Ambev’s adjusted net profit (ABEV3) fell 0.6% in 1Q24, reaching R$3.817 billion compared to R$3.839 billion in the same period in 2023.
The company’s adjusted EBITDA rose 1.4% to reach R$6.5 billion compared to R$6.4 billion in 1Q23.
Net revenue fell 1.2% in 1QR24, reaching R$20.2 million compared to R$20.5 billion in 1QR23.
Management reported that in the aforementioned period the company achieved double-digit Adjusted EBITDA growth (considering Argentina’s limited organic results), driven by several factors, including increased net revenue, favorable exchange rate conditions and commodity prices, and management disciplined costs and expenses. “This quarter also marked another period of operational leverage, with expansion of gross margins and Adjusted EBITDA for the sixth consecutive quarter”, he highlighted, in the note accompanying the balance sheet.
Ambev (ABEV3)
Furthermore, he wrote that Brazil led the trade momentum once again, with consistent execution of the consumer-centric strategy resulting in record volumes for Beer and NAB (Non-Alcoholic and Beverages). “In the Beer category, we surpassed the industry’s low single-digit growth, while our average consumer prices remained slightly above inflation. Premium/super premium brands and core plus brands recorded double-digit volume growth, and core brands grew slightly above the industry average. At NAB, our sugar-free brands continued to grow by more than 20% for the ninth consecutive quarter, led by Guaraná Antarctica Zero and Pepsi Black”, he highlighted.
In international operations, the company saw performance driven by commercial strategy in the Dominican Republic, while facing challenges in declining industries in Argentina and Canada.
“Despite the growth in Adjusted EBITDA and a better net financial result, Adjusted Net Profit had a slight drop due to the exchange rate devaluation in Argentina and the increase in income tax expenses in Brazil. However, in terms of cash flow, we observed an increase of almost R$1.3 billion in operational activities compared to the first quarter of 2023”, he highlighted.
