CHILE: Exchange rate losses hit Embotelladora Andina profits
Q4 profit falls 14.9%
Chilean Coca-Cola bottler Embotelladora Andina has reported profits down 14.9% for the fourth quarter, hurt by exchange rate losses.
For the quarter ended 31 December, the firm made net profits of CLP32.71bn (US$64.6m). For the full-year, profits dropped to CLP86.92bn, a 6.2% decrease on the previous year.
Net sales for the quarter amounted to CLP236.87bn, a 7.8% drop on 2008 as a result of price rises above local inflation. For the full-year, net sales dropped 9.7% to CLP743.12bn, said Andina.
Fourth quarter volume sales rose 4% to 135.3m unit cases, with full-year volumes up 2.6% from 2008 levels.
CEO Jaime Garcia said: “2009 was a difficult year, the economy contracted significantly and the cost of sugar was far above the historical average. Consolidated volumes of our products grew 2.6% and we managed to sustainably increase our volume and value market share, with prices increasing above local inflations.”
However, he added: “We remain calm because we know we have done things in the right way, efficiently planning our long-term view. Challenges lay ahead and we count with all the strength to continue reinforcing our leadership.”
The Latin American bottler last year announced an investment of $67m in capital projects, with $26m earmarked for Chile, $28m for Brazil and $13m for Argentina.
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