- Ambev reported an adjusted net income of R$5.02 billion for Q4, a 7.5% increase compared to the previous year, exceeding the estimated R$4.58 billion.
- Total net income also matched the adjusted figure, signifying an 11% year-over-year growth.
- The company’s net revenue rose by 35% to R$27.04 billion, surpassing the forecast of R$25.26 billion.
- Beer Brazil net sales slightly declined by 1% year-over-year to R$11.33 billion, falling short of the R$11.9 billion estimate.
- Non-alcoholic beverage Brazil net sales increased by 12% to R$2.38 billion, close to the R$2.39 billion predicted.
- Central America & Caribbean net sales stood at R$3.27 billion, up 17% from the previous year, exceeding expectations of R$3.16 billion.
- Latin America South net sales saw a significant leap to R$7.44 billion, compared to R$1.50 billion the previous year, and surpassed the R$5.44 billion estimate.
- Canada net sales were R$2.61 billion, marking a 24% increase year-over-year and beating the R$2.38 billion estimate.
- Adjusted EBITDA of R$9.62 billion represented a 35% year-over-year increase, outpacing the estimated R$8.33 billion.
- The adjusted EBITDA margin slightly decreased to 35.6% from 35.8% year-over-year, but was higher than the expected 33.6%.
- Cost of goods sold reached R$12.52 billion, up 35% year-over-year, slightly exceeding the anticipated R$12.05 billion.
- Analyst recommendations include 7 buys, 10 holds, and 2 sells.
A look at Ambev Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| 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 production and distribution of beer, along with its involvement in the soft drinks and non-alcoholic/non-carbonated sectors, has garnered mixed but overall positive Smart Scores. With a strong score in Resilience and Dividend, the company shows promising stability and commitment to rewarding its investors with consistent payouts. Additionally, Ambev’s Value score indicates a level of attractiveness in terms of its valuation. However, the Growth and Momentum scores suggest the company may need to focus on accelerating its growth trajectory and generating more market momentum to drive future performance.
Operating in Brazil with exclusive bottler and distributor rights for Pepsi CSD products, Ambev has established its presence in the beverage industry. While the current Smart Scores reflect a solid foundation and business model, enhancing growth prospects and increasing momentum could further solidify Ambev’s long-term outlook and position in the market.
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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