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
December 2009
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____
(Free translation of original in Spanish)
CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2009
CONTENTS
Consolidated Balance Sheets
Consolidated Statements of Income
Consolidated Statements of Cash Flows
Notes to the Consolidated Financial Statements
Analysis of Results for the Third Quarter of 2009 and the Nine Months Period ended September 30, 2009
Material Events
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
AR$
-
Argentine pesos
ThAR$
-
Thousands of Argentine pesos
UF
-
Unidades de Fomento (Chilean government inflation-indexed monetary units)
1
Consolidated Balance Sheets
(Figures in ThCh$ of September 30, 2009)
| For the period ended | |
ASSETS | September 30, | |
| 2009 | 2008 |
CURRENT ASSETS | ThCh$ | ThCh$ |
Cash | 26,922,265 | 14,005,100 |
Time deposits | 71,143,472 | 52,479,251 |
Marketable securities (net) | 23,086,244 | 39,763,748 |
Trade accounts receivable (net) | 35,492,023 | 30,817,213 |
Notes receivable (net) | 9,037,984 | 9,225,894 |
Other receivables (net) | 11,412,989 | 14,445,665 |
Notes and accounts receivable from related companies | 999,365 | 1,142,288 |
Inventories (net) | 30,439,384 | 27,465,895 |
Recoverable taxes | 3,865,647 | 4,498,778 |
Prepaid expenses | 3,375,702 | 2,933,642 |
Deferred income taxes | 2,484,166 | 5,075,710 |
Other current assets | 8,666,293 | 7,488,111 |
TOTAL CURRENT ASSETS | 226,925,534 | 209,341,295 |
|
|
|
PROPERTY, PLANT & EQUIPMENT |
|
|
Land | 18,864,810 | 18,802,788 |
Buildings & improvements | 116,545,084 | 111,261,291 |
Machinery and equipment | 281,696,266 | 262,460,874 |
Other property, plant & equipment | 267,938,901 | 252,408,287 |
Technical reappraisal of property, plant & equipment | 2,338,708 | 2,337,593 |
Depreciation | (477,071,935) | (448,299,932) |
TOTAL PROPERTY, PLANT & EQUIPMENT | 210,311,834 | 198,970,901 |
|
|
|
OTHER ASSETS |
|
|
Investments in related companies | 30,831,690 | 26,995,645 |
Investments in other companies | 139,301 | 125,361 |
Goodwill | 51,600,059 | 57,725,638 |
Long-term receivables | 5,809,362 | 19,901 |
Long-term notes and accounts receivable from related companies | 39,654 | 45,681 |
Intangibles | 675,969 | 1,440,708 |
Amortization | (184,908) | (167,769) |
Others | 27,182,003 | 24,221,124 |
TOTAL OTHER ASSETS | 116,093,130 | 110,406,289 |
TOTAL ASSETS | 553,330,498 | 518,718,485 |
The accompanying Notes 1 to 36 are an integral part of these consolidated financial statements.
2
Consolidated Balance Sheets
(Figures in ThCh$ of September 30, 2009)
| For the period ended | |
| September 30, | |
LIABILITIES AND SHAREHOLDERS' EQUITY | 2009 | 2008 |
| ThCh$ | ThCh$ |
Short-term bank liabilities | 1,154,399 | 10,577,428 |
Current portion of long-term bank liabilities | 257,402 | 121,846 |
Current portion of bonds payable | 6,178,492 | 1,639,517 |
Dividends payable | 5,796,060 | 5,735,264 |
Accounts payable | 60,124,181 | 45,289,666 |
Other creditors | 4,374,729 | 4,687,011 |
Notes and accounts payable to related companies | 12,827,637 | 9,028,676 |
Provisions | 5,745,789 | 3,744,814 |
Withholdings | 14,211,326 | 16,914,468 |
Income taxes payable | 3,884,714 | 2,701,076 |
Unearned income | 0 | 29,330 |
Other current liabilities | 632,728 | 4,426,190 |
TOTAL CURRENT LIABILITIES | 115,187,457 | 104,895,286 |
|
|
|
Long-term bank liabilities | 277,461 | 606,630 |
Bonds payable | 72,552,908 | 76,880,289 |
Other creditors | 17,266 | 59,229 |
Long-term notes and accounts payable to related companies | 2,653,147 | 3,140,468 |
Provisions | 15,218,596 | 15,903,046 |
Deferred income taxes | 17,177,251 | 14,258,604 |
Other long-term liabilities | 12,096,263 | 12,235,413 |
TOTAL LONG-TERM LIABILITIES | 119,992,892 | 123,083,679 |
Minority interest | 11,278 | 9,031 |
|
|
|
Paid-in capital | 236,327,716 | 214,843,378 |
Reserve capital revalued | (6,617,176) | 14,824,193 |
Other reserves | (7,478,664) | (5,118,357) |
Retained earnings | 95,906,995 | 66,181,275 |
Accumulated earnings | 52,845,734 | 22,511,313 |
Net income for the period | 54,209,357 | 54,933,394 |
Interim dividends | (11,148,096) | (11,263,432) |
TOTAL SHAREHOLDERS’ EQUITY | 318,138,871 | 290,730,489 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 553,330,498 | 518,718,485 |
The accompanying Notes 1 to 36 are an integral part of these consolidated financial statements.
3
Consolidated Statements of Income
(Figures in ThCh$ of September 30, 2009)
| For the period ended | |
| September 30, | |
| 2009 | 2008 |
| ThCh$ | ThCh$ |
|
|
|
Net sales | 532,207,201 | 551,040,295 |
Cost of sales | (302,590,274) | (304,013,908) |
Gross margin | 229,616,927 | 247,026,387 |
Administrative and selling expenses | (148,488,351) | (159,901,947) |
OPERATING INCOME | 81,128,576 | 87,124,440 |
|
|
|
Financial income | 4,769,797 | 9,297,603 |
Equity in earnings of equity investments | 1,344,680 | 663,520 |
Other non-operating income | 7,886,376 | 5,807,562 |
Equity in losses of equity investments | (31,569) | (68,734) |
Amortization of goodwill | (4,949,821) | (4,909,735) |
Financial expenses | (6,092,261) | (19,637,941) |
Other non-operating expenses | (3,683,698) | (10,931,549) |
Price level restatement | 1,470,301 | (1,763,482) |
Foreign exchange gains | (6,571,958) | 5,006,916 |
NON OPERATING INCOME AND EXPENSE | (5,858,153) | (16,535,840) |
|
|
|
Income before income taxes and extraordinary items | 75,270,423 | 70,588,600 |
Income tax expense | (21,059,841) | (15,654,380) |
Income before minority interest | 54,210,582 | 54,934,220 |
Minority interest | (1,225) | (826) |
NET INCOME FOR THE PERIOD | 54,209,357 | 54,933,394 |
The accompanying Notes 1 to 36 are an integral part of these consolidated financial statements.
4
Consolidated Statements of Cash Flow
(Figures in ThCh$ of September 30, 2009)
| For the period ended | |
| September 30, | |
| 2009 | 2008 |
| ThCh$ | ThCh$ |
|
|
|
Collection of trade receivables | 758,254,433 | 805,336,212 |
Financial income received | 6,438,908 | 27,392,375 |
Dividends received | 1,987,500 | 1,803,780 |
Other income received | 75,742 | 68,421 |
Payments to suppliers and personnel | (557,288,351) | (586,793,130) |
Interest paid | (9,495,402) | (22,382,362) |
Income taxes paid | (18,022,627) | (21,185,711) |
VAT and other tax payments | (96,322,784) | (111,915,019) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 85,627,419 | 92,324,566 |
|
|
|
Borrowings | 20,507,860 | 66,864,556 |
Dividend distribution | (54,415,189) | (66,176,037) |
Loan payments | (24,134,886) | (60,986,387) |
Bond payments | 0 | (6,718,438) |
NET CASH USED IN FINANCING ACTIVITIES | (58,042,215) | (67,016,306) |
|
|
|
Proceeds from sales of property, plant and equipment | 353,257 | 427,006 |
Proceeds from sales of other investments | 238,190 | 1,031,253 |
Other investment income | 0 | 85,376 |
Additions to property, plant & equipment | (36,153,891) | (45,960,561) |
Permanent investments | (916,322) | 0 |
Investments in financial instruments | 0 | (17,552,348) |
Other loans to related companies | (237,237) | 0 |
Other investment disbursements | 0 | (1,239,132) |
NET CASH USED IN INVESTMENT ACTIVITIES | (36,716,003) | (63,208,406) |
|
|
|
TOTAL NET CASH FOR THE PERIOD | (9,130,799) | (37,900,146) |
Effect of inflation on cash and cash equivalents | 5,862,562 | (5,268,365) |
Net (decrease) increase in cash and cash equivalents | (3,268,237) | (43,168,511) |
Cash and cash equivalents at beginning of period | 124,420,218 | 129,549,713 |
Cash and cash equivalents at end of period | 121,151,981 | 86,381,202 |
The accompanying Notes 1 to 36 are an integral part of these consolidated financial statements.
5
Reconciliation between Net Income and Net Cash Flows
Provided by Operating Activities
(Figures in ThCh$ of September 30, 2009)
| For the period ended | |
| September 30, | |
| 2009 | 2008 |
| ThCh$ | ThCh$ |
|
|
|
Net Income | 54,209,357 | 54,933,394 |
Income on sale of assets: | (180,886) | (139,778) |
(Gain) Loss on sale of property, plant and equipment | (172,795) | (128,609) |
(Gain) Loss on sale of other assets | (8,091) | (11,169) |
|
|
|
Adjustments to net income that do not represent movements of cash | 28,519,871 | 35,178,710 |
Depreciation | 24,500,758 | 25,997,125 |
Amortization of intangibles | 11,802 | 180,171 |
Write-offs and provisions | 848,916 | 822,166 |
Equity in earnings of equity investments | (1,344,680) | (663,520) |
Equity in losses of equity investments | 31,569 | 68,734 |
Amortization of goodwill | 4,949,821 | 4,909,735 |
Price level restatement | (1,470,301) | 1,763,482 |
Foreign exchange losses, net | 6,571,958 | (5,006,916) |
Other credits to income that do not represent cash flows | (5,640,890) | 0 |
Other charges to income that do not represent cash flows | 60,918 | 7,107,733 |
|
|
|
Changes in operating assets | 34,355,373 | 34,114,547 |
(Increase) decrease in trade accounts receivable | 56,095,229 | 29,686,059 |
(Increase) decrease in inventories | 2,672,636 | 1,151,906 |
(Increase) decrease in other assets | (24,412,492) | 3,276,582 |
|
|
|
Changes in operating liabilities | (31,277,521) | (31,763,133) |
Increase (decrease) in accounts payable related to operating income | (28,512,508) | (33,031,073) |
Increase (decrease) in interest payable | 5,387,873 | 23,036,978 |
Increase (decrease) in income taxes payable | (797,157) | (17,157,366) |
Increase (decrease) in other accounts payable related to non-operating income | 1,791,147 | (2,415,052) |
Increase (decrease) in valued added tax and other similar items | (9,146,876) | (2,196,620) |
|
|
|
Minority interest | 1,225 | 826 |
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES | 85,627,419 | 92,324,566 |
The accompanying Notes 1 to 36 are an integral part of these consolidated financial statements.
6
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of September 30, 2009 and 2008 (figures in ThCh$ of September 30, 2009)
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 September 30, 2009 and are compared to the same period in 2008.
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 -1.0% according to the variation of the Chilean Consumer Price Index (CPI)and in addition, some 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 minority shareholders participation in income 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:
| Ownership Interest | |||
Company Name | 2009 | 2008 | ||
| Direct | Indirect | Total | Total |
ABISA CORP. | 0.00 | 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 | 0.00 | 99.99 | 99.99 |
ANDINA BOTTLING INVESTMENTS DOS S.A. | 99.90 | 0.09 | 99.99 | 99.99 |
EMBOTELLADORA DEL ATLANTICO S.A. | 0.00 | 99.98 | 99.98 | 99.98 |
RIO DE JANEIRO REFRESCOS LTDA. | 0.00 | 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. | 0.00 | 99.99 | 99.99 | 99.99 |
RJR INVESTMENTS CORP. | 0.00 | 0.00 | 0.00 | 99.99 |
7
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 –2.8% for the period December 1, 2008 to August 31, 2009 (6.9% for the same period of the previous year).
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 indexation, these have been restated by the corresponding restatement index or by the agreed upon terms.
Assets and liabilities in foreign currency and Unidades de Fomento have been translated into local currency at the following year end exchange rates:
|
| 2009 | 2008 |
|
| Ch$ | Ch$ |
Unidades de Fomento | (UF) | 20,834.45 | 20,988.34 |
United States dollars | (US$) | 550.36 | 551.31 |
Argentine pesos | (AR$) | 143.21 | 175.86 |
Brazilian Real | (R$) | 309.52 | 288.00 |
Euro | (€$) | 805.09 | 775.51 |
g) Time deposits
Time deposits are valued at investment cost plus readjustments and accrued interest as of the end of each period.
h)
Marketable securities
Marketable securities include investments in mutual funds and investment fund quotas, valued at the period end redemption value.
i)
Inventories
The cost of raw materials includes all disbursements made in the acquisition process and deemed necessary for them to be readily available for use. 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.
j)
Allowance for doubtful accounts
The allowance for doubtful accounts consists of a general provision determined on the basis of the aging of accounts receivable 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.
k)
Property, plant and equipment
For companies incorporated in Chile, Property, Plant and Equipment is carried at acquisition 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 criteria described in Note 2n. 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 are valued at the lower of the net realizable value and book value. Estimated losses are reflected in the consolidated statement of income under other non-operating expenses.
8
l)
Depreciation
Depreciation of property, plant and equipment is determined by the straight-line method based on the estimated useful lives of the assets.
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 unconsolidated affiliates
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 these investments and to translate the financial statements of the foreign companies. Assets and liabilities 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, which do not exceed 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 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, under Financial Expenses.
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 aforementioned Bulletin, i.e. January 1, 2000, and not previously recognized, are recorded as gain or loss according to their estimated reversal period.
9
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 4.0% annual rate (7% for the previous year) 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 the required 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, and record that effect in operating income of the Company.
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 instruments used to hedge the risk of exposure to exchange rate differences as follows:
Derivative instruments used to hedge existing items on the balance sheet are recorded at their fair values. Unrealized losses are recognized as a charge to income and gains are deferred and included in other liabilities (current or long-term). Hedge ineffectiveness is recognized in the income statement.
Derivative instruments used to hedge forecasted transactions are recorded at their market values and the changes in their values are accounted for as unrealized gains or losses. Upon contract expiration, the deferred gains and losses are recorded in the income statements.
w)
Computer software
Corresponds to computer packages currently in use, which have a future economic benefit, and are amortized over a period equal to their useful life.
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 Securities and Exchange Commission)the Company has considered cash equivalent to be investments in fixed-income, mutual funds, short term time deposits (less than 90 days), agreements and financial investments maturing within 90 days.
10
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.
z) Use of estimates
The preparation of the financial statements in accordance with accounting principles generally accepted in Chile requires management to carry out estimates and assumption that affect the asset and liability figures reported and the disclosure of contingent assets and liabilities as well as income and expense figures for the period. Actual results may differ from these estimates.
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.
Note 4 - Marketable Securities
| Accounting value for the period | |
| ended September 30, | |
| 2009 | 2008 |
Type of Instrument | ThCh$ | ThCh$ |
Mutual funds | 20,120,503 | 7,728,136 |
Investment funds | 2,965,741 | 32,035,612 |
Total marketable securities | 23,086,244 | 39,763,748 |
|
|
|
| Accounting value for the period ended September 30, 2009 |
|
Mutual funds: |
|
|
Institution | ThCh$ |
|
Fondo Mutuo BBVA | 4,804,000 |
|
Fondo Mutuo Estado | 3,849,500 |
|
Fondo Mutuo BCI | 3,242,700 |
|
Fondo Mutuo Itaú | 38,711 |
|
Fondo Mutuo Scotiabank | 3,784,000 |
|
Fondo Mutuo Royal Bank of Canada | 4,401,592 |
|
Balance mutual funds | 20,120,503 |
|
|
|
|
Investment funds: |
|
|
Institution | ThCh$ |
|
Dreyfus Global Fund Universal Liquidity Plus | 356 |
|
Citi Institutional Liquid Reserves Limited - USA | 2,965,385 |
|
Balance investment funds | 2,965,741 |
|
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) | For the period ended September 30, | ||||
| 2009 | 2008 | 2009 | 2008 | 2009 | 2009 | 2008 | 2009 | 2008 |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Trade receivables | 35,650,642 | 30,066,855 | 1,028,331 | 750,358 | 36,678,973 | 35,492,023 | 30,817,213 | 0 | 0 |
Allowance for doubtful accounts |
|
|
|
| (1,186,950) |
|
|
|
|
Notes receivable | 9,170,700 | 8,662,802 | 495,895 | 563,092 | 9,666,595 | 9,037,984 | 9,225,894 | 93,029 | 0 |
Allowance for doubtful accounts |
|
|
|
| (628,611) |
|
|
|
|
Other receivables | 10,022,240 | 13,677,251 | 1,613,003 | 768,414 | 11,635,243 | 11,412,989 | 14,445,665 | 5,716,333 | 19,901 |
Allowance for doubtful accounts |
|
|
|
| (222,254) |
|
|
|
|
|
|
|
|
| Total long term receivables | 5,809,362 | 19,901 |
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.
