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
March 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)
Avda. El Golf 40, Piso 4
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____
EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
Consolidated financial statements
March 31, 2007
(Translation of original in Spanish)
CONTENTS
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
Ch$
-
Chilean pesos
ThCh$
-
Thousands of Chilean pesos
US$
-
United States dollars
ThUS$
-
Thousands of United States dollars
R$
-
Brazilian Reais
ThR$
-
Thousands of Brazilian Reais
A$
-
Argentine pesos
ThA$
-
Thousands of Argentine pesos
UF
-
Unidades de Fomento (Chilean government inflation-indexed monetary units)
€
-
Euros
Th€
-
Thousands of Euros
EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
| For the periods ended | |
|
| March 31, | |
|
| 2007 | 2006 |
|
| ThCh$ | ThCh$ |
TOTAL CURRENT ASSETS |
| 170,480,549 | 188,774,520 |
Cash |
| 18,491,813 | 15,447,831 |
Time deposits |
| 3,586,587 | 66,396,379 |
Marketable securities (net) |
| 46,694,827 | 17,942,467 |
Trade accounts receivable (net) |
| 28,754,424 | 22,831,259 |
Notes receivable (net) |
| 8,884,596 | 7,397,235 |
Other receivables (net) |
| 9,997,607 | 20,085,069 |
Notes and accounts receivable from related companies |
| 1,442,763 | 1,595,715 |
Inventories (net) |
| 22,293,082 | 18,054,830 |
Recoverable Taxes |
| 8,979,258 | 8,175,277 |
Prepaid expenses |
| 1,800,498 | 2,252,350 |
Deferred Income taxes |
| 362,014 | 0 |
Other current assets |
| 19,193,080 | 8,596,108 |
TOTAL PROPERTY, PLANT & EQUIPMENT |
| 144,985,245 | 143,479,373 |
Land |
| 16,370,084 | 13,097,006 |
Buildings & improvements |
| 86,692,649 | 81,119,523 |
Machinery and equipment |
| 218,190,389 | 215,330,889 |
Other property, plant & equipment |
| 213,365,152 | 206,498,563 |
Technical reappraisal of property, plant & equipment |
| 2,060,313 | 2,062,160 |
Depreciation |
| (391,693,342) | (374,628,768) |
TOTAL OTHER ASSETS |
| 204,248,151 | 225,021,757 |
Investments in related companies |
| 21,430,025 | 21,203,861 |
Investments in other companies |
| 56,201 | 56,268 |
Goodwill |
| 67,087,138 | 73,848,437 |
Long-term receivables |
| 38,603 | 92,231 |
Long-term notes and accounts receivable from related companies |
| 36,176 | 34,831 |
Long-term Deferred Income Taxes |
| 0 | 356,220 |
Intangibles |
| 430,378 | 431,318 |
Amortization |
| (264,635) | (249,762) |
Others |
| 115,434,265 | 129,248,353 |
TOTAL ASSETS |
| 519,713,945 | 557,275,650 |
The accompanying Notes 1 to 41 are an integral part of these consolidated financial statements.
2
| For the periods ended | |
| March 31 | |
| 2007 | 2006 |
| ThCh$ | ThCh$ |
TOTAL CURRENT LIABILITIES | 107,342,239 | 112,184,235 |
Short-term bank liabilities | 0 | 29,535,241 |
Current portion of long-term bank liabilities | 452,092 | 508,077 |
Current portion of bonds payable | 31,241,831 | 14,213,374 |
Dividends payable | 215,700 | 221,385 |
Accounts payable | 36,332,092 | 36,329,785 |
Other creditors | 4,929,630 | 3,522,478 |
Notes and accounts payable to related companies | 8,774,015 | 6,416,374 |
Provisions | 3,076,382 | 517,669 |
Withholdings | 11,952,743 | 12,033,495 |
Income taxes payable | 5,739,289 | 4,473,933 |
Unearned income | 544,034 | 507,231 |
Deferred income taxes | 0 | 625,853 |
Other current liabilities | 4,084,431 | 3,279,340 |
TOTAL LONG-TERM LIABILITIES | 111,921,695 | 143,557,541 |
Long-term bank liabilities | 329,516 | 405,626 |
Bonds payable | 76,199,925 | 105,788,118 |
Other creditors | 142,163 | 181,186 |
Long-term notes and accounts payable to related companies | 3,457,140 | 3,838,273 |
Provisions | 17,523,574 | 24,485,482 |
Deferred Income Taxes | 3,939,240 | 0 |
Other long-term liabilities | 10,330,137 | 8,858,856 |
MINORITY INTEREST | 1,227,819 | 1,217,780 |
TOTAL SHAREHOLDERS’ EQUITY | 299,222,192 | 300,316,094 |
Paid-in capital | 202,060,999 | 203,248,429 |
Revalued capital reserves | 404,122 | (609,745) |
Other reserves | 3,434,474 | 3,649,911 |
Retained earnings | 93,322,597 | 94,027,499 |
Accumulated earnings | 71,063,908 | 72,424,600 |
Net income for the period | 22,258,689 | 21,602,899 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 519,713,945 | 557,275,650 |
The accompanying Notes 1 to 41 are an integral part of these consolidated financial statements.
3
EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
| For the periods ended | |
| March 31, | |
| 2007 | 2006 |
| ThCh$ | ThCh$ |
OPERATING INCOME | 28,688,289 | 24,987,053 |
Gross Margin | 68,752,068 | 59,009,862 |
Net Sales | 159,268,172 | 139,688,943 |
Cost of sales | (90,516,104) | (80,679,081) |
Administrative and selling expenses | (40,063,779) | (34,022,809) |
NON OPERATING INCOME AND EXPENSE | (2,076,334) | (124,172) |
Financial Income | 2,008,553 | 2,500,899 |
Equity in earnings of equity investments | 487,914 | 378,661 |
Other non-operating income | 528,713 | 1,448,172 |
Equity in losses of equity investments | (161,147) | (43,584) |
Amortization of goodwill | (1,649,369) | (1,632,667) |
Financial Expenses | (3,755,716) | (6,365,200) |
Other non-operating expenses | (648,516) | (1,099,288) |
Price level restatement | (196,860) | (195,399) |
Foreign exchange gains | 1,310,094 | 4,884,234 |
Income before income taxes and extraordinary items | 26,611,955 | 24,862,881 |
Income tax expense | (4,298,887) | (3,186,997) |
Income before minority interest | 22,313,068 | 21,675,884 |
Minority interest | (54,379) | (72,985) |
NET INCOME FOR THE PERIOD | 22,258,689 | 21,602,899 |
The accompanying Notes 1 to 41 are an integral part of these consolidated financial statements.
4
EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOW
| For the periods ended | |
| March 31, | |
| 2007 | 2006 |
| ThCh$ | ThCh$ |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 37,533,579 | 43,694,708 |
Collection of trade receivables | 232,149,372 | 214,864,966 |
Financial income received | 4,291,256 | 3,992,331 |
Dividend & other distributions received | 1,750,000 | 1,486,455 |
Other income received | 23,772 | 0 |
Payments to suppliers and personnel | (162,352,051) | (143,055,346) |
Interest paid | (3,469,245) | (3,019,733) |
Income taxes paid | (3,696,717) | (2,466,718) |
Other expenses paid | 0 | (2,068) |
VAT and other tax payments | (31,162,808) | (28,105,179) |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (7,850,194) | (4,711,669) |
Borrowings | 1,245 | 8,355,737 |
Dividend distribution | (5,084,682) | (3,730,810) |
Loan payments | (2,766,757) | (9,336,596) |
NET CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES | (6,770,691) | 1,659,975 |
Proceeds from sales of property, plant and equipment | 153,210 | 977,424 |
Proceeds from sales of permanent investments | 0 | 5,127,179 |
Proceeds from sales of other investments | 4,489,639 | 2,971,662 |
Additions to property, plant & equipment | (11,413,540) | (7,383,720) |
Investments in financial instruments | 0 | (32,570) |
TOTAL NET CASH FOR THE PERIOD | 22,912,694 | 40,643,014 |
EFFECT OF INFLATION ON CASH AND CASH EQUIVALENTS | 597,828 | 698,006 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 23,510,522 | 41,341,020 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 41,857,879 | 22,080,229 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 65,368,401 | 63,421,249 |
The accompanying Notes 1 to 41 are an integral part of these consolidated financial statements.
5
EMBOTELLADORA ANDINA S.A. AND SUBSIDIARIES
RECONCILIATION BETWEEN NET INCOME AND NET CASH FLOWS
PROVIDED BY OPERATING ACTIVITIES
| For the periods ended | |
| March 31, | |
| 2007 | 2006 |
| ThCh$ | ThCh$ |
NET INCOME | 22,258,689 | 21,602,899 |
Income on sale of assets: | 375,418 | (240,504) |
Gain on sale of property, plant and equipment | 383,223 | (240,504) |
Gain on sale of other assets | (7,805) | 0 |
ADJUSTMENTS TO NET INCOME THAT DO NOT REPRESENT MOVEMENTS OF CASH | 7,303,353 | 3,273,862 |
Depreciation | 7,177,805 | 7,577,846 |
Amortization of intangibles | 320,016 | 122,788 |
Write-offs and provisions | 98,043 | (625,175) |
Equity in earnings of equity investments | (487,914) | (378,661) |
Equity in losses of equity investments | 161,147 | 43,584 |
Amortization of goodwill | 1,649,369 | 1,632,667 |
Price level restatement | 196,860 | 195,399 |
Foreign exchange gains, net | (1,310,094) | (4,884,234) |
Other credits to income that do not represent cash flows | (566,916) | (375,553) |
Other charges to income that do not represent cash flows | 65,037 | (34,799) |
CHANGES IN OPERATING ASSETS | 15,731,005 | 22,603,657 |
(Increase) decrease in trade accounts receivable | 15,554,240 | 10,837,153 |
(Increase) decrease in inventories | 645,159 | 39,482 |
(Increase) decrease in other assets | (468,394) | 11,727,022 |
CHANGES IN OPERATING LIABILITIES | (8,189,265) | (3,618,191) |
Increase (decrease) in accounts payable related to operating income | (11,324,817) | 5,248,676 |
Increase (decrease) in interest payable | 2,552,587 | 4,543,774 |
Increase (decrease) in income taxes payable | 3,676,468 | (1,277,798) |
Increase (decrease) in other accounts payable related to non-operating income | 1,925,146 | (8,206,964) |
Increase (decrease) in Valued Added Tax and other similar items | (5,018,649) | (3,925,879) |
Minority interest | 54,379 | 72,985 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 37,533,579 | 43,694,708 |
The accompanying Notes 1 to 41 are an integral part of these consolidated financial statements.
6
NOTE 1 - INCORPORATION IN THE SECURITIES REGISTER
Embotelladora Andina S.A. was incorporated in the Securities Register under No. 00124 and, in conformity with Law 18,046. is subject to the supervision of the Chilean Superintendence of Securities and Insurance Companies (the “SVS”).
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRINCIPLES
a)
Accounting period
The consolidated financial statements cover the period January 1 to March 31, 2007 and are compared to the same period in 2006.
b)
Basis of preparation
The consolidated financial statements have been prepared in conformity with generally accepted accounting principles issued by the Chilean Institute of Accountants, as well as rules and regulations of the SVS. In the event of discrepancy, the SVS regulations will prevail.
c)
Basis of presentation
For comparison purposes, the figures in the prior-year financial statements have been restated by 2.7 % according to CPI and minor reclassifications have been made.
d)
Basis of consolidation
The accompanying financial statements include assets, liabilities, income and cash flows of the Parent Company and its subsidiaries. The equity and income accounts of the Parent Company and its subsidiaries have been combined, eliminating investments and current accounts between consolidated companies, transactions between them and the unrealized income from inter-company transactions.
In addition, for proper presentation of consolidated net income, the participation in income by minority shareholders is shown in the consolidated statements of income under Minority interest.
Holding percentages
The subsidiaries included in the consolidated financial statements and Andina’s direct and indirect holding percentages are as follows:
Company Name | Ownership Interest | |||
| March 31, 2007 | March 31, 2006 | ||
| Direct | Indirect | Total | Total |
ABISA CORP S.A. | - | 99.99 | 99.99 | 99.99 |
ANDINA BOTTLING INVESTMENTS S.A. | 99.90 | 0.09 | 99.99 | 99.99 |
ANDINA INVERSIONES SOCIETARIAS S.A. | 99.99 | - | 99.99 | 99.99 |
ANDINA BOTTLING INVESTMENTS DOS S.A. | 99.90 | 0.09 | 99.99 | 99.99 |
EMBOTELLADORA DEL ATLANTICO S.A. | - | 99.96 | 99.96 | 99.96 |
ENVASES MULTIPACK LTDA. | - | - | - | 99.99 |
RIO DE JANEIRO REFRESCOS LTDA. | - | 99.99 | 99.99 | 99.99 |
SERVICIOS MULTIVENDING LTDA. | 99.90 | 0.09 | 99.99 | 99.99 |
TRANSPORTES ANDINA REFRESCOS LTDA. | 99.90 | 0.09 | 99.99 | 99.99 |
VITAL S.A. | - | 99.99 | 99.99 | 99.99 |
RJR INVESTMENTS CORP S.A. | - | 99.99 | 99.99 | 99.99 |
VITAL AGUAS S.A. | 56.50 | - | 56.50 | 56.50 |
e)
Price-level restatement
The financial statements have been restated to reflect the effect of price-level changes on the purchasing power of the Chilean peso during the respective periods. Restatements have been determined on the basis of the percentage variation of the official Chilean Consumer Price Index, “CPI”, issued by the Chilean National Institute of Statistics, which amounted to 0.2% for the period December 1, 2006 to February 28, 2007 (-0.3% for the same period of the previous year).
7
f)
Currency translation
Balances in foreign currency are considered as non-monetary items and are translated at the exchange rate prevailing at year-end. Regarding balances subject to restatement, these have been restatetd by the corresponding restatement index or by the agreed upon rate.
Assets and liabilities in foreign currency and Unidades de Fomento have been translated into local currency at the following end of period exchange rates:
|
| 2007 | 2006 |
|
| Ch$ | Ch$ |
Unidades de Fomento | (UF) | 18,372.97 | 17,915.66 |
United States dollars | (US$) | 539.21 | 526.18 |
Argentine pesos | (A$) | 173.94 | 170.73 |
Brazilian Real | (R$) | 262.98 | 243.29 |
Euro | (€$) | 720.00 | 637.56 |
g)
Marketable securities
Marketable securities include investments in mutual funds and investment fund shares, valued at the redemption value for each year end.
Investments in bonds with pre-established value are valued at the lesser value between the price value restatement cost and the market price.
h)
Inventories
The cost of raw materials includes all disbursements made in the acquisition process and deemed necessary for them to be readily available at the Company’s or it’s subsidiaries’ warehouse. The costs of finished products include all manufacturing costs. Raw materials and finished products are valued at the average weighted cost.
Provisions are made for obsolescence on the basis of turnover of raw materials and finished products.
The stated values of inventories do not exceed their estimated net realizable value.
i)
Allowance for doubtful accounts
The allowance for doubtful accounts consists of a general provision determined on the basis of the aging of debts and on a case-by-case analysis where collection is doubtful. In the opinion of the Company’s management, the allowances are reasonable and the net balances are recoverable.
j)
Operations with sale-back agreements
The purchases of financial instruments with sale back agreements are recorded at cost of acquisition and are presented under Other Current Assets. The implied interest is registered as financial income over the accrued basis by the straight-line method.
k)
Property, plant and equipment
For companies incorporated in Chile, Property, plant and equipment is carried at restated cost plus price-level restatements. For companies incorporated abroad it has been restated in terms of the variation of the U.S. dollar according to the details described in Note 2 n). Technical reappraisal of property, plant and equipment, authorized by the SVS on December 31, 1979, is shown at restated value under the heading “Technical reappraisal of property, plant and equipment”.
