UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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
February 2007
Date of Report (Date of Earliest Event Reported)
_____________________
Embotelladora Andina S.A.
(Exact name of registrant as specified in its charter)
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 office)
_____________________
Indicate by check mark whether the registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1):
Yes No X
Indicate by check mark if the Registrant is submitting this Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7):
Yes No X
Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K 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
_____________________
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For Immediate Distribution
Contacts in Santiago, Chile Embotelladora Andina S.A. Osvaldo Garay, Chief Financial Officer Giuliana Gorrini, Head of Investor Relations (56-2) 338-0520 E-Mail: ir@koandina.com | Contacts in New York i-advize Corporate Communications, Inc. Peter Majeski/Maria Barona (212) 406-3690 E-Mail: andina@i-advize.com |
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Embotelladora Andina S.A. Announces Consolidated Results
For the Fourth Quarter and Full-Year 2006
Highlights
·
Operating Income reached US$68.0 million during the Fourth Quarter of 2006, increasing 15.1% compared to the same period of the previous year. Operating Margin was 21.7%.
·
Sales Volume amounted to 122.7 million unit cases, an increase of 5.5% during the quarter.
·
Fourth Quarter EBITDA totaled US$81.6 million, representing an increase of 11.6% compared to the Fourth Quarter of 2005. EBITDA Margin was 26.0%.
·
Consolidated Operating Income reached US$178.8 million during 2006, 19.7% higher than 2005. Operating Margin was 17.4%.
·
Consolidated Sales Volume in 2006 totaled 415.1 million unit cases, an increase of 6.6% compared to the 2005.
·
Consolidated EBITDA for 2006 amounted to US$234.3 million, an increase of 14.2%. EBITDA Margin was 22.8%.
·
Net Income for 2006 reached US$139.7 million, 30.0% higher than 2005.
(Santiago-Chile, February 6, 2007) --Embotelladora Andina S.A. (“the Company”) announced today its consolidated financial results for the Fourth Quarter and Full-Year 2006.
www.koandina.com
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINAA; ANDINAB
1
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Comments from Chief Executive Officer, Mr. Jaime Garcia R.
“We are very satisfied with and proud of the results obtained in 2006. Our goals for 2007 will be focused on increasing volumes in the existing markets where Andina operates, as well as developing the non-carbonated product segment.”
CONSOLIDATED SUMMARY
Full-Year 2006 vs. Full-Year 2005
Consolidated Sales Volume amounted to 415.1 million unit cases, an increase of 6.6%. Soft Drinks increased 6.0%, while Waters grew 10.3% and Juices 16.1%. These increases are a result of the higher consumption in Andina’s main products (Soft Drinks) in the three countries where we operate, in addition to the consolidation of growth opportunities in (Waters, Juices and Beer), which grew 13.7%.
Net Sales amounted to US$1,026.9 million, 14.8% higher than 2005. This was a result of both higher volumes and greater average income.
Despite cost pressures, particularly with regards to sugar in Brazil, effective negotiations, more favorable resin prices and the 7.2% revaluation of the Brazilian Real, Andina’s Cost of Sales per unit case increased 4.2% compared to 2005.
SG&A increased 13.1% per unit case mainly as a result of increased freight fees due to increasing oil prices and salary pressures.
Consolidated Operating Income amounted to US$178.8 million, a 19.7% increase compared to 2005. Operating Margin was 17.4%, an increase of 70 basis points.
Finally, Consolidated EBITDA amounted to US$234.3 million, an increase of 14.2%. EBITDA Margin was 22.8%, an decrease of 10 basis points.
Fourth Quarter 2006 vs. Fourth Quarter 2005
Consolidated Sales Volume for the Fourth Quarter 2006 reached 122.7 million unit cases, a 5.5% increase compared to the same period of the previous year, Soft Drinks grew 5.4%, Waters, Juices and Beer grew 7.5%.
Net Sales amounted to US$313.4 million, representing a 12.9% improvement compared to the Fourth Quarter of 2005, mainly due to increased volumes and a 7.0% increase in average income.
Cost of Sales per unit case increased 4.6%, mainly due to the increased cost of sugar in Brazil, partially offset by the lower price of resin and the reevaluation of the Brazilian Real.
www.koandina.com
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINAA; ANDINAB
2
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SG&A increased 10.1% per unit case, mainly as a result of increased freight fees due to higher oil prices, salary pressures and the revaluation of the Brazilian Real.
Consolidated Operating Income amounted to US$68.0 million, a 15.1% increase compared to the Fourth Quarter of 2005. Operating Margin was 21.7%, an increase of 40 basis points.
