Good day, everyone, and welcome to CCU's first quarter 2025 earnings conference call on the eighth of May, 2025. Please note that today's call is being recorded. At this time, I would like to turn the conference call over to Claudio Las Heras, the Head of Investor Relations. Please go ahead, sir.
Welcome, and thank you for attending CCU's first quarter 2025 conference call. Today with me are Mr. Patricio Jottar, Chief Executive Officer, Mr. Felipe Dubernet, Chief Financial Officer, Mr. Joaquín Trejo, Financial Planning and Investor Relations Manager, and Mrs. Carolina Burgos, Senior Investor Relations Analyst. You have received a copy of the company's consolidated first quarter 2025 earnings release. The call will start reviewing our overall results, and then we will move on to a Q&A session. As usual, before we begin, please take note of the following statement. Statements made in this call that relate to CCU future financial results are forward-looking statements, which involve known and unknown risks and uncertainties that could cause actual performance or results to materially differ.
These statements should be taken in conjunction with additional information about risks and uncertainties set forth in CCU's annual report in Form 20-F filed with the U.S. Securities and Exchange Commission and the annual report submitted to the CMF available on our website. It is now my pleasure to introduce our CEO, Mr. Patricio Jottar.
Thank you, Claudio, and thank you all for joining us today. In the first quarter, 2025, we delivered higher financial results versus last year, expanding consolidated EBITDA and net income by 6% and 10.7% respectively, in spite of a highly volatile business environment. In this context, organic consolidated volumes, this is excluding the volumes of Aguas de Oriente and AD in Argentina and Paraguay, respectively, were down 1.8%, driven by all operating segments amid soft consumption in the region. The higher EBITDA was explained by international business operating segment, largely due to Argentina. We're certain that the scenario for 2025 will continue to be challenging and volatile. Our focus in the coming quarters will be to continue implementing our 2025 to 2027 strategic plan and its three pillars, profitability, growth, and sustainability.
With a special focus on profitability through further efforts in revenue management and efficiencies. At the same time, under the growth pillar, in a difficult context for expanding business scale, we'll focus on brand equity, sales execution, and innovations to address new consumer trends. Lastly, in the sustainability pillar, our goal is to progress in our Juntos por un Mejor Vivir strategy in its two pillars: our planet and our people. The figures that I will refer to now for the consolidated and the international business operating segment results consider organic figures. This is excluding, again, the consolidation of Aguas de Oriente in Argentina and AD in Paraguay. Regarding our consolidated performance in first quarter 2025, organic consolidated net sales were up 3%, explained by 4.9% higher organic average prices in Chilean pesos, while organic volumes were 1.8% lower.
Higher organic average prices in Chilean pesos were explained by all operating segments as a consequence of revenue management efforts. Gross profit grew 1.7% organically, and organic gross margin contracted by 56 basis points due to higher cost of sales. On the other hand, organic MSD&A expenses expanded 2.7% in Chilean pesos, offsetting inflationary pressures with efficiencies. As a percentage of net sales declined 11 basis points. In all, organic EBITDA reached CLP 136 million, a 4.8% organic increase. In terms of our segments, in the Chile operating segment, top line expanded 2.8% as a result of a 4.8% increase in average prices, while volumes were down 1.9%. Average prices were driven by revenue management efforts, partially compensated by negative mix effect in the portfolio.
Gross profit decreased 1.1%, and gross margin was down 180 basis points compared to last year, mainly driven by higher manufacturing costs and negative mix effect in packaging and cost pressures coming from higher US dollar-denominated costs. MSD&A expenses were 2.7% higher, being practically flat as a percentage of net sales due to efficiencies that compensated inflationary pressures. Altogether, EBITDA reached CLP 94,400 million, a 2.4% increase, and EBITDA margin was down 97 basis points. In international business operating segment, excluding the inorganic volumes from the consolidation of Ago and AD, in Argentina and Paraguay respectively, organic net sales recorded a 6.3% increase. Driven by higher organic average prices, which more than offset a 1.2% contraction in organic volumes.
Organic volumes in Argentina were nearly flat, continuing on a recovery path of business sales compared to previous quarters. Meanwhile, Uruguay and Paraguay posted low and mid-single digit organic volume declines, respectively, while Bolivia grew by low single digits. Higher organic average prices were mostly driven by revenue management initiatives in all the geographies, more than offsetting cost pressures coming especially from a weaker Argentine peso against the U.S. dollar and inflationary pressures. Consequently, organic gross profit expanded 10.7%, and organic gross margin grew 202 basis points. Organic MSD&A expenses as a percentage of net sales increased 32 basis points, mostly from inflationary pressures in Argentina. In all, organic EBITDA reached CLP 33,435 million, a 28.1% expansion driven by Argentina, Uruguay and Bolivia.