Fixed assets to be disposed of for sale are valued at the lower of the net realizable value and book value. Unrealized losses are reflected in the consolidated statement of income under Other non-operating expenses.
l)
Depreciation
Depreciation of property, plant and equipment is determined by the straight-line method based on the estimated useful lives of the valued assets.
8
m)
Containers
Inventories of containers, bottles and plastic containers at plants, warehouses, and with third parties are stated at cost plus price-level restatements and are included in Other property, plant and equipment. Broken or damaged containers at plants and warehouses are expensed in each accounting period.
n)
Investments in related companies
Investments in shares or rights in companies in which the Company has a significant holding in the investee are accounted for using the equity method. The Company’s proportionate share of net income and losses of related companies is recognized in the consolidated statements of income, after eliminating any unrealized profits or losses from transactions between related companies.
Investments in foreign companies are valued in conformity with Technical Bulletin No. 64 issued by the Chilean Institute of Accountants. The United States (“US”) dollar is the currency used to control investments and to translate financial statements of foreign companies. Assets and liabilities from these investments are translated into Chilean pesos at year end exchange rate, except that non-monetary assets and liabilities and shareholders’ equity are first expressed at their equivalent value in historical US dollars. Income and expense items are first translated into US dollars at the average exchange rate during the month.
o)
Intangibles
Intangibles include franchise rights and licenses that are amortized over the terms of the contracts, not in excess of 20 years.
p)
Goodwill
Goodwill represents the difference between purchase cost of the shares acquired and the proportional equity value of investment on the purchase date. These differences are amortized based on the expected period of return of the investment, estimated at 20 years.
q)
Bonds payable
Bonds payable includes the placement of Yankee Bonds on the US markets and placement of bonds in UF in Chile, which are carried at the issue rate. The difference in valuation as compared to the effective placement rate is recorded as a deferred asset. This asset is amortized using the straight-line method over the term of the respective obligations.
r)
Income taxes and deferred income taxes
The companies have recognized its current tax obligations in conformity with current legislation. The effects of deferred income taxes arising from temporary differences between the basis of assets and liabilities for tax and financial statement purposes are recorded on the basis of the enacted tax rate that will be in effect at the estimated date of reversal, in conformity with Technical Bulletin No. 60 issued by the Chilean Institute of Accountants. The effects of deferred income taxes existing at the time of the enforcement of the aforesaid Bulletin, i.e. January 1, 2000, and not previously recognized, are recorded as gain or loss according to their estimated reversal period.
s)
Staff severance indemnities
The Company has recorded a liability for long-term service indemnities in accordance with the collective agreements entered into with its employees. The provision is stated at present value of the projected cost of the benefit, which is discounted at a 7.0% annual rate and a capitalization period using the staff’s expected length of service to their retirement date.
Since the year 2005, the Company maintains a withholding plan for some officers. A liability is recorded according to the guidelines of this plan. The plan entitles certain officers of the Company to receive a fixed payment in cash at a predetermined date once he has fulfilled years of service.
t)
Deposits for containers
Corresponds to the liabilities constituted by cash guarantees received from clients for lending bottles to them.
For those loans for placement subsequent to January 31, 2001, an expiration date of five years as from the invoice date was established. In the event the client has not returned all or a portion of the containers and/or cases, the Company may, without delay, enforce the guarantee, in whole or in part, in cash and record that effect in operating income of the Company.
9
This liability is presented in Other long-term liabilities, considering that the number of new containers in circulation in the market during the year is historically greater than the number of containers returned by clients during the same period.
u)
Revenue recognition
Given the nature of its operations, the Company records revenue based on the physical delivery of finished products to its clients, based on the realization principle and in accordance with Technical Bulletin No. 70 issued by the Chilean Institute of Accountants.
v)
Derivative contracts
Derivative contracts include hedging derivative contracts used to cover the risk of exposure to exchange rate differences as follows:
These hedge instruments are recorded at their market values for existing items. Unrealized losses are recognized as a charge to income and gains are deferred and included in Other liabilities (current or long-term), depending on whether the difference is a loss or gain. In the case that the hedge instruments are not totally efficient, the impact is recognized as an income charge or credit.
Hedge contracts for forecasted transactions are recorded at market value and their changes in value are accounted for as unrealized gains or losses. Upon contract expiration, the deferred gains and losses are recorded in income.
w)
Computer software
Software currently in use corresponds to computer packages purchased from third parties, and programs developed internally. Software purchased from third parties is capitalized and amortized over a maximum period of four years. Disbursements incurred for internally developed programs are expensed.
x)
Research and development costs
Costs incurred by the Company in research and development are immaterial given the nature of the business and the strong support from The Coca-Cola Company to its bottlers.
y)
Consolidated statement of cash flows
For purposes of preparation of the statement of cash flows, in accordance with Technical Bulletin N°50 of the Chilean Institute of Accountants and circular N°1,501 of the Superintendencia de Valores y Seguros (Chilean Superintendence of Securities and Insurance) the Company has considered cash equivalent to be investments in fixed-income, mutual funds, time deposits and operations with sale-back agreements maturing within 90 days.
Cash flows from operating activities include all business-related cash flows as well as interest paid, financial income and, in general, all cash flows not defined as from financial or investment activities. The operating concept used for this statement is broader than that in the statement of income.
NOTE 3 - ACCOUNTING CHANGES
There are no changes in the application of generally accepted accounting principles in Chile in relation to the previous year that could significantly affect the comparability of these financial statements.
10
NOTE 4 - MARKETABLE SECURITIES
Type of Instrument | Accounting value for the periods ended March 31, |
|
|
|
|
| |
| 2007 | 2006 |
|
|
|
|
|
| ThCh$ | ThCh$ |
|
|
|
|
|
Bonds | 1,090,533 | 4,519,496 |
|
|
|
|
|
Mutual funds | 17,892,947 | 73,439 |
|
|
|
|
|
Investment funds | 27,711,347 | 13,349,532 |
|
|
|
|
|
Total Marketable Securities | 46,694,827 | 17,942,467 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Income | Date | Par Value | Accounting value | Market Value | Provision | ||
| Purchase | Maturity | Amount | Rate | |||
|
|
| ThCh$ | ThCh$ | % | ThCh$ | ThCh$ |
PETROLEOS MEXICANOS | 13-Sep-04 | 15-Sep-07 | 1,082,397 | 1,105,436 | 8.85 | 1,090,533 | 0 |
|
|
|
|
|
|
|
|
Mutual Funds | Balance as of March 31, 2007 |
|
|
|
|
|
|
| ThCh$ |
|
|
|
|
|
|
Fondo Mutuo Boston Select-Chile | 4,119,000 |
|
|
|
|
|
|
Fondo Mutuo Banco Estado Corporativo-Chile | 3,320,000 |
|
|
|
|
|
|
Scotia SudAmericano Fondo Mutuo Clipper Chile | 2,410,000 |
|
|
|
|
|
|
Fondo Mutuos BBVA Excelencia - Chile | 2,174,000 |
|
|
|
|
|
|
Fima Banco Galicia - Argentina | 2,280,158 |
|
|
|
|
|
|
Scotia Sud Americano Fondo Mutuo Optimo - Chile | 1,980,000 |
|
|
|
|
|
|
Fondo Mutuo Larrain Vial Mercado Monetario - Chile | 1,609,789 |
|
|
|
|
|
|
Total Mutual Funds | 17,892,947 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Funds | Balance as of March 31, 2007 |
|
|
|
|
|
|
| ThCh$ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Citi Institutional Liquid Reserves Limited - U.S.A. | 27,580,768 |
|
|
|
|
|
|
Fondo Mutuo Wachovia Securities - U.S.A. | 130,579 |
|
|
|
|
|
|
Total Investment Funds | 27,711,347 |
|
|
|
|
|
|
11
NOTE 5 - SHORT-AND LONG-TERM RECEIVABLES
Almost all of said accounts correspond to the soft drinks category. The balance of other accounts receivable mainly corresponds to prepayment to our sugar suppliers.
| Current | Long Term | |||||||
| Up to 90 days | More than 90 days up to 1 year | Subtotal | Total Current (net) | |||||
| March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Trade receivables | 29,031,679 | 21,975,683 | 811,149 | 855,576 | 29,842,828 | 28,754,424 | 22,831,259 | - | - |
Allowance for doubtful accounts | - | - | - | - | 1,088,404 | - | - | - | - |
Notes receivable | 8,929,840 | 7,275,597 | 417,971 | 121,638 | 9,347,811 | 8,884,596 | 7,397,235 | - | - |
Allowance for doubtful accounts | - | - | - | - | 463,215 | - | - | - | - |
Other receivables | 9,381,963 | 8,901,977 | 669,610 | 11,183,092 | 10,051,573 | 9,997,607 | 20,085,069 | 38,603 | 92,231 |
Allowance for doubtful accounts | - | - | - | - | 53,966 | - | - | - | - |
|
|
|
|
|
| Total long term receivables | 38,603 | 92,231 |
12
NOTE 6 - BALANCES AND TRANSACTIONS WITH RELATED COMPANIES
Receivable and payable balances with related companies correspond to the following concepts:
1) Notes and accounts receivable.
Embonor S.A.: Sale of products
Embotelladora Coca-Cola Polar S.A.: Sale of products
Coca-Cola de Chile S.A.: Advertising agreements
Centralli Refrigerantes S.A.: Sale of products
Company | Short Term | Long Term | ||
| March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ |
COCA-COLA DE CHILE S.A. | 550,890 | 0 | 36,176 | 34,831 |
EMBONOR S.A. | 537,460 | 923,859 | 0 | 0 |
EMBOTELLADORA COCA-COLA POLAR S.A. | 354,413 | 350,334 | 0 | 0 |
SERVICIOS Y PRODUCTOS PARA BEBIDAS REFRESCANTES S.R.L. | 0 | 304,133 | 0 | 0 |
CENTRALLI REFRIGERANTES S.A. | 0 | 17,389 | 0 | 0 |
TOTAL | 1,442,763 | 1,595,715 | 36,176 | 34,831 |
2) Notes and accounts payable:
Recofarma Industrias Do Amazonas Ltda.: Concentrate purchases
Envases CMF S.A.: Raw material purchases
Servicios y Productos para Bebidas Refrescantes: Concentrate purchases
Envases Central S.A.: Net balance corresponds to raw materials and finished products transactions.
Envases del Pacífico S.A.: Raw material purchases
Cican S.A.: Net balance corresponds to raw materials and finished products transactions.
Embonor S.A. and Embotelladora Coca-Cola Polar S.A.: Corresponds to unearned income due to commitments of sale of products of Vital S.A. to those companies, which will be realized in accordance with future deliveries.
Company | Short Term | Long Term | ||
| Dec 31, 2007 | Dec 31, 2006 | Dec 31, 2007 | Dec 31, 2006 |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ |
RECOFARMA INDUSTRIAS DO AMAZONAS LTDA. | 3,587,816 | 1,201,245 | 0 | 0 |
ENVASES CMF S.A. | 2,695,691 | 2,825,054 | 0 | 0 |
SERVICIOS Y PRODUCTOS PARA BEBIDAS REFRESCANTES | 1,387,932 | 0 | 0 | 0 |
ENVASES CENTRAL S.A. | 881,955 | 561,987 | 0 | 0 |
CICAN S.A. | 190,678 | 146,314 | 0 | 0 |
ENVASES DEL PACIFICO S.A. | 29,943 | 150,747 | 0 | 0 |
COCA-COLA DE CHILE S.A. | 0 | 1,531,027 | 0 | 0 |
EMBONOR S.A. | 0 | 0 | 2,750,011 | 3,054,326 |
EMBOTELLADORA COCA-COLA POLAR S.A. | 0 | 0 | 707,129 | 783,947 |
TOTAL | 8,774,015 | 6,416,374 | 3,457,140 | 3,838,273 |
13
3) Transactions with related companies
The following table includes the transactions with related companies that exceed ThCh$200,000.
Company | Relation | Transaction | March 31, 2007 | March 31, 2006 | ||
|
|
| Effect on Income | Effect on Income | ||
|
|
| Amount | ((charge)/credit) | Amount | ((charge)/credit) |
|
|
| ThCh$ | ThCh$ | ThCh$ | ThCh$ |
ENVASES CENTRAL S.A. | Equity Investee | Sale of raw materials and supplies | 457,704 | 43,205 | 271,365 | (30,336) |
- | - | Purchase of finished products | 4,307,713 | 0 | 3,462,605 | 0 |
COCA - - COLA DE CHILE S.A. | Shareholder | Purchase of concentrate | 12,904,746 | 0 | 9,194,122 | 0 |
- | - | Advertising participation payment | 2,426,531 | (2,426,531) | 419,502 | (419,502) |
- | - | Water source rental | 589,525 | (589,525) | 354,709 | (354,709) |
- | - | Sale of advertising | 669,027 | 0 | 0 | 0 |
COCA-COLA DE ARGENTINA S.A. | Shareholder | Advertising expenses | 182,263 | (182,263) | 789,090 | (789,090) |
CICAN S.A. | Equity Investee | Purchase of finished products | 431,259 | 0 | 242,901 | 0 |
- | - | Sale of raw materials | 147,474 | 42,916 | 0 | 0 |
ENVASES DEL PACIFICO S.A. | Director in Common | Purchase of raw materials | 42,304 | 0 | 102,379 | 0 |
SERVICIOS Y PRODUCTOS PARA BEBIDAS REFRESCANTES | Shareholder Related | Purchase of concentrate | 7,420,331 | 0 | 6,023,825 | 0 |
RECOFARMA INDUSTRIAS DO AMAZONAS LTDA. | Shareholder Related | Purchase of concentrate | 16,157,471 | 0 | 10,841,362 | 0 |
- | - | Advertising participation payment | 493,156 | 493,156 | 400,144 | (400,144) |
- | - | Reimbursement and other purchases | 120,388 | 120,388 | 0 | 0 |
ENVASES CMF S.A. | Equity Investee | Purchase of containers | 4,134,281 | 0 | 2,550,671 | 0 |
- | - | Services rendered | 75,603 | 0 | 0 | 0 |
EMBONOR S.A. | Shareholder Related | Sale of finished products | 2,188,726 | 438,352 | 1,932,357 | 0 |
EMBOTELLADORA COCA COLA POLAR S.A. | Shareholder Related | Sale of finished products | 1,135,151 | 14,086 | 1,270,124 | 0 |
IANSAGRO S.A. | Director in Common | Purchase of raw materials | 2,792,257 | 0 | 1,810,847 | 0 |
14
4) Other transactions
Within the due course of operations, the Company executed with IANSAGRO S.A. sugar future supply agreements to cover sugar needs for the next two and one-half years approximately.
