-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BdM2yRwJYvHUDm3XVBy/3zig+mIq+VMhIxQYF7h6V5sJe4dx1azm6zFusFnqH+Ag IpH87XnfFee5xXPK1rRymA== 0000893750-04-000595.txt : 20041217 0000893750-04-000595.hdr.sgml : 20041217 20041217111622 ACCESSION NUMBER: 0000893750-04-000595 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20041214 FILED AS OF DATE: 20041217 DATE AS OF CHANGE: 20041217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANDINA BOTTLING CO INC CENTRAL INDEX KEY: 0000925261 STANDARD INDUSTRIAL CLASSIFICATION: BOTTLED & CANNED SOFT DRINKS CARBONATED WATERS [2086] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13142 FILM NUMBER: 041210242 BUSINESS ADDRESS: STREET 1: CARLOS VALDOVINOS 560 STREET 2: LAS CONDES CITY: SANTIAGO CHILE STATE: F3 ZIP: 00000 BUSINESS PHONE: 5623380520 6-K 1 form6k.txt REPORT OF FOREIGN ISSUER Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15b-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For December 17, 2004 Andina Bottling Company, Inc. ----------------------------- (Translation of registrant's name into English) Avenida Andres Bello 2687 ---------------------------------- Piso 20, Las Condes ---------------------------- Santiago -------------------- Chile ----------------- (Address of principal executive offices) Form 20-F X Form 40-F__ --- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes___ No X --- ANDINA BOTTLING COMPANY, INC. (THE "COMPANY") REPORT ON FORM 6-K TABLE OF CONTENTS 1. Announcement of consolidated results for the third quarter and nine months ended September 30, 2004. MATERIAL EVENT -------------- CORPORATE NAME : EMBOTELLADORA ANDINA S.A. SECURITIES REGISTRY : 00124 TAXPAYER I.D. : 91.144.000-8 - ------------------------------------------------------------------------------ The following is reported by virtue of the stipulations in Article 9 and subparagraph 2 of Article 10 of Law 18,045, and the provisions in Section II.B.3 of General Rule No. 30 of the Superintendency of Securities and Insurance: Santiago, October 29, 2004 Pedro Pellegrini Ripamonti Corporate Legal Manager Embotelladora Andina S.A. EMBOTELLADORA ANDINA S.A. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Santiago, Chile. EMBOTELLADORA ANDINA S.A. By: /s/ Osvaldo Garay ------------------ Osvaldo Garay Chief Financial Officer Dated: December 17, 2004 EX-99.1 3 exh.txt EXHIBIT WWW.koandina.com EMBOTELLADORA ANDINA S.A. For Immediate Distribution Contacts in Santiago, Chile Contact in New York, U.S.A. Embotelladora Andina S.A. = i-advize Corporate Communications Osvaldo Garay, Chief Financial Officer Peter Majeski/Melanie Carpenter Andrea Valenzuela, Investor Relations (212) 406-3690 (56-2) 338-0520 E-Mail: andina@i-advize.com E-Mail: inv.rel@koandina.com Embotelladora Andina S.A. Announces Consolidated Results For the Third Quarter and Nine Months ended September 30, 2004 Highlights o Operating Income amounted to US$20.3 million in the third quarter of 2004, representing a 28.5% increase over the third quarter of 2003. Operating margin was 12.4%. o Sales Volume amounted to 84.1 million unit cases, which is 9.5% higher than the third quarter of 2003. o Consolidated EBITDA amounted to US$34.4 million, representing a 15% increase versus the third quarter of 2003. EBITDA Margin was 21.1%, 178 basis points higher than that of the same period of the previous year. o Consolidated Net Income amounted to US$10.2 million, which is a positive comparison regarding the US$1.6 million generated during the third quarter of 2003. o Consolidated EBITDA reached US$106 million for the nine months ended September 30, 2004, an improvement of 22.1%. EBITDA Margin was 21.7%. (Santiago-Chile, October 29, 2004) -- Embotelladora Andina S.A. ("the Company" NYSE: AKO/A; AKO/B) announced today its consolidated financial results for the third quarter and nine months ended September 30, 2004. Comments from the Chief Executive Officer, Mr. Jaime Garcia R. "As we approach the end of the year we can state the good results obtained, which satisfies and encourages us to continue improving our business. We are pleased to see that the three countries in which we operate have a very important role in the generation of these results, with more eficient operations and better economic conditions." 1 CONSOLIDATED SUMMARY Nine Months ended September 30, 2004 vs. Nine Months ended September 30, 2003 Results for the nine months ended September 30, 2004, indicate that this has been a good year, with growth in volumes and margin improvements for the three countries. Consolidated Sales Volume amounted to 253.5 million unit cases, which represents a steady increase of 6.6%, with respect to the nine months ended September 30, 2003, stemming from our three franchises which have grown 4.2% in Chile, 2.0% in Brazil, and 17.9% in Argentina. Net sales increased by 4.5%, amounting to US$489.2 million. On the other hand, Cost of Sales decreased by 2.2%. This is explained by (i) the average appreciation of the three currencies (the Chilean peso appreciated 13.8%, the Brazilian real 6.6% and the Argentine peso 2.7%), benefiting our dollar-denominated costs; and (ii) as a result of specific negotiations performed in these three countries, we obtained better raw material prices for certain items related to our cost of production. SG&A increased by 4.1% mainly as a result of higher volumes (distribution and inter-warehouse freights). Operating Income amounted to US$63.4 million; this