Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15b-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For August 11, 2005
Andina Bottling Company, Inc.
-----------------------------------------------
(Translation of registrant's name into English)
Avenida Andres Bello 2687
Piso 20, Las Condes
Santiago
Chile
----------------------------------------
(Address of principal executive offices)
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the information to
the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
--- ---
MATERIAL EVENT
www.koandina.com
Embotelladora Andina S.A.
For Immediate Distribution
Contacts in Santiago, Chile Contact in New York, U.S.A.
Embotelladora Andina S.A. i-advize Corporate Communications
Osvaldo Garay, Chief Financial Officer Peter Majeski/Melanie Carpenter
Andrea Valenzuela, Investor Relations 212-406-3690
(56-2) 338-0520 E-Mail: andina@i-advize.com
E-Mail: inv.rel@koandina.com
Embotelladora Andina S.A. Announces Consolidated Results
For the Second Quarter and First Half 2005
Highlights
o For the second quarter 2005, Operating Income reached US$22.3 million,
a 34.1% increase compared to the same period of last year. Operating
margin was 12%.
o Consolidated Sales Volume grew 9.9% during the quarter, reaching 84.1
million unit cases.
o This quarter, EBITDA reached US$35.9 million, a 10.7% improvement
compared to the second quarter 2004. EBITDA Margin was 19.3%.
o Consolidated Operating Income for the first six months of 2005 was
US$57.6 million, an important increase of 22.7% when compared to the
first six months of 2004. Operating Margin was 14.3%.
o Consolidated Sales Volume for the first six months of 2005 totaled
185.4 million unit cases, a 9.5% improvement year-over-year.
o Consolidated EBITDA was US$85 million for the first half of 2005,
which represented 8.4% growth. EBITDA Margin was 21.1%.
o Net Income for the first half of 2005 reached US$41.5 million, 31.5%
higher than the first half of 2004.
(Santiago-Chile, August 3, 2005) -- Embotelladora Andina S.A. ("the Company"
NYSE: AKO/A; AKO/B) announced today its consolidated financial results for the
second quarter and first half of 2005.
1
www.koandina.com
Embotelladora Andina S.A.
Comments from the Chief Executive Officer, Mr. Jaime Garcia R.
"At the end of the first half of 2005, we have seen solid growth across the
three franchises. We should be encouraged for the remainder of the year, being
conscious to remain on the right direction, while continuing to generate
operating efficiencies."
CONSOLIDATED SUMMARY
First Half 2005 vs. First Half 2004
- -----------------------------------
Improvements were reported across all operating lines during the first six
months of 2005 when compared to the same period of 2004. In the region, demand
for mass consumption products recovered. On the other hand, currencies
appreciated, which partially offset price increases of some raw materials and
basic products. The Chilean Peso appreciated on average 4.7%, the Brazilian Real
12.5% while the Argentine Peso remained practically unchanged.
For this period, Consolidated Sales Volume reached 185.4 million unit cases, a
9.5% improvement. Most notably, soft drinks Sales Volume increased by 10.4%.
Within the three franchises, the increases in soft drinks Sales Volume were as
follows: Chile 5.3%, Brazil 15.5% and Argentina 9.1%. It's worth mentioning that
Sales Volume growth experienced in the Chilean Mineral Water segment was 10.3%
year-over-year.
Net Sales amounted to US$403.2 million, a 12.2% improvement compared to 2004.
This was a combination of higher volume and price increases in the three
franchises.
Despite cost pressures (particularly resin and sugar), through negotiations and
efficiencies generated together with the Chilean Peso and the Brazilian Real
revaluations, led to a low increase on the Cost of Sales per unit case by 1%
when compared to the first half of 2004.
On the other hand, SG&A increased 11.8% due to higher volumes, increased freight
costs (due to higher freight fees explained by increasing oil prices) and higher
marketing expenses.
As a result of the above, Operating Income for the first half of 2005 was
US$57.6 million, a 22.7% improvement over the US$47 million reported as of June
30, 2004. Operating Margin was 14.3%, an increase of 120 basis points.
Consolidated EBITDA amounted to US$85 million, an 8.4% increase over the same
period of last year. EBITDA Margin was 21.1% of Net Sales.
