AMBEV REPORTS 2023 FOURTH QUARTER AND FULL YEAR RESULTS1

Sample article from our Food & Beverage

February 29, 2024 (press release) –

"We delivered a strong finish to the year, led by Brazil and CAC. 2023 was another year of consistent improvement, as the execution of our strategy delivered sustained growth and better profitability." - Jean Jereissati, CEO

Total Volume (organic)

Net Revenue (organic)

4Q: -0.1% vs LY

FY: -1.1% vs LY

4Q: 29.5% vs LY

FY: 24.1% vs LY

Total volumes in 4Q23 were virtually flat as growth in Central America and the Caribbean ("CAC") (+7.7%) and Brazil (+0.8% resulting from +6.2% in NAB and -1.1% in Beer) was offset by Latin America South ("LAS") (-3.8%) and Canada (- 7.4%), where volumes continued to be primarily impacted by declining industries.

Top line performance was driven by net revenue per hectoliter ("NR/hl") growth of 29.7% in 4Q23. Net revenue grew in most of our reported business units: LAS2 +110.2%, CAC +12.6%, Brazil Beer +6.1% and Brazil NAB +5.7%, while in Canada it was down 3.6% impacted by volume decline.

Normalized EBITDA (organic)

4Q: 49.0% vs LY

FY: 42.6% vs LY

Normalized EBITDA growth in 4Q23 was driven by LAS (+107.5%), CAC (+29.2%), Brazil Beer (+27.3%) and Brazil NAB (+15.3%), and partially

offset by Canada (-1.5%).Ex-Argentina, Normalized EBITDA grew by 19.9%. Gross margin expanded 280 bps while Normalized EBITDA margin expanded 470 bps.

Normalized Profit

4Q: R$ 4,667.5 million

FY: R$ 15,227.2 million

Despite Normalized EBITDA growth and lower financial expenses, Normalized Profit declined by 11.9% compared to R$ 5,299.7 million in 4Q22, due to FX depreciation in Argentina and phasing of IOC tax deductibility accrual. Nevertheless, FY23 Normalized Profit increased slightly (+0.4%) compared to R$ 15,166.8 million in FY22.

Cash flow from operating activities

4Q: R$ 13,949.0 million

FY: R$ 24,711.4 million

Cash flow from operating activities increased by 18.1% compared to R$ 11,810.8 million in 4Q22 due to better working capital cycle driven mostly by increased payables and reduced inventories. In FY23, cash flow from operating activities increased by 19.7% compared to R$ 20,642.2 million in FY22.

Sustainability

As part of our decarbonization plan, we ended the year with 15 carbon neutral plants, with additional four carbon neutral breweries delivered in Brazil in 4Q23: Uberlândia, Colorado, Viamão and Cuiabá.

  1. The following operating and financial information, unless otherwise indicated, is presented in nominal Reais and prepared according to the International
    Financial Reporting Standards ("IFRS") issued by the International Accounting Standards Board ("IASB") and to the accounting practices issued by the Brazilian Accounting Standards Committee ("CPC") and approved by the Brazilian Securities and Exchange Commission ("CVM"). The information herein should be read together with our financial information for the twelve-month period ended December 31, 2023, filed with the CVM and submitted to the U.S.
    Securities and Exchange Commission ("SEC").
  2. The impacts resulting from applying Hyperinflation Accounting for our Argentinean subsidiaries, in accordance with IAS 29, are detailed in the section Financial Reporting in Hyperinflationary Economies - Argentina (page 15).

ambev.com.br

 

Press Release - February 29, 2024

 
       
       

Page | 2

MANAGEMENT COMMENTS

Continued to deliver bottom line growth with margin expansion, despite the accounting impact of the currency devaluation in Argentina

In 2023, we continued to progress in our transformation journey and delivered on our strategy of leading and growing the category, digitizing and monetizing our ecosystem, and optimizing our business.

Brazil led the way once more, driven by the disciplined execution of our commercial strategy. Recovery in CAC was driven by the Dominican Republic, which delivered a record year. Canada delivered Normalized EBITDA growth amid a tough industry backdrop. And LAS performance was materially impacted by the currency devaluation in Argentina; however, our preparedness in the country paid off and we managed to generate more cash flow in USD than in 2022.

Our digital initiatives continued to scale up. BEES is now present in 8 of our top 10 markets, and we offer third- party products in 7 of those. Gross Merchandise Value (GMV) of BEES marketplace grew over 44% versus FY22. As for direct-to-consumer, Zé Delivery expanded coverage and awareness in Brazil, reaching 5.7 million Monthly Active User (MAU) (+19% vs. LY), and Ta Da is live in 6 markets.

We also managed to deliver improved operational leverage, with gross and Normalized EBITDA margins expanding (+240bps and +430bps, respectively) thanks to net revenue growth, greater FX and commodity tailwinds versus FY22 and disciplined cost and expense management.

Financial highlights - Ambev consolidated

   

% As

     

% As

 
             

R$ million

4Q22

4Q23

Reported

% Organic

FY22

FY23

Reported

% Organic

Volume ('000 hl)

52,169.3

52,091.6

-0.1%

-0.1%

185,749.7

183,659.0

-1.1%

-1.1%

Net revenue

22,693.0

19,989.2

-11.9%

29.5%

79,708.8

79,736.9

0.0%

24.1%

Gross profit

11,707.8

10,688.0

-8.7%

36.4%

39,286.8

40,445.3

2.9%

30.3%

% Gross margin

51.6%

53.5%

190 bps

280 bps

49.3%

50.7%

140 bps

240 bps

Normalized EBITDA

7,109.3

7,151.5

0.6%

49.0%

23,770.9

25,455.4

7.1%

42.6%

% Normalized EBITDA margin

31.3%

35.8%

450 bps

470 bps

29.8%

31.9%

210 bps

430 bps

Profit

5,083.4

 

-10.9%

 

14,891.3

 

0.5%

 

4,528.4

 

14,960.5

 

Normalized profit

5,299.7

4,667.5

-11.9%

 

15,166.8

15,227.2

0.4%

 

EPS (R$/shares)

0.33

0.29

-12.7%

 

0.94

0.94

0.2%

 

Normalized EPS (R$/shares)

0.33

0.29

-12.6%

 

0.93

0.93

0.3%

 
                 

Ambev as a platform

To deliver on the strategy, the focus remained on executing each of the pillars of our platform framework, which has evolved to also include a 6th pillar - "Sustainable Value Creation" - that encompasses operational excellence and capital allocation efficiency in order to maximize long-term value creation.

