Indicate by check mark whether the registrant
files or will file annual reports under cover Form 20-F or 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):
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):
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
Notes to the Consolidated Interim Financial
Statements
1 - CORPORATE INFORMATION
Embotelladora Andina S.A. RUT (Chilean
Tax Id. N°) 91.144.000-8 (hereinafter “Andina,” and together with its subsidiaries, the “Company”)
is an open stock corporation, whose corporate address and principal offices are located at Miraflores 9153, borough of Renca,
Santiago, Chile. The Company is registered under No. 00124 of the Securities Registry and is regulated by Chile’s Financial
Market Commission (hereinafter “CMF”) and pursuant to Chile’s Law 18,046 is subject to the supervision of this
entity. It is also registered with the U.S. Securities and Exchange Commission (hereinafter “SEC”) and its stock is
traded on the New York Stock Exchange since 1994.
The principal activity of Embotelladora
Andina S.A. is to produce, bottle, commercialize and distribute the products under registered trademarks of The Coca-Cola Company
(TCCC). The Company maintains operations and is licensed to produce, commercialize and distribute such products in certain territories
in Chile, Brazil, Argentina and Paraguay
In Chile, the territories in which it
has such a license are the Metropolitan Region; the province of San Antonio, the V Region; the province of Cachapoal including
the commune of San Vicente de Tagua-Tagua, the VI Region; the II Region of Antofagasta; the III Region of Atacama, the IV Region
of Coquimbo XI Region de Aysén del General Carlos Ibáñez del Campo; XII Region of Magallanes and Chilean
Antarctic. In Brazil, the aforementioned license covers much of the state of Rio de Janeiro, the entire state of Espirito Santo,
and part of the states of Sao Paulo and Minas Gerais. In Argentina it includes the provinces of Córdoba, Mendoza, San Juan,
San Luis, Entre Ríos, as well as part of the provinces of Santa Fe and Buenos Aires, Chubut, Santa Cruz, Neuquén,
Río Negro, La Pampa, Tierra del Fuego, Antarctica and South Atlantic Islands. Finally, in Paraguay the territory comprises
the whole country. The bottling agreement for the territories in Chile expires in October 2023; in Argentina it expires in 2022;
in Brazil it expires in 2022, and in Paraguay it expires in 2020.
Said agreements are renewable upon the
request of the licensee and at the sole discretion of The Coca-Cola Company.
As of the date of these consolidated financial
statements, regarding Andina’s principal shareholders, the Controlling Group holds 45.16% of the outstanding shares with
voting rights, corresponding to the Series A shares. The Controlling Group is composed of the Chadwick Claro, Garcés Silva,
Hurtado Berger, Said Handal and Said Somavía families, who control the Company in equal parts.
These Consolidated Interim Financial Statements
reflect the consolidated financial position of Embotelladora Andina S.A. and its subsidiaries, which were approved by the Board
of Directors on July 28, 2020.
2 - BASIS OF PREPARATION
OF CONSOLIDATED INTERIM FINANCIAL STATEMENTS AND APPLICATION OF ACCOUNTING CRITERIA
2.1 Accounting
principles and basis of preparation
The Company’s Consolidated Interim
Financial Statements for the periods ended June 30, 2020 and December 31, 2019, have been prepared in accordance with International
Accounting Standard N° 34 (IAS 34) incorporated in the International Financial Reporting Standards (hereinafter "IFRS")
issued by the International Accounting Standards Board (hereinafter "IASB").
These Consolidated Interim Financial Statements
have been prepared following the going concern principle by applying the historical cost method, with the exception, according
to IFRS, of those assets and liabilities that are recorded at fair value.
These Consolidated Interim Statements
reflect the consolidated financial position of Embotelladora Andina S.A. and its Subsidiaries as of June 30, 2020 and December
31, 2019 and the results of operations for the periods between January 1 and June 30, 2020 and 2019 and April 30 and June 30,
2020 and 2019, together with the statements of changes in equity and cash flows for the periods between January 1 and June 30,
2020 and 2019.
These Consolidated Interim Financial Statements
have been prepared based on the accounting records maintained by the Parent Company and by the other entities that are part of
the Company and are presented in thousands of Chilean pesos (unless expressly stated) as this is the functional and presentation
currency of the Company. Foreign operations are included in accordance with the accounting policies established in Notes 2.5.
2.2 Subsidiaries
and consolidation
Subsidiary entities are those companies
directly or indirectly controlled by Embotelladora Andina. Control is obtained when the Company has power over the investee, when
it has exposure or is entitled to variable returns from its involvement in the investee and when it has the ability to use its
power to influence the amount of investor returns. They include assets and liabilities, results of operations, and cash flows
for the periods reported. Income or losses from subsidiaries acquired or sold are included in the Consolidated Financial Statements
from the effective date of acquisition through the effective date of disposal, as applicable.
The acquisition method is used to account
for the acquisition of subsidiaries. The consideration transferred for the acquisition of the subsidiary is the fair value of
assets transferred, equity securities issued, liabilities incurred or assumed on the date that control is obtained. Identifiable
assets acquired, and identifiable liabilities and contingencies assumed in a business combination are accounted for initially
at their fair values at the acquisition date. Goodwill is initially measured as the excess of the aggregate of the consideration
transferred and the fair value of non-controlling interest over the net identifiable assets acquired and liabilities assumed.
If the consideration is less than the fair value of the net assets of the subsidiary acquired, the difference is recognized directly
in the income statement.
Intercompany transactions, balances and
unrealized gains on transactions between Group entities are eliminated. Unrealized losses are also eliminated. When necessary,
the accounting policies of the subsidiaries are modified to ensure uniformity with the policies adopted by the Group.
The interest of non-controlling shareholders
is presented in the consolidated statement of changes in equity and the consolidated statement of income by function under "Non-Controlling
Interest" and “Earnings attributable to non-controlling interests", respectively.
The consolidated financial statements
include all assets, liabilities, income, expenses, and cash flows of the Company and its subsidiaries after eliminating balances
and transaction among the Group’s entities, the subsidiary companies included in the consolidation are the following:
|
|
|
|
|
Ownership
interest
|
|
|
|
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
Taxpayer
ID
|
|
Company
Name
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
Direct
|
|
|
Indirect
|
|
|
Total
|
|
|
59.144.140-K
|
|
Abisa Corp S.A.
|
|
|
-
|
|
|
|
99.99
|
|
|
|
99.99
|
|
|
|
-
|
|
|
|
99.99
|
|
|
|
99.99
|
|
|
Foreign
|
|
Aconcagua Investing Ltda.
|
|
|
0.70
|
|
|
|
99.28
|
|
|
|
99.98
|
|
|
|
0.70
|
|
|
|
99.28
|
|
|
|
99.98
|
|
|
96.842.970-1
|
|
Andina Bottling Investments
S.A.
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
96.972.760-9
|
|
Andina Bottling Investments
Dos S.A.
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
Foreign
|
|
Andina Empaques Argentina
S.A.
|
|
|
-
|
|
|
|
99.98
|
|
|
|
99.98
|
|
|
|
-
|
|
|
|
99.98
|
|
|
|
99.98
|
|
|
96.836.750-1
|
|
Andina Inversiones Societarias
S.A.
|
|
|
99.98
|
|
|
|
0.01
|
|
|
|
99.99
|
|
|
|
99.98
|
|
|
|
0.01
|
|
|
|
99.99
|
|
|
76.070.406-7
|
|
Embotelladora Andina Chile
S.A.
|
|
|
99.99
|
|
|
|
-
|
|
|
|
99.99
|
|
|
|
99.99
|
|
|
|
-
|
|
|
|
99.99
|
|
|
Foreign
|
|
Embotelladora del Atlántico
S.A.
|
|
|
0.92
|
|
|
|
99.07
|
|
|
|
99.99
|
|
|
|
0.92
|
|
|
|
99.07
|
|
|
|
99.99
|
|
|
96.705.990-0
|
|
Envases Central S.A.
|
|
|
59.27
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|
|
|
-
|
|
|
|
59.27
|
|
|
|
59.27
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|
|
|
-
|
|
|
|
59.27
|
|
|
Foreign
|
|
Paraguay Refrescos S.A.
|
|
|
0.08
|
|
|
|
97.75
|
|
|
|
97.83
|
|
|
|
0.08
|
|
|
|
97.75
|
|
|
|
97.83
|
|
|
76.276.604-3
|
|
Red de Transportes Comerciales
Ltda.
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
Foreign
|
|
Rio de Janeiro Refrescos Ltda.
|
|
|
-
|
|
|
|
99.99
|
|
|
|
99.99
|
|
|
|
-
|
|
|
|
99.99
|
|
|
|
99.99
|
|
|
78.536.950-5
|
|
Servicios Multivending Ltda.
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
78.861.790-9
|
|
Transportes Andina Refrescos
Ltda.
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
|
99.9
|
|
|
|
0.09
|
|
|
|
99.99
|
|
|
96.928.520-7
|
|
Transportes Polar S.A.
|
|
|
99.99
|
|
|
|
-
|
|
|
|
99.99
|
|
|
|
99.99
|
|
|
|
-
|
|
|
|
99.99
|
|
|
76.389.720-6
|
|
Vital Aguas S.A.
|
|
|
66.50
|
|
|
|
-
|
|
|
|
66.50
|
|
|
|
66.50
|
|
|
|
-
|
|
|
|
66.50
|
|
|
93.899.000-k
|
|
Vital Jugos S.A.
|
|
|
15.00
|
|
|
|
50.00
|
|
|
|
65.00
|
|
|
|
15.00
|
|
|
|
50.00
|
|
|
|
65.00
|
|
2.3 Investments
in associates and joint ventures
Ownership interest held by the Group in
joint ventures and associates are recorded following the equity method. According to the equity method, the investment in an associate
or joint venture is initially recorded at cost. As of the date of acquisition, the investment in the statement of financial position
is recorded by the proportion of its total assets, which represents the Group's participation in its capital, once adjusted, where
appropriate, the effect of the transactions made with the Group, plus capital gains that have been generated in the acquisition
of the company.
Dividends received from these companies
are recorded by reducing the value of the investment and the results obtained by them, which correspond to the Group according
to its ownership, are recorded under the item “Participation in profit (loss) of associates accounted for by the equity
method.”
2.3.1 Investments
in Associates
Associates are all entities over which
the Group exercises significant influence but does not have control. Significant influence is the power to intervene in the financial
and operating policy decisions of the associate, without having control or joint control over it. The results of these associates
are accounted for using the equity method. Accounting policies of the associates are changed, where necessary, to ensure conformity
with the policies adopted by the Company and unrealized gains are eliminated.
2.3.2 Joint arrangements
Joint arrangements are those entities
in which the Group exercises control through an agreement with other shareholders and jointly with them, that is, when decisions
on their relevant activities require the unanimous consent of the parties that share control.
Depending on the rights and obligations
of the parties, joint arrangements are classified as:
|
|
-
|
Joint
venture: agreement whereby the parties exercising joint control are entitled to the net
assets of the entity. Joint ventures are integrated into the consolidated financial statements
by the equity method, as described above.
|
|
|
-
|
Joint
operation: agreement whereby the parties exercising joint control are entitled to the
assets and obligations with respect to the liabilities related to the agreement. Joint
operations are consolidated by proportionally integrating the assets and liabilities
affected by said operation.
|
To determine the type of joint agreement
that derives from a contractual agreement, Group Management evaluates the structure and legal form of the agreement, the terms
agreed by the parties, as well as other relevant factors and circumstances.
Embotelladora Andina does not have joint
arrangements that qualify as a joint operation business.
2.4 Financial reporting
by operating segment
“IFRS 8 Operating Segments”
requires that entities disclose information on the results of operating segments. In general, this is information that Management
and the Board of Directors use internally to assess performance of segments and allocate resources to them. Therefore, the following
operating segments have been determined based on geographic location:
2.5 Functional
currency and presentation currency
2.5.1 Functional
currency
Items included in the financial statements of each of the entities
in the Company are measured using the currency of the primary economic environment in which the entity operates (“functional
currency”). The functional currency of each of the Operations is the following:
|
Company
|
Functional
currency
|
|
Embotelladora del
Atlántico
|
Argentine Peso (ARS)
|
|
Embotelladora Andina
|
Chilean Peso (CLP)
|
|
Paraguay Refrescos
|
Paraguayan Guaraní (PYG)
|
|
Rio de Janeiro Refrescos
|
Brazil Real (BRL)
|
Foreign currency-denominated monetary
assets and liabilities are converted to the functional currency at the spot exchange rate in effect on the closing date.
All differences arising from the liquidation
or conversion of monetary items are recorded in the income statement, with the exception of the monetary items designated as part
of the hedging of the Group's net investment in a business abroad. These differences are recorded under other comprehensive income
until the disposal of the net investment, at which point they are reclassified to the income statement. Tax adjustments attributable
to exchange differences in these monetary items are also recognized under other comprehensive income.
Non-monetary items that are valued at
historical cost in a foreign currency are converted using the exchange rate in effect at the date of the initial transaction.
Non-monetary items measured at fair value in a foreign currency are converted using the exchange rate in effect at the date on
which fair value is determined. Losses or gains arising from the conversion of non-monetary items measured at fair value are recorded
in accordance with the recognition of losses or gains arising from the change in the fair value of the respective item (e.g.,
exchange differences arising from items whose fair value gains or losses are recognized in another overall result or in results
are also recognized under comprehensive income ).
Functional currency in hyperinflationary economies
Beginning July 2018, Argentina's economy
is considered as hyperinflationary, according to the criteria established in the International Accounting Standard No. 29 “Financial
information in hyperinflationary economies” (IAS 29). This determination was carried out based on a series of qualitative
and quantitative criteria, including an accumulated inflation rate of more than 100% for three years. In accordance with IAS 29,
the financial statements of companies in which Embotelladora Andina S.A. participates in Argentina have been retrospectively restated
by applying a general price index to the historical cost, in order to reflect the changes in the purchasing power of the Argentine
peso, as of the closing date of these financial statements.
Non-monetary assets and liabilities were
restated since February 2003, the last date an inflation adjustment was applied for accounting purposes in Argentina. In this
context, it should be mentioned that the Group made its transition to IFRS on January 1, 2004, applying the attributed cost exemption
for Property, plant and equipment.
For consolidation purposes in Embotelladora
Andina S.A. and as a result of the adoption of IAS 29, the results and financial situation of our Argentine subsidiaries were
converted to the closing exchange rate (ARS/CLP) as June 30, 2020, in accordance with IAS 21 "Effects of foreign currency
exchange rate variations", when dealing with a hyperinflationary economy.
The comparative amounts in the consolidated
financial statements are those that were presented as current year amounts in the relevant financial statements of the previous
year (i.e., not adjusted for subsequent changes in price level or exchange rates). This results in differences between the closing
net equity of the previous year and the opening net equity of the current year and, as an accounting policy option, these changes
are presented as follows: (a) the re-measurement of initial balances under IAS 29 as an adjustment to equity and (b) subsequent
effects, including re-expression under IAS 21 , as "Exchange rate differences in the conversion of foreign operations"
under other comprehensive income.
Whereas the functional and presentation
currency of Embotelladora Andina S.A. does not correspond to that of a hyperinflationary economy, according to the guidelines
set out in IAS 29, the re-expression of periods is not required in the consolidated financial statements of the Group.
Inflation for the periods January to June
2020 and January to December 2019 amounted to 13.58% and 54.85%, respectively.
2.5.2 Presentation
currency
The presentation currency is the Chilean
peso, which is the functional currency of the parent company, for such purposes, the financial statements of subsidiaries are
translated from the functional currency to the presentation currency as indicated below:
|
|
a.
|
Translation of financial statements
whose functional currency does not correspond to hyperinflationary economies (Brazil
and Paraguay)
|
Financial statements measured
as indicated are translated to the presentation currency as follows:
|
|
·
|
The
statement of financial position is translated to the closing exchange rate at the financial
statement date and the income statement is translated at the average monthly exchange
rates, the differences that result are recognized in equity under other comprehensive
income.
|
|
|
·
|
Cash
flow income statement are also translated at average exchange rates for each transaction.
|
|
|
·
|
In
the case of the disposal of an investment abroad, the component of other comprehensive
income (OCI) relating to that investment is reclassified to the income statement.
|
|
|
b.
|
Translation of financial statements whose functional currency
corresponds to hyperinflationary economies (Argentina)
|
Financial statements of economies
with a hyperinflationary economic environment, are recognized according to IAS 29 Financial Information in Hyperinflationary
Economies, and subsequently converted to Chilean pesos as follows:
|
|
·
|
The statement
of financial position sheet is translated at the closing exchange rate at the financial
statements date.
|
|
|
·
|
The income statement
is translated at the closing exchange rate at the financial statements date
|
|
|
·
|
The statement
of cash flows is converted to the closing exchange rate at the date of the financial
statements.
|
|
|
·
|
In the case of
the disposal of an investment abroad, the component of other comprehensive income (OCI)
relating to that investment is reclassified to the income statement.
|
2.5.3 Exchange
rates
Exchange rates regarding
the Chilean peso in effect at the end of each period are as follows:
|
Date
|
|
USD
|
|
|
BRL
|
|
|
ARS
|
|
|
PGY
|
|
|
06.30.2020
|
|
|
821.23
|
|
|
|
149.96
|
|
|
|
11.66
|
|
|
|
0.121
|
|
|
12.31.2019
|
|
|
748.74
|
|
|
|
185.76
|
|
|
|
12.50
|
|
|
|
0.116
|
|
|
06.30.2019
|
|
|
679.15
|
|
|
|
177.22
|
|
|
|
15.99
|
|
|
|
0.110
|
|
2.6 Property, plant,
and equipment
The elements of Property, plant and equipment,
are valued for their acquisition cost, net of their corresponding accumulated depreciation, and of the impairment losses they
have experienced.
The cost of the items of Property, plant
and equipment include in addition to the price paid for the acquisition: i) the financial expenses accrued during the construction
period that are directly attributable to the acquisition, construction or production of qualified assets, which are those that
require a substantial period of time before being ready for use, such as production facilities. The Group defines a substantial
period as one that exceeds twelve months. The interest rate used is that corresponding to specific financing or, if it does not
exist, the weighted average financing rate of the Company making the investment; and ii) personnel expenses directly related to
the construction in progress.
Construction in progress is transferred
to operating assets after the end of the trial period when they are available for use, from which moment depreciation begins.
Subsequent costs are included in the asset’s
carrying amount or recognized as a separate asset only when it is probable that future economic benefits associated with the items
of Property, plant and equipment will flow to the Company and the cost of the item can be measured reliably. The carrying amount
of the replaced part is derecognized. Repairs and maintenance are charged to the income statement in the reporting period in which
they are incurred.
Land is not depreciated since it has an
indefinite useful life. Depreciation on other assets is calculated using the straight-line method to allocate their cost or revalued
amounts to their residual values over their estimated useful lives.
The estimated useful lives by asset category
are:
|
Assets
|
|
Range
in years
|
|
Buildings
|
|
30-50
|
|
Plant and equipment
|
|
10-20
|
|
Warehouse installations and accessories
|
|
10-30
|
|
Furniture and supplies
|
|
4-5
|
|
Motor vehicles
|
|
5-7
|
|
Other Property, plant and equipment
|
|
3-8
|
|
Bottles and containers
|
|
2-8
|
The residual value and useful lives of
Property, plant and equipment are reviewed and adjusted at the end of each fiscal year, if appropriate.
When the value of an asset is greater
than its estimated recoverable amount, the value is written down immediately to its recoverable amount.
Gains and losses on disposals of property,
plant, and equipment are calculated by comparing the proceeds to the carrying amount and are charged to other expenses by function
or other gains, as appropriate in the statement of comprehensive income.
If there are items available for sale
and comply with the conditions of IFRS 5 "Non-current assets held for sale and discontinued operations" are separated
from Property, plant and equipment and are presented within current assets at the lower value between the book value and its fair
value less selling costs.
2.7 Intangible
assets and Goodwill
Goodwill represents the excess
of the consideration transferred over the Company’s interest in the net fair value of the net identifiable assets of the
subsidiary and the fair value of the non-controlling interest in the subsidiary on the acquisition date. Since goodwill is an
intangible asset with indefinite useful life, it is recognized separately and tested annually for impairment. Goodwill is carried
at cost less accumulated impairment losses.
Gains and losses on the sale of an entity
include the carrying amount of goodwill related to that entity.
Goodwill is assigned to each cash generating
unit (CGU) or group of cash-generating units, from where it is expected to benefit from the synergies arising from the business
combination. Such CGUs or groups of CGUs represent the lowest level in the organization at which goodwill is monitored for internal
management purposes.
2.7.2 Distribution
rights
Distribution rights are contractual
rights to produce and/or distribute products under the Coca-Cola brand and other brands in certain territories in Argentina, Brazil,
Chile and Paraguay that were acquired during Business Combination. Distribution rights are born from the process of valuation
at fair value of the assets and liabilities of companies acquired in business combinations. Distribution rights have an indefinite
useful life and are not amortized, (as they are permanently renewed by The Coca-Cola Company) and therefore are subject to impairment
tests on an annual basis.
Carrying amounts correspond
to internal and external software development costs, which are capitalized once the recognition criteria in IAS 38, Intangible
Assets, have been met. Their accounting recognition is initially realized for their acquisition or production cost and, subsequently,
they are valued at their net cost of their corresponding accumulated amortization and of the impairment losses that, if applicable,
they have experienced. The aforementioned software is amortized within four years.
2.8 Impairment of non-financial assets
Assets that have an indefinite useful
life, such as intangibles related to distribution rights and goodwill, are not amortized and are tested annually for impairment
or more frequently if events or changes in circumstances indicate a potential impairment. Assets that are subject to amortization
are tested for impairment whenever there is an event or change in circumstances indicating that the carrying amount may not be
recoverable. An impairment loss is recognized for the amount by which the carrying value of the asset exceeds its recoverable
amount. The recoverable amount is the greater of an asset’s fair value less costs to sell or its value in use.
For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating units - CGU).
Regardless of what was stated in the previous
paragraph, in the case of CGUs to which capital gains or intangible assets have been assigned with an indefinite useful life,
the analysis of their recoverability is carried out systematically at the end of each fiscal year. These indications may include
new legal provisions, change in the economic environment that affects business performance indicators, competition movements,
or the disposal of an important part of a CGU.
Management reviews business performance
based on geographic segments. Goodwill is monitored at the operating segment level that includes the different cash generating
units in operations in Chile, Brazil, Argentina and Paraguay. The impairment of distribution rights is monitored geographically
in the CGU or group of cash generating units, which correspond to specific territories for which Coca-Cola distribution rights
have been acquired. These cash generating units or groups of cash generating units are composed of the following segments:
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Operation
in Chile (excluding the Metropolitan Region, Rancagua Province and San Antonio Province);
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-
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Operation
in Argentina (North and South region);
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Operation
in Brazil (State of Rio de Janeiro and Espirito Santo, Ipiranga territories, investment
in the Sorocaba associate and investment in the Leão Alimentos S.A. associate);
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To check if goodwill has suffered a loss
due to impairment of value, the Company compares the book value thereof with its recoverable value, and recognizes an impairment
loss, for the excess of the asset's carrying amount over its recoverable amount. To determine the recoverable values of
the CGU, management considers the discounted cash flow method as the most appropriate.
The main assumptions used in the annual
test are:
The discount rate applied
in the annual test carried out in December 2019 was estimated using the CAPM (Capital Asset Pricing Model) methodology, which
allows estimating a discount rate according to the level of risk of the CGU in the country where it operates. A nominal discount
rate before tax is used according to the following table:
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Discount
rates 2019
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Argentina
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35.3%
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Chile
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8.5%
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Brazil
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11.4%
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Paraguay
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11.5%
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The financial projections
to determine the net present value of the future cash flows of the CGUs are modeled based on the main historical variables and
the respective budgets approved by the CGU. In this regard, a conservative growth rate is used, which reaches 3% for the carbonated
beverage category and up to 7% for less developed categories such as juices and waters. Beyond the fifth year of projection, growth
perpetuity rates are established per operation ranging from 1% to 2.5% depending on the degree of maturity of the consumption
of the products in each operation. In this sense, the variables with greatest sensitivity in these projections are the discount
rates applied in the determination of the net present value of projected cash flows, growth perpetuities and EBITDA margins considered
in each CGU.
In order to sensitize the
impairment test, variations were made to the main variables used in the model. Ranges used for each of the modified variables
are:
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-
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Discount
Rate: Increase / Decrease of up to 100 bps as a value in the rate at which future
cash flows are discounted to bring them to present value
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-
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Perpetuity:
Increase / Decrease of up to 75 bps in the rate to calculate the perpetual growth of
future cash flows
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-
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EBITDA
margin: Increase / Decrease of 100 bps of EBITDA margin of operations, which is applied
per year for the projected periods, that is, for the years 2020-2024
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Management
carries out the process of annual goodwill impairment assessments as of December 31 of each year for each CGU.
As a result of tests conducted, no signs
of impairments in any of the CGUs were identified, assuming conservative EBITDA margin projections in line with market history.
Despite the deterioration in macroeconomic
conditions experienced by the economies of the countries where cash-generating units operate, the impairment test resulted in
recovery values higher than the book values including sensitivity calculations to which it was submitted.
During this period Company management
has performed an interim analysis, where no impairment indicators have been identified.
2.9 Financial instruments
A financial instrument is any contract
that results in the recognition of a financial asset in one entity and a financial liability or equity instrument in another entity.
2.9.1 Financial
assets
Pursuant to IFRS 9 “Financial Instruments”,
except for certain trade accounts receivable, the Group initially measures a financial asset at its fair value plus transaction
costs, in the case of a financial asset that is not at fair value, reflecting changes in P&L.
According to IFRS 9, financial assets
are subsequently measured at (i) fair value with changes in P&L (FVPL), (ii) amortized cost or (iii) fair value through other
comprehensive income (FVOCI). The classification is based on two criteria: (a) the Group's business model for the purpose of managing
financial assets to obtain contractual cash flows; and (b) if the contractual cash flows of financial instruments represent "solely
payments of principal and interest” on the outstanding principal amount (the “SPPI criterion”).
The subsequent classification and measurement
of the Group's financial assets are as follows:
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Financial asset at amortized cost
for financial instruments that are maintained within a business model with the objective
of maintaining the financial assets to collect contractual cash flows that meet the SPPI
criterion. This category includes the Group’s trade and other accounts receivable.
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Financial assets measured at fair
value with changes in other comprehensive income (FVOCI), with gains or losses recognized
in P&L at the time of liquidation. Financial assets in this category correspond to
the Group's instruments that meet the SPPI criterion and are kept within a business model
both to collect cash flows and to sell.
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Other financial assets are classified
and subsequently measures as follows:
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Equity instruments at fair value
with changes in other comprehensive income (FVOCI) without recognizing earnings or losses
in P&L at the time of liquidation. This category only includes equity instruments
that the Group intends to keep in the foreseeable future and that the Group has irrevocably
chosen to classify in this category in the initial recognition or transition.
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Financial assets at fair value
with changes in P&L (FVPL) include derivative instruments and equity instruments
quoted that the Group had not irrevocably chosen to classify at FVOCI in the initial
recognition or transition. This category also includes debt instruments whose cash flow
characteristics do not comply with the SPPI criterion or are not kept within a business
model whose objective is to recognize contractual cash flows or sale.
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A financial asset (or, where applicable,
a portion of a financial asset or a portion of a group of similar financial assets) is initially disposed (for example, canceled
in the Group's consolidated financial statements) when:
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-
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The rights to receive cash flows
from the asset have expired,
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-
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The Group has transferred the rights
to receive the cash flows of the asset or has assumed the obligation to pay all cash
flows received without delay to a third party under a transfer agreement; and the Group
(a) has substantially transferred all risks and benefits of the asset, or (b) has not
substantially transferred or retained all risks and benefits of the asset, but has transferred
control of the asset.
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2.9.2 Financial
Liabilities
Financial liabilities are classified as
a fair value financial liability at the date of their initial recognition, as appropriate, with changes in results, loans and
credits, accounts payable or derivatives designated as hedging instruments in an effective coverage.
All financial liabilities are initially
recognized at fair value and transaction costs directly attributable are netted from loans and credits and accounts payable.
The Group's financial liabilities include
trade and other accounts payable, loans and credits, including those discovered in current accounts, and derivative financial
instruments.
The classification and subsequent measurement of the Group's
financial liabilities are as follows:
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Fair value financial
liabilities with changes in results include financial liabilities held for trading and
financial liabilities designated in their initial recognition at fair value with changes
in results. The losses or gains of liabilities held for trading are recognized in the
income statement.
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Loans and credits
are valued at cost or amortized using the effective interest rate method. Gains and losses
are recognized in the income statement when liabilities are disposed, as well as interest
accrued in accordance with the effective interest rate method.
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A financial liability is disposed of when
the obligation is extinguished, cancelled or expires. Where an existing financial liability is replaced by another of the same
lender under substantially different conditions, or where the conditions of an existing liability are substantially modified,
such exchange or modification is treated as a disposal of the original liability and the recognition of the new obligation. The
difference in the values in the respective books is recognized in the statement of income.
2.9.3 Offsetting financial instruments
Financial assets and financial liabilities are offset with
the corresponding net amount presenting the corresponding net amount in the statement of financial position, if:
-
There is currently a legally enforceable right to offset the amounts recognized, and
-
It is intended to liquidate them for the net amount or to realize the assets and liquidate the liabilities simultaneously.
2.10 Derivatives
financial instruments and hedging activities
The Company and its subsidiaries use derivative
financial instruments to mitigate risks relating to changes in foreign currency and exchange rates associated with raw materials,
and loan obligations. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and
are subsequently re-measured at their fair value at each closing date. Derivatives are accounted as financial assets when the
fair value is positive and as financial liabilities when the fair value is negative. The method of recognizing the resulting gain
or loss depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
2.10.1 Derivative
financial instruments designated as cash flow hedges
At the inception of the transaction, the
group documents the relationship between hedging instruments and hedged items, as well as its risk management objectives and strategy
for undertaking various hedging transactions. The group also documents its assessment, both at hedge inception and on an ongoing
basis, of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows
of hedged items.
The effective portion of changes in the
fair value of derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The
gain or loss relating to the ineffective portion is recognized immediately in the consolidated income statement within "other
gains (losses)”
Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for
example, when foreign currency denominated financial liabilities are translated into their functional currencies). The gain or
loss relating to the effective portion of cross currency swaps hedging the effects of changes in foreign exchange rates are recognized
in the consolidated income statement within "foreign exchange differences.” When a hedging instrument expires
or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity
at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the consolidated income
statement.
2.10.2 Derivative
financial instruments not designated for hedging
The fair value of derivative financial
instruments that do not qualify for hedge accounting pursuant to IFRS are immediately recognized in the income statement under
"Other income and losses". The fair value of these derivatives is recorded under "other current financial assets"
or "other current financial liabilities" in the statement of financial position.”
The Company does not use hedge accounting
for its foreign investments.