The wine operating segment posted a top line expansion of 2.1%, fully driven by a 6.2% rise in average prices, while volumes were down 3.8% compared to last year. Lower volumes were explained by a contraction in the Chilean domestic market industry, while exports from Chile were flat. The better average prices were mostly explained by a weaker Chilean peso and its favorable impact on export revenues and revenue management initiatives in the domestic markets. Gross profit was down 1.6%, and gross margin deteriorated by 142 basis points due to cost pressures from a higher cost of wine and higher US dollar-linked packaging costs. MSD&A expenses were flat, and as a percentage of net sales, improved 56 basis points due to efficiencies.
Altogether, EBITDA reached CLP 6,592 million, a 1.1% increase. EBITDA margin was down 36 basis points. Regarding our main business and associated businesses, in Colombia, we posted better financial results versus last year, despite a slight contraction in volumes, which nonetheless was slightly lower than the industry. Now I will be glad to answer any questions you may have.
Thank you very much. We will now move to the question-and-answer section. If you'd like to ask a question, please press star two on your phone and wait to be prompted. If you're dialed in by the web, you can type your question in the box provided or request to ask a voice question. We'll just wait a moment or two 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.
Hi. Good morning, everyone, and thanks for taking my question. First, I would like to explore volume performance in Chile. If you can give us some details of how different was the performance between non-alcoholic and alcoholic beverages and specifically on beer? Also, if you can comment about the performance between premium and mainstream? That's my first question. Thanks.
Thank you, Fernando. Thank you, Fernando, for your question. Look, according to Nielsen, our overall market share in Chile, in the Chile operating segment is stable. Now, double-click, we have gained some market share, small in non-alcoholic, and we have lost some market share, small in beer. Take into consideration that according to Nielsen data, overall alcohol industry is decreasing, mixing behaviors. These are sell-out volumes to consumers. The companies publish sell-in volumes in different channels and thus are not necessarily reflected in market share. Again, market share in the total Chilean operating segment stable with a small increase or gain in non-alcoholic and a small decrease or loss in beer.
Okay, and regarding the recovery going forward on volumes, how are you seeing such trends?
Excuse me. Regarding mainstream and premium. Sí. Regarding mainstream and premium stable. Looking forward, there is a big concern, not just in Chile, but in the world regarding alcohol patterns of consumption. Probably you have heard about this because it is something which is being discussed in every company producing and selling alcohol all over the world. Look, huge figures. Let's take the consumption of alcohol at 100 degrees. To make this calculation, you take beer and calculate 5%, wine calculate 12%, spirits and calculate 35. If it's whiskey, it's called 40. If you are considering other spirits. And you calculate the per capita consumption of alcohol at 100 degrees. This figure in Chile in 2019 was 5.3 liters of alcohol per capita per year. 5.3.
In pandemic, it increases a lot. After pandemic, it began to decrease. In 2023, it was still 5.3, same level than pre-pandemic. In 2024, it decreased to 5.1. Beginning 2025, the trend is to a decrease. For the same very volume, the same figures for United States, 7.4 in 2019 pre-pandemic, seven in 2024. The decrease in United States are being even higher than in Chile. Globally, the world as a whole, 3.1 liters in 2019, and 2.8 liters in 2024. There are many hypotheses why it is occurring. If you want, we could discuss on this. My main concern regarding the future are volumes on the alcoholic category.
Indeed, I don't see a disaster, a big decline, but the trends are not favorable. We are making a lot of things to change the trend, of course, on responsible consumption basis. But this is a concern.
Okay. If I may just one last question. If you can give us more color on the lower tax in Argentina, which I understand that caused the sharp decline on consolidated taxes, and if this effect is expected in coming quarters. Thank you.
Hey, Felipe, could you elaborate on this, please? Tell Fernando. Could you clarify that this is for the import taxes, you mean?
Yes.
Import taxes?
Yeah. Yes. I mean, at consolidated taxes, you mentioned that it declined significantly year-over-year due to lower tax in Argentina because of inflation.
No, no.
I understand.