  1. Free cash flow to equity totaled R$ 13.4 billion in FY23.
  1. Bora, our productive inclusion program in Brazil, impacted over 200,000 people in 2023.
  1. Zé Delivery's Average Order Value (AOV) increased by 11% vs FY22, and awareness hit an all-time high.
  1. "Advertiser of the Year" for the 2nd consecutive year at the Effie Brazil Awards with Brahma, Budweiser, Stella Artois, Guaraná Antarctica, Mike's and Zé Delivery.
  2. Stella Pure Gold and Budweiser Zero innovation well positioned, as consumers continue to embrace health & wellness.
  3. Internationally, BEES covered by YE23 100% of net revenue in Panama, 96% in the Dominican Republic, 90% in Argentina, 87% in Paraguay and 47% in Bolivia.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Page | 3

Sustainability

The tone starts at the top, with all members of our Executive Board having a sustainability-related target in 2023. The year was also marked by consistent improvement in terms of our 2025 environmental commitments, which are all on track (see table below). An important milestone was being the first company of the brewing sector in Latin America to receive final approval for our emission reduction target from the Science-based Targets Initiative (SBTi). In addition, we closed 2023 with an average of 2.37 liters of water used per liter of beverage produced, improving over 8% versus 2022.

WATER

STEWARD

CLIMATE

ACTION

CIRCULAR

PACKAGING

SUSTAINABLE

AGRICULTURE

     

BRAZIL

LAS

CAC

CANADA

 

AMBEV

 

Goal

 

Status

 
         

2025

 

2023

 
                       

Watersheds

&

Forests

                     

(High risk sites in benefit monitoring

100%

0%

-

-

 

72.7%

 

100%

 

On Track

 

phase as per 7-step charter)(1)

                     

AMA

   

953,000

-

-

-

 

953,000

 

1,000,000

 

Better

 

(Number of people benefitted)

       
                     

Renewable

electricity

                     

(% of total electric energy

100%

90.5%

78.6%

92.5%

 

95.7%

 

100%

 

On track

 

contracted)

                         

GHG emission - Intensity (kg

                     

CO2e/Hl)

   

8.9%

27.2%

62.3%

7.4%

 

19.0%

 

25%

 

On Track

 

(% reduction of CO2 intensity versus

       
                     

baseline (2017); Scope 1, 2 and 3)

                     

GHG emission - Absolute (t

                     

CO2e)

                         

(% reduction of CO2 absolute

40.1%

41.8%

20.9%

40.2%

 

34.2%

 

35%

 

Better

 

emissions versus

baseline

(2017);

                     

Scope 1 and 2 - Owned Operations)

                     

Glass

   

43.6%

44.0%

44.3%

40.7%

 

43.6%

 

≥ 50.1%

 

On Track

 

(% of glass used that was recycled)

       
                     

Aluminum

                         

(% of aluminum used that was

78.0%

76.7%

48.2%

68.4%

 

75.2%

 

≥ 50.1%

 

Achieved

 

recycled)

                         

Plastic (PET)

   

54.8%

8.4%

30.4%

-

 

40.3%

 

≥ 50.1%

 

On Track

 

(% of plastic used that was recycled)

       
                     

Plastic Commitment

 

64%

-

-

-

 

64%

 

100%

 

On Track

 

Skilled producers(2)

 

98%

90%

-

-

 

92%

 

100%

 

Better

 

Connected producers(3)

                       
 

99%

100%

-

-

 

100%

 

100%

 

Better

 

Financially

empowered

                     

98%

100%

-

-

 

99%

 

100%

 

Better

 

producers(4)

           
                         
  1. 7-StepCharter consists of: (i) engagement; (ii) problem identification/prioritization; (iii) solutions agreed; (iv) plan implementation; (v) governance; (vi) communication; and (vii) monitoring.
  2. Producer must have (i) access to a variety of crops approved by Ambev for production, (ii) technical protocol for production, and (iii) at least two technical visits during the culture cycle.
  3. Producer must be registered in Agroportal platform or another similar platform (e.g. SmartBarley, ManejeBem etc.).
  4. Producer has access to the tools to reduce production risks (e.g. agricultural insurance, specific financing etc.).

2024 OUTLOOK

Since 2020 we have operated amid volatility and uncertainty. Nonetheless, we have managed to overcome the challenges and improve our commercial and financial performance year after year. Top line-led recovery was followed by bottom-line recovery, and profitability has been coming back, first through better ROIC and since last year with better operational leverage. And cash flow generation has remained resilient throughout.

As a result, we begin the new year better positioned than we began 2023: our brands are healthier, the innovation pipeline remains solid, and the digital strategy is working. In addition, we expect to face less input cost pressure given currency and commodities tailwinds partially offset by mix and fair value adjustment of payables (due to lower interest rate) in Brazil. Therefore, assuming current commodity and FX prices (BRL/USD hedge rate for 2024 at 4.97), we expect our Cash COGS per hectoliter in Brazil Beer (excluding non-Ambev marketplace products) to decrease between 0.5-3.0% in the year.

2024 also brings a few important challenges:

  • Following the Argentinean Peso devaluation in December, we expect a tough start to the year as the economy adjusts to a higher inflationary environment. Although we begin the year with no FX hedge coverage, we have adapted quickly and will continue to focus on improving our free cash flow generation in USD.
  • In Brazil, legislation enacted in December 2023 and effective as of January 2024 changed the rules regarding deductibility for income tax purposes of IOC and State VAT government grants. Regarding the IOC, the main change is that certain amounts recorded in "Carrying Value Adjustments" will now be considered for purposes of the IOC calculation basis, resulting in a reduction thereof. As for the State VAT government grants, given that the legislative changes have led to litigation by several parties on constitutional grounds, the extent of the impact (if any) remains unclear.

All in all, we will work to deliver another year of net revenue and EBITDA growth, as well as gross and EBITDA margins expansion, driven by a better balance between volume and NR/hl growth, and cost and expense discipline leading to operational leverage once again.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Page | 4

KEY MARKETS PERFORMANCES

Brazil Beer: mid-single digit top line and double-digitbottom-line growth translating into margin expansion once again

  • Operating performance: volumes were down 1.1% on the back of a tough comp from FIFA World Cup™. Top line grew by 6.1% as the continued disciplined execution of our revenue management strategy coupled with positive brand mix drove NR/hl sequential and year-over-year growth (+7.2% vs. 4Q22). Cash COGS/hl excluding the sale of non-Ambev marketplace products dropped by 2.4% primarily due to FX and commodities tailwinds, while Cash SG&A was down 2.3% led mainly by lower distribution expenses.
    In FY23, net revenue grew by 8.7% (volumes -1.0% and NR/hl +9.8%), Cash COGS per hectoliter (excluding the sale of non-Ambev marketplace products) was up 3.2% (within our guidance for the year), and Normalized EBITDA increased by 28.9%, with gross margin expansion of 260 bps, and Normalized EBITDA margin expansion of 500 bps.
  • Commercial highlights: in FY 23, our premium and super premium beer brands grew by mid- twenties, led by Corona, Spaten and Original, with improvements in brand health indicators and market share gains, according to our estimates. In the core plus segment, Budweiser family increased volumes by mid-teens, with Budweiser Zero distribution expanding over six times versus last year. Our core segment remained resilient, with a low-single digit decline year-over-year. We estimate our market share slightly declined in the year as our value brands offset premium and super premium performance.

