-----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, Bi1Zbhz4SBTLRr2evuT6N1rG/3ZHEcpIxqOnu24Lpk25WD6JsjVII2alSFV99ht6 Ghf4nFAeROCEoiHYNbjE6Q== 0000893750-02-000523.txt : 20020903 0000893750-02-000523.hdr.sgml : 20020903 20020903163006 ACCESSION NUMBER: 0000893750-02-000523 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020903 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: 02755478 BUSINESS ADDRESS: STREET 1: CARLOS VALDOVINOS 560 STREET 2: LAS CONDES CITY: SANTIAGO CHILE STATE: F3 ZIP: 00000 BUSINESS PHONE: 5623380520 6-K 1 consolidated.txt CONSOLIDATED Embotelladora Andina S.A. www.koandina.com FOR IMMEDIATE DISTRIBUTION - -------------------------- CONTACTS IN SANTIAGO, CHILE CONTACT IN NEW YORK, U.S.A. EMBOTELLADORA ANDINA S.A. I-ADVIZE CORPORATE COMMUNICATIONS Andres Olivos, Chief Financial Officer Maria Barona/Melanie Carpenter Sofia Chellew, Head of Investor Relations 212-406-3690 (56-2) 338-0520 mbarona@i-advize.com inv.rel@koandina.com ANALYSIS OF THE CONSOLIDATED FINANCIAL STATEMENTS OF EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES AS OF JUNE 30, 2002 Santiago-Chile, August 13, 2002 - Embotelladora Andina S.A. (NYSE: AKO/A, AKO/B) announced today its audited consolidated results for the second quarter of 2002, prepared in accordance with Chilean accounting principles and stated in Chilean Pesos ("Ch$") as of June 30, 2002. SECOND QUARTER 2002 CONSOLIDATED RESULTS Except where indicated all figures refer to the second quarter of 2002 and all percentage changes are with respect to the same period of the previous year o Increased efficiencies contributed to improved consolidated profitability of 80 basis points in operating margin and 180 basis points in EBITDA margin. o Net income reached Ch$4,897 million (US$7.1 million) vs. Ch$1,693 million (US$2.5 million) one year ago, representing an increase of 189%. o Impressive EBITDA margin expansion in the Argentine operation o Significant turnaround in the Brazilian operation, despite continued currency devaluation. CFO Statement "Considering the economic pressures in the region, the Company's efforts in the market and in reducing and controlling costs allowed us to practically maintain our EBITDA generation per unit case, as well as improve overall margins. In continuing with this effort, during July, the Company consolidated Argentine production in the Cordoba facility, which will provide a more efficient fixed cost base, going forward. With the current cash position and expected generation, we feel we hold a solid position to meet obligations, capital expenditure requirements as well as the dividend payment schedule for the year." Sales Volume Total volume reached 70.8 million unit cases, representing a decrease of 5%. Soft drink volume decreased 4%, made up of a 2% increase in Chile, 3% in Brazil, while Argentina decreased 27%. Net Sales Net sales decreased 17% to Ch$86,159 million (US$125.2 million), principally explained by the effect of the Argentine peso devaluation, and by a 9% decline in Chile, but which were partially offset by a 16% increase in the Brazil operation. Operating Income A strong performance from the Brazilian operation, which despite the impact from treatment of depreciation under Chilean Gaap, drove the improvement of 80 basis points in consolidated operating margin, and helped absorb the decline of the Argentine operation, and thus led to operating income of Ch$6,743 million (US$9.8 million) for the quarter. EBITDA Significant improvements in margins in the Brazilian and Argentine operations contributed to improved EBITDA margins of 180 basis points, resulting in EBITDA of Ch$16,267 million (US$23.6 million) Non Operating Non-operating results amounted to a profit of Ch$533 Results million (US$0.8 million) vs. a loss of Ch$2,822 