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Compania Cervecerias Unidas ADR Representing Two Ord Shs V.CCU


Primary Symbol: CCU

Compania Cervecerias Unidas S.A. is a diversified beverage company operating principally in Chile, Argentina, Bolivia, Colombia, Paraguay and Uruguay. The Company operates as a brewer, soft drinks producer, water and nectar producer, wine producer and pisco distributor. The Company's segments include Chile, International Business and Wine. The Company carries a portfolio of products, which includes a range of brands of alcoholic and non-alcoholic beer, with Cristal as its primary brand in Chile. In addition, it produces and distributes Heineken beer; distributes Sol beer and Budweiser beer, and distributes and produces Kunstmann and Austral beer in Chile. The International Business segment includes operations in Argentina, Paraguay and Uruguay. The Company, through Vina San Pedro Tarapaca S.A. (VSPT), produces and markets a range of wine products for the domestic and mainly the export market.


NYSE:CCU - Post by User

Comment by redfoxon May 22, 2006 9:55am
463 Views
Post# 10890087

RE: financials please clarify

RE: financials please clarifythe banks required them, as part of the financing, to put the hedge in place. They also required them to buy a put, which cost them in the order of $3 million and which expired worthless as it was significantly below the market price of copper. As for the hedge, the last time I spoke with the company they mentioned that it was for a period of three years and for about 1/3 of their yearly production. Unfortunately that is what the banks required them to put in place. Good thing is that 2/3 or more of their production is unhedged and they are getting good coinage for the copper. Call the company directly, they are very amenable to discussing the details of the hedge. Oh yes, this will be a terrific stock as they have already started to make money and it appears unlikely that they will need to do more financings for next mine (they are generating sufficient positive cash flows to finance at least one new mine this year). best wishes to all as we watch this new producer become a significant mid-tier producer.
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