Brazil Beer3

   

Currency

Organic

 

% As

   

R$ million

4Q22

Scope

Translation

Growth

4Q23

Reported

% Organic

 

Volume ('000 hl)

26,605.0

-

 

(285.0)

26,320.0

-1.1%

-1.1%

 

Net revenue

10,794.5

-

-

658.2

11,452.7

6.1%

6.1%

 

Net revenue/hl (R$)

405.7

-

-

29.4

435.1

7.2%

7.2%

 

COGS

(5,401.6)

-

-

147.5

(5,254.1)

-2.7%

-2.7%

 

COGS/hl (R$)

(203.0)

-

-

3.4

(199.6)

-1.7%

-1.7%

 

COGS excl. deprec. & amort.

(4,950.6)

-

-

152.4

(4,798.2)

-3.1%

-3.1%

 

COGS/hl excl. deprec. & amort. (R$)

(186.1)

-

-

3.8

(182.3)

-2.0%

-2.0%

 

Gross profit

5,392.8

-

-

805.7

6,198.5

14.9%

14.9%

 

% Gross margin

50.0%

     

54.1%

410 bps

410 bps

 

SG&A excl. deprec. & amort.

(3,073.1)

-

-

70.2

(3,002.9)

-2.3%

-2.3%

 

SG&A deprec. & amort.

(376.6)

-

-

(151.7)

(528.3)

40.3%

40.3%

 

SG&A total

(3,449.8)

-

-

(81.5)

(3,531.2)

2.4%

2.4%

 

Other operating income/(expenses)

332.6

185.4

-

(32.5)

485.5

46.0%

-9.8%

 

Normalized Operating Profit

2,275.7

185.4

-

691.7

 

38.5%

30.4%

 

3,152.7

 

% Normalized Operating margin

21.1%

0.0%

0.0%

0.0%

27.5%

640 bps

480 bps

 

Normalized EBITDA

3,103.4

185.4

-

848.2

4,137.0

33.3%

27.3%

 

% Normalized EBITDA margin

28.7%

     

36.1%

740 bps

570 bps

 
                 

Brazil Beer

   

Currency

Organic

 

% As

   
         

R$ million

FY22

Scope

Translation

Growth

FY23

Reported

% Organic

 

Volume ('000 hl)

94,042.6

-

 

(931.1)

93,111.6

-1.0%

-1.0%

 

Net revenue

35,857.8

-

-

3,128.1

38,985.9

8.7%

8.7%

 

Net revenue/hl (R$)

381.3

-

-

37.4

418.7

9.8%

9.8%

 

COGS

(18,765.3)

-

-

(612.4)

(19,377.7)

3.3%

3.3%

 

COGS/hl (R$)

(199.5)

-

-

(8.6)

(208.1)

4.3%

4.3%

 

COGS excl. deprec. & amort.

(17,077.6)

-

-

(440.7)

(17,518.3)

2.6%

2.6%

 

COGS/hl excl. deprec. & amort. (R$)

(181.6)

-

-

(6.5)

(188.1)

3.6%

3.6%

 

Gross profit

17,092.5

-

-

2,515.8

19,608.3

14.7%

14.7%

 

% Gross margin

47.7%

     

50.3%

260 bps

260 bps

 

SG&A excl. deprec. & amort.

(10,262.9)

-

-

(196.2)

(10,459.0)

1.9%

1.9%

 

SG&A deprec. & amort.

(1,251.1)

-

-

(537.1)

(1,788.2)

42.9%

42.9%

 

SG&A total

(11,514.0)

-

-

(733.2)

(12,247.3)

6.4%

6.4%

 

Other operating income/(expenses)

1,884.5

(670.9)

-

260.5

1,474.1

-21.8%

25.3%

 

Other operating income/(expenses) excl. impair.

1,884.5

(670.9)

-

266.3

1,479.9

-21.5%

25.9%

 

Normalized Operating Profit

7,463.0

(670.9)

-

2,043.0

 

18.4%

30.9%

 

8,835.1

 

% Normalized Operating margin

20.8%

0.0%

0.0%

0.0%

22.7%

190 bps

380 bps

 

Normalized EBITDA

10,401.8

(670.9)

-

2,757.6

12,488.5

20.1%

28.9%

 

% Normalized EBITDA margin

29.0%

     

32.0%

300 bps

500 bps

 
                 

3 In 4Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 425.2 (7.2% organic growth) and R$ (173.9) (2.4% organic decline), respectively. In FY23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 407.5 (9.7% organic growth) and R$ (178.3) (3.2% organic growth), respectively. The scope change in Brazil Beer refers to tax credits and related effects.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Page | 5

Brazil NAB: double-digitbottom-line growth, with margin expansion

  • Operating performance: positive volume performance (+6.2%) led by the consistent execution of our commercial strategy drove a top line growth of 5.7%, despite NR/hl drop (-0.5%) mostly due to increased ICMS (VAT) taxable base for carbonated soft drinks and channel mix (increased third-party distribution). Cash COGS/hl declined by 7.2%, mostly driven by to FX tailwinds and sugar reduction, while Cash SG&A was down 2.2%, benefitting from efficiencies on commercial and distribution expenses.
    In FY23, net revenue increased by 8.8% (volumes +3.6% and NR/hl +5.0%), and Normalized EBITDA rose by 19.7%, with gross margin expansion of 250 bps, and Normalized EBITDA margin expansion of 230 bps.
  • Commercial highlights: in FY23, we reached record volumes, with stable market share, according to our estimates. Energy and health & wellness brands outperformed in volumes, led mainly by Fusion (which almost doubled its volumes vs. FY22), diet/light/zero portfolio and Gatorade. Within diet/light/zero brands, Guaraná Antarctica Zero grew volumes by high teens, while Pepsi Black more than doubled its volumes versus FY22, and more than quintuplicated them versus FY21. We also delivered a sugar reduction of over 17% versus FY22 and 25% versus FY21 in our non-alcoholic portfolio.