Finally, Consolidated EBITDA amounted to US$81.6 million, an 11.6% improvement compared to the same period of the previous year. EBITDA Margin was 26.0%, representing a decrease of 30 points compared to the Fourth Quarter of 2005.
EBITDA AS OF DECEMBER 31, 2006 (US$234.3)
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SUMMARY BY COUNTRY
![[f6kfebruary20072010.gif]](https://capedge.com/proxy/6-K/0000893750-07-000073/f6kfebruary20072010.gif){kind=small}
Chile
Full-Year 2006 vs. Full-Year 2005
During 2006, Sales Volume amounted to 143.7 million unit cases, growth of 6.1% compared to the figure reported in 2005. This increase was a result of increased Soft Drink volumes (+4.7%), in addition to the significant contribution of the Waters and Juices segment (+14.8% and +11.3%, respectively). In Chile, besides the significant increase of non-carbonated products, theLight product segment increased 16%, representing nearly 14% of the total product portfolio.
Net Sales amounted to US$412.8 million, a 3.7% improvement compared to the previous year, a result of the previously mentioned increase in volumes, partially offset by lower average income.
Cost of Sales per unit case decreased 2.9% as a result of effective negotiations regarding sugar supply agreements and lower resin prices. Additionally, SG&A decreased 0.6% per unit case.
www.koandina.com
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINAA; ANDINAB
3
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Operating Income was 3.7% higher than the figure reported for 2005, amounting to US$101.8 million. Operating Margin was 24.7%, remaining constant with respect to the previous year.
EBITDA amounted to US$126.2 million, 1.9% higher than the EBITDA figure recorded in 2005. EBITDA Margin was 30.6%.
Fourth Quarter 2006 vs. Fourth Quarter 2005
During the quarter, Andina launched tropical fruit-flavoredFanta Exótica (Pet 500 cc and 350 cc Can formats), and a line of waters containing vitamins and minerals,Dasani Balance Durazno (Peach) andActive Limón (Lemon) (500 cc Pet format).
During the Fourth Quarter of 2006, Sales Volume amounted to 43.2 million unit cases, 3.7% growth compared to the same period of the previous year. Soft Drinks increased 3.3%, Waters increased 0.3% and Juices increased 13.0%
Net Sales amounted to US$125.9 million, reflecting growth of 4.4%. This increase resulted from higher volumes and average prices.
Despite higher freight fees, Cost of Sales per unit case and SG&A remained stable when compared to the Fourth Quarter of 2005.
Operating Income amounted to US$36.7 million, a 5.0% improvement compared to the Fourth Quarter of 2005. Operating Margin was 29.1%, an increase of 20 basis points.
EBITDA amounted to US$42.6 million, a 3.9% increase regarding the EBITDA figure recorded during the same period of the previous year. EBITDA Margin was 33.9%, a decrease of 10 basis points
![[f6kfebruary20072014.gif]](https://capedge.com/proxy/6-K/0000893750-07-000073/f6kfebruary20072014.gif){kind=small}
Brazil
Full-Year 2006 vs. Full-Year 2005
Sales Volume amounted to 162.6 million unit cases. Of this, 95.6% was concentrated in Soft Drinks, representing 5.7% growth for 2006.
Net Sales reached US$411.2 million, increasing 31.9% compared to the previous year. This significant increase was a result of volume growth, price adjustments and the favorable exchange rate upon the translation of figures.
Cost of Sales per unit case increased 17.3% as a result of increased sugar prices, partially offset by resin prices and the translation of figures. SG&A increased 25.7% per unit case due to increased freight fees and greater interdeposit freights, a result of higher volumes. Both factors were offset by a 24.8% increase in average income,
www.koandina.com
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINAA; ANDINAB
4
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leading to a 67.0% increase in Operating Income compared to the same period of the previous year. Operating Margin was 16.0%, an improvement of 340 basis points.
EBITDA amounted to US$83.9 million, an increase of 48.3%, with an EBITDA Margin of 20.4%, increasing 230 basis points compared to the previous period.
Fourth Quarter 2006 vs. Fourth Quarter 2005
Sales Volume for the Fourth Quarter of 2006 amounted to 46.4 million unit cases, representing a 2.6% increase compared to the Fourth Quarter of 2005.
Net Sales reached US$122.7 million, representing a 24.0% increase. This is explained by price adjustments and exchange rates, which benefited the translation of figures.
Cost of Sales per unit case grew 14.5% explained by the effect of figure conversion, (which has a negative impact on costs), as well as the previously explained reasons.