The Company also evaluates the existence
of derivatives implicitly in contracts and financial instruments as stipulated by IFRS 9 and classifies them pursuant to their
contractual terms and the business model of the group. As of June 30, 2020, the Company had no implicit derivatives.
2.10.3 Fair
value hierarchy
Fair value
is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants on the date of the transaction. Fair value is based on the presumption that the transaction to sell the asset or
to transfer the liability takes place;
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-
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In
the asset or liability main market, or
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-
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In
the absence of a main market, in the most advantageous market for the transaction of
those assets or liabilities.
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The Company maintains
assets related to foreign currency derivative contracts which were classified as Other current and non-current financial assets
and Other current and non-current financial liabilities, respectively, and are accounted at fair value within the statement of
financial position. The Company uses the following hierarchy to determine and disclose the fair value of financial instruments
with assessment techniques:
Level 1: Quote
values (unadjusted) in active markets for identical assets or liabilities
Level 2: Valuation
techniques for which the lowest level variable used, which is significant for the calculation, is directly or indirectly observable
Level 3: Valuation
techniques for which the lowest level variable used, which is significant for the calculation, is not observable.
During the reporting
periods there were no transfers of items between fair value measurement categories. All of which were valued during the period
using Level 2.
Inventories are stated
at the lower of cost and net realizable value. Cost is determined using the weighted average cost method. The cost of finished
goods and work in progress includes raw materials, direct labor, other direct costs and manufacturing overhead (based on operating
capacity) to bring the goods to marketable condition, but it excludes interest expense. Net realizable value is the estimated
selling price in the ordinary course of business, less applicable variable selling expenses. Spare parts and production materials
are stated at the lower of cost or net realizable value.
The initial cost of inventories includes
the transfer of losses and gains from cash flow hedges, recognized under other comprehensive income, related to the purchase of
raw materials.
Estimates are also
made for obsolescence of raw materials and finished products based on turnover and age of the related goods.
Trade accounts and other accounts receivable
are measured and recognized at the transaction price at the time they are generated less the provision for expected credit losses,
pursuant to the requirements of IFRS 15, since they do not have a significant financial component. The provision for expected
credit losses is made applying a value impairment model based on expected credit losses for the following 12 months. The Group
applies a simplified focus for trade receivables, thereby impairment is always recorded referring to expected losses during the
whole life of the asset. The carrying amount of the asset is reduced by the provision of expected credit losses, and the loss
is recognized in administrative expenses in the consolidated income statement by function.
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2.13
|
Cash and cash equivalents
|
Cash and cash equivalents include cash
on hand, bank balances, time deposits and other short-term highly liquid and low risk of change in value investments and mutual
funds with original short-term maturities equal to or less than three months from the date of acquisition.
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2.14
|
Other
financial liabilities
|
Resources obtained from financial institutions
as well as the issuance of debt securities are initially recognized at fair value, net of costs incurred during the transaction.
Then, liabilities are valued by accruing interests in order to equal the current value with the future value of liabilities payable,
using the effective interest rate method.
General and specific borrowing costs directly
attributable to the acquisition, construction or production of qualified assets, considered as those that require a substantial
period of time in order to get ready for their forecasted use or sale, are added to the cost of those assets until the period
in which the assets are substantially ready to be used or sold.
The Company and its subsidiaries in Chile
account for income tax according to the net taxable income calculated based on the rules in the Income Tax Law. Subsidiaries in
other countries account for income taxes according to the tax regulations of the country in which they operate.
Deferred income taxes are calculated using
the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts
in the Consolidated Financial Statements, using the tax rates that have been enacted or substantively enacted on the balance sheet
date and are expected to apply when the deferred income tax asset is realized, or the deferred income tax liability is settled.
Deferred income tax assets are recognized
only to the extent that it is probable that future taxable profits will be available against which the temporary differences can
be utilized.
The Company does not recognize deferred
income taxes for temporary differences from investments in subsidiaries in which the Company can control the timing of the reversal
of the temporary differences and it is probable that they will not be reversed in the near future.
The Company records a liability regarding
indemnities for years of service that will be paid to employees in accordance with individual and collective agreements subscribed
with employees, which is recorded at actuarial value in accordance with IAS 19 “Employee Benefits”.
Results from updated of actuarial variables
are recorded within other comprehensive income in accordance with IAS 19.
Additionally, the Company has retention
plans for some officers, which have a provision pursuant to the guidelines of each plan. These plans grant the right to certain
officers to receive a cash payment on a certain date once they have fulfilled with the required years of service.
The Company and its subsidiaries have
recorded a provision to account for the cost of vacations and other employee benefits on an accrual basis. These liabilities are
recorded under current non-financial liabilities.
Provisions for litigation and
other contingencies are recognized when the Company has a present legal or constructive obligation as a result of past event,
it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated.
Provisions are measured at the
present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current
market assessments of the time value of money and the risks specific to the obligation.
In accordance with IFRS 16 “Leases”
Embotelladora Andina analyzes, at the beginning of the contract, the economic background of the agreement, to determine if the
contract is, or contains, a lease, evaluating whether the agreement transfers the right to control the use of an identified asset
for a period of time in exchange for a consideration. Control is considered to exist if the client has i) the right to obtain
substantially all the economic benefits from the use of an identified asset; and ii) the right to direct the use of the asset.
The Company when operating as
a lessee, at the beginning of the lease (on the date the underlying asset is available for use) records an asset for the right-of-use
in the statement of financial position (under Property, plant and equipment) and a lease liability (under Other financial liabilities).
This asset is initially recognized at cost, which includes: i) value of the initial measurement of the lease liability; ii) lease
payments made up to the start date less lease incentives received; iii) the initial direct costs incurred; and iv) the estimation
of costs for dismantling or restoration. Subsequently, the right-of-use asset is measured at cost, adjusted by any new measurement
of the lease liability, less accumulated depreciation and accumulated losses due to impairment of value. The right-of-use asset
is depreciated in the same terms as the rest of similar depreciable assets, if there is reasonable certainty that the lessee will
acquire ownership of the asset at the end of the lease. If such certainty does not exist, the asset depreciates at the shortest
period between the useful life of the asset or the lease term.
On the other hand, the lease
liability is initially measured at the present value of the lease payments, discounted at the incremental loan rate of the Company,
if the interest rate implicit in the lease could not be easily determined. Lease payments included in the measurement of the liability
include: i) fixed payments, less any lease incentive receivable; ii) variable lease payments; iii) residual value guarantees;
iv) exercise price of a purchase option; and v) penalties for lease termination.
The lease liability is increased
to reflect the accumulation of interest and is reduced by the lease payments made. In addition, the carrying amount of the liability
is measured again if there is a modification in the terms of the lease (changes in the term, in the amount of payments or in the
evaluation of an option to buy or change in the amounts to be paid). Interest expense is recognized as an expense and is distributed
among the periods that constitute the lease period, so that a constant interest rate is obtained in each year on the outstanding
balance of the lease liability.
Short-term leases, equal to
or less than one year, or lease of low-value assets are excepted from the application of the recognition criteria described above,
recording the payments associated with the lease as an expense in a linear manner throughout the lease term. The Company does
not act as lessor.
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|
2.19
|
Deposits
for returnable containers
|
This liability comprises cash collateral,
or deposit, received from customers for bottles and other returnable containers made available to them.
This liability pertains to the deposit
amount that is reimbursed when the customer or distributor returns the bottles and containers in good condition, together with
the original invoice. The liability is estimated based on the number of bottles given to clients and distributors, the estimated
number of bottles in circulation, and a historical average weighted value per bottle or containers. Deposits for returnable containers
are presented as a current liability in other financial liabilities because the Company does not have legal rights to defer settlement
for a period in excess of one year. However, the Company does not anticipate any material cash settlements for such amounts during
the upcoming year.
The Company recognizes revenue
when control over a good or service is transferred to the client. Control refers to the ability of the client to direct the use
and obtain substantially all the benefits of the goods and services exchanged. Revenue is measured based on the consideration
to which it is expected to be entitled for such transfer of control, excluding amounts collected on behalf of third parties.
Management has defined the following
indicators for revenue recognition, applying the five-step model established by IFRS 15 “Revenue from contracts with customers”:
1) Identification of the contract with the customer; 2) Identification of performance obligations; 3) Determination of the transaction
price; 4) Assignment of the transaction price; and 5) Recognition of revenue.
All the above conditions are
met at the time the products are delivered to the customer. Net sales reflect the units delivered at list price, net of promotions,
discounts and taxes.
The revenue recognition criteria
of the good provided by Embotelladora Andina corresponds to a single performance obligation that transfers the product to be received
to the customer.
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2.21
|
Contributions
of The Coca-Cola Company
|
The Company receives certain
discretionary contributions from The Coca-Cola Company (TCCC) mainly related to the financing of advertising and promotional programs
for its products in the territories where the Company has distribution licenses. The contribution received from TCCC are recognized
in net income after the conditions agreed with TCCC in order to become a creditor to such incentive have been fulfilled, they
are recorded as a reduction in the marketing expenses included in the Administration Expenses account. Given its discretionary
nature, the portion of contributions received in one period does not imply it will be repeated in the following period.
Dividend distribution to Company
shareholders is recorded as a liability in the Company’s Consolidated Financial Statements, considering the 30% minimum
dividend of the period’s earnings established by Chilean Corporate Law, unless otherwise agreed in the respective meeting,
by the unanimity of the issued shares.
Interim and final dividends are recorded at the time of their
approval by the competent body, which in the first case is normally the Board of Directors of the Company, while in the second
case it is the responsibility of General Shareholders’ Meeting.
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|
2.23
|
Critical accounting estimates and judgments
|
The Company makes estimates
and judgments concerning the future. Actual results may differ from previously estimated amounts.
In preparing the consolidated
financial statements, the Company has used certain judgments and estimates made to quantify some of the assets, liabilities, income,
expenses and commitments.
Following is an explanation
of the estimates and judgments that might have a material impact on future financial statements.
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|
2.23.1
|
Impairment
of goodwill and intangible assets with indefinite useful lives
|
The Company tests annually whether
goodwill and intangible assets with indefinite useful life (such as distribution rights) have suffered any impairment. The recoverable
amounts of cash generating units are generating units are determined based on value in use calculations. The key variables used
in the calculations include sales volumes and prices, discount rates, marketing expenses and other economic factors including
inflation. The estimation of these variables requires a use of estimates and judgments as they are subject to inherent uncertainties;
however, the assumptions are consistent with the Company’s internal planning end past results. Therefore, management evaluates,
and updates estimates according to the conditions affecting the variables. If these assets are considered to have been impaired,
they will be written off at their estimated fair value or future recovery value according to the discounted cash flows analysis.
Discounted cash flows in the Company's cash generating units in Chile, Brazil, Argentina and Paraguay generated a higher value
than the carrying values of the respective net assets, including goodwill of the Brazilian, Argentinian and Paraguayan subsidiaries.
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2.23.2
|
Fair
Value of Assets and Liabilities
|
IFRS requires in certain cases
that assets and liabilities be recorded at their fair value. Fair value is the price that would be received for selling an asset
or paid to transfer a liability in a transaction ordered between market participants at the date of measurement.
The basis for measuring assets
and liabilities at fair value are their current prices in an active market. For those that are not traded in an active market,
the Company determines fair value based on the best information available by using valuation techniques.
In the case of the valuation
of intangibles recognized as a result of acquisitions from business combinations, the Company estimates the fair value based on
the "multi-period excess earning method", which involves the estimation of future cash flows generated by the intangible
assets, adjusted by cash flows that do not come from these, but from other assets. The Company also applies estimations over the
period during which the intangible assets will generate cash flows, cash flows from other assets, and a discount rate.
Other assets acquired, and liabilities
assumed in a business combination are carried at fair value using valuation methods that are considered appropriate under the
circumstances. Assumptions include the depreciated cost of recovery and recent transaction values for comparable assets, among
others. These valuation techniques require certain inputs to be estimated, including the estimation of future cash flows.
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2.23.3
|
Allowances
for doubtful accounts
|
The Group uses a provision matrix to calculate
expected credit losses for trade receivables. Provisions are based on due days for various groups of customer segments that have
similar loss patterns (i.e. by geography region, product type, customer type and rating, and credit letter coverage and other
forms of credit insurance).
The provision matrix is initially based
on the historically observed non-compliance rates for the Group. The Group will calibrate the matrix to adjust the historical
credit loss experience with forward-looking information. For example, if expected economic conditions (i.e. gross domestic product)
are expected to deteriorate over the next year, which can lead to more non-compliances in the industry, historical default rates
are adjusted. At each closing date, the observed historical default rates are updated and changes in prospective estimates are
analyzed. The assessment of the correlation between observed historical default rates, expected economic conditions and expected
credit losses are significant estimates.
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|
2.23.4
|
Useful
life, residual value and impairment of property, plant, and equipment
|
Property, plant, and equipment
are recorded at cost and depreciated using the straight-line method over the estimated useful life of those assets. Changes in
circumstances, such as technological advances, changes to the Company’s business model, or changes in its capital strategy
might modify the effective useful lives as compared to our estimates. Whenever the Company determines that the useful life of
Property, plant and equipment might be shortened, it depreciates the excess between the net book value and the estimated recoverable
amount according to the revised remaining useful life. Factors such as changes in the planned usage of manufacturing equipment,
dispensers, transportation equipment and computer software could make the useful lives of assets shorter. The Company reviews
its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of any of those
assets may not be recovered. The estimate of future cash flows is based, among other factors, on certain assumptions about the
expected operating profits in the future. The Company’s estimation of discounted cash flows may differ from actual cash
flows because of, among other reasons, technological changes, economic conditions, changes in the business model, or changes in
operating profit. If the sum of the projected discounted cash flows (excluding interest) is less than the carrying amount of the
asset, the asset shall be written-off to its estimated recoverable value.
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2.23.5
|
Liabilities
for deposits of returnable container
|
The Company records
a liability for deposits received in exchange for bottles and containers provided to its customers and distributors. This liability
represents the amount of deposits that must be reimbursed if the customer or distributor returns the bottles and containers in
good condition, together with the original invoice. This liability is estimated based on the number of bottles given on loan to
customers and distributors, estimates of bottles in circulation and the weighted average historical cost per bottle or container.
Management uses professional judgment in order to estimate this liability, including the number of bottles in circulation, the
amount of deposit that must be reimbursed and the timing of disbursements.
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2.24.1
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New Standards,
Interpretations and Amendments for annual periods beginning on or after January 1, 2020.
|
Standards and interpretations,
as well as the improvements and amendments to IFRS, which have been issued, effective at the date of these financial statements,
are detailed below.
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|
Standards and
Interpretations
|
|
Mandatory application date
|
|
Conceptual Framework
|
Revised Conceptual Framework
|
|
January 1, 2020
|
Revised Conceptual Framework
The IASB issued a Revised Conceptual Framework in March 2018,
incorporating some new concepts, providing updated definitions and recognition criterion for assets and liabilities and clarifying
some important concepts. Changes in the Conceptual Framework may affect the application of IFRS when no standard applies to a
given transaction or event. Application of the revised Conceptual Framework did not have significant impacts on the financial
statements of the Company.
Amendments to IFRS which have been issued
and are in effect beginning January 1, 2020 are detailed below:
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Amendments
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Implementation date
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IFRS 3
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Definition of a business
|
|
January 1,2020
|
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IAS 1 and IAS 8
|
Definition of material
|
|
January 1,2020
|
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IFRS 9, IAS 39 and IFRS 7
|
Reference Interest Rate Reform
|
|
January 1,2020
|
|
IFRS 16
|
COVID-19-Related Rent Concessions
|
|
January 1,2020
|
IFRS 3 Business Combinations -
Definition of Business
The IASB issued
amendments to the definition of business in IFRS 3 Business Combinations, to help entities determine whether an acquired set of
activities and assets is a business or not. The IASB clarifies the minimum requirements for defining a business, eliminates the
assessment of whether market participants are able to replace any missing elements, includes guidance to help entities assess
whether a process acquired is substantial, reduces the definitions of a business and products and introduces an optional fair
value concentration test.
Amendments have
to be applied to business combinations or asset acquisitions that occur on or after the start of the first annual reporting period
beginning on or after January 1, 2020. As a result, entities do not have to review transactions that occurred in previous periods.
Early application is permitted and must be disclosed.
Because the amendments
apply prospectively to transactions or other events that occur on or after the date of the first application, most entities will
probably not be affected by these amendments in the transition. However, those entities that consider the acquisition of a set
of activities and assets after implementing the amendments must first update their accounting policies in a timely manner.
Amendments may
also be relevant in other areas of IFRS (e.g. they may be relevant when a controller loses control of a subsidiary and has anticipated
the sale or contribution of assets between an investor and its associate or joint venture) (Amendments to IFRS 10 and IAS 28).
Company management performs the impact assessment of the previously
mentioned amendments once these types of transactions take place.
IAS 1 Presentation of Financial
Statements and IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors – Definition of Material
In October 2018,
the IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8 Accounting Policies, changes in accounting
estimates and errors, to align the definition of "material" in all standards and to clarify certain aspects of the
definition. The new definition states that information is material if when omitted, misstated, or reasonably hidden could be expected
to influence decisions that primary users of general-purpose of the financial statements make based on those financial statements,
which provide financial information about a specific reporting entity.
Amendments should be applied prospectively.
Early application is permitted and must be disclosed.
While amendments
to the definition of material are not expected to have a significant impact on an entity's financial statements, the introduction
of the term "hide" in the definition could impact the way materiality judgments are made, increasing the importance
of how information is communicated and organized in the financial statements.
Company management performs the impact assessment of the previously
mentioned amendments once these types of transactions take place.
IFRS 9, IAS 39 and IFRS 7 Reference
Interest Rate Reform
In September 2019, the IASB issued amendments
to IFRS 9, IAS 39 and IFRS 7, which concludes the first stage of its work to respond to the effects of the reform of interbank
offer rate (IBOR) in financial information. The amendments provide temporary exceptions that allow hedge accounting to continue
during the uncertain period, prior to replacing existing benchmark interest rates with near-risk free alternative interest rates.
Amendments should be applied retrospectively.
However, any hedge relationship that has previously been discontinued cannot be reinstated with the application of these amendments,
nor can a hedge relationship be designated using the retrospect reasoning benefit. Early application is permitted and must be
disclosed.
The Company will perform an impact assessment of the amendment
once it takes effect.
IFRS 16 COVID-19-Related Rent Concessions
In May 2020, the IASB issued an amendment
to IFRS 16 Leases to provide relief for lessees in the application of IFRS 16 guidance regarding lease modifications due to rent
concessions occurring as a direct consequence of the Covid-19 pandemic. The amendment does not affect lessors.
As a practical solution, a lessee may
choose not to assess whether the Covid-19-related rent reduction granted by a lessor is a modification of the lease. A lessee
making this choice will recognize changes in lease payments from Covid-19-related rent reductions in the same way as it would
recognize the change under IFRS 16 as if such a change was not a modification of the lease.
A lessee shall apply this practical solution
retroactively, recognizing the cumulative effect of the initial application of the amendment as an adjustment in the initial balance
of accumulated results (or another component of equity, as appropriate) at the beginning of the annual reporting period in which
the lessee first applies the amendment.
A lessee will apply this amendment for
annual periods beginning on or after June 1, 2020. Early application is permitted, including in the financial statements not authorized
for publication as of May 28, 2020.
Company management has not implemented
this amendment because it has no Covid-19-related lease modifications.
2.24.2 New Accounting Standards, Interpretations
and Amendments with effective application for annual periods beginning on or after January 1, 2020.
Standards and interpretations, as well as IFRS amendments,
which have been issued, but have still not become effective as of the date of these financial statements are set forth below.
The Company has not made an early adoption of these standards.
|
|
Standards and
Interpretations
|
|
Mandator y application date
|
|
IFRS 17
|
Insurance Contracts
|
|
January 1, 2021
|
IFRS 17 - Insurance Contracts
In May 2017, the IASB issued IFRS 17 Insurance Contracts, a
new accounting standard for insurance contracts that covers recognition, measurement, presentation and disclosure. Once it enters
into force it will replace IFRS 4 Insurance Contracts issued in 2005. The new rule applies to all types of insurance contracts,
regardless of the type of entity that issues them.
In June 2019, the IASB issued a draft IFRS 17 standard with
proposed amendments. The IASB proposed 12 specific amendments in eight areas, which includes deferring the application date of
IFRS 17 for two years, including two additional years of deferral for the application of IFRS 9 to qualified insurance entities
(i.e. qualified insurers may apply IFRS 17 and IFRS 9 for the first time in periods beginning on or after January 1, 2023).
In March 2020, the IASB completed its deliberations on the
draft IFRS 17 standard and aims to. issue the amendments by mid-2020.
Amendments to IFRS that have been issued
to become effective in the near future are detailed below.
|
|
Amendments
|
|
Date of application
|
|
IAS 1
|
Classification of liabilities as currents or non-current
|
|
January 1, 2021
|
|
IFRS 3
|
Reference to the Conceptual Framework
|
|
January 1, 2022
|
|
IAS 16
|
Property, Plant and Equipment — Proceeds before Intended
Use
|
|
January 1, 2022
|
|
IAS 37
|
Onerous Contracts—Cost of Fulfilling a Contract
|
|
January 1, 2022
|
|
IFRS 10 and IAS 28
|
Consolidated Financial Statements - sale or contribution of
assets between an investor and its associate or joint venture
|
|
To be determined
|
IAS 1 Presentation of Financial
Statements - Classification of liabilities as current or non-current
In June 2020, the IASB issued amendments
to paragraphs 69 to 76 of IAS 1 to specify requirements for the classification of liabilities as current or non-current.
The amendments are effective for periods
beginning on or after January 1, 2022. Entities should carefully consider whether there are any aspects of the amendments suggesting
that the terms of their existing loan agreements should be renegotiated. In this context, it is important to stress that amendments
must be implemented retrospectively
IFRS 3 Reference
to the Conceptual Framework
In May 2020,
the IASB issued amendments to IFRS 3 Business Combinations – Reference to the Conceptual Framework. These amendments are
intended to replace the reference to an earlier version of the IASB Conceptual Framework (1989 Framework) with a reference to
the current version issued in March 2018 without significantly changing its requirements.
The amendments
shall be effective for periods beginning on or after January 1, 2022 and should be applied retrospectively. Early application
is permitted if, at the same time or before, an entity also applies all amendments contained in the amendments to the Conceptual
Framework References of the IFRS Standards issued in March 2018.
The amendments
will provide consistency in financial information and avoid potential confusion by having more than one version of the Conceptual
Framework in use.
IAS 16 Property,
Plant and Equipment — Proceeds before Intended Use
The amendment
prohibits deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing
that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Instead,
an entity recognizes the proceeds from selling such items, and the cost of producing those items, in profit or loss for the period,
pursuant to applicable standards.
The amendment
shall be effective for periods beginning on or after January 1, 2022. The amendment should be applied retrospectively only property,
plant and equipment items available for use on or after the beginning of the first period presented in the financial statements
in which the entity first applies the amendment.
IAS 37 Onerous Contracts—Cost
of Fulfilling a Contract
In May 2020,
the IASB issued amendments to IAS 37 Provisions, Contingent Liabilities, and Contingent Assets to specify the costs an
entity needs to include when assessing whether a contract is onerous, or it generates losses.
The amendment
shall be effective for periods beginning on or after January 1, 2022. The amendment should be applied retrospectively to existing
contracts at the beginning of the annual reporting period in which the entity first applies the amendment (date of initial application).
Early application is permitted and must be disclosed.
The amendments
are intended to provide clarity and help ensure consistent implementation of the standard. Entities that previously applied the
incremental cost approach will see an increase in provisions to reflect the inclusion of costs directly related to contract activities,
while entities that previously recognized contractual loss provisions using the guidance to the previous standard, IAS 11 Construction
Contracts, should exclude the allocation of indirect costs from their provisions.
IFRS 10 Consolidated
Financial Statements and IAS 28 Investments in Associates and Joint Ventures – sale or contribution of assets between an
investor and its associate or joint venture
Amendments to IFRS 10 Consolidated
Financial Statements and IAS 28 Investments in Associates and Joint Ventures (2011) address a recognized inconsistency
between IFRS 10 requirements and IAS 28 (2011) requirements in the treatment of the sale or contribution of assets between an
investor and its associate or joint venture. The amendments, issued in September 2014, state that when the transaction involves
a business (whether it is in a subsidiary or not) all gains, or losses generated are recognized. A partial gain or loss is recognized
when the transaction involves assets that do not constitute a business, even when the assets are in a subsidiary. The mandatory
implementation date of these amendments is yet to be determined because the IASB is awaiting the results of its research project
on accounting according to the equity method of accounting. These amendments must be applied retrospectively, and early adoption
is allowed, which must be disclosed.
Company management will perform an impact assessment of the
above described amendments once they become effective.
3 – FINANCIAL REPORTING BY SEGMENT
The Company provides financial information
by segments according to IFRS 8 “Operating Segments,” which establishes standards for reporting by operating segment
and related disclosures for products and services, and geographic areas.
The Company’s Board of Directors
and Management measures and assesses performance of operating segments based on the operating income of each of the countries
where there are Coca-Cola franchises.
The operating segments are determined
based on the presentation of internal reports to the Company´s chief strategic decision-maker. The chief operating decision-maker
has been identified as the Company´s Board of Directors who makes the Company’s strategic decisions.
The following operating segments
have been determined for strategic decision making based on geographic location:
The
four operating segments conduct their businesses through the production and sale of soft drinks and other beverages, as
well as packaging materials.
Expenses and revenue associated
with the Corporate Officer were assigned to the operation in Chile in the soft drinks segment because Chile is the country that
manages and pays the corporate expenses, which would also be substantially incurred, regardless of the existence of subsidiaries
abroad.
Total revenues by segment include
sales to unrelated customers and inter-segments, as indicated in the consolidated statement of income of the Company.
A summary of the Company’s
operating segments in accordance to IFRS is as follows:
|
For
the period ended June 30, 2020
|
|
Chile
Operation
|
|
|
Argentina
Operation
|
|
|
Brazil
Operation
|
|
|
Paraguay
Operation
|
|
|
Intercompany
Eliminations
|
|
Consolidated
total
|
|
|
Net
sales
|
|
|
283,342,395
|
|
|
|
167,367,959
|
|
|
|
282,520,372
|
|
|
|
77,425,200
|
|
|
|
(1,360,010
|
)
|
809,295,916
|
|
|
Cost
of sales
|
|
|
(168,165,784
|
)
|
|
|
(91,126,705
|
)
|
|
|
(184,852,736
|
)
|
|
|
(43,145,885
|
)
|
|
|
1,360,010
|
|
(485,931,100
|
)
|
|
Distribution
expenses
|
|
|
(29,014,394
|
)
|
|
|
(25,405,721
|
)
|
|
|
(18,085,542
|
)
|
|
|
(4,316,984
|
)
|
|
|
-
|
|
(76,822,641
|
)
|
|
Administrative
expenses
|
|
|
(58,858,736
|
)
|
|
|
(38,838,712
|
)
|
|
|
(45,251,418
|
)
|
|
|
(12,594,155
|
)
|
|
|
-
|
|
(155,543,021
|
)
|
|
Finance
income
|
|
|
2,132,895
|
|
|
|
547,912
|
|
|
|
5,839,519
|
|
|
|
117,114
|
|
|
|
-
|
|
8,637,440
|
|
|
Financial
expense
|
|
|
(8,420,098
|
)
|
|
|
(159,110
|
)
|
|
|
(14,914,022
|
)
|
|
|
-
|
|
|
|
-
|
|
(23,493,230
|
)
|
|
Financial
expenses, net (*)
|
|
|
(6,287,203
|
)
|
|
|
388,802
|
|
|
|
(9,074,503
|
)
|
|
|
117,114
|
|
|
|
-
|
|
(14,855,790
|
)
|
|
Share
of entity in income of associates accounted for using the equity method, total
|
|
|
(65,714
|
)
|
|
|
-
|
|
|
|
1,340,354
|
|
|
|
-
|
|
|
|
-
|
|
1,274,640
|
|
|
Income
tax expense
|
|
|
2,259,061
|
|
|
|
(3,999,976
|
)
|
|
|
(6,178,224
|
)
|
|
|
(1,508,212
|
)
|
|
|
-
|
|
(9,427,351
|
)
|
|
Other
income(expenses)
|
|
|
(10,488,757
|
)
|
|
|
(5,242,217
|
)
|
|
|
(3,393,226
|
)
|
|
|
205,947
|
|
|
|
-
|
|
(18,918,253
|
)
|
|
Net
income of the segment reported
|
|
|
12,720,868
|
|
|
|
3,143,430
|
|
|
|
17,025,077
|
|
|
|
16,183,025
|
|
|
|
-
|
|
49,072,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
22,061,576
|
|
|
|
12,226,598
|
|
|
|
14,524,538
|
|
|
|
5,312,324
|
|
|
|
-
|
|
54,125,036
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
413,550,651
|
|
|
|
59,101,811
|
|
|
|
149,150,699
|
|
|
|
55,035,712
|
|
|
|
-
|
|
676,838,873
|
|
|
Non-current
assets
|
|
|
649,725,479
|
|
|
|
169,805,176
|
|
|
|
713,371,521
|
|
|
|
256,420,821
|
|
|
|
-
|
|
1,789,322,997
|
|
|
Segment
assets, total
|
|
|
1,063,276,130
|
|
|
|
228,906,987
|
|
|
|
862,522,220
|
|
|
|
311,456,533
|
|
|
|
-
|
|
2,466,161,870
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
amount in associates and joint ventures accounted for using the equity method, total
|
|
|
49,845,360
|
|
|
|
-
|
|
|
|
41,793,468
|
|
|
|
-
|
|
|
|
-
|
|
91,638,828
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
disbursements of non-monetary assets
|
|
|
27,652,078
|
|
|
|
8,724,036
|
|
|
|
8,932,089
|
|
|
|
7,672,608
|
|
|
|
-
|
|
52,980,811
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
142,714,726
|
|
|
|
60,525,274
|
|
|
|
83,687,739
|
|
|
|
21,464,026
|
|
|
|
-
|
|
308,391,765
|
|
|
Non-current
liabilities
|
|
|
777,515,821
|
|
|
|
13,970,194
|
|
|
|
511,739,682
|
|
|
|
16,786,866
|
|
|
|
-
|
|
1,320,012,563
|
|
|
Segment
liabilities, total
|
|
|
920,230,547
|
|
|
|
74,495,468
|
|
|
|
595,427,421
|
|
|
|
38,250,892
|
|
|
|
-
|
|
1,628,404,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows (used in) provided by in Operating Activities
|
|
|
39,242,209
|
|
|
|
1,457,010
|
|
|
|
29,386,503
|
|
|
|
26,372,083
|
|
|
|
-
|
|
96,457,805
|
|
|
Cash
flows (used in) provided by Investing Activities
|
|
|
(23,663,467
|
)
|
|
|
(8,841,150
|
)
|
|
|
(8,932,089
|
)
|
|
|
(7,672,608
|
)
|
|
|
-
|
|
(49,109,314
|
)
|
|
Cash
flows (used in) provided by Financing Activities
|
|
|
172,659,482
|
|
|
|
(298,817
|
)
|
|
|
(1,719,117
|
)
|
|
|
(231,034
|
)
|
|
|
-
|
|
170,410,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(*) Financial expenses associated
with external financing for the acquisition of companies, including capital contributions among others, are also presented in
this item.