Brazil NAB4

   

Currency

Organic

 

% As

   

R$ million

4Q22

Scope

Translation

Growth

4Q23

Reported

% Organic

 

Volume ('000 hl)

9,032.4

-

 

558.6

9,590.9

6.2%

6.2%

 

Net revenue

2,022.3

-

-

115.3

2,137.6

5.7%

5.7%

 

Net revenue/hl (R$)

223.9

-

-

(1.0)

222.9

-0.5%

-0.5%

 

COGS

(1,118.8)

-

-

(14.0)

(1,132.8)

1.2%

1.2%

 

COGS/hl (R$)

(123.9)

-

-

5.8

(118.1)

-4.6%

-4.6%

 

COGS excl. deprec. & amort.

(1,060.4)

-

-

15.6

(1,044.8)

-1.5%

-1.5%

 

COGS/hl excl. deprec. & amort. (R$)

(117.4)

-

-

8.5

(108.9)

-7.2%

-7.2%

 

Gross profit

903.5

-

-

101.3

1,004.8

11.2%

11.2%

 

% Gross margin

44.7%

     

47.0%

230 bps

230 bps

 

SG&A excl. deprec. & amort.

(608.8)

-

-

13.3

(595.5)

-2.2%

-2.2%

 

SG&A deprec. & amort.

(60.3)

-

-

(1.8)

(62.1)

3.0%

3.0%

 

SG&A total

(669.1)

-

-

11.5

(657.6)

-1.7%

-1.7%

 

Other operating income/(expenses)

128.2

32.7

-

(70.8)

90.1

-29.7%

-55.2%

 

Normalized Operating Profit

362.5

32.7

-

42.0

 

20.6%

11.6%

 

437.3

 

% Normalized Operating margin

17.9%

0.0%

0.0%

0.0%

20.5%

260 bps

100 bps

 

Normalized EBITDA

481.3

32.7

-

73.4

587.4

22.1%

15.3%

 

% Normalized EBITDA margin

23.8%

     

27.5%

370 bps

220 bps

 
                 

Brazil NAB

   

Currency

Organic

 

% As

   
         
           

R$ million

FY22

Scope

Translation

Growth

FY23

Reported

% Organic

 

Volume ('000 hl)

32,141.8

-

 

1,166.3

33,308.1

3.6%

3.6%

 

Net revenue

6,777.9

-

-

597.9

7,375.8

8.8%

8.8%

 

Net revenue/hl (R$)

210.9

-

-

10.6

221.4

5.0%

5.0%

 

COGS

(3,971.5)

-

-

(166.9)

(4,138.4)

4.2%

4.2%

 

COGS/hl (R$)

(123.6)

-

-

(0.7)

(124.2)

0.6%

0.6%

 

COGS excl. deprec. & amort.

(3,747.0)

-

-

(167.9)

(3,914.9)

4.5%

4.5%

 

COGS/hl excl. deprec. & amort. (R$)

(116.6)

-

-

(1.0)

(117.5)

0.8%

0.8%

 

Gross profit

2,806.4

-

-

431.0

3,237.4

15.4%

15.4%

 

% Gross margin

41.4%

     

43.9%

250 bps

250 bps

 

SG&A excl. deprec. & amort.

(1,808.0)

-

-

(165.1)

(1,973.1)

9.1%

9.1%

 

SG&A deprec. & amort.

(199.9)

-

-

(48.5)

(248.4)

24.2%

24.2%

 

SG&A total

(2,008.0)

-

-

(213.5)

(2,221.5)

10.6%

10.6%

 

Other operating income/(expenses)

476.9

(102.1)

-

43.4

418.3

-12.3%

12.7%

 

Normalized Operating Profit

1,275.4

(102.1)

-

260.9

 

12.5%

22.9%

 

1,434.2

 

% Normalized Operating margin

18.8%

0.0%

0.0%

0.0%

19.4%

60 bps

220 bps

 

Normalized EBITDA

1,699.8

(102.1)

-

308.3

1,906.1

12.1%

19.7%

 

% Normalized EBITDA margin

25.1%

     

25.8%

70 bps

230 bps

 
                 

4 The scope change in Brazil NAB refers to tax credits and related effects.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Page | 6

BRAZIL

Brazil5

   

Currency

Organic

 

% As

   
           

R$ million

4Q22

Scope

Translation

Growth

4Q23

Reported

% Organic

 

Volume ('000 hl)

35,637.4

-

 

273.6

35,910.9

0.8%

0.8%

 

Net revenue

12,816.7

-

-

773.5

13,590.2

6.0%

6.0%

 

Net revenue/hl (R$)

359.6

-

-

18.8

378.4

5.2%

5.2%

 

COGS

(6,520.4)

-

-

133.5

(6,386.9)

-2.0%

-2.0%

 

COGS/hl (R$)

(183.0)

-

-

5.1

(177.9)

-2.8%

-2.8%

 

COGS excl. deprec. & amort.

(6,010.9)

-

-

168.0

(5,843.0)

-2.8%

-2.8%

 

COGS/hl excl. deprec. & amort. (R$)

(168.7)

-

-

6.0

(162.7)

-3.5%

-3.5%

 

Gross profit

6,296.3

-

-

907.0

7,203.3

14.4%

14.4%

 

% Gross margin

49.1%

     

53.0%

390 bps

390 bps

 

SG&A excl. deprec. & amort.

(3,682.0)

-

-

83.6

(3,598.4)

-2.3%

-2.3%

 

SG&A deprec. & amort.

(436.9)

-

-

(153.5)

(590.5)

35.1%

35.1%

 

SG&A total

(4,118.9)

-

-

(70.0)

(4,188.9)

1.7%

1.7%

 

Other operating income/(expenses)

460.8

218.1

-

(103.3)

575.6

24.9%

-22.4%

 

Normalized Operating Profit

2,638.2

218.1

-

733.7

 

36.1%

27.8%

 

3,590.0

 

% Normalized Operating margin

20.6%

0.0%

0.0%

0.0%

26.4%

580 bps

420 bps

 

Normalized EBITDA

3,584.6

218.1

-

921.7

4,724.4

31.8%

25.7%

 

% Normalized EBITDA margin

28.0%

     

34.8%

680 bps

520 bps

 
                 

Brazil

   

Currency

Organic

 

% As

   
         
           

R$ million

FY22

Scope

Translation

Growth

FY23

Reported

% Organic

 

Volume ('000 hl)

126,184.4

-

-

235.2

126,419.7

0.2%

0.2%

 

Net revenue

42,635.7

-

-

3,726.1

46,361.8

8.7%

8.7%

 

Net revenue/hl (R$)

337.9

-

-

28.8

366.7

8.5%

8.5%

 

COGS

(22,736.8)

-

-

(779.2)

(23,516.0)

3.4%

3.4%

 

COGS/hl (R$)

(180.2)

-

-

(5.8)

(186.0)

3.2%

3.2%

 

COGS excl. deprec. & amort.