NOTE 7 - INVENTORIES
| March 31, 2007 |
| March 31, 2006 | ||||
| Gross | Obsolescence | Net |
| Gross | Obsolescence | Net |
| value | provision | Value |
| value | provision | Value |
| ThCh$ | ThCh$ | ThCh$ |
| ThCh$ | ThCh$ | ThCh$ |
|
|
|
|
|
|
|
|
Raw Materials | 11,525,760 | (117,157) | 11,408,603 |
| 8,598,386 | (60,690) | 8,537,696 |
Finished products | 9,486,740 | (391,608) | 9,095,132 |
| 8,364,036 | (372,317) | 7,991,719 |
Products in process | 1,075,745 | 0 | 1,075,745 |
| 912,890 | 0 | 912,890 |
Raw Materials in Transit | 713,602 | 0 | 713,602 |
| 612,525 | 0 | 612,525 |
Total | 22,801,847 | (508,765) | 22,293,082 |
| 18,487,837 | (433,007) | 18,054,830 |
NOTE 8 - INCOME TAXES AND DEFERRED INCOME TAXES
a)
At period end 2007 and 2006, the Company does not present taxable profit or non-taxable profit funds.
(Short-term and long-term assets and liabilities must be netted out to compose the general balance sheet on deferred taxes).
15
b)
The following table contains information on deferred income taxes at each period-end.
| March 31, 2007 | March 31, 2006 | ||||||
| Assets | Liabilities | Assets | Liabilities | ||||
| Short Term | Long Term | Short Term | Long Term | Short Term | Long Term | Short Term | Long Term |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Temporary Differences |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for doubtful accounts | 250,478 | 36,010 | 0 | 0 | 121,473 | 48,523 | 0 | 0 |
Vacation provision | 115,199 | 0 | 0 | 0 | 119,990 | 0 | 0 | 0 |
Production expenses | 16,400 | 0 | 0 | 0 | 8,084 | 0 | 0 | 0 |
Depreciation of property, plant & equipment | 466 | 0 | 115,872 | 3,993,651 | 0 | 0 | 117,646 | 3,590,008 |
Severance indemnities | 6,779 | 1,341 | 30,860 | 207,403 | 49,619 | 0 | 44,678 | 870,606 |
Provision for assets write off | 333,271 | 1,145,802 | 0 | 0 | 265,042 | 1,282,630 | 0 | 0 |
Provision for labor & commercial lawsuits | 0 | 1,310,222 | 0 | 0 | 0 | 5,052,439 | 0 | 0 |
Tax loss carry-forwards | 2,242,946 | 3,152,516 | 0 | 0 | 1,381,476 | 7,686,468 | 0 | 0 |
Guarantee deposit | 0 | 0 | 0 | 553,963 | 0 | 0 | 0 | 2,692,858 |
Others | 647,304 | 580,508 | 0 | 0 | 366,458 | 796,473 | 0 | 84,724 |
Local bond issue expenses | 0 | 0 | 0 | 149,403 | 0 | 0 | 0 | 204,711 |
Contingency allowance | 0 | 229,620 | 0 | 0 | 0 | 2,007,338 | 0 | 0 |
Social contributions | 807,460 | 1,134,906 | 0 | 0 | 497,332 | 2,160,510 | 0 | 0 |
Income Participation provision | 183,966 | 0 | 0 | 0 | 367,858 | 0 | 0 | 0 |
Accrued interests abroad | 0 | 0 | 4,095,523 | 0 | 0 | 0 | 3,640,861 | 0 |
Exchange rate difference (FRN Debt - Brazil) | 0 | 0 | 0 | 9,358,423 | 0 | 0 | 0 | 0 |
Others |
|
|
|
|
|
|
|
|
Complementary accounts, net of amortization | 0 | 0 | 0 | 2,732,678 | 0 | 4,467,418 | 0 | 3,079,715 |
Valuation allowance | 0 | 0 | 0 | 0 | 0 | 9,847,551 | 0 | 0 |
Total | 4,604,269 | 7,590,925 | 4,242,255 | 11,530,165 | 3,177,332 | 4,719,412 | 3,803,185 | 4,363,192 |
16
c)
The following table contains information on income tax expense for each period.
| March 31, 2007 | March 31, 2006 |
| ThCh$ | ThCh$ |
Current tax expense (tax allowance) | (3,901,914) | (3,212,272) |
Tax expense adjustment (previous period) | 0 | 272,177 |
Deferred income tax expense/effect over assets or liabilities | (332,326) | (2,347,533) |
Amortization of deferred income tax asset and liability complementary accounts | (37,917) | (509,500) |
Deferred income tax expense/effect over assets or liabilities due to changes in the valuation allowance | 0 | 2,610,131 |
Other charges or credits | (26,730) | 0 |
Total | (4,298,887) | (3,186,997) |
NOTE 9 - SHORT AND LONG-TERM LEASING AGREEMENTS AND LEASING ASSETS
Not applicable.
NOTE 10 - OTHER CURRENT ASSETS
| March 31, 2007 | March 31, 2006 |
| ThCh$ | ThCh$ |
Cross currency swap effects | 13,781,105 | 1,460,601 |
Supplies | 3,143,381 | 4,383,869 |
Accrued interest on long-term bonds | 1,398,122 | 1,397,587 |
Sale-back agreement investments | 0 | 924,654 |
Wachovia Investment Fund (restricted) | 254,689 | 0 |
Others | 615,783 | 429,397 |
Total | 19,193,080 | 8,596,108 |
NOTE 11 - REPURCHASE / RESALE AGREEMENTS
The Company had no agreements of this type.
17
NOTE 12 - PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist principally of land, buildings, improvements and machinery. Machinery and equipment included production lines and supporting equipment; sugar processing and liquefaction equipment; transportation machinery; and computer equipment. The Company has purchased insurance to cover its fixed assets and inventories. These assets are distributed as follows:
Chile
:
Santiago, Renca, Rancagua, San Antonio and Rengo
Argentina
:
Buenos Aires, Mendoza, Cordoba, and Rosario
Brazil
:
Rio de Janeiro, Niteroi, Campos, Cabo Frío, Nova Iguaçu, Espirito Santo and Vitoria.
a) Main Components of Property Plant & Equipment |
|
|
|
|
|
|
| Balances at March 31, 2007 | Balances at March 31, 2006 | ||||
| Assets | Accumulated Depreciation | Net property, plant & equipment | Assets | Accumulated Depreciation | Net property, plant & equipment |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Land | 16,370,084 | 0 | 16,370,084 | 13,097,006 | 0 | 13,097,006 |
Buildings and improvements | 86,692,649 | (34,345,513) | 52,347,136 | 81,119,523 | (31,476,869) | 49,642,654 |
Machinery and equipment | 218,190,389 | (177,530,842) | 40,659,547 | 215,330,889 | (166,517,325) | 48,813,564 |
Other property, plant and equipment | 213,365,152 | (179,192,157) | 34,172,995 | 206,498,563 | (176,012,230) | 30,486,333 |
Technical reappraisal of property, plant & equipment | 2,060,313 | (624,830) | 1,435,483 | 2,062,160 | (622,344) | 1,439,816 |
Total | 536,678,587 | (391,693,342) | 144,985,245 | 518,108,141 | (374,628,768) | 143,479,373 |
|
|
|
|
|
|
|
b) Other fixed assets |
|
|
|
|
|
|
| Balances at March 31, |
|
|
|
| |
| 2007 | 2006 |
|
|
|
|
| ThCh$ | ThCh$ |
|
|
|
|
Containers | 120,985,611 | 112,581,314 |
|
|
|
|
Refrigerating equipment, promotional items and other minor assets | 57,353,689 | 56,881,706 |
|
|
|
|
Furniture and tools | 7,761,208 | 4,089,900 |
|
|
|
|
Other | 27,264,644 | 32,945,643 |
|
|
|
|
Total other property, plant and equipment | 213,365,152 | 206,498,563 |
|
|
|
|
|
|
|
|
|
|
|
18
c) Technical Reappraisal |
|
|
|
|
|
| |||||
|
|
|
|
|
|
| |||||
| Balances at March 31, | Balances at March 31, | |||||||||
| Assets | Accumulated Depreciation | Net property, plant & equipment | Assets | Accumulated Depreciation | Net property, plant & equipment | |||||
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | |||||
Land | 1,375,911 | 0 | 1,375,911 | 1,377,091 | 0 | 1,377,091 | |||||
Buildings and improvements | 192,626 | (135,812) | 56,814 | 192,853 | (130,228) | 62,625 | |||||
Machinery and equipment | 491,776 | (489,018) | 2,758 | 492,216 | (492,116) | 100 | |||||
Total | 2,060,313 | (624,830) | 1,435,483 | 2,062,160 | (622,344) | 1,439,816 | |||||
|
|
|
|
|
|
| |||||
d) Depreciation for the period |
|
|
|
|
|
| |||||
|
|
|
|
|
|
| |||||
Depreciation charges for the period amounted to ThCh$ 7,177,805 (ThCh$7,577,846 in 2006) of which ThCh$ 5,382,385 (ThCh$6,418,706 in 2006) are included under Operating Costs and | |||||||||||
|
|
|
|
|
19
NOTE 13 - SALES TRANSACTIONS UNDER LEASEBACK AGREEMENTS
The Company had no agreements of this type.
NOTE 14 - INVESTMENT IN RELATED COMPANIES
1.
Investment in related companies and the corresponding direct shareholding in equity, as well as the recognition of unrealized income at year end of the respective years, are shown in the table attached.
The main changes occurred in the reported periods are described below:
By a public deed dated June 5, 2006, the company Andina Inversiones Societarias S.A. was divided, creating a new company, “Andina Inversiones Societarias Dos S.A.”. with the same shareholders and the same ownership interest as in the first one, with a capital of ThCh$24,405,291 and that corresponds to the investment in Envases Multipack Ltda. The financial impact of this division is recorded beginning January 1, 2006.
By a public deed dated August 31, 2006 Andina Inversiones Societarias Dos S.A. changed its corporate name to Andina Inversiones Societarias Dos Ltda. (thus becoming a limited responsibility corporation).
On November 15, 2006 Embotelladora Andina S.A. acquired 0.0001% of the social rights of Andina Inversiones Societarias Dos Ltda., consequently the company has been completely merged into Embotelladora Andina since 100% ownership interest is now held by Embotelladora Andina. Likewise, Envases Multipack Ltda. is now fully merged into Embotelladora Andina since it originally held 5% and Andina Inversiones Societarias Dos Ltda. held the remaining 95%.
Centralli Refrigerantes S.A. records a negative equity, which has been provisioned accordingly.
The investments in Kaik Partipacoes Ltda. (Brazil) and in Cican S.A. (Argentina), where Embotelladora Andina S.A. holds an indirect ownership of 11.32% and 15.2% respectively, have been valued according to the equity method, because we have presence in both companies through a Director, who participates in the procedures for setting policies, operating and financial decisions in accordance with the ownership structure of both companies, which are exclusively owned by Coca-Cola bottlers in Brazil and Argentina, respectively.
The investment in Envases Central S.A. is presented with a 48% reduction (the percentage share on the date of transaction) of the earnings generated during the sale to Envases Central during December 1996 for property located in Renca, because this transaction represents unrealized income for Embotelladora Andina S.A. The amount of the reduction is reflected in the following chart. This transaction will be realized once the property is transferred to a third party different from the group.
The investment in Envases CMF S.A. is presented with a 50% reduction of the earnings generated during the sale of machinery and equipment of our subsidiary Envases Multipack S.A. which took place in June, 2001, and will be recorded under Results during the remaining useful life period of the goods sold to Envases CMF S.A.
Unrealized income corresponds to transactions between subsidiaries and/or the parent company that have been deducted or added to the category of the originating asset with the following effect on income of the subsidiaries:
|
| 2007 | 2006 |
|
| ThCh$ | ThCh$ |
Envases CMF S.A. | Purchase of containers | (203,695) | (228,601) |
Envases Central S.A. | Purchase of finished products | (3,223) | (12,360) |
2.
No liabilities have been designated as hedging instruments for investments abroad.
3.
Income likely to be remitted by subsidiaries abroad amounts to US$216 million.
20
The following table presents a detail of the investments in related companies and the related direct participation in equity and unrealized results at each period end.
|
|
|
| Ownership Interest | Equity of companies | Income (loss) for the period | Accrued income | Partic. in net income (loss) | Unrealized income (loss) | Book value of investment | ||||||||||||||||||
Company | Country | Functional Currency | Number of Shares | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | |||||||||||
|
|
|
| % | % | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | |||||||||||
ENVASES CMF S.A. | Chile | Ch$ | 28,000 | 50.00 | 50.00 | 35,515,927 | 35,261,810 | 1,371,922 | 1,036,563 | 482,265 | 289,681 | 17,757,964 | 17,630,905 | 1,038,869 | 1,112,726 | 16,719,095 | 16,518,179 | |||||||||||
ENVASES CENTRAL S.A. | Chile | Ch$ | 1,499,398 | 49.91 | 49.91 | 4,426,936 | 4,546,577 | (34,929) | 45,652 | (20,656) | 10,425 | 2,209,484 | 2,269,197 | 225,447 | 225,640 | 1,984,037 | 2,043,558 | |||||||||||
KAIK PARTIPACOES | Brazil | US$ | 16,098,919 | 11.32 | 11.32 | 14,547,028 | 12,826,183 | 49,904 | (300,855) | 5,649 | (34,055) | 1,646,680 | 1,451,885 | 0 | 0 | 1,646,680 | 1,451,885 | |||||||||||
CICAN S.A. | Argentina | US$ | 3,040 | 15.20 | 15.20 | 7,106,664 | 7,830,525 | (792,309) | 516,811 | (120,431) | 78,555 | 1,080,213 | 1,190,240 | 0 | 0 | 1,080,213 | 1,190,239 | |||||||||||
CENTRALLI REFRIGERANTES S.A. | Brazil | US$ | 3,005 | 25.00 | 25.00 | 0 | 0 | 0 | 0 | (20,060) | (9,529) | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||
TOTALS |
|
|
|
|
|
|
|
|
|
|
| 22,694,341 | 22,542,227 | 1,264,316 | 1,338,366 | 21,430,025 | 21,203,861 |
21
NOTE 15 - INVESTMENTS IN OTHER COMPANIES
In accordance with Circular 1501, no information was reported since this balance represents less than 10% of Other assets.
NOTE 16 – GOODWILL AND NEGATIVE GOODWILL
| March 31, 2007 | March 31, 2006 | ||
| Amortization during the period | Goodwill balance | Amortization during the period | Goodwill balance |
Company | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
|
|
|
|
|
RIO DE JANEIRO REFRESCOS LTDA. | 906,422 | 41,126,649 | 908,353 | 44,848,349 |
EMBOTELLADORA DEL ATLANTICO S.A. | 706,241 | 25,468,616 | 707,782 | 28,355,329 |
VITAL S. A. | 36,706 | 491,873 | 16,532 | 644,759 |
TOTAL | 1,649,369 | 67,087,138 | 1,632,667 | 73,848,437 |
NOTE 17 - INTANGIBLES
In accordance with Circular 1501, no information was reported since the balance represents less than 10% of Other assets.