Second Quarter 2005 vs. Second Quarter 2004
- -------------------------------------------
During the second quarter of 2005, consolidated Sales Volume reached 84.1
million unit cases, representing a 9.9% increase with respect the second quarter
of last year.
Net Sales amounted to US$186.3 million, a 15.7% increase over the Net Sales
reached during the second quarter of 2004. This was a result of higher volumes
and price increases. With respect to Costs and Expenses, explanations for the
second quarter 2005 are similar to those mentioned for the first half of 2005.
2
www.koandina.com
Embotelladora Andina S.A.
Operating Income reached US$22.3 million, a 34.1% increase when compared to the
US$16.7 million reached in the comparable quarter. Operating Margin was 12% of
Net Sales, a 165 basis point increase.
Consolidated EBITDA reached US$35.9 million, an increase of 10.7%. This
represented 19.3% of Net Sales.
(Graphic Omitted)
EBITDA 1H05 (mmus$85)
Argentina 19%
Chile 55%
Brasil 26%
SUMMARY BY COUNTRY
(Country Flag Omitted) Chile
First Half 2005 vs. First Half 2004
- -----------------------------------
Sales Volume reached 63.4 million unit cases, a 5.4% increase compared to the
figure obtained in the first half of 2004. This volume increase is mainly
attributed to the immediate consumption format, which grew 9.1%. In addition the
Light segment saw a 12.7% increase compared to the first half of 2004, as well
as the aforementioned, Mineral Water, which increased 10.3%.
Net Sales amounted to US$174.1 million, an increase of 4.9% over last year,
mainly explained by the volume increase.
Operating Income was US$37.7 million, a 7.8% improvement compared to the first
six months of 2004. Operating Margin was 21.6%, representing a 58 basis point
increase.
EBITDA reached US$48.9 million, a 2% increase, with an Operating Margin of
28.1%.
3
www.koandina.com
Embotelladora Andina S.A.
Second Quarter 2005 vs. Second Quarter 2004
- -------------------------------------------
During the second quarter of 2005, Sales Volumes increased 2.5% to 28 million
unit cases. This moderate growth was due to adverse weather conditions in June,
and a price increase implemented at the end of the period.
Net Sales amounted to US$77.6 million, which is a 2.9% improvement compared to
the second quarter of 2004. Cost of Sales per unit case slightly decreased
(-0.9%), despite higher resin, sugar and aluminum prices, which were offset by
the revaluation of the Chilean peso.
Operating Income amounted to US$15.1 million, increasing 6.9%. Operating Margin
was 19.4%, an improvement of 72 basis point.
EBITDA totaled US$20.7 million, the same level reached during the second quarter
of 2004. EBITDA Margin was 26.6% of Net Sales.
(Country Flag Omitted)Brazil
First Half 2005 vs. First Half 2004
- -----------------------------------
Sales Volume reached 73.7 million unit cases, a 14.1% increase compared to the
first half of 2004, highlighted by a 15.5% increase in Sales Volume in the Soft
Drink segment.
Net Sales amounted to US$143.6 million, a 23.6% improvement over the same period
of last year. Net Sales per unit case grew 8.3%, affected by price adjustments
and a more favorable sales mix (due to an increase in the immediate consumption
segment).
Average Cost of Sales per unit case increased 5.8% when compared to the first
six months of 2004, mainly attributable to resin and sugar price increases.
Anticipated raw materials purchases and the appreciation of the Brazilian Real,
contributed to slowdown of the franchise's dollar denominated costs. On the
other hand, higher freight costs (due to volume improvements that also generated
more inter-plant transfers) had a negative effect on SG&A's.
Operating Income totaled US$14.6 million, a 48.3% improvement when compared to
same period of 2004. EBITDA totaled US$23.3 million, a 17.1% increase. Operating
Margin was 10.2% and EBITDA Margin 16.2%.
Second Quarter 2005 vs. Second Quarter 2004
- -------------------------------------------
During the second quarter of 2005, Sales Volume reached 35.8 million unit cases,
a 17.4% increase versus the same period of 2004. Sales Volume continued the
upward trend seen in the first quarter due to better economic conditions,
favorable weather and effective market actions.