Embotelladora Iquique S.A.: Sale of products
| Short Term | Long Term | ||
| 2009 | 2008 | 2009 | 2008 |
Company | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Embonor S.A. | 486,901 | 790,067 | 0 | 0 |
Embotelladora Coca-Cola Polar S.A. | 416,332 | 352,221 | 0 | 0 |
Coca-Cola de Chile S.A. | 0 | 0 | 39,654 | 45,681 |
Embotelladora Iquique S.A. | 96,132 | 0 | 0 | 0 |
| 999,365 | 1,142,288 | 39,654 | 45,681 |
2) Notes and accounts payable:
Coca-Cola de Chile S.A.: Concentrate purchases
Recofarma Indústrias do Amazonas Ltda.: Concentrate purchases
Envases CMF S.A.: Raw material purchases
Servicios y Productos para Bebidas Refrescantes S.R.L.: Concentrate purchases
Envases Central S.A.: Net balance corresponds to raw materials and finished products transactions
Envases del Pacífico S.A.: Raw material purchases
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
Vital Aguas S.A.: Finished products purchases
| Short Term | Long Term | ||
| 2009 | 2008 | 2009 | 2008 |
Company | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Coca-Cola de Chile S.A. | 5,547,914 | 2,526,221 | 0 | 0 |
Servicios y Productos para Bebidas Refrescantes S.R.L. | 1,950,813 | 2,399,622 | 0 | 0 |
Envases CMF S.A. | 853,623 | 870,175 | 0 | 0 |
Recofarma Industrias do Amazonas Ltda. | 3,079,435 | 1,837,302 | 0 | 0 |
Envases Central S.A. | 816,398 | 757,706 | 0 | 0 |
Envases del Pacifico S.A. | 98,188 | 64,777 | 0 | 0 |
Vital Aguas S.A. | 481,266 | 572,873 | 0 | 0 |
Embonor S.A. | 0 | 0 | 2,115,123 | 2,495,375 |
Embotelladora Coca-Cola Polar S.A. | 0 | 0 | 538,024 | 645,093 |
TOTAL | 12,827,637 | 9,028,676 | 2,653,147 | 3,140,468 |
13
3) Transactions with related companies
The following table includes transactions with related companies that exceed ThCh$200,000.
|
|
| 30-Sep-09 | 30-Sep-08 | ||
|
|
| Amount | Effect on income (charge) credit | Amount | Effect on income (charge) credit |
Company | Relation | Transaction | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Envases Central S.A | Equity Investee | Purchase of finished products | 11,472,500 | 0 | 11,113,679 | 0 |
- | - | Sales of raw materials and supplies | 1,447,695 | 300,950 | 1,222,951 | 122,234 |
Coca-Cola de Chile S.A. | Shareholder | Concentrate purchases | 34,450,804 | 0 | 38,985,991 | 0 |
- | - | Payment of advertising participation | 2,513,033 | (2,513,033) | 830,725 | (830,725) |
- | - | Sales of advertisement | 2,357,730 | 0 | 1,230,620 | 0 |
Servicios y Productos para Bebidas Refrescantes | Shareholder | Concentrate purchases | 25,921,054 | 0 | 22,640,215 | 0 |
Recofarma Industrias do Amazonas Ltda. | Shareholder related | Concentrate purchases | 40,639,376 | 0 | 48,121,212 | 0 |
- | - | Payment of advertising participation | 8,390,977 | (8,390,977) | 4,803,163 | (4,803,163) |
- | - | Reimbursements and other purchases | 469,759 | (469,759) | 1,083,400 | (1,083,400) |
Envases CMF S.A. | Equity Investee | Container purchases | 6,246,147 | 0 | 8,261,208 | 0 |
- | Equity Investee | Dividend payment | 1,987,500 | 0 | 2,625,975 | 0 |
Envases del Pacifico S.A. | Shareholder related | Purchase of raw materials | 395,747 | 0 | 237,822 | 0 |
Embonor S.A. | Shareholder related | Sales of finished products | 4,868,567 | 1,174,802 | 4,626,558 | 964,624 |
- | - | Product purchases | 0 | 0 | 143,063 | 0 |
- | - | Sale of products | 36,111 | 0 | 141,950 | 0 |
Embotelladoras Coca-Cola Polar S.A. | Shareholder related | Sales of finished products | 3,027,121 | 520,129 | 2,190,041 | 239,984 |
- | - | Purchase of finished products | 41,482 | 0 | 41,371 | 0 |
Iansagro S.A. | Director in common | Purchase of sugar | 6,472,147 | 0 | 12,832,016 | 0 |
BBVA Administradora General de Fondos | Shareholder related | Redemption of mutual funds | 23,896,552 | 0 | 11,286,990 | 0 |
- | - | Investments in mutual funds | 28,690,667 | 0 | 11,286,990 | 0 |
Vendomatica S.A. | Director in common | Sales of finished products | 1,087,343 | 369,697 | 1,027,708 | 308,312 |
Embotelladora Iquique S.A. | Shareholder related | Sales of finished products | 521,041 | 96,449 | 0 | 0 |
14
4) Other transactions
Within the normal course of operations, the Company entered into an agreement with IANSAGRO S.A., for the future supply of sugar at a fixed price for 48,000 tons of sugar to cover the company’s needs, this agreement will expire during 2010.
At the same time and in order to maintain a variable price of sugar, the Company subscribed an agreement in the London Stock exchange for the future sale of sugar for the same amounts (tons) and expiring on the same date as the agreements mentioned in the previous paragraph, thereby these operations have been matched.
Both operations have been considered as a single operation that seeks to maintain a variable price for sugar, and therefore they have not been considered as a derivative operation.
Note 7 – Inventories
| 30-Sep-09 | 30-Sep-08 | ||||
| Gross Value | Obsolescence provision | Net value | Gross Value | Obsolescence provision | Net value |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
|
|
|
|
|
|
|
Finished products | 14,048,546 | (140,886) | 13,907,660 | 13,274,677 | (170,095) | 13,104,582 |
Raw materials | 14,987,510 | (125,788) | 14,861,722 | 11,148,154 | (408,010) | 10,740,144 |
Products in process | 1,138,214 | 0 | 1,138,214 | 2,205,859 | 0 | 2,205,859 |
Raw materials in transit | 531,788 | 0 | 531,788 | 1,415,310 | 0 | 1,415,310 |
Total | 30,706,058 | (266,674) | 30,439,384 | 28,044,000 | (578,105) | 27,465,895 |
15
Note 8 - Deferred Taxes and Income Taxes
For the period ended September 30, 2009 the Company presented taxable retained earnings in the amount of ThCh$59,445,628 including profits with credit resulting from corporate income tax in the amount of ThCh$26,260,351 and profits without credit in the amount of ThCh$33. The previous period it did not present balances for this concept.
Short-term and long-term deferred tax assets and liabilities are shown as net balances in balance sheet.
| 30-September-09 | 30-September-08 | ||||||
| Assets | Liabilities | Assets | Liabilities | ||||
| Short term | Long term | Short term | Long term | Short term | Long term | Short term | Long term |
Temporary differences | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Allowance for doubtful accounts | 485,308 | 79,821 | 0 | 0 | 284,537 | 5,674 | 0 | 0 |
Vacation provision | 187,549 | 0 | 0 | 0 | 181,195 | 0 | 0 | 0 |
Production expenses | 11,007 | 0 | 0 | 0 | 12,505 | 0 | 0 | 0 |
Depreciation of property, plant & equipment | 0 | 65,123 | 171,745 | 5,985,453 | 0 | 0 | 165,925 | 6,631,402 |
Severance indemnities | 112,521 | 0 | 4,792 | 25,279 | 53,200 | 0 | 19,872 | 171,987 |
Others | 677,464 | 297,976 | 146 | 0 | 992,573 | 123,690 | 0 | 73,602 |
Provision for assets write off | 99,731 | 826,860 | 0 | 0 | 107,912 | 346,695 | 0 | 0 |
Provision for labor lawsuits | 0 | 1,782,765 | 0 | 0 | 0 | 1,899,259 | 0 | 0 |
Tax loss carry-forwards | 0 | 44,827 | 0 | 0 | 1,812,726 | 884,898 | 0 | 0 |
Local bond issue expenses | 0 | 0 | 0 | 83,748 | 0 | 0 | 29 | 142,750 |
Contingency allowance | 0 | 320,042 | 0 | 0 | 0 | 313,385 | 0 | 0 |
Exchange rate difference (FRN Debt-Brazil) | 0 | 0 | 0 | 13,853,435 | 0 | 0 | 0 | 12,760,857 |
Provision for participation in income | 806,865 | 0 | 0 | 0 | 533,289 | 0 | 0 | 0 |
Unrealized earnings | 0 | 205,396 | 0 | 0 | 0 | 238,162 | 0 | 0 |
Social contributions | 280,404 | 0 | 0 | 0 | 1,283,599 | 0 | 0 | 0 |
Temporary difference fiscal incentives-Brazil | 0 | 0 | 0 | 2,181,095 | 0 | 0 | 0 | 0 |
Others |
|
|
|
|
|
|
|
|
Complementary accounts, net of amortization | 0 | 0 | 0 | (1,328,949) | 0 | 0 | 0 | (1,710,231) |
Total | 2,660,849 | 3,622,810 | 176,683 | 20,800,061 | 5,261,536 | 3,811,763 | 185,826 | 18,070,367 |
16
c) The following table contains information on income taxes at each period-end.
| 30-Sep-09 | 30-Sep-08 |
| ThCh$ | ThCh$ |
Current tax expense (tax allowance) | (15,586,401) | (14,686,206) |
Adjustments tax expense (previous period) | (32,148) | 1,435,891 |
Deferred income tax expense/effect over assets or liabilities | (5,789,519) | (1,023,248) |
Amortization of deferred income tax asset and liability complementary accounts | (298,622) | (295,869) |
Other charges or credits | 646,849 | (1,084,948) |
Total | (21,059,841) | (15,654,380) |
Note 9 - Other Current Assets
| 30-Sep-09 | 30-Sep-08 |
| ThCh$ | ThCh$ |
Supplies | 5,807,661 | 4,976,087 |
Investment in buy-back agreements | 0 | 1,579,050 |
Short term bonds discount | 243,405 | 388,845 |
Wellsfargo Investment Fund (restricted) | 1,864,028 | 0 |
Others | 751,199 | 544,129 |
Total | 8,666,293 | 7,488,111 |
Note 10 - 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 geographically distributed as follows:
Chile
:
Santiago, Puente Alto, Maipú, Renca, Rancagua, San Antonio and Rengo
Argentina
:
Buenos Aires, Mendoza, Cordoba, and Rosario
Brazil
:
Rio de Janeiro, Niteroi, Campos, Cabo Frío, Nova Iguaçu, Espírito Santo and Vitoria.
17
a) Main components of property, plant and equipment
| Balances at September 30, 2009 | Balances at September 30, 2008 | ||||
| Assets | Accumulated depreciation | Net, property, plant and equipment | Assets | Accumulated depreciation | Net, property, plant and equipment |
| ||||||
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Land | 18,864,810 | 0 | 18,864,810 | 18,802,788 | 0 | 18,802,788 |
Buildings and improvements | 116,545,084 | (46,547,712) | 69,997,372 | 111,261,291 | (41,903,590) | 69,357,701 |
Machinery and equipment | 281,696,266 | (214,417,114) | 67,279,152 | 262,460,874 | (203,137,102) | 59,323,772 |
Other property, plant and equipment | 267,938,901 | (215,392,555) | 52,546,346 | 252,408,287 | (202,547,474) | 49,860,813 |
Technical reappraisal of property, plant & equipment | 2,338,708 | (714,554) | 1,624,154 | 2,337,593 | (711,766) | 1,625,827 |
Total | 687,383,769 | (477,071,935) | 210,311,834 | 647,270,833 | (448,299,932) | 198,970,901 |
b) Other property, plant and equipment
| 30-September-09 | 30-September-08 |
| ThCh$ | ThCh$ |
Containers | 161,006,427 | 147,257,934 |
Refrigerating equipment, promotional items and other minor assets | 63,625,480 | 61,345,621 |
Furniture and tools | 9,113,623 | 8,976,758 |
Other | 34,193,371 | 34,827,974 |
Total other property, plant and equipment | 267,938,901 | 252,408,287 |
c) Technical reappraisal of property, plant and equipment
| Balances at September 30, 2009 | Balances at September 30, 2008 | ||||
| Assets | Accumulated depreciation | Net, property, plant and equipment | Assets | Accumulated depreciation | Net, property, plant and equipment |
| ||||||
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Land | 1,560,774 | 0 | 1,560,774 | 1,560,774 | 0 | 1,560,774 |
Buildings and improvements | 218,549 | (161,653) | 56,896 | 218,508 | (161,512) | 56,996 |
Machinery and equipment | 559,385 | (552,901) | 6,484 | 558,311 | (550,254) | 8,057 |
Total | 2,338,708 | (714,554) | 1,624,154 | 2,337,593 | (711,766) | 1,625,827 |
d) Depreciation for the period
Depreciation charges for the period amounted to ThCh$24,500,758 (ThCh$25,997,125 in 2008) of which ThCh$16,678,346 (ThCh$19,760,286 in 2008) are included under Operating Costs and ThCh$7,822,412 (ThCh$6,236,839 in 2008) under Sales and Administrative Expenses in the income statement.
18
Note 11 - Investment in Unconsolidated Affiliates
1.
Investments in unconsolidated affiliates and the corresponding direct shareholding in equity, as well as the recognition of unrealized income at year end of the respective years are shown in the table attached.
Company | Country | Functional | N° of Shares | Ownership Interest | Equity of companies | Income (loss) for the period | Accrued income | Partic. in net income (loss) | Unrealized income (loss) | Accounting value of investment | |||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | 2009 | 2008 | ||||
|
| Currency |
| % | % | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
HOLDFAB PARTIC LTDA. | BRAZIL | US$ | 1,283,158,339 | 12.33% | 14.73% | 59,699,130 | 31,367,058 | 8,129,711 | 2,306,454 | 1,022,232 | 333,213 | 7,359,703 | 4,620,964 | 0 | 0 | 7,359,703 | 4,620,964 |
KAIK PARTIPACOES | BRAZIL | US$ | 16,098,919 | 11.32% | 11.32% | 11,442,958 | 9,865,096 | 1,154,521 | 52,345 | 130,688 | (5,925) | 1,295,308 | 1,116,699 | 0 | 0 | 1,295,308 | 1,116,699 |
ENVASES CENTRAL S.A. | CHILE | Ch$ | 1,499,398 | 49.91% | 49.91% | 5,755,388 | 5,123,888 | 254,575 | 52,500 | 114,093 | 12,268 | 2,872,514 | 2,557,332 | 255,784 | 255,736 | 2,616,730 | 2,301,596 |
ENVASES CMF S.A. | CHILE | Ch$ | 28,000 | 50.00% | 50.00% | 35,953,324 | 36,628,029 | 1,125,783 | 2,169,497 | (31,569) | 318,039 | 17,976,662 | 18,314,015 | 971,884 | 1,054,400 | 17,004,778 | 17,259,615 |
VITAL AGUAS S.A. | CHILE | Ch$ | 8,475 | 56.50% | 56.50% | 4,522,427 | 3,003,134 | 183,799 | 106,287 | 97,667 | (62,809) | 2,555,171 | 1,696,771 | 0 | 0 | 2,555,171 | 1,696,771 |
|
|
|
|
|
|
|
|
|
|
|
| 32,059,358 | 28,305,781 | 1,227,668 | 1,310,136 | 30,831,690 | 26,995,645 |
19
The main changes occurred in the reported periods are described below:
During an Extraordinary Shareholders’ Meeting held during April 2009, Vital S.A. decided to carry out a capital increase in the amount of ThCh$1,274,284 through the issuance of 5,000 shares of which Embotelladora Andina S.A. subscribed and paid 2,825 shares equal to ThCh$716,371.
On March 23, 2009, RJR Investments Corp. was dissolved. Our subsidiary Rio de Janeiro Refrescos Ltda. Had 100% ownership interest in said corporation.
In June, 2008 Embotelladora Andina S.A. acquired a 48% ownership interest in Embotelladoras del Sur S.A. for ThCh$746,046. Subsequent to the acquisition Embotelladora Andina S.A. made a capital contribution in the amount of ThCh$382,536.
The amounts disbursed by Embotelladora Andina S.A. in the acquisition of and loan to Embotelladoras del Sur S.A., as well as the proportionate loss recorded corresponding to the negative shareholders’ equity of the latter, were recorded as of September 30, 2008, as an intangible since the final purpose is not that of acquiring the company but that of acquiring the rights of distribution of products of the water segment that were previously marketed by Embotelladoras del Sur S.A.