No. Yeah. I understand your question, yeah. This is related to the use of inflation for tax purposes. Usually in Argentina, until 2019, we didn't use the inflation for tax purposes. Since 2019, we started to use that, and we have some provisions related to that. As Argentina has become more stable in terms of macroeconomics or liberalizing, as you know, the exchange controls, we decided to release some provisions related to that in the use of inflation for tax purposes. This is the explanation.
Okay. This effect, this benefit is expected in coming quarters, Felipe?
Yeah. Yeah, because it's gradual.
Okay. Perfect. Thank you.
Yes. Look, Fernando, one more remark regarding trends of alcohol consumption. My remark before showing a decline in Chile, United States, and worldwide on the alcohol pattern consumptions, this is a long-term consideration. If you consider, if you make double clicks in quarters Q2 last year in Argentina was very poor, and Q2 in Chile was very poor, still poor. We expect to have a much better result regarding alcoholic volumes in Q2. But leaving it apart, I mean, because it's a consideration on the basis of 2024, the trend is not favorable for the industry according my opinions.
Yes.
or our opinions. Mm-hmm.
Okay. Great. Thank you so much.
Thank you.
Thank you. Our next question is from Álvaro García from BTG Pactual. Your line is now open. Please go ahead.
Hi, can you hear me?
Yes, we can. Please go ahead.
Uh.
Alvaro, we cannot hear you now. Okay, perhaps you can send us a text question or redial.
Can you hear me there?
Now we can, yes.
Sorry about that. Wrong mic. Hi, Patricio. Hi, Felipe. Just, I have a couple questions. One on how you're thinking about margins in Chile in a stronger Chilean peso environment into the second half of this year. Obviously, you've had a lot of questions over the last couple years on sort of where you can take margins over the medium term, and we seem to be getting in a better sort of input cost environment for you. That would be interesting. My second question is on Argentina. I was wondering if you could talk about pricing because we were a little bit surprised. I mean, I know you're consolidating a water business, which obviously has much lower pricing.
I was wondering if maybe you can comment a bit on pricing, as there was a little bit of a surprise, let's say, in our model there, what you're seeing from a pricing standpoint as inflation comes down. Thank you very much.
Thank you, Alvaro, for your two questions. Let me, I will begin with Argentina, and then I will jump to Chile. Look, it's a big question mark, yeah, because I mean, for many years. Prices were key in Argentina, and we had no difficulties to increase prices in line with inflation, even higher than inflation. Because if inflation amount is 10% and increase prices by 11% or 12%, nothing happens. Consumers are there paying for your products. Now, inflation is decreasing a lot, and after the liberation of exchange rate, exchange rates remain almost stable in Argentina. So there are different opinions what is going to happen with inflation in Argentina. Some people think that, inflation will continue to be 2% per year.
Some people are saying that it will move to zero very rapidly, and there are opinions also saying that probably we'll have negative inflation. This is first remark. Second remark. There are some services which are adjusting their prices, so there is that hidden inflation which will come from those services where its prices have been controlled. We expect that the price increase of the industry of the consumer products industry will be lower than official inflation for this effect. We don't know. We're not sure. I prefer to think that inflation is going to be very low, that it's going to be very difficult to continue increasing prices, and that we have to compensate this with input costs, which are helping, and with strong efficiencies programs on MSD&A. This is what we are doing.
If inflation continues to be 2%, indeed we will have to increase price. Otherwise, we'll have a huge gap which is impossible to finance. Again, this is executing every single day. Every single day. Summarizing, if core inflation continues being high, 2%-3%, we'll continue increasing price in line with inflation and more. It's possible. If inflation collapses and goes to zero, we'll not be able to increase price. Now, in both cases, we are making strong efforts in reducing expenses. Regarding margins in Chile, we have been increasing prices to compensate the price that we didn't increase in the past when the raw material, the cost of raw material, the input cost jumped a lot.
We are recuperating margin, margins quarter after quarter, and we continue with this trend. On one hand, input costs are helping, and we are being very extreme on being efficient in our expenses. Altogether, we expect to recuperate margins. Having said that, the comparison basis in Q2 2024 were very weak, so we'll have a good Q2. This is something exceptional associated to the weak basis of comparison for 2024. Long run, the strategy is to recuperate margins.
Great. Thank you. Just maybe to follow up on the Argentina element, would you say that in the first quarter you passed a little less price than usual, or was it just pretty standard from a core organic standpoint?
