Published Thursday, 29 October, 6:15 a.m. ET · Source: Ambev earnings release, filed with the US Securities and Exchange Commission
Key Facts
- The number. Profit fell 10.2% to R$4.37 billion (US$816 million), against a year-earlier figure lifted by a one-off gain.
- The core business. Normalized profit, which strips out one-offs, rose 14.3% to R$4.39 billion (US$821 million).
- The cash. The board approved buying back up to 190 million shares, about R$2.9 billion (US$540 million).
- Still unknown. How fast Ambev will buy; the plan runs until 28 April 2028.
Brazil’s Ambev sold pricier beer and still reported a smaller profit. The brewer, whose shares trade in New York as ABEV, earned R$4.37 billion (US$816 million) in the third quarter, down 10.2% from a year earlier.
The drop is largely a one-off effect, because a year earlier the profit included a gain of R$885 million (US$165 million) from selling operations, according to Ambev’s cash-flow statement. Our guide to Brazil’s economy covers the household spending behind these sales.
Why Reported Profit Fell While Core Profit Rose
Ambev publishes two profit numbers. The reported figure counts everything, while “normalized” profit removes one-off items so investors can compare quarters.
On the normalized measure, profit rose 14.3% to R$4.39 billion (US$821 million), from R$3.84 billion (US$718 million) a year earlier. Net financial costs fell to R$312 million (US$58 million) from R$1.09 billion (US$203 million), which helped.
Taxes pushed the other way. Ambev’s income-tax bill rose to R$882 million (US$165 million) from R$350 million (US$65 million).
In Plain English
- Normalized profit: profit with one-off items removed.
- EBITDA: earnings before interest, taxes, depreciation and amortization, a rough gauge of operating cash earned.
- Organic growth: growth after stripping out currency moves and company purchases or sales.
- Hectolitre: 100 litres.
Higher Prices Drove the Sales Gain
Net revenue rose 3.6% to R$21.6 billion (US$4.04 billion), or 7.6% on an organic basis. Volume grew only 0.8% on an organic basis, so price and mix did the work.
Revenue per hectolitre climbed 6.8% organically. Normalized EBITDA rose 3.0% to R$7.27 billion (US$1.36 billion), with a margin of 33.7%, down 0.2 points as reported but up 0.4 points organically.
Premium and Lighter Beers Carry the Growth
Premium brands grew volume in the mid-teens, Ambev said. Ambev’s “Balanced Choices” range of lighter options grew by more than 90%, and alcohol-free beer by more than 30%.
Michelob Ultra, a low-calorie beer, and Stella Artois Pure Gold, a gluten-free one, more than doubled in volume when counted together. Mainstream volumes, the cheaper core of the market, fell by a low single-digit percentage.
Chief executive Carlos Lisboa said the quarter “built on the progress we achieved in the first half of the year.” Net revenue grew in every business unit.
Where Volume Grew and Shrank
- Brazil soft drinks and other non-alcoholic drinks: +3.6%.
- Central America and the Caribbean: +2.3%.
- Brazil beer: +0.5%.
- Canada: −1.0%.
- Latin America South, including Argentina and Chile: −1.4%.
A Buyback of Up to 190 Million Shares
Ambev’s board approved the repurchase programme on 28 October, mainly so the shares can be cancelled. Cash from operations rose 11.0% to R$7.68 billion (US$1.44 billion).
What It Means for US Readers
US investors hold Ambev through ABEV, an American depositary receipt, a US-traded certificate that stands for shares listed in Brazil. Earnings arrive in reals, so the dollar value of the profit depends on the exchange rate, about 5.35 reals per dollar on 29 October (from the market-data provider RT); our real-to-dollar guide explains the swings.
Buybacks and rising prices can support a share price, but they do not prove demand is growing. For context on the wider market, see our Brazil stock market guide and our earlier look at how Ambev traded volume for margins.
What Is Not Known
It is not yet clear whether premium growth can keep offsetting weak mainstream sales, or how quickly Ambev will buy back shares. Trading in New York had not begun when we published, and executives discuss the results on a call at 11:30 a.m. ET today.
Frequently Asked Questions
Why did Ambev’s profit fall in the third quarter?
Reported profit fell 10.2% to R$4.37 billion (US$816 million) because the year-earlier figure included a gain of R$885 million (US$165 million) from selling operations. On Ambev’s normalized measure, profit rose 14.3%.
How much will Ambev spend on share buybacks?
The board approved on 28 October a programme to repurchase up to 190 million shares, about R$2.9 billion (US$540 million) at that day’s closing price. The plan runs until 28 April 2028.
Sources: Ambev third-quarter 2026 earnings release and quarterly financial statements, filed with the US Securities and Exchange Commission on 29 October 2026; exchange rate from market-data provider RT.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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