(20,824.6)

-

-

(608.6)

(21,433.2)

2.9%

2.9%

 

COGS/hl excl. deprec. & amort. (R$)

(165.0)

-

-

(4.5)

(169.5)

2.7%

2.7%

 

Gross profit

19,898.9

-

-

2,946.8

22,845.7

14.8%

14.8%

 

% Gross margin

46.7%

     

49.3%

260 bps

260 bps

 

SG&A excl. deprec. & amort.

(12,070.9)

-

-

(361.3)

(12,432.2)

3.0%

3.0%

 

SG&A deprec. & amort.

(1,451.1)

-

-

(585.5)

(2,036.6)

40.4%

40.4%

 

SG&A total

(13,522.0)

-

-

(946.8)

(14,468.8)

7.0%

7.0%

 

Other operating income/(expenses)

2,361.4

(772.9)

-

304.0

1,892.5

-19.9%

22.2%

 

Other operating income/(expenses) excl. impair.

2,361.4

(772.9)

-

309.7

1,898.2

-19.6%

22.6%

 

Normalized Operating Profit

8,738.3

(772.9)

-

2,304.0

 

17.5%

29.7%

 

10,269.4

 

% Normalized Operating margin

20.5%

0.0%

0.0%

0.0%

22.2%

170 bps

350 bps

 

Normalized EBITDA

12,101.6

(772.9)

-

3,065.9

14,394.6

18.9%

27.6%

 

% Normalized EBITDA margin

28.4%

     

31.0%

260 bps

450 bps

 
                 

5 In 4Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 371.1 (5.2% organic growth) and R$ (156.5) (3.8% organic decline), respectively. In FY23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 358.5 (8.5% organic growth) and R$ (162.3) (2.4% organic growth), respectively. The scope change in Brazil refers to tax credits and related effects.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Page | 7

Central America and the Caribbean (CAC): continued recovery trend with another quarter of double- digit top and bottom line growth led by Dominican Republic

  • Operating performance: volumes were up 7.7% driven by the Dominican Republic performance in the context of a healthier beer industry. Net revenue grew by 12.6%, with NR/hl up 4.5% mostly due to revenue management initiatives combined with positive brand and package mix (led by premium brands and single serves, respectively). Cash COGS/hl continued to decelerate thanks to commodities lower prices and better package mix (especially due to returnable bottles recovery in the Dominican Republic).
    In FY23, net revenue grew by 10.9% (volumes +3.3% and NR/hl +7.4%), and Normalized EBITDA was up 22.0%, with gross margin expansion of 150 bps, and Normalized EBITDA margin expansion of 350 bps.
  • Commercial highlights: in the Dominican Republic, our premium segment grew volumes by mid- twenties in FY23, led by Corona, while Presidente family of brands increased volumes by low teens, with enhanced brand health. In Panama, Balboa family of brands continued to deliver positive performance, increasing volumes by twenties.

CAC6

   

Currency

Organic

 

% As

   

R$ million

4Q22

Scope

Translation

Growth

4Q23

Reported

% Organic

 

Volume ('000 hl)

3,112.5

-

 

240.8

3,353.3

7.7%

7.7%

 

Net revenue

2,714.6

-

(259.1)

340.9

2,796.4

3.0%

12.6%

 

Net revenue/hl (R$)

872.2

-

(77.3)

39.0

833.9

-4.4%

4.5%

 

COGS

(1,336.6)

-

117.1

(120.9)

(1,340.4)

0.3%

9.0%

 

COGS/hl (R$)

(429.4)

-

34.9

(5.2)

(399.7)

-6.9%

1.2%

 

COGS excl. deprec. & amort.

(1,196.4)

-

102.0

(118.2)

(1,212.5)

1.3%

9.9%

 

COGS/hl excl. deprec. & amort. (R$)

(384.4)

-

30.4

(7.6)

(361.6)

-5.9%

2.0%

 

Gross profit

1,378.0

-

(142.0)

219.9

1,456.0

5.7%

16.0%

 

% Gross margin

50.8%

     

52.1%

130 bps

150 bps

 

SG&A excl. deprec. & amort.

(425.6)

-

43.6

(52.6)

(434.5)

2.1%

12.4%

 

SG&A deprec. & amort.

(130.1)

-

6.2

60.1

(63.7)

-51.0%

-46.2%

 

SG&A total

(555.6)

-

49.9

7.5

(498.2)

-10.3%

-1.4%

 

Other operating income/(expenses)

(84.0)

-

(1.4)

124.2

38.8

-146.1%

-147.8%

 

Normalized Operating Profit

738.3

-

(93.5)

351.7

 

35.0%

47.6%

 

996.5

 

% Normalized Operating margin

27.2%

0.0%

0.0%

0.0%

35.6%

840 bps

850 bps

 

Normalized EBITDA

1,008.6

-

(114.8)

294.4

1,188.1

17.8%

29.2%

 

% Normalized EBITDA margin

37.2%

     

42.5%

530 bps

540 bps

 
                 

CAC

   

Currency

Organic

 

% As

   
         
           

R$ million

FY22

Scope

Translation

Growth

FY23

Reported

% Organic

 

Volume ('000 hl)

11,786.3

-

 

388.3

12,174.6

3.3%

3.3%

 

Net revenue

9,440.3

-

(424.2)

1,028.7

10,044.8

6.4%

10.9%

 

Net revenue/hl (R$)

801.0

-

(34.8)

58.9

825.1

3.0%

7.4%

 

COGS

(4,860.8)

-

197.8

(372.1)

(5,035.1)

3.6%

7.7%

 

COGS/hl (R$)

(412.4)

-

16.2

(17.4)

(413.6)

0.3%

4.2%

 

COGS excl. deprec. & amort.

(4,417.9)

-

172.7

(253.8)

(4,498.9)

1.8%

5.7%

 

COGS/hl excl. deprec. & amort. (R$)

(374.8)

-

14.2

(8.9)

(369.5)

-1.4%

2.4%

 

Gross profit

4,579.4

-

(226.4)

656.6

5,009.7

9.4%

14.3%

 

% Gross margin

48.5%

     

49.9%

140 bps

150 bps

 

SG&A excl. deprec. & amort.

(1,637.8)

-

73.5

(124.2)

(1,688.5)

3.1%

7.6%

 

SG&A deprec. & amort.