|
For
the period ended June 30, 2019
|
|
Chile
Operation
|
|
|
Argentina
Operation
|
|
|
Brazil
Operation
|
|
|
Paraguay
Operation
|
|
|
Intercompany
Eliminations
|
|
Consolidated
total
|
|
|
Net
sales
|
|
|
289,633,297
|
|
|
|
193,174,594
|
|
|
|
286,698,840
|
|
|
|
71,895,957
|
|
|
|
(1,222,238
|
)
|
840,180,450
|
|
|
Cost
of sales
|
|
|
(175,119,020
|
)
|
|
|
(104,786,160
|
)
|
|
|
(176,233,594
|
)
|
|
|
(41,757,661
|
)
|
|
|
1,222,238
|
|
(496,674,197
|
)
|
|
Distribution
expenses
|
|
|
(29,077,603
|
)
|
|
|
(26,211,429
|
)
|
|
|
(20,816,556
|
)
|
|
|
(4,080,611
|
)
|
|
|
-
|
|
(80,186,199
|
)
|
|
Administrative
expenses
|
|
|
(59,155,568
|
)
|
|
|
(42,672,920
|
)
|
|
|
(45,679,738
|
)
|
|
|
(11,058,279
|
)
|
|
|
-
|
|
(158,566,505
|
)
|
|
Finance
income
|
|
|
793,006
|
|
|
|
587,921
|
|
|
|
1,398,903
|
|
|
|
131,026
|
|
|
|
-
|
|
2,910,856
|
|
|
Financial
expense
|
|
|
(6,474,998
|
)
|
|
|
(120,040
|
)
|
|
|
(15,724,818
|
)
|
|
|
-
|
|
|
|
-
|
|
(22,319,856
|
)
|
|
Financial
expenses, net (*)
|
|
|
(5,681,992
|
)
|
|
|
467,881
|
|
|
|
(14,325,915
|
)
|
|
|
131,026
|
|
|
|
-
|
|
(19,409,000
|
)
|
|
Share
of entity in income of associates accounted for using the equity method, total
|
|
|
(518,389
|
)
|
|
|
-
|
|
|
|
526,274
|
|
|
|
-
|
|
|
|
-
|
|
7,885
|
|
|
Income
tax expense
|
|
|
(5,514,532
|
)
|
|
|
(1,418,417
|
)
|
|
|
(8,018,269
|
)
|
|
|
(2,799,203
|
)
|
|
|
-
|
|
(17,750,421
|
)
|
|
Other
income(expenses)
|
|
|
(4,816,832
|
)
|
|
|
(1,094,507
|
)
|
|
|
415,274
|
|
|
|
(123,962
|
)
|
|
|
-
|
|
(5,620,027
|
)
|
|
Net
income of the segment reported
|
|
|
9,749,361
|
|
|
|
17,459,042
|
|
|
|
22,566,316
|
|
|
|
12,207,267
|
|
|
|
-
|
|
61,981,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
and amortization
|
|
|
23,010,728
|
|
|
|
11,980,571
|
|
|
|
14,307,664
|
|
|
|
4,596,277
|
|
|
|
-
|
|
53,895,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
184,053,952
|
|
|
|
69,172,630
|
|
|
|
141,324,277
|
|
|
|
30,778,484
|
|
|
|
-
|
|
425,329,343
|
|
|
Non-current
assets
|
|
|
657,776,765
|
|
|
|
169,111,054
|
|
|
|
663,545,990
|
|
|
|
230,588,598
|
|
|
|
-
|
|
1,721,022,407
|
|
|
Segment
assets, total
|
|
|
841,830,717
|
|
|
|
238,283,684
|
|
|
|
804,870,267
|
|
|
|
261,367,082
|
|
|
|
-
|
|
2,146,351,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrying
amount in associates and joint ventures accounted for using the equity method, total
|
|
|
49,237,481
|
|
|
|
|
|
|
|
51,950,215
|
|
|
|
-
|
|
|
|
-
|
|
101,187,696
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
disbursements of non-monetary assets
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
151,073,828
|
|
|
|
54,513,494
|
|
|
|
105,841,776
|
|
|
|
27,755,695
|
|
|
|
-
|
|
339,184,793
|
|
|
Non-current
liabilities
|
|
|
487,601,264
|
|
|
|
15,703,003
|
|
|
|
414,967,231
|
|
|
|
15,227,136
|
|
|
|
-
|
|
933,498,634
|
|
|
Segment
liabilities, total
|
|
|
638,675,092
|
|
|
|
70,216,497
|
|
|
|
520,809,007
|
|
|
|
42,982,831
|
|
|
|
-
|
|
1,272,683,427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
flows (used in) provided by in Operating Activities
|
|
|
41,910,504
|
|
|
|
14,380,529
|
|
|
|
26,701,745
|
|
|
|
5,741,258
|
|
|
|
-
|
|
88,734,036
|
|
|
Cash
flows (used in) provided by Investing Activities
|
|
|
(30,432,470
|
)
|
|
|
(12,843,664
|
)
|
|
|
(8,031,659
|
)
|
|
|
(6,008,599
|
)
|
|
|
-
|
|
(57,316,392
|
)
|
|
Cash
flows (used in) provided by Financing Activities
|
|
|
(45,522,143
|
)
|
|
|
(264,641
|
)
|
|
|
(4,338,417
|
)
|
|
|
(127,636
|
)
|
|
|
|
|
(50,252,837
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
|
|
(*)
|
Financial expenses associated with external financing
for the acquisition of companies, including capital contributions among others, are also presented in this item.
|
4 – CASH AND CASH EQUIVALENTS
The composition of Cash and
cash equivalents is as follows:
|
By item
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Cash
|
|
|
259,492
|
|
|
|
2,331,714
|
|
|
Bank balances
|
|
|
59,501,012
|
|
|
|
51,176,617
|
|
|
Other fixed rate instruments
|
|
|
311,344,745
|
|
|
|
104,059,655
|
|
|
Total cash and cash
equivalents
|
|
|
371,105,249
|
|
|
|
157,567,986
|
|
Time deposits expire in less
than three months from their acquisition date and accrue market interest for this type of short-term investment. Other fixed-income
instruments mainly correspond to purchase transactions with the resale of debt instruments with a maturity of less than 90 days,
from the date of investment. There are no restrictions for significant amounts available to cash.
|
By currency
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
USD
|
|
|
19,103,837
|
|
|
|
16,733,249
|
|
|
EUR
|
|
|
361,657
|
|
|
|
9,722
|
|
|
ARS
|
|
|
860,791
|
|
|
|
3,830,199
|
|
|
CLP
|
|
|
267,179,349
|
|
|
|
78,420,966
|
|
|
PGY
|
|
|
26,914,266
|
|
|
|
12,383,873
|
|
|
BRL
|
|
|
56,685,349
|
|
|
|
46,189,977
|
|
|
Cash and cash equivalents
|
|
|
371,105,249
|
|
|
|
157,567,986
|
|
5 – OTHER CURRENT
AND NON-CURRENT FINANCIAL ASSETS
The composition of
other financial assets is as follows:
|
|
|
Balance
|
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Other financial assets
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Financial assets measured at amortized cost (1)
|
|
|
11,103
|
|
|
|
30,073
|
|
|
|
1,216,865
|
|
|
|
1,216,865
|
|
|
Financial assets at fair value (2)
|
|
|
1,416,422
|
|
|
|
317,205
|
|
|
|
166,910,595
|
|
|
|
98,918,457
|
|
|
Other financial assets measured at amortized cost (3)
|
|
|
-
|
|
|
|
-
|
|
|
|
11,293,694
|
|
|
|
10,648,989
|
|
|
Total
|
|
|
1,427,525
|
|
|
|
347,278
|
|
|
|
179,421,154
|
|
|
|
110,784,311
|
|
|
|
(1)
|
Financial instrument that does not
meet the definition of cash equivalents as defined in Note 2.13.
|
|
|
(2)
|
Market value of
hedging instrument. See detail in Note 22
|
|
|
(3)
|
Correspond to
the rights in the Argentinean company Alimentos de Soya S.A., which are framed in the
purchase of the "AdeS" brand managed by The Coca-Cola Company at the end of
2016.
|
6 – OTHER CURRENT AND NON-CURRENT NON-FINANCIAL ASSETS
The composition of other non-financial assets is as follows:
|
|
|
Balance
|
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Other non-financial assets
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Prepaid expenses
|
|
|
11,605,476
|
|
|
|
11,242,456
|
|
|
|
417,441
|
|
|
|
595,045
|
|
|
Tax credit remainder (1)
|
|
|
1,324,063
|
|
|
|
180,695
|
|
|
|
77,778,162
|
|
|
|
103,540,639
|
|
|
Guaranty deposit
|
|
|
16,323
|
|
|
|
422
|
|
|
|
-
|
|
|
|
-
|
|
|
Deposit in courts
|
|
|
-
|
|
|
|
-
|
|
|
|
16,125,823
|
|
|
|
19,226,030
|
|
|
Others (2)
|
|
|
18,818,578
|
|
|
|
4,765,392
|
|
|
|
2,275,170
|
|
|
|
2,274,436
|
|
|
Total
|
|
|
31,764,440
|
|
|
|
16,188,965
|
|
|
|
96,596,596
|
|
|
|
125,636,150
|
|
(1) In November 2006, Rio de Janeiro Refrescos
Ltda. ("RJR") filed a court order No. 0021799-23.2006.4.02.5101 seeking recognition of the right to exclude ICMS (Tax
on Commerce and Services) from the PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security)
calculation base, as well as recognition of the right to obtain reimbursement of amounts unduly collected since November 14, 2001,
duly restated using the Selic interest rate. On May 20, 2019, the ruling favoring RJR became final, allowing the recovery of amounts
overpaid from November 14, 2001 to August 2017. It is worth noting that in September 2017, RJR had already obtained a Security
Mandate, which granted it the right to exclude, from that date, the ICMS from the PIS and COFINS calculation base.
The company took steps to assess the total
amount of the credit at issue for the period of unduly collection of taxes from November 2001 to August 2017, totaling CLP 103,540
million (BRL 567 million, of which BRL 357 million corresponds to capital and BRL 210 million to interest and monetary restatement.
These amounts were recorded as of December 31, 2019. In addition, the company acknowledged the indirect costs (attorneys' fees,
consulting, auditing, indirect taxes and other obligations) resulting from the recognition of the right acquired in court, totaling
BRL 161 million.
The payment of income tax occurs when
liquidating the credit, thus the respective deferred tax liability recorded was CLP 25,200 million (BRL 138 million).
Compañía de Bebidas Ipiranga
("CBI") acquired in September 2013, also filed a court order No. 0014022-71.2000.4.03.6102 in order to recognize the
same issue as the one previously described for RJR. In September 2019, the ruling favoring CBI became final, allowing the recovery
of the amounts overpaid from September 12, 1990 to December 1, 2013 (date when CBI was incorporated by RJR). CBI's credit will
be generated in the name of RJR, however, pursuant to the contractual clause ("Subscription Agreement for Shares and Exhibits"),
as soon as collected by RJR, this payment should be immediately paid to former CBI shareholders (supervention favoring former
CBI shareholders).
In addition, RJR has an associate called
Sorocaba Refrescos SA ("Sorocaba"), where it has a 40% shareholding in the capital, which also filed a court order seeking
recognition of the right to the same issue as RJR's action. On June 13, 2019, the ruling favoring Sorocaba became final, allowing
the recovery of the amounts overpaid from July 5, 1992 until the date on which the decision became final. As of June 30, 2020
the impacts were recognized under RJR’s results derived from its participation in Sorocaba.
Based on the information available for the CBI lawsuits, the
Company concluded that there was not enough documentary support to say that the credit is almost certain for the tax authorities
and therefore, did not record the respective asset in the booking accounts.
(2) Other non-financial
assets are mainly composed of advances to suppliers
7 – TRADE AND OTHER
RECEIVABLES
The composition of trade and other receivables is as follows:
|
|
|
Balance
|
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Trade debtors and other accounts
receivable, Net
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
Trade debtors
|
|
|
81,911,306
|
|
|
|
150,509,528
|
|
|
|
-
|
|
|
|
-
|
|
|
Other debtors
|
|
|
43,704,370
|
|
|
|
39,620,246
|
|
|
|
6,687
|
|
|
|
466,007
|
|
|
Other accounts receivable
|
|
|
1,651,120
|
|
|
|
947,814
|
|
|
|
56,751
|
|
|
|
57,762
|
|
|
Total
|
|
|
127,266,796
|
|
|
|
191,077,588
|
|
|
|
63,438
|
|
|
|
523,769
|
|
|
|
|
Balance
|
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Trade debtors and other accounts receivable,
Gross
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
Trade debtors
|
|
|
87,183,154
|
|
|
|
153,654,549
|
|
|
|
-
|
|
|
|
-
|
|
|
Other debtors
|
|
|
46,719,200
|
|
|
|
42,719,679
|
|
|
|
6,687
|
|
|
|
466,007
|
|
|
Other accounts receivable
|
|
|
1,905,471
|
|
|
|
1,196,347
|
|
|
|
56,751
|
|
|
|
57,762
|
|
|
Total
|
|
|
135,807,825
|
|
|
|
197,570,575
|
|
|
|
63,438
|
|
|
|
523,769
|
|
The stratification of the portfolio is as follows:
|
|
|
Balance
|
|
|
Current trade debtors
without impairment impact
|
|
06.30.2020
CLP (000’s)
|
|
|
12.31.2019
CLP (000’s)
|
|
|
Less than one month
|
|
|
76,923,722
|
|
|
|
148,150,717
|
|
|
Between one and three months
|
|
|
3,440,353
|
|
|
|
1,872,144
|
|
|
Between three and six months
|
|
|
3,564,882
|
|
|
|
838,277
|
|
|
Between six and eight months
|
|
|
402,603
|
|
|
|
482,596
|
|
|
Older than eight months
|
|
|
2,851,594
|
|
|
|
2,310,815
|
|
|
Total
|
|
|
87,183,154
|
|
|
|
153,654,549
|
|
The Company has approximately 266,000 clients, which may have
balances in the different sections of the stratification. The number of clients is distributed geographically with 64,000 in Chile,
85,000 in Brazil, 59,000 in Argentina and 58,000 in Paraguay.
The movement in the allowance for expected credit losses is
presented below:
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Opening balance
|
|
|
6,492,987
|
|
|
|
6,298,208
|
|
|
Increase (decrease)
|
|
|
2,436,053
|
|
|
|
1,762,246
|
|
|
Provision reversal
|
|
|
(375,969
|
)
|
|
|
(1,184,953
|
)
|
|
Increases (decrease) for changes
of foreign currency
|
|
|
(12,042
|
)
|
|
|
(382,514
|
)
|
|
Sub –
total movements
|
|
|
2,048,042
|
|
|
|
194,779
|
|
|
Ending balance
|
|
|
8,541,029
|
|
|
|
6,492,987
|
|
8 – INVENTORIES
The composition of inventories
is detailed as follows:
|
Details
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Raw materials (1)
|
|
|
84,972,683
|
|
|
|
93,524,911
|
|
|
Finished goods
|
|
|
23,588,864
|
|
|
|
32,337,670
|
|
|
Spare parts and supplies
|
|
|
22,319,887
|
|
|
|
20,769,626
|
|
|
Work in progress
|
|
|
133,719
|
|
|
|
567,973
|
|
|
Other inventories
|
|
|
4,538,134
|
|
|
|
3,625,488
|
|
|
Obsolescence provision (2)
|
|
|
(2,697,445
|
)
|
|
|
(3,184,444
|
)
|
|
Total
|
|
|
132,855,842
|
|
|
|
147,641,224
|
|
The cost of inventory is recognized
as cost of sales which amounts to CLP 485,931,100 thousand and CLP 496,674,197 thousand as of June 30, 2020 and 2019, respectively.
|
|
(1)
|
Approximately
80% is composed of concentrate and sweeteners used in the preparation of beverages, as
well as caps and PET supplies used in the packaging of the product.
|
|
|
(2)
|
The
obsolescence provision is related mainly with the obsolescence of spare parts classified
as inventories and to a lesser extent to finished products and raw materials. The general
standard is to provision all those multi-functional spare parts without utility in rotation
in the last four years prior to the technical analysis technical to adjust the provision.
In the case of raw materials and finished products, the obsolescence provision is determined
according to maturity.
|
9 – TAX ASSETS AND LIABILITIES
The composition of current tax
accounts receivable is the following:
|
Tax assets
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Tax credits
(1)
|
|
|
5,161,640
|
|
|
|
9,815,294
|
|
|
Total
|
|
|
5,161,640
|
|
|
|
9,815,294
|
|
(1) Tax credits correspond to
income tax credits on training expenses, purchase of Property, plant and equipment, and donations.
The
composition of current tax accounts payable is the following:
|
Tax liabilities
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Income tax
expense
|
|
|
1,826,682
|
|
|
|
6,762,267
|
|
|
Total
|
|
|
1,826,682
|
|
|
|
6,762,267
|
|
10 – INCOME TAX EXPENSE AND DEFERRED TAXES
10.1 Income tax expense
The current and deferred income
tax expenses are detailed as follows:
|
Details
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Current income tax expense
|
|
|
17,214,103
|
|
|
|
17,402,081
|
|
|
Current tax adjustment previous period
|
|
|
(647,743
|
)
|
|
|
195,747
|
|
|
Foreign dividends withholding expense
|
|
|
2,079,416
|
|
|
|
1,661,607
|
|
|
Other current tax expense (income)
|
|
|
(681,569
|
)
|
|
|
(209,530
|
)
|
|
Current income
tax expense
|
|
|
17,964,207
|
|
|
|
19,049,905
|
|
|
Expense (income) for
the creation and reversal of temporary differences of deferred tax and others
|
|
|
(8,536,856
|
)
|
|
|
(1,299,484
|
)
|
|
Expense (income)
for deferred taxes
|
|
|
(8,536,856
|
)
|
|
|
(1,299,484
|
)
|
|
Total income tax expense
|
|
|
9,427,351
|
|
|
|
17,750,421
|
|
The distribution of national
and foreign tax expenditure is as follows:
|
Income taxes
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Current taxes
|
|
|
|
|
|
|
|
|
|
Foreign
|
|
|
(16,123,000
|
)
|
|
|
(10,937,042
|
)
|
|
National
|
|
|
(1,841,207
|
)
|
|
|
(8,112,863
|
)
|
|
Current tax
expense
|
|
|
(17,964,207
|
)
|
|
|
(19,049,905
|
)
|
|
Deferred taxes
|
|
|
|
|
|
|
|
|
|
Foreign
|
|
|
5,070,588
|
|
|
|
(1,298,846
|
)
|
|
National
|
|
|
3,466,268
|
|
|
|
2,598,330
|
|
|
Deferred tax
expense
|
|
|
8,536,856
|
|
|
|
1,299,484
|
|
|
Income tax expense
|
|
|
(9,427,351
|
)
|
|
|
(17,750,421
|
)
|
The reconciliation of the tax expense using the statutory rate
with the tax expense using the effective rate is as follows:
|
Reconciliation of effective
rate
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Net
income before taxes
|
|
|
58,499,751
|
|
|
|
79,732,407
|
|
|
Tax expense
at legal rate (27.0%)
|
|
|
(15,794,933
|
)
|
|
|
(21,527,750
|
)
|
|
Effect of a
different tax rate in other jurisdictions
|
|
|
1,182,571
|
|
|
|
(233,863
|
)
|
|
Permanent differences:
|
|
|
|
|
|
|
|
|
|
Non-taxable revenues
|
|
|
1,113,420
|
|
|
|
4,042,581
|
|
|
Non-deductible expenses
|
|
|
(4,690,947
|
)
|
|
|
(869,676
|
)
|
|
Foreign subsidiaries tax withholding
expense and other legal tax debits and credits
|
|
|
8,762,538
|
|
|
|
838,287
|
|
|
Adjustments
to tax expense
|
|
|
5,185,011
|
|
|
|
4,011,192
|
|
|
Tax expense
at effective rate
|
|
|
(9,427,351
|
)
|
|
|
(17,750,421
|
)
|
|
Effective rate
|
|
|
16.1
|
%,
|
|
|
22.3
|
%,
|
The applicable income tax rates
in each of the jurisdictions where the Company operates are the following:
|
|
|
Rate
|
|
|
Country
|
|
2020
|
|
|
2019
|
|
|
Chile
|
|
|
27.0
|
%
|
|
|
27.0
|
%
|
|
Brazil
|
|
|
34.0
|
%
|
|
|
34.0
|
%
|
|
Argentina
|
|
|
30.0
|
%
|
|
|
30.0
|
%
|
|
Paraguay
|
|
|
10.0
|
%
|
|
|
10.0
|
%
|
10.2 Deferred income
taxes
The
net cumulative balances of temporary differences that give rise to deferred tax assets and liabilities are detailed as follows:
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
Temporary differences
|
|
Assets
|
|
|
Liabilities
|
|
|
Assets
|
|
|
Liabilities
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Property, plant and equipment
|
|
|
5,609,380
|
|
|
|
47,501,644
|
|
|
|
5,445,810
|
|
|
|
51,414,971
|
|
|
Obsolescence provision
|
|
|
1,305,540
|
|
|
|
-
|
|
|
|
1,588,563
|
|
|
|
-
|
|
|
ICMS exclusion credit
|
|
|
-
|
|
|
|
20,540,839
|
|
|
|
-
|
|
|
|
25,651,794
|
|
|
Employee benefits
|
|
|
1,855,239
|
|
|
|
7,723
|
|
|
|
5,418,561
|
|
|
|
12,157
|
|
|
Post-employment benefits
|
|
|
144,382
|
|
|
|
792,198
|
|
|
|
148,853
|
|
|
|
787,576
|
|
|
Tax loss carry forwards (1)
|
|
|
14,941,563
|
|
|
|
-
|
|
|
|
7,607,813
|
|
|
|
-
|
|
|
Tax goodwill Brazil
|
|
|
4,977,285
|
|
|
|
-
|
|
|
|
10,341,033
|
|
|
|
-
|
|
|
Contingency provision
|
|
|
27,705,553
|
|
|
|
-
|
|
|
|
34,109,458
|
|
|
|
-
|
|
|
Foreign Exchange differences (2)
|
|
|
13,058,830
|
|
|
|
-
|
|
|
|
9,284,450
|
|
|
|
-
|
|
|
Allowance for doubtful accounts
|
|
|
911,857
|
|
|
|
-
|
|
|
|
756,895
|
|
|
|
-
|
|
|
Assets and liabilities for placement of bonds
|
|
|
387,163
|
|
|
|
2,675,159
|
|
|
|
390,163
|
|
|
|
1,187,649
|
|
|
Lease liabilities
|
|
|
1,725,404
|
|
|
|
-
|
|
|
|
2,242,439
|
|
|
|
-
|
|
|
Inventories
|
|
|
891,940
|
|
|
|
-
|
|
|
|
447,192
|
|
|
|
-
|
|
|
Distribution rights
|
|
|
-
|
|
|
|
150,449,075
|
|
|
|
-
|
|
|
|
163,107,412
|
|
|
Hedging derivatives
|
|
|
27,858,227
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Others
|
|
|
4,489,809
|
|
|
|
7,929,572
|
|
|
|
-
|
|
|
|
3,705,078
|
|
|
Subtotal
|
|
|
105,862,172
|
|
|
|
229,896,210
|
|
|
|
77,781,230
|
|
|
|
245,866,637
|
|
|
Total assets and
liabilities net
|
|
|
1,979,386
|
|
|
|
126,013,424
|
|
|
|
1,364,340
|
|
|
|
169,449,747
|
|
|
|
(1)
|
Tax losses
mainly associated with the subsidiary Embotelladora Andina Chile S.A. Tax losses have
no expiration date in Chile
|
|
|
(2)
|
Corresponds
to differed taxes for exchange rate differences generated on the translation of debt
expressed in foreign currency in the subsidiary Rio de Janeiro Refrescos Ltda. and which
for tax purposes are recognized in Brazil then incurred.