NOTE 18 - OTHER LONG TERM ASSETS
| March 31, | |
| 2007 | 2006 |
| ThCh$ | ThCh$ |
Bonds |
|
|
Celulosa Arauco S.A. | 12,296,180 | 12,298,760 |
Enap S.A. | 9,510,950 | 9,640,946 |
Endesa S.A. | 8,139,176 | 8,216,200 |
Chile Soberano | 7,721,798 | 7,768,520 |
Compañía Manufacturera de Papeles y Cartones S.A. | 7,470,601 | 7,474,287 |
Teléfonos de México S.A. | 7,211,210 | 7,224,731 |
Petróleos Mexicanos S.A. | 6,360,546 | 7,641,449 |
Codelco S.A. | 5,477,208 | 5,540,047 |
México Soberano | 4,997,217 | 5,045,965 |
Federal Home Loan Bank (FHLB) | 2,701,738 | 2,708,682 |
Raytheon Company | 2,188,373 | 2,198,409 |
International Paper Company | 2,156,840 | 2,161,547 |
Brasil Telecom S.A. | 2,131,829 | 2,198,117 |
Altria Group | 1,228,787 | 1,246,107 |
United States Treasury Notes | 1,110,614 | 0 |
Alcoa Inc. | 1,098,453 | 1,104,313 |
CLN Endesa -Deutsche Bank A.G. | 5,392,100 | 5,403,869 |
CLN GMAC - Deutsche Bank A.G. | 0 | 1,750,853 |
CLN Ford-Deutsche Bank A.G. | 0 | 1,621,161 |
Cross Currency Swap | 11,043,859 | 24,475,950 |
Judicial Deposits (Brazil) | 5,661,433 | 4,790,118 |
Issuance Bond Placement | 2,909,750 | 3,257,671 |
Prepaid expenses | 2,906,454 | 1,808,358 |
Spare parts | 2,899,576 | 2,074,602 |
Non operating assets | 1,208,415 | 119,449 |
Others | 1,611,158 | 1,478,242 |
|
|
|
Total | 115,434,265 | 129,248,353 |
22
NOTE 19 - SHORT-TERM BANK LIABILITIES
a)
Short Term
| Currency or Indexation Adjustment | |||||
| US Dollars | Other foreign currencies | TOTAL | |||
Bank or Financial Institution | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
BANCO CITIBANK N.A. | 0 | 6,025,174 | 0 | 0 | 0 | 6,025,174 |
DEXIA BANK BELGIUM | 0 | 22,506,297 | 0 | 0 | 0 | 22,506,297 |
BANCO ITAÚ | 0 | 0 | 0 | 1,003,770 | 0 | 1,003,770 |
Total | 0 | 28,531,471 | 0 | 1,003,770 | 0 | 29,535,241 |
Outstanding Balance | 0 | 6,025,174 | 0 | 1,003,770 | 0 | 7,028,944 |
| March 31, 2007 | March 31, 2006 |
|
|
|
|
Annual average interest rate (%) |
| 5.14% |
|
|
|
|
|
|
|
|
|
|
|
Foreign currency liabilities (%) | 100.00 |
|
|
|
|
|
Local currency liabilities (%) | 0.00 |
|
|
|
|
|
b)
Long term – Portion Short Term
| Currency or indexation adjustment | |||
| Other foreign currencies | TOTAL | ||
Bank | March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ |
BANCO BOSTON | 0 | 136,967 | 0 | 136,967 |
BANCO SANTANDER | 336,884 | 371,110 | 336,884 | 371,110 |
BANCO ALFA | 115,208 | 0 | 115,208 | 0 |
Total | 452,092 | 508,077 | 452,092 | 508,077 |
Principal Due | 452,092 | 501,340 | 452,092 | 501,340 |
|
|
|
|
|
| Other foreign currencies |
|
| |
| March 31, 2007 | March 31, 2006 |
|
|
Average annual interest rate | 15.66% | 12.49% |
|
|
|
|
|
|
|
Foreign currency liabilities (%) | 100.00 |
|
|
|
Local currency liabilities (%) | 0.00 |
|
|
|
NOTE 20 - OTHER CURRENT LIABILITIES
In accordance with Circular 1501, no information was reported since this balance represents less than 10% of current liabilities.
23
NOTE 21 - LONG-TERM BANK LIABILITIES
|
| Years to Maturity |
|
|
| ||
Bank or Financial Institution | Currency | More than 1 up to 2 | More than 2 up to 3 | More than 3 up to 5 | Total long term at March 31, 2007 | Average annual interest rate % | Total long term at March 31, 2006 |
|
| ThCh$ | ThCh$ |
| ThCh$ |
| ThCh$ |
BANCO ALFA | Other Currencies | 109,838 | 109,839 | 109,839 | 329,516 | 15.59% | 0 |
BANCO BOSTON | Other Currencies | 0 | 0 | 0 | 0 |
| 12,225 |
BANCO SANTANDER | Other Currencies | 0 | 0 | 0 | 0 |
| 393,401 |
| Total | 109,838 | 109,839 | 109,839 | 329,516 |
| 405,626 |
Foreign currency liabilities (%) | 100.00 |
|
|
|
|
|
|
NOTE 22 - LONG-AND SHORT-TERM BONDS PAYABLE (PROMISSORY NOTES AND BONDS)
1.
Current risk rating of bonds is as follows:
BONDS ISSUED IN THE US MARKET
A-
:
Rating according to Fitch Ratings Ltd.
BBB+
:
Rating according to Standard & Poor's
BONDS ISSUED IN THE LOCAL MARKET
AA
:
Rating according to Fitch Chile Clasificadora de Riesgo Ltda.
AA
:
Rating according to Feller Rate Clasificadora de Riesgo Ltda.
2.
Bond repurchases.
During 2000, 2001 and 2002, Embotelladora Andina S.A. repurchased bonds issued in the U.S. market through its subsidiary, Abisa Corp S.A. for a total amount of US$314 million of the US$350 million, which are presented deducting the long term liability from the bonds payable account.
3.
Bonds issued by the subsidiary Rio de Janeiro Refrescos Ltda. (RJR).
The subsidiary RJR has liabilities corresponding to an issuance of bonds for US$75 million maturing in December 2012 and semiannual interest payments. At period end, all such bonds are wholly-owned by the subsidiary Abisa Corp. Consequently, the effects of such transactions have been eliminated from these consolidated financial statements, both in the balance sheet and in the consolidated statement of income.
24
The following table contains more information on Bonds Payable:
Instrument subscription or ID N° | Series | Nominal Value | Currency | Interest rate | Final Maturity | Term |
| Par Value | Placement in Chile or abroad | |
|
|
|
| % |
| Interest paid | Amortization period | March 31, 2007 | March 31, 2006 | |
Current portion of bonds payable |
|
|
|
|
|
|
|
|
|
|
YANKEE BONDS | A | 32,076,000 | US$ | 7.000 | October 1, 2007 | HALF YEARLY | 10 Years | 17,295,700 | 0 | ABROAD |
YANKEE BONDS | B | 4,000,000 | US$ | 7.625 | October 1, 2027 | HALF YEARLY | 30 Years | 0 | 0 | ABROAD |
Register 254 SVS June 13, 2001 | A | 990,000 | UF | 6.200 | June 1, 2008 | HALF YEARLY | JUN.2007 | 12,496,418 | 12,761,577 | CHILE |
Register 254 SVS June 13, 2001 | B | 3,700,000 | UF | 6.500 | June 1, 2026 | HALF YEARLY | DEC.2009 | 1,449,713 | 1,451,797 | CHILE |
Total current maturities |
|
|
|
|
|
|
| 31,241,831 | 14,213,374 |
|
-------- |
|
|
|
|
|
|
|
|
|
|
Long term portion of bonds payable |
|
|
|
|
|
|
|
|
|
|
YANKEE BONDS | A | 32,076,000 | US$ | 7.000 | October 1, 2007 | HALF YEARLY | 10 Years | 2,156,840 | 17,333,449 | ABROAD |
YANKEE BONDS | B | 4,000,000 | US$ | 7.625 | October 1, 2027 | HALF YEARLY | 30 Years | 0 | 2,161,547 | ABROAD |
Register 254 SVS June 13, 2001 | A | 990,000 | UF | 6.200 | June 1, 2008 | HALF YEARLY | JUN.2007 | 6,063,096 | 18,215,389 | CHILE |
Register 254 SVS June 13, 2001 | B | 3,700,000 | UF | 6.500 | June 1, 2026 | HALF YEARLY | DEC.2009 | 67,979,989 | 68,077,733 | CHILE |
Total long term maturities |
|
|
|
|
|
|
| 76,199,925 | 105,788,118 |
|
25
NOTE 23 - PROVISIONS AND WRITE-OFFS
| Short Term | Long Term | ||
| 2007 | 2006 | 2007 | 2006 |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ |
|
|
|
|
|
Staff severance indemnities | 818,576 | 449,356 | 5,649,655 | 5,204,171 |
Contingencies | 79,444 | 68,313 | 2,856,742 | 9,302,231 |
Taxation on banking transactions & social contribution(Brazil) | 2,178,362 | 0 | 9,017,177 | 9,979,080 |
TOTAL | 3,076,382 | 517,669 | 17,523,574 | 24,485,482 |
NOTE 24 - STAFF SEVERANCE INDEMNITIES
| 2007 | 2006 |
| ThCh$ | ThCh$ |
Beginning balance | 6,227,968 | 5,621,561 |
Provision for the period | 287,941 | 203,706 |
Payments | (47,678) | (171,740) |
Ending balance | 6,468,231 | 5,653,527 |
NOTE 25 - OTHER LONG-TERM LIABILITIES
In accordance with Circular 1501, no information was reported since this balance represents less than 10% of Long-term liabilities.
NOTE 26 - MINORITY INTEREST
Minority Interest | ||
|
|
|
| 2007 | 2006 |
LIABILITIES | ThCh$ | ThCh$ |
|
|
|
Vital Aguas S. A. | 1,206,762 | 1,198,321 |
Embotelladora del Atlántico S. A. | 21,018 | 19,399 |
Andina Inversiones Societarias S.A. | 39 | 60 |
| 1,227,819 | 1,217,780 |
|
|
|
|
|
|
| 2007 | 2006 |
INCOME STATEMENT | ThCh$ | ThCh$ |
|
|
|
Vital Aguas S. A. | (53,594) | (72,095) |
Embotelladora del Atlántico S. A. | (782) | (889) |
Andina Inversiones Societarias S.A. | (3) | (1) |
| (54,379) | (72,985) |
26
NOTE 27 - CHANGES IN SHAREHOLDERS’ EQUITY
The activity in Shareholders’ Equity, Dividend Distribution and Other Reserves is detailed in the following tables:
| March 31, 2007 | March 31, 2006 | ||||||||||
| Paid in Capital | Capital Revalued Reserve | Other Reserves | Accumulated Income | Interim Dividends | Net Income | Paid in Capital | Capital Revalued Reserve | Other Reserves | Accumulated Income | Interim Dividends | Net Income |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Beginning balance | 202,060,999 | 0 | 1,750,275 | 10,005,036 | (13,438,065) | 74,355,094 | 197,904,994 | 0 | (201,145) | 26,334,355 | (11,640,959) | 56,039,346 |
Distribution of prior-year income | 0 | 0 | 0 | 60,917,029 | 13,438,065 | (74,355,094) | 0 | 0 | 0 | 44,398,387 | 11,640,959 | (56,039,346) |
Translation adjustment reserve | 0 | 0 | 1,680,698 | 0 | 0 | 0 | 0 | 0 | 3,754,495 | 0 | 0 | 0 |
Capital revalued | 0 | 404,122 | 3,501 | 141,843 | 0 | 0 | 0 | (593,715) | 604 | (212,197) | 0 | 0 |
Income for the period | 0 | 0 | 0 | 0 | 0 | 22,258,689 | 0 | 0 | 0 | 0 | 0 | 21,034,955 |
Ending balance | 202,060,999 | 404,122 | 3,434,474 | 71,063,908 | 0 | 22,258,689 | 197,904,994 | (593,715) | 3,553,954 | 70,520,545 | 0 | 21,034,955 |
Price level restated balances |
|
|
|
|
|
| 203,248,429 | (609,745) | 3,649,911 | 72,424,600 | 0 | 21,602,899 |
27
Changes in Shareholders’ Equity Number of Shares | |||
Series | Subscribed Shares | Paid in shares | Number of shares with voting rights |
|
|
|
|
A | 380,137,271 | 380,137,271 | 380,137,271 |
B | 380,137,271 | 380,137,271 | 380,137,271 |
| Changes in Shareholders’ Equity Capital (ThCh$) | |
Series | Subscribed Capital | Paid in Capital |
| ThCh$ | ThCh$ |
A | 101,030,500 | 101,030,500 |
B | 101,030,499 | 101,030,499 |
Other Reserves |
|
|
|
|
|
|
|
|
|
|
|
Balance of Other Reserves is composed as follows |
|
|
|
|
|
| March 31, |
|
|
| |
| 2007 | 2006 |
|
|
|
| ThCh$ | ThCh$ |
|
|
|
|
|
|
|
|
|
Reserve for cumulative translation adjustments(1) | 2,423,423 | 2,637,990 |
|
|
|
Reserve for technical reappraisal of property, plant and equipment | 63,259 | 168,511 |
|
|
|
Other | 947,792 | 843,410 |
|
|
|
Total | 3,434,474 | 3,649,911 |
|
|
|
|
|
|
|
|
|
(1)The Reserve for cumulative translation adjustments was established in accordance with Technical Bulletin No. 64 issued by the Chilean Institute of Accountants and regulations specified under Circular letter No. 5,294 from the SVS. |
|
|
| ||
|
|
|
|
|
|
The activity in the Reserve for cumulative translation adjustments was as follows: |
|
|
|
| |
|
|
|
|
|
|
| Balance | Foreign exchange generated during the period | Reserve Release / Realized (*) | Balance |
|
Company | January 1, 2007 | Investment |
| March 31, 2007 |
|
| ThCh$ | ThCh$ |
| ThCh$ |
|
Rio de Janeiro Refrescos Ltda. | (784,132) | 949,407 | (13,130) | 152,145 |
|
Embotelladora del Atlántico S. A. | 1,526,854 | 744,424 | 0 | 2,271,278 |
|
Total | 742,722 | 1,693,831 | (13,130) | 2,423,423 |
|
|
|
|
|
|
|
28
Reserve realized in the amount of ThCh$(-13,130), resulted from dividends paid by our subsidiary Río de Janeiro Refrescos Ltda. for a total amount of ThUS$16,670 |
NOTE 28 - OTHER NON-OPERATING INCOME AND EXPENSES
| For the period ended March 31, | |
| 2007 | 2006 |
| ThCh$ | ThCh$ |
Other non-operating income during the period was as follows: |
|
|
Realization of deposits in guaranty over containers | 0 | 811,601 |
Conversion adjustment reserve realized (2) | 13,130 | 0 |
Other Income | 13,704 | 77,624 |
Sub-total | 26,834 | 889,225 |
Translation of Financial Statements (1) | 501,879 | 558,947 |
Total | 528,713 | 1,448,172 |
Other non-operating expenses during the period was as follows: |
|
|
Obsolescence and write-offs of property, plant and equipment | (24) | (5,019) |
Loss on sale of property, plant and equipment | (383,223) | (674,556) |
Provision for labor and commercial lawsuits | (128,016) | (127,766) |
Conversion adjustment reserve realized (2) | 0 | (166,592) |
Others | (137,253) | (125,355) |
Total | (648,516) | (1,099,288) |
|
|
|
(1) This refers to the effects of the translation of the financial statements corresponding to investment in foreign companies (translation of local currency to US dollars), in accordance with Technical Bulletin N°64 issued by the Chilean Institute of Accountants | ||
(2) This refers to the release of conversion adjustment reserves due to dividend payments carried out at our subsidiary Rio de Janeiro Refrescos Ltda. during the months of March 2007 | ||
|
|
|
NOTE 29 - PRICE-LEVEL RESTATEMENT
|
| March 31, 2007 | March 31, 2006 |
|
| ThCh$ | ThCh$ |
|
|
|
|
Assets - - (charges)/credits | Index |
|
|
Inventories | CPI | (80,628) | (245,677) |
Property, plant and equipment | CPI | 146,103 | (223,085) |
Investments in related companies | CPI | 352,615 | (434,977) |
Cash, Time Deposits, Marketable Securities | CPI | (7,565) | (21,863) |
Trade Accounts Receivable, Notes Receivable, Other Receivables | UF | 8 | (9) |
Trade Accounts Receivable, Notes Receivable, Other Receivables | CPI | 0 | (29) |
Accounts payable from related companies - short term | CPI | 102,699 | (113,829) |
Recoverable taxes | CPI | (4,643) | (8,929) |
Other current assets | UF | 34,641 | (589) |
Other current assets | CPI | (33,602) | 19,701 |
Goodwill | CPI | 0 | (2,468) |
Other long term assets | UF | 355 | 0 |
Other long term assets | CPI | 449,563 | (270,970) |
Cost and expense accounts | CPI | (16,357) | (17,058) |
Total (charges) credits |
| 943,189 | (1,319,782) |
|
|
|
|
Liabilities - - (charges)/credits |
|
|
|
Shareholders’ equity | CPI | (549,466) | 827,051 |
Short and long term bank liabilities | UF | (170,808) | 323,769 |
Short and long term bonds payable | CPI | (341,074) | 56,965 |
Accounts payable to related companies | UF | 0 | 3,006 |
Other current liabilities | UF | (358) | 551 |
Other current liabilities | CPI | (76,170) | (113,630) |
Other long term liabilities | CPI | (22,763) | 5,087 |
Income accounts | CPI | 20,590 | 21,584 |
Total (charges) credits |
| (1,140,049) | 1,124,383 |
29
Price-level restatement (loss ) gain |
| (196,860) | (195,399) |
NOTE 30 - FOREIGN EXCHANGE GAINS/LOSSES
| Currency | March 31, 2007 | March 31, 2006 |
|
| ThCh$ | ThCh$ |
Assets - (charges)/credits |
|
|
|
Cash | US$ | (38,307) | 67,292 |
Time deposits | US$ | 170 | 524 |
Marketable securities | US$ | 60,710 | 526,509 |
Other receivables | US$ | 93 | 235,734 |
Short term notes and accounts receivable related companies | US$ | 695,237 | 1,892,669 |
Inventories | US$ | (14,594) | 30,684 |
Other current assets | US$ | 122,958 | 78,812 |
Property, plant & equipment | US$ | 1,013 | 2,212 |
Other assets | US$ | 742,755 | 2,712,646 |
Total (charges) credits | US$ | 1,570,035 | 5,547,082 |
|
|
|
|
Liabilities - (Charges) / credits |
|
|
|
Bonds payable | US$ | (34,602) | (111,659) |
Accounts payable | US$ | (271) | 7,403 |
Provisions | US$ | (7,608) | 4,253 |
Bonds payable-long term | US$ | (207,625) | (563,810) |
Other current liabilities | US$ | (15,751) | 965 |
Notes and accounts payable related companies-long term | US$ | 5,916 | 0 |
Total (charges) credits | US$ | (259,941) | (662,848) |
Foreign exchange gain (loss) on income | US$ | 1,310,094 | 4,884,234 |
NOTE 31 - EXTRAORDINARY ITEMS
There were no extraordinary items in 2006 and 2005.
