AKO-B · Embotelladora Andina S.A.

Embotelladora Andina S.A. advanced its operational capabilities and financial positioning in 2025 despite macroeconomic headwinds. The company expanded fructose storage and utilization capacity to 600 tons in Paraguay, signaling a commitment to improving production efficiency in key markets. This capacity build aligns with management's emphasis on cash generation, where each subsidiary establishes clear targets for operating income, capital expenditures, and working capital to drive sustainable performance.

These moves reflect a broader focus on funding growth while navigating competitive pressures. Key competition arenas remain product image, pricing, advertising, and distribution capacity, including sales outlet networks. Management's approach ensures resources availability for maintaining operations, meeting capex and working capital needs, servicing scheduled debt and interest, covering income taxes, and distributing dividends to shareholders. This confidence is rooted in established treasury and funding policies, as detailed in the prior year's 20-F.

Looking forward, results will likely remain sensitive to consumer demand fluctuations driven by governmental economic measures across operating countries. Persistent oil price volatility continues to elevate energy and transportation costs, potentially compressing margins if cost pass-through is hindered by softened demand or intensified competition. By prioritizing cash-focused targets and strategic debt utilization, Embotelladora Andina positions itself to weather these trends while pursuing capacity enhancements that support long-term volume resilience.