As of December 31, 2008, the Company recorded under Other Non-Operating Income all of the disbursements to Embotelladoras del Sur S.A. due to the fact that it is very difficult to measure future cash flows that the distribution of the water brand Benedictino generates and also because this brand belongs to The Coca-Cola Company
On February 12, 2009 our subsidiary in Brazil, Rio de Janeiro Refrescos Ltda. met the capital increase agreed upon by Holdfab Participacoes Ltda. Of which it holds an ownership interest of 14.732%, by payment of the amount of ThCh$199,951.
Centralli Refrigerantes S.A. shows negative equity, which has been duly provided for.
The investment in Kaik Participações Ltda. (Brazil) where Embotelladora Andina S.A. holds an indirect ownership of 11.32% has been accounted for under the equity method, since the Company has a significant influence through one of its directors, who participates in the process of setting policies, operating and financial decision-making in accordance with the ownership structure which is exclusive owned by the Coca-Cola bottlers in Brazil
The investment in Envases Central S.A. is presented with a 48% reduction (the percentage share on the date of transaction) of the earnings generated during the sale to Envases Central during December 1996 for property located in Renca, because this transaction represents unrealized income for Embotelladora Andina S.A. The amount of the reduction is reflected in the following chart. This transaction will be realized once the property is transferred to a third party different from the group.
The investment in Envases CMF S.A. is presented with a 50% reduction of the earnings generated during the sale of machinery and equipment of our subsidiary Envases Multipack S.A. which took place in September, 2001, and that is recorded under Results during the remaining useful life period of the goods sold to Envases CMF S.A.
Unrealized income corresponds to transactions between subsidiaries and/or the parent company that have been deducted or added to the category of the originating asset with the following effect on income of the subsidiaries:
Envases CMF S.A. (purchase of property, plant and equipment: bottles): ThCh$(657,056) in 2009 (ThCh$(835,063) in 2008)
Vital Aguas S.A. (purchase of finished products): ThCh$(6,179) in 2009 (ThCh$(2,756) in 2008)
Envases Central S.A. (purchase of finished products): ThCh$(12,965) in 2009 (ThCh$(14,179) in 2008)
2.
No liabilities have been designated as hedging instruments for investments abroad.
3.
Income likely to be remitted by subsidiaries abroad amounts to US$318 million.
20
Note 12 - Goodwill and Negative Goodwill
Company | 30-September-2009 | 30-September-2008 | ||
Amortization during the period | Goodwill balance | Amortization during the period | Goodwill balance | |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Rio de Janeiro Refrescos Ltda. | 2,787,289 | 32,813,233 | 2,765,133 | 36,235,106 |
Embotelladora del Atlántico S.A. | 2,162,532 | 18,786,826 | 2,144,602 | 21,490,532 |
Total | 4,949,821 | 51,600,059 | 4,909,735 | 57,725,638 |
Note 13 - Other Long Term Assets
| 30-Sep-09 | 30-Sep-08 |
| ThCh$ | ThCh$ |
Judicial deposits (Brazil) | 11,297,000 | 8,523,398 |
Transfer fiscal credits (Brazil) | 6,485,119 | 5,286,803 |
Prepaid expenses | 3,073,762 | 3,629,707 |
Bond issuance and placement discounts and expenses | 2,591,465 | 2,845,132 |
Non operating assets | 1,346,722 | 1,373,504 |
Spare parts | 2,282,459 | 2,513,010 |
Others | 105,476 | 49,570 |
Total | 27,182,003 | 24,221,124 |
Note 14 - Short-Term and Long-Term Bank Liabilities
a) SHORT TERM BANK LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Currency or indexation adjustment |
|
|
|
| |
Bank or Financial Institution | Other foreign currencies | Non-indexed Ch$ | TOTAL | |||
| 2009 | 2008 | 2009 | 2008 | 2009 | 2008 |
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Banco de Chile | 0 | 0 | 0 | 36,970 | 0 | 36,970 |
Banco Galicia | 1,139,968 | 3,534,627 | 0 | 0 | 1,139,968 | 3,534,627 |
Nvo Santa Fe | 8,276 | 1,842,448 | 0 | 0 | 8,276 | 1,842,448 |
BBVA Frances | 0 | 5,163,383 | 0 | 0 | 0 | 5,163,383 |
BBVA | 0 | 0 | 6,155 | 0 | 6,155 | 0 |
Total | 1,148,244 | 10,540,458 | 6,155 | 36,970 | 1,154,399 | 10,577,428 |
Principal due | 1,138,643 | 10,540,458 | 6,155 | 36,970 | 1,144,798 | 10,577,428 |
|
|
|
|
|
|
|
Annual average interest rate | 16.24% | 17.64% | 8.64% | 8.58% |
|
|
|
|
|
|
|
|
|
Foreign currency liabilities |
|
| 99.47% |
|
|
|
Local currency liabilities |
|
| 0.53% |
|
|
|
21
b) LONG TERM BANK LIABILITIES (short term portion) |
|
|
| |
| Currency or indexation adjustment |
|
| |
| Other foreign currencies | TOTAL | ||
| 2009 | 2008 | 2009 | 2008 |
Bank or Financial Institution | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Banco Alfa | 130,373 | 119,947 | 130,373 | 119,947 |
Banco Votoratim (Brazil) | 127,029 | 1,899 | 127,029 | 1,899 |
Total | 257,402 | 121,846 | 257,402 | 121,846 |
Principal due | 256,388 | 121,846 | 256,388 | 121,846 |
|
|
|
|
|
Annual average interest rate | 10.51% | 11.89% |
|
|
Foreign currency liabilities | 100.00% |
|
|
|
Note 15 - Long-Term Bank Liabilities
| Currency | Years to maturity | Total long term | Annual average interest rate | Total long term | |
Bank or Financial Institution | or indexation adjustment | More than 1 up to 2 | More than 2 up to 3 | at September 30, 2009 | at September 30, 2008 | |
|
| ThCh$ | ThCh$ | ThCh$ | % | ThCh$ |
Banco Alfa | Other currencies | 86,915 | 0 | 86,915 | 10.79% | 200,749 |
Banco Votorantim | Other currencies | 127,031 | 63,515 | 190,546 | 10.22% | 405,881 |
TOTAL |
| 213,946 | 63,515 | 277,461 |
| 606,630 |
Foreign currency liabilities | 100% |
|
|
|
|
|
Note 16 – 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.
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, 2002, 2007 and 2008, 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$350 million, of which US$200 million remain outstanding, 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$75 million maturing in December 2012 and semiannual interest payments. At period end, all such bonds are wholly-owned by the subsidiary Abisa Corp. Consequently, the effects of such transactions have been eliminated from these consolidated financial statements, both in the balance sheet and in the consolidated statement of income.
22
The following table contains more information on Bonds Payable:
Instrument subscription or ID N° | Series | Current nominal value | Currency | Interest rate | Maturity date | Term | Par value | Placement in Chile or abroad | ||
Interest paid | Amortization period | 2009 | 2008 | |||||||
Current portion of bonds payable |
|
|
|
|
|
|
| ThCh$ | ThCh$ |
|
Register 254 SVS June 13, 2001 | B | 3,700,000 | UF | 6.5% | 01-Jun-26 | Semiannual | Dic-2009 | 6,178,492 | 1,639,517 | Chile |
Total current maturities |
|
|
|
|
|
|
| 6,178,492 | 1,639,517 |
|
Long term portion of bonds payable |
|
|
|
|
|
|
|
|
|
|
Register 254 SVS June 13, 2001 | B | 3,700,000 | UF | 6.5% | 01-Jun-26 | Semiannual | Dic-2009 | 72,552,908 | 76,880,289 | Chile |
Total long term |
|
|
|
|
|
|
| 72,552,908 | 76,880,289 |
|
Note 17 - Provisions and Write-Offs
| Short term | Long term | ||
| ||||
| 2009 | 2008 | 2009 | 2008 |
Provisions | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
Taxation on banking transactions and social contributions (Brazil) | 3,529,710 | 3,047,855 | 4,117,995 | 6,524,268 |
Staff severance indemnities | 966,624 | 692,281 | 8,928,845 | 6,869,033 |
Contingencies | 48,709 | 4,678 | 2,171,756 | 2,509,745 |
Others | 1,200,746 | 0 | 0 | 0 |
TOTAL | 5,745,789 | 3,744,814 | 15,218,596 | 15,903,046 |
Note 18 - Staff Severance Indemnities
| 30-Sep-09 | 30-Sep-08 |
Staff Severance Indemnities | ThCh$ | ThCh$ |
Beginning balance | 9,179,042 | 7,056,228 |
Provision for the period | 2,642,169 | 1,466,868 |
Payments | (1,925,742) | (961,782) |
Ending balance | 9,895,469 | 7,561,314 |
As of December 31, 2008, the Company amended the discount rate of the current value of accrued benefits by its employees from 7% to 4% in order to adapt to current market conditions.
Note 19 – Other Long Term Liabilities
| 30-Sep-09 | 30-Sep-08 |
| ThCh$ | ThCh$ |
Guaranty on containers | 9,240,035 | 9,248,918 |
Participation acquisition of assets | 1,939,956 | 1,566,931 |
Prepaid Income –Long term | 392,060 | 475,193 |
Advertising agreements | 158,310 | 311,467 |
Others | 365,902 | 632,904 |
Total | 12,096,263 | 12,235,413 |
23
Note 20 - Minority Interest
| 30-Sep-09 | 30-Sep-08 |
LIABILITIES | ThCh$ | ThCh$ |
Embotelladora del Atlántico S. A. | 11,256 | 9,012 |
Andina Inversiones Societarias S.A. | 22 | 19 |
| 11,278 | 9,031 |
|
|
|
|
|
|
| 30-Sep-09 | 30-Sep-08 |
INCOME STATEMENT | ThCh$ | ThCh$ |
Embotelladora del Atlántico S. A. | (1,224) | (824) |
Andina Inversiones Societarias S.A. | (1) | (2) |
| (1,225) | (826) |
24
Note 21 - Changes in Shareholders’ Equity
The activity in Shareholders’ Equity, Dividend Distribution and Other Reserves is detailed in the following tables:
| 30-Sep-09 |
| 30-Sep-08 | ||||||||||
| 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$ |
Beginning balance | 236,327,716 | 0 | 9,055,154 | 23,201,754 | (17,171,979) | 94,835,957 |
| 217,013,513 | 0 | (11,443,442) | 11,171,454 | (17,194,331) | 81,601,944 |
Distribution of prior year income | 0 | 0 | 0 | 77,663,978 | 17,171,979 | (94,835,957) |
| 0 | 0 | 0 | 64,407,613 | 17,194,331 | (81,601,944) |
Final dividend prior year | 0 | 0 | 0 | (11,279,815) | 0 | 0 |
| 0 | 0 | 0 | (7,667,367) | 0 | 0 |
Translation adjustment reserve | 0 | 0 | (16,280,274) | 0 | 0 | 0 |
| 0 | 0 | 7,062,983 | 0 | 0 | 0 |
Extraordinary dividend | 0 | 0 | 0 | (34,326,398) | 0 | 0 |
| 0 | 0 | 0 | (50,387,956) | 0 | 0 |
Capital revalued | 0 | (6,617,176) | (253,544) | (2,413,785) | 0 | 0 |
| 0 | 14,973,932 | (789,598) | 5,214,956 | 0 | 0 |
Income for the period | 0 | 0 | 0 | 0 | 0 | 54,209,357 |
| 0 | 0 | 0 | 0 | 0 | 55,488,278 |
Interim dividend | 0 | 0 | 0 | 0 | (11,148,096) | 0 |
| 0 | 0 | 0 | 0 | (11,377,204) | 0 |
Ending balance | 236,327,716 | (6,617,176) | (7,478,664) | 52,845,734 | (11,148,096) | 54,209,357 |
| 217,013,513 | 14,973,932 | (5,170,057) | 22,738,700 | (11,377,204) | 55,488,278 |
Price level restated balances |
|
|
|
|
|
|
| 214,843,378 | 14,824,193 | (5,118,357) | 22,511,313 | (11,263,432) | 54,933,394 |
25
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 |
Capital |
|
|
Series | Subscribed capital | Paid in capital |
| ThCh$ | ThCh$ |
A | 118,163,858 | 118,163,858 |
B | 118,163,858 | 118,163,858 |
Other Reserves |
|
|
|
|
| ||||||||||
|
|
|
|
|
| ||||||||||
Balance of Other Reserves is composed as follows: |
|
|
|
|
| ||||||||||
|
|
| 2009 | 2008 |
| ||||||||||
|
|
| ThCh$ | ThCh$ |
| ||||||||||
|
|
|
|
|
| ||||||||||
Reserve for cumulative translation adjustments(1) |
|
| (8,625,774) | (6,265,265) |
| ||||||||||
Reserve for technical reappraisal of property, plant and equipment |
| 68,489 | 71,211 |
| |||||||||||
Other |
|
| 1,078,621 | 1,075,697 |
| ||||||||||
Total |
|
| (7,478,664) | (5,118,357) |
| ||||||||||
|
|
|
|
|
| ||||||||||
(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 rate generated during the period | Reserve release / realized(*) | Balance |
|
Company |
|
| 01-Ene-09 | Investment |
| September 30, 2009 |
|
|
|
| ThCh$ | ThCh$ | ThCh$ | ThCh$ |
|
Rio de Janeiro Refrescos Ltda. |
|
| 4,374,021 | (10,368,869) | 60,918 | (5,933,930) |
|
Embotelladora del Atlántico S. A. |
|
| 3,280,479 | (5,972,323) | 0 | (2,691,844) |
|
Total |
|
| 7,654,500 | (16,341,192) | 60,918 | (8,625,774) |
|
(*) Reserve realized resulted from dividends paid by our subsidiary Río de Janeiro Refrescos Ltda. | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26
Note 22 - Other Non-Operating Income and Expenses
Other non-operating income during the period was as follows:
| 2009 | 2008 |
| ThCh$ | ThCh$ |
Reverse provision property, plant & equipment devalued | 0 | 5,077,153 |
Tax recovery prior years | 159,672 | 0 |
Restatement of judicial deposits (Brazil) | 1,724,949 | 0 |
Gain on sale of property, plant and equipment | 172,795 | 128,609 |
Other income | 188,070 | 601,800 |
Sub-total | 2,245,486 | 5,807,562 |
Translation of financial statements(1) | 5,640,890 | 0 |
Total | 7,886,376 | 5,807,562 |
|
|
|
Other non-operating expenses during the period was as follows: |
| |
Conversion adjustment reserve realized(2) | (60,918) | (4,918,292) |
Bank taxes(3) | (1,605,868) | (1,656,720) |
Provision for labor and commercial lawsuits | (773,957) | (598,733) |
Write off and obsolescence provision of property, plant & equipment | 0 | (4,408) |
Provision loss of investment in Centralli | (44,646) | (80,438) |
Others | (1,198,309) | (1,483,517) |
Sub-total | (3,683,698) | (8,742,108) |
Translation of financial statements(1) | 0 | (2,189,441) |
Total | (3,683,698) | (10,931,549) |
|
|
|
(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, which are presented as Other Non Operating Income and/or expenses accordingly. | ||
(2)This refers to the release of conversion adjustment reserves due to dividend payments carried out at our subsidiary Rio de Janeiro Refrescos Ltda. and the remittance of capital and dividend distribution by Embotelladora del Atlántico S.A. during the 2009 and 2008 period, respectively. | ||
(3)This refers to taxes charged in the normal course of business due to banking Accounts movements in our foreign subsidiaries and are not related to obtaining financial resources. |
27
Note 23 - Price-Level Restatement
| Adjustment index | 30-Sep-09 | 30-Sep-08 |
Assets - (charges)/credits |
| ThCh$ | ThCh$ |
Inventories | CPI | (55,232) | 38,853 |
Property, plant and equipment | CPI | (2,919,456) | 6,780,199 |
Investments in related companies | CPI | (5,000,811) | 8,686,507 |
Cash, Time Deposits, Marketable Securities | UF | (1,852,193) | 1,106,206 |
Cash, Time Deposits, Marketable Securities | CPI | (251,837) | 2,793,649 |
Short term accounts receivable from related companies | UF | (210,614) | 479,800 |
Short term accounts receivable from related companies | CPI | (14,048) | 1,900,812 |
Recoverable taxes | CPI | (1,190) | 39,544 |
Other current assets | CPI | (213,089) | 240,973 |
Other current assets | UF | 0 | 111,393 |
Other long term assets | CPI | (99,093) | 146,747 |
Other long term assets | UF | (8,675) | 0 |
Cost and expense accounts | CPI | (1,089,130) | 6,477,036 |
Total (charges) credits |
| (11,715,368) | 28,801,719 |
|
|
|
|
Liabilities - (charges)/credits |
|
|
|
Shareholders’ equity | CPI | 9,256,565 | (15,964,481) |
Short and long term bonds payable | UF | 2,276,159 | (4,965,987) |
Other current liabilities | UF | 124,906 | (235,737) |
Other current liabilities | CPI | 34,203 | (551,276) |
Other long term liabilities | CPI | 70,107 | (305,148) |
Income accounts | CPI | 1,423,729 | (8,542,572) |
Total (charges) credits |
| 13,185,669 | (30,565,201) |
Price-level restatement (loss ) gain |
| 1,470,301 | (1,763,482) |
28
Note 24 - Foreign Exchange Gains/Losses
| Currency | 30-Sep-09 | 30-Sep-08 |
Assets - (charges)/credits |
| ThCh$ | ThCh$ |
Cash | US$ | 82,345 | (222,974) |
Time deposits | US$ | (604,329) | 850,497 |
Marketable securities (net) | US$ | (321,792) | 2,465,730 |
Trade accounts receivable | US$ | (126) | 452 |
Other debtors (net) | US$ | (44,269) | 45,158 |
Accounts receivable related companies short term | US$ | (4,811,473) | 1,769,424 |
Inventories (net) | US$ | 0 | (11,802) |
Recoverable taxes | US$ | 0 | 82 |
Prepaid expenses | US$ | 0 | 208 |
Other current assets | US$ | (362,736) | 717,439 |
Other assets | US$ | 0 | (62,966) |
Total (charges)/credits |
| (6,062,380) | 5,551,248 |
|
|
|
|
Liabilities - (Charges) / credits |
|
|
|
|
|
|
|
Accounts payable | US$ | 149,021 | (89,470) |
Other creditors | US$ | 0 | 4,447 |
Notes and accounts payable related companies | US$ | (772,415) | 656,739 |
Provisions | US$ | 28,666 | (505,318) |
Prepaid income | US$ | 0 | 2,393 |
Other current liabilities | US$ | 85,623 | (613,123) |
Withholdings | US$ | (473) | 0 |
Total (charges) credits |
| (509,578) | (544,332) |
Foreign exchange gain (loss) on income |
| (6,571,958) | 5,006,916 |
Note 25 - 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 16.
