Ambev(ABEV)2025-05-08 10:05Financial Performance - Net revenue increased by 6.7% year-over-year, with net revenue per hectoliter growing by 5.9%, driven by a 19.5% increase in Latin America South and an 11.4% increase in Brazil NAB[7]. - Consolidated net revenue reached R$ 22,497.4 million, an 11.0% increase, with organic growth of 6.7%[43]. - Gross profit improved from R$ 10,217.3 million in Q1 2024 to R$ 11,551.6 million in Q1 2025, marking a 9.9% growth[77]. - Normalized Operating Profit increased by 15.6%, from R$ 4,902.4 million in Q1 2024 to R$ 5,731.4 million in Q1 2025[77]. - Normalized EBITDA grew by 12.7%, from R$ 6,534.8 million in Q1 2024 to R$ 7,444.6 million in Q1 2025[77]. - The company reported a profit of R$ 3,804.6 million in Q1 2025, slightly up from R$ 3,804.2 million in Q1 2024[81]. Market and Volume Growth - Consolidated volumes grew by 0.7%, with Brazil increasing by 1.4% and Latin America South by 1.1%, while Central America and the Caribbean and Canada saw declines of 4.9% and 4.2%, respectively[6][7]. - Brazil NAB achieved record volumes of 8,934.6 thousand hl in 1Q25, reflecting a 3.2% organic growth compared to 1Q24[31]. - In Brazil, total volume reached 32,093.3 thousand hl in 1Q25, representing a 1.4% organic growth[34]. - Latin America South (LAS) reported a net revenue increase of 25.8% to R$ 5,536.1 million, with organic growth of 19.5%[38]. - The core beer segment represented close to 70% of total beer volumes, with megabrands increasing volumes by 3.5% and non-alcoholic beer brands growing volumes by mid-thirties[16][30]. Cost and Profitability - Normalized EBITDA grew by 12.7%, with margins expanding by 180 basis points to 33.1%, supported by disciplined cost management[8][26]. - Cash COGS per hl in Brazil increased by 12.1% primarily due to commodity headwinds, impacting overall profitability[32]. - The company reported a gross profit margin of 51.1% in Q1 2025, compared to 49.2% in Q1 2024[77]. - The normalized EBITDA margin improved from 32.2% in Q1 2024 to 33.1% in Q1 2025[77]. Cash Flow and Dividends - Cash flow from operating activities increased by 67.6% to R$ 1,204.0 million compared to R$ 718.2 million in 1Q24, driven by Normalized EBITDA growth and lower cash taxes[9][26]. - The Board of Directors approved the distribution of intermediary dividends of approximately R$ 2 billion to be paid in July[11][26]. - Dividends and interest on shareholders' equity paid surged from R$ 11.6 million in Q1 2024 to R$ 6,611.4 million in Q1 2025[83]. Financial Position and Debt - The company's total consolidated debt decreased from R$ 3,452.7 million as of December 31, 2024, to R$ 3,218.2 million by March 31, 2025[51]. - Total assets decreased from R$ 162,507.9 million as of December 31, 2024, to R$ 147,299.0 million as of March 31, 2025[79]. - Total liabilities reduced from R$ 62,927.4 million to R$ 51,823.1 million during the same period[79]. Market Share and Digital Initiatives - The company gained market share in carbonated soft drinks, with no-sugar variants like Guaraná Antarctica Zero and Pepsi Black growing by mid-twenties and mid-thirties, respectively[32]. - BEES Marketplace reached 1.4 million monthly active buyers, a 9% increase year-over-year, with Gross Merchandise Value (GMV) growing by 60%[20]. - The digital initiative BEES covered 83% of net revenue in Argentina, 76% in Bolivia, and 87% in Paraguay[39]. Financial Results and Expenses - Net finance results in 1Q25 totaled R$ (856.4) million, a significant decrease of R$ 450.4 million compared to R$ (405.9) million in 1Q24[48]. - Interest income decreased slightly from R$ 585.6 million in 1Q24 to R$ 564.2 million in 1Q25, while interest expenses also decreased from R$ (549.5) million to R$ (506.2) million[49]. - The effective tax rate increased from 15.0% in 1Q24 to 21.7% in 1Q25, with income tax and social contribution expense rising from R$ (671.2) million to R$ (1,051.7) million[53]. - Other operating income increased from R$ 593.0 million in 1Q24 to R$ 615.2 million in 1Q25, reflecting a growth of 3.7%[45]. Forward-Looking Statements - The company remains focused on investing in brands and operational efficiency, despite anticipated FX and commodity headwinds in the second quarter[27]. - Forward-looking statements indicate potential risks and uncertainties affecting future performance, with no guarantee that current expectations will be met[74].