million (US$4.1 million) the previous year. The improvement of Ch$3,355 million (US$4.9 million) was principally attributable to: (i) profits in monetary correction and translation effects for Ch$5,547 million (US$8.1 million) due to the positive effect of the Chilean peso devaluation over dollar denominated assets, and the significant reduction in dollar denominated debt compared to the previous year; (ii) lower financial expenses as a result of lower US dollar denominated debt and lower cost of the Chilean peso denominated debt; (iii) one time profits for Ch$963 million (US$1.4 million) related to the dollar debt repurchase realized during the quarter, partially offset by (iv) charges for extraordinary items related to the Argentine reorganization for Ch$3,491 million (US$5.1 million). Income tax provision for the quarter amounted to Ch$2,379 million (US$3.5 million) versus Ch$2,742 million (US$4.0 million) the prior year. Net Income Net income amounted to Ch$4,897 million (US$7.1 million) versus Ch$1,693 million (US$2.5 million) during the second quarter of last year, representing an increase of 189%. OVERVIEW OF BALANCE SHEET As of June 30, 2002, the Company held Ch$250,628 million (US$364.3 million) in financial investments, of which Ch$51,671 million (US$75.1 million) accounted as cash and equivalents; Ch$7,992 million (US$11.6 million) are accounted under other short term assets and Ch$190,964 million (US$277.5 million) are accounted as other long term assets. These represent investments in deposits and US dollar denominated corporate bonds. Approximately 88% of the cash is held in US dollar denominated papers. The Company's total debt amounted to Ch$202,373 million (US$294.1 million), at an average coupon rate of 6.7% per year on the US dollar debt and at an average real coupon rate of 6.4% on the Chilean peso denominated debt. Approximately 40% of the debt is denominated in US dollars. The average maturity of the Company's total debt is roughly 10 years, with the first maturity scheduled for the year 2003 for approximately US$9 million. Following is the schedule of debt maturities for the next 3 years: ---------------------------------------------------------- Year 2003 2004 2005 ---------------------------------------------------------- Million US$ 8.9 16.7 18.8 Thus, as of June 30, 2002, the Company's net cash position was Ch$48,255 million (US$70.1 million) CHILEAN OPERATIONS Overview During the quarter, the 8% growth in soft drink volumes during April and May was negatively affected by the June floods. During July, volume growth rates have recovered to stronger levels, driven by market initiatives such as product and format launchings, which have been successful in controlling the penetration of local brands in the market. Sales Volume During the quarter, sales volume remained flat, as soft drink volumes grew 2%, while juice and mineral water declined 12%, which considers juice export volume during 2001. Domestic volumes of juice and mineral water declined 4% versus the previous year. Net Sales Net sales for the quarter amounted to Ch$39,298 million (US$57.1 million). Excluding, from the previous year, revenues from the packaging operation, which no longer consolidates, revenues would have declined 3%, and is principally explained by lower juice and mineral water revenues. Operating Income Operating income decreased 17% to Ch$6,864 million (US$10.0 million), which is principally attributable to lower revenues together with the devaluation effect over certain US dollar costs. Excluding the packaging operations, from the previous year, operating results for the quarter would have declined only 13%. EBITDA Operating cash flow (EBITDA) for the quarter decreased 19% to Ch$9,905 million (US$14.4 million), with an EBITDA margin of 