5    9.2% 
EBITDA    28,724    28,319    54.0    53.3    1.4% 
       % of sales    18.1%    18.5%    18.1%    18.5%     
 
Capital expenditures    13,512    21,026    25.4    39.5    -35.7% 
_____________________________
(1) Exchange rate: US$1.00 = Ch$531.76

EXHIBIT 2: INCOME STATEMENT (SIX MONTHS ENDED JUNE 30, 2009)

    Ch$ millions    US$ millions (1)   % 
    30-June-09    30-June-08    30-June-09    30-June-08    Change 
                     
 
Net sales    373,397    346,828    702.2    652.2    7.7% 
 
Cost of goods sold    (182,893)   (161,055)   (343.9)   (302.9)   13.6% 
       % of sales    49.0%    46.4%    49.0%    46.4%     
 
Gross profit    190,504    185,772    358.3    349.4    2.5% 
       % of sales    51.0%    53.6%    51.0%    53.6%     
 
SG&A    (134,332)   (127,555)   (252.6)   (239.9)   5.3% 
       % of sales    36.0%    36.8%    36.0%    36.8%     
 
                     
Operating income    56,172    58,217    105.6    109.5    -3.5% 
       % of sales    15.0%    16.8%    15.0%    16.8%     
                     
 
Non-operating result                     
       Financial income    1,794    887    3.4    1.7    102.3% 
       Equity in NI of rel. companies    200    19    0.4    0.0    943.7% 
       Other non-operating income    25,132    1,280    47.3    2.4    1862.8% 
       Amortization of goodwill    (1,947)   (1,554)   (3.7)   (2.9)   25.2% 
       Interest expense    (7,889)   (5,410)   (14.8)   (10.2)   45.8% 
       Other non-operating expenses    (2,612)   (2,122)   (4.9)   (4.0)   23.1% 
       Price level restatement    2,151    (696)   4.0    (1.3)   NM 
       Currency exchange result    (3,100)   1,326    (5.8)   2.5    NM 
                     
           Total    13,729    (6,269)   25.8    (11.8)   NM 
 
Income before taxes    69,901    51,948    131.5    97.7    34.6% 
       Income taxes    (4,248)   (2,473)   (8.0)   (4.7)   71.8% 
       Tax rate    6.1%    4.8%    6.1%    4.8%     
 
Minority interest    (1,282)   (1,939)   (2.4)   (3.6)   -33.9% 
 
Amort. of negative goodwill    180    27    0.3    0.1    564.9% 
 
Net income    64,551    47,562    121.4    89.4    35.7% 
       % of sales    17.3%    13.7%    17.3%    13.7%     
 
                     
Earnings per share    202.67    149.33    0.38    0.28    35.7% 
Earnings per ADR    1,013.35    746.66    1.91    1.40     
                     
 
Weighted avg. shares (millions)   318.5    318.5    318.5    318.5     
 
Depreciation    27,959    25,482    52.6    47.9    9.7% 
Amortization    612    415    1.2    0.8    47.6% 
EBITDA    84,743    84,114    159.4    158.2    0.7% 
       % of sales    22.7%    24.3%    22.7%    24.3%     
 
Capital expenditures    25,946    37,620    48.8    70.7    -31.0% 
_____________________________
(1) Exchange rate: US$1.00 = Ch$531.76 

Exhibit 3: Segment Information - Second Quarter 2009

    Beer - Chile       Beer - Argentina    Non-Alcoholics**    Wine    Spirits    Others/Eliminations 
    2009    2008    2009    2008    2009    2008    2009    2008    2009    2008    2009    2008 
                           
OPERATING RESULTS                                                 
(all figures in Ch$ millions)                                                
Revenues                                                 
Core products    52,150    48,012    21,354    27,663    41,867    39,380    29,009    20,874    9,609    10,148    0    3,157 
Other products    1,329    1,706    151    858    1,135    1,442    2,387    1,355    174    178    (588)   (1,514)
                           
Total    53,479    49,718    21,505    28,521    43,002    40,822    31,396    22,229    9,783    10,326    (588)   1,644 
   % change    7.6%        -24.6%        5.3%        41.2%        -5.3%        NM     
 
Cost of sales    (25,569)   (21,765)   (10,509)   (14,917)   (21,898)   (19,669)   (19,943)   (12,871)   (4,997)   (4,997)   794    (1,613)
   % of sales    47.8%    43.8%    48.9%    52.3%    50.9%    48.2%    63.5%    57.9%    51.1%    48.4%    NM    NM 
 
SG&A    (18,897)   (18,454)   (10,690)   (13,509)   (17,759)   (16,434)   (9,372)   (7,034)   (3,145)   (3,783)   (2,288)   (3,164)
   % of sales    35.3%    37.1%    49.7%    47.4%    41.3%    40.3%    29.8%    31.6%    32.1%    36.6%    NM    NM 
 
Operating profit    9,013    9,500    306    94    3,346    3,809    2,081    2,323    1,641    1,547    (2,082)   (2,223)
   % change    -5.1%        225.0%        -12.2%        -10.4%        6.1%        -6.3%     
   % of sales    16.9%    19.1%    1.4%    0.3%    7.8%    9.3%    6.6%    10.4%    16.8%    15.0%    NM    NM 
 
