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INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD
12 Months Ended
Dec. 31, 2021
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD  
INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD

14  INVESTMENTS IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD

14.1Description

Investments in associates are accounted for using the equity method.  Investments in associates are detailed as follows:

Ownership

 

Functional

Investment value

interest

TAXPAYER ID

    

Name

    

Country

    

currency

    

12.31.2021

    

12.31.2020

    

12.31.2021

    

12.31.2020

 

86.881.400-4

 

Envases CMF S.A. (1)

 

Chile

 

CLP

 

21,863,790

20,185,148

50.00

%  

50.00

%

Foreign

Leão Alimentos e Bebidas Ltda. (2)

Brazil

BRL

11,359,597

10,628,035

10.26

%  

10.26

%  

Foreign

Kaik Participações Ltda. (2)

Brazil

BRL

1,107,007

979,978

11.32

%  

11.32

%  

Foreign

SRSA Participações Ltda.

Brazil

BRL

51,615

48,032

40.00

%  

40.00

%  

Foreign

Sorocaba Refrescos S.A.

Brazil

BRL

24,258,224

20,976,662

40.00

%  

40.00

%  

Foreign

Trop Frutas do Brasil Ltda. (2)

Brazil

BRL

2,192,920

4,695,228

7.52

%  

7.52

%  

76.572.588.7

Coca-Cola del Valle New Ventures S.A.

Chile

CLP

30,656,041

30,443,271

35.00

%  

35.00

%  

Total

 

 

  

 

  

 

91,489,194

87,956,354

 

  

(1)In Envases CMF S.A., regardless of the percentage of ownership interest, it was determined that no controlling interest was held, only a significant influence, given that there was not a majority vote of the Board of Directors to make strategic business decisions.
(2)In these companies, regardless of the ownership interest, it has been defined that the Company has significant influence, given that it has the right to appoint directors.

Envases CMF S.A.

Chilean entity whose corporate purpose is to manufacture and sell plastic material products and beverage bottling and packaging services. The business relationship is to supply plastic bottles, preforms and caps to Coca-Cola bottlers in Chile.

Leão Alimentos e Bebidas Ltda.

Brazilian entity whose corporate purpose is to manufacture and commercialize food, beverages in general and beverage concentrates. Invest in other companies. The business relationship is to produce non-carbonated products for Coca-Cola bottlers in Brazil.

Kaik Participações Ltda.

Brazilian entity whose corporate purpose is to invest in other companies with its own resources.

SRSA Participações Ltda.

Brazilian entity whose corporate purpose is the purchase and sale of real estate investments and property management, supporting the business of Rio De Janeiro Refrescos Ltda. (Andina Brazil).

Sorocaba Refrescos S.A.

Brazilian entity whose corporate purpose is to manufacture and commercialize food, beverages in general and beverage concentrates, in addition to investing in other companies. It has commercial relationship with Rio De Janeiro Refrescos Ltda. (Andina Brazil).

Trop Frutas do Brasil Ltda.

Brazilian entity whose corporate purpose is to manufacture, commercialize and export natural fruit pulp and coconut water. The business relationship is to produce products for Coca-Cola bottlers in Brazil.

Coca-Cola del Valle New Ventures S.A.

Chilean entity whose corporate purpose is to manufacture, distribute and commercialize all kinds of juices, waters and beverages in general. The business relationship is to produce waters and juices for Coca-Cola bottlers in Chile.

14.2        Movements

The movement of investments in other entities accounted for using the equity method is shown below:

Description

    

12.31.2021

    

12.31.2020

    

12.31.2019

ThCh$

ThCh$

ThCh$

Opening balance

 

87,956,354

99,866,733

102,410,945

Dividends received

(3,236,541)

(1,215,126)

(1,076,491)

Share in operating income

4,041,118

3,248,680

(2,495,621)

Amortization unrealized income in associates

(435,884)

(566,422)

(919,462)

Other increase (decrease) in investments in associates*

 

3,164,147

(13,377,511)

1,947,362

Ending balance

 

91,489,194

87,956,354

99,866,733

*Mainly due to foreign exchange rates

The main movements are explained below:

Dividends declared in 2021 correspond to Sorocaba Refrescos S.A., Envases CMF S.A. and Coca-Cola del Valle New Ventures S.A..
In 2021 it was identified that for the brand Verde Campo (Trop Frutas do Brasil Ltda.) the recoverable value would be R$ 21.8 million, an amount below the book value recorded, proportionally impacting the result of Andina Brazil according to its participation (for more information see Note 2.8).
In 2020 Leão Alimentos e Bebidas Ltda. recognized the value of a plant at its use value less selling costs, reducing the value previously recognized. Andina recognized a proportional loss of Ch$2,931 million as income for the period 2020.
In the 2020 period Sorocaba Refrescos S.A., recognized a tax credit for excluding ICMS from the basis of calculation of PIS and COFINS. Andina recognized as results for the 2020 period a proportional result of CLP 2,134 million.
Dividends declared in 2020 correspond mainly to Envases CMF S.A
In December 2019, Leão Alimentos e Bebidas Ltda, performed an impairment provision at its Linhares Plant for BRL 256 million, Andina recognized as results for the 2019 fiscal year, a loss of CLP 4,671 million.
In 2019 Sorocaba Refrescos S.A., Coca-Cola del Valle and CMF S.A. distributed dividends.

