Company: AKO-B
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001410578-25-000473
Chunk: 32

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-03-26
Form: 20-F
Item: Item 3
Chunk 32
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 controls, the results of our Argentine operations may be materially affected. We cannot assure that price controls in Argentina will not be reinstated in the future.
Risks Relating to Paraguay
Our business operations in Paraguay are dependent on economic conditions in Paraguay.
Our operations in Paraguay represented 12.3% and 11.6% of our assets as of December 31, 2023 and December 31, 2024, respectively, and 8.5% and 8.7% of our net sales for 2023 and 2024, respectively. Because demand for soft drinks and beverage products is generally related to the economic conditions prevailing in the local market which, in turn, depend on the macroeconomic and political conditions of the country, our financial situation and our results of operations could be adversely affected by changes in these factors over which we have no control. 
Paraguay has a history of economic and political stability, exchange controls, frequent changes in regulatory policies, corruption and weak judicial security. Paraguayan GDP grew 0.2% in 2022, grew 5% in 2023 and grew 4% in 2024, according to the Paraguayan Central Bank. Paraguayan GDP is closely tied to the performance of Paraguay’s agricultural sector, which can be volatile.
The situation of the Paraguayan economy is also strongly influenced by the economic situation in Argentina and Brazil. A deterioration in the economic situation of these countries could adversely affect the Paraguayan economy and, in turn, our financial condition and operating results.
Inflation in Paraguay may adversely affect our financial condition and results of operations.
Although inflation in Paraguay has remained stable at around 4.9% over the last five years, we cannot assure that it will not increase significantly. An increase in inflation in Paraguay could decrease the purchasing power of our consumers in the country, which could adversely affect our volumes and impact our sales income.
The Paraguayan guaraní is subject to depreciation and volatility, which could adversely affect our financial condition and results of operations.
The exchange rate of Paraguay is free and floating and the Paraguay Central Bank, actively participates in the exchange market in order to reduce volatility. Since a relevant portion of our total costs in Paraguay for raw material and supplies are denominated in U.S. dollars, a significant depreciation of the local currency could adversely affect our financial situation and results.

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The Paraguayan guaraní depreciated 7% in