Depreciation    5,150    4,815    1,843    2,129    2,916    2,712    1,928    1,322    521    471    1,757    1,542 
Amortization    5    5    12    156    0    0    258    106    37    12    (7)   (0)
EBITDA    14,168    14,321    2,161    2,378    6,261    6,520    4,267    3,750    2,199    2,031    (332)   (681)
   % change    -1.1%        -9.1%        -4.0%        13.8%        8.3%        NM     
   % of sales    26.5%    28.8%    10.0%    8.3%    14.6%    16.0%    13.6%    16.9%    22.5%    19.7%    NM    NM 
 
 
                                           
    Beer - Chile     Beer - Argentina*    Non-Alcoholics**    Wine****    Spirits         
    2009    2008    2009    2008    2009    2008    2009    2008    2009    2008         
                       
VOLUMES & PRICING                                                 
                    Total***    Total    Total         
                                     
Volume (HLs)   947,174    912,250    753,580    760,851    1,233,792    1,164,215    269,107    227,620    47,490    51,350         
   % change    3.8%        -1.0%        6.0%        18.2%        -7.5%             
 
                                   
                    Soft Drinks    Chile - Domestic                 
                                   
                    821,811    785,958    126,429    124,042                 
                    4.6%        1.9%                     
                    Nectars    Chile Bottled Exports                 
                                   
                    181,090    167,909    126,569    91,191                 
                    7.9%        38.8%                     
                    Mineral Water   Argentina                 
                                   
                    230,890    210,347    16,110    12,388                 
                    9.8%        30.0%                     
                                   
 
* Volumes do not include exports to Chile of 1,888 HL and 6,942 HL in Q2'09 and Q2'08, respectively. 
** Includes soft drinks (soft drinks, functional products, energy drinks, ice tea), nectars, mineral and purified water. 
*** In unit cases, sales from the soft drinks and mineral water segment totaled 21.7 million and 20.5 million in Q2'09 and Q2'8, respectively. 
**** Volumes do not include bulk volumes of 27,719 HL (23,439 HL from Chile exports and 4,280 HL from Argentina) and 24,037 HL (19,080 HL from Chile exports and 4,957 HL from Argentina) in Q2'09 and Q2'08, respectively. 
 
                    Total    Total                 
                                   
Price (Ch$ / HL)   55,058    52,631    28,337    36,358    33,934    33,825    108,065    90,194    202,339    197,625         
% change (real)   4.6%        -22.1%        0.3%        19.8%        2.4%             
 
                                   
                    Soft Drinks    Chile - Domestic                 
                                   
                    32,868    33,204    74,533    60,395                 
                    -1.0%        23.4%                     
                    Nectars    Chile Bottled Exports                 
                                   
                    45,154    45,576    133,078    121,312                 
                    -0.9%        9.7%                     
                    Mineral Water   Argentina                 
                                   
                    28,935    28,069    174,708    159,499                 
                    3.1%        9.5%                     
                                   

Exhibit 4: Segment Information - Six Months Ended June 30, 2009

    Beer - Chile    Beer - Argentina    Non-Alcoholics**    Wine     Spirits    Others/Eliminations 
    2009    2008    2009    2008    2009    2008    2009    2008    2009    2008    2009    2008 
                           
OPERATING RESULTS                                                 
(all figures in Ch$ millions)                                                
Revenues                                                 
Core products    134,322    130,976    62,479    50,765    98,030    96,607    51,398    36,613    17,541    18,396    0    6,155 
Other products    2,839    2,978    1,287    1,160    2,532    3,229    4,452    2,489    283    364    (1,766)   (2,904)
                           
Total    137,162    133,953    63,765    51,925    100,562    99,836    55,850    39,102    17,824    18,760    (1,766)   3,252 
   % change    2.4%        22.8%        0.7%        42.8%        -5.0%        NM     
 
Cost of sales    (62,079)   (52,574)   (28,712)   (26,303)   (50,410)   (47,844)   (36,117)   (24,117)   (9,212)   (9,342)   3,638    (877)
   % of sales    45.3%    39.2%    45.0%    50.7%    50.1%    47.9%    64.7%    61.7%    51.7%    49.8%    NM    NM 
 
SG&A    (43,023)   (43,141)   (27,300)   (22,530)   (39,266)   (39,063)   (17,275)   (12,954)   (5,993)   (7,132)   (1,475)   (2,734)
   % of sales    31.4%    32.2%    42.8%    43.4%    39.0%    39.1%    30.9%    33.1%    33.6%    38.0%    NM    NM 
 
Operating profit    32,060    38,238    7,753    3,092    10,887    12,929    2,458    2,031    2,618    2,286    396    (358)
   % change    -16.2%        150.7%        -15.8%        21.0%        14.5%        NM     
   % of sales    23.4%    28.5%    12.2%    6.0%    10.8%    12.9%    4.4%    5.2%    14.7%    12.2%    NM    NM 
 