25.2%. Excluding, once again, the packaging operation from the previous year, Ebitda for quarter would have decreased 12%. BRAZILIAN OPERATIONS Overview The Company's effort in execution and stronger operating performance resulted in higher margins as well as improvement in market share, which reached 54%, 2.6 percentage points over the second quarter of last year. Sales Volume Soft drink volume reached 31.9 million unit cases, representing 3% growth during the quarter. Other beverages volume reached 1.2 million unit cases, representing a 33% growth, attributable to a higher volumes of mineral water and new products. Net Sales Net sales reached Ch$35,783 million (US$52 million), with a 16% increase, driven by volumes together with a 14% beverage price increase, in local currency. Operating Income Operating income reached to Ch$1,749 million (US$2.5 million) from a loss of Ch$185 million (US$0.3 million) the prior year, representing an improvement of 550 basis points in the operating margin. EBITDA EBITDA amounted to Ch$5,040 million (US$7.3 million), 62% above the previous year, and representing an improvement of 400 basis points in margin, which reached 14.1%. ARGENTINE OPERATIONS Overview As the difficult economic environment persists, the Company has continued to implement price increases to help compensate the impact of currency devaluation over costs. In light of lower overall consumer spending, the Company, together with The Coca-Cola Company, has lead initiatives to serve increasingly price sensitive consumers. Because of this, the Company has increased its returnable format mix to 35% from 20%, one year ago. Given the Company's market strategy, realized in previous years, to develop returnable formats, only minor modifications and capital expenditures to production and distribution were required to meet the increased demand of returnable formats. The Company feels it is well-prepared to serve this growing segment of consumption. During July, the Company consolidated production at its Cordoba facility, closing production at the Rosario and Mendoza facilities, both of which continue to operate as distribution centers for their respective markets. The Cordoba facility, with state of the art technology, counts with sufficient capacity to meet current demand and future growth, for all of the company's Argentine territory. The restructuring process resulted in non-operating one-time charges, all of which were recognized in the second quarter of the year and included asset write offs and severance payments for a total of Ch$3,491 million (US$5.1 million). Through this, the Company estimates improved headcount productivity of approximately 21% per year. Sales Volume Total sales volume decreased 26%, with a stronger performance from core brand Coca-Cola and returnable formats. During May, Coca-Cola 1.25 lt. glass returnable bottle was further extended throughout the Company's territories. Market share in the traditional market (mom & pops), where the returnable format is being strengthened, has grown 3 percentage points. As a matter of fact, even in the supermarket channel returnable formats are once again being sold. Net Sales With beverage prices in local currency 27% above the previous year, and 31% above the fourth quarter of 2001, together with the lower volumes, beverage revenues in local currency decreased 6%. Thus, upon translation to Chilean pesos and including the packaging operation, net sales decreased 65%. Operating Income A shift towards more profitable products and formats, lower labor costs and marketing expenses helped partially compensate the lower revenues. The higher US dollar linked costs and the effect of the treatment of depreciation under Chilean GAAP, led to an operating loss of Ch$848 million (US$1.2 million). (Chilean