Yes, definitely less. Having that in 2024, we passed more than inflation to prices. In Q1, the trend continues in Q2, it's extremely difficult to increase price. This is the reason why it seems that inflation is going to collapse very soon. I personally think that inflation will move in the range of 0- 0.5 or maximum 1% per month. Because we are live in our categories and we see the market that prices of consumer goods are very stable and it's been very difficult to increase prices.
No, that's clear.
Again, we need to see. This is what we are seeing today.
Thank you.
Thank you.
Thank you very much. Just a reminder, if you'd like to ask a question, please press star two on your phone. That is star two on your phone and wait for the prompt. If you're dialing by the web, you can type your question in the box provided or request to ask a voice question. We'll give a few moments for the questions to come in. Okay. Our next question is from Felipe Ucros from Scotiabank. Your line is now open. Please go ahead.
Thanks, operator. Hello, Patricio, Felipe, and team. Thanks for taking my question. My first one's around costs. The release mentioned that you experienced higher manufacturing costs in Chile. I was curious about the language about it being around manufacturing rather than raw materials. Can you expand on what exactly were the drivers for these costs? Then I'll have a follow-up after that. Thank you.
Yeah. Indeed, Felipe Dubernet, there are one-timers, but, Felipe Dubernet, why don't you elaborate on this?
The high manufacturing costs were due to two reasons. One was about inventory depletion. As we have reduced inventory, at the end, the allocation of fixed cost was higher than a year ago. It's an accounting issue or matter.
On the other hand, higher labor costs that we experience in Chile because we need to improve definitively our sales and operations plan, because we incur in overtime. This was due to higher labor costs and also included some write-off of some lines that we are not using anymore because they were too old and will be replaced by a new technology. We incur on extra depreciation costs as we have allocated write-off in the Chile operating segment in the depreciation line. That was included. This is. We have two one-offs that Patricio mentioned.
One is related to write-off in the Chile operating segment, and second is we have less inventory than last year in Chile, so was affected by the allocation of fixed expenses as an accounting matter. The overtime that is an inefficiency because of, let's say, a not too good S&OP. We have a project that we discussed in the annual report that we are working on improving our plan. We oversee that in the following quarters we should deliver efficiencies and be more efficient in manufacturing.
Very clear. My next question was actually around efficiency. You managed to maintain your efficiency levels despite having negative volumes, which is, it's not easy to do. It seems like your efficiency program is beginning to work. Can you expand a little bit on how far along you are in that program and how much more you expect?
Thank you for your remarks, Felipe. More than beginning to work, it has worked for many years. Here we have the figures, but the MSD&A as a percentage of sales have declined by 5% or more in a longer period of time. We are putting much more pressure today on this as we expect volumes of alcoholic products to be taxed in the future, as I mentioned before, and as I expect that in Argentina we have tough times or tougher times regarding prices. The combination of these elements oblige us and all the companies, according to our opinion, to be much more stern on executing efficiency programs, and we are in that direction. We are moving in that direction.
That's helpful. Let me ask a follow-up on the efficiency side. Are you reducing marketing expenses in any way or is that part of the SG&A kind of, you know, the plan is to maintain it consistent and draw the efficiencies from other lines?
No, from another line. Have a look particularly on sales, on sales efforts. We are replacing a lot of functions made by sales people through technology with a lot of success. In few words, typically, for many years, a salesperson had four responsibilities. Number one, to recommend the client what to buy. Number two, to execute or to place the order. Number three, to execute in the point of sales. Number four, to keep a good personal relation with the client. On these four activities, the first two could be completely replaced by technology. Today, our artificial intelligence programs are much more smarter than our sales force to recommend the client what to buy, number one.
There are much more efficient ways to place the orders through digital on the other. Sales force are still extremely important to execute in the point of sale, number one, and to have the personal relation with the client on the other. But we need less sales force to do this and more technology, and we're moving rapidly in this direction.
Can I complement Patricio here? If you look at our DNA, especially in Chile, which is the main operating segment, they were below inflation by 2.7%, while marketing expenses were above inflation. It means that we are making efficiencies, as Patricio said, in sales, but also in distribution. Distribution also is a key because it's a big chunk of money there. As you know, truck efficiency, warehouses efficiency. There we are, it's in the good path, let's say, the efficiency program. As I said, if we maintain this path of growing our expenses less than inflation while maintaining or investing better in marketing, that's a good sign, Felipe.
In fact, we measure four times through the year the brand equity of each one of the brands for our portfolio and the brand equity of each one of the brands of our competitors.
The indicators of Q1 2025 for our key categories show us that our brand equity indicators are one of the highest.
Historically.