Depreciation    10,323    10,186    4,023    3,485    5,475    5,186    3,844    2,635    1,060    996    3,234    2,994 
Amortization    10    12    26    167    0    0    501    211    45    23    30    1 
EBITDA    42,393    48,437    11,802    6,744    16,362    18,115    6,803    4,877    3,723    3,306    3,660    2,636 
   % change    -12.5%        75.0%        -9.7%        39.5%        12.6%        38.9%     
   % of sales    30.9%    36.2%    18.5%    13.0%    16.3%    18.1%    12.2%    12.5%    20.9%    17.6%    NM    81.1% 
 
 
                                           
    Beer - Chile     Beer - Argentina*    Non-Alcoholics**    Wine****             Spirits         
    2009    2008    2009    2008    2009    2008    2009    2008    2009    2008         
                       
VOLUMES & PRICING                                                 
                    Total***    Total    Total         
                                       
Volume (HLs)   2,454,068    2,481,228    1,877,221    1,615,308    2,886,164    2,887,144    469,375    409,824    87,459    94,455         
   % change    -1.1%        16.2%        0.0%        14.5%        -7.4%             
 
                                   
                    Soft Drinks    Chile - Domestic                 
                                   
                    1,907,453    1,931,930    225,357    226,074                 
                    -1.3%        -0.3%                     
                                   
                    Nectars    Chile Bottled Exports                 
                    362,991    334,928    217,766    162,601                 
                    8.4%        33.9%                     
                    Mineral Water   Argentina                 
                                   
                    615,720    620,286    26,252    21,149                 
                    -0.7%        24.1%                     
                                                 
* Volumes do not include exports to Chile of 7,905 HL and 21,810 HL in 2009 and 2008, respectively. 
** Includes soft drinks (soft drinks, functional products, energy drinks, ice tea), nectars, mineral and purified water. 
*** In unit cases, sales from the soft drink and mineral water segment totaled 50.8 million and 50.8 million in 2009 and 2008, respectively. 
**** Volumes do not include bulk volumes of 54,855 HL (47,525 HL from Chile exports and 7,330 HL from Argentina) and 51,476 HL (39,040 HL from Chile exports and 12,437 HL from Argentina ) in 2009 and 2008, respectively. 
 
                                   
                    Total    Total                 
                                       
Price (Ch$ / HL)   54,735    52,787    33,283    31,427    33,965    33,461    109,502    86,989    200,561    194,758         
% change (real)   3.7%        5.9%        1.5%        25.9%        3.0%             
 
                                   
                    Soft Drinks    Chile - Domestic                 
                                   
                    33,267    32,751    77,390    59,249                 
                    1.6%        30.6%                     
                    Nectars    Chile - Export                 
                                   
                    45,842    46,311    139,708    118,390                 
                    -1.0%        18.0%                     
                    Mineral Water   Argentina                 
                                   
                    29,129    28,733    134,608    142,092                 
                    1.4%        -5.3%                     
                                   

EXHIBIT 5: BALANCE SHEET

    Ch$ millions    US$ millions (1)   % 
    30-June-09    30-June-08    30-June-09   30-June-08    Change 
                     
ASSETS                     
Cash & equivalents    111,845    43,856    210.3    82.5    155.0% 
Other current assets    292,403    230,369    549.9    433.2    26.9% 
                     
 Total current assets    404,248    274,225    760.2    515.7    47.4% 
PP&E, net    494,630    446,956    930.2    840.5    10.7% 
Other assets    154,914    143,230    291.3    269.3    8.2% 
TOTAL ASSETS    1,053,792    864,410    1,981.7    1,625.6    21.9% 
 
LIABILITIES &                     
STOCKHOLDERS' EQUITY                     
Short-term debt (2)   65,802    11,831    123.7    22.2    456.2% 
Other current liabilities    134,399    116,082    252.7    218.3    15.8% 
                     
 Total current liabilities    200,201    127,913    376.5    240.5    56.5% 
Long-term debt (2)   227,840    174,452    428.5    328.1    30.6% 
Other long-term liabilities    43,106    56,798    81.1    106.8    -24.1% 
                     
 Total long-term liabilities    270,945    231,250    509.5    434.9    17.2% 
                     
Minority interest    89,711    57,285    168.7    107.7    56.6% 
                     
Stockholders' equity    492,935    447,963    927.0    842.4    10.0% 
TOTAL LIABILITIES &                     
STOCKHOLDERS' EQUITY    1,053,792    864,410    1,981.7    1,625.6    21.9% 
 
OTHER FINANCIAL INFORMATION                     
 
Total financial debt    293,641    186,283    552.2    350.3    57.6% 
                     
Net debt (3)   181,797    142,426    341.9    267.8    27.6% 
                     
Liquidity ratio    2.02    2.14             
Debt / Capitalization    0.34    0.27             
_____________________________
(1) Exchange rate: US$1.00 = Ch$531.76
(2) Includes only financial debt
(3) Total financial debt minus cash & equivalents

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Compañía Cervecerías Unidas S.A.
(United Breweries Company, Inc.)

  /s/ Ricardo Reyes     
  Chief Financial Officer 

Date: August 11, 2009