NOTE 32 - SHARE AND DEBT SECURITY ISSUE AND PLACEMENT EXPENSES
Bond issue and placement expenses are presented in Other current assets and Other long-term assets and are amortized on a straight-line basis over the term of the debt issued. Amortization is presented as financial expenses.
Bonds issued in the US market:
Debt issue costs and discounts have all been amortized, as a result of the repurchase of Bonds reported in note 22.
Bonds issued in the local market:
Debt issue costs and discounts amounted to ThCh$3,271,612. Disbursements for risk rating reports, legal and financial advisory services, printing and placement fees are included as Debt issue costs.
Amortization for the period 2007 amounted to ThCh$94,306 and ThCh$100,655 in 2006.
NOTE 33 - CONSOLIDATED STATEMENT OF CASH FLOWS
30
For the projection of future cash flows, there are no transactions and events to consider which have not been revealed in these financial statements and accompanying notes.
The following table presents an itemization of the movement of assets and liabilities not affecting the cash flow in the period, but compromising future cash flows.
| 2007 | Maturity Date | 2006 | Maturity Date |
| ThCh$ |
| ThCh$ |
|
Expected Cash Flows |
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
Dividend payments | (8,876,966) | 26-Apr-07 | (5,312,577) | 27-Apr-06 |
Additions to property, plant and equipment | (3,466,386) | 15-May-07 | (719,424) | 15-May-06 |
Additions to property, plant and equipment | (248,124) | 31-May-07 | (150,411) | 30-Jun-06 |
Additions to property, plant and equipment | (11,262) | 30-Jun-07 | (84,980) | 15-Sep-06 |
Additions to property, plant and equipment | (643,162) | 30-Apr-07 | (91,693) | 30-Apr-06 |
Additions to property, plant and equipment | 0 |
| (32,192) | 31-May-06 |
Additions to property, plant and equipment | 0 |
| (29,029) | 18-Jun-06 |
Total expenses | (13,245,900) |
| (6,420,306) |
|
|
|
|
|
|
|
|
|
|
|
Income |
|
|
|
|
Sale of property, plant and equipment | 22,860 | 15-May-07 | 6,315 | 15-May-06 |
Total Income | 22,860 |
| 6,315 |
|
|
|
|
|
|
Total Net | (13,223,040) |
| (6,413,991) |
|
31
NOTE 34 - DERIVATIVE CONTRACTS
|
|
|
|
|
| Hedged item or transaction |
| Assets/liabilities | Effect on income | |||
Derivative | Contract | Value | Maturity Period | Specific Item | Position purchase / sale | Concept | Amount | Hedged item value | Item | Amount | Realized | Unrealized |
|
| ThCh$ |
|
|
|
| ThCh$ | ThCh$ |
| ThCh$ | ThCh$ | ThCh$ |
SWAP | CCPE | 2,705,992 | 3Q07 | US$ Exchange Rate | S | Long term bonds US$ | 2,747,465 | 2,710,695 | Other current and long term assets | 1,134,634 | (55,248) | 65,978 |
SWAP | CCPE | 41,629,259 | 4Q07 | US$ Exchange Rate | S | Long term bonds US$ | 47,599,704 | 40,440,750 | Other current and long term assets | 9,027,984 | (319,562) | 1,265,062 |
SWAP | CCPE | 8,112,414 | 1Q08 | US$ Exchange Rate | S | Long term bonds US$ | 10,456,161 | 8,115,869 | Other current and long term assets | 3,403,054 | (143,447) | 229,528 |
SWAP | CCPE | 8,399,207 | 2Q08 | US$ Exchange Rate | S | Long term bonds US$ | 11,100,360 | 8,447,157 | Other current and long term assets | 3,520,472 | (3,110) | 647,163 |
SWAP | CCPE | 13,236,380 | 3Q08 | US$ Exchange Rate | S | Long term bonds US$ | 16,771,453 | 13,278,538 | Other current and long term assets | 5,453,744 | (213,803) | 673,089 |
SWAP | CCPE | 5,462,759 | 1Q13 | US$ Exchange Rate | S | Long term bonds US$ | 7,260,554 | 5,528,737 | Other current and long term assets | 2,285,076 | (87,367) | 1,015,123 |
FR | CCTE | 3,997,565 | 2Q07 | US$ Exchange Rate | P | Suppliers foreign currency | 4,101,231 | 0 | Other current assets and liabilities | 101,937 | 0 | 101,937 |
FR | CCTE | 16,180,062 | 2Q07 | US$ Exchange Rate | S | Dividends Payable | 15,865,250 | 0 | Other current assets and liabilities | 314,812 | 0 | (314,812) |
FR | CCTE | 893,749 | 2Q07 | US$ Exchange Rate | S | Suppliers foreign currency | 916,906 | 0 | Other current assets and liabilities | 22,757 | 0 | (22,757) |
FR | CCTE | 3,349,877 | 3Q07 | US$ Exchange Rate | P | Suppliers foreign currency | 3,434,768 | 0 | Other current assets and liabilities | 81,367 | 0 | 81,367 |
FR | CCTE | 964,126 | 3Q07 | US$ Exchange Rate | S | Suppliers foreign currency | 988,558 | 0 | Other current assets and liabilities | 23,417 | 0 | (23,417) |
FR | CCTE | 5,330,480 | 4Q07 | US$ Exchange Rate | P | Suppliers foreign currency | 5,461,658 | 0 | Other current assets and liabilities | 186,420 | 0 | 186,420 |
FR | CCTE | 1,262,989 | 4Q07 | US$ Exchange Rate | S | Suppliers foreign currency | 1,294,064 | 0 | Other current assets and liabilities | 44,269 | 0 | (44,269) |
FU | CCPE | 413,817 | 2Q07 | Raw Material Prices | S | Future purchases raw materials | 448,080 | 395,886 | Other current assets | 36,807 | 0 | 36,807 |
FU | CI | 129,976 | 2Q07 | Raw Material Prices | S | Future purchases raw materials | 0 | 0 | Other current assets | 25,150 | 165 | 0 |
FU | CCPE | 422,091 | 3Q07 | Raw Material Prices | S | Future purchases raw materials | 459,453 | 391,292 | Other current assets | 44,294 | 0 | 44,294 |
FU | CI | 355,504 | 3Q07 | Raw Material Prices | S | Future purchases raw materials | 0 | 0 | Other current assets | 74,503 | 522 | 0 |
FU | CCPE | 823,111 | 4Q07 | Raw Material Prices | S | Future purchases raw materials | 905,383 | 761,192 | Other current assets | 67,376 | 0 | 67,376 |
FU | CI | 326,882 | 4Q07 | Raw Material Prices | S | Future purchases raw materials | 0 | 0 | Other current assets | 70,954 | 539 | 0 |
FU | CCPE | 498,887 | 1Q08 | Raw Material Prices | S | Future purchases raw materials | 551,762 | 468,088 | Other current assets | 82,025 | 0 | 82,025 |
FU | CI | 421,706 | 1Q08 | Raw Material Prices | S | Future purchases raw materials | 0 | 0 | Other current assets | 84,082 | 688 | 0 |
32
NOTE 35 - CONTINGENCIES AND RESTRICTIONS
a.
Litigation and other legal actions:
Andina and its subsidiaries are involved or likely to be involved in material judicial or out-of-court litigation that, in the opinion of its legal advisors, could result in relevant gains or losses for the Company..
Current lawsuits and other legal actions are described below.
1)
Vital S.A.
The Chilean Internal Revenue Service has commenced a penal lawsuit against our subsidiary Vital S.A. and against those ultimately responsible for the application of tax losses. At the same time, a lawsuit has been filed for the recovery of income tax and the application of accumulated losses. The company’s legal advisors believe there is a remote or slight likelihood of a negative outcome in both procedures.
2)
Embotelladora del Atlántico S.A. faces labor and other lawsuits. Accounting provisions to back any probable loss contingency stemming from these lawsuits, amounts to ThCh$1,851,597(ThCh$1,779,454 in 2006). In accordance with its legal counsel’s opinion, the Company deems improbable that unstipulated contingencies may affect the results or equity of the Company.
3)
Rio de Janeiro Refrescos Ltda. faces labor, tax and other lawsuits. Accounting provisions to back any probable loss contingency arising from these lawsuits, amounts to ThCh$938,756 (ThCh$17,501,999 in 2006). In accordance with its legal counsel’s opinion, the Company deems improbable that unstipulated contingencies may affect the results or equity of the Company.
4)
Embotelladora Andina S.A. faces, labor, tax, commercial and other lawsuits. Accounting provisions to back any probable loss contingency stemming from these lawsuits, amounts to ThCh$47,847 (ThCh$68,313 in 2006). In accordance with its legal counsel’s opinion, the Company deems improbable that contingencies without provisions may affect the results or equity of the Company.
b.
Restrictions
The bond issue and placement on the US market for US$ 350 million is subject to certain restrictions against preventive attachments, sale and leaseback transactions, sale of assets, subsidiary debt and certain conditions in the event of a merger or consolidation.
The bond issue and placement in the Chilean market for UF 7,000,000 is subject to the following restrictions:
Leverage ratio, defined as the total financial debt/shareholder’s equity plus minority interest should be less than 1.20 times.
Financial debt shall be deemed Consolidated Finance Liabilities which include: (i) short-term bank liabilities, (ii) short-term portion of long-term bank liabilities, (iii) short-term bonds payable-promissory notes, (iv) short-term portion of bonds payable, (v) long-term bank liabilities, and (vi) long-term bonds payable. Consolidated equity means Total equity plus Minority Interest.
Consolidated assets are to be free of any pledge, mortgage or other encumbrance for an amount equal to at least 1.30 times the consolidated liabilities that are not guaranteed by the investee.
Andina must retain and, in no way, lose, sell, assign or dispose of to a third party the geographical zone denominated “Región Metropolitana", as a franchised territory in Chile by The Coca-Cola Company for the preparation, production, sale and distribution of the products and brands in accordance with the respective Bottling agreement, renewable from time to time.
Andina shall not lose, sell, assign or dispose of to a third party any other territory in Brazil or Argentina that is currently franchised to Andina by The Coca-Cola Company for the preparation, production, sale and distribution of the products and brands of the franchisor, as long as the referred territory represents more than forty percent of the Company’s Consolidated Operating Cash Flows.
33
c.