is 55.4% higher than the US$40.8 million recorded during the nine months ended September 30, 2003. Operating Margin was 13.0%, 424 basis points above the same period of last year. Consolidated EBITDA amounted to US$106 million, representing an increase of 22.1%. EBITDA margin was 21.7%, which is 312 basis points above the comparative period. CHART OMITTED 2 Third quarter 2004 vs. Third quarter 2003 - ----------------------------------------- Consolidated Sales Volume in the third quarter of 2004 amounted to 84.1 million unit cases. This is an increase of 9.5% versus the same period of last year. Notably, the volumes sold in the three countries grew, by 4.3% in Chile, 11.6% in Brazil, and 13.8% in Argentina. Net Sales amounted to US$162.8 million, an improvement of 5.3% compared to the third quarter of the previous year. Cost of Sales increased 2.9%, lower than the increase in volumes, and mainly due to savings in raw materials and the appreciation of the Chilean peso. Operating Income amounted to US$20.3 million, representing an increase of 28.5% compared to the third quarter of 2003. Operating Margin was 12.4%, which is an improvement of 224 basis points. Consolidated EBITDA amounted to US$34.4 million, an improvement of 15% versus the US$29.9 million obtained during the same period of 2003. The EBITDA Margin was 21.2%, representing an improvement of 178 basis points. SUMMARY BY COUNTRY Chile Nine Months ended September 30, 2004 vs. Nine Months ended September 30, 2003 - ----------------------------------------------------------------------------- During the nine months ended September 30, 2004 Sales Volume amounted to 90 million unit cases representing an increase of 4.2% compared to last year. Net Income amounted to US$230.7 million, 2.4% above the same period of the previous year. The previous, along with cost efficiencies and an appreciation of the average exchange rate (that during the nine months ended September 30, 2004 was 13.8%), benefiting our dollar-denominated costs, resulted in Operating Income of US$48.2 million, a 9.3% higher than the figure recorded for the nine months ended September 30, 2003. Operating Margin was 20.9%, representing an improvement of 131 basis points. EBITDA amounted to US$66.2 million, 7.5% higher than the EBITDA reached during the nine months ended September 30, 2003. EBITDA Margin was 28.7% (135 basis points higher than the same period of the previous year). 3 Third quarter 2004 vs. Third quarter 2003 - ----------------------------------------- Sales Volume for the third quarter of 2004 amounted to 29.8 million unit cases, representing a 4.3% improvement over the same period of 2003. The important growth of juices and mineral water stands out, representing improvements of 10.3% and 8.6%, respectively. Net Sales amounted to US$75.5 million, 2.6% higher than the previous year. Cost of Sales amounted to US$45.6 million, an increase of 0.6% (despite the 4.3% increase in volumes), as a result of the 9.3% average appreciation of the Chilean peso during the quarter, which benefited our dollar-denominated costs. Operating Income amounted to US$15.5 million, an improvement of 11.1% compared to the third quarter of 2003. Operating Margin reached 20.6%, an improvement of 158 basis points. EBITDA reached US$21.3 million, representing an improvement of 7.5%. EBITDA Margin was 28.2%, representing an improvement of 130 basis points. Brazil Nine Months ended September 30, 2004 vs. Nine Months ended September 30, 2003 - ----------------------------------------------------------------------------- In Brazil we began to see a recovery in domestic demand, and as a result Sales Volume amounted to 96.7 million unit cases, an improvement of 2% compared to the nine months ended September 30, 2003. Net Sales amounted to US$155.1 million, an improvement of 2.6% compared to the nine months ended September 30, 2003. Cost of Sales decreased 7.6% as a result of improved negotiations for the purchase of raw materials and the average appreciation of 6.6% of the Brazilian real, which benefited our dollar-denominated costs, leading to 9.4% lower Cost of Sales per unit case when compared with the nine months ended September 30, 2003. SG&A amounted to US$44.4 million, representing a 2.8% increase, mainly due to higher selling and distribution expenses (associated with higher volumes) and increased advertising expenses. EBITDA amounted to US$26.1 million, representing an increase of 60.5% versus the nine months ended September 30, 2003. EBITDA Margin amounted to 16.9%, an improvement of 608 basis points. 4 Third quarter 2004 vs. Third quarter 2003 - ----------------------------------------- Demand clearly improved during the quarter, which, along with our market strategies (product launchings - "FantaMix", and new formats of 1.75 lt Pet, 1.5 lt Pet and the 200 ml returnable glass bottle- and the initiation of market segmentation) and better weather conditions, allowed us to revert the 2.2% volume decrease experienced during the first half of 2004. Thus, volumes grew 11.6% during the third quarter of 2004. At the end of August we successfully finalized the franchise swap of Governador Valadares (State of Minas Gerais), getting back in compensation the territory of Nova Iguazu (State of Rio de Janeiro). Net Sales amounted to US$52.2 million, representing a 5.5% increase. Cost of Sales increased 7.1%, but unit case cost of sales reflects a decrease of 4.1%, due to better