Bonds issued in the local market:
Debt issue costs and interest rate differences net of amortization as of the end of the period amounted to ThCh$2,834,870 and ThCh$3,233,977 in 2008. Disbursements for risk rating reports, legal and financial advisory services, printing and placement fees are included as Debt issue costs.
Amortization for the period ended September 30, 2009 amounted to ThCh$182,800 and ThCh$294,507 in 2008.
29
Note 26 - Consolidated Statement of Cash Flows
For the projection of future cash flows, there are no transactions and events to consider which have not been revealed in these financial statements and accompanying notes.
The following table presents an itemization of the movement of assets and liabilities not affecting the cash flow in the period, but compromising future cash flows.
| 30-Sep-09 | Maturity date | 30-Sep-08 | Maturity date |
| ThCh$ | ThCh$ | ||
Expected cash outflow |
|
|
|
|
Expenses |
|
|
|
|
Dividend payment | (5,588,018) | 28-Oct-09 | (5,532,137) | 23-Dec-08 |
Addition to property, plant and equipment | (1,588,633) | 15-Nov-09 | (51,845) | 30-Oct-08 |
Addition to property, plant and equipment | (535,251) | 30-Nov-09 | (1,709,292) | 30-Nov-08 |
Addition to property, plant and equipment | (87,475) | 29-Dec-09 | (13,391) | 30-Dec-08 |
Total expenses | (7,799,377) |
| (7,306,665) |
|
|
|
|
|
|
Expected cash inflow |
|
|
|
|
Income |
|
|
|
|
Sale of property, plant and equipment | 23,549 | 31-Oct-09 | 14,306 | 31-Oct-08 |
Total income | 23,549 |
| 14,306 |
|
Total net | (7,775,828) |
| (7,292,359) |
|
30
Note 27 - Derivative Contracts
Derivative contracts at September 30, 2009 were as follows:
|
|
|
|
|
| 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 | Unrealized |
|
| ThCh$ |
|
|
|
| ThCh$ | ThCh$ |
| ThCh$ | ThCh$ |
FR | CCTE | 8,330,343 | 4th Quarter 2009 | US$ Exchange Rate | P | Suppliers foreign currency | 8,633,337 | 0 | Other current assets & liabilities | 302,994 | (302,994) |
31
Note 28 - Contingencies and Restrictions
a.
Litigation and other legal actions:
There are various judicial actions and other out-of-court claims pending against the Company incidental to its business and operations. Management believes, based on the opinion of its legal counsel, that none of these proceedings will have a material adverse effect on the Company’s financial position or result of operations.
Current lawsuits and other legal actions are described below.
1)
Embotelladora del Atlántico S.A. faces labor and other lawsuits. Accounting provisions to back any probable loss contingency arising from these lawsuits, amounts to ThCh$1,079,673 (ThCh$1,521,597 in 2008). 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.
2)
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$1,086,885 (ThCh$1,187,207 in 2008). 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.
3)
Embotelladora Andina S.A. faces, labor, tax, commercial and other lawsuits. Accounting provisions to back any probable loss contingency arising from these lawsuits, amounts to ThCh$7,199 (ThCh$15,082 in 2008). In accordance with its legal counsel’s opinion, the Company deems improbable that contingencies without provisions may affect the results or equity of the Company.
b.
Restrictions
The bond issue and placement on the US market for US$ 200 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 3,700,000 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.
32
c.
Direct guarantees
Guarantees at September 30, 2009 are presented on the following table:
|
|
|
|
|
| Balances pending at September 30, | Guaranty release September 30, | |||
Guarantee creditor |
|
| Type of guaranty | Assets involved | ||||||
| Debtor | Relation |
| Type | Accounting Value | 2009 | 2008 | 2010 | 2011 | 2012 |
|
|
|
|
| ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ | ThCh$ |
ESTADO RIO DE JANEIRO | RIO DE JANEIRO REFRESCOS LTDA | Subsidiary | Mortgage | Real estate deposit | 12,394,778 | 12,569,507 | 11,578,402 | 0 | 0 | 0 |
UNIA FEDERAL | RIO DE JANEIRO REFRESCOS LTDA. | Subsidiary | Mortgage | Real estate deposit | 0 | 0 | 0 | 0 | 0 | 0 |
PODER JUDICIARIO | RIO DE JANEIRO REFRESCOS LTDA. | Subsidiary | Judicial deposit | Judicial deposit | 15,490,521 | 0 | 0 | 0 | 0 | 0 |
ADUANA DE AZEIZA | EMBOTELLADORA DEL ATLANTICO S.A. | Subsidiary | Guaranty insurance | Inventories | 57,857 | 0 | 0 | 0 | 0 | 0 |
AGA S.A. | EMBOTELLADORA ANDINA S.A. | Parent company | Guaranty receipt | Guaranty receipt | 0 | 165,108 | 164,084 | 0 | 0 | 165,108 |
MUNICIPALIDAD DE SANTIAGO | EMBOTELLADORA ANDINA S.A. | Parent company | Guaranty receipt | Guaranty receipt | 0 | 11,658 | 11,627 | 11,658 | 0 | 0 |
ESCUELA MILITAR | EMBOTELLADORA ANDINA S.A. | Parent company | Guaranty receipt | Guaranty receipt | 0 | 1,525 | 1,994 | 0 | 1,525 | 0 |
MUNICIPALIDAD DE MAIPU | EMBOTELLADORA ANDINA S.A. | Parent company | Guaranty receipt | Guaranty receipt | 0 | 0 | 103,955 | 0 | 0 | 0 |
SERVIU REGION METROPOLITANA | EMBOTELLADORA ANDINA S.A. | Parent company | Guaranty receipt | Guaranty receipt | 0 | 2,713 | 0 | 0 | 0 | 2,713 |
33
Note 29 - Guarantees from Third Parties
Guarantees from Third Parties at September 30, 2009 were as follows:
34
Note 30 - Local and Foreign Currency
Assets at each period end were composed of local and foreign currencies as follows:
|
| 30-Sep-09 | 30-Sep-08 |
Current Assets | Currency | ThCh$ | ThCh$ |
Cash | Non-Indexed Ch$ | 3,334,505 | 2,389,134 |
| US$ | 196,906 | 4,322,974 |
| $AR | 804,790 | 1,220,673 |
| $R | 22,586,064 | 6,072,319 |
Time Deposits | Indexed Ch$ | 39,988,699 | 40,689,867 |
| Non-Indexed Ch$ | 31,104,229 | 0 |
| US$ | 0 | 11,757,474 |
| $AR | 17,220 | 0 |
| $R | 33,324 | 31,910 |
Marketable Securities (Net) | Non-Indexed Ch$ | 15,717,482 | 7,763,135 |
| US$ | 7,368,463 | 31,843,442 |
| $R | 299 | 157,171 |
Trade Account Receivables (Net) | Non-Indexed Ch$ | 15,720,566 | 14,377,837 |
| US$ | 738,519 | 708,476 |
| $AR | 2,390,898 | 2,671,159 |
| $R | 16,642,040 | 13,059,741 |
Notes Receivable | Non-Indexed Ch$ | 6,651,029 | 6,739,677 |
| $AR | 513,396 | 671,107 |
| $R | 1,873,559 | 1,815,110 |
Other Debtors (Net) | Non-Indexed Ch$ | 5,673,138 | 3,498,911 |
| Indexed Ch$ | 0 | 85,425 |
| US$ | 142,443 | 3,894,325 |
| $AR | 1,871,820 | 6,967,004 |
| $R | 3,725,588 | 0 |
Notes Receivable Related Companies | Non-Indexed Ch$ | 999,365 | 1,142,288 |
Inventories (net) | Indexed Ch$ | 7,892,593 | 7,962,332 |
| US$ | 1,736,345 | 2,340,844 |
| $AR | 10,539,405 | 7,166,356 |
| $R | 10,271,041 | 9,996,363 |
Recoverable Taxes | Indexed Ch$ | 3,131,318 | 1,684,311 |
| US$ | 262,806 | 2,259,927 |
| AR$ | 281,138 | 345,850 |
| $R | 190,385 | 208,690 |
Prepaid Expenses | Non-Indexed Ch$ | 2,080,312 | 1,569,817 |
| US$ | 0 | 60,744 |
| $AR | 239,458 | 268,390 |
| $R | 1,055,932 | 1,034,691 |
Deferred Taxes | Indexed Ch$ | 0 | 679,874 |
| Non-Indexed Ch$ | 473,295 | 0 |
| $AR | 421,873 | 382,091 |
| $R | 1,588,998 | 4,013,745 |
Other Current Assets | Indexed Ch$ | 197,266 | 0 |
| Non-Indexed Ch$ | 3,616,150 | 3,541,562 |
| US$ | 748,381 | 558,530 |
| $AR | 1,160,706 | 973,382 |
| $R | 2,943,790 | 2,414,637 |
-------- |
|
|
|
Property, Plant and Equipment |
|
|
|
Property, Plant and Equipment | Indexed Ch$ | 95,045,439 | 93,138,005 |
| US$ | 115,266,395 | 105,832,896 |
-------- |
|
|
|
Other Assets |
|
|
|
Investment in related companies | Non-Indexed Ch$ | 22,176,673 | 21,257,981 |
| $R | 8,655,017 | 5,737,664 |
Investment in other companies | Indexed Ch$ | 55,730 | 48,379 |
| US$ | 83,571 | 76,982 |
Goodwill | Indexed Ch$ | 874,670 | 1,031,135 |
| US$ | 50,725,389 | 56,694,503 |
Long term debtors | Indexed Ch$ | 5,712,473 | 9,063 |
| $AR | 3,860 | 10,838 |
| $R | 93,029 | 0 |
Notes Receivable Related Companies | Indexed Ch$ | 39,654 | 45,681 |
Intangibles | Non-Indexed Ch$ | 361,233 | 1,128,581 |
35
| US$ | 314,736 | 312,127 |
Amortization | US$ | -184,908 | -167,769 |
Others | Indexed Ch$ | 2,591,466 | 2,005,428 |
| Non-Indexed Ch$ | 1,422,868 | 2,340,617 |
| US$ | 0 | 11,430 |
| $AR | 2,953,035 | 3,286,089 |
| $R | 20,214,634 | 16,577,560 |
Total assets | Indexed Ch$ | 155,529,308 | 147,379,500 |
| Non-Indexed Ch$ | 109,593,651 | 68,009,467 |
| US$ | 177,136,240 | 218,246,978 |
| $AR | 21,197,599 | 23,962,939 |
| $R | 89,873,700 | 61,119,601 |
36
Note 30 - Local and Foreign Currency (continuation)
Current liabilities for the period ended September 30, 2009 and 2008, denominated in local and foreign currencies were as follows:
|
| Up to 90 days |
| 90 days to 1 year | |||||
|
| 30-Sep-09 | 30-Sep-08 | 30-Sep-09 | 30-Sep-08 | ||||
| Currency | Amount | Annual average interest rate | Amount | Annual average interest rate | Amount | Annual average interest rate | Amount | Annual average interest rate |
Short term bank liabilities | Non-Indexed Ch$ | 6,155 | 8.64% | 36,970 | 8.58% | 0 |
| 0 |
|
- | $AR | 1,148,244 | 16.24% | 5,105,160 | 17.67% | 0 |
| 5,435,298 | 17.93% |
- | $R | 0 |
| 0 |
| 0 |
| 0 |
|
Long term bank liabilities | US$ | 0 |
| 0 |
| 0 |
| 0 |
|
Bonds payable | $R | 0 |
| 0 |
| 257,402 | 10.51% | 121,846 | 11.89% |
- | Indexed Ch$ | 3,911,214 | 6.50% | 0 |
| 2,267,278 | 6.50% | 1,639,517 | 6.50% |
Dividends payable | US$ | 0 |
| 0 |
| 0 |
| 0 |
|
- | Indexed Ch$ | 0 |
| 0 |
| 0 |
| 0 |
|
Accounts payable | Non-Indexed Ch$ | 5,791,251 |
| 5,729,338 |
| 0 |
| 0 |
|
- | $AR | 4,809 |
| 5,926 |
| 0 |
| 0 |
|
- | Non-Indexed Ch$ | 31,000,519 |
| 23,881,201 |
| 0 |
| 0 |
|
- | US$ | 1,292,416 |
| 2,288,689 |
| 0 |
| 0 |
|
- | $AR | 11,704,505 |
| 11,237,791 |
| 0 |
| 99,001 |
|
Other creditors | $R | 16,106,837 |
| 7,714,883 |
| 0 |
| 49,500 |
|
- | EUROS$ | 19,904 |
| 18,601 |
| 0 |
| 0 |
|
- | $AR | 68,653 |
| 166,333 |
| 89,639 |
| 53,587 |
|
Notes and accounts payable related companies | $R | 4,117,824 |
| 4,369,295 |
| 0 |
| 0 |
|
- | US$ | 98,613 |
| 97,796 |
| 0 |
| 0 |
|
- | Indexed Ch$ | 0 |
| 0 |
| 0 |
| 0 |
|
- | Non-Indexed Ch$ | 7,797,389 |
| 4,791,751 |
| 0 |
| 0 |
|
Provisions | US$ | 0 |
| 0 |
| 0 |
| 0 |
|
- | $AR | 1,950,813 |
| 2,399,622 |
| 0 |
| 0 |
|
Withholdings | $R | 3,079,435 |
| 1,837,303 |
| 0 |
| 0 |
|
- | Non-Indexed Ch$ | 2,174,569 |
| 696,959 |
| 0 |
| 0 |
|
- | $R | 0 |
| 0 |
| 3,571,220 |
| 3,047,855 |
|
Income taxes | Non-Indexed Ch$ | 7,331,681 |
| 7,394,863 |
| 0 |
| 0 |
|
- | $AR | 5,806,839 |
| 5,816,324 |
| 0 |
| 0 |
|
- | $R | 0 |
| 0 |
| 1,072,806 |
| 3,703,281 |
|
- | EUROS$ | 0 |
| 0 |
| 0 |
| 0 |
|
Unearned income | Indexed Ch$ | 0 |
| 0 |
| 0 |
| 0 |
|
Other current liabilities | Non-Indexed Ch$ | 133,054 |
| 399,532 |
| 0 |
| 0 |
|
- | $AR | 2,035,422 |
| 1,122,970 |
| 0 |
| 0 |
|
| $R | 0 |
| 0 |
| 1,716,238 |
| 1,178,574 |
|
| Non-Indexed Ch$ | 0 |
| 29,330 |
| 0 |
| 0 |
|
| Non-Indexed Ch$ | 632,728 |
| 2,439,456 |
| 0 |
| 0 |
|
| US$ | 0 |
| 1,986,734 |
| 0 |
| 0 |
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities | Non-Indexed Ch$ | 54,867,346 |
| 45,399,400 |
| 0 |
| 0 |
|
| $AR | 22,719,285 |
| 25,854,126 |
| 89,639 |
| 5,587,886 |
|
| $R | 23,304,096 |
| 13,921,481 |
| 6,617,666 |
| 8,101,056 |
|
| US$ | 1,391,029 |
| 4,373,219 |
| 0 |
| 0 |
|
| Indexed Ch$ | 3,911,214 |
| 0 |
| 2,267,278 |
| 1,639,517 |
|
| EUROS$ | 19,904 |
| 18,601 |
| 0 |
| 0 |
|
37
Note 30 - Local and Foreign Currency (continuation)
Long term liabilities at September 30, 2009 were composed of local and foreign currencies as follows:
| Currency | 1 to 3 years | 3 to 5 years | 5 to 10 years | Over 10 years | ||||
| Amount | Annual average interest rate | Amount | Annual average interest rate | Amount | Annual average interest rate | Amount | Annual average interest rate | |
|
| ThCh$ | % | ThCh$ | % | ThCh$ | % | ThCh$ | % |
Long term bank liabilities | R$ | 277,461 | 10.67% | 0 |
| 0 |
| 0 |
|
Long term bonds payable | Indexed Ch$ | 9,069,114 | 6.50% | 9,069,114 | 6.50% | 22,672,784 | 6.50% | 31,741,896 | 6.50% |
Other creditors | AR$ | 17,266 |
| 0 |
| 0 |
| 0 |
|
Notes and accounts payable related companies | US$ | 2,653,147 |
| 0 |
| 0 |
| 0 |
|
Provisions | Indexed Ch$ | 0 |
| 0 |
| 0 |
| 7,806,121 |
|
- | Non-indexed Ch$ | 1,122,724 |
| 0 |
| 0 |
| 0 |
|
- | AR$ | 1,079,673 |
| 0 |
| 0 |
| 0 |
|
- | R$ | 5,210,078 |
| 0 |
| 0 |
| 0 |
|
Deferred taxes | Indexed Ch$ | 694,026 |
| 0 |
| 0 |
| 0 |
|
- | Non-indexed Ch$ | 89,158 |
| 0 |
| 0 |
| 239,536 |
|
- | AR$ | 0 |
| 884,166 |
| 0 |
| 0 |
|
- | R$ | 15,270,365 |
| 0 |
| 0 |
| 0 |
|
Other liabilities | Non-indexed Ch$ | 0 |
| 0 |
| 4,227,801 |
| 0 |
|
- | AR$ | 321,126 |
| 963,380 |
| 1,926,759 |
|
|
|
| R$ | 4,657,197 |
|
|
|
|
|
|
|
Total long term liabilities | R$ | 25,415,101 |
| 0 |
| 0 |
| 0 |
|
| Indexed Ch$ | 9,763,140 |
| 9,069,114 |
| 22,672,784 |
| 39,548,017 |
|
| US$ | 2,653,147 |
| 0 |
| 0 |
| 0 |
|
| AR$ | 1,418,065 |
| 1,847,546 |
| 1,926,759 |
| 0 |
|
| Non-indexed Ch$ | 1,211,882 |
| 0 |
| 4,227,801 |
| 239,536 |
|
38
Long term liabilities at September 30, 2008 were composed of local and foreign currencies as follows:
| Currency | 1 to 3 years | 3 to 5 years | 5 to 10 years | Over 10 years | ||||
| Amount | Annual average interest rate | Amount | Annual average interest rate | Amount | Annual average interest rate | Amount | Annual average interest rate | |
|
| ThCh$ | % | ThCh$ | % | ThCh$ | % | ThCh$ | % |
Long term bank liabilities | $R | 606,630 | 10.42% | 0 |
| 0 |
| 0 |
|
Long term bonds payable | Indexed Ch$ | 9,044,740 | 6.50% | 9,044,740 | 6.50% | 22,611,849 | 6.50% | 36,178,960 | 6.50% |
Other creditors | $AR | 59,229 |
| 0 |
| 0 |
| 0 |
|
Notes and accounts payable related companies | Non-Indexed Ch$ | 3,140,468 |
| 0 |
| 0 |
| 0 |
|
Provisions | Indexed Ch$ | 0 |
| 0 |
| 0 |
| 6,050,457 |
|
- | Non-Indexed Ch$ | 818,575 |
| 0 |
| 0 |
| 0 |
|
- | $AR | 1,420,387 |
| 0 |
| 0 |
| 0 |
|
- | $R | 7,613,627 |
| 0 |
| 0 |
| 0 |
|
Deferred taxes | Non-Indexed Ch$ | 646,368 |
| 0 |
| 0 |
| 472,760 |
|
- | $AR | 0 |
| 658,633 |
| 0 |
| 0 |
|
- | $R | 12,480,843 |
| 0 |
| 0 |
| 0 |
|
Other liabilities | Non-Indexed Ch$ | 137,904 |
| 0 |
| 4,772,475 |
| 0 |
|
- | $AR | 0 |
| 297,094 |
| 2,673,845 |
| 0 |
|
- | $R | 4,354,095 |
| 0 |
| 0 |
| 0 |
|
Total long term liabilities | $R | 25,055,195 |
| 0 |
| 0 |
| 0 |
|
| Indexed Ch$ | 9,044,740 |
| 9,044,740 |
| 22,611,849 |
| 42,229,417 |
|
| $AR | 1,479,616 |
| 955,727 |
| 2,673,845 |
| 0 |
|
| Non-Indexed Ch$ | 4,743,315 |
| 0 |
| 4,772,475 |
| 472,760 |
|
39
Note 31 – Penalties
The Company has not been subject to penalties by the SVS or any other administrative authority.
Note 32 - Subsequent Events
No financial or other matters have occurred between the end of period and the date of preparation of these financial statements that may significantly affect the assets, liabilities, and/or results of the Company.
Note 33 – Companies subject to special regulations
The Company and its subsidiaries are not subject to special regulations.
40
Note 34 – Environment
Disbursements and commitments for this period related to environmental issues were according to the following table:
Name of the project associated with the disbursement | Concept for which disbursement was realized or will be realized | Accounting record: Cost of Asset/ Expense |
