Embotelladora Andina (ANDINA-B) Q3 2024 earnings summary

Executive summary

• Largest Coca-Cola bottler in Chile, Argentina, Paraguay, and third largest in Brazil, serving over 57 million consumers and 272,000 clients.

• Consolidated sales volume rose 5.7% year-over-year to 214.4 million unit cases in 3Q24, with strong growth in Brazil (+15.8%) and Paraguay (+6.3%), partially offset by a 4.3% decline in Argentina and modest growth in Chile (+1.7%).

• FY2023 revenue reached ~$3.1 billion, with EBITDA of ~$555 million and net income of ~$203 million.

• Maintains investment grade ratings (BBB+/BBB) and a leverage ratio of 1.4x Net Financial Debt/Adj. EBITDA.

• Focuses on sustainability, digital transformation, and a diversified beverage portfolio.

Financial highlights

• 3Q24 total volume: 214 million unit cases, up from 203 million in 3Q23.

• 3Q24 consolidated net sales: CLP 726,806 million (+8.4% YoY); operating income: CLP 78,587 million (+0.6% YoY); adjusted EBITDA: CLP 114,634 million (+3.7% YoY); net income: CLP 41,942 million (-34.2% YoY).

• 3Q24 net sales: $788 million, up from $777 million in 3Q23.

• 3Q24 operating income: $85 million (down from $91 million in 3Q23); operating margin 10.8%.

• 3Q24 adjusted EBITDA: $124 million (down from $128 million in 3Q23); margin 15.7%.

Segment performance

• Brazil: 3Q24 sales volume +15.8% YoY, net sales +13.2% (CLP), operating income +28.7%, adjusted EBITDA +22.8%.

• Argentina: 3Q24 EBITDA AR$27 billion, margin 20.1%.

• Chile: 3Q24 EBITDA CLP$138.7 billion, margin 13.0%.

• Paraguay: 3Q24 EBITDA G$37.9 billion, margin 27.2%.

• 9M24: Brazil led growth with sales volume +15.0% and adjusted EBITDA +56.6%; Argentina saw volume -17.7% and adjusted EBITDA -22.4%.