regulation establishes that foreign assets are carried and depreciated in historic US$ dollars--Bol. Tec.64.) The Company's Argentine beverage operation, in fact increased its operating profit by 54%. EBITDA Despite 65% lower revenues, EBITDA decreased only 27%. EBITDA margin of increased to 21.9% from 10.6% one year ago. FIRST SIX MONTHS 2002 VS. 2001 Except where indicated all figures refer to the first six months of 2002 and all percentage changes are with respect to the same period of the previous year Sales Volume Consolidated sales volume reached 156.6 million unit cases, with flat volumes in Chile and declines of 2% and 22% in Brazil and Argentina, respectively. Net Sales The decrease of 19% in net sales is principally explained by lower revenues in the Argentine operation, which decreased 58% as a result of the Argentine peso devaluation and which were partially compensated by 4% higher revenues in Brazil. Operating Income Lower volumes together with currency devaluations in the three operations resulted in 37% lower operating income of Ch$17,527 million (US$25.5 million) and an operating margin of 8.9%. EBITDA Thus, EBITDA reached Ch$36,897 million (US$53.6 million), with an 18.8% margin over net sales. Net Income The positive impact from monetary correction and conversion effects, together with the one-time gain on the sale of the Company's stake in Kaiser, compensated for the decline in operating results and led to 22% higher net income and earnings per share of Ch$27 per share (US$0.24 per ADS). Additional Information ---------------------- As of the first quarter of 2001 and 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. Additionally, the packaging operation has been excluded. This release may contain forward-looking statements reflecting Embotelladora Andina S.A.'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 differ 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. Embotelladora Andina S.A. Second Quarter Results for the period ended June 30, Chilean GAAP (in millions of constant 06/30/02 Chilean Pesos, except per share)
-------------------------------------------- -------------------------------------------------- 30/06/2002 30/06/2001 -------------------------------------------- -------------------------------------------- Chilean Brazilian Argentine Chilean Brazilian Argentine Operations Operations Operations Total (2) Operations Operations Operations Total (2) % Ch - ------------------------------------------------------------------------------- --------------------------------------------------- VOLUME TOTAL BEVERAGES 25,2 33,1 12,5 70,8 25,2 32,0 16,9 74,1 -4,5% (Million UC) Soft Drink 21,4 31,9 12,0 65,3 21,0 31,0 16,3 68,3 -4,4% Mineral Water 1,4 0,5 0,5 2,4 1,4 0,4 0,3 2,1 15.3% Juices 2,4 0,2 0,1 2,6 2,9 NA 0,3 3,2 -19,3% Beer N/A 0,5 NA 0,5 NA 0,5 NA 0,5 -3,9% NET SALES 39,298 35,783 10,710 86,159 43,311 30,820 30,245 104,372 -17,4% COST OF SALES (24,016) (24,260) (7,918) (56,563) (26,494) (20,786) (20,468) (67,743) -16,5% GROSS PROFIT 15.282 11.523 2.792 29.596 16.818 10.034 9.777 36.628 -19,2% Gross Margin 38.9% 32.2% 26.1% 34.4% 38,8% 32.6% 32.3% 35.1% SELLING AND ADMINISTRATIVE EXPENSES (8.418) (9.774) (3.639) (21.831) (8.573) (10.219) (9.835) (28.627) -23,7% CORPORATE EXPENSES 0 0 0 (1,022) 0 0 0 (744) 37,5% OPERATING INCOME 6.864 1.749 (848) 6.743 8.245 (185) (58) 7.258 -7.1% - ----------------------------------------------------------------------------------------------------------------------------------- Operating Margin 17.5% 4,9% -7.9% 7.8% 19.0% -0.6% -0.2% 7.0% EBITDA (1) 9.905 5.040 2.344 16.267 12.263 3.107 3.209 17.835 -8,8% Ebitda Margin 25,2% 14,1% 21,9% 18,9% 28,3% 10,1% 10,6% 17,1% NON OPERATIONAL RESULTS FINANCIAL INCOME (Net) (420) (859) 51,1% RESULTS FROM AFFILIATED (83) (478) 