Andina Bottling Q4 Sales Volume, Net Sales Decline
Ticker: AKO-B · Form: 6-K · Filed: Jan 30, 2024 · CIK: 925261
Complexity: simple
Sentiment: bearish
Topics: earnings, sales-volume, revenue-decline, foreign-issuer
TL;DR
**Andina Bottling's latest 6-K shows a dip in quarterly sales volume and net sales, signaling potential headwinds.**
AI Summary
Andina Bottling Co. Inc. (Embotelladora Andina S.A.) reported a consolidated sales volume of 248.4 million unit cases for the quarter ending January 2024, a 1.0% decrease from the prior year. Quarterly transactions also fell by 2.4% to 1,361.3 million, and consolidated Net Sales decreased by 2.1% to CLP 773,552 million. This matters to investors because declining sales volume, transactions, and net sales indicate a potential slowdown in demand for their products, which could negatively impact future earnings and stock performance.
Why It Matters
Decreases in sales volume, transactions, and net sales suggest a weakening market position or consumer demand, which could lead to lower profitability for Andina Bottling Co. Inc.
Risk Assessment
Risk Level: medium — The filing indicates a decline in key performance indicators like sales volume and net sales, which could impact future financial results.
Analyst Insight
An investor should closely monitor Andina Bottling's next earnings report for signs of recovery in sales volume and net sales, and consider if the accumulated annual growth can offset the recent quarterly declines before making investment decisions.
Key Numbers
- 248.4 million unit cases — Quarterly Consolidated Sales Volume (Represents a 1.0% decrease compared to the same quarter of the previous year, indicating reduced product sales.)
- 1,361.3 million — Quarterly Transactions (Shows a 2.4% decrease compared to the same quarter of the previous year, suggesting fewer customer interactions or purchases.)
- CLP 773,552 million — Quarterly Consolidated Net Sales (Decreased by 2.1% over the same quarter of the previous year, reflecting lower revenue generation.)
- CLP 130,138 million — Quarterly Consolidated Operating Income (Reported for the quarter, providing insight into the company's operational profitability.)
- 1.0% — Accumulated Consolidated Sales Volume Increase (Despite quarterly declines, accumulated sales volume for the year increased by 1.0% to 882.6 million unit cases.)
Key Players & Entities
- Andina Bottling Co. Inc. (company) — the registrant filing the 6-K
- Embotelladora Andina S.A. (company) — exact name of registrant as specified in its charter
- CLP 773,552 million (dollar_amount) — consolidated Net Sales for the quarter
- CLP 2,618,437 million (dollar_amount) — accumulated consolidated Net Sales
- 248.4 million unit cases (dollar_amount) — consolidated Sales Volume for the quarter
- 1,361.3 million (dollar_amount) — transactions for the quarter
- 882.6 million unit cases (dollar_amount) — accumulated consolidated sales volume
- 4,859.6 million (dollar_amount) — accumulated transactions
- CLP 130,138 million (dollar_amount) — consolidated Operating Income for the quarter
Forward-Looking Statements
- Andina Bottling's stock price may face downward pressure due to the reported quarterly declines in sales volume and net sales. (Andina Bottling Co. Inc.) — medium confidence, target: next 3-6 months
- The company may implement new marketing strategies or product innovations to counteract the decrease in transactions and sales volume. (Andina Bottling Co. Inc.) — low confidence, target: next 6-12 months
FAQ
What was the consolidated sales volume for Andina Bottling Co. Inc. for the reported quarter?
The consolidated sales volume for the quarter was 248.4 million unit cases, which represents a decrease of 1.0% compared to the same quarter of the previous year.
How did the quarterly transactions compare to the previous year for Andina Bottling Co. Inc.?
Transactions reached 1,361.3 million for the quarter, which was a decrease of 2.4% compared to the same quarter of the previous year.
What were the consolidated Net Sales for Andina Bottling Co. Inc. in the reported quarter?
Consolidated Net Sales reached CLP 773,552 million in the quarter, decreasing by 2.1% over the same quarter of the previous year.
What was the accumulated consolidated sales volume for Andina Bottling Co. Inc.?
Accumulated consolidated sales volume reached 882.6 million unit cases, an increase of 1.0% with respect to the previous year.
What was the reported consolidated Operating Income for Andina Bottling Co. Inc. for the quarter?
Consolidated Operating Income reached CLP 130,138 million in the quarter.
