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UPDATE 1-Brazil brewer Ambev posts earnings beat on record Q2 volumes

UPDATE 1-Brazil brewer Ambev posts earnings beat on record Q2 volumes

Reuters · 07/28/2022 03:59
UPDATE 1-Brazil brewer Ambev posts earnings beat on record Q2 volumes

Adds details, context, quotes

- Brazilian brewer Ambev SA ABEV beat expectations on Thursday with a 4.6% rise in second-quarter income, boosted by higher volumes, despite high commodity prices that increased its costs.

Net income rose to 3.06 billion reais ($583.56 million), way ahead of a forecast of 2.11 billion by analysts polled by Reuters.

The company, a subsidiary of Belgium's Anheuser-Busch InBev SA BUD, said total volumes grew by 6.1% in the period.

"This quarter marked the first time we sold more than 40 million hectoliters in a second quarter," Chief Executive Jean Jereissati said in a statement.

However, its cost of goods sold per hectoliter jumped 17.8% as high commodity prices continued to affect the key indicator, the firm said.

Ambev is Brazil's third-largest company by market capitalisation, with its current valuation of 231.18 billion-reais placing it behind only state-run oil firm Petrobras PBR A and mining giant Vale SA VALE.

The company said the first half performance made it more confident in its ability to deliver organic adjusted EBITDA growth this year over 2021, despite what it called "short-term challenges and volatility".

The brewer's earnings report also showed that Ambev's adjusted EBITDA margin, a closely watched measure of operating profitability, dropped 290 basis points on a yearly basis to 30.8%, but improved from the 30% level of the previous three months.

Net revenue rose 14.5% to 17.99 billion reais, while analysts had expected it to reach 17.39 billion reais.

"For the full year, we continue to expect top line performance ahead of bottom line recovery," Ambev said.

($1=5.2437 reais)


(Reporting by Gabriel Araujo; Editing by Jason Neely and Clarence Fernandez)

((Gabriel.Araujo2@thomsonreuters.com; +55 11 5644 7745;))