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

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-03-26
Form: 20-F
Item: Item 3
Chunk 20
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 and results of operation, including our production and logistics network.
Risks Relating to Brazil
Our business operations in Brazil are dependent on economic conditions in Brazil.
Our operations in Brazil represented 31.8% and 29.0% of our assets as of December 31, 2023 and December 31, 2024, respectively, and 28.5% and 28.2% of our net sales for 2023 and 2024, respectively. Because demand for soft drinks and beverage products is usually correlated to economic conditions prevailing in the relevant local market, developments in economic conditions in Brazil, and measures taken by the Brazilian government, have had and are expected to continue to have an impact on our business, results of operations and financial condition. 

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The Brazilian economy has historically been characterized by unstable economic cycles and interventions by the Brazilian government. Brazilian GDP grew by 3.0% in 2022, 3.2% in 2023 and 3.5% in 2024 according to the Brazilian Institute of Geography and Statistics (Instituto Brasileiro de Geografia e Estatística or “IBGE”). The Brazilian government has often changed monetary, taxation and other policies to influence the course of Brazil’s economy. Our business, results of operations and financial condition may be adversely affected by, among others, the following factors:

●   expansion or contraction of the Brazilian economy;
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●   exchange rate fluctuations;
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●   high inflation rates;
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●   changes in fiscal or tax policies;
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●   changes in monetary policy, including an increase in interest rates;
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●   exchange control policies and restrictions on remittances abroad;
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●   investment levels;
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●   liquidity of domestic capital and credit markets;
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●   employment levels and labor and social security regulations;
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●   energy or water shortages or rationalization;
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●   changes in environmental regulation;
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●   government restrictions in response to any pandemic and the capacity of authorities to keep the pandemic under control;
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●   social and political instability;
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●   uncertainty related to the government and the policies it may adopt; and
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●   other developments in or affecting Brazil.
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The Brazilian economy is also affected by international economic and market conditions in general, especially economic and market conditions in the United States, the European Union and China.
Historically volatile political, social and economic conditions in Brazil could adversely affect our