(362.1)

-

10.6

108.9

(242.7)

-33.0%

-30.1%

 

SG&A total

(1,999.9)

-

84.0

(15.3)

(1,931.2)

-3.4%

0.8%

 

Other operating income/(expenses)

(52.9)

-

(1.5)

80.8

26.3

-149.7%

-152.6%

 

Normalized Operating Profit

2,526.6

-

(143.9)

722.1

 

22.9%

28.6%

 

3,104.8

 

% Normalized Operating margin

26.8%

0.0%

0.0%

0.0%

30.9%

410 bps

420 bps

 

Normalized EBITDA

3,331.7

-

(179.5)

731.5

3,883.7

16.6%

22.0%

 

% Normalized EBITDA margin

35.3%

     

38.7%

340 bps

350 bps

 
                 

6 In 4Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 803.8 (4.9% organic growth) and R$ (334.7) (2.8% organic growth), respectively. In FY23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 795.1 (9.2% organic growth) and R$ (341.7) (5.8% organic growth), respectively.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Page | 8

Latin America South (LAS): another quarter of consistent NR/hl performance leading to Normalized EBITDA growth despite macroeconomic challenges in Argentina

  • Operating performance:volumes were down 3.8% driven by Argentina, where highly inflationary pressures continued to impact overall consumer demand. Net revenue grew by 110.2%, with NR/hl increasing by 118.5%, driven primarily by revenue management initiatives, while Cash COGS and Cash SG&A were mostly impacted by inflation.
    In FY23, net revenue grew by 84.4% (volumes -5.5% and NR/hl +95.1%), and Normalized EBITDA rose by 102.1%, with gross margin expansion of 340 bps, and Normalized EBITDA margin expansion of 320 bps.
  • Commercial highlights: in Argentina, we sustained flat beer market share in the year, according to our estimates, with our commercial performance led by above core brands, driven by Corona and Michelob Ultra. In Paraguay, we gained market share in the year, according to our estimates, and volumes positive performance was driven by above core brands, which grew high-single digit versus FY22. In Bolivia, our volumes grew by low-single digit mostly due to Paceña performance (especially in 269ml cans and 710ml returnable glass bottles). And, in Chile, above core brands gained weight (led by Corona).

LAS7

   

Currency

IAS 29

Organic

 

% As

%

 

R$ million

4Q22

Scope

Translation

9M Impact

Growth

4Q23

Reported

Organic

 

Volume ('000 hl)

11,222.7

-

 

-

(430.3)

10,792.5

-3.8%

-3.8%

 

Net revenue

4,814.3

-

(13,618.2)

4,507.8

5,797.4

1,501.2

-68.8%

110.2%

 

Net revenue/hl (R$)

429.0

-

(1,261.8)

463.5

508.5

139.1

-67.6%

118.5%

 

COGS

(2,184.6)

-

5,940.3

(1,971.3)

(2,420.0)

(635.6)

-70.9%

101.1%

 

COGS/hl (R$)

(194.7)

-

550.4

(202.2)

(212.5)

(58.9)

-69.7%

109.1%

 

COGS excl. deprec. & amort.

(2,006.8)

-

5,188.1

(1,716.7)

(2,072.6)

(608.0)

-69.7%

94.6%

 

COGS/hl excl. deprec. & amort. (R$)

(178.8)

-

480.7

(175.3)

(183.0)

(56.3)

-68.5%

102.3%

 

Gross profit

2,629.6

-

(7,677.9)

2,536.5

3,377.3

865.6

-67.1%

117.7%

 

% Gross margin

54.6%

       

57.7%

310 bps

200 bps

 

SG&A excl. deprec. & amort.

(937.3)

-

3,327.6

(1,136.5)

(1,414.9)

(161.1)

-82.8%

134.7%

 

SG&A deprec. & amort.

(87.9)

-

340.6

(112.0)

(165.7)

(25.0)

-71.6%

165.6%

 

SG&A total

(1,025.2)

-

3,668.1

(1,248.5)

(1,580.5)

(186.1)

-81.8%

137.4%

 

Other operating income/(expenses)

160.4

-

(169.3)

33.4

38.6

63.1

-60.7%

23.6%

 

Normalized Operating Profit

1,764.8

-

(4,179.0)

1,321.4

1,835.4

 

-57.9%

97.5%

 

742.6

 

% Normalized Operating margin

36.7%

0.0%

0.0%

0.0%

0.0%

49.5%

1280 bps

-220 bps

 

Normalized EBITDA

2,030.5

-

(5,271.8)

1,688.0

2,348.5

795.2

-60.8%

107.5%

 

% Normalized EBITDA margin

42.2%

       

53.0%

1080 bps

-50 bps

 
                   

LAS

   

Currency

IAS 29

Organic

 

% As

%

 
       

R$ million

FY22

Scope

Translation

9M Impact

Growth

FY23

Reported

Organic

 

Volume ('000 hl)

38,134.0

-

   

(2,094.4)

36,039.6

-5.5%

-5.5%

 

Net revenue

17,371.2

-

(24,907.0)

6,924.1

14,408.9

13,797.2

-20.6%

84.4%

 

Net revenue/hl (R$)

455.5

-

(691.1)

185.3

433.1

382.8

-16.0%

95.1%

 

COGS

(8,553.1)

-

10,833.1

(2,913.6)

(6,023.7)

(6,657.3)

-22.2%

71.6%

 

COGS/hl (R$)

(224.3)

-

300.6

(78.1)

(182.9)

(184.7)

-17.6%

81.5%

 

COGS excl. deprec. & amort.

(7,753.2)

-

9,439.9

(2,542.1)

(5,151.4)

(6,006.8)

-22.5%

67.5%

 

COGS/hl excl. deprec. & amort. (R$)

(203.3)

-

261.9

(68.2)

(157.1)

(166.7)

-18.0%

77.3%

 

Gross profit

8,818.1

-

(14,074.0)

4,010.6

8,385.1

7,139.9

-19.0%

96.8%

 

% Gross margin

50.8%

       

51.7%

90 bps

340 bps

 

SG&A excl. deprec. & amort.

(4,024.8)

-

6,159.9

(1,717.7)

(3,565.4)

(3,147.9)

-21.8%

89.9%

 

SG&A deprec. & amort.