Direct guarantees
Guarantees at March 31, 2007 are presented on the following table:
| Debtor |
| Assets involved | Balances pending at end of period March 31 | |||
Guarantee creditor | Name | Relation | Type of guarantee | Type | Book value | 2007 | 2006 |
|
|
|
|
| ThCh$ | ThCh$ | ThCh$ |
ESTADO RIO DE JANEIRO | RIO DE JANEIRO REFRESCOS LTDA. | Subsidiary | Mortgage | Real Estate Deposit | 12,143,666 | 10,679,401 | 10,146,493 |
UNIAO FEDERAL | RIO DE JANEIRO REFRESCOS LTDA. | Subsidiary | Mortgage | Real Estate Deposit | 0 | 0 | 68,835 |
ADUANA DE BUENOS AIRES | EMBOTELLADORA DEL ATLANTICO S.A. | Subsidiary | Guaranty | Inventories | 2,240,331 | 0 | 3,536,710 |
ADUANA DE EZEIZA | EMBOTELLADORA DEL ATLANTICO S.A. | Subsidiary | Guaranty | Inventories | 10,088 | 0 | 0 |
AGA S.A. | EMBOTELLADORA ANDINA S.A. | Parent Company | Guaranty Receipt | Agreement | 0 | 161,763 | 162,116 |
FIDAE 2006 | EMBOTELLADORA ANDINA S.A. | Parent Company | Rental Space | Rental Space | 0 | 0 | 4,600 |
NOTE 36 - GUARANTEES FROM THIRD PARTIES
Guarantor | Relationship | Type of Guarantee | Amount | Currency | Transaction |
|
|
| ThCh$ |
|
|
Russel W. Coffin | Subsidiary | Letter of Credit | 45,019,908 | USD | Purchase of Nitvitgov Refrigerantes S.A. |
CONFAB | Subsidiary | Mortgage | 30,000,000 | USD | Purchase of Rio de Janeiro Refrescos Ltda. |
Other clients | Subsidiary | Deposits | 2,151,853 | USD | Guaranty over containers |
Soc. Com. Champfer | Subsidiary | Mortgage | 1,038,822 | USD | Distributor credit |
AGA S.A. | Parent Company | Receipt | 600,000 | USD | Supplier Agreement |
Mac Coke Dist. Beb. | Subsidiary | Mortgage | 585,252 | USD | Distributor credit |
Franciscana Dist. | Subsidiary | Mortgage | 516,972 | USD | Distributor credit |
Dist. Real Cola (Apucarana) | Subsidiary | Mortgage | 507,218 | USD | Distributor credit |
Zulmer Comércio de Bebidas | Subsidiary | Mortgage | 414,553 | USD | Distributor credit |
ASXT Fluminense Distrib.Bebidas | Subsidiary | Mortgage | 351,151 | USD | Distributor credit |
Motta Distribuidora de Beb | Subsidiary | Mortgage | 317,011 | USD | Distributor credit |
Aguiar Distrib.de Bebidas Ltda | Subsidiary | Mortgage | 292,626 | USD | Distributor credit |
Rosas de Casimiro | Subsidiary | Mortgage | 277,995 | USD | Distributor credit |
Clauver Nova Dist Beb Ltda | Subsidiary | Mortgage | 170,698 | USD | Distributor credit |
Catering Argentina S.A. | Subsidiary | Guaranty | 126,714 | USD | Supplier |
34
NOTE 37 - LOCAL AND FOREIGN CURRENCY - ASSETS
|
| March 31, 2007 | March 31, 2006 |
| Currency | Amount | Amount |
|
| ThCh$ | ThCh$ |
Current Assets |
|
|
|
Cash | Non-indexed Ch$ | 6,802,689 | 3,017,913 |
- | US$ | 6,645,431 | 6,667,492 |
- | AR$ | 836,158 | 1,653,445 |
- | R$ | 4,207,535 | 4,108,981 |
Time Deposits | R$ | 200,402 | 3,859,369 |
- | Non-indexed Ch$ | 0 | 29,750,604 |
- | US$ | 3,386,185 | 22,750,192 |
| EURO | 0 | 10,036,214 |
Marketable Securities | Non-indexed Ch$ | 15,743,194 | 10,978,089 |
- | US$ | 28,709,102 | 4,621,610 |
- | R$ | (37,627) | 2,342,768 |
- | AR$ | 2,280,158 | 0 |
Trade Accounts Receivable | Non-indexed Ch$ | 13,898,615 | 12,519,159 |
- | US$ | 1,010,468 | 766,211 |
- | AR$ | 1,553,962 | 1,252,660 |
- | R$ | 12,291,379 | 8,293,229 |
Notes Receivable | Non-indexed Ch$ | 5,793,543 | 5,121,132 |
- | AR$ | 241,568 | 317,227 |
- | R$ | 2,849,485 | 1,958,876 |
Other debtors | Non-indexed Ch$ | 1,806,108 | 2,306,711 |
- | US$ | 578,653 | 10,254,070 |
- | AR$ | 950,594 | 631,354 |
- | R$ | 6,662,252 | 6,892,934 |
Notes receivable related companies | Non-indexed Ch$ | 1,442,763 | 1,274,194 |
- | R$ | 0 | 321,521 |
Inventories | Non-indexed Ch$ | 2,043,488 | 1,930,181 |
- | Indexed Ch$ | 2,722,420 | 2,992,457 |
- | US$ | 1,661,035 | 2,186,113 |
- | AR$ | 4,909,740 | 3,146,201 |
- | R$ | 10,956,399 | 7,799,878 |
Recoverable taxes | Indexed Ch$ | 401,937 | 363,108 |
- | AR$ | 1,124,609 | 1,264,687 |
- | R$ | 6,068,013 | 5,794,504 |
- | US$ | 1,384,699 | 752,978 |
Prepaid expenses | Non-indexed Ch$ | 1,017,505 | 1,673,337 |
- | US$ | 13,601 | 125,725 |
- | AR$ | 240,353 | 194,357 |
- | R$ | 529,039 | 258,931 |
Deferred Taxes | Non-indexed Ch$ | 87,189 | 0 |
- | AR$ | 274,825 | 0 |
Other Current assets | Non-indexed Ch$ | 2,113,967 | 1,445,556 |
- | US$ | 14,738,944 | 3,575,627 |
- | AR$ | 676,391 | 1,804,014 |
- | R$ | 1,663,778 | 1,770,911 |
Property, plant and equipment |
|
|
|
Property, plant and equipment | Indexed Ch$ | 63,847,816 | 64,090,028 |
- | US$ | 81,137,429 | 79,389,345 |
Other assets |
|
|
|
Investment in related companies | Indexed Ch$ | 16,719,094 | 18,561,738 |
- | US$ | 1,080,214 | 1,190,240 |
- | R$ | 3,630,717 | 1,451,883 |
Investment in other companies | US$ | 13,552 | 13,582 |
- | Indexed Ch$ | 42,649 | 42,686 |
Goodwill | Indexed Ch$ | 491,873 | 644,759 |
- | US$ | 66,595,265 | 73,203,678 |
Long term debtors | AR$ | 18,104 | 30,646 |
- | Indexed Ch$ | 20,499 | 61,585 |
Notes receivable related companies | Indexed Ch$ | 36,176 | 34,831 |
Intangibles | US$ | 430,378 | 431,318 |
Amortization | US$ | (264,635) | (249,762) |
Others | Non-indexed Ch$ | 5,663,172 | 5,791,842 |
- | US$ | 95,292,807 | 115,719,914 |
- | AR$ | 4,078,951 | 2,564,370 |
- | R$ | 7,552,287 | 5,118,828 |
- | Indexed Ch$ | 2,847,048 | 53,399 |
Deferred Taxes | AR$ | 0 | 356,220 |
Total Assets | Non-indexed Ch$ | 56,412,233 | 75,808,718 |
| US$ | 302,413,128 | 321,398,333 |
| AR$ | 17,185,413 | 13,215,181 |
| R$ | 56,573,659 | 49,972,613 |
| EURO | 0 | 10,036,214 |
| Indexed Ch$ | 87,129,512 | 86,844,591 |
35
NOTE 37 - LOCAL AND FOREIGN CURRENCY - SHORT-TERM LIABILITIES
| Currency |
| Up to 90 days | 90 days to 1 year | ||||||
|
|
| March 31, 2007 | March 31, 2006 | March 31, 2007 | March 31, 2006 | ||||
|
|
| Amount | Int. Rate | Amount | Int. Rate | Amount | Int. Rate | Amount | Int. Rate |
|
|
| ThCh$ | % | ThCh$ | % | ThCh$ | % | ThCh$ | % |
|
|
|
|
|
|
|
|
|
|
|
Short term bank liabilities | Non-Indexed Ch$ |
| 0 |
| 6,025,174 | 7.00 | 0 |
| 0 |
|
- | US$ |
| 0 |
| 0 |
| 0 |
| 22,506,297 | 6.51 |
- | R$ |
| 0 |
| 1,003,770 |
| 0 |
| 0 |
|
Long term bank liabilities | R$ |
| 0 |
| 0 |
| 452,092 | 15.66 | 508,077 | 12.49 |
Bonds payable | Indexed Ch$ |
| 7,883,051 | 6.20 | 8,141,578 | 6.20 | 6,063,080 | 6.20 | 6,071,793 | 6.20 |
- | US$ |
| 0 |
| 0 |
| 17,295,700 | 7.00 | 0 |
|
Dividends payable | Non-Indexed Ch$ |
| 215,700 |
| 221,385 |
| 0 |
| 0 |
|
Accounts payable | Non-Indexed Ch$ |
| 18,119,465 |
| 18,432,375 |
| 0 |
| 0 |
|
| US$ |
| 1,445,009 |
| 677,933 |
| 0 |
| 0 |
|
| AR$ |
| 5,647,590 |
| 6,344,632 |
| 0 |
| 0 |
|
| R$ |
| 11,120,028 |
| 10,859,646 |
| 0 |
| 0 |
|
- | Other Currencies |
| 0 |
| 15,199 |
| 0 |
| 0 |
|
Other creditors | US$ |
| 219,063 |
| 0 |
| 0 |
| 0 |
|
- | AR$ |
| 46,632 |
| 54,585 |
| 76,049 |
| 47,893 |
|
| R$ |
| 4,579,202 |
| 3,420,000 |
| 0 |
| 0 |
|
- | Non-Indexed Ch$ |
| 8,684 |
| 0 |
| 0 |
|
|
|
Notes and accounts payable related companies | Non-Indexed Ch$ |
| 3,607,589 |
| 5,068,815 |
| 0 |
| 0 |
|
- | US$ |
| 0 |
| 146,314 |
| 0 |
| 0 |
|
| AR$ |
| 1,578,610 |
| 0 |
| 0 |
| 0 |
|
| R$ |
| 3,587,816 |
| 1,201,245 |
| 0 |
| 0 |
|
Provisions | Non-Indexed Ch$ |
| 866,438 |
| 517,669 |
| 0 |
| 0 |
|
Withholdings | R$ |
| 0 |
| 0 |
| 2,209,944 |
|
|
|
| Non-Indexed Ch$ |
| 5,720,153 |
| 5,208,344 |
| 0 |
| 0 |
|
- | AR$ |
| 3,866,992 |
| 3,106,725 |
| 0 |
| 0 |
|
- | R$ |
| 0 |
| 0 |
| 2,365,598 |
| 3,636,452 |
|
- | Other Currencies |
| 0 |
| 81,974 |
| 0 |
| 0 |
|
Income Tax Provision | Non-Indexed Ch$ |
| 3,068,891 |
| 2,689,785 |
| 0 |
| 0 |
|
| AR$ |
| 1,632,032 |
| 0 |
| 0 |
| 208,740 |
|
- | R$ |
| 0 |
| 0 |
| 1,038,366 |
| 1,575,408 |
|
Unearned Income | Non-Indexed Ch$ |
| 544,034 |
| 507,231 |
| 0 |
| 0 |
|
Deferred Taxes | $AR |
| 0 |
| 0 |
| 0 |
| 117,646 |
|
| Non-Indexed Ch$ |
| 0 |
| 508,207 |
| 0 |
| 0 |
|
Other current liabilities | Non-Indexed Ch$ |
| 4,084,431 |
| 3,279,340 |
| 0 |
| 0 |
|
Total Current Liabilities |
|
|
|
|
|
|
|
|
|
|
| Non-Indexed Ch$ |
| 36,235,385 |
| 42,458,325 |
| 0 |
| 0 |
|
| US$ |
| 1,664,072 |
| 824,247 |
| 17,295,700 |
| 22,506,297 |
|
| AR$ |
| 12,771,856 |
| 9,505,942 |
| 76,049 |
| 374,279 |
|
| R$ |
| 19,287,046 |
| 16,484,661 |
| 6,066,000 |
| 5,719,937 |
|
| Indexed Ch$ |
| 7,883,051 |
| 8,141,578 |
| 6,063,080 |
| 6,071,793 |
|
| Other Currencies |
| 0 |
| 97,173 |
| 0 |
| 0 |
|
36
NOTE 37 - LOCAL AND FOREIGN CURRENCY - SHORT-TERM LIABILITIES
Currency | 1 to 3 years | 3 to 5 years | 5 to 10 years | Over 10 years | |||||
|
| Amount | Average int rate % | Amount | Average int rate % | Amount | Average int rate % | Amount | Average int rate % |
|
| ThCh$ |
| ThCh$ |
| ThCh$ |
| ThCh$ |
|
Current portion of long term bank liabilities | R$ | 329,516 |
| 0 |
| 0 |
| 0 |
|
Bonds payable | US$ | 0 |
| 0 |
| 0 |
| 2,156,856 | 7.63 |
- | Indexed Ch$ | 8,062,492 | 6.27 | 7,997,646 | 6.50 | 19,994,114 | 6.50 | 37,988,817 | 6.50 |
Other creditors | AR$ | 111,289 |
| 0 |
| 0 |
| 0 |
|
- | R$ | 0 |
| 30,874 |
| 0 |
| 0 |
|
Notes and accounts payable related companies | Non indexed Ch$ | 3,457,140 |
| 0 |
| 0 |
| 0 |
|
Provisions | Non indexed Ch$ | 682,608 |
| 0 |
| 0 |
| 4,967,047 |
|
- | AR$ | 1,851,597 |
| 0 |
| 0 |
| 0 |
|
- | R$ | 10,022,322 |
| 0 |
| 0 |
| 0 |
|
Deferred taxes | Non indexed Ch$ | 0 |
| 0 |
| 860,461 |
| 0 |
|
- | AR$ | 0 |
| 324,229 |
| 0 |
| 0 |
|
- | R$ | 2,754,550 |
| 0 |
| 0 |
| 0 |
|
Other liabilities | Non indexed Ch$ | 0 |
| 0 |
| 5,428,570 |
| 0 |
|
- | AR$ | 0 |
| 217,084 |
| 1,953,755 |
| 0 |
|
- | R$ | 2,730,728 |
| 0 |
| 0 |
| 0 |
|
Total Long term liabilities |
|
|
|
|
|
|
|
|
|
| R$ | 15,837,116 |
| 30,874 |
| 0 |
| 0 |
|
| US$ | 0 |
| 0 |
| 0 |
| 2,156,856 |
|
| Indexed Ch$ | 8,062,492 |
| 7,997,646 |
| 19,994,114 |
| 37,988,817 |
|
| AR$ | 1,962,886 |
| 541,313 |
| 1,953,755 |
| 0 |
|
| Non indexed Ch$ | 4,139,748 |
| 0 |
| 6,289,031 |
| 4,967,047 |
|
|
|
|
|
|
|
|
|
|
37
NOTE 37 - LOCAL AND FOREIGN CURRENCY - LONG TERM LIABILITIES AS OF MARCH 31, 2006
| Currency | 1 to 3 years | 3 to 5 years | 5 to 10 years | Over 10 years | ||||
|
| Amount | Average int rate % | Amount | Average int rate % | Amount | Average int rate % | Amount | Average int rate % |
|
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ||||
Long term bank liabilities | R$ | 405,626 | 12.49% | 0 |
| 0 |
| 0 |
|
Bonds Payable | US$ | 17,333,449 | 7.00% | 0 |
| 0 |
| 2,161,565 | 7.625% |
- | Indexed Ch$ | 18,215,389 | 6.20% | 6,006,857 | 6.50% | 20,022,857 | 6.50% | 42,048,001 | 6.50% |
Other creditors | AR$ | 103,827 |
| 0 |
| 0 |
| 0 |
|
| R$ | 0 |
| 77,359 |
| 0 |
| 0 |
|
Notes and accounts payable related companies | Non-indexed Ch$ | 3,838,273 |
| 0 |
| 0 |
| 0 |
|
Provisions | Indexed Ch$ | 0 |
| 0 |
| 0 |
| 5,156,255 |
|
- | Non-indexed Ch$ | 47,916 |
| 0 |
| 0 |
| 0 |
|
- | AR$ | 1,779,312 |
| 0 |
| 0 |
| 0 |
|
- | R$ | 17,501,999 |
| 0 |
| 0 |
| 0 |
|
Other liabilities | Non-indexed Ch$ | 0 |
| 4,704,270 |
| 0 |
| 0 |
|
| AR$ | 0 |
| 209,164 |
| 1,882,479 |
| 0 |
|
| R$ | 2,062,943 |
| 0 |
| 0 |
| 0 |
|
Total long term liabilities |
|
|
|
|
|
|
|
|
|
| R$ | 19,970,568 |
| 77,359 |
| 0 |
| 0 |
|
| US$ | 17,333,449 |
| 0 |
| 0 |
| 2,161,565 |
|
| Indexed Ch$ | 18,215,389 |
| 6,006,857 |
| 20,022,857 |
| 42,048,001 |
|
| AR$ | 1,883,139 |
| 209,164 |
| 1,882,479 |
| 0 |
|
| Non-indexed Ch$ | 3,886,189 |
| 4,704,270 |
| 0 |
| 0 |
|
| Indexed Ch$ | 0 |
| 0 |
| 0 |
| 5,156,255 |
|
38
NOTE 38 - PENALTIES
The Company has not been subject to penalties by the SVS or any other administrative authority.
