Embotelladora Andina (ANDINA-B) Q3 2024 earnings summary

Executive summary

• Consolidated sales volume reached 214.4 million unit cases in 3Q24, up 5.7% year-over-year, led by Brazil's 15.8% growth and Paraguay's 6.3%, while Argentina declined 4.3% and Chile grew 1.7%.

• Net sales increased 8.4% year-over-year to CLP 726,806 million; adjusted EBITDA rose 3.7% to CLP 114,634 million, but net income attributable to shareholders dropped 34.2% to CLP 41,942 million, mainly due to lower monetary correction gains in Argentina.

• Over 60% of total revenues now come from digital platforms, up 30 percentage points year-over-year, with a Net Promoter Score of 55%.

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

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

Financial highlights

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

• Brazil: Net sales up 18%, adjusted EBITDA up 28.1%, margin at 20.1%, representing 35.2% of total EBITDA.

• Argentina: Net sales down 5%, adjusted EBITDA down 21.4%, margin at 12.5%, representing 18.1% of total EBITDA.

• Chile: Net sales up 5.5%, adjusted EBITDA down 3.1%, margin at 13%, representing 32.3% of total EBITDA.

• Paraguay: Net sales up 10.6%, adjusted EBITDA up 4.4%, margin at 27.2%, representing 14.4% of total EBITDA.

Outlook and guidance

• Optimism for the remainder of 2024 and 2025, especially in Argentina where sales volume declines moderated.

• Brazil expected to remain solid in 2025, but with challenging year-over-year comparisons due to strong 2024 growth; continued favorable climate is key.

• Argentina volumes expected to grow at low single digits in Q4, with gradual improvement tied to macroeconomic stabilization and consumer confidence.

• Chile volumes expected to remain positive in Q4; pricing strategy aims to keep pace with inflation despite competitive pressure.

• Strategic focus on growth through NARTD/ARTD portfolio, new categories, and digital transformation.