raw material prices, mainly sugar. Operating Income reached US$3.2 million, an improvement of 7.8% over the third quarter of the previous year. Operating Margin was 6.1%, similar to that of third quarter of 2003. EBITDA amounted to US$8.5 million, representing an EBITDA Margin of 16.3%, which is an improvement of 268 basis points compared to the same period of 2003. Argentina Nine Months ended September 30, 2004 vs. Nine Months ended September 30, 2003 - ----------------------------------------------------------------------------- Sales Volume amounted to 66.8 million unit cases, representing an improvement of 17.9% when compared to the nine months ended September 30, 2003. Our strategy of returnable formats has been effective, representing 44% of our total sales mix. Net Sales amounted to US$108.5 million, an improvement of 15.7% versus the same period of last year. Cost of Sales increased 5.9% amounting to US$73.7 million, benefiting from the aforementioned appreciation of the Argentine peso. Operating Income amounted to US$9 million, compared to a marginal Operating Income for the same period last year of US$0.4 million. Operating Margin was 8.3%. EBITDA amounted to US$19.4 million, with an EBITDA Margin of 17.9%, an improvement of 323 basis points over the EBITDA Margin obtained for the nine months ended September 30, 2003. 5 Third quarter 2004 vs. Third quarter 2003 - ----------------------------------------- Sales Volume for the quarter reached 22.2 million unit cases, representing a 13.8% growth. Format launchings have been carried out during this quarter (the 237 cc bottle in Sprite Zero flavor in order to complete the immediate consumption format portfolio) along with a special focus on pushing up diet soft drinks. Net Sales amounted to US$36.9 million, an increase of 9.9% versus the third quarter of the previous year. Cost of Sales amounted to US$24.5 million, remaining flat compared to the third quarter of 2003. Operating Income amounted to US$3.6 million, an improvement versus US$0.4 million recorded during the same period of last year. EBITDA amounted to US$6.6 million, an improvement of 34.2% when compared to the third quarter of 2003. EBITDA Margin was 18%, representing an improvement of 326 basis points. NON-OPERATING RESULTS Nine Months ended September 30, 2004 vs. Nine Months ended September 30, 2003 - ----------------------------------------------------------------------------- Non-Operating Results amounted to US$20.3 million, reaming flat with respect to the same period of the previous year. The negative Non-Operating Results is mainly explained by the "Amortization of Goodwill" account, a loss recorded in the "Net Financial Income" account (this last item was due to hedge agreements posting negative results this year versus positive results as of September 2003), along with the negative effect to date of Cross Currency Swaps, which was offset by the positive exchange rate variations from December 2003 to September 2004 (recorded under the "Price-level Restatement" account). Additionally, provisions were made for labor and tax lawsuits in Argentina and Brazil, and for investments in other companies with negative equity, all recorded under the "Other Income/(Expense)" account. Finally, Net Earnings amounted to US$39.4 million, representing an improvement of 181.2% versus Net Earnings registered during the nine months ended September 30, 2003. ANALYSIS OF THE BALANCE SHEET As of September 30, 2004, the Company's financial assets amounted to US$353.7 million. These represent cash, investments in mutual funds, deposits, structured notes and corporate and sovereign bonds, of which 87.5% of the total is held in U.S. dollar-denominated papers. Nevertheless, through "Cross-Currency Swaps" realized in July and August of 2003 and during April of 2004, part of the portfolio has been converted to Chilean pesos (UF), thereby decreasing to 32.9% the amount denominated in US dollars. 6 The Company's total debt amounted to US$334.7 million, with an average annual coupon rate of 6.7% on U.S. dollar-denominated debt, and an average real coupon rate of 5.5% on Chilean peso-denominated debt. The U.S. dollar-denominated debt represents 34.9% of total debt. Thus, the Company holds a positive net cash position of US$19 million. Additional Information For purposes of an easier comprehension and analysis of the Company's results, charts reflecting the results of the beverage operations for each country have been included. These charts are based on each operation's own accounting practices and are reflected in local currency. This information isolates currency fluctuations and the effects registered when consolidating under Chilean GAAP. This release may contain forward-looking statements reflecting Embotelladora Andina SA's good faith expectations and are based upon currently available data; however, actual results are subject to numerous uncertainties, many of which are beyond the control of the Company and any one or more of which could materially impact actual performance. Among the factors that can cause performance to difer materially are: political and economic conditions on consumer spending, pricing pressure resulting from competitive discounting by other bottlers, climatic conditions in the Southern Cone, and other risk factors applicable from time to time and listed in Andina's periodic reports filed with relevant regulatory institutions. 7 Embotelladora Andina S.A.
