Embotelladora Andina S.A.(AKO_B) - 2020 Q4 - Annual Report

Cash Flow - Cash flows from operating activities in 2020 amounted to Ch$278,769 million, an increase of 9.2$255,148 million in 2019[387]. - Cash flows from investing activities in 2020 were Ch$223,879 million, significantly higher than Ch$110,048 million in 2019, primarily due to increased purchases of short-term financial instruments[388]. - Financing activities generated a positive cash flow of Ch$113,041 million in 2020, an increase of Ch$240,153 million compared to 2019, mainly due to a new bond issuance[391]. Liabilities - Total liabilities as of December 31, 2020, were Ch$1,616,504 million, reflecting a 13.7$33,602 million, or 8.2%, compared to December 2019, mainly due to lower accounts payable[393]. - Non-current liabilities increased by Ch$228,062 million, or 22.6$150,107 million available[392]. - The company is in compliance with all its debt covenants as of December 31, 2020[394]. - The weighted average interest rate for bond obligations was 3.7% in UF and 4.5% in US$[394]. - As of December 31, 2020, the Company's total contractual obligations amounted to Ch$1,149,823 million, with more than 5 years obligations totaling Ch$642,937 million[427]. - The Company maintains a restriction that Net Consolidated Financial Liabilities shall not exceed Consolidated Equity by 1.20 times[413]. - The Company has a remaining outstanding amount of Senior Notes of US$365 million after the partial repurchase[419]. Dividends and Corporate Actions - Chilean Corporate Law mandates a minimum distribution of 30% of annual profits as dividends[384]. - The Company undertook a partial repurchase of Senior Notes amounting to US$210 million, which was refinanced with the placement of Series F Local Bonds in the Chilean market[413]. - The Company issued US$300 million in corporate bonds due 2050 with an annual coupon rate of 3.950% for general corporate purposes, including potential acquisitions[421]. Risk Management - The Company reported that its results are likely to be influenced by changes in consumer demand and potential price increases in raw materials such as sugar and resin[423]. - The Company has contracted derivatives (Cross Currency Swaps) to cover 100% of UF denominated financial obligations, redenominating them to Chilean pesos[411]. - The Company must maintain Consolidated Assets free of any pledge or lien by an amount at least equal to 1.3 times the Issuer's unsecured consolidated current liabilities[414]. - The Company has no material off-balance sheet arrangements as of December 31, 2020[425]. - The Company is subject to risks from exchange rate fluctuations, particularly potential devaluations of local currencies against the U.S. dollar[424].