NOTE 39 - SUBSEQUENT EVENTS
Shareholders’ Meeting Resolutions
At the Regular General Shareholders’ Meeting of Embotelladora Andina S.A., held yesterday, April 17, 2007 (hereinafter the “Meeting”), among other matters, the following was resolved:
1.
The distribution of the following amounts asFinal Dividend N° 155, on account of the fiscal year ending December 31, 2006:
·
Ch$11.120 (eleven pesos and one hundred and twenty cents) per Series A shares; and
·
Ch$12.232 (twelve pesos and two hundred and thirty two cents) per Series B shares.
This dividend will be available to shareholders beginningApril 26, 2007. Regarding payment of this dividend, the Shareholders’ Registry will close on April 20, 2007.
2.
The distribution of anAdditionalDividend N° 156 on account of retained earnings:
·
Ch$65.190 (sixty five pesos and one hundred and ninety cents) per Series A shares; and
·
Ch$71.709 (seventy one pesos and seven hundred and nine cents) per Series B shares.
This dividend will be available to shareholders beginningJuly 5, 2007. Regarding payment of this
dividend, the Shareholders Registry will close on June 28, 2007.
3.
The Meeting acknowledged and approved the amendment of the Company’s dividend safeguard and payment procedures that will be in full force and effect beginning with the previously mentioned Final Dividend N° 155. Current payment procedures, consisting of the payment of dividends within the first seven days at the Company’s corporate domicile and the following days at the offices of DCV, will no longer continue. The payment of dividends will now solely take place at the offices of DCV, located at Huérfanos 770, 22nd floor, Santiago, in coordination with Banco de Crédito e Inversiones S.A. (“BCI”). Hence, the new dividend payment procedure considers the participation of DCV Registros S.A., BCI and our Company.
Board Appointments and Committees
The following resolutions were adopted at the Regular Board of Directors Meeting held April 24, 2007:
1.
Mr.Juan Claro was ratified in his position ofChairman of the Boardof the Company.
2.
Mr. Salvador Said Somavía was appointed newVice-Chairman of the Board of the Company.
3.
TheExecutive Committee was elected, comprised of regular directorsJosé Antonio Garcés Silva, Arturo Majlis Albala, Gonzalo Said HandalandSalvador Said Somavía.
This Committee is also comprised, by virtue of office, by Mr.Juan Claro González, Chairman of the Board, and Mr.Jaime García Rioseco, Chief Executive Officer of the Company.
4.
The current composition of theArticle 50-bis Directors Committee(pursuant to the Companies Law) was ratified, which will continue to be comprised of Regular DirectorsJuan Claro González, José Antonio Garcés Silva andHeriberto Urzúa Sánchez. Mr. Claro will continue to be the Chairman of this Committee.
5.
The current composition of theAudit Committee under U.S. the Sarbanes–Oxley Actwas ratified, which will continue to be comprised of regular directorsJuan Claro González, José Antonio Garcés Silva andHeriberto Urzúa Sánchez. Mr. Claro will continue to be the Chairman of this Committee.
6.
Mr.Pedro Pellegrini Ripamonti, Corporate Legal Manager, was appointed representative or person authorized to receive notifications in absence of Mr.Renato Ramírez Fernández, General Manager.
39
There are no matters to be reported which have occurred between the closing period of March 31, 2007 and the date of preparation of these financial statements that may have an impact over Company assets, liabilities and/or results.
NOTE 40 - COMPANIES SUBJECT TO SPECIAL REGULATIONS
Andina and its subsidiaries are not subject to special regulations.
NOTE 41 – ENVIRONMENT
The Company has disbursed ThCh$696,138 to improve its industrial process, industrial waste metering equipment, laboratory analyses, environmental impact consultancy and other studies. Future commitments, which are all short-term and for the same concepts, amount to ThCh$2,585,311.
I.
ANALYSIS OF THE FINANCIAL RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2007.
Highlights
Consolidated operating income reached US$53.2 million during the first quarter of 2007, 14.8% growth when compared to the first quarter of 2006. Operating margin was 18.0%.
Consolidated sales volume grew 6.3% during the quarter, reaching 114.1 million unit cases.
During the quarter consolidated EBITDA totaled US$66.5 million, representing an increase of 10.1% compared to the first quarter of 2006. EBITDA margin was 22.5%.
Net income for the period reached US$41.3 million, 3.0% higher than the first quarter of 2006.
Comments from the Chief Executive Officer, Mr. Jaime Garcia R.
“We began 2007 with very good results. Particularly, our operation in Argentina had an exceptional performance during the quarter, of which we are proud. We are optimistic regarding the Company’s solid cash generation capacity for the remainder of 2007.”
CONSOLIDATED SUMMARY
First Quarter 2007 vs. First Quarter 2006
Andina achieved solid results in the first quarter of 2007 as a result of volume growth, an increase in real prices and positive macroeconomic environments in each market where the Company operates. The 4.4% average appreciation of the Brazilian real had a positive impact on the Company’s dollar-denominated costs. The Argentine peso and the Chilean peso remained relatively stable, depreciating on average 1.2% and 2.7%, respectively.
Consolidated sales volume for the first quarter of 2007 reached 114.1 million unit cases, an increase of 6.3% compared to the first quarter of 2006. Our three franchises contributed to this growth at different rates: Chile 5.5%; Brazil 4.6% and Argentina 9.9%.
As a result of higher volumes, price adjustments in each of the three countries, and a favorable exchange rate in Brazil upon translating figures, net sales amounted to US$295.4 million, a 14.0% improvement compared to the first three months of 2006.
Cost of sales per unit case increased 5.5%, mainly due to higher costs of certain raw materials such as sugar and increased labor costs, offset by the appreciation of the Brazilian real.
SG&A increased 17.1% due to higher volumes and increased freight fees resulting from higher fuel prices.
Consolidated operating income amounted to US$53.2 million, a 14.8% increase compared to the US$46.3 million reported in the same period of 2006. Operating margin was 18.0%, an increase of 10 basis points.
Finally, consolidated EBITDA amounted to US$66.5 million, a 10.1% improvement compared to the same period of the previous year. EBITDA margin was 22.5%, an increase of 80 basis points.
40
SUMMARY BY COUNTRY
CHILE
First Quarter 2007 vs. First Quarter 2006
During the first quarter of 2007, sales volume amounted to 38.9 million unit cases reflecting growth of 5.5%. Soft Drinks increased 5.5%; Waters remained in line with the previous year, while Juices increased 16.8%. The launch of Andina Gold 100% Naranja focused on the natural juice market, and Nestea (ready-to-drink tea) Lemon, Lemon Light and Peach flavors contributed to the growth in the Juice segment. In the Soft Drinks segment the Light category was enhanced with the launch of Coca-Cola Zero.
Net sales amounted to US$110.4 million, growth of 6.3%. This increase was a result of higher volumes and price increases, offset by the mix effect on income per unit case from the Juice and Waters categories.
Cost of sales per unit case decreased 1.0%. This lower cost is best explained by lower costs of PET resin and a lower depreciation, given that the useful life period of certain fixed assets came to an end.
Operating income amounted to US$28.3 million, an increase of 12.0% versus 2006. Operating margin was 25.7%, an increase of 130 basis points regarding the first quarter of 2006.
EBITDA amounted to US$ 33.6 million, 6.2% higher than the US$31.6 million recorded during the same quarter of the previous year. EBITDA margin was 30.4%, a decrease of 10 basis points regarding the first-three months of 2006.
BRAZIL
First Quarter 2007 vs. First Quarter 2006
Sales volume for the first quarter of 2007 amounted to 44.3 million unit cases, a 4.6% increase compared to the first three months of 2006. The low temperatures recorded in January 2007 in Rio de Janeiro, had a strong impact over this figure.
Net sales reached US$123.1 million, a 19.4% increase compared to the same period of 2006, and a 14.1% increase in terms of unit case. This growth is best explained by price adjustments during the period, in addition to the appreciation of the Brazilian real, which benefited the translation of the Company’s results into U.S. dollars.
Cost of sales per unit case posted growth of 12.6%, best explained by the effect of the conversion of figures (negatively affecting our costs), and increased prices on certain raw materials.
Operating Income reached US$18.5 million, a 14.3% increase, Operating margin was 15.0%, a decrease of 70 basis points.
Finally, EBITDA amounted to US$23.2 million, a 12.6% improvement compared to the US$20.6 million reported in the first quarter of 2006. EBITDA margin was 18.9%, a decrease of 110 basis points regarding the comparable period.
ARGENTINA
First Quarter 2007 vs. First Quarter 2006
Sales volume for the quarter reached 30.9 million unit cases, a 9.9% improvement compared to the same period of 2006, supported by the launch of Coca-Cola Zero in the Light category.
Net sales reached US$63.5 million, an increase of 16.4% compared to the US$54.5 million reported in the first quarter of 2006. The improvement in net sales is best explained by increased volumes and price adjustments that took place during the quarter, which were partially offset by the effect upon translating figures as a result of the depreciation of the Argentine peso (1.2% average for the period.)
Cost of sales per unit case increased 2.1%, best explained by higher labor costs as well as higher costs for certain raw materials, partially offset by the effects upon translating figures.
Operating Income totaled US$ 9.4 million, growth of 32.3%. Operating Margin was 14.8%, an increase of 170 basis points compared to the first quarter of 2006.
41
EBITDA reached US$12.8 million, an increase of 22.7%. EBITDA margin amounted to 20.1%, an increase of 100 basis points.
NON-OPERATING RESULTS
First Quarter 2007 vs. First Quarter 2006
Non-operating results totaled a loss of (US$3.9 million), which compares negatively to a lower accumulated loss of (US$0.2 million) recorded in the same period of the previous year.
This increased loss in the non-operating result line is best explained by:
·
Financial Expense/Income (Net): Reflecting a positive variation due to lower losses in theCross Currency Swap Agreements, resulting from a lower depreciation of the exchange rate during the first quarter 2007 compared to the first quarter 2006.
·
Price Level Restatement: Lower foreign exchange gains due to a lower increase of the exchange rate during the first quarter 2007 compared to the first quarter 2006 over the Company’s U.S. dollar asset position. Additionally, the U.S. dollar asset position is lower than that of the prior period.
·
Income Taxes: Increased given (i) the absorption of tax loss carry forwards in Argentina and Brazil, and (ii) increased taxable earnings.
Finally, net income amounted to US$41.3 million, an increase of 3.0% compared to the figure recorded in the first quarter 2006.
ANALYSIS OF THE BALANCE SHEET
As of March 31, 2007, the company’s financial assets amounted to US$ 337.8 million. These represent cash, investments in mutual funds, deposits, structured notes, corporate bonds and sovereign bonds. 71.6% of total financial investments are U.S. dollar-denominated. Nevertheless, through“Cross-Currency Swaps”agreements entered into during 2003 and 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 16.1%.
On the other hand, the Company’s total debt was US$ 200.7 million, with an average annual rate of 7.07% on U.S. dollar-denominated debt, and an average real annual rate of 6.40% on Chilean peso-denominated debt. The U.S. dollar-denominated debt represents 18.7% of total debt.
As a result, the Company holds a positive net cash position of US$ 137.1 million.
42
II.
MAIN INDICATORS
INDICATORS | Unit | mar-07 | dic-06 | mar-06 | Variance | |
LIQUIDITY |
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|
|
|
| |
| Current Ratio | Times | 1.59 | 1.30 | 1.68 | -0.09 |
| Acid Tests | Times | 1.38 | 1.12 | 1.52 | -0.14 |
| Working Capital | MCh$ | 17,587 | 22,229 | 46,983 | -29,396 |
ACTIVITY |
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|
| |
| Investments | MCh$ | 11,414 | 37,078 | 7,384 | 4,030 |
| Inventory turnover | Times | 4.02 | 15.42 | 4.50 | -0.48 |
| Days of inventory on hand | Days | 89.55 | 23.35 | 80.05 | 9.49 |
INDEBTEDNESS |
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| |
| Debt to equity ratio | % | 73.69% | 86.94% | 85.56% | -11.87% |
| Short-term liabilities to total liabilities | % | 48.96% | 52.86% | 43.87% | 5.09% |
| Long-term liabilities to total liabilities | % | 51.04% | 47.14% | 56.13% | -5.09% |
| Interest charges coverage ratio | Times | 20.32 | 23.50 | 15.70 | 4.62 |
PROFITABILITY |
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| |
| Return over equity | % | 7.75% | 27.10% | 7.52% | 0.23% |
| Return over total assets | % | 4.30% | 14.15% | 3.94% | 0.36% |
| Return over operating assets | % | 9.70% | 30.72% | 8.36% | 1.34% |
| Operating income | MCh$ | 28,688 | 95,387 | 24,987 | 3,701 |
| Operating margin | % | 18.01% | 17.41% | 17.89% | 0.12% |
| EBITDA (1) | MCh$ | 36,817 | 128,172 | 35,765 | 1,052 |
| EBITDA margin | % | 23.12% | 23.40% | 25.60% | -2.49% |
| Dividends payout ratio - Series A shares | % | 5.83% | 6.61% | 7.25% | -1.42% |
| Dividends payout ratio - Series B shares | % | 5.80% | 6.72% | 7.55% | -1.75% |
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| EBITDA (1) | Earnings before income taxes, interests, depreciation, amortization | ||||
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| and extraordinary items. |
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The main indicators contained in the table reflect for both periods the solid financial position and profitability of Embotelladora Andina S.A.
Although solid, liquidity indicators decrease during this period mainly due to the short term reclassification of the US$ 23 million in Yankee Bonds that expire in October of 2007.
Indicators of indebtedness improve mainly due to amortizations of the local bond for an approximate amount of MUS$23 carried out during June 2006 and December 2006. During the period net financial expenses amounted to Ch$1,378 million and earnings before interests and taxes amounted to Ch$27,990 million, achieving an interest coverage of 20.3 times, significantly higher than the previous period.
Operating profitability indicators and Profitability over Equity benefited from the reasons mentioned in paragraph I.
III.
ANALYSIS OF BOOK VALUES AND PRSENT VALUE OF ASSETS
With respect to the Company’s main assets the following should be noted:
Given the high rotation of the items that compose working capital, book values of current assets are considered to represent market values.
Fixed asset values in the Chilean companies are presented at restated acquisition cost. In the foreign companies, fixed assets are valued in accordance with Technical Bulletin N° 64 issued by the Chilean Institute of Accountants (controlled in historical dollars).
Depreciation is estimated over the restated value of assets along with the remaining useful economic life of each asset.
43
All fixed assets that are considered available for sale are held at their respective market values.
Investments in shares, in situations where the Company has a significant influence on the issuing company, are presented following the equity method. The Company’s participation in the results of the issuing company for each year has been recognized on an accrual basis, and unrealized results on transactions between related companies have been eliminated.
In summary, assets are valued in accordance with generally accepted accounting standards in Chile and the instructions provided by the Chilean Securities Commission, as shown in Note 2 of the Financial Statements.
IV.