| Amount Disbursed | Certain or expected date of disbursement |
Description of asset or expense item | ThCh$ | ||||
Disbursements that are part of assets |
|
|
|
|
|
Argentina |
|
|
|
|
|
Effluents Plant | Investments in refurbishment of Effluents Plant (in the process of execution) | Property, plant & equipment | Works in progress | 219,046 | 1st Quarter 2009 |
Effluents Plant | Investments in refurbishment of Effluents Plant (in the process of execution) | Property, plant & equipment | Works in progress | 520,134 | 2nd Quarter 2009 |
Effluents Plant | Investments in refurbishment of Effluents Plant (in the process of execution) | Property, plant & equipment | Works in progress | 50,944 | 3rd and 4th Quarter 2009 |
Effluents Plant | Investments in refurbishment of Effluents Plant (in the process of execution) | Property, plant & equipment | Works in progress | 535,159 |
|
Total Argentina |
|
|
| 1,325,283 |
|
Brazil |
|
|
|
|
|
Improvements in water quality | Improvements in water quality | Cost of Asset | Adequação sistema da peneira ETE | 3,676 | 1-Aug-09 |
Improvements in water quality | Improvements in water quality | Cost of Asset | Projeto de ampliação de captação de água de chuva | 64,328 | 1-Aug-09 |
Improvements in water quality | Improvements in water quality | Cost of Asset | Sistema de Gradiamento para ETE | 1,042 | 1-Aug-09 |
Improvements in water quality | Improvements in water quality | Cost of Asset | Projeto de capacidade de tratamento de água | 391,072 | 14-Sep-09 |
Improvements in water quality | Improvements in water quality | Cost of Asset | Projeto de capacidade de tratamento de água | 85,787 | 25-Sep-09 |
Improvements in water quality | Improvements in water quality | Cost of Asset | Projeto de capacidade de tratamento de água | 91,902 | 1-Sep-09 |
Improvements in water quality | Improvements in water quality | Cost of Asset | Adequação ETE de JPA | 30,043 | 17-Aug-09 |
Total Brazil |
|
|
| 667,850 |
|
Chile |
|
|
|
|
|
Leak detection | Avoid contamination of underground water source | Cost of Asset | Leak detection equipment | 1,320 | 3rd and 4th Quarter 2009 |
Hand Held EquipmentsVendedores (110) | Avoid printing paper | Cost of Asset | Hand Held equipment | 90,422 | 12-Jun |
Hand Held EquipmentsVendedores (110) | Avoid printing paper | Cost of Asset | Hand Held equipment | 5,454 | 4th Quarter 2009 |
Air conditioning equipments (SA) | Avoid air pollution | Cost of Asset | Air Condition equipments | 1,980 | 31-Mar |
Replacement of air compressors | Save energy | Cost of Asset | Latest technology compressors | 8,593 | 14-Jan |
Total Chile |
|
|
| 107,769 |
|
Total Assets |
|
|
| 2,100,902 |
|
Disbursements charged to expenses |
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
|
|
|
|
Ecological Island | Service of selective residue collection | Expense | Services | 63,681 | 1st Quarter 2009 |
Ecological Island | Collection of residues | Expense | Services | 9,638 | 1st Quarter 2009 |
Ecological Island | Crushing boxes | Expense | Services | 3,920 | 1st Quarter 2009 |
Ecological Island | AE rental | Expense | Rentals | 1,760 | 1st Quarter 2009 |
Effluents Plant | External analysis of effluents in Cordoba | Expense | Services | 716 | 1st Quarter 2009 |
Waste Management | Anti-spill containers and kits and signs | Expense | Materials | 267 | 1st Quarter 2009 |
Legal counseling | Counseling on environment legislation | Expense | Fees | 470 | 1st Quarter 2009 |
Legal obligations | Rates / Taxes | Expense | Taxes | 61 | 1st Quarter 2009 |
Legal obligations | External analysis of effluents in Cordoba | Expense | Services | 464 | 1st Quarter 2009 |
Legal obligations | Emission and noise control AE and trucks Distribution Centers | Expense | Services | 657 | 1st Quarter 2009 |
Travel expenses | Travel expenses to Distribution Centers | Expense | Travel expenses | 127 | 1st Quarter 2009 |
Waste Management | Desagotes CD | Expense | Services | 1,411 | 1st Quarter 2009 |
Ecological Island | Service of selective residue collection | Expense | Services | 55,564 | 2nd Quarter 2009 |
Ecological Island | Collection of residues | Expense | Services | 7,015 | 2nd Quarter 2009 |
Ecological Island | Crushing boxes | Expense | Services | 2,625 | 2nd Quarter 2009 |
Ecological Island | AE rental | Expense | Rentals | 1,572 | 2nd Quarter 2009 |
Effluents Plant | External analysis of effluents in Cordoba | Expense | Services | 3,959 | 2nd Quarter 2009 |
Waste Management | Anti-spill containers and kits and signs | Expense | Materials | 253 | 2nd Quarter 2009 |
Waste Management | Collection of dangerous residues at distribution centers | Expense | Services | 143 | 2nd Quarter 2009 |
Legal counseling | Counseling on environment legislation | Expense | Fees | 420 | 2nd Quarter 2009 |
Legal obligations | Rates / Taxes | Expense | Taxes | 55 | 2nd Quarter 2009 |
Legal obligations | External analysis of effluents in Cordoba | Expense | Services | 662 | 2nd Quarter 2009 |
Travel expenses | Travel expenses to Distribution Centers | Expense | Travel expenses | 100 | 2nd Quarter 2009 |
Waste Management | Desagotes CD | Expense | Services | 1,260 | 2nd Quarter 2009 |
Hydric resource | SGA-Water fountain protection campaign (CSR) | Expense | Services | 771 | 2nd Quarter 2009 |
Environment management systems | SGA - Maintenance audits ISO 14001 | Expense | Services | 1,941 | 2nd Quarter 2009 |
Ecological Island | Service of selective residue collection | Expense | Services | 57,423 | 3rd Quarter 2009 |
Ecological Island | Collection of residues | Expense | Services | 5,843 | 3rd Quarter 2009 |
41
Name of the project associated with the disbursement | Concept for which disbursement was realized or will be realized | Accounting record: Cost of Asset/ Expense | Description of asset or expense item | Amount Disbursed ThCh$ | Certain or expected date of disbursement |
Ecological Island | Crushing boxes | Expense | Services | 3,145 | 3rd Quarter 2009 |
Ecological Island | AE rental | Expense | Rentals | 1,769 | 3rd Quarter 2009 |
Effluents Plant | External analysis of effluents in Cordoba | Expense | Services | 215 | 3rd Quarter 2009 |
Waste Management | Anti-spill containers and kits and signs | Expense | Materials | 158 | 3rd Quarter 2009 |
Waste Management | Collection of dangerous residues at distribution centers | Expense | Services | 44 | 3rd Quarter 2009 |
Legal counseling | Counseling on environment legislation | Expense | Fees | 286 | 3rd Quarter 2009 |
Legal obligations | Rates / Taxes | Expense | Taxes | 56 | 3rd Quarter 2009 |
Legal obligations | External analysis plant | Expense | Services | 97 | 3rd Quarter 2009 |
Waste Management | Desagotes DC | Expense | Services | 1,289 | 3rd Quarter 2009 |
Hydric resource | SGA-Water fountain protection campaign (CSR) | Expense | Services | 3,729 | 3rd Quarter 2009 |
Environment management systems | Environment campaigns | Expense | Services | 299 | 3rd Quarter 2009 |
Ecological Island | Selective residue collection services | Expense | Services | 85,802 | 4th Quarter 2009 |
Ecological Island | Collection of residues | Expense | Services | 20,051 | 4th Quarter 2009 |
Waste management | Absorbent material | Expense | Materials | 344 | 4th Quarter 2009 |
Waste management | Containers | Expense | Materials | 859 | 4th Quarter 2009 |
Waste management | Anti-spill containers and kits and signs | Expense | Materials | 100 | 4th Quarter 2009 |
Effluents Plant | External analysis of effluents in Cordoba | Expense | Services | 2,210 | 4th Quarter 2009 |
Effluents Plant | Maintenance of fish habitat | Expense | Services | 344 | 4th Quarter 2009 |
Effluents Plant | Mud extraction effluents plant | Expense | Services | 24,059 | 4th Quarter 2009 |
Legal counseling | Counseling on environment legislation | Expense | Fees | 1,117 | 4th Quarter 2009 |
Waste Management | Collection of dangerous residues at distribution centers | Expense | Services | 573 | 4th Quarter 2009 |
Legal obligations | External analysis of effluents in Cordoba | Expense | Services | (424) | 4th Quarter 2009 |
Legal obligations | Rates / Taxes | Expense | Taxes | (56) | 4th Quarter 2009 |
Legal obligations | Emission and noise control AE and trucks Distribution Centers | Expense | Services | (27) | 4th Quarter 2009 |
Travel expenses | Travel expenses to Distribution Centers | Expense | Travel expenses | 940 | 4th Quarter 2009 |
Environment management systems | SGA - Maintenance audits ISO 14001 | Expense | Services | 4,010 | 4th Quarter 2009 |
Hydric resource | SGA-Water fountain protection campaign (CSR) | Expense | Services | 1,289 | 4th Quarter 2009 |
Waste Management | Desagotes DC/ Unforeseen events | Expense | Services | 3,211 | 4th Quarter 2009 |
Total Argentina |
|
|
| 378,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Brazil |
|
|
|
|
|
Interaction - Operation of Materials Treatment Area | Verification and control of fulfillment of regulations and rules related to industrial procedures | Expense | Interaction - Operation of Materials Treatment Area | 796,912 | NA |
Lixo disposal | Verification and control of fulfillment of regulations and rules related to industrial procedures | Expense | Lixo disposal | 119,329 | NA |
Mud disposal | Verification and control of fulfillment of regulations and rules related to industrial procedures | Expense | Mud disposal | 10,308 | NA |
ETE maintenance/operation costs | Verification and control of fulfillment of regulations and rules related to industrial procedures | Expense | ETE operation/maintenance costs | 115,030 | NA |
IBAMA quarterly rate | Verification and control of fulfillment of regulations and rules related to industrial procedures | Expense | IBAMA quarterly rate | 1,479 | NA |
Tratamento biológico esgoto sanitário Prédio Administrativo e Industrial | Verification and control of fulfillment of regulations and rules related to industrial procedures | Expense | Tratamento biológico esgoto sanitário Prédio Administrativo e Industrial | 5,102 | NA |
Environment week | Others | Expense | Environment week | 1,044 | NA |
Environment activities (cleaning day, Christmas Eco) | Others | Expense | Environment activities (cleaning day, Christmas Eco) | 76 | NA |
Disposal of Class I residues | Verification and control of fulfillment of regulations and rules related to industrial procedures | Expense | Disposal of Class I residues | 478 | NA |
Collection/disposal of ambulatory residues | Verification and control of fulfillment of regulations and rules related to industrial procedures | Expense | Collection/disposal of ambulatory residues | 1,180 | NA |
Purchase containers | Improvements and/or investments in production processes | Expense | Purchase containers | 3,221 | NA |
Acquisition of anaerobic mud for ETE | Improvements and/or investments in production processes | Expense | Acquisition of anaerobic mud for ETE | 8,863 | NA |
Environment Consultancy - Customize ETE according to FEEMA and IEMA patterns | Improvements and/or investments in production processes | Expense | Environment Consultancy - Customize ETE according to FEEMA and IEMA patterns | 17,093 | NA |
Disposal of non-useful products | Improvements and/or investments in production processes | Expense | Disposal of non-useful products | 3,012 | NA |
Total Brazil |
|
|
| 1,083,128 |
|
|
|
|
|
|
|
Chile |
|
|
|
|
|
AGA gasification project | Save energy | Expense | Improvement of productive process capacity | 83,425 | 07-May |
Improvements in recovering condensation | Save energy | Expense | Improve energy efficiency | 14,402 | 02-Jul |
Improvements in recovering condensation | Save energy | Expense | Improve energy efficiency | 7,700 | 4th Quarter 2009 |
Blowing equipments | Save energy | Expense | Improve energy efficiency | 17,482 | 04-May |
Blowing equipments | Save energy | Expense | Improve energy efficiency | 1,046 | 3rd and 4th Quarter 2009 |
Increase generating capacity-2nd stage | Save energy | Expense | Improve energy efficiency | 11,491 | 30-Sep |
Increase generating capacity-2nd stage | Save energy | Expense | Improve energy efficiency | 4,077 | 4th Quarter 2009 |
Equipments for the increase of cold capacity | Save energy | Expense | Reduces energy consumption in the cooling process | 21,726 | 29-Jul |
Equipments for the increase of cold capacity | Save energy | Expense | Reduces energy consumption in the cooling process | 4 | 4th Quarter 2009 |
42
Name of the project associated with the disbursement | Concept for which disbursement was realized or will be realized | Accounting record: Cost of Asset/ Expense | Description of asset or expense item | Amount Disbursed ThCh$ | Certain or expected date of disbursement |
Increase capacity of cooling equipments | Save energy | Expense | Reduces energy consumption in the cooling process | 40,171 | 29-Jul |
Increase capacity of cooling equipments | Save energy | Expense | Reduces energy consumption in the cooling process | 99 | 4th Quarter 2009 |
Total Chile |
|
|
| 201,623 |
|
Total Expenses |
|
|
| 1,663,017 |
|
43
Note 35 – Time Deposits
The Company and its subsidiaries have invested in time deposits that are valued at the restated cost plus accrued interests as of the closing date of these financial statements, according to the following table:
Financial Institution | Currency | Rate | 30-Sep-09 | 30-Sep-08 |
ThCh$ | ThCh$ | |||
BANCO SANTANDER | UF | 2.42% | 0 | 14,433,300 |
ROYAL BANK OF CANADA | US$ | 2.73% | 0 | 11,757,474 |
BANCO BBVA | UF | 1.60% | 8,154,348 | 7,938,756 |
BANCO DEL ESTADO | UF | 0.50% | 5,786,718 | 5,458,542 |
BANCO CHILE | UF | 3.20% | 3,010,075 | 5,423,466 |
BANCO CHILE | UF | 0.70% | 0 | 3,200,421 |
BANCO CHILE | UF | 3.40% | 0 | 2,222,320 |
BANCO CHILE | UF | 1.20% | 0 | 2,013,062 |
BANCO VOTORANTIM | R$ | 13.87% | 0 | 31,910 |
BANCO SANTANDER | R$ | 13.61% | 33,324 | 0 |
BANCO SANTANDER | UF | 2.40% | 4,549,317 | 0 |
BANCO BBVA | UF | 1.50% | 2,734,608 | 0 |
BANCO BBVA FRANCÉS | AR$ | 11.00% | 17,220 | 0 |
BANCO BCI | Ch$ | 0.48% | 6,599,123 | 0 |
BANCO BCI | UF | 1.00% | 4,684,729 | 0 |
BANCO HSBC | Ch$ | 0.50% | 11,336,563 | 0 |
BANCO ITAÚ | UF | 1.20% | 7,740,393 | 0 |
BANCO ITAÚ | UF | 2.70% | 3,328,511 | 0 |
BANCO ITAÚ | Ch$ | 2.16% | 4,359,611 | 0 |
BANCO DEUTSCHE BANK | Ch$ | 0.48% | 8,808,932 | 0 |
TOTAL |
|
| 71,143,472 | 52,479,251 |
44
Note 36 – Implementation of International Accounting Standards
It is of public knowledge that the country is committed to the development of a convergence plan to fully adopt International Financial Reporting Standards (IFRS), based on a progressive calendar as from year 2009. In accordance with the regulations established by the Chilean Institute of Accountants on this matter and what has been specifically established by circulars N°427 and N°485 of the Superintendencia de Valores y Seguros(Chilean Securities and Exchange Commission), the Company has chosen to present its financial statements for the year ended December 31, 2009 under the current norm, including only as pro-forma information within the 2009 the financial statements, the information adjusted in accordance to international accounting standards.