(396.6)

-

619.2

(162.8)

(375.6)

(315.8)

-20.4%

95.9%

 

SG&A total

(4,421.4)

-

6,779.1

(1,880.5)

(3,941.0)

(3,463.8)

-21.7%

90.4%

 

Other operating income/(expenses)

192.7

-

(253.8)

53.9

102.2

95.0

-50.7%

53.6%

 

Normalized Operating Profit

4,589.4

-

(7,548.6)

2,183.9

4,546.3

 

-17.8%

101.1%

 

3,771.1

 

% Normalized Operating margin

26.4%

0.0%

0.0%

0.0%

0.0%

27.3%

90 bps

240 bps

 

Normalized EBITDA

5,785.9

-

(9,561.0)

2,718.2

5,794.3

4,737.4

-18.1%

102.1%

 

% Normalized EBITDA margin

33.3%

       

34.3%

100 bps

320 bps

 
                   

7 In 4Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 141.0 (115.3% organic growth) and R$ (57.7) (95.4% organic growth), respectively. In FY23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 379.2 (92.8% organic growth) and R$ (163.5) (72.8% organic growth), respectively. Reported numbers are presented applying Hyperinflation Accounting for our Argentinean operations, as detailed on page 15.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Page | 9

Canada: volume shortfall driven by a challenging industry impacting top and bottom line performances in the quarter

  • Operating performance: volumes dropped by 7.4% in the context of challenging beer and beyond beer industries, impacting net revenue performance (-3.6%). NR/hl grew by 4.0% driven by revenue management initiatives coupled with positive brand mix. Normalized EBITDA declined by 1.5%, due to the impact of lower volumes in both net revenue and Cash COGS, partially offset by lower Cash SG&A.
    In FY23, net revenue was down 0.2% (volumes -6.4% and NR/hl +6.7%), and Normalized EBITDA rose by 2.7%, with gross margin contraction of 120 bps, and Normalized EBITDA margin expansion of 70 bps.
  • Commercial highlights: in FY23, the consistent execution of our premiumization strategy posted positive results, with our above core segments growing volumes, brand health and market share (according to our estimates), led by Corona and Michelob Ultra families. As to our digital initiatives, BEES continued to expand in the country, being now present in three provinces, bringing convenience to our customers and increasing our NPS.

Canada8

   

Currency

Organic

 

% As

   

R$ million

4Q22

Scope

Translation

Growth

4Q23

Reported

% Organic

 

Volume ('000 hl)

2,196.8

-

 

(161.8)

2,035.0

-7.4%

-7.4%

 

Net revenue

2,347.5

-

(160.9)

(85.1)

2,101.4

-10.5%

-3.6%

 

Net revenue/hl (R$)

1,068.6

-

(79.1)

43.1

1,032.6

-3.4%

4.0%

 

COGS

(943.6)

-

71.8

(66.4)

(938.3)

-0.6%

7.0%

 

COGS/hl (R$)

(429.5)

-

35.3

(66.8)

(461.1)

7.3%

15.5%

 

COGS excl. deprec. & amort.

(880.3)

-

66.4

(53.9)

(867.8)

-1.4%

6.1%

 

COGS/hl excl. deprec. & amort. (R$)

(400.7)

-

32.6

(58.3)

(426.4)

6.4%

14.6%

 

Gross profit

1,403.8

-

(89.2)

(151.5)

1,163.1

-17.1%

-10.8%

 

% Gross margin

59.8%

     

55.3%

-450 bps

-440 bps

 

SG&A excl. deprec. & amort.

(983.5)

-

60.3

134.2

(789.0)

-19.8%

-13.7%

 

SG&A deprec. & amort.

(70.0)

-

5.1

(1.7)

(66.6)

-4.8%

2.5%

 

SG&A total

(1,053.5)

-

65.3

132.5

(855.6)

-18.8%

-12.6%

 

Other operating income/(expenses)

1.9

-

0.0

(2.7)

(0.8)

-140.4%

-142.9%

 

Normalized Operating Profit

352.3

-

(23.8)

(21.8)

 

-12.9%

-6.2%

 

306.7

 

% Normalized Operating margin

15.0%

0.0%

0.0%

0.0%

14.6%

-40 bps

-40 bps

 

Normalized EBITDA

485.5

-

(34.2)

(7.5)

443.8

-8.6%

-1.5%

 

% Normalized EBITDA margin

20.7%

     

21.1%

40 bps

40 bps

 
                 

Canada

   

Currency

Organic

 

% As

   
         
           

R$ million

FY22

Scope

Translation

Growth

FY23

Reported

% Organic

 

Volume ('000 hl)

9,645.0

-

 

(619.9)

9,025.2

-6.4%

-6.4%

 

Net revenue

10,261.7

-

(710.1)

(18.4)

9,533.2

-7.1%

-0.2%

 

Net revenue/hl (R$)

1,063.9

-

(78.7)

71.0

1,056.3

-0.7%

6.7%

 

COGS

(4,271.4)

-

304.1

(115.9)

(4,083.1)

-4.4%

2.7%

 

COGS/hl (R$)

(442.9)

-

33.7

(43.3)

(452.4)

2.2%

9.8%

 

COGS excl. deprec. & amort.

(4,011.1)

-

282.8

(68.6)

(3,796.9)

-5.3%

1.7%

 

COGS/hl excl. deprec. & amort. (R$)

(415.9)

-

31.3

(36.2)

(420.7)

1.2%

8.7%

 

Gross profit

5,990.3

-

(405.9)

(134.3)

5,450.0

-9.0%

-2.2%

 

% Gross margin

58.4%

     

57.2%

-120 bps

-120 bps

 

SG&A excl. deprec. & amort.

(3,711.6)

-

246.7

153.2

(3,311.8)

-10.8%

-4.1%

 

SG&A deprec. & amort.

(314.5)

-

19.5

33.9

(261.2)

-17.0%

-10.8%

 

SG&A total

(4,026.1)

-

266.1

187.0

(3,573.0)

-11.3%

-4.6%

 

Other operating income/(expenses)

12.8

-

(1.1)

3.5

15.1

18.5%

27.3%

 

Normalized Operating Profit

1,976.9

-

(140.9)

56.2

 

-4.3%

2.8%

 

1,892.2

 

% Normalized Operating margin

19.3%

0.0%

0.0%

0.0%

19.8%

50 bps

50 bps

 

Normalized EBITDA

2,551.7

-

(181.7)

69.7

2,439.7

-4.4%

2.7%

 

% Normalized EBITDA margin

24.9%

     

25.6%

70 bps

70 bps

 
                 

8 In 4Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 1,029.4 (3.7% organic growth) and R$ (424.4) (14.0% organic growth), respectively. In FY23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 1,055.5 (6.6% organic growth) and R$ (420.2) (8.6% organic growth), respectively.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Page | 10

AMBEV CONSOLIDATED

Ambev9

   

Currency

IAS 29

Organic

 

% As

   
           

R$ million

4Q22

Scope

Translation

9M Impact

Growth

4Q23

Reported

% Organic

 

Volume ('000 hl)

52,169.3

 

-

 

(77.7)

52,091.6

-0.1%

-0.1%

 

Net revenue

22,693.0

-

(14,038.2)

4,507.8

6,826.6

19,989.2

-11.9%

29.5%

 

Net revenue/hl (R$)

435.0

 

(269.5)

89.1

129.2

383.7

-11.8%

29.7%

 

COGS

(10,985.3)

-

6,129.2

(1,971.3)

(2,473.9)

(9,301.3)

-15.3%

22.1%

 

COGS/hl (R$)

(210.6)

 

117.7

(38.7)

(46.9)

(178.6)

-15.2%

22.3%

 

COGS excl. deprec. & amort.