82,6% AMORTIZATION OF GOODWILL (1,914) (1,818) 5,3% OTHER INCOME/(EXPENSE) (510) (94) 439,5% PRICE LEVEL RESTATEMENT (3) 7.089 1.542 359,8% OTHER (3.629) (1.114) -225,8% NON-OPERATING RESULTS 533 (2.822) 118,9% INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 7.276 4.436 64,0% INCOME TAXES (2.379) (2.742) -13,2% MINORITY INTEREST 0 (2) -103,4% AMORTIZATION OF NEGATIVE GOODWILL 0 0 NA - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME 4.897 1.693 189,3% Net Margin 5,7% 1,6% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE SHARES OUTSTANDING 760,3 760,3 EARNINGS PER SHARE 6,4 2,2 EARNINGS PER ADS 38,6 13,4 189,3% - -----------------------------------------------------------------------------------------------------------------------------------
(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. Second Quarter Results for the period ended June 30, Chilean GAAP (in millions US$, except per share)
Exch. Rate: 688,05 ----------------------------------------------------------------------------------------------- 30/06/2002 30/06/2001 -------------------------------------------------------------------------------------- Chilean Brazilian Argentine Chilean Brazilian Argentine Operations Operations Operations Total (2) Operations Operations Operations Total (2) % Ch. - ----------------------------------------------------------------------------------------------------------------------------------- VOLUME TOTAL BEVERAGES 25,2 33,1 12,5 70,8 25,2 32,0 16,9 74,1 -4,5% (Million UC) Soft Drink 21,4 31,9 12,0 65,3 21,0 31,0 16,3 68,3 -4,4% Mineral Water 1,4 0,5 0,5 2,4 1,4 0,4 0,3 2,1 15.3% Juices 2,4 0,2 0,1 2,6 2,9 NA 0,3 3,2 -19,3% Beer N/A 0,5 NA 0,5 NA 0,5 NA 0,5 -3,9% NET SALES 57,1 52,0 15,6 125,2 62,9 44,8 44,0 151,7 -17,4% COST OF SALES (34,9) (35,3) (11,5) (62,2) (38,5) (30,2) (29,7) (98,5) -16,5% GROSS PROFIT 22,2 16,7 4,1 43,0 24,4 14,6 14,2 53,2 -19,2% Gross Margin 38.9% 32.2% 26.1% 34.4% 38,8% 32.6% 32.3% 35.1% SELLING AND ADMINISTRATIVE EXPENSES (12,2) (14,2) (5,3) (31,7) (12,5) (14,9) (14,3) (41,6) -23,7% CORPORATE EXPENSES 0,0 0,0 0,0 (1,5) 0,0 0,0 0,0 (1,1) 37,5% OPERATING INCOME 10,0 2,5 (1,2) 9,8 12,0 (0,3) (0,1) 10,5 -7.1% - ----------------------------------------------------------------------------------------------------------------------------------- Operating Margin 17.5% 4.9% -7.9% 7.8% 19.0% -0.6% -0.2% 7.0% EBITDA (1) 14,4 7,3 3,4 23,6 17,8 4,5 4,7 25,9 -8,8% Ebitda Margin 25,2% 14,1% 21,9% 18,9% 28,3% 10,1% 10,6% 17,1% NON OPERATIONAL RESULTS FINANCIAL INCOME (Net) (0,6) (1,2) 51,1% RESULTS FROM AFFILIATED (0,1) (0,7) 82,6% AMORTIZATION OF GOODWILL (2,8) (2,6) 5,3% OTHER INCOME/(EXPENSE) (0,7) (0,1) 439,5% PRICE LEVEL RESTATEMENT (3) 10,3 2,2 359,8% OTHER (5,3) (1,6) -225,8% NON-OPERATING RESULTS 0,8 (4,1) 118,9% INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 10,6 6,4 64,0% INCOME TAXES (3,5) (4,0) -13,2% MINORITY INTEREST 0,0 (0,0) -103,4% AMORTIZATION OF NEGATIVE GOODWILL 0,0 0,0 NA - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME 7,1 2,5 189,3% Net Margin 5,7% 1,6% - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE SHARES OUTSTANDING 760,3 760,3 EARNINGS PER SHARE 0,01 0,00 EARNINGS PER ADS 0,06 0,02 189,3% - -----------------------------------------------------------------------------------------------------------------------------------
(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. Six Months Results for the period ended June 30, Chilean GAAP (in millions of constant 06/30/02 Chilean Pesos, except per share)
