Company: AKO-B
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001410578-25-000473
Chunk: 19

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-03-26
Form: 20-F
Item: Item 3
Chunk 19
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 real, the Argentine peso and the Paraguayan guaraní could also impact our reported performance in Chilean pesos.
Inflation in Chile and government measures to curb inflation may disrupt our business and have an adverse effect on our financial condition and results of operations.
During 2021 and 2022, inflation in Chile was high with rates of 7.2% and 12.8%, respectively. The crisis caused by the COVID-19 pandemic and the economic relief packages enacted by the Chilean Congress were the primary reasons leading to this inflation. In order to control it, the Central Bank has made recurring increases in the monetary policy rate ranging from 0.5% in 2021, 11.25% during 2022 and 8.25% for 2023, in an effort to achieve a significant decrease in consumption. During 2023 inflation decreased reaching 3.9% year-on-year in December 2023, but during 2024 it had an upturn closing the year at 4.5%.
The measures taken by the Central Bank in the past to control inflation have often included maintaining a conservative monetary policy with high interest rates, thereby restricting the availability of credit and economic growth. Inflation, measures to combat inflation, and public speculation about possible additional actions by the government have also contributed in the past to economic uncertainty in Chile and to heightened volatility in its securities markets. Periods of higher inflation may also slow the growth rate of the Chilean economy, which could lead to reduced demand for our products and decreased sales. Inflation is also likely to increase some of our costs and expenses, given that the majority of our supply contracts in Chile are UF-denominated or are indexed to the Chilean consumer price index. We cannot assure that, under competitive pressure, we will be able to carry out price increases, which could adversely impact our operating margins and operating income. Additionally, an important part of our financial debt in Chile is UF-denominated, and therefore the value of the debt reflects any increase of the inflation in Chile.
A severe natural disaster, such as earthquake or tsunami or wildfires, in Chile could adversely affect the Chilean economy and our network infrastructure.
Chile lies on the Nazca tectonic plate, one of the world’s most seismically active regions. Chile has been adversely affected by powerful earthquakes in the past.
A severe earthquake, tsunami and/or wildfires which in Chile in the future could have an adverse impact on the Chilean economy and on our business, financial condition