Company: AKO-B
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001410578-25-000473
Chunk: 27

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-03-26
Form: 20-F
Item: Item 3
Chunk 27
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 abrupt changes in government policies. Argentine governments have pursued different, and often contradictory, policies to those of preceding administrations. In recent decades, succeeding administrations have implemented interventionist policies, which included nationalization, debt renegotiation, price controls, and exchange restrictions, as well as market-friendly policies, such as export tax reductions, elimination of currency controls, deregulation of utility prices, negotiation of free trade agreements and implementation of pro-investor initiatives.
The last presidential election in Argentina was held between October (first round) and November 2023 (runoff). As a result of the election, President Javier Milei, the La Libertad Avanza party candidate, was elected president and took office on December 10, 2023. President Milei has attempted to implement new monetary, fiscal, and exchange rate policies, which have effects on our business. We cannot provide assurance that the Argentine government will be able to continue to implement business-friendly policies.

20

Inflation in Argentina may adversely affect our operations, which could adversely impact our financial condition and results of operations.
Argentina has experienced high levels of inflation in recent decades. Argentina’s historically high rates of inflation resulted mainly from its lack of control over fiscal policy and the money supply. Argentina continues to face high inflationary pressures. In 2022, INDEC recorded a consumer price index (índice de precios al consumidor or “CPI”) increase of 94.8%, while the wholesale price index WPI (índice de precios internos al por mayor or “WPI”) increased 94.8%. In 2023, INDEC recorded a CPI increase of 211.4%, while WPI increased 276.3%. In 2024, INDEC recorded a CPI increase of 117.8%, while WPI increased 67.1%.
During 2022, 2023 and 2024, Argentina met the criteria to be considered a hyperinflationary economy as provided by IAS 29 guidelines, which include, among other characteristics, a cumulative inflation rate over three years that approaches or exceeds 100%. Accordingly, IAS 29 must be applied for financial statements for fiscal years ending on or after July 1, 2018. IAS 29 requires non-monetary assets and liabilities, shareholders’ equity and comprehensive income to be restated in terms of a measuring unit current at the period end. IAS 29 also requires the use of a general price index to reflect changes in purchasing power. As a result