Main Indicators INDICATORS Unit Sep-04 Dic-03 Sep-03 Variance ---------- ---- ------ ------ ------ -------- LIQUIDITY Current Ratio Times 0.90 1.40 1.67 -0.77 Acid Tests Times 0.68 1.18 1.36 -0.68 Working Capital MCh$ 11,419 32,678 21,599 -10,180 ACTIVITY Investments MCh$ 18,572 25,824 21,134 -2,562 Inventory turnover Times 8.44 13.18 8.73 -0.29 Days of inventory on hand Days 42.65 27.31 41.22 1.42 INDEBTEDNESS Debt to equity ratio % 101.79% 93.25% 90.02% 11.78% Short-term liabilities to total liabilities % 36.93% 32.40% 28.46% 8.47% Long-term liabilities to total liabilities % 63.05% 67.60% 71.52% -8.47% Interest charges coverage ratio Times 12.52 N/A 12.23 0.30 PROFITABILITY Return over equity % 8.03% 4.69% 2.44% 5.58% Return over total assets % 4.07% 2.51% 1.32% 2.75% Return over operating assets % 8.64% 14.84% 2.54% 6.10% Operating income MCh$ 38,613 48,606 24,847 13,766 Operating margin % 12.96% 12.33% 8.72% 4.24% EBITDA (1) MCh$ 60,114 57,257 47,238 12,876 EBITDA margin % 20% 14% 17% 3.60% Dividends payout ratio - Serie A shares % 4.70% 6.17% 6.92% -2.22% Dividends payout ratio - Serie B shares % 5.43% 6.66% 7.63% -2.21%
EBITDA (1) Earnings before income taxes, interests, depreciation, amortization and extraordinary items. Embotelladora Andina S.A. Third Quarter Results for the period ended September 30, Chilean GAAP (In millions of constant 09/30/04 Chilean Pesos, except per share)
30-09-2004 ---------------------------------------------------- Chilean Brazilian Argentine Operations Operations Operations Total(2) ---------- ---------- ---------- -------- VOLUME TOTAL BEVERAGES (Million UC) 29.8 32.1 22.2 84.1 Soft Drink 25.2 30.8 21.8 77.8 Mineral Water 1.8 0.4 0.3 2.6 Juices 2.8 0.2 0.0 3.1 Beer NA 0.7 NA 0.7 NET SALES 45,954 31,781 22,446 99,140 COST OF SALES (27,751) (20,594) (14,890) (62,193) GROSS PROFIT 18,203 11,187 7,556 36,946 Gross Margin 39.6% 35.2% 33.7% 37.3% SELLING AND ADMINISTRATIVE EXPENSES (8,740) (9,256) (5,393) (23,389) CORPORATE EXPENSES 0 0 0 (1,220) OPERATING INCOME 9,463 1,932 2,163 12,338 Operating Margin 20.6% 6.1% 9.6% 12.4% EBITDA (1) 12,974 5,178 4,032 20,965 Ebitda Margin 28.2% 16.3% 18.0% 21.1% NON OPERATIONAL RESULTS FINANCIAL EXPENSE/INCOME (Net) 4,617 RESULTS FROM AFFILIATED 1,030 AMORTIZATION OF GOODWILL (1,765) OTHER INCOME/(EXPENSE) (2,437) PRICE LEVEL RESTATEMENT (3) (7,817) NON-OPERATING RESULTS (6,372) INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 5,966 INCOME TAXES 265 MINORITY INTEREST (0) AMORTIZATION OF NEGATIVE GOODWILL 0 NET INCOME 6,231 Net Margin 6.3% - ---------- ---- WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 EARNINGS PER SHARE 8.2 EARNINGS PER 49.2 - -------------------------------------------------------------------------------------------------------
30-09-2003 ---------------------------------------------------------------- Chilean Brazilian Argentine Operations operations Operations total(2) % Ch ---------- ---------- ---------- -------- ---- VOLUME TOTAL BEVERAGES (Million UC) 28.6 28.8 19.5 76.8 9.5% Soft Drink 24.4 27.3 19.1 70.8 9.9% Mineral Water 1.6 0.4 0.4 2.4 5.3% Juices 2.5 0.2 0.0 2.7 11.8% Beer NA 0.9 NA 0.9 -24.9% NET SALES 44,808 30,115 20,428 94,114 5.3% COST OF SALES (27,584) (19,231) (14,891) (60,469) 2.9% GROSS PROFIT 17,224 10,884 5,538 33,645 9.8% Gross Margin 38.4% 36.1% 27.1% 35.7% SELLING AND ADMINISTRATIVE EXPENSES (8,705) (9,092) (5,299) (23,095) 1.3% CORPORATE EXPENSES 0 0 0 (949) 28.6% OPERATING INCOME 8,519 1,792 239 9,601 28.5% Operating Margin 19.0% 6.0% 1.2% 10.2% EBITDA (1) 12,067 4,101 3,004 18,223 15.0% Ebitda Margin 26.9% 13.6% 14.7% 19.4% NON OPERATIONAL RESULTS FINANCIAL EXPENSE/INCOME (Net) 4,388 5.2% RESULTS FROM AFFILIATED (558) 284.4% AMORTIZATION OF GOODWILL (1,868) -5.5% OTHER INCOME/(EXPENSE) 2,692 -190.5% PRICE LEVEL RESTATEMENT (3) (11,129) -29.8% NON-OPERATING RESULTS (6,477) -1.6% INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 3,124 90.9% INCOME TAXES (2,177) 112.2% MINORITY INTEREST (0) 0.0% AMORTIZATION OF NEGATIVE GOODWILL 0 NA NET INCOME 947 557.7% Net Margin 1.0% - ---------- ---- WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 EARNINGS PER SHARE 1.2 EARNINGS PER ADS 7.5 557.7%