Net Sales totaled US$71.9 million, an improvement of 34.9%. This was a result of
higher volumes and price adjustments. The average appreciation of the Brazilian
Real for the second quarter was a 15.7%, which had a
4
www.koandina.com
Embotelladora Andina S.A.
positive effect when translating figures to Chilean GAAP (partially offset by
the 9% appreciation of the end of period Chilean Peso currency).
Operating Income amounted to US$7 million, a 96.6% increase over the same period
of last year, with an Operating Margin of 9.7%, a 304 basis points improvement.
EBITDA totaled US$11.4 million, a 31% increase compared to the US$8.7 million
reached in the second quarter of 2004.
(Country Flag Omitted) Argentina
First Half 2005 vs. First Half 2004
- -----------------------------------
Sales Volume for the first half of 2005 reached 48.2 million unit cases, an 8.2%
improvement with respect to the same period of last year. This volume expansion
was driven by returnable formats, which as of June 30, 2005 exceeded 50% of the
sales mix (43% during the same period of 2004).
Net Sales reached US$89.7 million, a 10.9% increase when compared to 2004, due
to higher volume and price increases.
Operating Income totaled US$9.1 million, an increase of 47.6% over last year,
while Operating Margin was 10.1%, a 250 basis points improvement.
EBITDA was US$16.4 million, and EBITDA Margin totaled 18.3% of Net Sales, a 43
basis point improvement compared to the same period of 2004.
Second Quarter 2005 vs. Second Quarter 2004
- -------------------------------------------
Sales Volume for the second quarter 2005 totaled 20.4 million unit cases, which
reflects an 8.6% increase with respect to the same period last year. Soft Drinks
had a 9% improvement. Returnable formats drove growth for the period, as was the
case in the first half of 2005.
Net Sales reached US$39.2 million, a 13.2% improvement compared to the second
quarter of 2004. This was a result of volume and price increases.
Operating Income reached US$2.2 million, more the twice the result achieved in
the second quarter of 2004. Operating Margin was 5.5%, a 250 basis points
improvement.
EBITDA amounted to US$5.8 million, which represented 14.7% of Net Sales.
5
www.koandina.com
Embotelladora Andina S.A.
NON-OPERATING RESULTS
First Half 2005 vs. First Half 2004
- -----------------------------------
Non-Operating Results totaled a loss of US$9.2 million, which compares
positively to the loss of US$11 million recorded for the same period of June
2004.
The lower loss recorded on the Non Operating Result line is explained by:
- Financial Expenses/Income (Net): Had a positive variation as a
consequence of an extraordinary income due to bond sales together with
better results from Cross Currency Swap Agreements. This was partially
offset by the lower fluctuation of the Chilean exchange rate that
affected the positive U.S. Dollar net asset position of Andina (this
effect is in the Price Level Restatement line).
- Other Income/Expense: Reflects a negative variation due to indemnities
benefits and a provision to adjust to the market value a Company's
Real Estate available for sale. This was partially offset by the
positive effect translation of foreign subsidiaries' financial
statements, in accordance with Technical Bulletin No. 64 issued by
the Chilean Institute of Accountants.(1)
Finally, Net Income amounted to US$41.5 million, an increase of 31.5% versus the
Net Income registered during the first half of the previous year.
ANALYSIS OF THE BALANCE SHEET
As of June 30, 2005, the Company's financial assets amounted to US$ 360.1
million. These represent cash, investments in mutual funds, deposits, structured
notes, corporate bonds and sovereign bonds. 85.7% of the total financial assets
are U.S. dollar-denominated. Nevertheless, through "Cross-Currency Swaps" done
in July 2003, August 2003 and April 2004, part of the portfolio has been
converted to Chilean pesos (UF - Chilean Inflation Indexed Currency), thereby
decreasing to 32.5% the amount denominated in US dollars.
On the other hand, the Company's total debt was US$ 361.0 million, with an
average annual rate of 6.68% on U.S. dollar debt, and an average real rate of
5.34% on Chilean Peso-denominated debt. The U.S. Dollar-denominated debt
represents 33.4% of total debt.
