ANDINA BOTTLING CO INC

Sales Volume reached 41.6 million unit cases, representing a 1.2% increase, driven primarily by volume growth in the Water, Beer and Other Alcoholic Beverages categories, partially offset by a decline in the Soft Drinks category. The Non-Alcoholic Beverages segment accounted for 96.3% of total sales volume and grew by 0.1%. The Alcoholic Beverages segment accounted for 3.7% of total sales volume and grew by 45.4%, driven by growth in the Beer category. Meanwhile, transactions reached 276.3 million, representing an increase of 6.7%.

Net Sales totaled CLP 173,017 million, an increase of 24.2%. In local currency, Net Sales increased by 7.0%, driven by a higher average price during the period—due to price increases implemented—and, to a lesser extent, by the aforementioned volume growth. Net Sales in the Non-Alcoholic Beverages segment increased by 4.9% in local currency, accounting for 92.7% of total sales. Net Sales in the Alcoholic Beverages segment increased by 43.9% in local currency, accounting for 7.3% of total sales.

Cost of Sales increased by 23.8% and by 6.8% in local currency, primarily due to (i) higher concentrate costs, (ii) a shift in the mix toward products with higher unit costs, and (iii) higher depreciation charges. This was partially offset by lower costs for sweeteners and the appreciation of the Paraguayan guaraní against our dollar-denominated costs.

Distribution Costs and Administrative Expenses increased by 28.7% in the reporting currency. In local currency, they increased by 10.5%, primarily due to (i) higher distribution costs, (ii) higher labor costs, (iii) lower operating income classified under this item, and (iv) higher marketing expenses.

The aforementioned effects led to an Operating Income of CLP 40,350 million, increasing 21.2% compared to the previous year. Operating Margin reached 23.3%. In local currency, Operating Income increased by 4.8%.

Adjusted EBITDA reached CLP 49,600 million, increasing 22.8% compared to the previous year, and Adjusted EBITDA Margin was 28.7%, a decrease of 31 basis points. In local currency, Adjusted EBITDA increased by 6.0%.