ANDINA BOTTLING CO INC

Sales Volume reached 86.1 million unit cases, representing an increase of 1.3%, explained by the increase in volume in the Water and Beer and Other Alcoholic Beverages categories, partially offset by the decrease in the Soft Drinks and Juices and Other Non-Alcoholic Beverages categories. Volumes grew by 4.4% when excluding the impact of the 2.5 million unit cases sold to Coca-Cola Femsa during the same period last year. Transactions reached 554.9 million, representing an increase of 5.2%.

Net Sales totaled CLP 314,660 million, an increase of 11.6%. In local currency, Net Sales increased 9.8%, explained by (i) the aforementioned increase in volume, and (ii) the increase in average revenue per unit case sold, both due to price increases above local inflation and the effect of sales to Coca-Cola Femsa in the previous year, which were at a lower average price.

Cost of Sales increased 13.2%, and in local currency it increased 11.3%, mainly explained by the higher cost of concentrate and a shift in the mix towards higher unit cost products. This was partially offset by lower costs for sweeteners and PET resin.

Distribution Costs and Administrative Expenses increased by 12.1% in the reporting currency. In local currency, they increased by 10.2%, mainly due to (i) higher distribution costs, (ii) higher marketing expenses, (iii) higher labor costs, and (iv) lower operating income classified under this item.

The aforementioned effects led to an Operating Income of CLP 69,830 million, 7.0% higher than the previous year. Operating margin reached 22.2%. In local currency, Operating Income increased by 5.8%.

Adjusted EBITDA reached CLP 85,004 million, 4.6% higher than the previous year, and Adjusted EBITDA Margin was 27.0%, a contraction of 180 basis points. In local currency, Adjusted EBITDA increased by 3.4%.