(1) EBITDA: Operating Income + Depreciation (2) Total may be different from the addition of the three countries because of intercountry eliminations (3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income Statement Accounts. Embotelladora Andina S.A. Third Quarter Results for the period ended September 30, Chilean GAAP (In millions US$, except per share)
30-09-2004 ---------------------------------------------------- Chilean Brazilian Argentine Operations Operations Operations Total(2) ---------- ---------- ---------- -------- VOLUME TOTAL BEVERAGES (Million UC) 29.8 32.1 22.2 84.1 Soft Drink 25.2 30.8 21.8 77.8 Mineral Water 1.8 0.4 0.3 2.6 Juices 2.8 0.2 0.0 3.1 Beer NA 0.7 NA 0.7 NET SALES 75.5 52.2 36.9 162.8 COST OF SALES (45.6) (33.8) (24.5) (102.1) GROSS PROFIT 29.9 18.4 12.4 60.7 Gross Margin 39.6% 35.2% 33.7% 37.3% SELLING AND ADMINISTRATIVE EXPENSES (14.4) (15.2) (8.9) (38.4) CORPORATE EXPENSES 0.0 0.0 0.0 (2.0) OPERATING INCOME 15.5 3.2 3.6 20.3 Operating Margin 20.6% 6.1% 9.6% 12.4% EBITDA (1) 21.3 8.5 6.6 34.4 Ebitda Margin 28.2% 16.3% 18.0% 21.1% NON OPERATIONAL RESULTS FINANCIAL EXPENSE/INCOME (Net) 7.6 RESULTS FROM AFFILIATED 1.7 AMORTIZATION OF GOODWILL (2.9) OTHER INCOME/(EXPENSE) (4.0) PRICE LEVEL RESTATEMENT (3) (12.8) NON-OPERATING RESULTS (10.5) INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 9.8 INCOME TAXES 0.4 MINORITY INTEREST (0.0) AMORTIZATION OF NEGATIVE GOODWILL 0.0 NET INCOME 10.2 Net Margin 6.3% - ---------- ---- WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 EARNINGS PER SHARE 0.01 EARNINGS PER ADS 0.08 - -------------------------------------------------------------------------------------------------------
Exch. Rate: 608.9
30-09-2003 --------------------------------------------------------------- Chilean Brazilian Argentine Operations Operations Operations Total(2) % Ch. ---------- ---------- ---------- -------- ------- VOLUME TOTAL BEVERAGES (Million UC) 28.6 28.8 19.5 76.8 9.5% Soft Drink 24.4 27.3 19.1 70.8 9.9% Mineral Water 1.6 0.4 0.4 2.4 5.3% Juices 2.5 0.2 0.0 2.7 11.8% Beer NA 0.9 NA 0.9 -24.9% NET SALES 73.6 49.5 33.5 154.6 5.3% COST OF SALES (45.3) (31.6) (24.5) (99.3) 2.9% GROSS PROFIT 28.3 17.9 9.1 55.3 9.8% Gross Margin 38.4% 36.1% 27.1% 35.7% SELLING AND ADMINISTRATIVE EXPENSES (14.3) (14.9) (8.7) (37.9) 1.3% CORPORATE EXPENSES 0.0 0.0 0.0 (1.6) 28.6% OPERATING INCOME 14.0 2.9 0.4 15.8 28.5% Operating Margin 19.0% 6.0% 1.2% 10.2% EBITDA (1) 19.8 6.7 4.9 29.9 15.0% Ebitda Margin 26.9% 13.6% 14.7% 19.4% NON OPERATIONAL RESULTS FINANCIAL EXPENSE/INCOME (Net) 7.2 5.2% RESULTS FROM AFFILIATED (0.9) 284.4% AMORTIZATION OF GOODWILL (3.1) -5.5% OTHER INCOME/(EXPENSE) 4.4 -190.5% PRICE LEVEL RESTATEMENT (3) (18.3) -29.8% NON-OPERATING RESULTS (10.6) -1.6% INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 5.1 90.9% INCOME TAXES (3.6) 112.2% MINORITY INTEREST (0.0) 0.0% AMORTIZATION OF NEGATIVE GOODWILL 0.0 NA NET INCOME 1.6 557.7% Net Margin 1.0% - ---------- ----- WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 EARNINGS PER SHARE 0.00 EARNINGS PER ADS 0.01 557.7%
(1) EBITDA: Operating Income + Depreciation (2) Total may be different from the addition of the three countries because of intercountry eliminations (3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income Statement Accounts. Embotelladora Andina S.A. Nine Months Results for the period ended September 30, Chilean GAAP (In millions US$, except per share)