Thus, even though the Company paid an extraordinary dividend totaling US$96.1
million in May 2005, the Company holds a positive net debt position of US$0.9
million.
- ---------------
(1) Investments in foreign companies are valued in accordance with
Technical Bulletin No. 64 issued by the Chilean Institute of
Accountants. The United States ("US") dollar is the currency used to
control investments and to translate financial statements of foreign
companies. Assets and liabilities from these investments are
translated into Chilean pesos at the end of period exchange rate,
except for non-monetary assets and liabilities and shareholders'
equity which are first expressed at their equivalent value in
historical US dollars. Income and expense items are first translated
into US dollars at the average exchange rate during the month.
6
www.koandina.com
Embotelladora Andina S.A.
This release may contain forward-looking statements reflecting Embotelladora
Andina SA's good faith expectations and are based upon currently available data;
however, actual results are subject to numerous uncertainties, many of which are
beyond the control of the Company and any one or more of which could materially
impact actual performance. Among the factors that can cause performance to
differ materially are: political and economic conditions on consumer spending,
pricing pressure resulting from competitive discounting by other bottlers,
climatic conditions in the Southern Cone, and other risk factors applicable from
time to time and listed in Andina's periodic reports filed with relevant
regulatory institutions.
7
Embotelladora Andina S.A.
Principal Indicators
INDICATORS Unit Jun-05 Dec-04 Jun-04 Variance
---------- ---- ------ ------ ------ --------
LIQUIDITY
Current Ratio Times 1.07 1.24 1.23 (0.16)
Acid Tests Times 0.88 1.05 1.02 (0.14)
Working Capital MCh$ 32,533 33,749 30,111 2,421
ACTIVITY
Investments MCh$ 12,515 25,493 12,089 425
Inventory turnover Times 6.80 12.40 6.18 0.62
Days of inventory on hand Days 52.97 29.02 58.28 (5.31)
INDEBTEDNESS
Debt to equity ratio % 116.16% 99.32% 100.03% 16.13%
Short-term liabilities to total
liabilities % 37.89% 36.84% 34.64% 3.25%
Long-term liabilities to total
liabilities % 62.11% 63.16% 65.36% (3.25)%
Interest charges coverage ratio Times 12.02 10.84 10.05 1.97
PROFITABILITY
Return over equity % 8.71% 13.36% 5.95% 2.76%
Return over total assets % 4.20% 6.81% 3.03% 1.17%
Return over operating assets % 8.90% 14.36% 6.02% 2.88%
Operating income MCh$ 33,378 63,515 27,204 6,174
Operating margin % 14.30% 15.20% 13.08% 1.22%
EBITDA (1) MCh$ 49,906 88,986 45,427 4,479
EBITDA margin % 21% 21% 21.84% (0.46)%
Dividends payout ratio - Serie
A shares % 7.37% 4.81% 4.55% 2.82%
Dividends payout ratio - Serie
B shares % 7.38% 5.23% 5.45% 1.93%
EBITDA (1) Earnings before income taxes, interests, depreciation,
amortization and extraordinary items.
Embotelladora Andina S.A.
Second Quarter Results for the period ended June 30, Chilean GAAP
(In millions of constant 06/30/05 Chilean Pesos, except per share)
6/30/2005 6/30/2004
------------------------------------------- -----------------------------------------------
Chilean Brazilian Argentine Total Chilean Brazilian Argentine Total
Operations Operations Operations (2) Operations Operations Operations (2) % Ch.
