Quiñenco incorporates the profit and loss from more than 40 companies in its financial results each period. Nonetheless, it only consolidates its operations with a number of its investments, the main operating companies being Madeco, Lucchetti, Telsur and Hoteles Carrera. The profit or loss from other investments such as Banco de Chile and CCU, which are relevant to Quiñenco in terms of size and impact on its financial results for any given period, do not consolidate with the Company. Quiñenco’s proportionate share of these companies’ income or loss is included with non-operating results.

Quiñenco reported consolidated sales of Ch$357,379 million in 2003, down by 10.7% from the 2002 level. Consolidated sales were affected by the discontinuation of Lucchetti’s productive activities in Peru following the closure of its facilities in January 2003 as well as a reduction in Madeco’s sales as it continued to suffer from the downturn in investment levels in its principal markets, particularly Brazil. In spite of the decline in sales which directly translated into a 10.9% reduction in gross profit, operating profit rose by 22.8% to Ch$12,747 million. The pronounced improvement in consolidated operating profit was attributable to across the board reductions in SG&A expenses, most notably at Madeco and Lucchetti.

Quiñenco reported non-operating income of Ch$177 million, having totally reverted 2002´s non-operating losses of Ch$109,393 million. The marked improvement was attributable to a series of factors, the most relevant being the notable increase in income from equity investments which rose by over 123% to Ch$57,995 million, mostly in connection with Quiñenco’s interest in Banco de Chile and CCU. Banco de Chile finished its first post-merger year with a record level of net profits of which Ch$38,047 million corresponded to Quiñenco’s interest. CCU divested its interest in a Croatian brewery in 2003, generating a significant extraordinary gain on sale. This, coupled with more than a 20% increase in operating income, led CCU to report net profits of Ch$54,088 million, of which Quiñenco’s share was Ch$16,657 million.

Likewise, a US$50 million settlement received from Quiñenco’s ex partners in IRSA, the company which controls 61.6% of CCU, boosted non-operating results by an additional Ch$36,035 million. Other non-operating expenses, interest expense and foreign currency translation losses were also reduced considerably in 2003, further benefiting non-operating performance.