|
The
movement in deferred income tax accounts is as follows:
|
Movement
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Opening Balance
|
|
|
168,085,407
|
|
|
|
145,245,948
|
|
|
Increase (decrease) in deferred tax
|
|
|
(8,536,856
|
)
|
|
|
20,905,005
|
|
|
Increase (decrease) due to foreign currency
translation (*)
|
|
|
(35,514,513
|
)
|
|
|
1,934,454
|
|
|
Total movements
|
|
|
(44,051,369
|
)
|
|
|
22,839,459
|
|
|
Ending balance
|
|
|
124,034,038
|
|
|
|
168,085,407
|
|
|
|
(*)
|
Includes IAS 29 effect, due to inflation in Argentina
|
11 – PROPERTY, PLANT
AND EQUIPMENT
Property, plant and equipment are detailed below
at the end of each period:
|
Property, plant and equipment, gross
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Construction in progress
|
|
|
29,570,755
|
|
|
|
27,290,581
|
|
|
Land
|
|
|
98,725,872
|
|
|
|
104,196,754
|
|
|
Buildings
|
|
|
281,007,212
|
|
|
|
299,282,674
|
|
|
Plant and equipment
|
|
|
557,384,001
|
|
|
|
571,154,695
|
|
|
Information technology equipment
|
|
|
23,951,622
|
|
|
|
23,912,963
|
|
|
Fixed installations and accessories
|
|
|
47,838,413
|
|
|
|
46,062,659
|
|
|
Vehicles
|
|
|
47,651,213
|
|
|
|
55,128,493
|
|
|
Leasehold improvements
|
|
|
172,440
|
|
|
|
214,886
|
|
|
Rights of use (1)
|
|
|
38,261,309
|
|
|
|
40,498,400
|
|
|
Other properties, plant and equipment (2)
|
|
|
427,258,698
|
|
|
|
452,600,945
|
|
|
Total Property, plant and equipment, gross
|
|
|
1,551,821,535
|
|
|
|
1,620,343,050
|
|
|
Accumulated
depreciation of
Property,
plant and equipment
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Buildings
|
|
|
(87,241,283
|
)
|
|
|
(87,308,899
|
)
|
|
Plant and equipment
|
|
|
(390,852,111
|
)
|
|
|
(385,801,471
|
)
|
|
Information technology equipment
|
|
|
(19,589,645
|
)
|
|
|
(18,911,118
|
)
|
|
Fixed installations and accessories
|
|
|
(28,600,085
|
)
|
|
|
(26,219,378
|
)
|
|
Vehicles
|
|
|
(29,766,069
|
)
|
|
|
(33,167,346
|
)
|
|
Leasehold improvements
|
|
|
(148,087
|
)
|
|
|
(144,865
|
)
|
|
Rights of use (1)
|
|
|
(12,944,451
|
)
|
|
|
(8,254,568
|
)
|
|
Other properties, plant and equipment (2)
|
|
|
(317,601,182
|
)
|
|
|
(337,816,542
|
)
|
|
Total accumulated depreciation
|
|
|
(886,742,913
|
)
|
|
|
(897,624,187
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Property, plant and equipment, net
|
|
|
665,078,622
|
|
|
|
722,718,863
|
|
(1) For adoption of IFRS 16. See details of underlying
assets in Note 11.1
(2) The net balance of each of these categories
is presented below:
|
Other Property, plant and equipment, net
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Bottles
|
|
|
42,340,665
|
|
|
|
44,071,742
|
|
|
Marketing and promotional assets
|
|
|
53,123,789
|
|
|
|
57,442,154
|
|
|
Other Property, plant and equipment
|
|
|
14,193,062
|
|
|
|
13,270,507
|
|
|
Total
|
|
|
109,657,516
|
|
|
|
114,784,403
|
|
11.1 Movements
Movements in Property, plant and equipment are detailed as
follows:
|
|
|
Construction
in progress
|
|
|
Land
|
|
|
Buildings,
net
|
|
|
Plant
and
equipment,
net
|
|
|
IT
equipment,
net
|
|
|
Fixed
facilities and
accessories,
net
|
|
|
Vehicles,
net
|
|
|
Leasehold
improvements,
net
|
|
|
Others
|
|
|
Right-of-use,
net
|
|
|
Property,
plant &
equipment,
net
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Opening balance at January 1, 2020
|
|
|
27,290,581
|
|
|
|
104,196,754
|
|
|
|
211,973,775
|
|
|
|
185,353,224
|
|
|
|
5,001,845
|
|
|
|
19,843,281
|
|
|
|
21,961,147
|
|
|
|
70,021
|
|
|
|
114,784,403
|
|
|
|
32,243,832
|
|
|
|
722,718,863
|
|
|
Additions
|
|
|
14,003,091
|
|
|
|
-
|
|
|
|
142,735
|
|
|
|
3,592,055
|
|
|
|
18,642
|
|
|
|
-
|
|
|
|
237,733
|
|
|
|
-
|
|
|
|
18,503,407
|
|
|
|
-
|
|
|
|
36,497,663
|
|
|
Additions right-of-use (1)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
446,323
|
|
|
|
446,323
|
|
|
Divestitures
|
|
|
-
|
|
|
|
-
|
|
|
|
(625
|
)
|
|
|
(14,783
|
)
|
|
|
(990
|
)
|
|
|
-
|
|
|
|
(13,086
|
)
|
|
|
-
|
|
|
|
(2,821,179
|
)
|
|
|
-
|
|
|
|
(2,850,663
|
)
|
|
Transfers between items of Property, plant and equipment
|
|
|
(10,039,844
|
)
|
|
|
-
|
|
|
|
1,036,171
|
|
|
|
3,123,298
|
|
|
|
191,870
|
|
|
|
477,793
|
|
|
|
579,043
|
|
|
|
-
|
|
|
|
4,631,669
|
|
|
|
-
|
|
|
|
-
|
|
|
Right-of-use transfers
|
|
|
(135,054
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
135,054
|
|
|
|
-
|
|
|
Depreciation expense
|
|
|
-
|
|
|
|
-
|
|
|
|
(3,989,131
|
)
|
|
|
(18,167,597
|
)
|
|
|
(1,042,400
|
)
|
|
|
(1,581,820
|
)
|
|
|
(2,931,382
|
)
|
|
|
(37,808
|
)
|
|
|
(20,761,501
|
)
|
|
|
-
|
|
|
|
(48,511,639
|
)
|
|
Amortization
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(4,197,730
|
)
|
|
|
(4,197,730
|
)
|
|
Increase (decrease) to due foreign currency translation
differences
|
|
|
(161,003
|
)
|
|
|
(5,532,110
|
)
|
|
|
(16,307,098
|
)
|
|
|
(6,173,262
|
)
|
|
|
(253,259
|
)
|
|
|
455,853
|
|
|
|
(1,949,697
|
)
|
|
|
(7,863
|
)
|
|
|
(3,456,531
|
)
|
|
|
(3,303,538
|
)
|
|
|
(36,688,508
|
)
|
|
Other increases (decreases) (2)
|
|
|
(1,387,016
|
)
|
|
|
61,228
|
|
|
|
910,102
|
|
|
|
(1,181,045
|
)
|
|
|
446,269
|
|
|
|
43,221
|
|
|
|
1,386
|
|
|
|
3
|
|
|
|
(1,222,752
|
)
|
|
|
(7,083
|
)
|
|
|
(2,335,687
|
)
|
|
Total movements
|
|
|
2,280,174
|
|
|
|
(5,470,882
|
)
|
|
|
(18,207,846
|
)
|
|
|
(18,821,334
|
)
|
|
|
(639,868
|
)
|
|
|
(604,953
|
)
|
|
|
(4,076,003
|
)
|
|
|
(45,668
|
)
|
|
|
(5,126,887
|
)
|
|
|
(6,926,974
|
)
|
|
|
(57,640,241
|
)
|
|
Ending balance al 06.30.2020
|
|
|
29,570,755
|
|
|
|
98,725,872
|
|
|
|
193,765,929
|
|
|
|
166,531,890
|
|
|
|
4,361,977
|
|
|
|
19,238,328
|
|
|
|
17,885,144
|
|
|
|
24,353
|
|
|
|
109,657,516
|
|
|
|
25,316,858
|
|
|
|
665,078,622
|
|
|
|
(1)
|
For IFRS 16 adoption. See detail of underlying assets in
Note 11.1
|
|
|
(2)
|
Corresponds mainly to the effect of adopting IAS 29 in Argentina
|
Right of use assets as of
June 30, 2020 is composed as follows:
|
Right-of-use
|
|
Gross asset
|
|
|
Accumulated
depreciation
|
|
|
Net asset
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Constructions
|
|
|
1,448,816
|
|
|
|
(467,320
|
)
|
|
|
981,496
|
|
|
Plant and Equipment
|
|
|
27,100,252
|
|
|
|
(8,051,782
|
)
|
|
|
19,048,470
|
|
|
IT Equipment
|
|
|
240,701
|
|
|
|
(96,997
|
)
|
|
|
143,704
|
|
|
Motor vehicles
|
|
|
4,805,754
|
|
|
|
(2,549,082
|
)
|
|
|
2,256,672
|
|
|
Others
|
|
|
4,665,786
|
|
|
|
(1,779,270
|
)
|
|
|
2,886,516
|
|
|
Total
|
|
|
38,261,309
|
|
|
|
(12,944,451
|
)
|
|
|
25,316,858
|
|
Lease liabilities interest expense at
the closing of the period reached CLP 982,884 thousand
|
|
|
Construction
in progress
|
|
|
Land
|
|
|
Buildings,
net
|
|
|
Plant
and
equipment,
net
|
|
|
IT
equipment,
net
|
|
|
Fixed
facilities and
accessories,
net
|
|
|
Vehicles,
net
|
|
|
Leasehold
improvements,
net
|
|
|
Others
|
|
|
Right-of-use,
net
|
|
|
Property,
plant &
equipment,
net
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Opening balance at January 1, 2019
|
|
|
26,048,670
|
|
|
|
100,479,196
|
|
|
|
214,160,351
|
|
|
|
207,403,985
|
|
|
|
5,184,721
|
|
|
|
21,057,169
|
|
|
|
21,798,601
|
|
|
|
32,177
|
|
|
|
114,606,098
|
|
|
|
-
|
|
|
|
710,770,968
|
|
|
Additions
|
|
|
49,134,461
|
|
|
|
-
|
|
|
|
749,800
|
|
|
|
11,582,259
|
|
|
|
675,974
|
|
|
|
7,271
|
|
|
|
(342,001
|
)
|
|
|
1,309
|
|
|
|
32,640,210
|
|
|
|
-
|
|
|
|
94,449,283
|
|
|
Additions right-of-use (1)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
21,721,728
|
|
|
|
21,721,728
|
|
|
Divestitures
|
|
|
(8,761
|
)
|
|
|
-
|
|
|
|
(5,902
|
)
|
|
|
(352,204
|
)
|
|
|
(977
|
)
|
|
|
(8,911
|
)
|
|
|
(52,095
|
)
|
|
|
(155
|
)
|
|
|
(1,135,304
|
)
|
|
|
-
|
|
|
|
(1,564,309
|
)
|
|
Transfers between items of property, plant and equipment
|
|
|
(48,358,902
|
)
|
|
|
2,268,316
|
|
|
|
430,971
|
|
|
|
20,735,065
|
|
|
|
1,019,048
|
|
|
|
1,379,012
|
|
|
|
7,650,847
|
|
|
|
65,250
|
|
|
|
14,810,393
|
|
|
|
-
|
|
|
|
-
|
|
|
Right-of-use transfers (1)
|
|
|
(25,991
|
)
|
|
|
-
|
|
|
|
(266,007
|
)
|
|
|
(13,788,120
|
)
|
|
|
(23,712
|
)
|
|
|
-
|
|
|
|
(1,181,465
|
)
|
|
|
-
|
|
|
|
(2,520,405
|
)
|
|
|
17,805,700
|
|
|
|
-
|
|
|
Depreciation expense
|
|
|
-
|
|
|
|
-
|
|
|
|
(7,681,481
|
)
|
|
|
(37,572,910
|
)
|
|
|
(1,949,851
|
)
|
|
|
(2,977,512
|
)
|
|
|
(6,267,039
|
)
|
|
|
(30,737
|
)
|
|
|
(42,410,016
|
)
|
|
|
|
|
|
|
(98,889,546
|
)
|
|
Amortization (2)
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(8,254,568
|
)
|
|
|
(8,254,568
|
)
|
|
Increase (decrease) to due foreign currency translation
differences
|
|
|
688,063
|
|
|
|
1,529,526
|
|
|
|
4,685,319
|
|
|
|
3,228,519
|
|
|
|
83,757
|
|
|
|
386,253
|
|
|
|
464,563
|
|
|
|
2,177
|
|
|
|
2,216,555
|
|
|
|
1,024,539
|
|
|
|
14,309,271
|
|
|
Other increase (decrease) (3)
|
|
|
(186,959
|
)
|
|
|
(80,284
|
)
|
|
|
(99,276
|
)
|
|
|
(5,883,370
|
)
|
|
|
12,885
|
|
|
|
(1
|
)
|
|
|
(110,264
|
)
|
|
|
-
|
|
|
|
(3,423,128
|
)
|
|
|
(53,567
|
)
|
|
|
(9,823,964
|
)
|
|
Total movements
|
|
|
1,241,911
|
|
|
|
3,717,558
|
|
|
|
(2,186,576
|
)
|
|
|
(22,050,761
|
)
|
|
|
(182,876
|
)
|
|
|
(1,213,888
|
)
|
|
|
162,546
|
|
|
|
37,844
|
|
|
|
178,305
|
|
|
|
32,243,832
|
|
|
|
11,947,895
|
|
|
Ending balance at 12.31.2019
|
|
|
27,290,581
|
|
|
|
104,196,754
|
|
|
|
211,973,775
|
|
|
|
185,353,224
|
|
|
|
5,001,845
|
|
|
|
19,843,281
|
|
|
|
21,961,147
|
|
|
|
70,021
|
|
|
|
114,784,403
|
|
|
|
32,243,832
|
|
|
|
722,718,863
|
|
|
|
(1)
|
By adoption
of IFRS 16.
|
|
|
(2)
|
Of the total of CLP 8,254,468 thousand recorded as amortization for the current period, CLP 5,994,037
thousand correspond to right-of-use amortization arising from the adoption of the IFRS, effective beginning
on January 1, 2019. The remaining CLP 2,260,531 thousand correspond to depreciation (today amortization)
of goods acquired under the financial lease method, which until December 31, 2018 were classified and valued
pursuant to the accounting criteria of Property, plant and equipment.
|
|
|
(3)
|
Mainly correspond to the effects of adopting IAS
29 in Argentina.
|
12 – RELATED PARTIES
Balances and main transactions with related parties
are detailed as follows:
12.1 Accounts
receivable:
|
|
|
|
|
|
|
|
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
Tax ID No.
|
|
Company
|
|
Relationship
|
|
Country
|
|
Currency
|
|
Current
|
|
|
Non-Current
|
|
|
Current
|
|
|
Non-Current
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
96.891.720-K
|
|
Embonor S.A.
|
|
Shareholder related
|
|
Chile
|
|
CLP
|
|
|
1,729,915
|
|
|
|
-
|
|
|
|
6,589,539
|
|
|
|
-
|
|
|
96.714.870-9
|
|
Coca-Cola de Chile S.A.
|
|
Shareholder
|
|
Chile
|
|
CLP
|
|
|
14,839
|
|
|
|
166,752
|
|
|
|
14,839
|
|
|
|
283,118
|
|
|
Foreign
|
|
Coca-Cola de Argentina
|
|
Director related
|
|
Argentina
|
|
ARS
|
|
|
3,170,082
|
|
|
|
-
|
|
|
|
1,203,389
|
|
|
|
-
|
|
|
Foreign
|
|
Alimentos de Soja S.A.U.
|
|
Shareholder related
|
|
Argentina
|
|
ARS
|
|
|
351,964
|
|
|
|
-
|
|
|
|
428,802
|
|
|
|
-
|
|
|
96.517.210-2
|
|
Embotelladora Iquique S.A.
|
|
Shareholder related
|
|
Chile
|
|
CLP
|
|
|
68,940
|
|
|
|
-
|
|
|
|
278,176
|
|
|
|
-
|
|
|
86.881.400-4
|
|
Envases CMF S.A.
|
|
Associate
|
|
Chile
|
|
CLP
|
|
|
11
|
|
|
|
-
|
|
|
|
217,510
|
|
|
|
-
|
|
|
96.919.980-7
|
|
Cervecería Austral S.A.
|
|
Director related
|
|
Chile
|
|
USD
|
|
|
38,827
|
|
|
|
-
|
|
|
|
45,644
|
|
|
|
-
|
|
|
77.755.610-K
|
|
Comercial Patagona Ltda.
|
|
Director related
|
|
Chile
|
|
CLP
|
|
|
3,459
|
|
|
|
-
|
|
|
|
3,872
|
|
|
|
-
|
|
|
77.526.480-2
|
|
Comercializadora Nova Verde
|
|
Common shareholder
|
|
Chile
|
|
CLP
|
|
|
160,743
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
76.572.588-7
|
|
Coca-Cola del Valle New Ventures S.A.
|
|
Associate
|
|
Chile
|
|
CLP
|
|
|
1,655,637
|
|
|
|
-
|
|
|
|
2,003,203
|
|
|
|
-
|
|
|
76.140.057-6
|
|
Monster
|
|
Associate
|
|
Chile
|
|
CLP
|
|
|
62,964
|
|
|
|
-
|
|
|
|
50,794
|
|
|
|
-
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
7,257,381
|
|
|
|
166,752
|
|
|
|
10,835,768
|
|
|
|
283,118
|
|
12.2 Accounts
payable:
|
|
|
|
|
|
|
|
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
Tax ID No.
|
|
Company
|
|
Relationship
|
|
Country
|
|
Currency
|
|
Current
|
|
|
Non-Current
|
|
|
Current
|
|
|
Non-Current
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
96.714.870-9
|
|
Coca-Cola de Chile S.A.
|
|
Shareholder
|
|
Chile
|
|
CLP
|
|
|
12,945,836
|
|
|
|
-
|
|
|
|
20,555,135
|
|
|
|
-
|
|
|
Foreign
|
|
Recofarma do Indústrias Amazonas Ltda.
|
|
Shareholder related
|
|
Brazil
|
|
BRL
|
|
|
11,670,173
|
|
|
|
17,510,694
|
|
|
|
14,888,934
|
|
|
|
19,777,812
|
|
|
86.881.400-4
|
|
Envases CMF S.A.
|
|
Associate
|
|
Chile
|
|
CLP
|
|
|
3,229,252
|
|
|
|
-
|
|
|
|
6,359,797
|
|
|
|
-
|
|
|
Foreign
|
|
Ser. y Prod. para Bebidas Refrescantes S.R.L.
|
|
Shareholder
|
|
Argentina
|
|
ARS
|
|
|
6,908,365
|
|
|
|
-
|
|
|
|
5,887,070
|
|
|
|
-
|
|
|
Foreign
|
|
Leão Alimentos e Bebidas Ltda.
|
|
Associate
|
|
Brazil
|
|
BRL
|
|
|
464,187
|
|
|
|
-
|
|
|
|
1,841,377
|
|
|
|
-
|
|
|
Foreign
|
|
Monster Energy Brasil Com de Bebidas Ltda.
|
|
Shareholder related
|
|
Brazil
|
|
BRL
|
|
|
252,758
|
|
|
|
-
|
|
|
|
827,300
|
|
|
|
-
|
|
|
76.572.588-7
|
|
Coca-Cola del Valle New Ventures S.A.
|
|
Associate
|
|
Chile
|
|
CLP
|
|
|
975,459
|
|
|
|
-
|
|
|
|
1,247,961
|
|
|
|
-
|
|
|
89.996.200-1
|
|
Envases del Pacífico S.A.
|
|
Director related
|
|
Chile
|
|
CLP
|
|
|
5,414
|
|
|
|
-
|
|
|
|
25,202
|
|
|
|
-
|
|
|
96.891.720-K
|
|
Embonor S.A.
|
|
Shareholder related
|
|
Chile
|
|
CLP
|
|
|
370,712
|
|
|
|
-
|
|
|
|
275,565
|
|
|
|
-
|
|
|
Foreign
|
|
Alimentos de Soja S.A.U.
|
|
Shareholder related
|
|
Argentina
|
|
ARS
|
|
|
803,753
|
|
|
|
-
|
|
|
|
929,986
|
|
|
|
-
|
|
|
77.526.480-2
|
|
Comercializadora Nova Verde
|
|
Common shareholder
|
|
Chile
|
|
CLP
|
|
|
138,143
|
|
|
|
-
|
|
|
|
765,521
|
|
|
|
-
|
|
|
Foreign
|
|
Coca-Cola Panamá
|
|
Shareholder related
|
|
Panamá
|
|
USD
|
|
|
7,739
|
|
|
|
-
|
|
|
|
7,739
|
|
|
|
-
|
|
|
Foreign
|
|
Sorocaba Refrescos S.A.
|
|
Associate
|
|
Brazil
|
|
BRL
|
|
|
2,736
|
|
|
|
-
|
|
|
|
26,014
|
|
|
|
-
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
37,774,527
|
|
|
|
17,510,694
|
|
|
|
53,637,601
|
|
|
|
19,777,812
|
|
|
Tax
ID No.
|
|
Company
|
|
Relationship
|
|
Country
|
|
Transaction
description
|
|
Currency
|
|
Accumulated
06.30.2020
|
|
|
Accumulated
12.31.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
96.714.870-9
|
|
Coca-Cola de Chile
S.A.
|
|
Shareholders
|
|
Chile
|
|
Concentrate purchase
|
|
CLP
|
|
|
65,620,395
|
|
|
|
150,548,253
|
|
|
96.714.870-9
|
|
Coca-Cola de Chile S.A.
|
|
Shareholders
|
|
Chile
|
|
Advertising services purchase
|
|
CLP
|
|
|
11,748,970
|
|
|
|
4,369,500
|
|
|
96.714.870-9
|
|
Coca-Cola de Chile S.A.
|
|
Shareholders
|
|
Chile
|
|
Water source lease
|
|
CLP
|
|
|
1,008,687
|
|
|
|
5,324,194
|
|
|
96.714.870-9
|
|
Coca-Cola de Chile S.A.
|
|
Shareholders
|
|
Chile
|
|
Sale of raw materials and others
|
|
CLP
|
|
|
1,610,605
|
|
|
|
1,196,793
|
|
|
86.881.400-4
|
|
Envases CMF S.A.
|
|
Associate
|
|
Chile
|
|
Purchase of bottles
|
|
CLP
|
|
|
5,726,667
|
|
|
|
19,422,280
|
|
|
86.881.400-4
|
|
Envases CMF S.A.
|
|
Associate
|
|
Chile
|
|
Raw material purchase
|
|
CLP
|
|
|
9,945,477
|
|
|
|
16,814,062
|
|
|
86.881.400-4
|
|
Envases CMF S.A.
|
|
Associate
|
|
Chile
|
|
Purchase of caps
|
|
CLP
|
|
|
165,815
|
|
|
|
281,174
|
|
|
86.881.400-4
|
|
Envases CMF S.A.
|
|
Associate
|
|
Chile
|
|
Purchase of services and others
|
|
CLP
|
|
|
800,093
|
|
|
|
6,425,579
|
|
|
86.881.400-4
|
|
Envases CMF S.A.
|
|
Associate
|
|
Chile
|
|
Purchase of packaging
|
|
CLP
|
|
|
3,027,635
|
|
|
|
521,466
|
|
|
86.881.400-4
|
|
Envases CMF S.A.
|
|
Associate
|
|
Chile
|
|
Sale of packaging/raw materials
|
|
CLP
|
|
|
2,831,586
|
|
|
|
6,132,091
|
|
|
96.891.720-K
|
|
Embonor S.A.
|
|
Shareholder related
|
|
Chile
|
|
Sale of finished products
|
|
CLP
|
|
|
21,684,415
|
|
|
|
50,315,292
|
|
|
96.891.720-K
|
|
Embonor S.A.
|
|
Shareholder related
|
|
Chile
|
|
Sale of services and others
|
|
CLP
|
|
|
229,174
|
|
|
|
268,526
|
|
|
96.891.720-K
|
|
Embonor S.A.
|
|
Shareholder related
|
|
Chile
|
|
Minimum dividend
|
|
CLP
|
|
|
-
|
|
|
|
212,517
|
|
|
96.517.310-2
|
|
Embotelladora Iquique S.A.
|
|
Shareholder related
|
|
Chile
|
|
Sale of finished products
|
|
CLP
|
|
|
1,554,491
|
|
|
|
3,208,559
|
|
|
89.996.200-1
|
|
Envases del Pacífico S.A.
|
|
Director related
|
|
Chile
|
|
Raw material and material purchase
|
|
CLP
|
|
|
20,912
|
|
|
|
93,117
|
|
|
Foreign
|
|
Recofarma do Indústrias
Amazonas Ltda.
|
|
Shareholder related
|
|
Brazil
|
|
Concentrate purchase
|
|
BRL
|
|
|
33,919,412
|
|
|
|
91,426,935
|
|
|
Foreign
|
|
Recofarma do Indústrias
Amazonas Ltda.
|
|
Shareholder related
|
|
Brazil
|
|
Reimbursements and other purchases
|
|
BRL
|
|
|
429,450
|
|
|
|
5,977,419
|
|
|
Foreign
|
|
Serv. y Prod. para Bebidas Refrescantes
S.R.L.
|
|
Shareholder related
|
|
Argentina
|
|
Concentrate purchase
|
|
ARS
|
|
|
38,397,673
|
|
|
|
97,321,567
|
|
|
Foreign
|
|
Serv. y Prod. para Bebidas Refrescantes
S.R.L.
|
|
Shareholder related
|
|
Argentina
|
|
Advertising participation
|
|
ARS
|
|
|
1,747,991
|
|
|
|
4,111,764
|
|
|
Foreign
|
|
KAIK Participações
|
|
Associate
|
|
Brazil
|
|
Reimbursements and other purchases
|
|
BRL
|
|
|
10,918
|
|
|
|
39,382
|
|
|
Foreign
|
|
Sorocaba Refrescos S.A.
|
|
Associate
|
|
Brazil
|
|
Product purchase
|
|
BRL
|
|
|
6,827,729
|
|
|
|
1,049,709
|
|
|
76.572.588-7
|
|
Coca-Cola Del Valle New Ventures
SA
|
|
Associate
|
|
Chile
|
|
Sale of services and others
|
|
CLP
|
|
|
2,205,111
|
|
|
|
3,959,962
|
|
|
Foreign
|
|
Alimentos de Soja S.A.U.
|
|
Shareholder related
|
|
Argentina
|
|
Payment of fees and services
|
|
ARS
|
|
|
607,828
|
|
|
|
802,563
|
|
|
Foreign
|
|
Alimentos de Soja S.A.U.
|
|
Shareholder related
|
|
Argentina
|
|
Product purchase
|
|
ARS
|
|
|
2,142,846
|
|
|
|
4,274,236
|
|
|
77526480-2
|
|
Comercializadora Novaverde S.A.
|
|
Common shareholder
|
|
Chile
|
|
Sale of raw materials
|
|
CLP
|
|
|
186,263
|
|
|
|
-
|
|
|
77526480-2
|
|
Comercializadora Novaverde S.A.
|
|
Common shareholder
|
|
Chile
|
|
Raw material purchase
|
|
CLP
|
|
|
13,720
|
|
|
|
-
|
|
|
12.4
|
Salaries and benefits received by key management
|
Salaries and benefits paid to the Company’s key management
personnel including directors and managers are detailed as follows:
|
Description
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Executive wages, salaries and benefits
|
|
|
4,795,393
|
|
|
|
3,626,378
|
|
|
Director allowances
|
|
|
759,000
|
|
|
|
748,000
|
|
|
Total
|
|
|
5,554,393
|
|
|
|
4,374,378
|
|
13 –
CURRENT AND NON-CURRENT EMPLOYEE BENEFITS
Employee
benefits are detailed as follows:
|
Description
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Accrued vacation
|
|
|
14,012,719
|
|
|
|
17,584,587
|
|
|
Participation in profits and bonuses
|
|
|
8,012,050
|
|
|
|
20,896,357
|
|
|
Indemnities for years of service
|
|
|
10,707,108
|
|
|
|
10,085,264
|
|
|
Total
|
|
|
32,731,877
|
|
|
|
48,566,208
|
|
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
Current
|
|
|
21,941,547
|
|
|
|
38,392,854
|
|
|
Non-current
|
|
|
10,790,330
|
|
|
|
10,173,354
|
|
|
Total
|
|
|
32,731,877
|
|
|
|
48,566,208
|
|
|
13.1
|
Indemnities for years of service
|
The movements of employee benefits, valued
pursuant to Note 2 are detailed as follows:
|
Movements
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Opening balance
|
|
|
10,085,264
|
|
|
|
9,415,541
|
|
|
Service costs
|
|
|
572,498
|
|
|
|
784,984
|
|
|
Interest costs
|
|
|
199,573
|
|
|
|
354,471
|
|
|
Actuarial losses
|
|
|
776,662
|
|
|
|
(210,956
|
)
|
|
Benefits paid
|
|
|
(926,889
|
)
|
|
|
(258,776
|
)
|
|
Total
|
|
|
10,707,108
|
|
|
|
10,085,264
|
|
The actuarial assumptions used are detailed as follows:
|
Assumptions
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
Discount rate
|
|
|
2.7
|
%
|
|
|
2.7
|
%
|
|
Expected salary increase rate
|
|
|
2.0
|
%
|
|
|
2.0
|
%
|
|
Turnover rate
|
|
|
5.4
|
%
|
|
|
5.4
|
%
|
|
Mortality rate
|
|
|
RV-2014
|
|
|
|
RV-2009
|
|
|
Retirement age of women
|
|
|
60
years
|
|
|
|
60
years
|
|
|
Retirement age of men
|
|
|
65
years
|
|
|
|
65
years
|
|
Personnel
expenses included in the consolidated statement of income are as follows:
|
Description
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
Wages and salaries
|
|
|
88,765,605
|
|
|
|
93,032,594
|
|
|
Employee benefits
|
|
|
19,708,804
|
|
|
|
25,943,028
|
|
|
Severance benefits
|
|
|
2,183,958
|
|
|
|
3,426,116
|
|
|
Other personnel expenses
|
|
|
5,549,882
|
|
|
|
7,478,967
|
|
|
Total
|
|
|
116,208,249
|
|
|
|
129,880,705
|
|
14 –
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD
Investments in associates using equity method of accounting
are detailed as follows:
|
|
|
|
|
|
|
Functional
|
|
Investment value
|
|
|
Ownership interest
|
|
|
Taxpayer ID
|
|
Company
|
|
Country
|
|
currency
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
86.881.400-4
|
|
Envases CMF S.A. (1)
|
|
Chile
|
|
CLP
|
|
|
19,268,438
|
|
|
|
18,561,835
|
|
|
|
50.00
|
%
|
|
|
50.00
|
%
|
|
Foreign
|
|
Leão Alimentos e Bebidas Ltda. (2)
|
|
Brasil
|
|
BRL
|
|
|
11,464,674
|
|
|
|
17,896,839
|
|
|
|
10.26
|
%
|
|
|
10.26
|
%
|
|
Foreign
|
|
Kaik Participações Ltda. (2)
|
|
Brasil
|
|
BRL
|
|
|
1,070,336
|
|
|
|
1,313,498
|
|
|
|
11.32
|
%
|
|
|
11.32
|
%
|
|
Foreign
|
|
SRSA Participações Ltda.
|
|
Brasil
|
|
BRL
|
|
|
52,324
|
|
|
|
65,301
|
|
|
|
40.00
|
%
|
|
|
40.00
|
%
|
|
Foreign
|
|
Sorocaba Refrescos S.A.
|
|
Brasil
|
|
BRL
|
|
|
24,063,699
|
|
|
|
24,636,945
|
|
|
|
40.00
|
%
|
|
|
40.00
|
%
|
|
Foreign
|
|
Trop Frutas do Brasil Ltda. (2)
|
|
Brasil
|
|
BRL
|
|
|
5,142,312
|
|
|
|
6,250,481
|
|
|
|
7.52
|
%
|
|
|
7.52
|
%
|
|
76.572.588.7
|
|
Coca-Cola del Valle New Ventures S.A.
|
|
Chile
|
|
CLP
|
|
|
30,577,045
|
|
|
|
31,141,834
|
|
|
|
35.00
|
%
|
|
|
35.00
|
%
|
|
Total
|
|
|
|
|
|
|
|
|
91,638,828
|
|
|
|
99,866,733
|
|
|
|
|
|
|
|
|
|
|
1.
|
In Envases CMF S.A., regardless of the
percentage of ownership interest, it was determined that no controlling interest was held, only
a significant influence, given that there was not a majority vote of the Board of Directors to
make strategic business decisions.
|
|
2.
|
In
these companies, regardless of the percentage of ownership interest held, the Company
has significant influence, given that it has a representative on each entity’s
Board of Directors
|
14.2 Movement
The movement of investments in other entities accounted for
using the equity method is shown below:
|
Description
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Opening balance
|
|
|
99,866,733
|
|
|
|
102,410,945
|
|
|
Dividends received
|
|
|
(507,499
|
)
|
|
|
(1,076,491
|
)
|
|
Share in operating income
|
|
|
1,865,840
|
|
|
|
(2,495,621
|
)
|
|
Amortization unrealized income in associates
|
|
|
123,698
|
|
|
|
(919,462
|
)
|
|
Increase (decrease)
in foreign currency translation, investments in associates
|
|
|
(9,709,944
|
)
|
|
|
1,947,362
|
|
|
Ending balance
|
|
|
91,638,828
|
|
|
|
99,866,733
|
|
The main movements are explained below:
|
|
·
|
In
2020 Leão Alimentos e Bebidas Ltda. recognized the value of a plant at its value
of use less the costs of sale, reducing the value previously recognized. Andina recognized
as results for the 2020 period a loss of CLP 2,931 million.
|
|
|
·
|
In
the 2020 period Sorocaba Refrescos S.A., recognized a tax credit for excluding ICMS from
the PIS and COFINS calculation base. Andina recognized as results for the 2020 period
a proportional result of CLP 4,277 million.
|
14.3 Reconciliation
of share of profit in investments in associates:
|
Description
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Equity value on income of associates
|
|
|
1,865,841
|
|
|
|
484,321
|
|
|
Unrealized earnings from product inventory acquired from
associates and not sold at the end of the period, which is presented as a discount in the respective asset account (containers
and / or inventory)
|
|
|
(329,671
|
)
|
|
|
(519,069
|
)
|
|
Amortization goodwill in the sale
of fixed assets of Envases CMF S.A.
|
|
|
(261,530
|
)
|
|
|
42,633
|
|
|
Income statement balance
|
|
|
1,274,640
|
|
|
|
7,885
|
|
14.4 Summary
financial information of associates:
At June 30, 2020:
|
|
|
Envases CMF
S.A.
|
|
|
Sorocaba Refrescos
S.A.
|
|
|
Kaik Participações
Ltda.
|
|
|
SRSA Participações
Ltda.
|
|
|
Leão
Alimentos e Bebidas Ltda.
|
|
|
Trop Frutas
do Brasil Ltda.
|
|
|
Coca-Cola del
Valle New Ventures S.A.
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Total assets
|
|
|
71,347,713
|
|
|
|
92,321,029
|
|
|
|
9,455,530
|
|
|
|
315,365
|
|
|
|
183,891,061
|
|
|
|
81,851,499
|
|
|
|
33,212,806
|
|
|
Total liabilities
|
|
|
32,640,304
|
|
|
|
43,123,176
|
|
|
|
28
|
|
|
|
184,549
|
|
|
|
34,205,191
|
|
|
|
16,347,710
|
|
|
|
9,626,011
|
|
|
Total revenue
|
|
|
28,920,470
|
|
|
|
23,331,809
|
|
|
|
71,714
|
|
|
|
127,816
|
|
|
|
43,116,070
|
|
|
|
14,447,180
|
|
|
|
13,043,968
|
|
|
Net income (loss) of associates
|
|
|
1,554,107
|
|
|
|
728,106
|
|
|
|
71,714
|
|
|
|
127,816
|
|
|
|
(9,957,252
|
)
|
|
|
(296,434
|
)
|
|
|
(840,567
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reporting date
|
|
|
06.30.2020
|
|
|
|
05.31.2020
|
|
|
|
05.31.2020
|
|
|
|
05.31.2020
|
|
|
|
05.31.2020
|
|
|
|
05.31.2020
|
|
|
|
06.30.2020
|
|
At June 30, 2019:
|
|
|
Envases CMF
S.A.
|
|
|
Sorocaba Refrescos
S.A.
|
|
|
Kaik Participações
Ltda.
|
|
|
SRSA Participações
Ltda.
|
|
|
Leão
Alimentos e Bebidas Ltda.
|
|
|
Trop Frutas
do Brasil Ltda.
|
|
|
Coca-Cola del
Valle New Ventures S.A.