Operating Income reached US$26.5 million, an improvement of 44.3%, while Operating Margin was 21.6%, an improvement of 310 basis points.
Finally, EBITDA amounted to US$31.1 million, a 37.0% improvement compared to Fourth Quarter of 2005. EBITDA Margin was 25.4%, an increase of 240 basis points compared to the previous period.
![[f6kfebruary20072018.gif]](https://capedge.com/proxy/6-K/0000893750-07-000073/f6kfebruary20072018.gif){kind=small}
Argentina
Full-Year 2006 vs. Full-Year 2005
Sales Volume reached 108.9 million unit cases, an 8.8% improvement compared to the Sales Volume reported in 2005 TheLight (diet) segment has continued expanding, posting close to 21.5% growth, and representing over 6% of the total product portfolio.
Net Sales reached US$210.3 million, representing an increase of 8.6%. This increase is explained by higher volumes and constant prices, partially offset by the devaluation of the Argentine peso (4.9% on average).
Cost of Sales per unit case decreased 4.5%, also due to the effect of figure conversion. SG&A increased 13.1% per unit case mainly due to higher labor and freight costs.
Operating Income amounted to US$22.5 million, a 7.4% increase. Operating Margin was 10.7%, 10 basis points lower than 2005.
www.koandina.com
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINAA; ANDINAB
5
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EBITDA reached US$35.3 million, an increase of 4.6% compared to last year. EBITDA Margin decreased 60 basis points amounting to 16.8%.
Fourth Quarter 2006 vs. Fourth Quarter 2005
Sales Volume for the Fourth Quarter of 2006 increased 12.7% reaching 33.0 million unit cases.
Net Sales reached US$66.0 million, representing an increase of 9.4% compared to the Fourth Quarter of 2005. This is explained by higher volumes along with a decrease in average income, partially offset by the effect of the devaluation of the Argentine Peso (averaging 4.8% for the period).
Cost of Sales per unit case decreased 5.5%, mainly explained by the fluctuations of the exchange rate upon the translation of figures, as well as lower resin prices. SG&A per unit case increased 8.0% with regards to the Fourth Quarter of the previous year, due to the previously-mentioned increase in labor costs.
Operating Income amounted to US$ 8.6 million, a 1.5% increase. Operating Margin was 13.0%, 100 basis points lower than the Fourth Quarter of 2005.
Finally, EBITDA reached US$11.6 million, an increase of 3.3%. EBITDA Margin was 17.5% a decrease of 230 basis points compared to the Fourth Quarter of 2005.
NON-OPERATING RESULTS
Full-Year 2006 vs. Full-Year 2005
Non-Operating Results totaled a loss of (US$13.6) million, which compares favorably to a higher accumulated loss of (US$25.6) million recorded during 2005. The negative Non-Operating Result for the period is mainly the reflection of goodwill amortization (US$12.2 million). However, it is necessary to point out the lower financial income resulting from decreased earnings from Cross Currency Swaps, and one-time earnings resulting from the sale of bonds during 2005. This decrease in financial income was exceptionally offset by earnings obtained due to the exchange rate difference.
Finally, Net Income amounted to US$139.7 million, an increase of 30.0% compared to the Net Income reported during the 2005. Net Margin increased 160 basis points amounting to 13.6%
ANALYSIS OF THE BALANCE SHEET
As of December 31, 2006, the Company’s financial assets amounted to US$310.9 million. These represent cash, investments in mutual funds, deposits, structured notes, corporate bonds and sovereign bonds. 83.7% of the total financial investments are U.S. Dollar-denominated, 7.2% are in Chilean Pesos, 7.3% in Brazilian Reals, and 1.7% in Argentine Pesos. Nevertheless, through “Cross-Currency Swap” agreements executed in July and August 2003 and April 2004, part of the portfolio has been converted to Chilean Pesos (UF – Chilean Inflation Indexed Currency), thereby decreasing the amount denominated in U.S. Dollars to 8%.
www.koandina.com
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINAA; ANDINAB
6
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On the other hand, the Company’s total debt was US$205.4 million, with an average annual rate of 7.07% on U.S. Dollar debt, and an average real annual rate of 6.40% on Chilean Peso-denominated debt. The U.S. Dollar-denominated debt represents 17.9% of total debt.
As a result, the Company holds a positive net cash position of US$105.5 million.