---------- ---------- ---------- ----- ---------- ---------- ---------- ----- -----
VOLUME TOTAL BEVERAGES
(million uc) 28.0 35.8 20.4 84.1 27.3 30.5 18.8 76.5 9.9%
Soft drink 23.9 34.4 20.1 78.4 23.3 29.0 18.4 70.7 10.9%
Mineral water 1.5 0.5 0.3 2.3 1.4 0.5 0.3 2.2 1.2%
Juices 2.6 0.3 0.0 2.9 2.6 0.2 0.0 2.9 1.3%
Beer NA 0.6 NA 0.6 NA 0.7 NA 0.7 (21.4)%
NET SALES 44,922 41,644 22,685 107,840 43,644 30,859 20,039 93,231 15.7%
COST OF SALES (27,311) (25,519) (15,857) (67,276) (26,901) (19,720) (14,345) (59,655) 12.8%
GROSS PROFIT 17,611 16,125 6,828 40,563 16,742 11,139 5,695 33,576 20.8%
Gross margin 39.2% 38.7% 30.1% 37.6% 38.4% 36.1% 28.4% 36.0%
SELLING AND ADMINISTRATIVE
EXPENSES (8,878) (12,087) (5,582) (26,547) (8,572) (9,085) (5,089) (22,747) 16.7%
CORPORATE EXPENSES 0 0 0 (1,082) 0 0 0 (1,187) (8.8)%
OPERATING INCOME 8,733 4,038 1,246 12,935 8,170 2,054 605 9,642 34.1%
Operating margin 19.4% 9.7% 5.5% 12.0% 18.7% 6.7% 3.0% 10.3%
EBITDA (1) 11,961 6,591 3,331 20,802 11,966 5,032 2,979 18,791 10.7%
Ebitda margin 26.6% 15.8% 14.7% 19.3% 27.4% 16.3% 14.9% 20.2%
NON OPERATIONAL RESULTS
FINANCIAL EXPENSE/INCOME (NET) 3,338 (4,918) 167.9%
RESULTS FROM AFFILIATED 169 (233) 172.6%
AMORTIZATION OF GOODWILL (1,756) (2,263) (22.4)%
OTHER INCOME/(EXPENSE) (368) (2,949) (87.5)%
PRICE LEVEL RESTATEMENT (3) (2,420) 6,281 (138.5)%
NON-OPERATING RESULTS (1,037) (4,081) (74.6)%
INCOME BEFORE INCOME TAXES;
AMORTIZATION OF NEGATIVE
GOODWILL AND MINORITY INTEREST 11,898 5,561 113.9%
INCOME TAXES (2,059) (708) 190.8%
MINORITY INTEREST - - -
AMORTIZATION OF NEGATIVE GOODWILl 0 0 NA
NET INCOME 9,838 4,853 102.7%
Net margin 9.1% 5.2%
WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 760.3
EARNINGS PER SHARE 12.9 6.4
EARNINGS PER ADS 77.6 38.3 102.7%
(1) EBITDA: Operating Income + Depreciation
(2) Total may be different from the addition of the three countries because of
intercountry eliminations
(3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income
Statement Accounts.
Embotelladora Andina S.A.
Second Quarter Results for the period ended June 30, Chilean GAAP
(In millions US$, except per share)
Exch. Rate : 579
6/30/2005 6/30/2004
------------------------------------------- ------------------------------------------
Chilean Brazilian Argentine Total Chilean Brazilian Argentine Total
Operations Operations Operations (2) Operations Operations Operations (2) % Ch.
---------- ---------- ---------- ------ ---------- ---------- ---------- ------ --------
VOLUME TOTAL BEVERAGES
(Million UC) 28.0 35.8 20.4 84.1 27.3 30.5 18.8 76.5 9.9%
Soft drink 23.9 34.4 20.1 78.4 23.3 29.0 18.4 70.7 10.9%
Mineral water 1.5 0.5 0.3 2.3 1.4 0.5 0.3 2.2 1.2%
Juices 2.6 0.3 0.0 2.9 2.6 0.2 0.0 2.9 1.3%
Beer NA 0.6 NA 0.6 NA 0.7 NA 0.7 (21.4)%
NET SALES 77.6 71.9 39.2 186.3 75.4 53.3 34.6 161.0 15.7%
COST OF SALES (47.2) (44.1) (27.4) (116.2) (46.5) (34.1) (24.8) (103.0) 12.8%
GROSS PROFIT 30.4 27.8 11.8 70.1 28.9 19.2 9.8 58.0 20.8%
Gross margin 39.2% 38.7% 30.1% 37.6% 38.4% 36.1% 28.4% 36.0%