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Total assets
|
|
|
71,314,290
|
|
|
|
106,460,187
|
|
|
|
10,970,861
|
|
|
|
379,087
|
|
|
|
239,970,976
|
|
|
|
95,577,819
|
|
|
|
105,533,625
|
|
|
Total liabilities
|
|
|
33,792,306
|
|
|
|
47,849,221
|
|
|
|
33
|
|
|
|
220,311
|
|
|
|
39,705,070
|
|
|
|
20,906,601
|
|
|
|
19,974,502
|
|
|
Total revenue
|
|
|
27,654,284
|
|
|
|
30,339,013
|
|
|
|
110,666
|
|
|
|
155,195
|
|
|
|
64,078,835
|
|
|
|
20,049,468
|
|
|
|
14,701,402
|
|
|
Net income (loss) of associates
|
|
|
368,683
|
|
|
|
1,483,870
|
|
|
|
110,666
|
|
|
|
155,195
|
|
|
|
698,671
|
|
|
|
(896,172
|
)
|
|
|
762,450
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reporting date
|
|
|
06.30.2019
|
|
|
|
05.31.2019
|
|
|
|
05.31.2019
|
|
|
|
05.31.2019
|
|
|
|
05.31.2019
|
|
|
|
05.31.2019
|
|
|
|
05.31.2019
|
|
15 - INTANGIBLE ASSETS OTHER THAN GOODWILL
Intangible assets other than goodwill are detailed as follows:
|
|
|
June 30, 2020
|
|
|
December 31,
2019
|
|
|
|
|
Gross
|
|
|
Accumulated
|
|
|
Net
|
|
|
Gross
|
|
|
Accumulated
|
|
|
Net
|
|
|
Description
|
|
Value
|
|
|
Amortization
|
|
|
Value
|
|
|
Value
|
|
|
Amortization
|
|
|
Value
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Distribution rights (1)
|
|
|
637,877,961
|
|
|
|
(367,881
|
)
|
|
|
637,510,080
|
|
|
|
667,148,383
|
|
|
|
(393,187
|
)
|
|
|
666,755,196
|
|
|
Software
|
|
|
34,417,334
|
|
|
|
(26,737,257
|
)
|
|
|
7,680,077
|
|
|
|
34,347,843
|
|
|
|
(26,484,427
|
)
|
|
|
7,863,416
|
|
|
Others
|
|
|
641,223
|
|
|
|
(333,605
|
)
|
|
|
307,618
|
|
|
|
750,309
|
|
|
|
(293,546
|
)
|
|
|
456,763
|
|
|
Total
|
|
|
672,936,518
|
|
|
|
(27,438,743
|
)
|
|
|
645,497,775
|
|
|
|
702,246,535
|
|
|
|
(27,171,160
|
)
|
|
|
675,075,375
|
|
|
|
(1)
|
Correspond to the contractual rights
to produce and distribute Coca-Cola products in certain parts of Argentina, Brazil, Chile
and Paraguay. Distribution rights result from the valuation process at fair value of
the assets and liabilities of the companies acquired in business combinations. Production
and distribution contracts are renewable for periods of 5 years with Coca-Cola. The nature
of the business and renewals that Coca-Cola has permanently done on these rights, allow
qualifying them as indefinite contracts.
|
The distribution rights together with the assets that are part
of the cash-generating units, are annually subjected to the impairment test. Such distribution rights have an indefinite useful
life and are not subject to amortization: except for the Monster rights that are amortized in the term of the agreement which
is 4 years.
|
Distribution rights
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Chile (excluding Metropolitan Region, Rancagua
and San Antonio)
|
|
|
305,194,170
|
|
|
|
305,235,247
|
|
|
Brazil (Rio de Janeiro, Espirito Santo, Ribeirão
Preto and investments in Sorocaba and Leão Alimentos e Bebidas Ltda.)
|
|
|
151,468,645
|
|
|
|
187,616,890
|
|
|
Paraguay
|
|
|
178,671,902
|
|
|
|
171,841,663
|
|
|
Argentina (North and South)
|
|
|
2,175,363
|
|
|
|
2,061,396
|
|
|
Total
|
|
|
637,510,080
|
|
|
|
666,755,196
|
|
The movement and balances of identifiable intangible assets
are detailed as follows:
|
|
|
January
1 to June 30, 2020
|
|
|
January 1 to December 31, 2019
|
|
|
Description
|
|
Distribution
Rights
|
|
|
Others
|
|
|
Software
|
|
|
Total
|
|
|
Distribution
Rights
|
|
|
Others
|
|
|
Software
|
|
|
Total
|
|
|
|
|
M$
|
|
|
M$
|
|
|
M$
|
|
|
M$
|
|
|
M$
|
|
|
M$
|
|
|
M$
|
|
|
M$
|
|
|
Opening balance
|
|
|
666,755,196
|
|
|
|
456,763
|
|
|
|
7,863,416
|
|
|
|
675,075,375
|
|
|
|
661,026,400
|
|
|
|
430,196
|
|
|
|
7,365,957
|
|
|
|
668,822,553
|
|
|
Additions
|
|
|
117,114
|
|
|
|
-
|
|
|
|
1,473,487
|
|
|
|
1,590,601
|
|
|
|
-
|
|
|
|
-
|
|
|
|
3,296,558
|
|
|
|
3,296,558
|
|
|
Amortization
|
|
|
(140,866
|
)
|
|
|
-
|
|
|
|
(1,274,801
|
)
|
|
|
(1,415,667
|
)
|
|
|
(133,753
|
)
|
|
|
-
|
|
|
|
(2,324,225
|
)
|
|
|
(2,457,978
|
)
|
|
Other increases (decreases) (1)
|
|
|
(29.221.364
|
)
|
|
|
(149,145
|
)
|
|
|
(382,025
|
)
|
|
|
(29,752,534
|
)
|
|
|
5,862,549
|
|
|
|
26,567
|
|
|
|
(474,874
|
)
|
|
|
5,414,242
|
|
|
Ending balance
|
|
|
637,510,080
|
|
|
|
307,618
|
|
|
|
7,680,077
|
|
|
|
645,497,775
|
|
|
|
666,755,196
|
|
|
|
456,763
|
|
|
|
7,863,416
|
|
|
|
675,075,375
|
|
|
|
(1)
|
Mainly corresponds to restatement due to the effects of translation
of distribution rights of foreign subsidiaries.
|
16 - GOODWILL
Movement in Goodwill is detailed as follows:
|
Operating segment
|
|
01.01.2020
|
|
|
Translation
differences from functional currency
|
|
|
06.30.2020
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Chilean operation
|
|
|
8,503,023
|
|
|
|
-
|
|
|
|
8,503,023
|
|
|
Brazilian operation
|
|
|
75,674,072
|
|
|
|
(14,383,496
|
)
|
|
|
61,290,576
|
|
|
Argentine operation
|
|
|
29,750,238
|
|
|
|
1,752,124
|
|
|
|
31,502,362
|
|
|
Paraguayan operation
|
|
|
7,294,328
|
|
|
|
290,157
|
|
|
|
7,584,485
|
|
|
Total
|
|
|
121,221,661
|
|
|
|
(12,341,215
|
)
|
|
|
108,880,446
|
|
|
Operating segment
|
|
01.01.2019
|
|
|
Translation
differences from functional currency
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Chilean operation
|
|
|
8,503,023
|
|
|
|
-
|
|
|
|
8,503,023
|
|
|
Brazilian operation
|
|
|
73,080,100
|
|
|
|
2,593,972
|
|
|
|
75,674,072
|
|
|
Argentine operation
|
|
|
28,318,129
|
|
|
|
1,432,109
|
|
|
|
29,750,238
|
|
|
Paraguayan operation
|
|
|
7,327,921
|
|
|
|
(33,593
|
)
|
|
|
7,294,328
|
|
|
Total
|
|
|
117,229,173
|
|
|
|
3,992,488
|
|
|
|
121,221,661
|
|
17 – OTHER CURRENT
AND NON-CURRENT FINANCIAL LIABILITIES
Liabilities are detailed as follows:
|
|
|
Balance
|
|
|
|
|
Current
|
|
|
Non-current
|
|
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Bank loans (17.1.1 – 2)
|
|
|
383,582
|
|
|
|
1,438,161
|
|
|
|
744,803
|
|
|
|
909,486
|
|
|
Bonds payable, net1
(17.2)
|
|
|
22,888,539
|
|
|
|
21,604,601
|
|
|
|
988,781,176
|
|
|
|
718,962,871
|
|
|
Deposits in guarantee
|
|
|
11,695,373
|
|
|
|
11,163,005
|
|
|
|
-
|
|
|
|
-
|
|
|
Derivative contract liabilities (Note 22)
|
|
|
97,548
|
|
|
|
374,576
|
|
|
|
102,066,343
|
|
|
|
-
|
|
|
Leasing agreements (17.4.1 – 2)
|
|
|
5,634,724
|
|
|
|
6,013,535
|
|
|
|
18,432,175
|
|
|
|
23,454,700
|
|
|
Total
|
|
|
40,699,766
|
|
|
|
40,593,878
|
|
|
|
1,110,024,497
|
|
|
|
743,327,057
|
|
1 Amounts net of placement
expenses and discounts related to placement
The fair value of financial assets and liabilities is presented
below:
|
Current
|
|
Book
Value
06.30.2020
|
|
|
Fair
Value
06.30.2020
|
|
|
Book
Value
12.31.2019
|
|
|
Fair
Value
12.31.2019
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Cash and cash equivalent (2)
|
|
|
371,105,249
|
|
|
|
371,105,249
|
|
|
|
157,567,986
|
|
|
|
157,567,986
|
|
|
Other financial assets (1)
|
|
|
1,416,422
|
|
|
|
1,416,422
|
|
|
|
317,205
|
|
|
|
317,205
|
|
|
Trade debtors and other accounts receivable (2)
|
|
|
127,266,796
|
|
|
|
127,266,796
|
|
|
|
191,077,588
|
|
|
|
191,077,588
|
|
|
Accounts receivable related companies (2)
|
|
|
7,257,381
|
|
|
|
7,257,381
|
|
|
|
10,619,740
|
|
|
|
10,619,740
|
|
|
Bank loans (2)
|
|
|
383,582
|
|
|
|
401,699
|
|
|
|
1,438,161
|
|
|
|
1,434,255
|
|
|
Bonds payable (2)
|
|
|
22,888,539
|
|
|
|
15,462,837
|
|
|
|
21,604,601
|
|
|
|
24,188,060
|
|
|
Bottle guaranty deposits (2)
|
|
|
11,695,373
|
|
|
|
11,695,373
|
|
|
|
11,163,005
|
|
|
|
11,163,005
|
|
|
Derivative contracts liabilities (see note 20) (1)
|
|
|
97,548
|
|
|
|
97,548
|
|
|
|
374,576
|
|
|
|
374,576
|
|
|
Leasing agreements (2)
|
|
|
5,634,724
|
|
|
|
5,634,724
|
|
|
|
6,013,535
|
|
|
|
6,013,535
|
|
|
Accounts payable (2)
|
|
|
174,134,864
|
|
|
|
174,134,864
|
|
|
|
243,700,553
|
|
|
|
243,700,553
|
|
|
Accounts payable related companies (2)
|
|
|
37,774,527
|
|
|
|
37,774,527
|
|
|
|
53,637,601
|
|
|
|
53,637,601
|
|
|
Non-current
|
|
06.30.2020
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Other financial assets (1)
|
|
|
165,209,345
|
|
|
|
165,209,345
|
|
|
|
98,918,457
|
|
|
|
98,918,457
|
|
|
Accounts receivable, non-current (2)
|
|
|
63,438
|
|
|
|
63,438
|
|
|
|
523,769
|
|
|
|
523,769
|
|
|
Accounts receivable related companies (2)
|
|
|
166,752
|
|
|
|
166,752
|
|
|
|
283,118
|
|
|
|
283,118
|
|
|
Bank loans (2)
|
|
|
744,803
|
|
|
|
741,269
|
|
|
|
909,486
|
|
|
|
867,025
|
|
|
Bonds payable (2)
|
|
|
988,781,176
|
|
|
|
1,069,220,583
|
|
|
|
718,962,871
|
|
|
|
803,017,145
|
|
|
Leasing agreements (2)
|
|
|
18,432,175
|
|
|
|
18,432,175
|
|
|
|
23,454,700
|
|
|
|
23,454,700
|
|
|
Accounts payable, non-current (2)
|
|
|
343,414
|
|
|
|
343,414
|
|
|
|
619,587
|
|
|
|
619,587
|
|
|
|
(1)
|
Fair values are based on discounted
cash flows using market discount rates at the close of the six-month and one-year period
and are classified as Level 2 of the fair value measurement hierarchies.
|
|
|
(2)
|
Financial instruments such as:
Cash and Cash Equivalents, Trade and Other Accounts Receivable, Accounts Receivable,
Bottle Guarantee Deposits and Trade Accounts Payable, and Other Accounts Payable present
a fair value that approximates their carrying value, considering the nature and term
of the obligation. The business model is to maintain the financial instrument in order
to collect/pay contractual cash flows, in accordance with the terms of the contract,
where cash flows are received/cancelled on specific dates that exclusively constitute
payments of principal plus interest on that principal. These instruments are revalued
at amortized cost.
|
17.1.1 Bank obligations, current
|
|
|
|
|
Maturity
|
|
|
Total
|
|
|
Indebted entity
|
|
Creditor entity
|
|
|
|
Type of
|
|
Effective
|
|
|
Nominal
|
|
|
Up to
|
|
|
90 days
to
|
|
|
at
|
|
|
at
|
|
|
Taxpayer
ID
|
|
Name
|
|
Country
|
|
Taxpayer
ID
|
|
Name
|
|
Country
|
|
Currency
|
|
Amortization
|
|
Rate
|
|
|
Rate
|
|
|
90
days
|
|
|
1
year
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
96.705.990-0
|
|
Envases Central
S.A.
|
|
Chile
|
|
97.006.000-6
|
|
Banco BCI
|
|
Chile
|
|
UF
|
|
Semiannually
|
|
|
2.13
|
%
|
|
|
2.13
|
%
|
|
|
191,441
|
|
|
|
191,442
|
|
|
|
382,883
|
|
|
|
748,838
|
|
|
Foreign
|
|
Embotelladora del Atlántico
S.A.
|
|
Argentina
|
|
Foreign
|
|
Banco Galicia y Buenos
Aires S.A.
|
|
Argentina
|
|
ARS
|
|
Upon maturity
|
|
|
82.00
|
%
|
|
|
82.00
|
%
|
|
|
676
|
|
|
|
0
|
|
|
|
676
|
|
|
|
8,453
|
|
|
Foreign
|
|
Rio de Janeiro Refrescos
Ltda.
|
|
Brazil
|
|
Foreign
|
|
Banco Itaú
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
6.63
|
%
|
|
|
6.63
|
%
|
|
|
23
|
|
|
|
0
|
|
|
|
23
|
|
|
|
635,727
|
|
|
Foreign
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Banco
Itaú
|
|
Brazil
|
|
BRL
|
|
Quarterly
|
|
|
4.50
|
%
|
|
|
4.50
|
%
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
45,143
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
383,582
|
|
|
|
1,438,161
|
|
17.1.2
Bank obligations, non-current
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
Indebted
Entity
|
|
Creditor
Entity
|
|
|
|
Type
|
|
Effective
|
|
|
Nominal
|
|
|
1 year
up
to
|
|
|
More
than 2 years
Up
to
|
|
More
than 3 years
Up
to
|
|
More
than 4 years
Up
to
|
|
More
than
5
|
|
|
at
|
|
|
Tax
ID
|
|
Name
|
|
Country
|
|
Tax
ID
|
|
Name
|
|
Country
|
|
Currency
|
|
Amortization
|
|
Rate
|
|
|
Rate
|
|
|
2 years
|
|
|
3 years
|
|
4 years
|
|
5 years
|
|
Years
|
|
|
06.30.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
CLP (000’s)
|
|
CLP (000’s)
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
96.705.990-0
|
|
Envases Central S.A.
|
|
Chile
|
|
97.006.000-6
|
|
Banco BCI
|
|
Chile
|
|
UF
|
|
Semiannually
|
|
|
2.13
|
%
|
|
|
2.13
|
%
|
|
|
744,803
|
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
|
|
744,803
|
|
|
TOTAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
744,803
|
|
17.1.2 Bank obligations, non-current previous year
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
Indebted
Entity
|
|
Creditor
Entity
|
|
|
|
Type
|
|
Effective
|
|
|
Nominal
|
|
|
1 year
up
to
|
|
|
More
than 2 years
Up
to
|
|
More
than 3 years
Up
to
|
|
More
than 4 years
Up
to
|
|
More
than
5
|
|
|
at
|
|
|
Tax
ID
|
|
Name
|
|
Country
|
|
Tax
ID
|
|
Name
|
|
Country
|
|
Currency
|
|
Amortization
|
|
Rate
|
|
|
Rate
|
|
|
2 years
|
|
|
3 years
|
|
4 years
|
|
5 years
|
|
Years
|
|
|
06.30.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
CLP
(000’s)
|
|
CLP
(000’s)
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
96.705.990-0
|
|
Envases Central S.A.
|
|
Chile
|
|
97.006.000-6
|
|
Banco BCI
|
|
Chile
|
|
UF
|
|
Semiannually
|
|
|
2.13
|
%
|
|
|
2.13
|
%
|
|
|
736,033
|
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
|
|
736,033
|
|
|
Foreign
|
|
Rio de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Banco Itaú
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
6.63
|
%
|
|
|
6.63
|
%
|
|
|
44,621
|
|
|
44,621
|
|
44,621
|
|
39,590
|
|
|
-
|
|
|
|
173,453
|
|
|
TOTAL
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
909,486
|
|
17.1.3 Current and non-current
bank obligations “Restrictions”
Bank obligations are not subject
to restrictions for the reported periods.
17.2 Bonds payable
During 2018, Andina carried out a debt
restructuring process that consisted of a partial repurchase in the amount of USD 210 million of the 144A/RegS Senior Notes and
refinancing it with the placement of Series F bonds in the local market in the amount of UF 5.7 million due 2039 and accruing
an annual interest rate of 2.83%. The costs corresponding to the repurchase of bonds, associated with premium payments, overpricing
and proportional amortization of placement costs and discounts in bonds in original U.S. Dollars amounting to CLP 9,583,000 thousand,
were recorded in results under the item financial costs.
On January 21, 2020, the Company issued
corporate bonds on the international market for USD 300 million with a 30-year maturity, with a bullet structure and an annual
interest rate of 3.950%.
|
|
|
Current
|
|
|
Non-current
|
|
|
Total
|
|
|
Composition of bonds payable
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Bonds
(face value) 2
|
|
|
23,615,798
|
|
|
|
22,189,595
|
|
|
|
997,248,214
|
|
|
|
721,950,553
|
|
|
|
1,011,669,715
|
|
|
|
744,140,148
|
|
2 Gross amounts, do not consider placement expenses
and discounts related to placement
17.2.1 Current
and non-current balances
Bonds payable correspond to bonds in UF issued by the parent
company on the Chilean market and bonds in U.S. dollars issued by the Parent Company on the international market. A detail of
these instruments is presented below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
Non-current
|
|
|
Bonds
|
|
Series
|
|
|
Current
Nominal amount
|
|
|
Adjustment Unit
|
|
Interest
Rate
|
|
|
Final Maturity
|
|
Interest payment
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CMF Registration N°254 06.13.2001
|
|
|
B
|
|
|
|
1,771,585
|
|
|
UF
|
|
|
6.5
|
%
|
|
12-01-2026
|
|
Semi-annually
|
|
|
7,454,769
|
|
|
|
7,160,809
|
|
|
|
43,641,091
|
|
|
|
46,659,296
|
|
|
CMF Registration N°641 08.23.2010
|
|
|
C
|
|
|
|
1,500,000
|
|
|
UF
|
|
|
4.0
|
%
|
|
08-15-2031
|
|
Semi-annually
|
|
|
637,000
|
|
|
|
630,731
|
|
|
|
43,044,630
|
|
|
|
42,464,910
|
|
|
CMF Registration N°759 08.20.2013
|
|
|
C
|
|
|
|
250,000
|
|
|
UF
|
|
|
3.5
|
%
|
|
08-16-2020
|
|
Semi-annually
|
|
|
3,633,212
|
|
|
|
7,168,907
|
|
|
|
0
|
|
|
|
-
|
|
|
CMF Registration N°760 08.20.2013
|
|
|
D
|
|
|
|
4,000,000
|
|
|
UF
|
|
|
3.8
|
%
|
|
08-16-2034
|
|
Semi-annually
|
|
|
1,602,651
|
|
|
|
1,587,051
|
|
|
|
114,785,680
|
|
|
|
113,239,760
|
|
|
CMF Registration N°760 04.02.2014
|
|
|
E
|
|
|
|
3,000,000
|
|
|
UF
|
|
|
3.75
|
%
|
|
03-01-2035
|
|
Semi-annually
|
|
|
1,051,701
|
|
|
|
1,048,938
|
|
|
|
86,089,269
|
|
|
|
84,929,828
|
|
|
CMF Registration N°912 10.10.2018
|
|
|
F
|
|
|
|
5,700,000
|
|
|
UF
|
|
|
2.83
|
%
|
|
09-25-2039
|
|
Semi-annually
|
|
|
1,198,850
|
|
|
|
1,195,700
|
|
|
|
163,569,594
|
|
|
|
161,366,658
|
|
|
Bonds USA
|
|
|
-
|
|
|
|
365,000,000
|
|
|
USD
|
|
|
5.0
|
%
|
|
10-01-2023
|
|
Semi-annually
|
|
|
3,685,438
|
|
|
|
3,397,459
|
|
|
|
299,748,950
|
|
|
|
273,290,101
|
|
|
Bonds USA 2
|
|
|
-
|
|
|
|
300,000,000
|
|
|
USD
|
|
|
3.95
|
%
|
|
01-21-2050
|
|
Semi-annually
|
|
|
4,352,177
|
|
|
|
-
|
|
|
|
246,369,000
|
|
|
|
-
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23,615,798
|
|
|
|
22,189,595
|
|
|
|
997,248,214
|
|
|
|
721,950,553
|
|
17.2.3 Non-current
maturities
|
|
|
|
|
|
Year
of maturity
|
|
|
|
|
|
Total
non-current
|
|
|
|
|
Series
|
|
|
More
than 1 up to 2
|
|
|
More
than 2 up to 3
|
|
|
More
than 3 up to 4
|
|
|
More
than 5
|
|
|
06.30.2020
|
|
|
|
|
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CMF Registration N°254 06.13.2001
|
|
|
B
|
|
|
|
7,664,885
|
|
|
|
8,163,098
|
|
|
|
8,693,701
|
|
|
|
19,119,407
|
|
|
|
43,641,091
|
|
|
CMF Registration N°641 08.23.2010
|
|
|
C
|
|
|
|
3,913,148
|
|
|
|
3,913,148
|
|
|
|
3,913,148
|
|
|
|
31,305,186
|
|
|
|
43,044,630
|
|
|
CMF Registration N°760 08.20.2013
|
|
|
D
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
114,785,680
|
|
|
|
114,785,680
|
|
|
CMF Registration N°760 04.02.2014
|
|
|
E
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
86,089,269
|
|
|
|
86,089,269
|
|
|
CMF Registration N°912 10.10.2018
|
|
|
F
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
163,569,594
|
|
|
|
163,569,594
|
|
|
USA Bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
299,748,950
|
|
|
|
-
|
|
|
|
299,748,950
|
|
|
USA 2 Bonds
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
246,369,000
|
|
|
|
246,369,000
|
|
|
Total
|
|
|
|
|
|
|
11,578,033
|
|
|
|
12,076,246
|
|
|
|
312,355,799
|
|
|
|
661,238,136
|
|
|
|
997,248,214
|
|
17.2.4 Market rating
The bonds issued on the Chilean market
had the following rating:
|
AA
|
:
|
ICR Compañía Clasificadora de Riesgo Ltda. rating
|
|
AA
|
:
|
Fitch Chile Clasificadora de Riesgo Limitada rating
|
The rating of bonds issued on the international market had
the following rating:
|
BBB
|
:
|
Standard&Poors Global Ratings
|
|
BBB+
|
:
|
Fitch Ratings Inc.
|
17.2.5 Restrictions
17.2.5.1 Restrictions
regarding bonds placed abroad.
Obligations with bonds placed abroad are
not affected by financial restrictions for the periods reported.
17.2.5.2 Restrictions
regarding bonds placed in the local market.
For purposes
of the calculation of the covenants, the amount of EBITDA that was agreed on each bond issue is included.
Restrictions on the issuance of bonds for a fixed amount
registered under number 254.
|
|
·
|
Maintain
an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity
does not exceed 1.20 times. For these purposes Consolidated Financial Liabilities shall
be regarded as Liabilities Receivables accruing interest, namely: (i) other current financial
liabilities, plus (ii) other non-current financial liabilities, less (iii) asset balances
of derivative financial instruments, taken to cover exchange rate or interest rate risks
on financial liabilities under "Other Current Financial Assets" and "Other
non-current Financial Assets" of the Issuer’s Consolidated Financial Statements.
Consolidated Equity will be regarded as total equity including non-controlling interest.
|
|
|
|
As of June 30, 2020,
indebtedness level is 1.17 times of Consolidated Equity.
|
|
|
·
|
Maintain,
and in no manner lose, sell, assign or transfer to a third party, the geographical area
currently denominated as the “Metropolitan Region” (Región Metropolitana)
as a territory in Chile in which we have been authorized by The Coca-Cola Company for
the development, production, sale and distribution of products and brands of the licensor,
in accordance to the respective bottler or license agreement, renewable from time to
time.
|
|
|
·
|
Not
lose, sell, assign, or transfer to a third party any other territory of Argentina or
Brazil, which as of this date is franchised by TCCC to the Company for the development,
production, sale and distribution of products and brands of such licensor, as long as
any of these territories account for more than 40% of the Issuer's Adjusted Consolidated
Operating Cash Flow.
|
|
|
·
|
Maintain
consolidated assets free of any pledge, mortgage or other encumbrances for an amount
at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities.
|
Unsecured consolidated liabilities
payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees
on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative
financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under "Other Current
Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial
Position.
Consolidated Assets free of
any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily
and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange
rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Other non-current
Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.
As of June 30, 2020, this index
is 1.55 times.
Restrictions to bond lines registered in the Securities
Registered under number 641, series C
|
|
·
|
Maintain
a level of "Net Financial Debt" within its quarterly financial statements that
may not exceed 1.5 times, measured over figures included in its consolidated statement
of financial position. To this end, net financial debt shall be defined as the ratio
between net financial debt and total equity of the issuer (equity attributable to controlling
owners plus non-controlling interest). On its part, net financial debt will be the difference
between the Issuer's financial debt and cash.
|
As of June 30, 2020, Net Financial
Debt level was 0.73 times.
|
|
·
|
Maintain
consolidated assets free of any pledge, mortgage or other encumbrances for an amount
at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities.
|
Unencumbered assets refer to
the assets that are the property of the issuer; classified under Total Assets of the Issuer’s Financial Statements; and
that are free of any pledge, mortgage or other liens constituted in favor of third parties, less "Other Current Financial
Assets" and "Other Non-Current Financial Assets" of the Issuer’s Financial Statements (to the extent they
correspond to asset balances of derivative financial instruments, taken to hedge exchange rate and interest rate risk of the financial
liabilities).
Unsecured total liabilities
correspond to: liabilities from Total Current Liabilities and Total Non-Current Liabilities of Issuer’s Financial Statement
which do not benefit from preferences or privileges, less "Other Current Financial Assets" and "Other Non-Current
Financial Assets" of the Issuer’s Financial Statements (to the extent they correspond to asset balances of derivative
financial instruments, taken to hedge exchange rate and interest rate risk of the financial liabilities).
As of June 30, 2020, this index
is 1.55 times.
|
|
·
|
Maintain
a level of "Financial net coverage" in its quarterly financial statements of
more than 3 times. Net financial coverage means the ratio between the Issuer's Ebitda
for the past 12 months and net financial expenses (financial income minus financial expenses)
of the issuer for the past 12 months. However, this restriction will be considered breached
when the mentioned net financial coverage level is lower than the level previously indicated
during two consecutive quarters.
|
As of June 30, 2020, Net Financial
Coverage level is 86.01 times.
Restrictions to bond lines registered in the Securities
Registrar under numbers 759 and 760 D-E.
|
|
·
|
Maintain
an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity
does not exceed 1.20 times. For these purposes Consolidated Financial Liabilities shall
be regarded as Liabilities Receivables accruing interest, namely: (i) other current financial
liabilities, plus (ii) other non-current financial liabilities, less (iii) cash and cash
equivalent and (iv) other current financial assets, and (v) other non-current financial
assets (to the extent they are asset balances of derivative financial instruments, taken
to hedge exchange rate or interest rate risks on financial liabilities). Consolidated
Equity will be regarded as total equity including non-controlling interest.
|
As of June 30, 2020, Indebtedness
Level is 0.73 times of Consolidated Equity.
|
|
·
|
Maintain
consolidated assets free of any pledge, mortgage or other encumbrances for an amount
at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities
payable.
|
Unsecured Consolidated Liabilities
Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not secured by real guarantees
on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the asset balances of derivative
financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities under "Other Current
Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated Statement of Financial
Position.
The following will be considered
in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge,
mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge
exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other
non-current Financial Assets" of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated Assets free
of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily
and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange
rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Other non-current
Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.
As of June 30, 2020, this index
is 1.55 times.
|
|
·
|
Maintain,
and in no manner, lose, sell, assign or transfer to a third party, the geographical area
currently denominated as the “Metropolitan Region” as a territory franchised
to the Issuer in Chile by The Coca-Cola Company, hereinafter also referred to as "TCCC"
or the "Licensor" for the development, production, sale and distribution of
products and brands of said licensor, in accordance to the respective bottler or license
agreement, renewable from time to time. Losing said territory, means the non-renewal,
early termination or cancellation of this license agreement by TCCC, for the geographical
area today called "Metropolitan Region". This reason shall not apply if, as
a result of the loss, sale, transfer or disposition, of that licensed territory is purchased
or acquired by a subsidiary or an entity that consolidates in terms of accounting with
the Issuer.
|
|
|
·
|
Not
lose, sell, assign, or transfer to a third party any other territory of Argentina or
Brazil, which as of the issuance date of these instruments is franchised by TCCC to the
Issuer for the development, production, sale and distribution of products and brands
of such licensor, as long as any of these territories account for more than 40% of the
Issuer's Adjusted Consolidated Operating Cash Flow of the audited period immediately
before the moment of loss, sale, assignment or transfer. For these purposes, the term
"Adjusted Consolidated Operating Cash Flow" shall mean the addition of the
following accounting accounts of the Issuer's Consolidated Statement of Financial Position:
(i) "Gross Profit" which includes regular activities and cost of sales; less
(ii) "Distribution Costs"; less (iii) "Administrative Expenses";
plus (iv) "Participation in profits (losses) of associates and joint ventures that
are accounted for using the equity method"; plus (v) "Depreciation"; plus
(vi) "Intangibles Amortization".
|
Restrictions to bond lines registered in the Securities
Registrar under number 912.
|
|
·
|
Maintain
an indebtedness level where Consolidated Financial Liabilities to Consolidated Equity
does not exceed 1.20 times.
|
For these purposes Consolidated
Financial Liabilities shall be regarded as Liabilities Receivables accruing interest, namely: (i) other current financial liabilities,
plus (ii) other non-current financial liabilities, less (iii) cash and cash equivalent and (iv) other current financial assets,
and (v) other non-current financial assets (to the extent they are asset balances of derivative financial instruments, taken to
hedge exchange rate or interest rate risks on financial liabilities). Consolidated Equity will be regarded as total equity including
non-controlling interest.
