United Breweries Co Inc (CCU)

Price$11.77Cached quoteAs of 2026-09-10 16:07 UTC

AI: Fair-priced

Price checkThe ADR trades at a mid-teens forward earnings multiple, suggesting a balanced valuation.

Research confirms this is Compañía Cervecerías Unidas S.A., whose ADR trades on the NYSE under ticker CCU. MarketScreener estimates about 16.5 times 2026 earnings and 15.6 times 2027 earnings. P/E means how much investors pay for each unit of annual profit. That sits in a middle zone rather than signaling a clear bargain or premium, especially because earnings remain uneven and leverage rose after the water acquisition. I therefore view the ADR as fairly priced.

Big pictureOperations are improving, but acquisition spending lifted leverage and reduced the cash cushion.

First-half 2026 sales rose 2.1% and EBITDA—operating profit before interest, tax, depreciation and amortization—increased 7.8%, while net income fell 28.8% because non-operating items and tax comparisons offset better operations. Operating cash inflow improved to CLP 165 billion, but acquisition and capital spending pulled cash lower. Net financial debt rose to CLP 943 billion and net debt-to-EBITDA increased to 2.43 times. That leverage ratio compares debt after cash with annualized operating earnings; higher means less flexibility. Liquidity remained adequate, with current assets about 1.84 times current liabilities.

Business strengthChile is resilient, while Argentina, Bolivia, and wine expose CCU to meaningful cyclicality.

Chile remains the core strength: second-quarter volumes grew 2.5%, EBITDA rose 26.2%, and margins benefited from lower dollar-linked input costs and a stronger non-alcoholic mix. The weakness is geographic and category cyclicality. Argentina consumption stayed soft, Bolivia faced disruptions, and wine volumes fell sharply amid weak global demand and higher wine costs. CCU also spent heavily on the Nestlé water stake and capital investment. Shares outstanding were unchanged year over year, so recent capital allocation has used cash and debt rather than equity dilution.

What could change the storyUpside needs margin durability and deleveraging; downside centers on weak volumes and cost pressure.

Bull case: Chile keeps gaining share, the fully owned water business adds profitable growth, Argentina stabilizes, wine demand normalizes, and cash generation brings leverage back toward roughly 2 times EBITDA. In that case a mid-teens forward P/E could look inexpensive. Bear case: international volumes keep shrinking, wine margins stay weak, oil, aluminum or currency moves lift costs, and the water acquisition fails to earn a strong return while leverage stays above roughly 2.4 times EBITDA. That would make today's valuation look full and could constrain dividends or investment.

AI: News

Second-quarter reboundAugust results showed stronger Chile profitability, while wine and international volumes remained under pressure.

On August 4, 2026, CCU reported second-quarter net sales up 4.8% and EBITDA up 59.4%. Chile drove the improvement, with higher volumes and stronger margins. However, consolidated volumes declined 1.5%, international and wine volumes contracted, and the quarter still posted a net loss. Management said the loss reflected negative non-operating effects, including a Bolivia impairment, while first-half EBITDA rose 7.8% and first-half net income declined 28.8%.

Water business consolidatedJune's Nestlé transaction gave CCU full ownership of a growing Chilean water subsidiary.

On June 5, 2026, CCU acquired Nestlé Chile's remaining 49.9% stake in Aguas CCU-Nestlé Chile, taking ownership to 100%. The closing purchase price was approximately CLP 164.6 billion, subject to customary adjustments. CCU said the subsidiary participates with leading brands in Chile's growing water market and that its commercial relationship with Nestlé would continue. The deal also helps explain the first-half investing cash outflow and higher net leverage.

CEO transition completedA planned leadership handoff installed Eduardo Ffrench-Davis as CEO while Patricio Jottar moved to the board.

On May 29, 2026, CCU announced that Eduardo Ffrench-Davis would become chief executive on July 1, succeeding Patricio Jottar after 28 years as CEO. Jottar moved into a director role. The board also named Heineken Americas president Alexandre Othenio Carreteiro as vice-chairman and director effective August 1. The transition preceded the new CEO's August discussion of the Vamos por Más strategy focused on business concentration, synergies, agility and transformation.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
Revenue	$2.91T	$2.90T	$2.57T	$2.71T	$2.48T	$1.86T	$1.82T	$1.78T	$1.70T	$1.56T	$1.50T
Gross profit	$1.29T	$1.31T	$1.19T	$1.20T	$1.19T	$873.56B	$914.22B	$923.27B	$899.62B	$817.08B	$813.30B
Gross margin	44.39%	45.23%	46.26%	44.13%	48.02%	47.03%	50.16%	51.77%	52.97%	52.41%	54.28%
Operating expenses	$1.08T	$1.05T	$946.98B	$977.75B	$862.68B	$698.38B	$680.26B	$450.52B	$672.44B	$624.77B	$599.85B
Operating income	$211.41B	$262.61B	$239.97B	$218.76B	$330.47B	$175.18B	$233.97B	$472.75B	$227.18B	$192.31B	$213.45B
Operating margin	7.27%	9.04%	9.35%	8.07%	13.30%	9.43%	12.84%	26.51%	13.38%	12.34%	14.25%
EBITDA	$190.19B	$415.84B	$366.09B	$345.26B	$454.59B	$284.99B	$338.99B	$566.04B	$319.38B	$275.83B	$295.02B
EBITDA margin	6.54%	14.32%	14.27%	12.73%	18.30%	15.34%	18.60%	31.74%	18.81%	17.69%	19.69%
Net income	$117.15B	$176.54B	$118.43B	$135.48B	$219.05B	$108.19B	$145.65B	$322.08B	$148.11B	$140.08B	$140.53B
Net profit margin	4.03%	6.08%	4.62%	5.00%	8.82%	5.82%	7.99%	18.06%	8.72%	8.99%	9.38%
Basic EPSper basic share	CLP 634.10	CLP 435.57	CLP 285.93	CLP 319.80	CLP 539.00	CLP 260.22	CLP 352.21	CLP 0.83	CLP 0.35	CLP 0.32	CLP 0.33
Diluted EPSper diluted share	CLP 634.10	CLP 435.57	CLP 285.93	CLP 319.80	CLP 539.00	CLP 260.22	CLP 352.21	CLP 0.83	CLP 0.35	CLP 0.32	CLP 0.33