Historically, the last 10 years, that our portfolio today is extremely healthy. This gives us a lot of confidence on having good volumes, good market shares, good prices, to continue improving our profitability.
Mm-hmm.
Very clear. Thanks. Thanks a lot for the color.
Thank you. Our next question is from Ewald Stark from BICE Inversiones. Your line is now open. Please go ahead.
Okay. Good morning, and thanks for taking my question. In the press release, you mentioned that competition and the context remains highly volatile, and you expect to do so in the coming quarters. I wanted to ask how aggressive you expect competition to be in Chile in the remainder of the year?
Thank you, Ewald, for your question. Look, competition has always been very tough. I know the categories where we participate in Chile and the other countries. I think that this is not going to change. At the same time, this is the same as my main comment. I mean, the tough element of having tough competition, difficult to make money, to increase prices, to increase margins, but we would like to do this particularly through efficiency. The good thing of tough competition is that it promotes per capita consumption, which is key. Because as I mentioned before, the alcohol consumption all over the world is under pressure for many reasons.
A lot of competition, a lot of innovation, a lot of marketing, a lot of execution at the point of sales, contributes to offset those trends. Let me give you one example, which is a very clear signal of this. Per capita consumption in Chilean beer. We compete strongly in beer. Per capita consumption in beer in 2014, 10 years ago, was 44 liters. 44. Per capita consumption of beer in 2024, 10 years after, was 54.2. 10 more liters per capita. In the United States, in the same period, per capita consumption has increased from 74.5 litres- 59 liters. In the world, from 25.4 liters- 22.7 liters. It's true, we have been competing in a very tough way in all our categories for many years.
It's true, and will continue being true. I think that at the end of the day it's good for categories, and we're not afraid of this. It obliges us to improve our capabilities day after day. Finally, as I mentioned before, the high level of brand equity measured quarterly got a maximum level in the last 10 years, in the last many years, in most of our categories. We're very glad on that. This will allow us to be a strong competitor in Chile and the other countries where we participate.
Okay, thanks.
Thank you. Our next question is from Constanza González from Quest Capital. Your line is now open. Please go ahead.
Good morning, Patricio and Felipe, and team. Thank you for the call and for taking my question. I have a question regarding Argentina. For example, considering that you are seeing a recovery in the economy, do you expect that volumes in the next quarter are going to increase? The second question, about this, the devaluation of the economy, do you expect to bring more dollars from Argentina to Chile? How is going to be that process? I would appreciate if you can give us some color about that change. Thanks.
Indeed, Constanza. Look, regarding volumes in Argentina, pre the presidency of Mr. Milei, when inflation was very high, but there was a lot of money in the pockets of consumers, before the adjustment, the run rate of our volumes, the volumes of the last quarter adjusted by seasonal effect. I mean, the industry, I mean, let's say it was 100. I will use an index, 100. In the worst moment in 2024, that was Q1, Q2, Q3, volumes of the industry decreased on run rate basis by 20%. So if it were 100 before, were 80 after. Today we're in 90. Now, just in the middle of the road between pre-adjustment and the worst moment after adjustment. Yeah. This is my reminder.
My remark number two, the worst moment of the adjustment was Q2 and Q3 2024. We expect to have a good growth in volumes compared with those figures. But again, 90 is less than 100. The industry is stabilizing in a level which is 10% better than the worst moment, and 10% lower than the pre-adjustment moment. Your second question, I will ask Felipe to-
Yeah.
To elaborate.
No, this was regarding to the new measures announced on April 14 by the Argentine government. Yes, the Central Bank announced an agreement first with the International Monetary Fund, which is good, but also include a comprehensive financing package, a new regulatory framework for exchange rate controls. These announcements, of course, for the future are very positive because for results or income delivered from audited financial statements from 2025 and thereafter, we would be able to bring dividends from Argentina, which is good news for the future. I cannot tell you if we will bring or not dividends. It will depend on our results and other accounts.
It was announced a new BOPREAL, which is a new Bonos para la Reconstrucción de una Argentina Libre, in Spanish, that would allow us to settle some accounts that we have with some commercial partners that we have foreign exchange rate exposures in our P&L, which is positive, but also to pay some unsettled shared services from the holding company to Argentina. First is to settle the accounts, would be the first objective. Then of course for the future is positive that we could bring dividends from the results from 2025 and thereafter from thence. We see with very good eyes this new announcement of the government.
Okay. Thank you for your answer. I had a follow-up question in relation with the changes in trends. I'm sorry. Which is the level of margin EBITDA that you feel comfortable for the long term?