Consequently, 2010 will be the first year in which the Company will perform a complete application of IFRS. The Company is developing a plan to integrally face the impacts of this change.
45
I.
Analysis of Results for the Third Quarter of 2009 and the Period ended September 30, 2009
Embotelladora Andina announces Consolidated Results for the Third Quarter and Nine Months ended September 30, 2009
All figures are expressed under Chilean GAAP and in constant Chilean pesos as of September 30, 2009; therefore all variations are in real terms over a 12 month period inflation rate of -1.0%. For a better understanding of the analysis by country we include a chart based on nominal local currency (Chilean pesos, Brazilian reais and Argentine pesos, respectively.)
·
Consolidated Sales Volume for the Third Quarter amounted to 103.6 million unit cases, an increase of 0.5% during the quarter.
·
Operating Income reached Ch$26,335 million during the Third Quarter of 2009, a 3.0% decrease. Operating Margin was 14.6%.
·
Third Quarter EBITDA totaled Ch$34,584 million, a 3.8% decrease in real terms. EBITDA Margin was 19.1%.
·
Net Income for the Third Quarter of 2009 reached Ch$19,582 million, an increase of 16.1%.
·
Consolidated Sales Volume for the period ended September 30, 2009 totaled 323.3 million unit cases, an increase of 1.9%.
·
Consolidated Operating Income reached Ch$81,129 million during the nine-month period ended September 30, 2009, a 6.9% decrease. Operating Margin was 15.2%.
·
Consolidated EBITDA for the nine-month period ended September 30, 2009 amounted to Ch$105,629 million, a 6.6% decrease. EBITDA Margin was 19.8%.
·
Net Income for the nine-month period ended September 30, 2009 reached Ch$54,209 million, a decrease of 1.3%.
Comments from the Chief Executive Officer, Mr. Jaime Garcia R.
“I am pleased to prove that the foundations of our business remain strong and that once again we can report solid operating results. During this 9 month period our consolidated volumes grew nearly 2%, increasing our market share in terms of volume and of value in the three countries where we operate, with increased prices even above local inflations. Once again our financial results were affected mainly by the devaluation of local currencies in the three countries where we operate, having accounting impacts (due to the translation of figures from our operations in Brazil and Argentina), as well as economic impacts (due to our dollar denominated costs).More than ever, we believe that this year we have implemented the correct strategies to maintain our growth; and we work on a daily basis to assure long term sustainable results.”
CONSOLIDATED SUMMARY
During the Third Quarter and Nine Month Period ended September 30, 2009, currencies on average, devaluated in the three countries where we operate affecting our US dollar denominated costs. The Brazilian real and Argentine peso devalued with respect to the end of period closing exchange rate of the Chilean peso, resulting in a negative accounting effect over income and a positive effect over costs and expenses upon translation of figures, during the Third Quarter and Nine Month Period ended September 30, 2009; in the end having a negative effect over results.
Third Quarter 2009 vs. Third Quarter 2008
Consolidated Sales Volume for the Quarter reached 103.6 million unit cases, remaining stable compared to the same period of 2008, and mainly driven by our Brazilian operation and impacted by lower volumes in our Argentine operation. Soft drinks remained stable while juices, waters and beer (“other categories”) increased 8.9%.
46
Net Sales amounted to Ch$180,659 million, a 1.0% decrease, due to the negative effect upon translation of figures from Brazil and Argentina, which more than offset the increased volumes recorded during the period and the adjustment of prices to local inflations.
Cost of Sales per unit case decreased 1.1%, mainly due to the effect upon translation of figures from Brazil and Argentina, lower PET resin prices in the three countries, and lower sugar costs in the case of Argentina. These factors offset the following effects: (i) significant cost increases of sugar for Chile and Brazil; (ii) devaluation of the three currencies during the quarter having impact over dollar denominated costs; (iii) increased concentrate costs due to higher prices, and (iv) increased labor costs in Argentina.
SG&A expenses decreased 1.2%, due to the effect upon translation of figures of our Brazilian and Argentine operations which more than offset the increased freight fees, labor costs in Argentina, and advertising investments resulting from product launches during the quarter.
Stable volumes, an increase in local prices, impacts over expenses and costs and the effect upon translation of figures already explained, resulted in a Consolidated Operating Income of Ch$26,335 million, a 3.0% decrease. Operating Margin was 14.6%.
Finally, Consolidated EBITDA amounted to Ch$34,584 million, a 3.8% decrease. EBITDA Margin was 19.1%.
Nine Months ended September 30, 2009 vs. Nine Months ended September 30, 2008
Consolidated Sales Volume amounted to 323.3 million unit cases, an increase of 1.9%. Soft Drinks grew 1.7%, while the other categories of, Juices, Waters and Beer together increased by 4.6%. Particularly, the Juices segment recorded a significant 11.4% increase. Net Sales amounted to Ch$532,207 million, a 3.4% decrease. Cost of Sales per unit case and SG&A expenses per unit case decreased 2.4% and 7.7%, respectively for the same reasons already explained for the quarter. Consolidated Operating Income amounted to Ch$81,129 million, a 6.9% decrease. Operating Margin was 15.2%. Consolidated EBITDA amounted to Ch$105,629 million, a decrease of 6.6%. EBITDA Margin was 19.8%.
SUMMARY BY COUNTRY
CHILE
Third Quarter 2009 vs. Third Quarter 2008
During the quarter, Sales Volume amounted to 34.8 million unit cases, a 1.1% growth. During the quarter we launched Fanta Uva and Aquarius, naturally flavored water with 10% fruit juice (pear and apple). Additionally our market share was 69.9%.
Net Sales amounted to Ch$61,957 million, reflecting a growth of 5.2%, explained by increased volumes and by a 4.0% increase of average income during the quarter.
Cost of Sales per unit case increased 9.8%, mainly explained by a significant increase of sugar prices and the average devaluation of the Chilean peso (+5.7%); partially offset by lower PET resin prices.
SG&A expenses increased 8.1% mainly explained by increased in advertising investments which support the new launches; and by higher freight expenses.
The previously explained effects of Sales, Costs and Expenses result in an Operating Income of Ch$9,559 million, a 15.7% decrease. Operating Margin was 15.4%.
EBITDA amounted to Ch$13,084 million, a 12.8% decrease. EBITDA Margin was 21.1%.
Nine Months ended September 30, 2009 vs. Nine Months ended September 30, 2008
During the Nine Months ended September 30, 2009, Sales Volume amounted to 107.5 million unit cases a 1.2% growth. This growth was a result of increased soft drink volumes (+0.8%) as well as an increase in the Juices and Waters segment
47
(+3.3%). Net Sales amounted to Ch$189,804 million, a 2.5% improvement, resulting from higher volumes and prices. Cost of Sales per unit case and SG&A expenses increased 4.3% and 4.5% respectively given by the same reasons already explained for the quarter. Operating Income decreased 8.4% amounting to Ch$34,597 million. Operating Margin was 18.2%. EBITDA amounted to Ch$45,427 million, a decrease of 7.2%. EBITDA Margin was 23.9%.
BRAZIL
The Brazilian real devalued with respect to the end of period exchange rate of the Chilean peso as of September 2009, resulting in a negative accounting impact over income and a positive impact over costs and expenses upon translation of figures during consolidation; in the end having a negative effect over results. Additionally, during 2009 the Brazilian real has devalued with respect to the U.S. dollar which has affected our U.S. dollar denominated costs. For a better understanding of the operation in Brazil we include a chart based on nominal local currency (Brazilian reais).
Third Quarter 2009 vs. Third Quarter 2008
Sales Volume for the quarter amounted to 41.8 million unit cases, representing a 3.3% increase. The soft drinks segment increased 3.0% and the Other Categories (juices, waters and beer) increased 9.1%. During this quarter we began distributingSucos del Valle and theCrystal mineral water brand (both acquired by The Coca-Cola System), there were also image changes and launches of two new flavors for theAquarius Fresh brand. Additionally our market share was 58.2%.
Net Sales reached Ch$80,867 million, representing a decrease of 0.4%. This decrease is explained by effect upon translation of figures which offset the higher volumes and price adjustments above local inflation.
Cost of Sales per unit case decreased 3.8% mainly explained by the effect upon translation of figures and the decrease of PET resin prices, which were partially offset by: (i) a significant increase of sugar prices, (ii) increased concentrate prices (given price adjustments), and (iii) the 11.9% average devaluation of the Brazilian real during the quarter having an impact over U.S. dollar-denominated raw materials. All of which was by lower PET resin prices.
SG&A expenses decreased 3.4% due to effect upon translation of figures, partially offset by increased freight fees and advertising investments to support the new launches.
Increased volumes and prices along with the impact upon costs and expenses resulted in an Operating Income of Ch$13,222 million (+5.7%). Operating Margin was 16.4%.
EBITDA amounted to Ch$16,017 million, an increase of 1.4%. EBITDA Margin was 19.8%.
Nine Months ended September 30, 2009 vs. Nine Months ended September 30, 2008
Sales Volume amounted to 129.7 million unit cases, a 4.4% increase driven by the soft drinks segment (+4.6%). Net Sales reached Ch$220,827 million (-9.8%). Cost of Sales per unit case decreased 6.9%, for the same reasons set forth during the quarter. Operating Income decreased 10.5%, amounting to Ch$34,508 million. Operating Margin was 15.6%. EBITDA amounted to Ch$42,532 million, a decrease of 10.9%. EBITDA Margin was 19.3%.
ARGENTINA
The Argentine peso devalued with respect to the end of period exchange rate of the Chilean peso as of September 2009, resulting in a negative accounting impact over income and a positive impact over costs and expenses upon translation of figures during consolidation; in the end having a negative effect over results. Additionally, during 2009 the Argentine peso has devalued with respect to the U.S. dollar which has affected our U.S. dollar denominated costs. For a better understanding of the operation in Argentina we include a chart based on nominal local currency (Argentine pesos.)
48
Third Quarter 2009 vs. Third Quarter 2008
Sales Volume for the quarter decreased 4.5% reaching 27.0 million unit cases. Soft drinks volumes decreased (-5.3%) and the Juices and Waters categories increased (+43%). However our market share increased to 53.6% during the quarter the highest level during the last five years. Lower volumes are mainly explained by the comparison with the third quarter of 2008, when we recorded growth levels of 11.7% supported by the increased salaries and private consumption that during this quarter have been moderate. Additionally uncommonly low temperatures were recorded during this quarter, a difference of 10°C with respect to the previous year.
Net Sales reached Ch$37,980 million, a decrease of 12.8% explained by the effect upon translation of figures which offset price adjustments above inflation affecting our costs.
Cost of Sales per unit case decreased 8.7%, mainly explained by the effect upon translation of figures and lower sugar and PET resin prices which were partially offset by: (i) increased concentrate costs (due to higher prices), (ii) increased labor costs, (iii) the effect of U.S. dollar denominated raw materials due to the devaluation of the Argentine peso during the period (+25.7).
SG&A expenses decreased 7.3% mainly due to the effect upon translation of figures and offset by increased salaries, freight costs and advertising investments carried out during the period as a result of new products launchings and a stronger advertising effort focused on the Juices and Isotonic segment.
Increased prices along with the effects upon costs and expenses resulted in a 12.5% improvement of Operating Income which amounted to Ch$4,391 million. Operating Margin was 11.6% (+260 basis points).
EBITDA reached Ch$6,320 million, an increase of 10.1%. EBITDA Margin was 16.6% (+340 basis points).
Nine Months ended September 30, 2009 vs. Nine Months ended September 30, 2008
Sales Volume for the Nine Months ended September 30, 2009 reached 86.1 million unit cases, a decrease of 0.6%. Net Sales reached Ch$122,919 million (-0.2%). Cost of Sales per unit case decreased 5.5% and SG&A expenses increased 6.2%, for the same reasons set forth during the quarter. Operating Income amounted to Ch$14,496 million, a 16.1% increase. Operating Margin was 11.8% (+170 basis points). EBITDA reached Ch$20,144 million, an increase of 11.6%. EBITDA Margin was 16.4% (+170 basis points).
NON-OPERATING RESULTS
Nine Months ended September 30, 2009 vs. Nine Months ended September 30, 2008
Non-Operating Results totaled a loss of (Ch$5,858) million, which compares positively to a higher accumulated loss of (Ch$16,536) million recorded during 2008. This decreased loss in the non-operating result line is best explained by:
·
Financial Expense/Income (Net): Strongly impacted by a positive variation resulting from losses in financial hedging agreements that took place during 2008.
