Ambev delivered mixed results in Q4. The company saw a 1.5% increase in volumes though its revenues were below Wall Street expectations. With the growth in all markets, net revenue per hectoliter increased by over 20%. Also, despite the impact of inflationary pressures on Ambev’s expenditures and expenses, normalized EBITDA increased in the quarter and the company delivered an earnings beat. During the quarter, the advertising execution during the FIFA World Cup stood out. While Ze Delivery was the official delivery app of the Brazilian national team, it expanded to over 350 cities around Brazil, raising awareness from 50% to 62%. Regarding Brazil NAB, Guarana Antarctica was one of the most talked about brands on social media during the World Cup, as it is the official sponsor of the Brazilian national team. Pepsi Black, however, remained strong, more than doubling volumes compared to Q4 2022. Additionally, the company received the PepsiCo Bottler of the Year award for Latin America. On the other hand, implementing the company’s commercial plan has given the business momentum, boosting its top line. Ambev intends to continue its steady and continuous improvement in 2023. We give Ambev S.A. a ‘Hold’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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