This release may contain forward-looking statements reflecting Embotelladora Andina SA’s good faith expectations and are based upon currently available data; however, actual results are subject to numerous uncertainties, many of which are beyond the control of the Company and any one or more of which could materially impact actual performance. Among the factors that can cause performance to differ materially are: political and economic conditions on consumer spending, pricing pressure resulting from competitive discounting by other bottlers, climatic conditions in the Southern Cone, and other risk factors applicable from time to time and listed in Andina’s periodic reports filed with relevant regulatory institutions.
www.koandina.com
NYSE: AKO/A; AKO/B
BOLSA DE COMERCIO DE SANTIAGO: ANDINAA; ANDINAB
7
Embotelladora Andina S.A.
Main Indicators
INDICATORS | Unit | dic-06 | dic-05 | Dec 06 vs Dec 05 |
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LIQUIDITY |
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Current Ratio | Times | 1.30 | 1.30 | 0.00 |
Acid Tests | Times | 1.12 | 1.16 | -0.04 |
Working Capital | MCh$ | 22,185 | 36,889 | -14,704 |
ACTIVITY |
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Investments | MCh$ | 37,004 | 27,970 | 9,034 |
Inventory turnover | Times | 15.42 | 14.15 | 1.26 |
Days of inventory on hand | Days | 23.35 | 25.44 | -2.09 |
INDEBTEDNESS |
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Debt to equity ratio | % | 86.94% | 95.97% | -9.02% |
Short-term liabilities to total liabilities | % | 52.86% | 48.43% | 4.43% |
Long-term liabilities to total liabilities | % | 47.14% | 51.57% | -4.43% |
Interest charges coverage ratio | Times | 23.50 | 18.68 | 4.82 |
PROFITABILITY |
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Return over equity | % | 27.10% | 19.67% | 7.43% |
Return over total assets | % | 14.15% | 9.95% | 4.20% |
Return over operating assets | % | 30.72% | 21.25% | 9.47% |
Operating income | MCh$ | 95,196 | 79,544 | 15,652 |
Operating margin | % | 17.41% | 16.71% | 0.70% |
EBITDA (1) | MCh$ | 127,916 | 105,669 | 22,247 |
EBITDA margin | % | 23.40% | 22.20% | 1.20% |
Dividends payout ratio - Serie A shares | % | 6.61% | 7.76% | -1.15% |
Dividends payout ratio - Serie B shares | % | 6.72% | 8.04% | -1.32% |
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EBITDA (1) | Earnings before income taxes, interests, depreciation, amortization and extraordinary items. | |||
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8
Embotelladora Andina S.A.
Fourth Quarter Results for the period ended December 31, Chilean GAAP
(In millions of constant 12/31/06 Chilean Pesos, except per share)
| 31/12/2006 | 31/12/2005 | % Ch. | ||||||
| Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | |
VOLUME TOTAL BEVERAGES (Million UC) | 43.2 | 46.4 | 33.0 | 122.7 | 41.7 | 45.3 | 29.3 | 116.3 | 5.5% |
Soft Drink | 35.7 | 44.2 | 32.6 | 112.5 | 34.6 | 43.3 | 28.9 | 106.8 | 5.4% |
Mineral Water | 4.1 | 0.4 | 0.3 | 4.8 | 4.1 | 0.5 | 0.4 | 5.0 | -4.0% |
Juices | 3.4 | 0.7 | 0.1 | 4.2 | 3.0 | 0.3 | 0.0 | 3.4 | 24.2% |
Beer | NA | 1.2 | NA | 1.2 | NA | 1.1 | NA | 1.1 | 8.3% |
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NET SALES | 67,038 | 65,345 | 35,135 | 166,852 | 64,184 | 52,697 | 32,130 | 147,731 | 12.9% |
COST OF SALES | (35,648) | (34,731) | (21,373) | (91,086) | (34,170) | (29,567) | (20,075) | (82,533) | 10.4% |
GROSS PROFIT | 31,390 | 30,614 | 13,762 | 75,766 | 30,014 | 23,130 | 12,055 | 65,198 | 16.2% |
Gross Margin | 46.8% | 46.8% | 39.2% | 45.4% | 46.8% | 43.9% | 37.5% | 44.1% |
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SELLING AND ADMINISTRATIVE EXPENSES | (11,877) | (16,510) | (9,182) | (37,569) | (11,438) | (13,359) | (7,541) | (32,338) | 16.2% |
CORPORATE EXPENSES | 0 | 0 | 0 | (1,981) | 0 | 0 | 0 | (1,395) | 42.0% |
OPERATING INCOME | 19,514 | 14,103 | 4,580 | 36,216 | 18,576 | 9,771 | 4,513 | 31,465 | 15.1% |
Operating Margin | 29.1% | 21.6% | 13.0% | 21.7% | 28.9% | 18.5% | 14.0% | 21.3% |
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EBITDA (1) | 22,699 | 16,571 | 6,163 | 43,452 | 21,841 | 12,096 | 6,376 | 38,918 | 11.6% |
Ebitda Margin | 33.9% | 25.4% | 17.5% | 26.0% | 34.0% | 23.0% | 19.8% | 26.3% |
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NON OPERATIONAL RESULTS |
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FINANCIAL EXPENSE/ |