30-09-2004 ---------------------------------------------------- Chilean Brazilian Argentine Operations Operations Operations Total(2) ---------- ---------- ---------- -------- VOLUME TOTAL BEVERAGES (Million UC) 90.0 96.7 66.8 253.5 Soft Drink 76.2 92.2 65.5 233.9 Mineral Water 6.1 1.5 1.2 8.9 Juices 7.7 0.7 0.1 8.5 Beer NA 2.3 NA 2.3 NET SALES 140,466 94,440 66,069 297,888 COST OF SALES (84,390) (60,163) (44,865) (186,330) GROSS PROFIT 56,077 34,277 21,205 111,558 Gross Margin 39.9% 36.3% 32.1% 37.4% SELLING AND ADMINISTRATIVE EXPENSES (26,713) (27,041) (15,727) (69,480) CORPORATE EXPENSES 0 0 0 (3,465) OPERATING INCOME 29,364 7,236 5,478 38,613 Operating Margin 20.9% 7.7% 8.3% 13.0% EBITDA (1) 40,292 15,916 11,828 64,571 Ebitda Margin 28.7% 16.9% 17.9% 21.7% NON OPERATIONAL RESULTS FINANCIAL EXPENSE/INCOME (Net) (4,744) RESULTS FROM AFFILIATED 856 AMORTIZATION OF GOODWILL (5,597) OTHER INCOME/(EXPENSE) (5,755) PRICE LEVEL RESTATEMENT (3) 2,905 NON-OPERATING RESULTS (12,335) INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 26,278 INCOME TAXES (2,275) MINORITY INTEREST (1) AMORTIZATION OF NEGATIVE GOODWILL 0 NET INCOME 24,002 Net Margin 8.1% - ---------- ---- WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 EARNINGS PER SHARE 31.6 EARNINGS PER ADS 189.4
30-09-2003 --------------------------------------------------------------- Chilean Brazilian Argentine Operations Operations Operations Total(2) % Ch. ---------- ---------- ---------- -------- -------- VOLUME TOTAL BEVERAGES (Million UC) 86.4 94.8 56.6 237.8 6.6% Soft Drink 73.0 90.3 55.4 218.7 6.9% Mineral Water 5.9 1.6 1.1 8.6 2.9% Juices 7.5 0.6 0.0 8.2 3.7% Beer NA 2.3 NA 2.3 -1.3% NET SALES 137,141 92,063 57,084 284,956 4.5% COST OF SALES (84,283) (65,098) (42,385) (190,434) -2.2% GROSS PROFIT 52,858 26,965 14,699 94,521 18.0% Gross Margin 38.5% 29.3% 25.7% 33.2% SELLING AND ADMINISTRATIVE EXPENSES (25,988) (26,302) (14,485) (66,775) 4.1% CORPORATE EXPENSES 0 0 0 (2,899) 19.5% OPERATING INCOME 26,870 663 213 24,847 55.4% Operating Margin 19.6% 0.7% 0.4% 8.7% EBITDA (1) 37,487 9,917 8,378 52,883 22.1% Ebitda Margin 27.3% 10.8% 14.7% 18.6% NON OPERATIONAL RESULTS FINANCIAL EXPENSE/INCOME (Net) 5,062 -193.7% RESULTS FROM AFFILIATED 2,000 -57.2% AMORTIZATION OF GOODWILL (5,605) -0.1% OTHER INCOME/(EXPENSE) 1,154 -598.8% PRICE LEVEL RESTATEMENT (3) (14,974) 119.4% NON-OPERATING RESULTS (12,362) -0.2% INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 12,485 110.5% INCOME TAXES (3,949) -42.4% MINORITY INTEREST (2) 15.0% AMORTIZATION OF NEGATIVE GOODWILL 0 NA NET INCOME 8,534 181.2% Net Margin 3.0% - ---------- ---- WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 EARNINGS PER SHARE 11.2 EARNINGS PER ADS 67.4 181.2% - ---------------------------------------------------------------------------------------------------------------
30-09-2004 ---------------------------------------------------- Chilean Brazilian Argentine Operations Operations Operations Total(2) ---------- ---------- ---------- -------- VOLUME TOTAL BEVERAGES (Million UC) 90.0 96.7 66.8 253.5 Soft Drink 76.2 92.2 65.5 233.9 Mineral Water 6.1 1.5 1.2 8.9 Juices 7.7 0.7 0.1 8.5 Beer NA 2.3 NA 2.3 NET SALES 140,466 94,440 66,069 297,888 COST OF SALES (84,390) (60,163) (44,865) (186,330) GROSS PROFIT 56,077 34,277 21,205 111,558 Gross Margin 39.9% 36.3% 32.1% 37.4% SELLING AND ADMINISTRATIVE EXPENSES (26,713) (27,041) (15,727) (69,480) CORPORATE EXPENSES 0 0 0 (3,465) OPERATING INCOME 29,364 7,236 5,478 38,613 Operating Margin 20.9% 7.7% 8.3% 13.0% EBITDA (1) 40,292 15,916 11,828 64,571 Ebitda Margin 28.7% 16.9% 17.9% 21.7% NON OPERATIONAL RESULTS FINANCIAL EXPENSE/INCOME (Net) (4,744) RESULTS FROM AFFILIATED 856 AMORTIZATION OF GOODWILL (5,597) OTHER INCOME/(EXPENSE) (5,755) PRICE LEVEL RESTATEMENT (3) 2,905 NON-OPERATING RESULTS (12,335) INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 26,278 INCOME TAXES (2,275) MINORITY INTEREST (1) AMORTIZATION OF NEGATIVE GOODWILL 0 NET INCOME 24,002 Net Margin 8.1% - ---------- ---- WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 EARNINGS PER SHARE 31.6 EARNINGS PER ADS 189.4