As of June 30, 2020, this index equals 0.73 times.
|
|
·
|
Maintain
consolidated assets free of any pledge, mortgage or other encumbrances for an amount
at least equal to 1.3 times of the issuer’s unsecured consolidated liabilities
payable.
|
Unsecured
Consolidated Liabilities Payable shall be regarded as the total liabilities, obligations and debts of the issuer that are not
secured by real guarantees on goods and assets of the latter, voluntarily and conventionally constituted by the issuer less the
asset balances of derivative financial instruments, taken to cover exchange rate or interest rate risks on financial liabilities
under "Other Current Financial Assets" and "Other non-current Financial Assets" of the Issuer’s Consolidated
Statement of Financial Position.
The following will be considered
in determining Consolidated Assets: assets free of any pledge, mortgage or other lien, as well as those assets having a pledge,
mortgage or real encumbrances that operate solely by law, less asset balances of derivative financial instruments, taken to hedge
exchange rate or interest rate risks on financial liabilities under "Other Current Financial Assets" and "Other
non-current Financial Assets" of the Issuer’s Consolidated Financial Statements. Therefore, Consolidated Assets free
of any pledge, mortgage or other lien will only be regarded as those assets free of any pledge, mortgage or other real lien voluntarily
and conventionally constituted by the issuer less asset balances of derivative financial instruments, taken to cover exchange
rate or interest rate risks on financial liabilities and under "Other Current Financial Assets" and "Other non-current
Financial Assets" of the Issuer’s Consolidated Statement of Financial Position.
As of June 30, 2020, this index equals
1.55 times.
|
|
·
|
Not
lose, sell, assign, or transfer to a third party any other territory of Argentina or
Brazil, which as of the issuance date of local bonds Series C, D and E is franchised
by TCCC to the Issuer for the development, production, sale and distribution of products
and brands of such licensor, as long as any of these territories account for more than
40% of the Issuer's Adjusted Consolidated Operating Cash Flow of the audited period immediately
before the moment of loss, sale, assignment or transfer. For these purposes, the term
"Adjusted Consolidated Operating Cash Flow" shall mean the addition of the
following accounting accounts of the Issuer's Consolidated Statement of Financial Position:
(i) "Gross Profit" which includes regular activities and cost of sales; less
(ii) "Distribution Costs"; less (iii) "Administrative Expenses";
plus (iv) "Participation in profits (losses) of associates and joint ventures that
are accounted for using the equity method"; plus (v) "Depreciation"; plus
(vi) "Intangibles Amortization".
|
As of June
30, 2020 and December 31, 2019, the Company complies with all financial collaterals.
17.2.6 Repurchased
bonds
On January 21, 2020, the Company issued
corporate bonds on the international market for USD 300 million. The transaction consisted of the issuance of 30-year bonds with
bullet structure and an annual coupon rate of 3.950%. In parallel, derivatives (Cross Currency Swaps) have been contracted that
cover 100% of the financial obligations of the bond that are denominated in US dollars re-denominating that liability to UFs.
In addition to UF bonds, the Company holds
bonds that it has repurchased in full through companies that are included in the consolidation:
The subsidiary Rio de Janeiro Refrescos
Ltda. maintains a liability corresponding to a bond issuance for US $75 million due in December 2020 and semi-annual interest
payments. As of December 31, 2019, these issues are held by Andina. On January 1, 2013, Abisa Corp S.A. transferred the totality
of this asset to Embotelladora are Andina S.A., the latter becoming the creditor of the above-mentioned Brazilian subsidiary.
Consequently, the assets and liabilities related to the transaction have been eliminated from these Consolidated Financial Statements.
In addition, the transaction has been treated as a net investment of the group in the Brazilian subsidiary; consequently, the
effects of exchange rate differences between the dollar and the functional currency of each one has been recorded in other comprehensive
income.
17.3 Derivative
contract obligations
Please see details in Note 22
17.4.1 Current
liabilities for leasing agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
Total
|
|
|
Indebted
Entity
|
|
Creditor
Entity
|
|
|
|
Type of
|
|
Effective
|
|
|
Nominal
|
|
|
Up
to
|
|
|
90
days to
|
|
|
at
|
|
|
at
|
|
|
Name
|
|
Country
|
|
Taxpayer ID
|
|
Name
|
|
Country
|
|
Currency
|
|
Amortization
|
|
Rate
|
|
|
Rate
|
|
|
90
days
|
|
|
1
year
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Cogeração
- Light ESCO
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
13.00
|
%
|
|
|
12.28
|
%
|
|
|
147,171
|
|
|
|
593,258
|
|
|
|
740,429
|
|
|
|
839,502
|
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Tetra
Pack
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
7.65
|
%
|
|
|
7.39
|
%
|
|
|
73,491
|
|
|
|
213,676
|
|
|
|
287,167
|
|
|
|
360,854
|
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Property
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
8.20
|
%
|
|
|
8.20
|
%
|
|
|
71,089
|
|
|
|
156,577
|
|
|
|
227,666
|
|
|
|
300,338
|
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Leão
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
6.56
|
%
|
|
|
6.56
|
%
|
|
|
102,683
|
|
|
|
243,123
|
|
|
|
345,806
|
|
|
|
497,386
|
|
|
Embotelladora
del Atlántico S.A.
|
|
Argentina
|
|
Foreign
|
|
Tetra
Pak SRL
|
|
Argentina
|
|
USD
|
|
Monthly
|
|
|
12.00
|
%
|
|
|
12.00
|
%
|
|
|
24,105
|
|
|
|
72,314
|
|
|
|
96,419
|
|
|
|
132,815
|
|
|
Embotelladora
del Atlántico S.A.
|
|
Argentina
|
|
Foreign
|
|
Banco
Comafi
|
|
Argentina
|
|
USD
|
|
Monthly
|
|
|
12.00
|
%
|
|
|
12.00
|
%
|
|
|
36,077
|
|
|
|
108,231
|
|
|
|
144,308
|
|
|
|
88,739
|
|
|
Embotelladora
del Atlántico S.A.
|
|
Argentina
|
|
Foreign
|
|
Property
|
|
Argentina
|
|
ARS
|
|
Monthly
|
|
|
50.00
|
%
|
|
|
50.00
|
%
|
|
|
46,482
|
|
|
|
88,259
|
|
|
|
134,741
|
|
|
|
189,320
|
|
|
Vital
Aguas S.A.
|
|
Chile
|
|
76.389.720-6
|
|
Coca
Cola del Valle New Ventures S.A
|
|
Chile
|
|
CLP
|
|
Linear
|
|
|
6.20
|
%
|
|
|
6.20
|
%
|
|
|
284,574
|
|
|
|
867,937
|
|
|
|
1,152,511
|
|
|
|
1,169,884
|
|
|
Envases
Central S.A.
|
|
Chile
|
|
96.705.990-0
|
|
Coca
Cola del Valle New Ventures S.A
|
|
Chile
|
|
CLP
|
|
Linear
|
|
|
6.20
|
%
|
|
|
6.20
|
%
|
|
|
556,316
|
|
|
|
1,696,892
|
|
|
|
2,253,208
|
|
|
|
2,198,998
|
|
|
Paraguay
Refrescos S.A.
|
|
Paraguay
|
|
80.003.400-7
|
|
Tetra
Pack Ltda. Suc. Py
|
|
Paraguay
|
|
PGY
|
|
Monthly
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
64,561
|
|
|
|
187,908
|
|
|
|
252,469
|
|
|
|
235,699
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
5,634,724
|
|
|
|
6,013,535
|
|
The Company maintains lease agreements
on forklifts, vehicles, real estate and machinery. These leases have an average life of between one and eight years without including
a renewal option in the contracts.
17.4.2 Non-current
liabilities for leasing agreements, non-current
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
Indebted
Entity
|
|
Creditor Entity
|
|
|
|
Type of
|
|
Effective
|
|
|
Nominal
|
|
|
1
year to
|
|
|
2
years to
|
|
|
3
years to
|
|
|
4
years to
|
|
|
more
tan
|
|
|
at
|
|
|
Name
|
|
Country
|
|
Taxpayer
ID
|
|
Name
|
|
Country
|
|
Currency
|
|
Amortization
|
|
Rate
|
|
|
Rate
|
|
|
2
years
|
|
|
3
years
|
|
|
4
years
|
|
|
5
years
|
|
|
5
years
|
|
|
06.30.2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Cogeração
- Light ESCO
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
13.00
|
%
|
|
|
12.28
|
%
|
|
|
813,976
|
|
|
|
919,793
|
|
|
|
977,753
|
|
|
|
1,104,861
|
|
|
|
6,068,813
|
|
|
|
9,885,196
|
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Tetra
Pack|
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
7.65
|
%
|
|
|
7.39
|
%
|
|
|
128,312
|
|
|
|
41,487
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
169,799
|
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Property
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
8.20
|
%
|
|
|
8.20
|
%
|
|
|
52,183
|
|
|
|
1,680
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
53,863
|
|
|
Rio
de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Leão
Alimentos e Bebidas Ltda.
|
|
Brazil
|
|
BRL
|
|
Monthly
|
|
|
6.56
|
%
|
|
|
6.56
|
%
|
|
|
289,146
|
|
|
|
283,175
|
|
|
|
267,380
|
|
|
|
267,261
|
|
|
|
169,731
|
|
|
|
1,276,693
|
|
|
Embotelladora
del Atlántico S.A.
|
|
Argentina
|
|
Foreign
|
|
Tetra
Pak SRL
|
|
Argentina
|
|
USD
|
|
Monthly
|
|
|
12.00
|
%
|
|
|
12.00
|
%
|
|
|
-
|
|
|
|
72,314
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
72,314
|
|
|
Embotelladora
del Atlántico S.A.
|
|
Argentina
|
|
Foreign
|
|
Banco
Comafi
|
|
Argentina
|
|
USD
|
|
Monthly
|
|
|
12.00
|
%
|
|
|
12.00
|
%
|
|
|
-
|
|
|
|
288,617
|
|
|
|
-
|
|
|
|
288,617
|
|
|
|
156,380
|
|
|
|
733,614
|
|
|
Embotelladora
del Atlántico S.A.
|
|
Argentina
|
|
Foreign
|
|
Property
|
|
Argentina
|
|
ARS
|
|
Monthly
|
|
|
50.00
|
%
|
|
|
50.00
|
%
|
|
|
-
|
|
|
|
106,232
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
106,232
|
|
|
Vital Aguas S.A
|
|
Chile
|
|
76.572.588-7
|
|
Coca
Cola del Valle New Ventures S.A.
|
|
Chile
|
|
CLP
|
|
Monthly
|
|
|
6.2
|
%
|
|
|
0.27
|
%
|
|
|
1,697,609
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,697,609
|
|
|
Envases
Central S.A
|
|
Chile
|
|
76.572.588-7
|
|
Coca
Cola del Valle New Ventures S.A.
|
|
Chile
|
|
CLP
|
|
Monthly
|
|
|
6.7
|
%
|
|
|
0.27
|
%
|
|
|
4,122,411
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,122,411
|
|
|
Paraguay
Refrescos SA
|
|
Paraguay
|
|
80.003.400-7
|
|
Tetra
Pack Ltda. Suc. Py
|
|
Paraguay
|
|
PGY
|
|
Monthly
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
-
|
|
|
|
314,444
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
314,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
18,432,175
|
|
17.4.3 Non-current liabilities for leasing agreements (previous
year)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturity
|
|
|
|
|
|
|
|
Indebted
Entity
|
|
Creditor
Entity
|
|
|
|
Type
of
|
|
Effective
|
|
|
Nominal
|
|
|
1 year to
|
|
|
2 years to
|
|
|
3 years to
|
|
|
4 years to
|
|
|
more tan
|
|
|
at
|
|
|
Name
|
|
Country
|
|
Taxpayer ID
|
|
Name
|
|
Country
|
|
|
Currency
|
|
Amortization
|
|
Rate
|
|
|
Rate
|
|
|
2
years
|
|
|
3
years
|
|
|
4
years
|
|
|
5
years
|
|
|
5
years
|
|
|
12.31.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Rio de Janeiro Refrescos
Ltda.
|
|
Brazil
|
|
Foreign
|
|
Cogeração - Light ESCO
|
|
Brazil
|
|
|
BRL
|
|
Monthly
|
|
|
13.00
|
%
|
|
|
12.28
|
%
|
|
|
948,466
|
|
|
|
1,071,766
|
|
|
|
1,211,096
|
|
|
|
1,368,538
|
|
|
|
8,101,730
|
|
|
|
12,701,596
|
|
|
Rio de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Tetra Pack|
|
|
Brazil
|
|
|
BRL
|
|
Monthly
|
|
|
7.65
|
%
|
|
|
7.39
|
%
|
|
|
271,264
|
|
|
|
111,005
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
382,269
|
|
|
Rio de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Property
|
|
Brazil
|
|
|
BRL
|
|
Monthly
|
|
|
8.20
|
%
|
|
|
8.20
|
%
|
|
|
97,784
|
|
|
|
9,144
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
106,928
|
|
|
Rio de Janeiro Refrescos Ltda.
|
|
Brazil
|
|
Foreign
|
|
Leão Alimentos e Bebidas Ltda.
|
|
Brazil
|
|
|
BRL
|
|
Monthly
|
|
|
6.56
|
%
|
|
|
6.56
|
%
|
|
|
365,671
|
|
|
|
355,172
|
|
|
|
339,020
|
|
|
|
331,185
|
|
|
|
375,688
|
|
|
|
1,766,736
|
|
|
Embotelladora del Atlántico
S.A.
|
|
Argentina
|
|
Foreign
|
|
Tetra Pak SRL
|
|
Argentina
|
|
|
USD
|
|
Monthly
|
|
|
12.00
|
%
|
|
|
12.00
|
%
|
|
|
-
|
|
|
|
398,442
|
|
|
|
-
|
|
|
|
343,104
|
|
|
|
-
|
|
|
|
741,546
|
|
|
Embotelladora del Atlántico
S.A.
|
|
Argentina
|
|
Foreign
|
|
Banco Comafi
|
|
Argentina
|
|
|
USD
|
|
Monthly
|
|
|
12.00
|
%
|
|
|
12.00
|
%
|
|
|
-
|
|
|
|
110,924
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
110,924
|
|
|
Embotelladora del Atlántico
S.A.
|
|
Argentina
|
|
Foreign
|
|
Property
|
|
Argentina
|
|
|
ARS
|
|
Monthly
|
|
|
50.00
|
%
|
|
|
50.00
|
%
|
|
|
-
|
|
|
|
55,222
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
55,222
|
|
|
Vital Aguas S.A
|
|
Chile
|
|
76.572.588-7
|
|
Coca Cola del Valle New Ventures
S.A
|
|
Chile
|
|
|
CLP
|
|
Monthly
|
|
|
6.2
|
%
|
|
|
0.27
|
%
|
|
|
2,242,278
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,242,278
|
|
|
Envases Central S.A
|
|
Chile
|
|
76.572.588-7
|
|
Coca Cola del Valle New Ventures
S.A
|
|
Chile
|
|
|
CLP
|
|
Monthly
|
|
|
6.7
|
%
|
|
|
0.27
|
%
|
|
|
4,947,745
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,947,745
|
|
|
Paraguay
Refrescos SA
|
|
Paraguay
|
|
80.003.400-7
|
|
Tetra Pack Ltda. Suc. Py
|
|
Paraguay
|
|
|
PGY
|
|
Monthly
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
|
399,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
399,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
23,454,700
|
|
Leasing agreement obligations are not
subject to financial restrictions for the reported periods.
18 – TRADE AND OTHER
ACCOUNTS PAYABLE
Trade and other current accounts payable are detailed as follows:
|
Classification
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Current
|
|
|
174,134,864
|
|
|
|
243,700,553
|
|
|
Non-current
|
|
|
343,414
|
|
|
|
619,587
|
|
|
Total
|
|
|
174,478,278
|
|
|
|
244,320,140
|
|
|
Description
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Trade accounts payable
|
|
|
123,586,639
|
|
|
|
172,142,472
|
|
|
Withholding tax
|
|
|
32,712,912
|
|
|
|
53,326,254
|
|
|
Others
|
|
|
18,178,727
|
|
|
|
18,851,414
|
|
|
Total
|
|
|
174,478,278
|
|
|
|
244,320,140
|
|
19 – OTHER PROVISIONS, CURRENT AND NON-CURRENT
19.1 Balances
The composition of provisions is as follows:
|
Description
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Litigation (1)
|
|
|
57,499,744
|
|
|
|
69,107,550
|
|
|
Total
|
|
|
57,499,744
|
|
|
|
69,107,550
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
2,169,540
|
|
|
|
2,068,984
|
|
|
Non-current
|
|
|
55,330,204
|
|
|
|
67,038,566
|
|
|
Total
|
|
|
57,499,744
|
|
|
|
69,107,550
|
|
|
|
(1)
|
Correspond to the provision made for the probable losses of
fiscal, labor and commercial contingencies, based on the opinion of our legal advisors,
according to the following detail:
|
|
Description (see note 23.1)
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Tax contingencies
|
|
|
31,378,934
|
|
|
|
38,853,059
|
|
|
Labor contingencies
|
|
|
9,526,997
|
|
|
|
10,569,754
|
|
|
Civil contingencies
|
|
|
16,593,813
|
|
|
|
19,684,737
|
|
|
Total
|
|
|
57,499,744
|
|
|
|
69,107,550
|
|
19.2 Movements
The movement of principal provisions over litigation is detailed
as follows:
|
Detail
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Opening balance as of January 1
|
|
|
69,107,550
|
|
|
|
62,452,526
|
|
|
Additional provisions
|
|
|
122,899
|
|
|
|
121,003
|
|
|
Increase (decrease) in existing provisions(*)
|
|
|
(774,042
|
)
|
|
|
(13,085,051
|
)
|
|
Payments
|
|
|
819,517
|
|
|
|
21,506,141
|
|
|
Adjustment to existing provision
|
|
|
-
|
|
|
|
(2,511,589
|
)
|
|
Increase (decrease) due to foreign exchange differences
|
|
|
(11,776,180
|
)
|
|
|
624,520
|
|
|
Total
|
|
|
57,499,744
|
|
|
|
69,107,550
|
|
(*) During 2019, provisions
consisting of fines demanded by the Brazilian tax authority on the use of tax credits resulting from
favorable sentencing to Rio de Janeiro Refrescos Ltda. which are not present in 2020.
20 – OTHER CURRENT
NON-FINANCIAL LIABILITIES
Other current and non-current liabilities at each reporting
period end are detailed as follows:
|
Description
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Dividends payable
|
|
|
26,014,867
|
|
|
|
22,639,150
|
|
|
Others
|
|
|
3,829,972
|
|
|
|
3,863,065
|
|
|
Total
|
|
|
29,844,839
|
|
|
|
26,502,215
|
|
21 – EQUITY
21.1 Number
of shares:
|
|
|
Number of shares
subscribed at nominal value
|
|
|
Number of shares
paid in
|
|
|
Number of voting
shares
|
|
|
Series
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
A
|
|
|
473,289,301
|
|
|
|
473,289,301
|
|
|
|
473,289,301
|
|
|
|
473,289,301
|
|
|
|
473,289,301
|
|
|
|
473,289,301
|
|
|
B
|
|
|
473,281,303
|
|
|
|
473,281,303
|
|
|
|
473,281,303
|
|
|
|
473,281,303
|
|
|
|
473,281,303
|
|
|
|
473,281,303
|
|
21.1.1 Equity:
|
|
|
Subscribed
Capital
|
|
|
Paid-in capital
|
|
|
Series
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
A
|
|
|
135,379,504
|
|
|
|
135,379,504
|
|
|
|
135,379,504
|
|
|
|
135,379,504
|
|
|
B
|
|
|
135,358,070
|
|
|
|
135,358,070
|
|
|
|
135,358,070
|
|
|
|
135,358,070
|
|
|
Total
|
|
|
270,737,574
|
|
|
|
270,737,574
|
|
|
|
270,737,574
|
|
|
|
270,737,574
|
|
21.1.2 Rights
of each series:
|
|
·
|
Series
A: Elects 12 of the 14 Directors
|
|
|
|
|
|
|
·
|
Series
B: Receives an additional 10% of dividends distributed to Series A and elects 2 of the
14 Directors.
|
21.2 Dividend policy
According to Chilean law, cash dividends
must be paid equal to at least 30% of annual net profit, barring a unanimous vote by shareholders to the contrary. If there is
no net profit in a given year, the Company will not be legally obligated to pay dividends from retained earnings. At the ordinary
Shareholders’ Meeting held in April 2020, the shareholders agreed to pay out of the 2019 earnings a final dividend and another
additional dividend to the 30% required by Chile’s Law 18,046 which are paid in May 2020 and August 2020, respectively.
Pursuant to Circular Letter N° 1,945
of the Chilean Financial Market Commission (CMF) dated September 29, 2009, the Company’s Board of Directors decided to maintain
the initial adjustments from adopting IFRS as accumulated earnings for future distribution.
The dividends declared and paid per share
are presented below:
|
Periods
approved
- paid
|
|
Type
of dividend
|
|
|
Dividend allocation
income
|
|
|
CLP
Series A
|
|
|
CLP
Series
B
|
|
|
04.17.2019
|
|
|
08.29.2019
|
|
|
|
Additional
|
|
|
Accumulated Earnings
|
|
|
21.50
|
|
|
|
23.65
|
|
|
09.24.2019
|
|
|
10.24.2019
|
|
|
|
Interim
|
|
|
2019 Results
|
|
|
21.50
|
|
|
|
23.65
|
|
|
12.20.2019
|
|
|
01.23.2020
|
|
|
|
Interim
|
|
|
2019 Results
|
|
|
22.60
|
|
|
|
24.86
|
|
|
02.25.2020
|
|
|
05.29.2020
|
|
|
|
Final
|
|
|
2019 Results
|
|
|
26.00
|
|
|
|
28.60
|
|
|
02.25.2020
|
|
|
08.28.2020
|
|
|
|
Additional
|
|
|
Accumulated Earnings
|
|
|
26.60
|
|
|
|
28.60
|
|
21.3 Other Reserves
The balance of other reserves includes the following:
|
Description
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Goodwill in share exchange reserve
|
|
|
421,701,520
|
|
|
|
421,701,520
|
|
|
Translation differences reserves
|
|
|
(411,839,026
|
)
|
|
|
(344,307,255
|
)
|
|
Cash flow hedge reserves
|
|
|
(90,572,592
|
)
|
|
|
(12,994,206
|
)
|
|
Reserve for employee benefits actuarial gains or losses
|
|
|
(2,223,446
|
)
|
|
|
(1,954,077
|
)
|
|
Legal and statutory reserves
|
|
|
5,435,538
|
|
|
|
5,435,538
|
|
|
Other
|
|
|
6,014,568
|
|
|
|
6,014,583
|
|
|
Total
|
|
|
(71,483,438
|
)
|
|
|
73,896,103
|
|
21.3.1 Goodwill
in share exchange reserve
This amount corresponds to the difference
between the valuation at fair value of the issuance of shares of Embotelladora Andina S.A. and the book value of the paid capital
of Embotelladoras Coca-Cola Polar S.A., which was finally the value of the capital increase notarized in legal terms.
21.3.2 Cash flow
hedge reserve
They arise from the fair value of the
existing derivative contracts that have been qualified for hedge accounting at the end of each financial period. When contracts
are expired, these reserves are adjusted and recognized in the income statement in the corresponding period (see Note 22).
21.3.3 Reserve
for employee benefit actuarial gains or losses
Corresponds to the restatement effect
of employee benefits actuarial losses that according to IAS 19 amendments must be carried to other comprehensive income.
21.3.4 Legal and
statutory reserves
In accordance with Official Circular N°
456 issued by the Chilean Financial Market Commission (CMF), the legally required price-level restatement of paid-in capital for
2009 is presented as part of other equity reserves and is accounted for as a capitalization from Other Reserves with no impact
on net income or retained earnings under IFRS. This amount totaled CLP 5,435,538 thousand as of December 31, 2009.
21.3.5 Foreign
currency translation reserves
This corresponds to the conversion of
the financial statements of foreign subsidiaries whose functional currency is different from the presentation currency of the
Consolidated Financial Statements. Additionally, exchange differences between accounts receivable kept by the companies in Chile
with foreign subsidiaries are presented in this account, which have been treated as investment equivalents accounted for using
the equity method. Translation reserves are detailed as follows:
|
Details
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Brazil
|
|
|
(171,719,872
|
)
|
|
|
(117,744,296
|
)
|
|
Argentina
|
|
|
(255,586,081
|
)
|
|
|
(220,444,428
|
)
|
|
Paraguay
|
|
|
15,466,927
|
|
|
|
(6,118,516
|
)
|
|
Total
|
|
|
(411,839,026
|
)
|
|
|
(334,307,240
|
)
|
The movement of this reserve for the periods
ended on the dates indicated below, is detailed as follows:
|
Details
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Brazil
|
|
|
(72,925,754
|
)
|
|
|
(3,564,099
|
)
|
|
Argentina
|
|
|
(9,170,159
|
)
|
|
|
(19,326,248
|
)
|
|
Paraguay
|
|
|
9,333,227
|
|
|
|
(14,742,365
|
)
|
|
Total
|
|
|
(72,762,686
|
)
|
|
|
(37,632,712
|
)
|
21.4 Non-controlling
interests
This is the recognition of the portion
of equity and income from subsidiaries owned by third parties. This account is detailed as follows:
|
|
|
Non-controlling interests
|
|
|
|
|
Ownership interest
%
|
|
|
Shareholders’
Equity
|
|
|
Income
|
|
|
|
|
|
|
|
|
|
|
June
|
|
|
June
|
|
|
June
|
|
|
June
|
|
|
Description
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Embotelladora del Atlántico S.A.
|
|
|
0.0171
|
|
|
|
0.0171
|
|
|
|
25,081
|
|
|
|
27,382
|
|
|
|
440
|
|
|
|
2,764
|
|
|
Andina Empaques Argentina S.A.
|
|
|
0.0209
|
|
|
|
0.0209
|
|
|
|
2,455
|
|
|
|
2,468
|
|
|
|
30
|
|
|
|
224
|
|
|
Paraguay Refrescos S.A.
|
|
|
2.1697
|
|
|
|
2.1697
|
|
|
|
5,927,848
|
|
|
|
4,738,367
|
|
|
|
351,129
|
|
|
|
264,866
|
|
|
Vital S.A.
|
|
|
35.0000
|
|
|
|
35.0000
|
|
|
|
7,939,813
|
|
|
|
7,657,221
|
|
|
|
(43,960
|
)
|
|
|
(98,902
|
)
|
|
Vital Aguas S.A.
|
|
|
33.5000
|
|
|
|
33.5000
|
|
|
|
1,731,719
|
|
|
|
2,036,106
|
|
|
|
(103,927
|
)
|
|
|
38,592
|
|
|
Envases Central S.A.
|
|
|
40.7300
|
|
|
|
40.7300
|
|
|
|
5,384,099
|
|
|
|
4,991,689
|
|
|
|
72,087
|
|
|
|
156,413
|
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
21,011,015
|
|
|
|
19,453,233
|
|
|
|
275,799
|
|
|
|
363,957
|
|
21.5 Earnings per
share
The basic earnings per share presented
in the statement of comprehensive income is calculated as the quotient between income for the period and the average number of
shares outstanding during the same period.
Earnings per share used to calculate basic
and diluted earnings per share is detailed as follows:
|
Earnings per share
|
|
06.30.2020
|
|
|
|
|
SERIES A
|
|
|
SERIES B
|
|
|
Earnings attributable to shareholders (CLP
000’s)
|
|
|
23,236,673
|
|
|
|
25,559,928
|
|
|
Average weighted number of shares
|
|
|
473,289,301
|
|
|
|
473,281,303
|
|
|
Earnings per share (in CLP)
|
|
|
49.10
|
|
|
|
54.01
|
|
|
Earnings per share
|
|
06.30.2019
|
|
|
|
|
SERIES A
|
|
|
SERIES B
|
|
|
Earnings attributable to shareholders (CLP 000’s)
|
|
|
29,342,166
|
|
|
|
32,275,863
|
|
|
Average weighted number of shares
|
|
|
473,289,301
|
|
|
|
473,281,303
|
|
|
Earnings per share (in CLP)
|
|
|
62.00
|
|
|
|
68.20
|
|
22 – DERIVATIVE ASSETS AND LIABILITIES
Embotelladora Andina currently maintains
“Cross Currency Swaps” and “Currency Forward” agreements as derivative financial instruments.
Cross Currency Swaps ("CCS"),
also known as interest rate and currency swaps are valued by the method of discounted future cash flows at a market rate corresponding
to the currencies and rates of the transaction.
On the other hand, the fair value of forward
currency contracts is calculated in reference to current forward exchange rates for contracts with similar maturity profiles.
As of June 30, 2020 and December 31, 2019,
the Company held the following derivative instruments:
22.1 Currency
swap of items recognized for accounting purposes
Cross Currency Swaps associated with Local Bonds (Chile)
At the closing date of these financial
statements, the Company maintains derivative contracts to secure part of its bond liabilities issued in Unidades de Fomento
totaling UF 10,271,585, to convert these obligations to Chilean pesos.
These contracts were valued at their fair
values, yielding a net asset of CLP 1,701,250 thousand at the closing date of the financial statements which is presented under
other non-current financial assets. The expiration date of derivative contracts is distributed in the years 2026, 2031, 2034 and
2035.
Cross Currency Swaps associated with
International Bonds (US)
At the closing date of these financial
statements, the Company maintains derivatives contracts to secure US Dollar public bond obligations of USD 360 million due in
2023, to convert such obligations into Brazilian Real. In addition, derivative contracts amounting to USD 300 million are held
to convert such obligation into Unidades de Fomento (UF - CLP re-adjustable by the Consumer Price Index) due in 2050. The net
valuation of both contracts was made at fair values, yielding a net asset of CLP 63,143,002 thousand at the closing date of the
financial statements.
The amount of exchange differences recognized
in the statement of income related to financial liabilities in U.S. dollars and are absorbed by the amounts recognized under comprehensive
income.
22.2. Forward currency transactions expected to be very
likely:
During 2020 and 2019, Embotelladora Andina
entered into forward contracts to ensure the exchange rate on future commodity purchasing needs for its 4 operations, i.e. closing
USD/ARS, USD/BRL, USD/CLP and USD/GYP forward instruments. As of June 30, 2020, outstanding contracts amount to USD 42.62 million
(USD 46.9 million as of December 31, 2019).
Futures contracts that ensure prices of
future raw materials have not been designated as hedge agreements, since they do not fulfill IFRS documentation requirements,
whereby its effects on variations in fair value are accounted for directly under statements of income in the "other gains
and losses" account.
