Embotelladora Andina S.A.(AKO_A) - 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, representing 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$1,149,823 million, including debt with financial institutions, bonds, lease obligations, and purchase obligations[427]. - The Company reported that as of December 31, 2020, total long-term liabilities amounted to Ch$63,706 million[429]. Credit and Compliance - As of December 31, 2020, the company had 23 unused short-term credit lines totaling Ch$150,107 million available[392]. - The company is in compliance with all its debt covenants as of December 31, 2020[394]. - The Company maintains a restriction that Net Consolidated Financial Liabilities shall not exceed Consolidated Equity by 1.20 times[413]. - The Company is required to maintain an indebtedness level where Net Consolidated Financial Liabilities do not exceed Consolidated Equity by 1.20 times[413]. Interest and Dividends - The weighted average interest rate for bond obligations was 3.7% in UF and 4.5% in US$[394]. - Chilean Corporate Law mandates a minimum distribution of 30$210 million, which was refinanced with the placement of Series F Local Bonds in the Chilean market[419]. - 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 and improving liquidity[421]. - 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, mortgage, or other lien by an amount at least equal to 1.3 times the Issuer's unsecured consolidated current liabilities[414]. - The Company is subject to risks from potential price increases in principal raw materials, such as sugar and resin, which may affect results if costs cannot be passed on to consumers[423]. - The Company faces potential adverse effects from exchange rate fluctuations, particularly devaluations of local currencies against the U.S. dollar[424].