----------------------------------------------------------------------------------------------- 30/06/2002 30/06/2001 -------------------------------------------------------------------------------------- Chilean Brazilian Argentine Chilean Brazilian Argentine Operations Operations Operations Total (2) Operations Operations Operations Total (2) % Ch. - ----------------------------------------------------------------------------------------------------------------------------------- VOLUME TOTAL BEVERAGES 56,6 68,4 31,5 156,6 56,6 70,0 40,4 167,0 -6,3% (Million UC) Soft Drink 47,6 65,7 30,2 143,5 46,6 67,8 39,2 153,6 -6,6% Mineral Water 4,3 1,2 1,1 6,6 4,2 1,1 0,8 6,1 8.9% Juices 4,7 0,3 0,1 5,2 5,7 NA 0,5 6,2 -16,6% Beer NA 1,2 NA 1,2 NA 1,1 NA 1,1 11.7% NET SALES 87,897 76,424 31,874 196,195 94,854 73,602 75,011 243,424 -19,4% COST OF SALES (522,889) (53,089) (23,008) (128,985) (55,108) (49,389) (48,467) (152,921) -15,7% GROSS PROFIT 35.008 23.335 8.866 67.210 39.746 24.213 26.544 90.503 -25,7% Gross Margin 39.8% 32.5% 27.8% 34.3% 41,9% 32.9% 35.4% 37.2% SELLING AND ADMINISTRATIVE EXPENSES (17,568) (20.864) (9.557) (47.989) (18.469) (21.738) (21.082) (61.288) -21,7% CORPORATE EXPENSES 0 0 0 (1,694) 0 0 0 (1,632) 3,8% OPERATING INCOME 17,441 2,471 (691) 17.527 21.277 2.475 5.463 27.582 -36.5% - ----------------------------------------------------------------------------------------------------------------------------------- Operating Margin 19.8% 3.2% -2.2% 8.9% 22.4% 3.4% 7.2% 11.3% EBITDA (1) 23.539 9.295 5.756 36.897 29.366 8.947 12.030 48.711 -24,3% Ebitda Margin 26,8% 12,2% 18,1% 18,8% 31,0% 12,2% 16,0% 20,0% NON OPERATIONAL RESULTS FINANCIAL INCOME (Net) (714) (1,306) 45,3% RESULTS FROM AFFILIATED 650 (507) 228,2% AMORTIZATION OF GOODWILL (3,828) (3,659) 4,6% OTHER INCOME/(EXPENSE) (1,019) (174) 485,9% PRICE LEVEL RESTATEMENT (3) 5.213 1.510 245,2% OTHER 6.594 (816) 908,3% NON-OPERATING RESULTS 6.895 (4,951) 239,3% INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 24,423 22.631 7,9% INCOME TAXES (3,728) (5,652) -34,0% MINORITY INTEREST (1) (22) -95.4% AMORTIZATION OF NEGATIVE GOODWILL 0 0 NA - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME 20.693 16.957 22,0% Net Margin 10,5% 7,0% - ----------------------------------------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE SHARES OUTSTANDING 760,3 760,3 EARNINGS PER SHARE 27,2 22,2 EARNINGS PER ADS 163,3 133,8 22,0% - -----------------------------------------------------------------------------------------------------------------------------------
(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. Six Months Results for the period ended June 30, Chilean GAAP (in millions US$, except per share)
Exch. Rate: 688,05 ----------------------------------------------------------------------------------------------- 30/06/2002 30/06/2001 -------------------------------------------------------------------------------------- Chilean Brazilian Argentine Chilean Brazilian Argentine Operations Operations Operations Total (2) Operations Operations Operations Total (2) % Ch. - ----------------------------------------------------------------------------------------------------------------------------------- VOLUME TOTAL BEVERAGES 56,6 68,4 31,5 156,6 56,6 70,0 40,4 167,0 -6,3% (Million UC) Soft Drink 47.6 65,7 30,2 143,5 46,6 67,8 39,2 153,6 -6,6% Mineral Water 4,3 1,2 1,1 6,6 4,2 1,1 0,8 6,1 8.9% Juices 4,7 0,3 0,1 5,2 5,7 NA 0,5 6,2 -16,6% Beer N/A 1,2 NA 1,2 NA 1,1 NA 1,1 11,7% NET SALES 127,1 111,1 46,3 285,1 137,9 107,0 109,0 353,8 -19,4% COST OF SALES (76,9) (77,2) (33,4) (187,5) (80,1) (71,8) (70,4) (222,3) -15,7% GROSS PROFIT 50,9 33,9 12,9 97,7 57,8 35,2 38,6 131,5 -25,7% Gross Margin 39.8% 30.5% 27.8% 34.3% 41,9% 32.9% 35.4% 37.2% SELLING AND ADMINISTRATIVE EXPENSES (25,5) (30,3) (13,9) (69,7) (26,8) (31,6) (30,6) (89,1) -21,7% CORPORATE EXPENSES 0,0 0,0 0,0 (2,5) 0,0 0,0 0,0 (2,4) 3,8% OPERATING INCOME 25,3 3,6 (1,0) 25,5 30,9 3,6 7,9 40,1 -36,5% - ----------------------------------------------------------------------------------------------------------------------------------- Operating