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| 1,874 |
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| 2,886 | -35.1% |
RESULTS FROM AFFILIATED |
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| (21) |
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| 241 | -108.6% |
AMORTIZATION OF GOODWILL |
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| (1,626) |
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| (1,582) | 2.8% |
OTHER INCOME/(EXPENSE) |
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| (1,131) |
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| 2,046 | -155.2% |
PRICE LEVEL RESTATEMENT (3) |
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| 168 |
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| (6,550) | 102.6% |
NON-OPERATING RESULTS |
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| (735) |
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| (2,959) | -75.2% |
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INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST |
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| 35,481 |
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| 28,506 | 24.5% |
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INCOME TAXES |
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| (5,278) |
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| (3,602) | 46.5% |
MINORITY INTEREST |
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| 8 |
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| 12 | NA |
AMORTIZATION OF NEGATIVE GOODWILL |
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| 0 |
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| 0 | NA |
NET INCOME |
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| 30,211 |
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| 24,916 | 21.2% |
Net Margin |
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| 18.1% |
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| 16.9% |
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WEIGHTED AVERAGE SHARES OUTSTANDING |
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| 760.3 |
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| 760.3 |
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EARNINGS PER SHARE |
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| 39.7 |
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| 32.8 |
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EARNINGS PER ADS |
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| 238.4 |
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| 196.6 | 21.2% |
(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.
9
Embotelladora Andina S.A.
Fourth Quarter Results for the period ended December 31, Chilean GAAP
(In millions US$, except per share)
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| Exch. Rate : 532.39 |
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| 31/12/2006 | 31/12/2005 | % Ch. | ||||||
| Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | |
VOLUME TOTAL BEVERAGES (Million UC) | 43.2 | 46.4 | 33.0 | 122.7 | 41.7 | 45.3 | 29.3 | 116.3 | 5.5% |
Soft Drink | 35.7 | 44.2 | 32.6 | 112.5 | 34.6 | 43.3 | 28.9 | 106.8 | 5.4% |
Mineral Water | 4.1 | 0.4 | 0.3 | 4.8 | 4.1 | 0.5 | 0.4 | 5.0 | -4.0% |
Juices | 3.4 | 0.7 | 0.1 | 4.2 | 3.0 | 0.3 | 0.0 | 3.4 | 24.2% |
Beer | NA | 1.2 | NA | 1.2 | NA | 1.1 | NA | 1.1 | 8.3% |
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NET SALES | 125.9 | 122.7 | 66.0 | 313.4 | 120.6 | 99.0 | 60.4 | 277.5 | 12.9% |
COST OF SALES | (67.0) | (65.2) | (40.1) | (171.1) | (64.2) | (55.5) | (37.7) | (155.0) | 10.4% |
GROSS PROFIT | 59.0 | 57.5 | 25.8 | 142.3 | 56.4 | 43.4 | 22.6 | 122.5 | 16.2% |
Gross Margin | 46.8% | 46.8% | 39.2% | 45.4% | 46.8% | 43.9% | 37.5% | 44.1% |
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SELLING AND ADMINISTRATIVE EXPENSES | (22.3) | (31.0) | (17.2) | (70.6) | (21.5) | (25.1) | (14.2) | (60.7) | 16.2% |
CORPORATE EXPENSES | 0.0 | 0.0 | 0.0 | (3.7) | 0.0 | 0.0 | 0.0 | (2.6) | 42.0% |
OPERATING INCOME | 36.7 | 26.5 | 8.6 | 68.0 | 34.9 | 18.4 | 8.5 | 59.1 | 15.1% |
Operating Margin | 29.1% | 21.6% | 13.0% | 21.7% | 28.9% | 18.5% | 14.0% | 21.3% |
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EBITDA (1) | 42.6 | 31.1 | 11.6 | 81.6 | 41.0 | 22.7 | 12.0 | 73.1 | 11.6% |
Ebitda Margin | 33.9% | 25.4% | 17.5% | 26.0% | 34.0% | 23.0% | 19.8% | 26.3% |