14.3        Reconciliation of share of profit in investments in associates:

Description

    

12.31.2021

    

12.31.2020

    

12.31.2019

ThCh$

ThCh$

ThCh$

Equity value on income of associates

 

4,041,118

3,248,680

(2,495,621)

Unrealized earnings from product inventory acquired from associates and not sold at the end of the period, which is presented as a discount in the respective asset account (containers and / or inventory)

(512,131)

(528,122)

(394,490)

Amortization goodwill in the sale of fixed assets of Envases CMF S.A.

 

42,633

85,266

85,266

Amortization goodwill preferred rights CCDV S.A.

 

(478,518)

(523,061)

(610,238)

Income statement balance

 

3,093,102

2,228,763

(3,415,083)

14.4        Summary financial information of associates:

At December 31, 2021:

    

    

    

    

    

Leão

    

    

Kaik

SRSA

Alimentos e

Trop Frutas

Coca-

Envases

Sorocaba

Participaçōes

Participaçōes

Bebidas

do Brasil

Cola del Valle

CMF S.A.

Refrescos S.A.

Ltda.

Ltda.

Ltda.

Ltda.

New Ventures S.A.

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Short term assets

72,400,404

19,468,334

20,648

68,192,154

16,765,435

29,227,758

Long term assets

42,875,230

92,639,217

9,779,486

294,662

50,034,496

33,021,014

75,706,352

Total assets

115,275,634

112,107,551

9,779,486

315,310

118,226,650

49,786,449

104,934,110

Short term liabilities

57,080,891

21,255,565

186,266

12,991,480

10,009,915

10,181,664

Long term liabilities

14,467,165

34,960,269

28

6,489,944

18,294,787

7,164,058

Total liabilities

71,548,056

56,215,835

28

186,266

19,481,424

28,304,702

17,345,722

Total Equity

43,727,578

55,891,716

9,779,458

129,044

98,745,226

21,481,747

87,588,388

Total revenue from ordinary activities

77,805,312

(25,164,499)

204,624

126,016

94,169,579

35,224,230

46,509,329

Earnings before taxes

7,347,219

4,518,371

204,624

126,016

2,876,850

(31,042,731)

2,306,620

Earnings after taxes

5,509,658

2,573,415

204,624

126,016

1,556,223

(37,324,877)

2,869,945

Other comprehensive income

2,363,061

49,784

30,547,925

Total comprehensive income

4,936,476

1,606,007

(6,776,952)

Reporting date (See Note 2.3)

12.31.2021

11.30.2021

11.30.2021

11.30.2021

11.30.2021

11.30.2021

12.31.2021

At December 31, 2020:

    

    

    

    

    

Leão

    

    

Kaik

SRSA

Alimentos e

Trop Frutas

Coca-

Envases

Sorocaba

Participaçōes

Participaçōes

Bebidas

do Brasil

Cola del Valle

CMF S.A.

Refrescos S.A.

Ltda.

Ltda.

Ltda.

Ltda.

New Ventures S.A.

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

ThCh$

Short term assets

31,354,324

17,959,344

20,314

70,192,521

12,293,489

37,284,398

Long term assets

43,735,099

73,675,946

8,657,291

268,126

73,918,788

63,719,245

68,450,919

Total assets

 

75,089,423

91,635,290

8,657,291

288,440

144,111,309

76,012,734

105,735,317

Short term liabilities

 

17,929,088

16,295,336

168,354

28,383,151

5,000,314

9,116,608

Long term liabilities

 

16,704,773

28,180,230

26

9,251,314

16,235,813

10,883,589

Total liabilities

 

34,633,861

44,475,566

26

168,354

37,634,465

21,236,127

20,000,197

Total Equity

40,455,562

47,159,724

8,657,265

120,086

106,476,844

54,776,607

85,735,120

Total revenue from ordinary activities

60,067,879

52,345,526

96,980

117,350

84,813,829

31,483,800

30,329,646

Earnings before taxes

5,587,691

4,028,010

96,980

117,350

(38,601,167)

(1,391,494)

(1,226,517)

Earnings after taxes

4,717,515

3,004,352

96,980

117,350

(39,244,393)

(890,021)

(475,467)

Other comprehensive income

(1,899,548)

472,160

Total comprehensive income

1,104,804

(38,772,233)

Reporting date (See Note 2.3)

12.31.2020

11.30.2020

11.30.2020

11.30.2020

11.30.2020

11.30.2020

12.31.2020