Margin 19.8% 3.2% -2.2% 8.9% 22.4% 3.4% 7.3% 11.3% EBITDA (1) 34,2 13,5 8,4 53,6 42,7 13,0 17,5 70,8 -24,3% Ebitda Margin 26,8% 12,2% 18,1% 18,8% 31,0% 12,2% 16,0% 20,0% NON OPERATIONAL RESULTS FINANCIAL INCOME (Net) (1,0) (1,9) 45,3% RESULTS FROM AFFILIATED 0,9 (0,7) 228,2% AMORTIZATION OF GOODWILL (5,6) (5,3) 4,6% OTHER INCOME/(EXPENSE) (1,5) (0,3) 485,9% PRICE LEVEL RESTATEMENT (3) 7,6 2,2 245,2% OTHER 9,6 (1,2) 908,3% NON-OPERATING RESULTS 10,0 (7,2) 239,3% INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST 35,5 32,9 7,9% INCOME TAXES (5,4) (8,2) -34,0% MINORITY INTEREST (0,0) (0,0) -95,4% AMORTIZATION OF NEGATIVE GOODWILL 0,0 0,0 NA - ----------------------------------------------------------------------------------------------------------------------------------- NET INCOME 30,1 24,6 22,0% Net Margin 10,5% 7,0% - ----------------------------------------------------------------------------------------------------------------------------------- WEIGHTED AVERAGE SHARES OUTSTANDING 760,3 760,3 EARNINGS PER SHARE 0,04 0,03 EARNINGS PER ADS 0,24 0,19 22,0% - -----------------------------------------------------------------------------------------------------------------------------------
(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 06/30/02 Chilean Pesos) ---------------------------------------- 30/06/2002 30/06/2001 %Ch ---------------------------------------- ASSETS Cash + Time deposits + market. Securit. 51.671 144.390 -64,2% Account receivables (net) 33.666 40.871 -17,6% Inventories 13.569 20.744 -34,6% Other current assets 15,794 27.312 -42,2% - ------------------------------------------------------------------------ Total Current Assets 114.701 233.317 -50,8% Property, plant and equipment 538.615 518.639 3,9% Depreciation (328.060) (285.689) 14,8% - ------------------------------------------------------------------------ Total Property, Plant, and Equiment 210.555 232.950 -9,6% Investment in related companies 20.419 17.590 16,1% Investment in other companies 706 495 42,6% Goodwill 112.949 114.190 -1,1% Other long term assets 200.717 83.301 141,0% - ------------------------------------------------------------------------ Total Other Assets 334.791 215.576 55,3% - ------------------------------------------------------------------------ TOTAL ASSETS 660.048 681.843 -3,2% - ------------------------------------------------------------------------ LIABILITIES & SHAREHOLDERS' EQUITY Short term bank liabilities 712 3.292 -78,4% Current portion of long term bank liabilities 4.299 3.916 9,8% Current portion of bonds payable 1.036 2.928 -64,6% Trade accounts payable and notes payable 69.186 84.358 -18,0% Other liabilities 18.036 28.322 -36,3% - ------------------------------------------------------------------------ Total Current 93.269 122.815 -24,1% Liabilities Long term bank liabilities 57.017 2.665 2039,8% Bonds payable 139.308 160.135 -13,0% Other long term liabilities 17.675 17.598 0,4% - ------------------------------------------------------------------------ Total Long Term Liabilities 214.001 180.397 18,6% Minority interest 47 47 0,6% Stockholders' Equity 352.731 378.584 -6,8% - ------------------------------------------------------------------------ TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 660.048 681.843 -3,2% - ------------------------------------------------------------------------
Financial Highlights (In million of constant 06/30/02 Chilean Pesos) ----------------------- ADDITIONS TO FIXED ASSETS 30/06/2002 30/06/2001 ----------------------- Chile 6.008 7.933 Brazil 3.416 2.533 Argentina 439 750 - ------------------------------------------------------- 9.863 11.216 DEBT RATIOS Financial Debt/Total Capitalization 0,36 0,31 Financial Debt/EBITDA L 12M 2,36 2,13 EBITDA L 12M/Interest Expense (net) L12M 6,42 6,59 - --------------------------- -------------------------- L12M Last twelve months