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NON OPERATIONAL RESULTS |
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FINANCIAL EXPENSE/ |
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| 3.5 |
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| 5.4 | -35.1% |
RESULTS FROM AFFILIATED |
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| (0.0) |
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| 0.5 | -108.6% |
AMORTIZATION OF GOODWILL |
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| (3.1) |
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| (3.0) | 2.8% |
OTHER INCOME/(EXPENSE) |
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| (2.1) |
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| 3.8 | -155.2% |
PRICE LEVEL RESTATEMENT (3) |
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| 0.3 |
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| (12.3) | 102.6% |
NON-OPERATING RESULTS |
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| (1.4) |
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| (5.6) | -75.2% |
INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST |
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| 66.6 |
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| 53.5 | 24.5% |
INCOME TAXES |
|
|
| (9.9) |
|
|
| (6.8) | 46.5% |
MINORITY INTEREST |
|
|
| 0.0 |
|
|
| 0.0 | NA |
AMORTIZATION OF NEGATIVE GOODWILL |
|
|
| 0.0 |
|
|
| 0.0 | NA |
NET INCOME |
|
|
| 56.7 |
|
|
| 46.8 | 21.2% |
Net Margin |
|
|
| 18.1% |
|
|
| 16.9% |
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
| 760.3 |
|
|
| 760.3 |
|
EARNINGS PER SHARE |
|
|
| 0.07 |
|
|
| 0.06 |
|
EARNINGS PER ADS |
|
|
| 0.45 |
|
|
| 0.37 | 21.2% |
(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.
10
Embotelladora Andina S.A.
Twelve Months Results for the period ended December 31, Chilean GAAP
(In millions of constant 12/31/06 Chilean Pesos, except per share)
| 31/12/2006 | 31/12/2005 | % Ch. | ||||||
| Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | |
VOLUME TOTAL BEVERAGES (Million UC) | 143.7 | 162.6 | 108.9 | 415.1 | 135.5 | 153.7 | 100.1 | 389.3 | 6.6% |
Soft Drink | 119.0 | 155.4 | 107.5 | 381.9 | 113.6 | 147.7 | 98.8 | 360.1 | 6.0% |
Mineral Water | 12.7 | 1.8 | 1.2 | 15.7 | 11.1 | 2.0 | 1.2 | 14.3 | 10.3% |
Juices | 12.0 | 1.8 | 0.2 | 14.0 | 10.8 | 1.1 | 0.2 | 12.1 | 16.1% |
Beer | NA | 3.5 | NA | 3.5 | NA | 2.9 | NA | 2.9 | 20.7% |
NET SALES | 219,791 | 218,904 | 111,951 | 546,732 | 212,050 | 165,923 | 103,057 | 476,072 | 14.8% |
COST OF SALES | (122,281) | (122,977) | (70,733) | (312,077) | (118,675) | (99,130) | (68,136) | (280,982) | 11.1% |
GROSS PROFIT | 97,510 | 95,927 | 41,218 | 234,655 | 93,376 | 66,793 | 34,921 | 195,090 | 20.3% |
Gross Margin | 44.4% | 43.8% | 36.8% | 42.9% | 44.0% | 40.3% | 33.9% | 41.0% |
|
SELLING AND ADMINISTRATIVE EXPENSES | (43,301) | (60,997) | (29,234) | (133,533) | (41,083) | (45,883) | (23,758) | (110,723) | 20.6% |
CORPORATE EXPENSES | 0 | 0 | 0 | (5,926) | 0 | 0 | 0 | (4,822) | 22.9% |
OPERATING INCOME | 54,208 | 34,930 | 11,984 | 95,196 | 52,293 | 20,910 | 11,163 | 79,544 | 19.7% |
Operating Margin | 24.7% | 16.0% | 10.7% | 17.4% | 24.7% | 12.6% | 10.8% | 16.7% |
|
EBITDA (1) | 67,210 | 44,665 | 18,801 | 124,750 | 65,930 | 30,108 | 17,976 | 109,191 | 14.2% |
Ebitda Margin | 30.6% | 20.4% | 16.8% | 22.8% | 31.1% | 18.1% | 17.4% | 22.9% |
|
NON OPERATIONAL RESULTS |
|
|
|
|
|
|
|
|
|
FINANCIAL EXPENSE/INCOME (Net) |
|
|
| (2,841) |
|
|
| 7,565 | -137.5% |
RESULTS FROM AFFILIATED |
|
|
| 351 |
|
|
| 786 | -55.4% |
AMORTIZATION OF GOODWILL |
|
|
| (6,502) |
|
|
| (6,360) | 2.2% |
OTHER INCOME/(EXPENSE) |
|
|
| (2,093) |
|
|
| (3,404) | -38.5% |
PRICE LEVEL RESTATEMENT (3) |
|
|
| 3,840 |
|
|
| (12,199) | 131.5% |
NON-OPERATING RESULTS |
|
|
| (7,246) |
|
|
| (13,612) | -46.8% |
INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST |
|
|
| 87,950 |
|
|
| 65,932 | 33.4% |
INCOME TAXES |
|
|
| (13,566) |
|
|
| (8,729) | 55.4% |
MINORITY INTEREST |
|
|
| (30) |
|
|
| 12 | NA |
AMORTIZATION OF NEGATIVE GOODWILL |
|
|
| 0 |
|
|
| 0 | NA |
NET INCOME |
|
|
| 74,355 |
|
|
| 57,216 | 30.0% |
Net Margin |
|
|
| 13.6% |
|
|
| 12.0% |
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
| 760.3 |
|
|
| 760.3 |
|
EARNINGS PER SHARE |
|
|
| 97.8 |
|
|
| 75.3 |
|
EARNINGS PER ADS |
|
|
| 586.8 |
|
|
| 451.5 | 30.0% |
(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.