SELLING AND ADMINISTRATIVE
EXPENSES (15.3) (20.9) (9.6) (45.8) (14.8) (15.7) (8.8) (39.3) 16.7%
CORPORATE EXPENSES 0.0 0.0 0.0 (1.9) 0.0 0.0 0.0 (2.0) (8.8)%
OPERATING INCOME 15.1 7.0 2.2 22.3 14.1 3.5 1.0 16.7 34.1%
Operating margin 19.4% 9.7% 5.5% 12.0% 18.7% 6.7% 3.0% 10.3%
EBITDA (1) 20.7 11.4 5.8 35.9 20.7 8.7 5.1 32.5 10.7%
EBITDA margin 26.6% 15.8% 14.7% 19.3% 27.4% 16.3% 14.9% 20.2%
NON OPERATIONAL RESULTS
FINANCIAL EXPENSE/INCOME (NET) 5.8 (8.5) 167.9%
RESULTS FROM AFFILIATED 0.3 (0.4) 172.6%
AMORTIZATION OF GOODWIll (3.0) (3.9) (22.4)%
OTHER INCOME/(EXPENSE) (0.6) (5.1) (87.5)%
PRICE LEVEL RESTATEMENT (3) (4.2) 10.8 (138.5)%
NON-OPERATING RESULTS (1.8) (7.0) (74.6)%
INCOME BEFORE INCOME TAXES;
AMORTIZATION OF NEGATIVE
GOODWILL AND MINORITY INTEREST 20.5 9.6 113.9%
INCOME TAXES (3.6) (1.2) 190.8%
MINORITY INTEREST - - -
AMORTIZATION OF NEGATIVE GOODWILL 0.0 0.0 NA
NET INCOME 17.0 8.4 102.7%
Net Margin 9.1% 5.2%
WEIGHTED AVERAGE SHARES
OUTSTANDING 760.3 760.3
EARNINGS PER SHARE 0.02 0.01
EARNINGS PER ADS 0.13 0.07 102.7%
(1) EBITDA: Operating Income + Depreciation
(2) Total may be different from the addition of the three countries because of
intercountry eliminations
(3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income
Statement Accounts.
Embotelladora Andina S.A.
Six Months Results for the period ended June 30, Chilean GAAP
(In millions of constant 06/30/05 Chilean Pesos, except per share)
6/30/2005 6/30/2004
------------------------------------------- ------------------------------------------
Chilean Brazilian Argentine Total Chilean Brazilian Argentine Total
Operations Operations Operations (2) Operations Operations Operations (2) % Ch.
---------- ---------- ---------- ------ ---------- ---------- ---------- ------ --------
VOLUME TOTAL BEVERAGES
(Million UC) 63.4 73.7 48.2 185.4 60.2 64.6 44.6 169.3 9.5%
Soft drink 53.6 71.0 47.6 172.3 50.9 61.4 43.7 156.0 10.4%
Mineral water 4.8 1.0 0.5 6.4 4.4 1.1 0.9 6.3 1.0%
Juices 5.0 0.6 0.1 5.6 4.9 0.5 0.0 5.4 4.1%
Beer NA 1.1 NA 1.1 NA 1.6 NA 1.6 (30.7)%
NET SALES 100,791 83,138 51,921 233,444 96,103 67,247 46,818 207,971 12.2%
COST OF SALES (59,856) (51,265) (35,052) (143,768) (57,592) (42,467) (32,170) (130,032) 10.6%
GROSS PROFIT 40,935 31,873 16,868 89,676 38,511 24,780 14,648 77,939 15.1%
Gross margin 40.6% 38.3% 32.5% 38.4% 40.1% 8*% 31.3% 37.5%
SELLING AND ADMINISTRATIVE
EXPENSES (19,127) (23,432) (11,618) (54,177) (18,273) (19,087) (11,090) (48,450) 11.8%
CORPORATE EXPENSES 0 0 0 (2,121) 0 0 0 (2,285) (7.2)%
OPERATING INCOME 21,808 8,440 5,250 33,378 20,238 5,693 3,558 27,204 22.7%
Operating margin 21.6% 10.2% 10.1% 14.3% 21.1% 8.5% 7.6% 13.1%
EBITDA (1) 28,326 13,496 9,501 49,202 27,781 11,523 8,366 45,385 8.4%
EBITDA margin 28.1% 16.2% 18.3% 21.1% 28.9% 17.1% 17.9% 21.8%
NON OPERATIONAL RESULTS
FINANCIAL EXPENSE/INCOME (NET) (3,136) (9,816) (68.1)%
RESULTS FROM AFFILIATED 781 (24) 3375.0%
AMORTIZATION OF GOODWILL (3,499) (4,085) (14.3)%
OTHER INCOME/(EXPENSE) (7,140) (3,449 107.0%