(10,094.5)

-

5,356.5

(1,716.7)

(2,076.7)

(8,531.4)

-15.5%

20.2%

 

COGS/hl excl. deprec. & amort. (R$)

(193.5)

 

102.8

(33.7)

(39.4)

(163.8)

-15.4%

20.4%

 

Gross profit

11,707.8

-

(7,909.0)

2,536.5

4,352.7

10,688.0

-8.7%

36.4%

 

% Gross margin

51.6%

       

53.5%

190 bps

280 bps

 

SG&A excl. deprec. & amort.

(6,028.3)

-

3,431.5

(1,136.5)

(1,249.6)

(4,983.0)

-17.3%

20.3%

 

SG&A deprec. & amort.

(724.9)

-

351.9

(112.0)

(260.8)

(745.8)

2.9%

36.0%

 

SG&A total

(6,753.2)

-

3,783.4

(1,248.5)

(1,510.4)

(5,728.8)

-15.2%

22.0%

 

Other operating income/(expenses)

539.1

218.1

(170.7)

33.4

56.8

676.6

25.5%

10.5%

 

Normalized Operating Profit

5,493.6

218.1

(4,296.3)

1,321.4

2,899.1

 

2.6%

51.7%

 

5,635.8

 

% Normalized Operating margin

24.2%

0.0%

0.0%

0.0%

0.0%

28.2%

400 bps

410 bp

 

Exceptional items above EBITDA

(65.0)

-

46.9

(6.7)

(30.2)

(38.4)

-40.9%

45.3%

 

Net finance results

(1,079.9)

       

(700.5)

-35.1%

   

Share of results of joint ventures

(21.1)

       

(170.2)

nm

   

Income tax expense

755.9

       

(198.2)

-126.2%

   

Profit

5,083.4

       

4,528.4

-10.9%

   

Attributable to Ambev holders

4,966.9

       

4,387.7

-11.7%

   

Attributable to non-controlling interests

116.5

       

140.8

20.8%

   

Normalized profit

5,299.7

       

4,667.5

-11.9%

   

Attributable to Ambev holders

5,182.4

       

4,526.6

-12.7%

   

Normalized EBITDA

7,109.3

218.1

(5,420.9)

1,688.0

3,557.1

 

0.6%

49.0%

 

7,151.5

 

% Normalized EBITDA margin

31.3%

       

35.8%

450 bps

470 bps

 
                   

Ambev

   

Currency

IAS 29 9M

Organic

 

% As

   
         
           

R$ million

FY22

Scope

Translation

Impact

Growth

FY23

Reported

% Organic

 

Volume ('000 hl)

185,749.7

 

-

-

(2,090.7)

183,659.0

-1.1%

-1.1%

 

Net revenue

79,708.8

 

(26,041.3)

6,924.1

19,145.2

79,736.9

0.0%

24.1%

 

Net revenue/hl (R$)

429.1

 

(141.8)

37.3

109.5

434.2

1.2%

25.5%

 

COGS

(40,422.1)

 

11,335.0

(2,913.6)

(7,290.9)

(39,291.6)

-2.8%

18.1%

 

COGS/hl (R$)

(217.6)

 

61.7

(15.7)

(42.3)

(213.9)

-1.7%

19.4%

 

COGS excl. deprec. & amort.

(37,006.8)

 

9,895.5

(2,542.1)

(6,082.3)

(35,735.7)

-3.4%

16.5%

 

COGS/hl excl. deprec. & amort. (R$)

(199.2)

 

53.9

(13.7)

(35.5)

(194.6)

-2.3%

17.8%

 

Gross profit

39,286.8

 

(14,706.3)

4,010.6

11,854.3

40,445.3

2.9%

30.3%

 

% Gross margin

49.3%

       

50.7%

140 bps

240 bps

 

SG&A excl. deprec. & amort.

(21,445.1)

-

6,480.0

(1,717.7)

(3,897.7)

(20,580.4)

-4.0%

18.2%

 

SG&A deprec. & amort.

(2,524.3)

-

649.3

(162.8)

(818.4)

(2,856.3)

13.2%

32.4%

 

SG&A total

(23,969.4)

-

7,129.3

(1,880.5)

(4,716.1)

(23,436.7)

-2.2%

19.7%

 

Other operating income/(expenses)

2,513.9

(772.9)

(256.4)

53.9

490.5

2,028.9

-19.3%

32.2%

 

Other operating income/(expenses) excl. impair.

2,513.9

(772.9)

(256.4)

53.9

496.2

2,034.7

-19.1%

32.6%

 

Normalized Operating Profit

17,831.2

(772.9)

(7,833.5)

2,183.9

7,628.7

 

6.8%

45.6%

 

19,037.5

 

% Normalized Operating margin

22.4%

0.0%

0.0%

0.0%

0.0%

23.9%

150 bps

360 bps

 

Exceptional items above EBITDA

(143.3)

-

61.3

(5.8)

(135.2)

(206.4)

44.0%

94.9%

 

Net finance results

(3,423.2)

       

(3,609.8)

5.5%

   

Share of results of joint ventures

(29.1)

       

(185.4)

nm

   

Income tax expense

655.6

       

(75.5)

-111.5%

   

Profit

14,891.3

       

14,960.5

0.5%

   

Attributable to Ambev holders

14,457.9

       

14,501.9

0.3%

   

Attributable to non-controlling interests

433.3

       

458.5

5.8%

   

Normalized profit

15,166.8

       

15,227.2

0.4%

   

Attributable to Ambev holders

14,731.5

       

14,767.0

0.2%

   

Normalized EBITDA

23,770.9

(772.9)

(9,922.3)

2,718.2

9,661.5

 

7.1%

42.6%

 
   

25,455.4

 

% Normalized EBITDA margin

29.8%

       

31.9%

210 bps

430 bps

 
                   

9 In 4Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 377.0 (29.3% organic growth) and R$ (158.0) (19.3% organic growth), respectively. In FY23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 425.7 (25.4% organic growth) and R$ (187.1) (17.5% organic growth), respectively. The scope changes refer to tax credits and related effects in Brazil.

ambev.com.br

 

Press Release - February 29, 2024

 
       
       
       

Attachments

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