- Ambev’s adjusted net income for the second quarter was R$2.83 billion, which is a 15% increase year-over-year but below the estimate of R$2.9 billion.
- The company’s net income was R$2.79 billion, marking a 14% increase compared to the previous year.
- Net revenue was reported at R$20.09 billion, representing a small increase of 0.2% year-over-year. This was below the estimated R$21.37 billion.
- Beer sales in Brazil suffered a decline, with net sales hitting R$8.99 billion, down by 3.5% year-over-year and below the estimated R$9.6 billion.
- Adjusted EBITDA reached R$6.15 billion, a 5.9% year-over-year increase, yet it fell short of the expected R$6.29 billion.
- The company’s adjusted EBITDA margin improved to 30.6% from 29% year-over-year, exceeding the estimate of 29.2%.
- The cost of goods sold was R$10.05 billion, a slight decrease of 0.1% year-over-year, which was better than the estimated R$10.59 billion.
- Market analyst ratings for Ambev include 6 buy recommendations, 11 holds, and 3 sells.
A look at Ambev Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Ambev SA, a leading player in the beverage industry, is seen favorably in the long-term outlook based on its Smartkarma Smart Scores. With a strong emphasis on dividends and growth, Ambev has scored well in these areas, indicating a promising future for investors seeking income and potential expansion opportunities. Additionally, the company’s high resilience score suggests a stable foundation in the face of market fluctuations, providing a sense of security for stakeholders.
While Ambev’s momentum score may not be as high as some other factors, the overall positive outlook stemming from its solid performance across various metrics bodes well for its future prospects. As a key player in beer production and distribution, along with its presence in soft drinks and non-alcoholic beverages, Ambev’s diversified portfolio and exclusive partnerships position it well for continued success in the market.
### Ambev SA primary business is the production and distribution of beer. The Company also operates in the soft drinks and non-alcoholic and non-carbonated businesses with proprietary brands. Ambev has exclusive bottler and distributor rights for Pepsi CSD products in Brazil. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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