UNITED BREWERIES CO INC

TheWine Operating segment posted a Net sales expansion of 3.4%, mostly driven by a 4.9% increase in volumes as average prices contracted 1.4%. Higher volumes were explained by the Argentine domestic market, more than doubling volumes versus last year, fueled by a strong performance of our brand Colón Selecto Dulce, from a fruit flavored brand extension innovation. Chile domestic market and exports, contracted 4.5% and 1.9%, respectively, in line with industry trends. The decline in average prices was associated with a stronger CLP against the USD which impacted negatively export revenues and mix effects. Direct profit grew 2.0%, and Direct margin contracted 68 bps. Total expenses rose 15.1%, and as a percentage of Net sales were up 463 bps, mostly due to higher restructuring expenses. Altogether, EBITDA reached CLP 7,106 million, a 35.5% decrease. Isolating restructuring charges, EBITDA was down 11.0%. During the quarter, we kept pursuing efficiencies and continued accelerating high-margin innovation backed by our multicategory production capabilities, to gradually recover scale and profitability in this challenging scenario for the wine industry.