Fair value hierarchy
As of June 30, 2020, the Company held
assets for derivative contracts for CLP 168,327,017 thousand (CLP 99,235,662 thousand as of December 31, 2019) and held liabilities
for derivative contracts as of June 30, 2020 for CLP 102,163,892 thousand (CLP 374,576 thousand as of December 31, 2019). Those
contracts covering existing items have been classified in the same category of hedged, the net amount of derivative contracts
by concepts covering forecasted items have been classified in financial assets and financial liabilities. All the derivative contracts
are carried at fair value in the consolidated statement of financial position. The Company uses the following hierarchy for determining
and disclosing the fair value of financial instruments by valuation technique:
Level 1:
quoted (unadjusted) prices in active markets for identical assets or liabilities
Level
2: Inputs other than quoted prices included in level 1 that are observable for the assets and liabilities, either directly (that
is, as prices) or indirectly (that is, derived from prices)
Level
3: Inputs for assets and liabilities that are not based on observable market data.
During the
reporting period, there were no transfers of items between fair value measurement categories; all of which were valued during
the period using level 2.
|
|
|
Fair Value
Measurements at June 30, 2020
|
|
|
|
|
|
|
|
Quoted
prices in active
markets for identical
assets or liabilities
|
|
|
|
Observable
market data
|
|
Unobservable market data
|
|
|
|
|
|
|
|
|
(Level
1)
|
|
|
|
(Level
2)
|
|
(Level 3)
|
|
|
Total
|
|
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
CLP
(000’S)
|
|
|
CLP
(000’S)
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current financial assets
|
|
|
-
|
|
|
|
1,416,422
|
|
-
|
|
|
1,416,422
|
|
|
Other non-current financial assets
|
|
|
-
|
|
|
|
166,910,595
|
|
-
|
|
|
166,910,595
|
|
|
Total assets
|
|
|
-
|
|
|
|
168,327,017
|
|
-
|
|
|
168,327,017
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current financial liabilities
|
|
|
-
|
|
|
|
97,548
|
|
-
|
|
|
97,548
|
|
|
Other non-current financial liabilities
|
|
|
-
|
|
|
|
102,066,343
|
|
-
|
|
|
102,066,343
|
|
|
Total liabilities
|
|
|
-
|
|
|
|
102,163,891
|
|
-
|
|
|
102,163,891
|
|
|
|
|
Fair Value
Measurements at December 31, 2019
|
|
|
|
|
|
|
|
Quoted prices
in active
markets for identical
assets or liabilities
|
|
|
|
Observable
market
data
|
|
Unobservable market data
|
|
|
|
|
|
|
|
|
(Level
1)
|
|
|
|
(Level
2)
|
|
(Level 3)
|
|
|
Total
|
|
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
CLP
(000’s)
|
|
|
CLP
(000’s)
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
Other
current financial assets
|
|
|
-
|
|
|
|
317.205
|
|
|
|
|
317.205
|
|
|
Other non-current financial assets
|
|
|
-
|
|
|
|
98.918.457
|
|
-
|
|
|
98.918.457
|
|
|
Total assets
|
|
|
-
|
|
|
|
99.235.662
|
|
-
|
|
|
99.235.662
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current financial liabilities
|
|
|
-
|
|
|
|
374.576
|
|
-
|
|
|
374.576
|
|
|
Total liabilities
|
|
|
-
|
|
|
|
374.576
|
|
-
|
|
|
374.576
|
|
23 – LITIGATION AND CONTINGENCIES
23.1 Lawsuits
and other legal actions:
In the opinion of the Company's legal
counsel, the Parent Company and its subsidiaries do not face legal or extrajudicial contingencies that might result in material
or significant losses or gains, except for the following:
1) Embotelladora
del Atlántico S.A. faces labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency
of a probable loss because of these lawsuits, totaling CLP 938,303 thousand. Management considers it unlikely that non-provisioned
contingencies will affect the Company's income and equity, based on the opinion of its legal counsel. Additionally, Embotelladora
del Atlántico S.A. maintains time deposits for an amount of CLP 480,682 thousand to guaranty judicial liabilities
2) Rio
de Janeiro Refrescos Ltda. faces labor, tax, civil and trade lawsuits. Accounting provisions have been made for the contingency
of a probable loss because of these lawsuits, totaling CLP 54,377,860 thousand. Management considers it unlikely that non-provisioned
contingencies will affect the Company's income and equity, based on the opinion of its legal counsel. As it is customary in Brazil,
Rio de Janeiro Refrescos Ltda. maintains Deposit in courts and assets given in pledge to secure the compliance of certain processes,
irrespective of whether these have been classified as a possible, probable or remote. The amounts deposited or pledged as legal
guarantees As of June 30, 2020 and December 31, 2019 , amounted to CLP 26,496,250 thousand and CLP 32,166,823 thousand, respectively.
Part of the assets held under warranty by Rio de
Janeiro Refrescos Ltda. as of December 31, 2014, are in the process of being released and others have already been released in
exchange for guarantee insurance and bond letters for BRL 1,217,416,760.43, with different Financial Institutions and Insurance
Companies in Brazil, these entities receive an annual commission fee of 0.91%. and become responsible of fulfilling obligations
with the Brazilian tax authorities should any trial result against Rio de Janeiro Refrescos Ltda. Additionally, if the warranty
and bail letters are executed, Rio de Janeiro Refrescos Ltda. promises to reimburse to the financial institutions and Insurance
Companies any amounts disbursed by them to the Brazilian government.
Main contingencies faced by
Rio de Janeiro Refrescos are as follows:
|
|
a)
|
Tax contingencies resulting from
credits on tax on industrialized products (IPI).
|
Rio de Janeiro Refrescos is
a party to a series of proceedings under way, in which the Brazilian federal tax authorities demand payment of value-added tax
on industrialized products (Imposto sobre Produtos Industrializados, or IPI) allegedly owed by ex-Companhia de Bebidas
Ipiranga. The initial amount demanded reached BRL 1,330,473,161 (historical amount without adjustments), corresponding to different
trials related to the same cause. In September 2014, one of these trials for BRL 598,745,218, was settled in favor of the Company,
however, there are new lawsuits arising after the purchase of ex-Companhia de Bebidas Ipiranga (October 2013) that amount to BRL
377,661,670.
The Company does not share
the position of the Brazilian tax authority in these procedures and considers that Companhia de Bebidas Ipiranga was entitled
to claim IPI tax credits in connection with purchases of certain exempt raw materials from suppliers located in the Manaus free
trade zone.
Based on the opinion of its
advisers, and legal outcomes to date, Management estimates that these procedures do not represent probable losses and has not
recorded a provision on these matters.
Notwithstanding the above,
the IFRS related to business combination in terms of distribution of the purchase price establish that contingencies must be measured
one by one according to their probability of occurrence and discounted at fair value from the date on which it is deemed the loss
can be generated. According to this criterion, from a total of identified contingencies amounting BRL 698,997,678 (including readjustments
of current lawsuits), the Company recorded a provision for the beginning of business combination accounting in the amount BRL
214,731,590 equivalent to CLP 39,888,389 thousand.
|
|
b)
|
Tax contingencies on ICMS and IPI
causes.
|
They refer mainly to tax settlements
issued by advance appropriation of ICMS credits on fixed assets, payment of the replacement of ICMS tax to the operations, untimely
IPI credits calculated on bonuses, among other claims.
The Company does not consider that these judgments
will result in significant losses, given that their loss, according to its legal counsel, is considered unlikely. However, the
accounting standards of financial information related to business combination in terms of distribution of the purchase price,
establish contingencies must be valued one by one according to their probability of occurrence and discounted to fair value from
the date on which it is deemed that the loss can be generated. Based on this criterion, a starting provision has been made in
the accounting of the business combination for BRL 80,218,414 equivalent to CLP 14,901,316 thousand.
3) Embotelladora
Andina S.A. and its Chilean subsidiaries face labor, tax, civil and trade lawsuits. Accounting provisions have been made for the
contingency of a probable loss because of these lawsuits, totaling CLP 2,165,914 thousand. Management considers it is unlikely
that non-provisioned contingencies will affect income and equity of the Company, in the opinion of its legal advisors.
|
|
4)
|
Paraguay Refrescos S.A. faces tax,
trade, labor and other lawsuits. Accounting provisions have been made for the contingency
of any loss because of these lawsuits amounting to CLP 3,627 thousand. Management considers
it is unlikely that non-provisioned contingencies will affect income and equity of the
Company, in the opinion of its legal advisors.
|
23.2 Direct
guarantees and restricted assets:
Guarantees and restricted assets are detailed
as follows:
Guarantees that commit assets included
in the financial statements:
|
|
|
|
|
|
|
Committed
assets
|
|
Accounting
value
|
|
|
Guaranty
creditor
|
|
Debtor
name
|
|
Relationship
|
|
Guaranty
|
|
Type
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Transportes San Martin
|
|
Embotelladora Andina S.A.
|
|
Parent Company
|
|
Cash
|
|
Trade accounts and other account receivable
|
|
|
2,860
|
|
|
|
2,805
|
|
|
Cooperativa Agricola Pisquera Elqui Limitada
|
|
Embotelladora Andina S.A.
|
|
Parent Company
|
|
Cash
|
|
Other non-current financial assets
|
|
|
1,216,865
|
|
|
|
1,216,865
|
|
|
Inmob. e invers. supetar Ltda.
|
|
Transportes Polar
|
|
Subsidiary
|
|
Cash
|
|
Other non-current non-financial assets
|
|
|
4,579
|
|
|
|
4,579
|
|
|
María Lobos Jamet
|
|
Transportes Polar
|
|
Subsidiary
|
|
Cash
|
|
Other non-current non-financial assets
|
|
|
2,565
|
|
|
|
2,565
|
|
|
Bodega San Francisco
|
|
Transportes Polar
|
|
Subsidiary
|
|
Cash
|
|
Other non-current non-financial assets
|
|
|
6,483
|
|
|
|
6,483
|
|
|
Workers Claims
|
|
Rio de Janeiro Refrescos Ltda.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
5,790,931
|
|
|
|
6,600,863
|
|
|
Civil and tax claims
|
|
Rio de Janeiro Refrescos Ltda.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
9,914,307
|
|
|
|
12,186,432
|
|
|
Governmental institutions
|
|
Rio de Janeiro Refrescos Ltda.
|
|
Subsidiary
|
|
Plant and Equipment
|
|
Property, plant & equipment
|
|
|
10,790,801
|
|
|
|
13,379,610
|
|
|
Distribuidora Baraldo S.H.
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
233
|
|
|
|
250
|
|
|
Acuña Gomez
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
350
|
|
|
|
375
|
|
|
Nicanor López
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
250
|
|
|
|
268
|
|
|
Labarda
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
4
|
|
|
|
5
|
|
|
Municipalidad Bariloche
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
33,854
|
|
|
|
36,313
|
|
|
Municipalidad San Antonio Oeste
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
25,729
|
|
|
|
27,598
|
|
|
Municipalidad Carlos Casares
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
1,040
|
|
|
|
1,116
|
|
|
Municipalidad Chivilcoy
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
160,913
|
|
|
|
172,602
|
|
|
Others
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
50
|
|
|
|
53
|
|
|
Granada Maximiliano
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
2,098
|
|
|
|
2,250
|
|
|
Cicsa
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Cash deposit
|
|
Other current non-financial assets
|
|
|
2,917
|
|
|
|
3,128
|
|
|
Several lessors
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Cash deposit
|
|
Other current non-financial assets
|
|
|
15,943
|
|
|
|
15,289
|
|
|
Aduana de EZEIZA
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Cash deposit
|
|
Other current non-financial assets
|
|
|
394
|
|
|
|
422
|
|
|
Municipalidad de Junin
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
335
|
|
|
|
360
|
|
|
Almada Jorge
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
2,847
|
|
|
|
3,054
|
|
|
Mirgoni Marano
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
71
|
|
|
|
76
|
|
|
Farias Matias Luis
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
1,306
|
|
|
|
1,401
|
|
|
Temas Industriales SA - Embargo General de Fondos
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
146,143
|
|
|
|
156,759
|
|
|
DBC SA C CERVECERIA ARGENTINA SA ISEMBECK
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
26,224
|
|
|
|
28,129
|
|
|
Coto Cicsa
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
4,662
|
|
|
|
5,001
|
|
|
Cencosud
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
2,914
|
|
|
|
3,125
|
|
|
Kreitzer Jose Luis, Beade Alexis Y Bechetti Cesa
|
|
Embotelladora del Atlántico S.A.
|
|
Subsidiary
|
|
Judicial deposit
|
|
Other non-current non-financial assets
|
|
|
11,541
|
|
|
|
-
|
|
|
Marcus A.Peña
|
|
Paraguay Refrescos
|
|
Subsidiary
|
|
Property
|
|
Property, plant & equipment
|
|
|
4,567
|
|
|
|
3,955
|
|
|
Mauricio J Cordero C
|
|
Paraguay Refrescos
|
|
Subsidiary
|
|
Property
|
|
Property, plant & equipment
|
|
|
953
|
|
|
|
917
|
|
|
José Ruoti Maltese
|
|
Paraguay Refrescos
|
|
Subsidiary
|
|
Property
|
|
Property, plant & equipment
|
|
|
767
|
|
|
|
738
|
|
|
Alejandro Galeano
|
|
Paraguay Refrescos
|
|
Subsidiary
|
|
Property
|
|
Property, plant & equipment
|
|
|
1,325
|
|
|
|
1,275
|
|
|
Ana Maria Mazó
|
|
Paraguay Refrescos
|
|
Subsidiary
|
|
Property
|
|
Property, plant & equipment
|
|
|
1,261
|
|
|
|
1,213
|
|
Guarantees provided without obligation
of assets included in the financial statements:
|
|
|
|
|
|
|
|
|
Committed
assets
|
|
|
Amounts involved
|
|
|
Guaranty
Creditor
|
|
Debtor
name
|
|
|
Relationship
|
|
|
Guaranty
|
|
Type
|
|
|
06.30.2020
|
|
|
|
12.31.2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
Labor procedures
|
|
Rio de Janeiro Refrescos Ltda.
|
|
|
Subsidiary
|
|
|
Guaranty receipt
|
|
Legal proceeding
|
|
|
2,007,186
|
|
|
|
2,601,353
|
|
|
Administrative procedures
|
|
Rio de Janeiro Refrescos Ltda.
|
|
|
Subsidiary
|
|
|
Guaranty receipt
|
|
Legal proceeding
|
|
|
8,389,793
|
|
|
|
8,233,853
|
|
|
Federal Government
|
|
Rio de Janeiro Refrescos Ltda.
|
|
|
Subsidiary
|
|
|
Guaranty receipt
|
|
Legal proceeding
|
|
|
118,658,646
|
|
|
|
116,192,877
|
|
|
State Government
|
|
Rio de Janeiro Refrescos Ltda.
|
|
|
Subsidiary
|
|
|
Guaranty receipt
|
|
Legal proceeding
|
|
|
49,115,972
|
|
|
|
43,015,207
|
|
|
Sorocaba Refrescos
|
|
Rio de Janeiro Refrescos Ltda.
|
|
|
Associate
|
|
|
Loan
|
|
Guarantor
|
|
|
2,999,379
|
|
|
|
3,586,095
|
|
|
Others
|
|
Rio de Janeiro Refrescos Ltda.
|
|
|
Subsidiary
|
|
|
Guaranty receipt
|
|
Legal proceeding
|
|
|
1,403,744
|
|
|
|
3,236,092
|
|
|
Aduana de EZEIZA
|
|
Embotelladora del Atlántico S.A.
|
|
|
Subsidiary
|
|
|
Surety insurance
|
|
Faithful compliance of contract
|
|
|
216,643
|
|
|
|
673,854
|
|
|
Aduana de EZEIZA
|
|
Andina Empaques Argentina S.A.
|
|
|
Subsidiary
|
|
|
Surety insurance
|
|
Faithful compliance of contract
|
|
|
247,043
|
|
|
|
506,623
|
|
24 – FINANCIAL RISK MANAGEMENT
The Company’s businesses
are exposed to a variety of financial and market risks (including foreign exchange risk, interest rate risk and price risk). The
Company’s global risk management program focuses on the uncertainty of financial markets and seeks to minimize potential
adverse effects on the performance of the Company. The Company uses derivatives to hedge certain risks. A description of the primary
policies established by the Company to manage financial risks are provided below:
Interest Rate Risk
As of June 30, 2020, the Company maintains
all its debt liabilities at a fixed rate as to avoid fluctuations in financial expenses resulting from tax rate increases.
The Company’s greatest indebtedness
corresponds to seven contracts for own issued Chilean local bonds at a fixed rate for UF 16,097 million denominated in UF (“UF”),
debt indexed to inflation in Chile (Company sales are correlated with the UF variation), of which five of these Local Bonds have
been redenominated through Cross Currency Swaps to Chilean Pesos (CLP).
On the other hand, there is also the Company’s
indebtedness on the international market through two 144A/RegS Bonds at a fixed rate, one for USD 365 million, denominated in
dollars, and practically 100% of which has been re-denominated to BRL through Cross Currency Swaps, and another one for USD 300
million denominated in USD, and practically 100% of which has been re-denominated to Unidades de Fomento (UF) through Cross Currency
Swaps.
Credit risk
The credit risk to which the Company is
exposed comes mainly from trade accounts receivable maintained with retailers, wholesalers and supermarket chains in domestic
markets; and the financial investments held with banks and financial institutions, such as time deposits, mutual funds and derivative
financial instruments.
|
a.
|
Trade accounts receivable and other current accounts
receivable
|
Credit risk related to trade accounts
receivable is managed and monitored by the area of Finance and Administration of each business unit. The Company has a wide base
of more than 266 thousand clients implying a high level of atomization of accounts receivable, which are subject to policies,
procedures and controls established by the Company. In accordance with such policies, credits must be based objectively, non-discretionary
and uniformly granted to all clients of a same segment and channel, provided these will allow generating economic benefits to
the Company. The credit limit is checked periodically considering payment behavior. Trade accounts receivable pending of payment
are monitored on a monthly basis.
In accordance with Corporate Credit Policy,
the interruption of sale must be within the following framework: when a customer has outstanding debts for an amount greater than
USD 250,000, and over 60 days expired, sale is suspended. The General Manager in conjunction with the Finance and Administration
Manager authorize exceptions to this rule, and if the outstanding debt should exceed USD 1,000,000, and in order to continue operating
with that client, the authorization of the Chief Financial Officer is required. Notwithstanding the foregoing, each operation
can define an amount lower than USD 250,000 according to the country’s reality.
The impairment recognition policy establishes
the following criteria for provisions: 30% is provisioned for 31 to 60 days overdue, 60% between 60 and 91 days, 90% between 91
and 120 days overdue and 100% for more than 120 days. Exemption of the calculation of global impairment is given to credits whose
delays in the payment correspond to accounts disputed with the customer whose nature is known and where all necessary documentation
for collection is available, therefore, there is no uncertainty on recovering them. However, these accounts also have an impairment
provision as follows: 40% for 91 to 120 days overdue, 80% between 120 and 170, and 100% for more than 170 days.
|
iii.
|
Prepayment to suppliers
|
The Policy establishes that USD 25,000
prepayments can only be granted to suppliers if its value is properly and fully provisioned. The Treasurer of each subsidiary
must approve supplier warranties that the Company receives for prepayments before signing the respective service contract. In
the case of domestic suppliers, a warranty ballot (or the instrument existing in the country) shall be required, in favor of Andina
executable in the respective country, non-endorsable, payable on demand or upon presentation and its validity will depend on the
term of the contract. In the case of foreign suppliers, a stand-by credit letter will be required which shall be issued by a first
line bank; in the event that this document is not issued in the country where the transaction is done, a direct bank warranty
will be required. Subsidiaries can define the best way of safeguarding the Company’s assets for prepayments under USD 25,000.
In the case of Chile, we have insurance with Compañía
de Seguros de Crédito Continental S.A. (AA rating –according to Fitch Chile and Humphreys rating agencies) covering
the credit risk regarding trade debtors in Chile.
The rest of the operations do not have credit insurance, instead
mortgage guarantees are required for volume operations of wholesalers and distributors in the case of trade accounts receivables.
In the case of other debtors, different types of guarantees are required according to the nature of the credit granted.
Historically, uncollectible trade accounts have been lower
than 0.5% of the Company’s total sales.
The Company has a Policy that is applicable
to all the companies of the group in order to cover credit risks for financial investments, restricting both the types of instruments
as well as the institutions and degree of concentration. The companies of the group can invest in:
|
|
i.
|
Time deposits: only in banks or
financial institutions that have a risk rating equal or higher than Level 1 (Fitch) or
equivalent for deposits of less than 1 year and rated A or higher (S&P) or equivalent
for deposits of more than 1 year.
|
|
|
ii.
|
Mutual funds: investments with
immediate liquidity and no risk of capital (funds composed of investments at a fixed-term,
current account, fixed rate Tit BCRA, negotiable obligations, Over Night, etc.) in all
those counter-parties that have a rating greater than or equal to AA-(S&P) or equivalent,
Type 1 Pacts and Mutual Funds, with a rating greater than or equal to AA+ (S&P) or
equivalent.
|
|
|
iii.
|
Other investment alternatives must be evaluated and authorized
by the office of the Chief Financial Officer.
|
Exchange Rate Risk
The company is exposed to three types
of risk caused by exchange rate volatility:
a)
Exposure of foreign investment
This risk originates from the translation
of net investment from the functional currency of each country (Brazilian Real, Paraguayan Guaraní, and Argentine Peso)
to the Parent Company’s reporting currency (Chilean Peso). Appreciation or devaluation of the Chilean Peso with respect
to the functional currencies of each country, originates decreases and increases in equity, respectively. The Company does not
hedge this risk.
a.1 Investment in Argentina
As of June 30, 2020, the Company maintains
a net investment of CLP 154,411,518 thousand. in Argentina, composed by the recognition of assets amounting to CLP 228,906,987
thousand and liabilities amounting to CLP 74,495,469. These investments accounted for 20.5% of the Company’s consolidated
sales revenues
As of June 30, 2020, the Argentine peso
devalued by 6.8% with respect to the Chilean peso.
If
the exchange rate of the Argentine Peso devalued an additional 5% with respect to the Chilean Peso, the Company would have lower
income from the operation in Argentina of CLP 9,521 thousand and a decrease in equity of CLP 7,103,016 thousand, originated by
lower asset recognition of CLP 10,719,879 thousand and by lower liabilities recognition of CLP 3,616,863 thousand.
a.2 Investment
in Brazil
As
of June 30, 2020, the Company maintains a net investment of CLP 267,094,799 thousand in Brazil, composed by the recognition of
assets amounting to CLP 62,522,220 thousand and liabilities amounting to CLP 595,427,421 thousand. These investments accounted
for 34.9% of the Company's consolidated sales revenues.
As
of June 30, 2020, the Brazilian Real devalued by 19.3% with respect to the Chilean peso.
If
the exchange rate of the Brazilian Real devalued an additional 5% with respect to the Chilean Peso, the Company would have lower
income from the operation in Brazil of CLP 810,718 thousand and a decrease in equity of CLP 12,601,438 thousand, originated by
lower asset recognition of CLP 36,842,488 thousand and by lower liabilities recognition of CLP 24,241,050 thousand.
a.3 Investment
in Paraguay
As
of June 30, 2020, the Company maintains a net investment of CLP 273,205,641 thousand in Paraguay, composed by the recognition
of assets amounting to CLP 311,456,533 thousand and liabilities amounting to CLP 38,250,892 thousand. These investments accounted
for 9.6% of the Company's consolidated sales revenues.
As
of June 30, 2020, the Paraguayan Guarani appreciated by 4.0% with respect to the Chilean peso.
If
the exchange rate of the Paraguayan Guaraní devalued by 5% with respect to the Chilean Peso, the Company would have lower
income from the operations in Paraguay of CLP 770,620 thousand and a decrease in equity of CLP 12,250,806 thousand originated
by lower asset recognition of CLP 14,337,852 thousand and lower liabilities recognition of CLP 2,087,046 thousand.
b) Net
exposure of assets and liabilities in foreign currency
This
risk stems mostly from carrying liabilities in US dollar, so the volatility of the US dollar with respect to the functional currency
of each country generates a variation in the valuation of these obligations, with consequent effect on results.
In
order to protect the Company from the effects on income resulting from the volatility of the Brazilian Real and the Chilean Peso
against the U.S. dollar, the Company maintains derivative contracts (cross currency swaps) to cover almost 100% of US dollar-denominated
financial liabilities.
By
designating such contracts as hedging derivatives, the effects on income for variations in the Chilean Peso and the Brazilian
Real against the US dollar, are mitigated annulling its exposure to exchange rates.
c) Exposure of
assets purchased or indexed to foreign currency
This
risk originates from purchases of raw materials and investments in Property, plant and equipment, whose values are expressed in
a currency other than the functional currency of the subsidiary. Changes in the value of costs or investments can be generated
through time, depending on the volatility of the exchange rate.
In order to minimize this risk, the Company
maintains a currency hedging policy stipulating that it is necessary to enter into foreign currency derivatives contracts to lessen
the effect of the exchange rate over cash expenditures expressed in US dollars, corresponding mainly to payment to suppliers of
raw materials in each of the operations. This policy stipulates a 12-month forward horizon.
Commodities risk
The Company is subject to a risk of price
fluctuations in the international markets mainly for sugar, PET resin and aluminum, which are inputs used to produce beverages
and containers, which together, account for 35% to 40% of operating costs. Procurement and anticipated purchase contracts are
made frequently to minimize and/or stabilize this risk. To minimize this risk or stabilize often supply contracts and anticipated
purchases are made when market conditions warrant.
Liquidity risk
The products we sell are mainly paid for
in cash and short-term credit; therefore, the Company´s main source of financing comes from the cash flow of our operations.
This cash flow has historically been sufficient to cover the investments necessary for the normal course of our business, as well
as the distribution of dividends approved by the General Shareholders’ Meeting. Should additional funding be required for
future geographic expansion or other needs, the main sources of financing to consider are: (i) debt offerings in the Chilean
and foreign capital markets (ii) borrowings from commercial banks, both internationally and in the local markets where the
Company operates; and (iii) public equity offerings
The following table presents an analysis
of the Company’s committed maturities for liability payments throughout the coming years, with interest calculated for each
period:
|
|
|
Maturity
|
|
|
Item
|
|
1
year
|
|
|
More
than
1 up to 2
|
|
|
More
than
2 up to 3
|
|
|
More
than 3
up to 4
|
|
|
More
than 5
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Bank debt
|
|
|
377,189
|
|
|
|
742,191
|
|
|
|
0
|
|
|
|
0
|
|
|
|
0
|
|
|
Bonds payable
|
|
|
14,668,575
|
|
|
|
11,301,339
|
|
|
|
11,782,443
|
|
|
|
323,285,776
|
|
|
|
673,447,507
|
|
|
Lease obligations
|
|
|
15,609,812
|
|
|
|
16,499,967
|
|
|
|
16,061,461
|
|
|
|
12,006,989
|
|
|
|
18,613,277
|
|
|
Contractual obligations
|
|
|
40,450,493
|
|
|
|
4,753,536
|
|
|
|
3,810,975
|
|
|
|
2,743,297
|
|
|
|
2,721,520
|
|
|
Total
|
|
|
71,106,069
|
|
|
|
33,297,033
|
|
|
|
31,654,879
|
|
|
|
338,036,062
|
|
|
|
694,782,304
|
|
COVID-19-Related Risk
As a result of the impact that COVID-19
is having in different countries around the world, including its more recent outbreak in the countries where we operate, Coca-Cola
Andina has taken measures necessary to protect its employees and to ensure the continuity of the Company’s operations.
Among the measures it has adopted to protect
its employees are the following:
|
|
·
|
campaign
to educate our employees on actions to be taken to avoid the spread of COVID-19;
|
|
|
·
|
sending
home any employee that has been exposed to the virus;
|
|
|
·
|
implementation
of additional cleaning protocols for our facilities;
|
|
|
·
|
modifying
certain work practices and activities, keeping customer service:
|
|
|
-
|
home
office has been implemented for those employees whose work can be performed remotely
|
|
|
-
|
domestic
and international traveling has been canceled
|
|
|
·
|
providing
personal protection items to all our employees who need to keep working at plants and
distribution centers, as well as to truck drivers and assistants, including face masks
and sanitizers.
|
Since mid-March, governments
of the countries where the Company operates, have adopted several measures to reduce infection rates of COVID-19. Among these
measures are, the closing of schools, universities, shopping centers, restaurants and bars, prohibiting social gathering events,
issuing stay-at-home orders and establishing quarantine requirements, imposing additional sanitary requirements on exports and
imports, and limiting international travel and closing borders. Governments in the countries where we operate have also announced
economic stimulus programs for families and businesses, including in Argentina a temporary restriction on workforce reductions.
To date, none of our plants has had to suspend their operations.
As a result of the COVID-19 pandemic and
the restrictions imposed by the authorities in the four countries where we operate, we have seen great volatility in our sales
across channels. During this period, at the consolidated level, we have observed a significant decline in our sales volumes on
the on-premise channel, consisting mainly of restaurants and bars, which have mostly been temporarily closed. We have also observed
a decrease in volume in the supermarket channel, and stable volumes in the traditional (mom & pops) and wholesale channels.
On consolidated terms, volume decreased by 20.8% in April, by 17.1% in May and by 4.2% in June, while July will be closing with
a similar decrease to that of June. Because the pandemic and the measures taken by governments are changing very rapidly, we believe
it is too early to draw conclusions about changes in the long-term consumption pattern, and how these may affect our operating
and financial results in the future.
Due to uncertainties regarding the COVID-19
pandemic and the above-mentioned government restrictions, including how long these conditions may persist, and the effects they
will have on our sales volumes and our business in general, we cannot accurately predict the ultimate financial impact from these
new trends. In any event, we estimate that we will not face liquidity constraints, or difficulties in complying with covenants
under our debt instruments. We do not anticipate any significant provisions or impairments at this time. Finally, we have reduced
the Company’s investment plan for this year from USD 165 million to USD 90 million.
25 – EXPENSES BY NATURE
Other expenses by nature are:
|
|
|
01.01.2020
|
|
|
01.01.2019
|
|
|
04.01.2020
|
|
|
04.01.2019
|
|
|
Description
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
Direct production costs
|
|
|
401,631,236
|
|
|
|
413,735,343
|
|
|
|
148,434,360
|
|
|
|
180,209,809
|
|
|
Employee expenses
|
|
|
116,208,249
|
|
|
|
129,880,705
|
|
|
|
45,792,999
|
|
|
|
64,667,554
|
|
|
Transportation and distribution
|
|
|
66,156,865
|
|
|
|
64,098,927
|
|
|
|
28,770,191
|
|
|
|
23,370,185
|
|
|
Advertising
|
|
|
11,775,379
|
|
|
|
12,118,113
|
|
|
|
1,280,072
|
|
|
|
5,857,861
|
|
|
Depreciation and amortization
|
|
|
54,125,036
|
|
|
|
53,895,240
|
|
|
|
26,587,015
|
|
|
|
27,275,029
|
|
|
Repairs and maintenance
|
|
|
11,932,039
|
|
|
|
13,656,953
|
|
|
|
6,018,647
|
|
|
|
7,649,545
|
|
|
Other expenses
|
|
|
56,467,958
|
|
|
|
48,041,620
|
|
|
|
39,179,863
|
|
|
|
35,539,224
|
|
|
Total (1)
|
|
|
718,296,762
|
|
|
|
735,426,901
|
|
|
|
296,063,147
|
|
|
|
344,569,207
|
|
(1) Corresponds to the addition of cost of sales, administration
expenses and distribution cost.