PRICE LEVEL RESTATEMENT (3) 7,653 11,025 (30.6)%
NON-OPERATING RESULTS (5,339) (6,348) (15.9)%
INCOME BEFORE INCOME TAXES;
AMORTIZATION OF NEGATIVE
GOODWILL AND MINORITY INTEREST 28,038 20,855 34.4%
INCOME TAXES (4,036) (2,603) 55.1%
MINORITY INTEREST 0 (1) (100.0)%
AMORTIZATION OF NEGATIVE GOODWILL 0 0 NA
NET INCOME 24,002 18,251 31.5%
Net margin 10.3% 8.8%
WEIGHTED AVERAGE SHARES
OUTSTANDING 760.3 760.3
EARNINGS PER SHARE 31.6 24.0
EARNINGS PER ADS 189.4 144.0 31.5%
(1) EBITDA: Operating Income + Depreciation
(2) Total may be different from the addition of the three countries because of
intercountry eliminations
(3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income
Statement Accounts.
Embotelladora Andina A.A.
Six months results for the period ended June 30, Chilean GAAP
(In millions us$, except per share)
Each Rate: $579.00
6/30/2005 6/30/2004
------------------------------------------- ------------------------------------------
Chilean Brazilian Argentine Total Chilean Brazilian Argentine Total
Operations Operations Operations (2) Operations Operations Operations (2) % Ch.
---------- ---------- ---------- ------ ---------- ---------- ---------- ------ --------
VOLUME TOTAL BEVERAGES
(Million UC) 63.4 73.7 48.2 185.4 60.2 64.6 44.6 169.3 9.5%
Soft drink 53.6 71.0 47.6 172.3 50.9 61.4 43.7 156.0 10.4%
Mineral water 4.8 1.0 0.5 6.4 4.4 1.1 0.9 6.3 1.0%
Juices 5.0 0.6 0.1 5.6 4.9 0.5 0.0 5.4 4.1%
Beer NA 1.1 NA 1.1 NA 1.6 NA 1.6 (30.7)%
NET SALES 174.1 143.6 89.7 403.2 166.0 116.1 80.9 359.2 12.2%
COST OF SALES (103.4) (88.5) (60.5) (248.3) (99.5) (73.3) (55.6) (224.6) 10.6%
GROSS PROFIT 70.7 55.0 29.1 154.9 66.5 42.8 25.3 134.6 15.1%
Gross margin 40.6% 38.3% 32.5% 38.4% 40.1% 36.8% 31.3% 37.5%
SELLING AND ADMINISTRATIVE
EXPENSES (33.0) (40.5) (20.1) (93.6) (31.6) (33.0) (19.2) (83.7) 11.8%
CORPORATE EXPENSES 0.0 0.0 0.0 (3.7) 0.0 0.0 0.0 (3.9) (7.2)%
OPERATING INCOME 37.7 14.6 9.1 57.6 35.0 9.8 6.1 47.0 22.7%
Operating margin 21.6% 10.2% 10.1% 14.3% 21.1% 8.5% 7.6% 13.1%
EBITDA (1) 48.9 23.3 16.4 85.0 48.0 19.9 14.4 78.4 8.4%
EBITDA margin 28.1% 16.2% 18.3% 21.1% 28.9% 17.1% 17.9% 21.8%
NON OPERATIONAL RESULTS
FINANCIAL EXPENSE/INCOME (NET) (5.4) (17.0) (68.1)%
RESULTS FROM AFFILIATED 1.3 (0.0) 3375.0%
AMORTIZATION OF GOODWILL (6.0) (7.1) (14.3)%
OTHER INCOME/(EXPENSE) (12.3) (6.0) 107.0%
PRICE LEVEL RESTATEMENT (3) 13.2 19.0 (30.6)%
NON-OPERATING RESULTS (9.2) (11.0) (15.9)%
INCOME BEFORE INCOME TAXES;
AMORTIZATION OF NEGATIVE GOODWILL
AND MINORITY INTEREST 48.4 36.0 34.4%
INCOME TAXES (7.0) (4.5) 55.1%
MINORITY INTEREST - - -
AMORTIZATION OF NEGATIVE GOODWILL 0.0 0.0 NA
NET INCOME 41.5 31.5 31.5%
Net margin 10.3% 8.8%
WEIGHTED AVERAGE SHARES OUTSTANDING 760.3 760.3
EARNINGS PER SHARE 0.05 0.04
EARNINGS PER ADS 0.33 0.25 31.5%
(1) : Operating Income + Depreciation
(2) Total may be different from the addition of the three countries because of
intercountry eliminations
(3) Includes: Monetary Correction + Conversion Effect to Balance Sheet + Income
Statement Accounts.