ANALYSIS OF THE MAIN COMPONENTS OF CASH FLOW
Cash Flow (MCH$) | March 2007 MCh$ | March 2006 MCh$ | Variation MCh$ | Variation % |
Operating | 37,534 | 43,695 | (6,161) | -14 |
Financing | (7,850) | (4,712) | (3,138) | -67 |
Investment | (6,771) | 1,660 | (8,431) | 508 |
Net cash flow for the Period | 22,913 | 40,643 | (17,730) | 44 |
The Company generated positive net cash flow of MCh$22,913 during the quarter, analyzed as follows:
Operating activities generated a positive net cash flow of MCh$37,534 representing a negative variation regarding the previous year which amounted to Ch$6,161 million. Principally higher BAT payments in the Chilean franchise, specifically resulting from the fact that during 2006 said tax payment during the month of January is significantly reduced through the fiscal credit generated from anticipated sugar purchases and the situation is repeated during the first quarter of 2007. Additionally during 2007 payments to suppliers are higher than those carried out during 2006 and are partially offset by increased collections from clients.
Financing activities generated a negative cash flow of MCh$7,850 representing a negative variation of MCh$3,138 mainly explained by higher dividend payments and bank loans during 2007 regarding the same period of 2006.
Investment activities generated a negative cash flow of MCh$6,771; with a negative variation of MCh$8,431 regarding the previous year, mainly because during January of 2006 there were collections due to sale of permanent investments given the restructuring of the Water business, which does not occur during 2007. Additionally, during the first quarter of 2007 there are additions to property, plant and equipment which did not occur during the first quarter of 2006 and that will be destined to improve distribution centers of our Chilean franchise.
V.
ANALYSIS OF MARKET RISK
Interest Rate Risk
As of March 31, 2006 and 2007, the Company held 100% of its debt obligations at fixed-rates. Consequently, the risk fluctuation of market interest rates regarding the Company’s cash flow remains low.
Foreign Currency Risk
Income generated by the Company is linked to the currencies of the markets in which it operates. For the period the breakdown for each is the following:
Chilean peso:
37%
Brazilian real:
42%
Argentine peso:
21%
Since the Company’s sales are not linked to the United States dollar, the policy adopted for managing foreign exchange risk, this is the mismatch between assets and liabilities denominated in a given currency, has been to maintain financial investments in dollar-denominated instruments, for an amount at least equivalent to the dollar-denominated liabilities.
44
Additionally, it is Company policy to maintain foreign currency hedge agreements to lessen the effects of exchange risk in cash expenditures expressed in US dollars which mainly correspond to payment to suppliers for raw materials.
Accounting exposure of foreign subsidiaries (Brazil and Argentina) for the difference between monetary assets and liabilities, those denominated in local currency, and therefore, exposed to risks upon translation to the US dollar, are only covered when it is foreseen that it will result in significant negative differences and when the associated cost of said coverage is deemed reasonable by management.
Commodity Risks
The Company faces the risk of price changes in the international markets for sugar, aluminum and PET resin, all of which are necessary raw materials for preparing beverages, and that altogether represent between 25% and 30% of our operating costs. In order to minimize and/or stabilize such risk, supply contracts and advanced purchases are negotiated when market conditions are favorable. Likewise commodity coverage instruments have also been utilized.
This document 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.
MATERIAL EVENTS
During the period January – March 2007, the following material events were filed:
Dividend Distributions for the 2007 period:
Dividend N° | Date Paid | Series A Ch$ per share | Series B Ch$ per share |
154 | 31-Jan-07 | 5.60 | 6.16 |
No other significant events of a financial or any other nature have occurred between March 31, 2007 and the issuance date of these financial statements that affect or may affect the assets, liabilities and/or income of the Company.
45
Embotelladora Andina S.A. |
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First Quarter Results for the period ended March 31, Chilean GAAP |
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(In millions of constant 03/31/07 Chilean Pesos, except per share) |
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| 03/31/2007 | 03/31/2006 |
| ||||||
| Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | % Ch. |
VOLUME TOTAL BEVERAGES (Million UC) | 38.9 | 44.3 | 30.9 | 114.1 | 36.9 | 42.3 | 28.1 | 107.3 | 6.3% |
Soft Drink | 31.8 | 42.1 | 30.5 | 104.4 | 30.2 | 40.5 | 27.8 | 98.5 | 6.1% |
Mineral Water | 4.1 | 0.5 | 0.3 | 4.9 | 4.1 | 0.6 | 0.3 | 5.1 | -3.4% |
Juices | 3.0 | 0.7 | 0.1 | 3.8 | 2.6 | 0.4 | 0.0 | 2.9 | 28.9% |
Beer | NA | 1.0 | NA | 1.0 | NA | 0.9 | NA | 0.9 | 15.9% |
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|
|
|
|
|
NET SALES | 59,536 | 66,359 | 34,232 | 159,268 | 56,025 | 55,568 | 29,412 | 139,689 | 14.0% |
COST OF SALES | (32,819) | (37,742) | (20,814) | (90,516) | (31,417) | (32,030) | (18,548) | (80,679) | 12.2% |
GROSS PROFIT | 26,717 | 28,617 | 13,418 | 68,752 | 24,608 | 23,537 | 10,864 | 59,010 | 16.5% |
Gross Margin | 44.9% | 43.1% | 39.2% | 43.2% | 43.9% | 42.4% | 36.9% | 42.2% |
|
SELLING AND ADMINISTRATIVE EXPENSES | (11,434) | (18,644) | (8,341) | (38,419) | (10,965) | (14,814) | (7,025) | (32,805) | 17.1% |
CORPORATE EXPENSES | 0 | 0 | 0 | (1,645) | 0 | 0 | 0 | (1,218) | 35.0% |
OPERATING INCOME | 15,283 | 9,973 | 5,077 | 28,688 | 13,643 | 8,723 | 3,839 | 24,987 | 14.8% |
Operating Margin | 25.7% | 15.0% | 14.8% | 18.0% | 24.4% | 15.7% | 13.1% | 17.9% |
|
EBITDA (1) | 18,116 | 12,516 | 6,879 | 35,866 | 17,061 | 11,115 | 5,607 | 32,565 | 10.1% |
Ebitda Margin | 30.4% | 18.9% | 20.1% | 22.5% | 30.5% | 20.0% | 19.1% | 23.3% |
|
NON OPERATIONAL RESULTS |
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|
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|
|
|
|
|
|
FINANCIAL EXPENSE/INCOME (Net) |
|
|
| (1,747) |
|
|
| (3,864) | -54.8% |
RESULTS FROM AFFILIATED |
|
|
| 327 |
|
|
| 335 | -2.5% |
AMORTIZATION OF GOODWILL |
|
|
| (1,649) |
|
|
| (1,633) | 1.0% |
OTHER INCOME/(EXPENSE) |
|
|
| (622) |
|
|
| (210) | 195.9% |
PRICE LEVEL RESTATEMENT (3) |
|
|
| 1,615 |
|
|
| 5,248 | -69.2% |
NON-OPERATING RESULTS |
|
|
| (2,076) |
|
|
| (124) | 1572.1% |
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INCOME BEFORE INCOME TAXES; AMORTIZATION OF |
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NEGATIVE GOODWILL AND MINORITY INTEREST |
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| 26,612 |
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| 24,863 | 7.0% |
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INCOME TAXES |
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| (4,299) |
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| (3,187) | 34.9% |
MINORITY INTEREST |
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| (54) |
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| (73) | -25.5% |
AMORTIZATION OF NEGATIVE GOODWILL |
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| 0 |
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| 0 | NA |
NET INCOME |
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|
| 22,259 |
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|
| 21,603 | 3.0% |
Net Margin |
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| 14.0% |
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| 15.5% |
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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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| 29.3 |
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| 28.4 |
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EARNINGS PER ADS |
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| 175.7 |
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| 170.5 | 3.0% |
(1) EBITDA: Operating Income + Depreciation |
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(2) Total may be different from the addition of the three countries because of intercountry eliminations |
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(3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income Statement Accounts. |
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46
Embotelladora Andina S.A. |
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First Quarter Results for the period ended March 31, Chilean GAAP |
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(In millions US$, except per share) |
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| Exch. Rate : | 539.21 |
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| 03/31/2007 | 03/31/2006 |
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| Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | Chilean Operations | Brazilian Operations | Argentine Operations | Total (2) | % Ch. |
VOLUME TOTAL BEVERAGES (Million UC) | 38.9 | 44.3 | 30.9 | 114.1 | 36.9 | 42.3 | 28.1 | 107.3 | 6.3% |
Soft Drink | 31.8 | 42.1 | 30.5 | 104.4 | 30.2 | 40.5 | 27.8 | 98.5 | 6.1% |
Mineral Water | 4.1 | 0.5 | 0.3 | 4.9 | 4.1 | 0.6 | 0.3 | 5.1 | -3.4% |
Juices | 3.0 | 0.7 | 0.1 | 3.8 | 2.6 | 0.4 | 0.0 | 2.9 | 28.9% |
Beer | NA | 1.0 | NA | 1.0 | NA | 0.9 | NA | 0.9 | 15.9% |
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NET SALES | 110.4 | 123.1 | 63.5 | 295.4 | 103.9 | 103.1 | 54.5 | 259.1 | 14.0% |
COST OF SALES | (60.9) | (70.0) | (38.6) | (167.9) | (58.3) | (59.4) | (34.4) | (149.6) | 12.2% |
GROSS PROFIT | 49.5 | 53.1 | 24.9 | 127.5 | 45.6 | 43.7 | 20.1 | 109.4 | 16.5% |
Gross Margin | 44.9% | 43.1% | 39.2% | 43.2% | 43.9% | 42.4% | 36.9% | 42.2% |
|
SELLING AND ADMINISTRATIVE EXPENSES | (21.2) | (34.6) | (15.5) | (71.3) | (20.3) | (27.5) | (13.0) | (60.8) | 17.1% |
CORPORATE EXPENSES | 0.0 | 0.0 | 0.0 | (3.1) | 0.0 | 0.0 | 0.0 | (2.3) | 35.0% |
OPERATING INCOME | 28.3 | 18.5 | 9.4 | 53.2 | 25.3 | 16.2 | 7.1 | 46.3 | 14.8% |
Operating Margin | 25.7% | 15.0% | 14.8% | 18.0% | 24.4% | 15.7% | 13.1% | 17.9% |
|
EBITDA (1) | 33.6 | 23.2 | 12.8 | 66.5 | 31.6 | 20.6 | 10.4 | 60.4 | 10.1% |
Ebitda Margin | 30.4% | 18.9% | 20.1% | 22.5% | 30.5% | 20.0% | 19.1% | 23.3% |
|
NON OPERATIONAL RESULTS |
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FINANCIAL EXPENSE/INCOME (Net) |
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| (3.2) |
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| (7.2) | -54.8% |
RESULTS FROM AFFILIATED |
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| 0.6 |
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| 0.6 | -2.5% |
AMORTIZATION OF GOODWILL |
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| (3.1) |
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| (3.0) | 1.0% |
OTHER INCOME/(EXPENSE) |
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|
| (1.2) |
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| (0.4) | 195.9% |
PRICE LEVEL RESTATEMENT (3) |
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| 3.0 |
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| 9.7 | -69.2% |
NON-OPERATING RESULTS |
|
|
| (3.9) |
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|
| (0.2) | 1572.1% |
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INCOME BEFORE INCOME TAXES; AMORTIZATION OF |
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NEGATIVE GOODWILL AND MINORITY INTEREST |
|
|
| 49.4 |
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| 46.1 | 7.0% |
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INCOME TAXES |
|
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| (8.0) |
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|
| (5.9) | 34.9% |
MINORITY INTEREST |
|
|
| (0.1) |
|
|
| (0.1) | -25.5% |
AMORTIZATION OF NEGATIVE GOODWILL |
|
|
| 0.0 |
|
|
| 0.0 | NA |
NET INCOME |
|
|
| 41.3 |
|
|
| 40.1 | 3.0% |
Net Margin |
|
|
| 14.0% |
|
|
| 15.5% |
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|
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|
|
|
|
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|
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
|
| 760.3 |
|
|
| 760.3 |
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EARNINGS PER SHARE |
|
|
| 0.05 |
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|
| 0.05 |
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EARNINGS PER ADS |
|
|
| 0.33 |
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| 0.32 | 3.0% |
(1) EBITDA: Operating Income + Depreciation |
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(2) Total may be different from the addition of the three countries because of intercountry eliminations |
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| ||
(3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income Statement Accounts. |
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47
Embotelladora Andina S.A. | ||||||||
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Consolidated Balance Sheet | ||||||||
(In million of constant 03/31/07 Chilean Pesos) | ||||||||
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ASSETS | 31/03/2007 | 31/03/2006 | %Ch |
| LIABILITIES & SHAREHOLDERS' EQUITY | 31/03/2007 | 31/03/2006 | %Ch |
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|
|
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|
|
|
Cash + Time deposits + market. Securit. | 68,773 | 99,787 | -31.1% |
| Short term bank liabilities | 0 | 29,535 | -100.0% |
Account receivables (net) | 49,079 | 51,909 | -5.5% |
| Current portion of long term bank liabilities | 452 | 508 | -11.0% |
Inventories | 22,293 | 18,055 | 23.5% |
| Current portion of bonds payable | 31,242 | 14,213 | 119.8% |
Other current assets | 30,335 | 19,024 | 59.5% |
| Trade accounts payable and notes payable | 50,251 | 46,490 | 8.1% |
Total Current Assets | 170,481 | 188,775 | -9.7% |
| Other liabilities | 25,397 | 21,438 | 18.5% |
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|
|
|
| Total Current Liabilities | 107,342 | 112,184 | -4.3% |
Property, plant and equipment | 536,679 | 518,108 | 3.6% |
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|
|
|
|
Depreciation | (391,693) | (374,629) | 4.6% |
| Long term bank liabilities | 330 | 406 | -18.8% |
Total Property, Plant, and Equipment | 144,985 | 143,479 | 1.0% |
| Bonds payable | 76,200 | 105,788 | -28.0% |
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|
| Other long term liabilities | 35,392 | 37,364 | -5.3% |
Investment in related companies | 21,430 | 21,204 | 1.1% |
| Total Long Term Liabilities | 111,922 | 143,558 | -22.0% |
Investment in other companies | 56 | 56 | -0.1% |
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|
Goodwill | 67,087 | 73,848 | -9.2% |
| Minority interest | 1,228 | 1,218 | 0.8% |
Other long term assets | 115,675 | 129,913 | -11.0% |
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|
Total Other Assets | 204,248 | 225,021 | -9.2% |
| Stockholders' Equity | 299,222 | 300,316 | -0.4% |
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|
TOTAL ASSETS | 519,714 | 557,276 | -6.7% |
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 519,714 | 557,276 | -6.7% |
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Financial Highlights |
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(In million of constant 03/31/07 Chilean Pesos) |
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ADDITIONS TO FIXED ASSETS | 31/03/2007 | 31/03/2006 |
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| DEBT RATIOS | 31/03/2007 | 31/03/2006 |
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Chile | 6,803 | 3,257 |
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| Financial Debt / Total Capitalization | 0.26 | 0.33 |
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Brazil | 3,878 | 2,940 |
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| Financial Debt / EBITDA L12M | 0.84 | 1.34 |
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Argentina | 733 | 1,187 |
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| EBITDA L12M+Interest Income / Interest Expense L12M | 9.54 | 7.49 |
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| 11,414 | 7,384 |
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| L12M: Last twelve months |
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* As March 31, 2007, the company's registered a positive net cash position of US$ 137.1 million. Total debt amounted to US$ 200.7 million. |
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Total Cash amounted to US$ 337.8 million, which includes cash investments accounted for under Other Current Assets as well as Other Long Term Assets. |
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48
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, April 8, 2008