You know, we do not make projections publicly for the long term. We are trying to recuperate the EBITDA margin in the beer business, both in Chile and Argentina.
Okay. Thank you. Thank you for your answers.
Thank you.
Thank you. We have a follow-up question from Fernando Olvera from Bank of America. Your line is now open. Please go ahead.
Great, thanks for picking up my question again. I would like to hear your thoughts about the weak demand in wine in both local market and exports. Now, is there any other reason besides a lower demand of alcohol? Also, how do you expect volume to behave, the remainder of the year given that you will face easier comps? Thank you.
Thank you. Thank you, Fernando. I think it's true. I mentioned before the trends to reduce the alcohol consumption on the whole, alcohol category. If you double click, the wine category has been the one suffering the most. Twenty nineteen—This is Chile. 2019, the per capita of wine, including sparkling wine. Wine and sparkling wine. The per capita in Chile, 2019, 12.7 liters. 2024, 10.5 liters. 2025, continuing declining. United States, wine and sparkling wine, 2019, 9.8 liters. 2024, 8.4 liters. The world as a whole, which impacts on our ability to export, per capita of 2019 of wine and sparkling wine, 3.8 liters. 2024, 3.3 liters.
Among all the categories, the one suffering the most is the wine. The beer and spirits categories have been able to defend themselves. I think that's because the wine categories are much more conservative. The beer category has bringing a lot of innovation, and the spirits category has been much more innovation, particularly on flavored alcoholic products, which are growing a lot. Low alcohol, flavored, sparkling, those categories are increasing a lot. We're promoting strongly those categories based on beer business, spirits, and also based on wine. In Chile, we have been able to defend the volumes and profitability by doing this, and we expect those categories to grow a lot in the future. Regarding this year, we prefer not to make a public estimation.
Of course, we have our own estimations, but we prefer not to make them public. Again, the trend is complicated, as I mentioned before, particularly for wine, but we are trying to offset those, this trend by pushing a lot of those flavored, low level of alcoholic drinks, non-alcoholic because it's products, beer without alcohol, and others. Sparkling wine without alcohol. We expect those categories to grow in the future, and we are pushing a lot. With a lot of margin, in fact, because those categories make sense because they bring volume and they also bring margins. At the very beginning, you have to invest in marketing, you have to generate a little bit of additional costs in your operation.
We are convinced that they will be extremely important in the future, and not only in the future, in the near future. Yeah, that's it.
Okay, great. Thank you so much for the color.
Thank you. We have a question from Santiago Petri from Franklin Templeton. Good morning. Thanks for the call. Do you perceive a change in consumption habits toward beer consumption globally? Why are sodas doing better than beer? What is your outlook for beer consumption in the future?
Okay. Well, thank you, Santiago, for your question. It's a key question, and probably you take this question before my last remarks. I mean, again, I will repeat some figures and give you an additional figures. All over the world in the last ten years, I don't know. Let's compare pre-pandemic with post-pandemic. Beer all over the world, the per capita was 23.9. 2024, 22.7. So a decline, but not as important as in the case of wine. In the case of Chile, per capita is in 2019, 52.22. In 2024, 54.2. So we have been able to move in a different direction than the world in the beer category.
The population, among other reasons, in the past, a competitive environment that we have in Chile, which applies to all competitors to be very smart and promote our volumes. So we have been able to move in the right direction. 2025, the trend is not good, as I mentioned before, and as Nielsen shows. This is our. I would say that this is the key challenge for all the companies producing alcohol all over the world, right? We are facing this challenge. Indeed, it is a challenge.
Thank you very much. I will now be passing the line for the CCU team for the closing remarks.
In summary, in first quarter 2025, we were able to deliver higher financial results, expanding EBITDA and net income in a challenging business environment for volumes and continuous cost pressures. In line with our priority of recovering profitability, we implemented revenue management efforts across all operating segments while continuing to deliver efficiencies. Furthermore, in 2025, we are celebrating 175 years of history. A period during we have overcome many challenging times by being a dynamic and innovative company, capable of adapting to transformations of Chile and the other countries where we have expanded our operations. This vast business experience will be key to navigating the current uncertain business scenario, especially in terms of consumption trends and exchange rate volatility. Thus, we continue implementing our 2025-2027 strategic plan, supporting our multi-category strategy to ensure sustainable and profitable growth for CCU.
This concludes the call for today. Thank you, and have a nice day.