·
Other Non Operating Income/Expenses: Resulted in a lower loss compared to the previous period, basically explained by reversals against earnings from the conversion adjustment reserve realized during 2008, as a result of dividends received from foreign subsidiaries.
Finally, Net Income amounted to Ch$54,209 million, representing a 1.3% decrease and Net Margin was 10.2% an increase of 20 points.
49
ANALYSIS OF THE BALANCE SHEET
As of September 30, 2009, the Company’s Net Cash Position amounted to US$77.4 million. Accumulated excess cash is invested in short term time deposits with top of the line banks and money markets.
The Company holds 32.4% of its financial assets in UFs, 44.5% in Chileanpesos, 18.4% in Brazilianreais, 3.9% in U.S. dollars, and 0.8% in Argentinepesos. Total financial assets amounted to US$223.5 million.
Financial debt level as of September 30, 2009 amounted to US$146.1 million, 97.9% of which is UF-denominated, 1.4% in Argentinepesos, and 0.7% is in Brazilianreais.
_______________________
*Unidad de Fomento. Chilean peso-denominated monetary unit daily indexed to the Chilean inflation rate of the previous month.
II.
Main Indicators
The main indicators contained in the table reflect for both periods the solid financial position and profitability of Embotelladora Andina S.A.
Main Indicators | ||||||
INDICATORS | Unit | Sep-09 | Dec-2008 | Sep-08 | Variance | |
LIQUIDITY |
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| Current Ratio | Times | 1.97 | 1.94 | 2.00 | -0.03 |
| Acid Tests | Times | 1.71 | 1.71 | 1.73 | -0.03 |
| Working Capital | MCh$ | 29,295 | 16,563 | 14,664 | 14,631 |
ACTIVITY |
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| Investments | MCh$ | 36,154 | 64,735 | 45,961 | -9,807 |
| Inventory turnover | Times | 10.01 | 14.91 | 10.85 | -0.84 |
| Days of inventory on hand | Days | 35.95 | 24.15 | 33.17 | 2.78 |
INDEBTEDNESS |
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| Debt to equity ratio | % | 73.93% | 73.06% | 78.42% | -4.49% |
| Short-term liabilities to total liabilities | % | 48.98% | 51.83% | 46.01% | 2.97% |
| Long-term liabilities to total liabilities | % | 51.02% | 48.17% | 53.99% | -2.97% |
| Interest charges coverage ratio | Times | 31.84 | 37.01 | 32.59 | -0.76 |
PROFITABILITY |
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| Return over equity | % | 16.56% | 29.07% | 18.67% | -2.11% |
| Return over total assets | % | 9.55% | 16.01% | 10.10% | -0.56% |
| Return over operating assets | % | 18.42% | 32.53% | 20.54% | -2.12% |
| Operating income | MCh$ | 81,129 | 134,765 | 87,124 | -5,996 |
| Operating margin | % | 15.24% | 16.09% | 15.81% | -0.57% |
| EBITDA1 | MCh$ | 107,162 | 164,027 | 103,730 | 3,432 |
| EBITDA margin | % | 20.14% | 19.58% | 18.82% | 1.31% |
| Dividends payout ratio - Series A shares | % | 5.66% | 7.67% | 7.33% | -1.67% |
| Dividends payout ratio - Series B shares | % | 5.31% | 6.96% | 7.00% | -1.68% |
1Earnings before income taxes, interests, depreciation, amortization and extraordinary items.
Liquidity indicators reflect the Company’s solid financial position and profitability.
Liquidity indicators remain stable with the composition of the short term balance as of September 30, 2009 very similar to the previous period.
50
Indicators of indebtedness reflect a decrease mainly due to the increase in Shareholders’ equity resulting from the effect of exchange rate difference over the foreign subsidiaries of the company and from the amortizations realized of the local bond. During the period net financial expenses amounted to Ch$2,441 million and earnings before interests and taxes amounted to Ch$77,711 million, achieving an interest coverage of 31.84 times.
At the closing of the period ended September 30, 2009, operating profitability indicators were affected by the reasons explained in paragraph I.
III.
Analysis of Book Values and Present Value of Assets
With respect to the Company’s main assets the following should be noted:
Given the high rotation of the items that compose working capital, book values of current assets are considered to represent market values.
Fixed asset values in the Chilean companies are presented at restated acquisition cost. In the foreign companies, fixed assets are valued in accordance with Technical Bulletin N° 64 issued by the Chilean Institute of Accountants (controlled in historical dollars).
Depreciation is estimated over the restated value of assets along with the remaining useful economic life of each asset.
All fixed assets that are considered available for sale are held at their respective market values.
Investments in shares, in situations where the Company has a significant influence on the issuing company, are presented following the equity method. The Company’s participation in the results of the issuing company for each year has been recognized on an accrual basis, and unrealized results on transactions between related companies have been eliminated.
In summary, assets are valued in accordance with generally accepted accounting standards in Chile and the instructions provided by the Chilean Securities Commission, as shown in Note 2 of the Financial Statements.
IV.
Analysis of the Main Components of Cash Flow
| Sep-2009 | Sep-2008 | Variation MCh$ | Variation % |
MCh$ | MCh$ | |||
Operating | 85,627 | 92,324 | (6,697) | -7% |
Financing | (58,042) | (67,016) | (8,974) | 13% |
Investment | (36,716) | (63,208) | 26,492 | 42% |
Net cash flow for the Period | (9,131) | (37,900) | 28,769 | 76% |
The Company generated negative net cash flow of MCh$9,131during the quarter, analyzed as follows:
Operating activities generated a positive cash flow of MCh$88,149 representing a negative variation of MCh$4,175 mainly explained by higher financial income resulting from the liquidation of cross currency swap agreements during 2008 which did not occur during 2009, partially offset by lower collections from clients and lower payments to suppliers and employees.
Financing activities generated a negative cash flow of MCh$58,042; with a positive variation of MCh$8,974 regarding the previous year, mainly due to lower additional dividend payments during 2009 regarding the previous year.
Investment activities generated a negative cash flow of MCh$36,716 with a positive variation of MCh$26,492 regarding the previous year, mainly due to lower additions to property, plant and equipment during 2009 with respect to the previous year and lower investments in long term financial instruments.
51
V.
Analysis Of Market Risk
Interest Rate Risk
As of September 30, 2009 and 2008, 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:
36%
Brazilian real:
41%
Argentine peso:
23%
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.
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 35% and 40% 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.
********
Embotelladora Andina is among the ten largest Coca-Cola bottlers in the world, servicing franchised territories with 37 million people, delivering over 7 million liters of soft drinks, juices, and bottled waters on a daily basis. It is a stock corporation controlled in equal parts by the Garcés Silva, Hurtado Berger, Said Handal and Said Somavía families.
In Chile, Andina has the franchise to produce and commercialize Coca-Cola products through Embotelladora Andina Chile; in Brazil through de Rio de Janeiro Refrescos; and in Argentina through Embotelladora del Atlántico. The company’s value creation proposal is to be the market leader for non-alcoholic beverages, developing an excellent relationship with the consumers of its products as well as with its employees, clients, suppliers and with Coca-Cola, its strategic partner. For more information about the Company please visit: www.embotelladoraandina.com.
This release may contain forward-looking statements reflecting Embotelladora Andina’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.
52
Material Events
During the period between January 1, 2009 and September 30, 2009, the following material events were filed:
1.
Appointment of new General Manager of Chilean Soft Drinks Operation
The Board of Directors of Embotelladora Andina S.A. has appointed Mr. Abel Bouchon Silva as new General Manager of the Chilean Soft Drink Operation. Mr. Bouchon will begin office on March 1, 2009.
2.
New Subsidiary Incorporated
The Board of Directors of Embotelladora Andina S.A. has agreed to incorporate a new subsidiary corporation to be engaged in the industrial and commercial areas. Its corporate capital will be Ch$10,000.000, and 99% of its capital stock will be owned by Embotelladora Andina S.A.
3.
Regular Shareholders’ Meeting
During the Regular Shareholders’ Meeting held April 14, 2009, the following was resolved:
I.
Renewal of Board of Directors as follows:
Director
Alternate Director
Juan Claro González (Chairman)
Ernesto Bertelsen Repetto
Gonzalo Said Handal (Vice Chairman)
Jose Maria Eyzaguirre Baeza
José Antonio Garcés Silva (junior)
Patricio Parodi Gil
Arturo Majlis Albala
Cristian Alliende Arriagada
Salvador Said Somavia
José Domingo Eluchans Urenda
Bryan J. Smith
Jorge Hurtado Garretón
Heriberto Urzúa Sánchez
Gonzalo Parot Palma
II.
Distribution of Final Dividend Nº 165 on account of the fiscal year ending December 31, 2008:
a) Ch$14.13 (Fourteen pesos and 13/100) per Series A Shares and;
b) Ch$15.543 (Fifteen pesos and 543/100) per Series B Shares
Payment began on April 30, 2009
III.
Distribution of Additional Dividend Nº 166 on account of the Retained Earnings Fund.
a) Ch$43.00 (forty three pesos) per each Series A share and;
b) Ch$47.30 (forty seven pesos and 30/100) per each Series B share.
Payment began May 28, 2009.
4.
Interim Dividend
Distribution of Interim Dividend Nº 167 on account of the fiscal year ending December 31, 2009:
a)
Ch$7.00 (seven pesos) per each Series A share and;
b)
Ch$7.70 (seven pesos and 70/100) per each Series B share.
Payment began July 30, 2009.
5.
Interim Dividend
Distribution of Interim Dividend Nº 168 on account of the fiscal year ending December 31, 2009:
53
c)
Ch$7.00 (seven pesos) per each Series A share and;
d)
Ch$7.70 (seven pesos and 70/100) per each Series B share.
Payment began October 28, 2009.
54
Embotelladora Andina S.A. |
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Third Quarter Results for the period ended September 30, Chilean GAAP |
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(In million constant 09/30/09 Chilean Pesos, except per share) |
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| Third Quarter 2009 | Third Quarter 2008 |
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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) | 34.8 | 41.8 | 27.0 | 103.6 | 34.4 | 40.5 | 28.3 | 103.2 | 0.5% |
Soft Drinks | 29.1 | 39.2 | 26.3 | 94.6 | 29.0 | 38.1 | 27.8 | 94.9 | -0.3% |
Mineral Water | 1.4 | 0.5 | 0.4 | 2.4 | 1.4 | 0.5 | 0.2 | 2.1 | 13.3% |
Juices | 4.2 | 1.3 | 0.3 | 5.8 | 4.0 | 1.0 | 0.3 | 5.3 | 10.7% |
Beer | NA | 0.8 | NA | 0.8 | NA | 0.9 | NA | 0.9 | -10.9% |
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NET SALES | 61,957 | 80,867 | 37,980 | 180,659 | 58,895 | 81,201 | 43,542 | 182,471 | -1.0% |
COST OF SALES | (36,914) | (45,277) | (21,178) | (103,226) | (33,234) | (45,538) | (26,249) | (103,854) | -0.6% |
GROSS PROFIT | 25,043 | 35,589 | 16,801 | 77,434 | 25,661 | 35,663 | 17,293 | 78,617 | -1.5% |
Gross Margin | 40.4% | 44.0% | 44.2% | 42.9% | 43.6% | 43.9% | 39.7% | 43.1% |
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SELLING AND ADMINISTRATIVE EXPENSES | (15,484) | (22,367) | (12,410) | (50,261) | (14,323) | (23,151) | (13,390) | (50,863) | -1.2% |
CORPORATE EXPENSES (4) | 0 | 0 | 0 | (838) | 0 | 0 | 0 | (600) | 39.7% |
OPERATING INCOME | 9,559 | 13,222 | 4,391 | 26,335 | 11,339 | 12,512 | 3,903 | 27,153 | -3.0% |
Operating Margin | 15.4% | 16.4% | 11.6% | 14.6% | 19.3% | 15.4% | 9.0% | 14.9% |
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EBITDA (1) | 13,084 | 16,017 | 6,320 | 34,584 | 15,011 | 15,800 | 5,743 | 35,953 | -3.8% |
Ebitda Margin | 21.1% | 19.8% | 16.6% | 19.1% | 25.5% | 19.5% | 13.2% | 19.7% |
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NON OPERATIONAL RESULTS |
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FINANCIAL EXPENSE/INCOME (Net) |
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| (1,333) |
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| (3,554) | -62.5% |
RESULTS FROM AFFILIATED |
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| 916 |
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| 264 | 247.3% |
AMORTIZATION OF GOODWILL |
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| (1,650) |
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| (1,637) | 0.8% |
OTHER INCOME/(EXPENSE) |
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| (461) |
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| (1,215) | -62.1% |
PRICE LEVEL RESTATEMENT (3) |
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| 4,213 |
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| (648) | 750.3% |
NON-OPERATING RESULTS |
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| 1,685 |
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| (6,790) | 124.8% |
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INCOME BEFORE INCOME TAXES; AMORTIZATION OF |
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NEGATIVE GOODWILL AND MINORITY INTEREST |
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| 28,020 |
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| 20,363 | 37.6% |
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INCOME TAXES |
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| (8,438) |
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| (3,502) | 140.9% |
MINORITY INTEREST |
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| (0) |
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| (0) | NA |
AMORTIZATION OF NEGATIVE GOODWILL |
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| 0 |
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| 0 | NA |
NET INCOME |
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| 19,582 |
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| 16,861 | 16.1% |
Net Margin |
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| 10.8% |
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| 9.2% |
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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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| 25.8 |
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| 22.2 |
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EARNINGS PER ADS |
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| 154.5 |
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| 133.1 | 16.1% |
(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 + Exchange rate gains & losses. |
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(4) Corporate expenses partially reclassified to the operations. |
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55
Embotelladora Andina S.A. |
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Third Quarter Results for the period ended September 30, Chilean GAAP |
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(In million nominal US$, except per share) |
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| Exch. Rate : | $ 550.36 |
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| Exch. Rate : | $ 551.31 |
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| Third Quarter 2009 | Third Quarter 2008 |
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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) | 34.8 | 41.8 | 27.0 | 103.6 | 34.4 | 40.5 | 28.3 | 103.2 | 0.5% |
Soft Drinks | 29.1 | 39.2 | 26.3 | 94.6 | 29.0 | 38.1 | 27.8 | 94.9 | -0.3% |
Mineral Water | 1.4 | 0.5 | 0.4 | 2.4 | 1.4 | 0.5 | 0.2 | 2.1 | 13.3% |
Juices | 4.2 | 1.3 | 0.3 | 5.8 | 4.0 | 1.0 | 0.3 | 5.3 | 10.7% |
Beer | NA | 0.8 | NA | 0.8 | NA | 0.9 | NA | 0.9 | -10.9% |
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NET SALES | 112.6 | 146.9 | 69.0 | 328.3 | 107.9 | 148.8 | 79.8 | 334.3 | -1.8% |
COST OF SALES | (67.1) | (82.3) | (38.5) | (187.6) | (60.9) | (83.4) | (48.1) | (190.3) | -1.4% |
GROSS PROFIT | 45.5 | 64.7 | 30.5 | 140.7 | 47.0 | 65.3 | 31.7 | 144.0 | -2.3% |
Gross Margin | 40.4% | 44.0% | 44.2% | 42.9% | 43.6% | 43.9% | 39.7% | 43.1% |
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SELLING AND ADMINISTRATIVE EXPENSES | (28.1) | (40.6) | (22.5) | (91.3) | (26.2) | (42.4) | (24.5) | (93.2) | -2.0% |
CORPORATE EXPENSES (4) | 0.0 | 0.0 | 0.0 | (1.5) | 0.0 | 0.0 | 0.0 | (1.1) | 38.5% |
OPERATING INCOME | 17.4 | 24.0 | 8.0 | 47.9 | 20.8 | 22.9 | 7.2 | 49.7 | -3.8% |
Operating Margin | 15.4% | 16.4% | 11.6% | 14.6% | 19.3% | 15.4% | 9.0% | 14.9% |
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EBITDA (1) | 23.8 | 29.1 | 11.5 | 62.8 | 27.5 | 28.9 | 10.5 | 65.9 | -4.6% |
Ebitda Margin | 21.1% | 19.8% | 16.6% | 19.1% | 25.5% | 19.5% | 13.2% | 19.7% |
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NON OPERATIONAL RESULTS |
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FINANCIAL EXPENSE/INCOME (Net) |
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| (2.4) |
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| (6.5) | -62.8% |
RESULTS FROM AFFILIATED |
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| 1.7 |
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| 0.5 | 244.4% |
AMORTIZATION OF GOODWILL |
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| (3.0) |
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| (3.0) | 0.0% |
OTHER INCOME/(EXPENSE) |
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| (0.8) |
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| (2.2) | -62.4% |
PRICE LEVEL RESTATEMENT (3) |
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| 7.7 |
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| (1.2) | 744.9% |
NON-OPERATING RESULTS |
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| 3.1 |
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| (12.4) | 124.6% |
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INCOME BEFORE INCOME TAXES; AMORTIZATION OF |
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NEGATIVE GOODWILL AND MINORITY INTEREST |
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| 50.9 |
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| 37.3 | 36.5% |
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INCOME TAXES |