26 – OTHER INCOME
Other income by function is
detailed as follows:
|
|
|
01.01.2019
|
|
|
01.01.2019
|
|
|
04.01.2020
|
|
|
04.01.2019
|
|
|
Description
|
|
06.30.2019
|
|
|
06.30.2019
|
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
|
CLP
(000’s)
|
|
|
Gain on disposal of Property, plant and equipment
|
|
|
3,894
|
|
|
|
94,644
|
|
|
|
3,348
|
|
|
|
81,462
|
|
|
Others
|
|
|
1,925,145
|
|
|
|
168,916
|
|
|
|
1,329,785
|
|
|
|
97,135
|
|
|
Total
|
|
|
1,929,039
|
|
|
|
263,560
|
|
|
|
1,333,133
|
|
|
|
178,597
|
|
27 – OTHER EXPENSES BY FUNCTION
Other expenses by function are detailed as follows:
|
|
|
01.01.2020
|
|
|
01.01.2019
|
|
|
04.01.2020
|
|
|
04.01.2019
|
|
|
Description
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
Contingencies and non-operating fees
|
|
|
6,550,646
|
|
|
|
3,580,545
|
|
|
|
4,431,106
|
|
|
|
2,263,694
|
|
|
Reversal IPI Manaus processes
|
|
|
-
|
|
|
|
(3,770,309
|
)
|
|
|
-
|
|
|
|
(3,770,309
|
)
|
|
Tax on bank debits
|
|
|
1,857,237
|
|
|
|
2,187,617
|
|
|
|
675,090
|
|
|
|
910,299
|
|
|
Donations
|
|
|
1,500,000
|
|
|
|
-
|
|
|
|
1,500,000
|
|
|
|
-
|
|
|
Write-offs, disposal and loss of Property, plant and equipment
|
|
|
(173,187
|
)
|
|
|
(37,653
|
)
|
|
|
(53,426
|
)
|
|
|
(64,168
|
)
|
|
Others
|
|
|
370,078
|
|
|
|
15,692
|
|
|
|
129,726
|
|
|
|
169,586
|
|
|
Total
|
|
|
10,104,774
|
|
|
|
1,975,892
|
|
|
|
6,682,496
|
|
|
|
(490,898
|
)
|
28 – FINANCIAL INCOME AND EXPENSES
Financial income and expenses
are detailed as follows:
|
|
|
01.01.2020
|
|
|
01.01.2019
|
|
|
04.01.2020
|
|
|
04.01.2019
|
|
|
Description
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
Interest income
|
|
|
2,829,246
|
|
|
|
1,565,744
|
|
|
|
1,240,748
|
|
|
|
771,734
|
|
|
Other financial income
|
|
|
5,808,194
|
|
|
|
1,345,112
|
|
|
|
5,317,840
|
|
|
|
717,671
|
|
|
Total
|
|
|
8,637,440
|
|
|
|
2,910,856
|
|
|
|
6,558,588
|
|
|
|
1,498,405
|
|
|
|
|
01.01.2020
|
|
|
01.01.2019
|
|
|
04.01.2020
|
|
|
04.01.2019
|
|
|
Description
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
Bond interest
|
|
|
19,576,321
|
|
|
|
18,967,900
|
|
|
|
9,839,347
|
|
|
|
9,399,971
|
|
|
Bank loan interest
|
|
|
350,791
|
|
|
|
855,626
|
|
|
|
-
|
|
|
|
386,817
|
|
|
Other financial costs
|
|
|
3,566,118
|
|
|
|
2,496,330
|
|
|
|
1,266,717
|
|
|
|
1,259,364
|
|
|
Total
|
|
|
23,493,230
|
|
|
|
22,319,856
|
|
|
|
11,106,064
|
|
|
|
11,046,152
|
|
29 – OTHER (LOSSES) GAINS
Other (losses) gains are detailed
as follows:
|
|
|
01.01.2020
|
|
|
01.01.2019
|
|
|
04.01.2020
|
|
|
04.01.2019
|
|
|
Description
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
06.30.2020
|
|
|
06.30.2019
|
|
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
|
CLP
(000’S)
|
|
|
Other (losses) gains
|
|
|
918
|
|
|
|
-
|
|
|
|
(114
|
)
|
|
|
-
|
|
|
Total
|
|
|
918
|
|
|
|
-
|
|
|
|
(114
|
)
|
|
|
-
|
|
30. LOCAL AND FOREIGN CURRENCY
Local and foreign currency balances are the following:
|
CURRENT ASSETS
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Cash and cash equivalents
|
|
|
371,105,249
|
|
|
|
157,567,986
|
|
|
USD
|
|
|
19,103,837
|
|
|
|
16,732,278
|
|
|
EUR
|
|
|
361,657
|
|
|
|
9,723
|
|
|
CLP
|
|
|
267,179,349
|
|
|
|
78,421,936
|
|
|
BRL
|
|
|
56,685,349
|
|
|
|
46,189,977
|
|
|
ARS
|
|
|
860,791
|
|
|
|
3,830,199
|
|
|
PGY
|
|
|
26,914,266
|
|
|
|
12,383,873
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current financial assets
|
|
|
1,427,525
|
|
|
|
347,278
|
|
|
CLP
|
|
|
172,889
|
|
|
|
275,407
|
|
|
BRL
|
|
|
1,153,390
|
|
|
|
13,498
|
|
|
ARS
|
|
|
19
|
|
|
|
16,575
|
|
|
PGY
|
|
|
101,227
|
|
|
|
41,798
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current non-financial assets
|
|
|
31,764,440
|
|
|
|
16,188,965
|
|
|
USD
|
|
|
1,651,112
|
|
|
|
893,571
|
|
|
EUR
|
|
|
622,285
|
|
|
|
615,636
|
|
|
UF
|
|
|
412,909
|
|
|
|
410,203
|
|
|
CLP
|
|
|
7,940,742
|
|
|
|
5,642,901
|
|
|
BRL
|
|
|
2,133,315
|
|
|
|
1,738,793
|
|
|
ARS
|
|
|
15,991,051
|
|
|
|
3,918,728
|
|
|
PGY
|
|
|
3,013,026
|
|
|
|
2,969,133
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and other accounts receivable
|
|
|
127,266,796
|
|
|
|
191,077,588
|
|
|
USD
|
|
|
709,850
|
|
|
|
1,431,079
|
|
|
EUR
|
|
|
5,296
|
|
|
|
-
|
|
|
UF
|
|
|
546,487
|
|
|
|
453,469
|
|
|
CLP
|
|
|
60,046,431
|
|
|
|
83,328,449
|
|
|
BRL
|
|
|
55,017,574
|
|
|
|
79,586,461
|
|
|
ARS
|
|
|
7,602,103
|
|
|
|
19,088,164
|
|
|
PGY
|
|
|
3,339,055
|
|
|
|
7,189,966
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable related entities
|
|
|
7,257,381
|
|
|
|
10,835,768
|
|
|
USD
|
|
|
38,827
|
|
|
|
45,644
|
|
|
CLP
|
|
|
3,633,544
|
|
|
|
9,157,922
|
|
|
BRL
|
|
|
62,964
|
|
|
|
-
|
|
|
ARS
|
|
|
3,522,046
|
|
|
|
1,632,202
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
|
|
|
132,855,842
|
|
|
|
147,641,224
|
|
|
USD
|
|
|
681,962
|
|
|
|
6,027,076
|
|
|
CLP
|
|
|
52,853,755
|
|
|
|
48,320,784
|
|
|
BRL
|
|
|
33,475,953
|
|
|
|
43,820,564
|
|
|
ARS
|
|
|
33,291,558
|
|
|
|
34,262,914
|
|
|
PGY
|
|
|
12,552,614
|
|
|
|
15,209,886
|
|
|
|
|
|
|
|
|
|
|
|
|
Current tax assets
|
|
|
5,161,640
|
|
|
|
9,815,294
|
|
|
CLP
|
|
|
4,227,571
|
|
|
|
9,815,294
|
|
|
BRL
|
|
|
685,118
|
|
|
|
-
|
|
|
ARS
|
|
|
248,951
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
676,838,873
|
|
|
|
533,474,103
|
|
|
USD
|
|
|
22,185,588
|
|
|
|
25,129,648
|
|
|
EUR
|
|
|
989,238
|
|
|
|
625,359
|
|
|
UF
|
|
|
959,396
|
|
|
|
863,672
|
|
|
CLP
|
|
|
396,054,281
|
|
|
|
234,962,693
|
|
|
BRL
|
|
|
149,213,663
|
|
|
|
171,349,293
|
|
|
ARS
|
|
|
61,516,519
|
|
|
|
62,748,782
|
|
|
PGY
|
|
|
45,920,188
|
|
|
|
37,794,656
|
|
|
NON-CURRENT ASSETS
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
Other non-current financial assets
|
|
|
179,421,154
|
|
|
|
110,784,311
|
|
|
UF
|
|
|
2,918,115
|
|
|
|
1,216,865
|
|
|
BRL
|
|
|
165,209,345
|
|
|
|
98,918,457
|
|
|
ARS
|
|
|
11,293,694
|
|
|
|
10,648,989
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-current non-financial assets
|
|
|
96,596,596
|
|
|
|
125,636,150
|
|
|
UF
|
|
|
328,229
|
|
|
|
318,533
|
|
|
CLP
|
|
|
47,531
|
|
|
|
47,531
|
|
|
BRL
|
|
|
93,900,861
|
|
|
|
122,922,979
|
|
|
ARS
|
|
|
2,240,036
|
|
|
|
2,223,600
|
|
|
PGY
|
|
|
79,939
|
|
|
|
123,507
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, non-current
|
|
|
63,438
|
|
|
|
523,769
|
|
|
UF
|
|
|
6,687
|
|
|
|
465,371
|
|
|
BRL
|
|
|
-
|
|
|
|
-
|
|
|
ARS
|
|
|
2,088
|
|
|
|
636
|
|
|
PGY
|
|
|
54,663
|
|
|
|
57,762
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable related entities, non-current
|
|
|
166,752
|
|
|
|
283,118
|
|
|
CLP
|
|
|
166,752
|
|
|
|
283,118
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments accounted for using the equity method
|
|
|
91,638,828
|
|
|
|
99,866,733
|
|
|
CLP
|
|
|
49,845,359
|
|
|
|
49,703,673
|
|
|
BRL
|
|
|
41,793,469
|
|
|
|
50,163,060
|
|
|
ARS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets other than goodwill
|
|
|
645,497,775
|
|
|
|
675,075,375
|
|
|
USD
|
|
|
3,959,421
|
|
|
|
3,959,421
|
|
|
CLP
|
|
|
306,865,382
|
|
|
|
307,324,953
|
|
|
BRL
|
|
|
152,958,174
|
|
|
|
189,240,893
|
|
|
ARS
|
|
|
3,042,896
|
|
|
|
2,708,445
|
|
|
PGY
|
|
|
178,671,902
|
|
|
|
171,841,663
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
108,880,446
|
|
|
|
121,221,661
|
|
|
CLP
|
|
|
9,523,767
|
|
|
|
9,523,767
|
|
|
BRL
|
|
|
60,269,832
|
|
|
|
74,653,328
|
|
|
ARS
|
|
|
31,502,362
|
|
|
|
29,750,238
|
|
|
PGY
|
|
|
7,584,485
|
|
|
|
7,294,328
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant & equipment
|
|
|
665,078,622
|
|
|
|
722,718,863
|
|
|
CLP
|
|
|
274,084,852
|
|
|
|
282,861,852
|
|
|
BRL
|
|
|
199,239,840
|
|
|
|
251,080,517
|
|
|
ARS
|
|
|
121,724,098
|
|
|
|
119,784,304
|
|
|
PGY
|
|
|
70,029,832
|
|
|
|
68,992,190
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred tax assets
|
|
|
1,979,386
|
|
|
|
1,364,340
|
|
|
CLP
|
|
|
1,979,386
|
|
|
|
1,364,340
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-current assets
|
|
|
1,789,322,997
|
|
|
|
1,857,474,320
|
|
|
USD
|
|
|
3,959,421
|
|
|
|
3,959,421
|
|
|
UF
|
|
|
3,253,031
|
|
|
|
2,000,769
|
|
|
CLP
|
|
|
642,513,029
|
|
|
|
651,109,234
|
|
|
BRL
|
|
|
713,371,521
|
|
|
|
786,979,234
|
|
|
ARS
|
|
|
169,805,174
|
|
|
|
165,116,212
|
|
|
PGY
|
|
|
256,420,821
|
|
|
|
248,309,450
|
|
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
CURRENT LIABILITIES
|
|
Up
to 90 days
|
|
|
90
days to 1 year
|
|
|
Total
|
|
|
Up
to 90 days
|
|
|
90
days to 1 year
|
|
|
Total
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Other financial liabilities, current
|
|
9,053,458
|
|
|
31,646,308
|
|
|
40,699,766
|
|
|
9,719,894
|
|
|
30,873,984
|
|
|
40,593,878
|
|
|
USD
|
|
|
60,182
|
|
|
|
7,651,896
|
|
|
|
7,712,078
|
|
|
|
55,388
|
|
|
|
3,147,441
|
|
|
|
3,202,829
|
|
|
UF
|
|
|
7,646,210
|
|
|
|
8,153,861
|
|
|
|
15,800,071
|
|
|
|
7,535,228
|
|
|
|
11,836,936
|
|
|
|
19,372,164
|
|
|
CLP
|
|
|
840,890
|
|
|
|
12,026,915
|
|
|
|
12,867,805
|
|
|
|
842,221
|
|
|
|
11,700,946
|
|
|
|
12,543,167
|
|
|
BRL
|
|
|
394,434
|
|
|
|
1,387,440
|
|
|
|
1,781,874
|
|
|
|
1,153,072
|
|
|
|
2,119,141
|
|
|
|
3,272,213
|
|
|
ARS
|
|
|
47,181
|
|
|
|
910,228
|
|
|
|
957,409
|
|
|
|
75,060
|
|
|
|
704,921
|
|
|
|
779,981
|
|
|
PGY
|
|
|
64,561
|
|
|
|
1,515,968
|
|
|
|
1,580,529
|
|
|
|
58,925
|
|
|
|
1,364,599
|
|
|
|
1,423,524
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts and other accounts payable, current
|
|
|
164,181,373
|
|
|
|
9,953,491
|
|
|
|
174,134,864
|
|
|
|
228,259,216
|
|
|
|
15,441,337
|
|
|
|
243,700,553
|
|
|
USD
|
|
|
9,198,844
|
|
|
|
-
|
|
|
|
9,198,844
|
|
|
|
10,049,567
|
|
|
|
-
|
|
|
|
10,049,567
|
|
|
EUR
|
|
|
1,454,442
|
|
|
|
-
|
|
|
|
1,454,442
|
|
|
|
2,024,156
|
|
|
|
-
|
|
|
|
2,024,156
|
|
|
UF
|
|
|
2,069,588
|
|
|
|
-
|
|
|
|
2,069,588
|
|
|
|
2,044,871
|
|
|
|
-
|
|
|
|
2,044,871
|
|
|
CLP
|
|
|
49,496,126
|
|
|
|
9,953,491
|
|
|
|
59,449,617
|
|
|
|
84,602,547
|
|
|
|
15,441,337
|
|
|
|
100,043,884
|
|
|
BRL
|
|
|
54,187,906
|
|
|
|
-
|
|
|
|
54,187,906
|
|
|
|
75,051,089
|
|
|
|
-
|
|
|
|
75,051,089
|
|
|
ARS
|
|
|
38,654,068
|
|
|
|
-
|
|
|
|
38,654,068
|
|
|
|
40,826,489
|
|
|
|
|
|
|
|
40,826,489
|
|
|
PGY
|
|
|
9,120,399
|
|
|
|
-
|
|
|
|
9,120,399
|
|
|
|
13,660,497
|
|
|
|
-
|
|
|
|
13,660,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable related entities, current
|
|
|
37,774,527
|
|
|
|
-
|
|
|
|
37,774,527
|
|
|
|
53,637,601
|
|
|
|
-
|
|
|
|
53,637,601
|
|
|
CLP
|
|
|
17,664,816
|
|
|
|
-
|
|
|
|
17,664,816
|
|
|
|
28,471,399
|
|
|
|
-
|
|
|
|
28,471,399
|
|
|
BRL
|
|
|
13,193,607
|
|
|
|
-
|
|
|
|
13,193,607
|
|
|
|
19,279,132
|
|
|
|
-
|
|
|
|
19,279,132
|
|
|
ARS
|
|
|
6,916,104
|
|
|
|
-
|
|
|
|
6,916,104
|
|
|
|
5,887,070
|
|
|
|
-
|
|
|
|
5,887,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current provisions
|
|
|
1,665,054
|
|
|
|
504,486
|
|
|
|
2,169,540
|
|
|
|
1,637,799
|
|
|
|
431,185
|
|
|
|
2,068,984
|
|
|
CLP
|
|
|
1,665,054
|
|
|
|
500,859
|
|
|
|
2,165,913
|
|
|
|
1,637,799
|
|
|
|
427,697
|
|
|
|
2,065,496
|
|
|
PGY
|
|
|
-
|
|
|
|
3,627
|
|
|
|
3,627
|
|
|
|
-
|
|
|
|
3,488
|
|
|
|
3,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax liabilities, current
|
|
|
302,312
|
|
|
|
1,524,370
|
|
|
|
1,826,682
|
|
|
|
3,097,223
|
|
|
|
3,665,044
|
|
|
|
6,762,267
|
|
|
CLP
|
|
|
302,312
|
|
|
|
-
|
|
|
|
302,312
|
|
|
|
896,975
|
|
|
|
-
|
|
|
|
896,975
|
|
|
BRL
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
2,107,381
|
|
|
|
-
|
|
|
|
2,107,381
|
|
|
ARS
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
92,867
|
|
|
|
3,446,054
|
|
|
|
3,538,921
|
|
|
PGY
|
|
|
-
|
|
|
|
1,524,370
|
|
|
|
1,524,370
|
|
|
|
-
|
|
|
|
218,990
|
|
|
|
218,990
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee benefits current provisions
|
|
|
10,390,502
|
|
|
|
11,551,045
|
|
|
|
21,941,547
|
|
|
|
26,513,813
|
|
|
|
11,879,041
|
|
|
|
38,392,854
|
|
|
CLP
|
|
|
761,709
|
|
|
|
3,723,659
|
|
|
|
4,485,368
|
|
|
|
1,241,603
|
|
|
|
5,509,351
|
|
|
|
6,750,954
|
|
|
BRL
|
|
|
8,440,064
|
|
|
|
-
|
|
|
|
8,440,064
|
|
|
|
20,681,694
|
|
|
|
-
|
|
|
|
20,681,694
|
|
|
ARS
|
|
|
1,188,729
|
|
|
|
5,833,800
|
|
|
|
7,022,529
|
|
|
|
4,590,516
|
|
|
|
5,260,142
|
|
|
|
9,850,658
|
|
|
PGY
|
|
|
-
|
|
|
|
1,993,586
|
|
|
|
1,993,586
|
|
|
|
-
|
|
|
|
1,109,548
|
|
|
|
1,109,548
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current non-financial liabilities
|
|
|
220,603
|
|
|
|
29,624,236
|
|
|
|
29,844,839
|
|
|
|
328,441
|
|
|
|
26,173,774
|
|
|
|
26,502,215
|
|
|
CLP
|
|
|
189,474
|
|
|
|
29,508,522
|
|
|
|
29,697,996
|
|
|
|
327,847
|
|
|
|
26,064,658
|
|
|
|
26,392,505
|
|
|
ARS
|
|
|
31,129
|
|
|
|
7,753
|
|
|
|
38,882
|
|
|
|
594
|
|
|
|
5,286
|
|
|
|
5,880
|
|
|
PGY
|
|
|
-
|
|
|
|
107,961
|
|
|
|
107,961
|
|
|
|
-
|
|
|
|
103,830
|
|
|
|
103,830
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
223,587,829
|
|
|
|
84,803,936
|
|
|
|
308,391,765
|
|
|
|
323,193,987
|
|
|
|
88,464,365
|
|
|
|
411,658,352
|
|
|
USD
|
|
|
9,259,026
|
|
|
|
7,651,896
|
|
|
|
16,910,922
|
|
|
|
10,104,955
|
|
|
|
3,147,441
|
|
|
|
13,252,396
|
|
|
EUR
|
|
|
1,454,442
|
|
|
|
-
|
|
|
|
1,454,442
|
|
|
|
2,024,156
|
|
|
|
-
|
|
|
|
2,024,156
|
|
|
UF
|
|
|
9,715,798
|
|
|
|
8,153,861
|
|
|
|
17,869,659
|
|
|
|
9,580,099
|
|
|
|
11,836,936
|
|
|
|
21,417,035
|
|
|
CLP
|
|
|
70,920,381
|
|
|
|
55,713,446
|
|
|
|
126,633,827
|
|
|
|
118,020,391
|
|
|
|
59,143,989
|
|
|
|
177,164,380
|
|
|
BRL
|
|
|
76,216,011
|
|
|
|
1,387,440
|
|
|
|
77,603,451
|
|
|
|
118,272,368
|
|
|
|
2,119,141
|
|
|
|
120,391,509
|
|
|
ARS
|
|
|
46,837,211
|
|
|
|
6,751,781
|
|
|
|
53,588,992
|
|
|
|
51,472,596
|
|
|
|
9,416,403
|
|
|
|
60,888,999
|
|
|
PGY
|
|
|
9,184,960
|
|
|
|
5,145,512
|
|
|
|
14,330,472
|
|
|
|
13,719,422
|
|
|
|
2,800,455
|
|
|
|
16,519,877
|
|
|
|
|
06.30.2020
|
|
|
12.31.2019
|
|
|
NON-CURRENT
LIABILITIES
|
|
More
than 1 year up to 3
|
|
|
More
than 3
and up to 5
|
|
More
than
5 years
|
|
Total
|
|
|
More
than 1 year up to 3
|
|
|
More
than 3
and up to 5
|
|
|
More
than
5 years
|
|
|
Total
|
|
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
CLP (000’S)
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
CLP (000’S)
|
|
|
Other
financial liabilities, non-current
|
|
|
33,530,460
|
|
|
|
315,261,671
|
|
|
761,232,366
|
|
|
1,110,024,497
|
|
|
|
34,794,568
|
|
|
|
299,661,490
|
|
|
|
408,870,999
|
|
|
|
743,327,057
|
|
|
USD
|
|
|
360,931
|
|
|
|
300,037,567
|
|
|
239,070,493
|
|
|
539,468,991
|
|
|
|
509,366
|
|
|
|
271,700,335
|
|
|
|
-
|
|
|
|
272,209,701
|
|
|
UF
|
|
|
23,654,279
|
|
|
|
12,606,849
|
|
|
413,856,986
|
|
|
450,118,114
|
|
|
|
22,584,954
|
|
|
|
24,627,105
|
|
|
|
400,393,581
|
|
|
|
447,605,640
|
|
|
CLP
|
|
|
6,564,822
|
|
|
|
-
|
|
|
102,066,343
|
|
|
108,631,165
|
|
|
|
7,926,056
|
|
|
|
-
|
|
|
|
-
|
|
|
|
7,926,056
|
|
|
BRL
|
|
|
2,529,752
|
|
|
|
2,617,255
|
|
|
6,238,544
|
|
|
11,385,551
|
|
|
|
3,319,514
|
|
|
|
3,334,050
|
|
|
|
8,477,418
|
|
|
|
15,130,982
|
|
|
ARS
|
|
|
106,232
|
|
|
|
-
|
|
|
-
|
|
|
106,232
|
|
|
|
55,222
|
|
|
|
-
|
|
|
|
-
|
|
|
|
55,222
|
|
|
PGY
|
|
|
314,444
|
|
|
|
-
|
|
|
-
|
|
|
314,444
|
|
|
|
399,456
|
|
|
|
-
|
|
|
|
-
|
|
|
|
399,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable, non-current
|
|
|
343,414
|
|
|
|
-
|
|
|
-
|
|
|
343,414
|
|
|
|
619,587
|
|
|
|
-
|
|
|
|
-
|
|
|
|
619,587
|
|
|
CLP
|
|
|
343,414
|
|
|
|
-
|
|
|
-
|
|
|
343,414
|
|
|
|
618,509
|
|
|
|
-
|
|
|
|
-
|
|
|
|
618,509
|
|
|
ARS
|
|
|
-
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
1,078
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable related entities
|
|
|
17,510,694
|
|
|
|
-
|
|
|
-
|
|
|
17,510,694
|
|
|
|
19,777,812
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,777,812
|
|
|
BRL
|
|
|
17,510,694
|
|
|
|
-
|
|
|
-
|
|
|
17,510,694
|
|
|
|
19,777,812
|
|
|
|
-
|
|
|
|
-
|
|
|
|
19,777,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
provisions, non-current
|
|
|
952,344
|
|
|
|
54,377,860
|
|
|
-
|
|
|
55,330,204
|
|
|
|
968,404
|
|
|
|
66,070,162
|
|
|
|
-
|
|
|
|
67,038,566
|
|
|
BRL
|
|
|
-
|
|
|
|
54,377,860
|
|
|
-
|
|
|
54,377,860
|
|
|
|
-
|
|
|
|
66,070,162
|
|
|
|
-
|
|
|
|
66,070,162
|
|
|
ARS
|
|
|
952,344
|
|
|
|
-
|
|
|
-
|
|
|
952,344
|
|
|
|
968,404
|
|
|
|
-
|
|
|
|
-
|
|
|
|
968,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
tax liabilities
|
|
|
13,565,280
|
|
|
|
38,616,160
|
|
|
73,831,984
|
|
|
126,013,424
|
|
|
|
12,834,788
|
|
|
|
49,848,536
|
|
|
|
106,766,423
|
|
|
|
169,449,747
|
|
|
UF
|
|
|
1,542,766
|
|
|
|
234,877
|
|
|
57,976,540
|
|
|
59,754,183
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,298,050
|
|
|
|
1,298,050
|
|
|
CLP
|
|
|
-
|
|
|
|
38,381,283
|
|
|
-
|
|
|
38,381,283
|
|
|
|
1,449,404
|
|
|
|
181,418
|
|
|
|
90,271,026
|
|
|
|
91,901,848
|
|
|
BRL
|
|
|
12,022,514
|
|
|
|
-
|
|
|
-
|
|
|
12,022,514
|
|
|
|
-
|
|
|
|
49,667,118
|
|
|
|
-
|
|
|
|
49,667,118
|
|
|
ARS
|
|
|
-
|
|
|
|
-
|
|
|
15,855,444
|
|
|
15,855,444
|
|
|
|
11,385,384
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,385,384
|
|
|
PGY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,197,347
|
|
|
|
15,197,347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
benefits non-current provisions
|
|
|
1.066.950
|
|
|
|
154,046
|
|
|
9,569,334
|
|
|
10,790,330
|
|
|
|
1,114,051
|
|
|
|
148,954
|
|
|
|
8,910,349
|
|
|
|
10,173,354
|
|
|
CLP
|
|
|
366,750
|
|
|
|
154,046
|
|
|
9,569,334
|
|
|
10,090,130
|
|
|
|
461,587
|
|
|
|
148,954
|
|
|
|
8,910,349
|
|
|
|
9,520,890
|
|
|
ARS
|
|
|
83,222
|
|
|
|
-
|
|
|
-
|
|
|
83,222
|
|
|
|
88,090
|
|
|
|
-
|
|
|
|
-
|
|
|
|
88,090
|
|
|
PGY
|
|
|
616,978
|
|
|
|
-
|
|
|
-
|
|
|
616,978
|
|
|
|
564,374
|
|
|
|
-
|
|
|
|
-
|
|
|
|
564,374
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
non-current liabilities
|
|
|
66,969,142
|
|
|
|
408,409,737
|
|
|
844,633,684
|
|
|
1,320,012,563
|
|
|
|
70,109,210
|
|
|
|
415,729,142
|
|
|
|
524,547,771
|
|
|
|
1,010,386,123
|
|
|
USD
|
|
|
360,931
|
|
|
|
300,037,567
|
|
|
239,070,493
|
|
|
539,468,991
|
|
|
|
509,366
|
|
|
|
271,700,335
|
|
|
|
-
|
|
|
|
272,209,701
|
|
|
UF
|
|
|
23,654,279
|
|
|
|
12,606,849
|
|
|
413,856,986
|
|
|
450,118,114
|
|
|
|
22,584,954
|
|
|
|
24,627,105
|
|
|
|
401,691,631
|
|
|
|
448,903,690
|
|
|
CLP
|
|
|
8,817,752
|
|
|
|
388,923
|
|
|
169,612,217
|
|
|
178,818,892
|
|
|
|
10,455,556
|
|
|
|
330,372
|
|
|
|
99,181,375
|
|
|
|
109,967,303
|
|
|
BRL
|
|
|
20,040,446
|
|
|
|
95,376,398
|
|
|
6,238,544
|
|
|
121,655,388
|
|
|
|
23,097,326
|
|
|
|
119,071,330
|
|
|
|
8,477,418
|
|
|
|
150,646,074
|
|
|
ARS
|
|
|
13,164,312
|
|
|
|
-
|
|
|
-
|
|
|
13,164,312
|
|
|
|
12,498,178
|
|
|
|
-
|
|
|
|
-
|
|
|
|
12,498,178
|
|
|
PGY
|
|
|
931,422
|
|
|
|
-
|
|
|
15,855,444
|
|
|
16,786,866
|
|
|
|
963,830
|
|
|
|
-
|
|
|
|
15,197,347
|
|
|
|
16,161,177
|
|
31 – THE ENVIRONMENT
The Company has made disbursements for
improvements in industrial processes, equipment to measure industrial waste flows, laboratory analysis, consulting on environmental
impacts and others.
These disbursements by country are detailed
as follows:
|
|
|
2020
period
|
|
|
Future
commitments
|
|
|
Country
|
|
Recorded
as
expenses
|
|
|
Capitalized
to
Property, plant
and equipment
|
|
|
To
be recorded
as
expenses
|
|
To
be capitalized to
Property, plant
and equipment
|
|
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
|
CLP (000’s)
|
|
CLP
(000’s)
|
|
|
Chile
|
|
757,449
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
Argentina
|
|
176,981
|
|
|
-
|
|
|
32,118
|
|
|
-
|
|
|
Brazil
|
|
483,695
|
|
|
16,074
|
|
|
505,755
|
|
|
101,677
|
|
|
Paraguay
|
|
77,084
|
|
|
5,823
|
|
|
-
|
|
|
-
|
|
|
Total
|
|
1,495,209
|
|
|
21,897
|
|
|
537,873
|
|
|
101,677
|
|
32 – SUBSEQUENT EVENTS
No other events have occurred after June
30, 2020 that may significantly affect the Company's consolidated financial situation.