(1) EBITDA: Operating Income + Depreciation (2) Total may be different from the addition of the three countries because of intercountry eliminations (3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income Statement Accounts. Embotelladora Andina S.A. Nine Months Results for the period ended September 30, Chilean GAAP (In millions US$, except per share)
30-09-2003 --------------------------------------------------------------- Chilean Brazilian Argentine Operations Operations Operations Total(2) % Ch. ---------- ---------- ---------- -------- ------- VOLUME TOTAL BEVERAGES (Million UC) 86.4 94.8 56.6 237.8 6.6% Soft Drink 73.0 90.3 55.4 218.7 6.9% Mineral Water 5.9 1.6 1.1 8.6 2.9% Juices 7.5 0.6 0.0 8.2 3.7% Beer NA 2.3 NA 2.3 -1.3% NET SALES 225.2 151.2 93.7 468.0 4.5% COST OF SALES (138.4) (106.9) (69.6) (312.8) -2.2% GROSS PROFIT 86.8 44.3 24.1 155.2 18.0% Gross Margin 38.5% 29.3% 25.7% 33.2% SELLING AND ADMINISTRATIVE EXPENSES (42.7) (43.2) (23.8) (109.7) 4.1% CORPORATE EXPENSES 0.0 0.0 0.0 (4.8) 19.5% OPERATING INCOME 44.1 1.1 0.4 40.8 55.4% Operating Margin 19.6% 0.7% 0.4% 8.7% EBITDA (1) 61.6 16.3 13.8 86.9 22.1% Ebitda Margin 27.3% 10.8% 14.7% 18.6% NON OPERATIONAL RESULTS FINANCIAL EXPENSE/INCOME (Net) 8.3 -193.7% RESULTS FROM AFFILIATED 3.3 -57.2% AMORTIZATION OF GOODWILL (9.2) -0.1% OTHER INCOME/(EXPENSE) 1.9 -598.8% PRICE LEVEL RESTATEMENT (3) (24.6) 119.4% NON-OPERATING RESULTS (20.3) -0.2% INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 20.5 110.5% INCOME TAXES (6.5) -42.4% MINORITY INTEREST (0.0) 15.0% AMORTIZATION OF NEGATIVE GOODWILL 0.0 NA NET INCOME 14.0 181.2% Net Margin 3.0% - ---------- ------ WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 EARNINGS PER SHARE 0.02 EARNINGS PER ADS 0.11 181.2%
(1) EBITDA: Operating Income + Depreciation (2) Total may be different from the addition of the three countries because of intercountry eliminations (3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income Statement Accounts. Embotelladora Andina S.A. Consolidated Balance Sheet (In million of constant 09/30/04 Chilean Pesos)
ASSETS 30-09-2004 30-09-2003 %Ch l - ------ ---------- ---------- ----- Cash + Time deposits + market. Securit. 24,026 58,748 -59.1% Account receivables (net) 36,033 37,328 -3.5% liabilities 1,227 1,409 -13.0% Inventories 24,082 25,835 -6.8% Other current assets 13,727 16,265 -15.6% - -------------------- ------ ------ ------ payable 39,667 35,307 12.3% Total Current Assets 97,868 138,175 -29.2% Property, plant and equipment 529,735 547,635 -3.3% Depreciation (365,660) (358,605) 2.0% - ------------ --------- --------- ------ Total Property, Plant, and Equipment 164,075 189,030 -13.2% Investment in related companies 19,225 20,297 -5.3% Investment in other companies 55 689 -92.0% Goodwill 93,033 101,064 -7.9% Other long term assets 209,714 164,783 27.3% - ---------------------- --------- --------- ------ Total Other Assets 322,028 286,834 12.3% TOTAL ASSETS 583,972 614,039 -4.9% LIABILITIES & SHAREHOLDERS' EQUITY - ---------------------------------- Short term bank liabilities 18,648 6,817 173.6% Current portion of long term bank liabilities 1,227 1,409 -13.0% Current portion of bonds payable 18,185 18,523 -1.8% Trade accounts payable and notes payable 39,667 35,307 12.3% Other liabilities 31,061 20,731 49.8% - ----------------- --------- --------- ------ Total Current Liabilities 108,787 82,787 31.4% Long term bank liabilities 49,911 55,915 -10.7% Bonds payable 115,828 129,596 -10.6% Other long term liabilities 20,007 22,541 -11.2% - --------------------------- --------- --------- ------ Total Long Term Liabilities 185,746 208,051 -10.7% Minority interest 51 53 -4.1% Stockholders' Equity 289,389 323,149 -10.4% - -------------------- --------- --------- ------ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 583, 972 614,039 -4.9% - ---------------------------------------- --------- --------- ------