11
Embotelladora Andina S.A.
Twelve Months Results for the period ended December 31, Chilean GAAP
(In millions US$, except per share)
|
|
|
|
|
| Exch. Rate : $ 532.39 |
|
| |
|
|
|
|
|
|
|
|
|
|
| 31/12/2006 | 31/12/2005 | % Ch. | ||||||
| Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | |
VOLUME TOTAL BEVERAGES (Million UC) | 143.7 | 162.6 | 108.9 | 415.1 | 135.5 | 153.7 | 100.1 | 389.3 | 6.6% |
Soft Drink | 119.0 | 155.4 | 107.5 | 381.9 | 113.6 | 147.7 | 98.8 | 360.1 | 6.0% |
Mineral Water | 12.7 | 1.8 | 1.2 | 15.7 | 11.1 | 2.0 | 1.2 | 14.3 | 10.3% |
Juices | 12.0 | 1.8 | 0.2 | 14.0 | 10.8 | 1.1 | 0.2 | 12.1 | 16.1% |
Beer | NA | 3.5 | NA | 3.5 | NA | 2.9 | NA | 2.9 | 20.7% |
NET SALES | 412.8 | 411.2 | 210.3 | 1,026.9 | 398.3 | 311.7 | 193.6 | 894.2 | 14.8% |
COST OF SALES | (229.7) | (231.0) | (132.9) | (586.2) | (222.9) | (186.2) | (128.0) | (527.8) | 11.1% |
GROSS PROFIT | 183.2 | 180.2 | 77.4 | 440.8 | 175.4 | 125.5 | 65.6 | 366.4 | 20.3% |
Gross Margin | 44.4% | 43.8% | 36.8% | 42.9% | 44.0% | 40.3% | 33.9% | 41.0% |
|
SELLING AND ADMINISTRATIVE EXPENSES | (81.3) | (114.6) | (54.9) | (250.8) | (77.2) | (86.2) | (44.6) | (208.0) | 20.6% |
CORPORATE EXPENSES | 0.0 | 0.0 | 0.0 | (11.1) | 0.0 | 0.0 | 0.0 | (9.1) | 22.9% |
OPERATING INCOME | 101.8 | 65.6 | 22.5 | 178.8 | 98.2 | 39.3 | 21.0 | 149.4 | 19.7% |
Operating Margin | 24.7% | 16.0% | 10.7% | 17.4% | 24.7% | 12.6% | 10.8% | 16.7% |
|
EBITDA (1) | 126.2 | 83.9 | 35.3 | 234.3 | 123.8 | 56.6 | 33.8 | 205.1 | 14.2% |
Ebitda Margin | 30.6% | 20.4% | 16.8% | 22.8% | 31.1% | 18.1% | 17.4% | 22.9% |
|
NON OPERATIONAL RESULTS |
|
|
|
|
|
|
|
|
|
FINANCIAL EXPENSE/ |
|
|
| (5.3) |
|
|
| 14.2 | -137.5% |
RESULTS FROM AFFILIATED |
|
|
| 0.7 |
|
|
| 1.5 | -55.4% |
AMORTIZATION OF GOODWILL |
|
|
| (12.2) |
|
|
| (11.9) | 2.2% |
OTHER INCOME/(EXPENSE) |
|
|
| (3.9) |
|
|
| (6.4) | -38.5% |
PRICE LEVEL RESTATEMENT (3) |
|
|
| 7.2 |
|
|
| (22.9) | 131.5% |
NON-OPERATING RESULTS |
|
|
| (13.6) |
|
|
| (25.6) | -46.8% |
INCOME BEFORE INCOME TAXES; AMORTIZATION OF NEGATIVE GOODWILL AND MINORITY INTEREST |
|
|
| 165.2 |
|
|
| 123.8 | 33.4% |
INCOME TAXES |
|
|
| (25.5) |
|
|
| (16.4) | 55.4% |
MINORITY INTEREST |
|
|
| (0.1) |
|
|
| 0.0 | NA |
AMORTIZATION OF NEGATIVE GOODWILL |
|
|
| 0.0 |
|
|
| 0.0 | NA |
NET INCOME |
|
|
| 139.7 |
|
|
| 107.5 | 30.0% |
Net Margin |
|
|
| 13.6% |
|
|
| 12.0% |
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
| 760.3 |
|
|
| 760.3 |
|
EARNINGS PER SHARE |
|
|
| 0.18 |
|
|
| 0.14 |
|
EARNINGS PER ADS |
|
|
| 1.10 |
|
|
| 0.85 | 30.0% |
(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.