Filing Stats: 4,647 words · 19 min read · ~15 pages · Grade level 8.2 · Accepted 2024-01-30 16:12:28
Filing Documents
- tm244429d1_6k.htm (6-K) — 756KB
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From the Filing
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6-K REPORT OF FOREIGN ISSUER PURSUANT TO RULE 13a-16 OR 15b-16 OF THE SECURITIES EXCHANGE ACT OF 1934 January 2024 Date of Report (Date of Earliest Event Reported) Embotelladora Andina S.A. (Exact name of registrant as specified in its charter) Andina Bottling Company, Inc. (Translation of Registrant´s name into English) Avda. Miraflores 9153 Renca Santiago, Chile (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes No Indicate by check mark if the Registrant is submitting this Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes No Indicate by check mark whether the registrant by furnishing the information contained in this Form 6-K is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 Yes No EXECUTIVE SUMMARY The quarter closed with a consolidated Sales Volume of 248.4 million unit cases*, a decrease of 1.0% compared to the same quarter of the previous year. Transactions reached 1,361.3 million for the quarter, a decrease of 2.4% compared to the same quarter of the previous year. Accumulated consolidated sales volume reached 882.6 million unit cases, an increase of 1.0% with respect to the previous year. Accumulated transactions reached 4,859.6 million, representing an increase of 0.7%. Company figures reported are the following: · Consolidated Net Sales reached CLP 773,552 million in the quarter, decreasing by 2.1% over the same quarter of the previous year. Accumulated consolidated Net Sales reached CLP 2,618,437 million, representing a 1.4% decrease regarding the previous year. · Consolidated Operating Income* reached CLP 130,138 million in the quarter, representing a 13.1% increase over the same quarter of the previous year. Accumulated consolidated Operating Income reached CLP 357,337 million, an increase of 3.5% regarding the previous year. · Consolidated Adjusted EBITDA* increased by 7.3% over the same quarter of the previous year, reaching CLP 159,070 million in the quarter. Adjusted EBITDA Margin reached 20.6%, an expansion of 180 basis points compared to the same quarter of the previous year. Accumulated consolidated Adjusted EBITDA reached CLP 470,108 million, which represents an increase of 1.2% compared to the previous year. Adjusted EBITDA Margin for the period reached 18.0%, an expansion of 47 basis points compared to the previous year. · Net Income attributable to the owners of the controller for the quarter reached CLP 80,740 million, representing an increase of 78.7% regarding the same quarter of the previous year. Accumulated Net Income attributable to the owners of the controller was CLP 171,441 million, which represents a 36.6% increase regarding the previous year. Consolidated quarterly and accumulated results were strongly affected by the depreciation of local currencies, especially the Argentine peso against the reporting currency. Isolating this effect, i.e. on a currency neutral* basis, the company's figures are as follows: · Consolidated Net Sales reached CLP 823,505 million in the quarter, an increase of 4.2% over the same quarter of the previous year. Accumulated consolidated Net Sales reached CLP 2,837,973 million, an increase of 6.8% over the previous year. · Consolidated Operating Income* reached CLP 137,588 million in the quarter, an increase of 19.6% over the same quarter of the previous year. Accumulated consolidated Operating Income was CLP 390,000 million, an increase of 13.0% over the previous year. · Consolidated Adjusted EBITDA* reached CLP 168,816 million in the quarter, an increase of 13.9% over the same quarter of the previous year. Accumulated consolidated Adjusted EBITDA was CLP 514,227 million, an increase of 10.7% over the previous year. SUMMARY OF RESULTS FOURTH QUARTER AND FULL YEAR ENDED DECEMBER 31, 2023 (Figures in million CLP) 4Q22 4Q23 Var % FY22 FY23 Var % Sales Volume (Million Unit Cases ) 250.9 248.4 -1.0 % 873.6 882.6 1.0 % Net Sales 789,934 773,552 -2.1 % 2,656,878 2,618,437 -1.4 % Operating Income* 115,042 130,138 13.1 % 345,144 357,337 3.5 % Adjusted EBITDA* 148,257 159,070 7.3 % 464,510 470,108 1.2 % Net income attributable to the owners of the controller 45,194 80,740 78.7 % 125,498 171,441 36.6 % *The definitions used can be found in the Glossary on page 16 of this document. COCA-COLA ANDINA 4Q23 EARNINGS RELEASE www.koandina.com -2- Comment of the Chief Executive Officer. Mr. Miguel Ángel Peirano "We closed the fourth quarter of 2023 with solid