Financial Highlights (In million of constant 09/30/04 Chilean Pesos)
ADDITIONS TO FIXED ASSETS 30-09-2004 30-09-2003 DEBT RATIOS 30-09-2004 30-09-2003 - ------------------------- ------------ ---------- ----------- ---------- ---------- Chile 10,770 12,037 Financial Debt / Total Capitalization 0.41 0.40 Brazil 6,520 7,478 Financial Debt / EBITDA L12M 2.14 2.70 Argentina 1,281 1,619 EBITDA L12M / Interest Expense (net) L12M 7.09 4.89 - --------- ------ ------ ----------------------------------------- ---- ---- 18,572 21,134 L12M: Last twelve months
* As September 30, 2004, the company's registered a positive net cash position of US$ 19 million. Total debt amounted to US$ 335 million. Total Cash amounted to US$ 354 million, which includes cash investments accounted for under Other Current Assets as well as Long Term Assets. 3 Embotelladora Andina S.A. Third Quarter Results for the period ended September 30, Local GAAP Beverage Operations (Local Gaap)
3 Quarter 2004 3 Quarter 2003 ------------------------------------- ------------------------------------------- Chile Brazil ARGENTINA Chile Brazil Argentina (MCh$) (MR$) (MA$) (MCh$ (MR$) (MAS) ------ ----- ----- ----- ----- ----- TOTAL BEVERAGES VOLUME (Million UC) 29.8 32.1 22.2 28.6 28.8 19.5 Soft Drink 25.2 30.8 21.8 24.4 27.3 19.1 Mineral Water 1.8 0.4 0.3 1.6 0.4 0.4 Juices 2.8 0.2 0.0 2.5 0.2 0.0 Beer NA 0.7 NA NA 0.9 NA NET SALES SOFT DRINKS 38,842 142.0 90.3 37,847 120.9 74.5 NET SALES OTHER 6,844 13.1 1.0 6,624 13.8 0.8 NET SALES TOTAL 45,686 155.1 91.3 44,471 134.6 75.4 COST OF SALES (27,587) (95.7) (55.4) (27,377) (82.2) (46.0) GROSS PROFIT 18,099 59.4 35.9 17,094 52.4 29.4 Gross Margin 39.6% 38.3% 39.3% 38.4% 38.9% 38.9% SELLING AND ADMINISTRATIVE EXPENSES (8,485) (44.5) (25.2) (8,415) (39.3) (23.0) OPERATING INCOME 9,613 14.9 10.7 8,680 13.1 6.4 Operating Margin 21.0% 9.6% 11.7% 19.5% 9.8% 8.5% - ---------------- ----- ---- ----- ----- ---- ---- EBITDA (1) 13,104 24.5 15.2 12,686 20.4 10.9 Ebitda Margin 28.7% 15.8% 16.6% 28.5% 15.2% 14.5% - ------------- ----- ----- ----- ----- ----- -----
(1) EBITDA: Operating Income + Depreciation MCh$: Million Nominal Chilean pesos of each period MR$: Million Nominal Brazilian Reais MA$: Million nominal Argentine pesos Chile results do not consider corporate expenses Embotelladora Andina S.A. Results ended September 30, Local GAAP Beverage Operations (Local Gaap)
9/30/2004 9/30/2003 ------------------------------------- ------------------------------------------- Chile Brazil ARGENTINA Chile Brazil Argentina (MCh$) (MR$) (MA$) (MCh$ (MR$) (MAS) ------ ----- ----- ----- ----- ----- TOTAL BEVERAGES VOLUME (Million UC) 90.0 96.7 66.8 86.4 94.8 56.6 Soft Drink 76.2 92.2 65.5 73.0 90.3 55.4 Mineral Water 6.1 1.5 1.2 5.9 1.6 1.1 Juices 7.7 0.7 0.1 7.5 0.6 0.0 Beer NA 2.3 NA NA 2.3 NA NET SALES SOFT DRINKS 117,188 418.8 266.0 114,919 415.9 217.2 NET SALES OTHER 21,111 41.2 3.0 21,066 39.7 2.8 NET SALES TOTAL 138,299 460.0 269.0 135,985 455.6 220.0 COST OF SALES (83,088) (280.6) (165.9) (83,573) (308.2) (141.4) GROSS PROFIT 55,211 179.4 103.2 52,412 147.4 78.6 Gross Margin 39.9% 39.0% 38.3% 38.5% 32.4% 35.7% SELLING AND ADMINISTRATIVE EXPENSES (25,868) (128.4) (70.2) (25,250) (120.4) (61.2) OPERATING INCOME 29,343 51.0 32.9 27,162 27.1 17.4 Operating Margin 21.2% 11.1% 12.2% 20.0% 5.9% 7.9% EBITDA (1) 40,103 75.5 46.7 37,633 49.1 30.1 Ebitda Margin 29.0% 16.4% 17.3% 27.7% 10.8% 13.7%
(1) EBITDA: Operating Income + Depreciation MCh$: Million Nominal Chilean pesos of each period MR$: Million Nominal Brazilian Reais MA$: Million nominal Argentine pesos Chile results do not consider corporate expenses -----END PRIVACY-ENHANCED MESSAGE-----