12
Embotelladora Andina S.A.
Consolidated Balance Sheet
(In million of constant 12/31/06 Chilean Pesos)
ASSETS | 31/12/2006 | 31/12/2005 | %Ch |
|
|
|
|
Cash + Time deposits + market. Securit. | 49,559 | 55,253 | -10.3% |
Account receivables (net) | 63,145 | 72,200 | -12.5% |
Inventories | 22,691 | 17,791 | 27.5% |
Other current assets | 28,730 | 20,174 | 42.4% |
Total Current Assets | 164,125 | 165,418 | -0.8% |
| |||
Property, plant and equipment | 524,427 | 505,494 | 3.7% |
Depreciation | (382,384) | (363,262) | 5.3% |
Total Property, Plant, and Equipment | 142,042 | 142,231 | -0.1% |
| |||
Investment in related companies | 22,467 | 21,835 | 2.9% |
Investment in other companies | 56 | 56 | 0.4% |
Goodwill | 67,885 | 72,892 | -6.9% |
Other long term assets | 117,025 | 134,664 | -13.1% |
Total Other Assets | 207,432 | 229,447 | -9.6% |
| |||
TOTAL ASSETS | 513,599 | 537,097 | -4.4% |
LIABILITIES & SHAREHOLDERS’ EQUITY | 31/12/2006 | 31/12/2005 | %Ch |
|
|
|
|
Short term bank liabilities | 2,490 | 28,522 | -91.3% |
Current portion of long term bank liabilities | 439 | 494 | -11.2% |
Current portion of bonds payable | 29,972 | 13,972 | 114.5% |
Trade accounts payable and notes payable | 61,570 | 54,125 | 13.8% |
Other liabilities | 31,796 | 30,269 | 5.0% |
Total Current Liabilities | 126,268 | 127,382 | -0.9% |
| |||
Long term bank liabilities | 418 | 464 | -9.9% |
Bonds payable | 76,025 | 103,940 | -26.9% |
Other long term liabilities | 34,984 | 30,096 | 16.2% |
Total Long Term Liabilities | 111,427 | 134,500 | -17.2% |
| |||
Minority interest | 1,171 | 1,141 | 2.6% |
| |||
Stockholders’ Equity | 274,733 | 274,074 | 0.2% |
| |||
TOTAL LIABILITIES & SHAREHOLDERS’ EQUITY | 513,599 | 537,097 | -4.4% |
Financial Highlights
(In million of constant 12/31/06 Chilean Pesos)
ADDITIONS TO FIXED ASSETS | 31/12/2006 | 31/12/2005 |
|
|
|
Chile | 16,640 | 15,136 |
Brazil | 14,615 | 7,698 |
Argentina | 5,749 | 5,136 |
| 37,004 | 27,970 |
DEBT RATIOS | 31/12/2006 | 31/12/2005 |
|
|
|
Financial Debt / Total Capitalization | 0.28 | 0.35 |
Financial Debt / EBITDA L12M | 0.88 | 1.35 |
EBITDA L12M / Interest Expense (net) L12M | 8.86 | 7.04 |
L12M: Last twelve months |
* As December 31, 2006, the company registered a positive net cash position of US$ 106 million. Total debt amounted to US$ 205 million. Total Cash amounted to US$ 311 million, which includes cash investments accounted for under Other Current Assets as well as Long Term Assets.
13
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
Name: Osvaldo Garay
Title: Chief Financial Officer
Santiago, February 22, 2007
14