- Ambev’s adjusted net income for the first quarter was R$3.82 billion, slightly surpassing the estimated R$3.72 billion.
- The reported net income remained consistent with the previous year at R$3.80 billion.
- Net revenue rose by 11% from the previous year, reaching R$22.50 billion, just below the estimated R$22.53 billion.
- Beer sales in Brazil increased by 3.2% year-over-year, totaling R$10.00 billion, slightly above the projected R$9.99 billion.
- Non-alcoholic beverage sales in Brazil were R$2.25 billion, marking an 11% year-over-year growth, and exceeding the estimate of R$2.18 billion.
- Sales in Central America & the Caribbean grew by 15% year-over-year to R$2.66 billion, narrowly beating the forecast of R$2.64 billion.
- Latin America South saw a significant increase in net sales, reaching R$5.54 billion, a 26% rise from the previous year, though slightly under the R$5.58 billion estimate.
- In Canada, net sales rose by 11% year-over-year to R$2.05 billion, close to the estimated R$2.06 billion.
- Ambev’s adjusted EBITDA was R$7.44 billion, reflecting a 14% year-over-year increase, and above the predicted R$7.36 billion.
- The adjusted EBITDA margin improved to 33.1%, surpassing last year’s 32.2% and the estimated 32.5%.
- The cost of goods sold was R$10.95 billion, an 8.8% increase from the previous year, but lower than the anticipated R$11.09 billion.
- The current analyst recommendations include 5 buys, 11 holds, and 3 sells.
A look at Ambev Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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
Based on Smartkarma Smart Scores, Ambev shows a promising long-term outlook. With strong scores in Dividend, Growth, Resilience, and Momentum, the company is positioned well for future success. Ambev’s focus on value, solid dividend payouts, robust growth potential, resilience in challenging market conditions, and positive momentum indicate a healthy overall outlook.
Ambev SA, primarily engaged in beer production and distribution, also operates in soft drinks and non-alcoholic beverages, boasting proprietary brands. Additionally, the company holds exclusive bottler and distributor rights for Pepsi CSD products in Brazil. With a mix of strengths in various key areas, Ambev appears to have a strong foundation for continued growth and success in the beverage industry.
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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