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| (15.3) |
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| (6.4) | 138.9% |
MINORITY INTEREST |
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| (0.0) |
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| (0.0) | NA |
AMORTIZATION OF NEGATIVE GOODWILL |
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| 0.0 |
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| 0.0 | NA |
NET INCOME |
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| 35.6 |
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| 30.9 | 15.2% |
Net Margin |
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| 10.8% |
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| 9.2% |
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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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| 0.05 |
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| 0.04 |
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EARNINGS PER ADS |
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| 0.28 |
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| 0.24 | 15.2% |
(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 + Exchange rate gains & losses. |
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(4) Corporate expenses partially reclassified to the operations. |
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56
Embotelladora Andina S.A. |
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Nine Months Results for the period ended September 30, Chilean GAAP |
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(In million constant 09/30/09 Chilean Pesos, except per share) |
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| January-September 2009 | January-September 2008 |
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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) | 107.5 | 129.7 | 86.1 | 323.3 | 106.2 | 124.3 | 86.6 | 317.1 | 1.9% |
Soft Drinks | 90.3 | 121.7 | 84.2 | 296.3 | 89.6 | 116.4 | 85.3 | 291.3 | 1.7% |
Mineral Water | 5.4 | 1.7 | 0.9 | 7.9 | 5.3 | 2.0 | 0.8 | 8.2 | -3.3% |
Juices | 11.8 | 3.4 | 1.0 | 16.3 | 11.3 | 2.8 | 0.5 | 14.6 | 11.4% |
Beer | NA | 2.9 | NA | 2.9 | NA | 3.1 | NA | 3.1 | -6.0% |
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NET SALES | 189,804 | 220,827 | 122,919 | 532,207 | 185,210 | 244,951 | 123,182 | 551,042 | -3.4% |
COST OF SALES | (110,212) | (124,210) | (69,510) | (302,590) | (104,413) | (127,863) | (74,040) | (304,016) | -0.5% |
GROSS PROFIT | 79,592 | 96,616 | 53,408 | 229,617 | 80,796 | 117,088 | 49,143 | 247,026 | -7.0% |
Gross Margin | 41.9% | 43.8% | 43.5% | 43.1% | 43.6% | 47.8% | 39.9% | 44.8% |
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SELLING AND ADMINISTRATIVE EXPENSES | (44,995) | (62,108) | (38,912) | (146,015) | (43,043) | (78,551) | (36,655) | (158,249) | -7.7% |
CORPORATE EXPENSES (4) | 0 | 0 | 0 | (2,474) | 0 | 0 | 0 | (1,653) | 49.6% |
OPERATING INCOME | 34,597 | 34,508 | 14,496 | 81,129 | 37,753 | 38,537 | 12,488 | 87,124 | -6.9% |
Operating Margin | 18.2% | 15.6% | 11.8% | 15.2% | 20.4% | 15.7% | 10.1% | 15.8% |
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EBITDA (1) | 45,427 | 42,532 | 20,144 | 105,629 | 48,973 | 47,754 | 18,049 | 113,122 | -6.6% |
Ebitda Margin | 23.9% | 19.3% | 16.4% | 19.8% | 26.4% | 19.5% | 14.7% | 20.5% |
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NON OPERATIONAL RESULTS |
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FINANCIAL EXPENSE/INCOME (Net) |
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| (1,322) |
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| (10,340) | -87.2% |
RESULTS FROM AFFILIATED |
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| 1,313 |
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| 595 | 120.8% |
AMORTIZATION OF GOODWILL |
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| (4,950) |
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| (4,910) | 0.8% |
OTHER INCOME/(EXPENSE) |
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| (1,438) |
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| (2,935) | -51.0% |
PRICE LEVEL RESTATEMENT (3) |
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| 539 |
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| 1,054 | -48.8% |
NON-OPERATING RESULTS |
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|
| (5,858) |
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| (16,536) | -64.6% |
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INCOME BEFORE INCOME TAXES; AMORTIZATION OF |
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NEGATIVE GOODWILL AND MINORITY INTEREST |
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| 75,270 |
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| 70,589 | 6.6% |
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INCOME TAXES |
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| (21,060) |
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| (15,654) | 34.5% |
MINORITY INTEREST |
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| (1) |
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| (1) | NA |
AMORTIZATION OF NEGATIVE GOODWILL |
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| 0 |
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| 0 | NA |
NET INCOME |
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| 54,209 |
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| 54,933 | -1.3% |
Net Margin |
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| 10.2% |
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| 10.0% |
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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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| 71.3 |
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| 72.3 |
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EARNINGS PER ADS |
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| 427.8 |
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| 433.5 | -1.3% |
(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 + Exchange rate gains & losses. |
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(4) Corporate expenses partially reclassified to the operations. |
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57
Embotelladora Andina S.A. |
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Nine Months Results for the period ended September 30, Chilean GAAP |
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(In million constant 09/30/09 Chilean Pesos, except per share) |
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| Exch. Rate : | $ 550.36 |
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| Exch. Rate : | $ 551.31 |
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| January-September 2009 | January-September 2008 |
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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) | 107.5 | 129.7 | 86.1 | 323.3 | 106.2 | 124.3 | 86.6 | 317.1 | 1.9% |
Soft Drinks | 90.3 | 121.7 | 84.2 | 296.3 | 89.6 | 116.4 | 85.3 | 291.3 | 1.7% |
Mineral Water | 5.4 | 1.7 | 0.9 | 7.9 | 5.3 | 2.0 | 0.8 | 8.2 | -3.3% |
Juices | 11.8 | 3.4 | 1.0 | 16.3 | 11.3 | 2.8 | 0.5 | 14.6 | 11.4% |
Beer | NA | 2.9 | NA | 2.9 | NA | 3.1 | NA | 3.1 | -6.0% |
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NET SALES | 344.9 | 401.2 | 223.3 | 967.0 | 339.3 | 448.8 | 225.7 | 1,009.6 | -4.2% |
COST OF SALES | (200.3) | (225.7) | (126.3) | (549.8) | (191.3) | (234.3) | (135.7) | (557.0) | -1.3% |
GROSS PROFIT | 144.6 | 175.6 | 97.0 | 417.2 | 148.0 | 214.5 | 90.0 | 452.6 | -7.8% |
Gross Margin | 41.9% | 43.8% | 43.5% | 43.1% | 43.6% | 47.8% | 39.9% | 44.8% |
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SELLING AND ADMINISTRATIVE EXPENSES | (81.8) | (112.8) | (70.7) | (265.3) | (78.9) | (143.9) | (67.2) | (289.9) | -8.5% |
CORPORATE EXPENSES (4) | 0.0 | 0.0 | 0.0 | (4.5) | 0.0 | 0.0 | 0.0 | (3.0) | 48.4% |
OPERATING INCOME | 62.9 | 62.7 | 26.3 | 147.4 | 69.2 | 70.6 | 22.9 | 159.6 | -7.7% |
Operating Margin | 18.2% | 15.6% | 11.8% | 15.2% | 20.4% | 15.7% | 10.1% | 15.8% |
|
EBITDA (1) | 82.5 | 77.3 | 36.6 | 191.9 | 89.7 | 87.5 | 33.1 | 207.3 | -7.4% |
Ebitda Margin | 23.9% | 19.3% | 16.4% | 19.8% | 26.4% | 19.5% | 14.7% | 20.5% |
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NON OPERATIONAL RESULTS |
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|
|
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FINANCIAL EXPENSE/INCOME (Net) |
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| (2.4) |
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| (18.9) | -87.3% |
RESULTS FROM AFFILIATED |
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| 2.4 |
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| 1.1 | 118.9% |
AMORTIZATION OF GOODWILL |
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| (9.0) |
|
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| (9.0) | 0.0% |
OTHER INCOME/(EXPENSE) |
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| (2.6) |
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| (5.4) | -51.4% |
PRICE LEVEL RESTATEMENT (3) |
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| 1.0 |
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| 1.9 | -49.3% |
NON-OPERATING RESULTS |
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| (10.6) |
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| (30.3) | -64.9% |
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INCOME BEFORE INCOME TAXES; AMORTIZATION OF |
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|
|
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NEGATIVE GOODWILL AND MINORITY INTEREST |
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| 136.8 |
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| 129.3 | 5.7% |
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INCOME TAXES |
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| (38.3) |
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| (28.7) | 33.4% |
MINORITY INTEREST |
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| (0.0) |
|
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| (0.0) | NA |
AMORTIZATION OF NEGATIVE GOODWILL |
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| 0.0 |
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| 0.0 | NA |
NET INCOME |
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| 98.5 |
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| 100.6 | -2.1% |
Net Margin |
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| 10.2% |
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| 10.0% |
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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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| 0.13 |
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| 0.13 |
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EARNINGS PER ADS |
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| 0.78 |
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| 0.79 | -2.1% |
(1) : 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 + Exchange rate gains & losses. |
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(4) Corporate expenses partially reclassified to the operations. |
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58
Embotelladora Andina S.A. | ||||||||
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Consolidated Balance Sheet | ||||||||
(In million of constant 09/30/09 Chilean Pesos) | ||||||||
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ASSETS | 09/30/2009 | 09/30/2008 | %Ch |
| LIABILITIES & SHAREHOLDERS' EQUITY | 09/30/2009 | 09/30/2008 | %Ch |
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|
Cash + Time deposits + market. Securit. | 121,152 | 106,248 | 14.0% |
| Short term bank liabilities | 1,154 | 10,577 | -89.1% |
Account receivables (net) | 56,942 | 55,631 | 2.4% |
| Current portion of long term bank liabilities | 257 | 122 | 111.2% |
Inventories | 30,439 | 27,466 | 10.8% |
| Current portion of bonds payable | 6,178 | 1,640 | 276.8% |
Other current assets | 18,392 | 19,997 | -8.0% |
| Trade accounts payable and notes payable | 83,123 | 64,741 | 28.4% |
Total Current Assets | 226,926 | 209,341 | 8.4% |
| Other liabilities | 24,474 | 27,816 | -12.0% |
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|
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| Total Current Liabilities | 115,186 | 104,895 | 9.8% |
Property, plant and equipment | 687,384 | 647,271 | 6.2% |
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|
|
Depreciation | (477,072) | (448,300) | 6.4% |
| Long term bank liabilities | 277 | 607 | -54.3% |
Total Property, Plant, and Equipment | 210,312 | 198,971 | 5.7% |
| Bonds payable | 72,553 | 76,880 | -5.6% |
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|
|
| Other long term liabilities | 47,163 | 45,597 | 3.4% |
Investment in related companies | 30,832 | 26,996 | 14.2% |
| Total Long Term Liabilities | 119,993 | 123,084 | -2.5% |
Investment in other companies | 139 | 125 | 11.1% |
|
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|
|
|
Goodwill | 51,600 | 57,726 | -10.6% |
| Minority interest | 11 | 9 | 24.9% |
Other long term assets | 33,522 | 25,560 | 31.2% |
|
|
|
|
|
Total Other Assets | 116,093 | 110,406 | 5.2% |
| Stockholders' Equity | 318,139 | 290,730 | 9.4% |
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|
|
|
|
|
|
|
|
TOTAL ASSETS | 553,330 | 518,718 | 6.7% |
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | 553,330 | 518,718 | 6.7% |
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Financial Highlights |
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(In million of constant 09/30/09 Chilean Pesos) |
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| Year to Date |
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| |
ADDITIONS TO FIXED ASSETS | 09/30/2009 | 09/30/2008 |
|
| DEBT RATIOS | 09/30/2009 | 09/30/2008 |
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|
Chile | 16,680 | 18,466 |
|
| Financial Debt / Total Capitalization | 0.20 | 0.24 |
|
Brazil | 13,827 | 23,514 |
|
| Financial Debt / EBITDA L12M | 0.49 | 0.55 |
|
Argentina | 5,647 | 3,981 |
|
| EBITDA L12M / Interest Expense (net) L12M | 19.62 | 19.47 |
|
| 36,154 | 45,961 |
|
| L12M: Last twelve months |
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* As of September 30, 2009, the Company registered a positive net cash position of US$ 77.4 million. Total debt amounted to US$ 146.1 million. |
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Total Cash amounted to US$ 223.5 million. |
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59
Embotelladora Andina S.A. |
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|
Nine Months Results for the period ended September 30, 2009 Local GAAP |
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(In nominal local currency of each period) |
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| January - September 2009 | January - September 2008 | ||||
| Chile Million Ch$ | Brazil Million R$ | Argentina Million AR$ | Chile Million Ch$ | Brazil Million R$ | Argentina Million AR$ |
TOTAL BEVERAGES VOLUME (Million UC) | 107.5 | 129.7 | 86.1 | 106.2 | 124.3 | 86.6 |
Soft Drinks | 90.3 | 121.7 | 84.2 | 89.6 | 116.4 | 85.3 |
Mineral Water | 5.4 | 1.7 | 0.9 | 5.3 | 2.0 | 0.8 |
Juices | 11.8 | 3.4 | 1.0 | 11.3 | 2.8 | 0.5 |
Beer | NA | 2.9 | 0.0 | NA | 3.1 | 0.0 |
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|
NET SALES SOFT DRINKS | 157,793 | 746.9 | 755.1 | 149,732 | 681.7 | 641.3 |
NET SALES OTHER | 33,331 | 85.0 | 21.6 | 30,083 | 75.7 | 12.6 |
NET SALES PACKAGING |
|
| 46.5 |
|
| 47.3 |
NET SALES | 191,124 | 831.9 | 823.2 | 179,816 | 757.5 | 701.2 |
COST OF SALES | (111,074) | (473.1) | (456.6) | (101,439) | (402.1) | (412.0) |
GROSS PROFIT | 80,050 | 358.8 | 366.6 | 78,376 | 355.3 | 289.2 |
Gross Margin | 41.9% | 43.1% | 44.5% | 43.6% | 46.9% | 41.2% |
SELLING AND ADMINISTRATIVE EXPENSES | (45,148) | (236.6) | (259.1) | (41,393) | (243.6) | (207.1) |
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OPERATING INCOME | 34,902 | 122.2 | 107.6 | 36,983 | 111.7 | 82.1 |
Operating Margin | 18.3% | 14.7% | 13.1% | 20.6% | 14.7% | 11.7% |
EBITDA1 | 45,731 | 159.9 | 135.8 | 48,316 | 147.8 | 103.2 |
Ebitda Margin | 23.9% | 19.2% | 16.5% | 26.9% | 19.5% | 14.7% |
1EBITDA: Operating Income + Depreciation |
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Chile results do not consider corporate expenses |
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Embotelladora Andina S.A. |
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Third Quarter Results for the period ended September 30, 2009 Local GAAP |
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(In nominal local currency of each period) |
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| Third Quarter 2009 | Third Quarter 2008 | ||||
| Chile Million Ch$ | Brazil Million R$ | Argentina Million AR$ | Chile Million Ch$ | Brazil Million R$ | Argentina Million AR$ |
TOTAL BEVERAGES VOLUME (Million UC) | 34.8 | 41.8 | 27.0 | 34.4 | 40.5 | 28.3 |
Soft Drinks | 29.1 | 39.2 | 26.3 | 29.0 | 38.1 | 27.8 |
Mineral Water | 1.4 | 0.5 | 0.4 | 1.4 | 0.5 | 0.2 |
Juices | 4.2 | 1.3 | 0.3 | 4.0 | 1.0 | 0.3 |
Beer | NA | 0.8 | NA | NA | 0.9 | NA |
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NET SALES SOFT DRINKS | 50,888 | 245.2 | 243.4 | 48,858 | 222.2 | 219.9 |
NET SALES OTHER | 11,263 | 28.4 | 7.7 | 10,062 | 25.2 | 5.0 |
NET SALES PACKAGING |
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NET SALES | 62,151 | 273.6 | 264.4 | 58,921 | 247.4 | 243.0 |
COST OF SALES | (37,048) | (156.6) | (144.1) | (33,311) | (140.8) | (143.7) |
GROSS PROFIT | 25,103 | 117.0 | 120.3 | 25,610 | 106.6 | 99.3 |
Gross Margin | 40.4% | 42.8% | 45.5% | 43.5% | 43.1% | 40.9% |
SELLING AND ADMINISTRATIVE EXPENSES | (15,564) | (77.4) | (85.6) | (14,061) | (70.8) | (74.8) |
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OPERATING INCOME | 9,538 | 39.6 | 34.7 | 11,549 | 35.8 | 24.5 |
Operating Margin | 15.3% | 14.5% | 13.1% | 19.6% | 14.5% | 10.1% |
EBITDA1 | 13,063 | 53.7 | 44.2 | 15,258 | 48.1 | 31.7 |
Ebitda Margin | 21.0% | 19.6% | 16.7% | 25.9% | 19.4% | 13.1% |
1EBITDA: Operating Income + Depreciation |
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Chile results do not consider corporate expenses |
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60
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