*As June 30, 2002, the Company's net cash position reached US$ 70 million. Total debt amounted to US$ 294 million. Total Cash amounted to US$ 364 million, which includes cash investments accounted for under Other Current Assets as well as Long Term Assets. Embotelladora Andina S.A. Results ended June 30, Local GAAP
Beverage Operations (Local Gaap) ---------------------------------------------- --------------------------------------- ----------------------------------- Accum. 6/30/2002 Accum. 6/30/2001 --------------------------------------- ----------------------------------- ------------- ------------ ------------ ------------- ------------ -------- Chile Brazil Argentina Chile Brazil Argentina (MCh$) (MR$) (MA$) (MCh$) (MR$) (MA$) TOTAL BEVERAGES VOLUME (Million UC) 56,6 68,4 31,5 56,6 70,0 40,4 Soft Drink 47,6 65,7 30,2 46,6 67,8 39,2 Mineral Water 4,3 1,2 1,1 4,2 1,1 1,1 Juices 4,7 0,3 0,1 5,7 0,0 0,2 Beer NA 1,2 NA NA 1,1 NA NET SALES SOFT DRINKS 73.867 251,0 90,2 71.866 230,6 102,6 NET SALES OTHER 13.653 18,8 1,7 16.172 13,1 2,5 NET SALES TOTAL 87.520 269,8 91,9 88.038 243,7 105,2 COST OF SALES (52.669) (180,9) (57,2) (50.341) (163,4) (65,0) GROSS PROFIT 34.851 88,9 34,7 37.696 80,4 40,2 Gross Margin 39,8% 33,0% 37,8% 42,8% 33,0% 38,2% SELLING AND ADMINISTRATIVE EXPENSES (17.376) (69,4) (29,1) (17.230) (63,7) (31,6) OPERATING INCOME 17.476 19,5 5,6 20.466 16,7 8,6 ---------------------------------------------- ------------- ------------ ------------ ------------- ------------ --------- ---------------------------------------------- ------------- ------------ ------------ ------------- ------------ --------- Operating Margin 20,0% 7,2% 6,1% 23,2% 6,8% 8,2% EBITDA (1) 25.510 31,7 12,5 26.856 28,7 16,0 Ebitda Margin 26,9% 11,8% 13,6% 30,5% 11,8% 15,2% ---------------------------------------------- ------------- ------------ ------------ ------------- ------------ --------- ---------------------------------------------- --------------------------------------- ------------------------------------ 2 Quarter 2002 2 Quarter 2001 --------------------------------------- ------------------------------------ ------------- ------------ ------------ ------------- ------------ --------- Chile Brazil Argentina Chile Brazil Argentina (MCh$) (MR$) (MA$) (MCh$) (MR$) (MA$) ------------- ------------ ------------ ------------- ------------ --------- ------------- ------------ ------------ ------------- ------------ --------- TOTAL BEVERAGES VOLUME (Million UC) 25,2 33,1 12,5 25,2 32,0 16,9 Soft Drink 21,4 31,9 12,0 21,0 31,0 16,3 Mineral Water 1,4 0,5 0,5 1,4 0,4 0,3 Juices 2,4 0,2 0,1 2,9 NA 0,3 Beer NA 0,5 NA NA 0,5 NA NET SALES SOFT DRINKS 33.256 120,9 39,6 31,958 103,4 41,0 NET SALES OTHER 6.122 8,2 0,8 7.237 6,0 1,9 NET SALES TOTAL 39.378 129,1 40,4 39.195 109,5 42,9 COST OF SALES (24.067) (81,2) (23,45) (23.177) (73,6) (27,6) GROSS PROFIT 15.311 47,9 17,0 16.018 35,9 15,3 Gross Margin 38.9% 37,1% 42,0% 40,9% 32,8% 35,7% SELLING AND ADMINISTRATIVE EXPENSES (8,426) (36,4) (16,0) (8.153) (31,3) (14,7) OPERATING INCOME 6.885 11,5 0,9 7.864 4,6 0,6 ---------------------------------------------- ------------- ------------ ------------ ------------- ------------ --------- ---------------------------------------------- ------------- ------------ ------------ ------------- ------------ --------- Operating Margin 17.5% 8.9% 2,3% 20.1% 4,2% 1,4% EBITDA (1) 9.909 17,5 4,3 11.060 10,7 4,3 Ebitda Margin 25.2% 13,6% 10,7% 28.2% 9,7% 10,0% ---------------------------------------------- ------------- ------------ ------------ ------------- ------------ ---------
(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-----