Ambev SA


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SKU: ABEV Category:


Ambev delivered a solid result and managed an all-around beat in the last quarter. Top-line growth was strong, exceeding 26%, outpacing the growth in expenses. Profitability improved, with gross margin increasing by 290 basis points and EBITDA margin increasing by 310 basis points. Brazil Beer had mid-single-digit growth in the quarter, supported by the return of street-level Carnival celebrations despite the bad weather. Their premium brands also experienced strong growth. Corona increased by about 35%, while the core sector remained resilient. Commercial momentum was also maintained at NAB. Volumes increased by more than 7% due to a solid portfolio and expanded distribution aided by BEES. Pepsi Black increased by over 200% and now accounts for 14% of the Pepsi-Cola portfolio. Guarana Antarctica increased by over 7%, headed by Guarana Zero. On the other hand, the macro climate in LAS continues to be difficult, causing operational unpredictability and pressure from inflation on disposable incomes. Volumes fell by about 8%, primarily because of Argentina and Chile. Furthermore, given the strong growth of their draught beer, the company introduced Brahma draught beer in a 350-liter aluminum container. 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
⦁ Disclosures

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