Embotelladora Andina S.A.
Consolidated Balance Sheet
(In million of constant 06/30/05 Chilean Pesos)
ASSETS 6/30/2005 6/30/2004 %Ch LIABILITIES & SHAREHOLDERS' EQUITY 6/30/2005 6/30/2004 %Ch
- ------------------------------ --------- --------- ----- ---------------------------------- --------- --------- -------
Cash + Time deposits + market.
Securit. 32,884 52,184 (37.0)% Short term bank liabilities 37,387 20,338 83.8%
Current portion of long term bank
Account receivables (net) 41,780 34,691 20.4% liabilities 3,396 3,821 (11.1)%
Inventories 21,383 21,716 (1.5)% Current portion of bonds payable 13,395 13,490 (0.7)%
Trade accounts payable and notes
Other current assets 24,974 18,767 33.1% payable 39,885 45,253 (11.9)%
Total Current Assets 121,020 127,358 (5.0)% Other liabilities 19,171 20,898 (8.3)%
Total Current Liabilities 113,234 103,800 9.1%
Property, plant and equipment 522,560 551,710 (5.3)%
Depreciation (372,870) (376,843) (1.1)% Long term bank liabilities 47,123 53,688 (12.2)%
Total Property, Plant, and
Equipment 149,690 174,867 (14.4)% Bonds payable 107,722 121,868 (11.6)%
Other long term liabilities 30,769 20,326 51.4%
Investment in related companies 20,359 20,683 (1.6)% Total Long Term Liabilities 185,614 195,882 (5.2)%
Investment in other companies 55 671 (91.8)%
Goodwill 83,509 92,566 (9.8)% Minority interest 0 51 (99.9)%
Other long term assets 181,488 183,241 (1.0)%
Total Other Assets 285,411 297,160 (4.0)% Stockholders' Equity 257,272 299,652 (14.1)%
TOTAL LIABILITIES & SHAREHOLDERS'
TOTAL ASSETS 556,121 599,385 (7.2)% EQUITY 556,121 599,385 (7.2)%
Financial Highlights
(In million of constant 06/30/05 Chilean Pesos)
ADDITIONS TO FIXED ASSETS 6/30/2005 6/30/2004 DEBT RATIOS 6/30/2005 6/30/2004
- ------------------------- --------- --------- --------------------------------------- --------- ---------
Chile 7,087 7,635 Financial Debt / Total Capitalization 0.45 0.42
Brazil 2,746 3,615 Financial Debt / EBITDA L12M 2.09 2.25
Argentina 2,682 839 EBITDA L12M / Interest Expense (net) L12M 6.50 6.82
12,515 12,089 L12M: Last twelve months
* As June 30, 2005, the company's registered a negative net cash position of
US$ 1 million. Total debt amounted to US$ 361 million.
Total Cash amounted to US$ 360 million, which includes cash investments
accounted for under Other Current Assets as well as Long Term Assets.
EMBOTELLADORA ANDINA S.A.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, in the city of Santiago, Chile.
EMBOTELLADORA ANDINA S.A.
By: /s/ Osvaldo Garay
---------------------
Osvaldo Garay
Chief Financial Officer
Dated: August 11, 2005