Ambev Reports 11% Profit Growth in Q4 2024 Amid Revenue Surge

Ambev S.A., the Brazilian beverage giant, reported a net profit of R$5.024 billion ($837 million) for the fourth quarter of 2024, marking an 11% increase compared to R$4.528 billion ($755 million) in the same period of 2023.

The company’s financial statements, submitted to the Comissão de Valores Mobiliários (CVM), highlighted strong revenue growth despite challenges in production volumes.

Net revenue for the quarter surged by 35.2%, reaching R$52.091 billion ($8.682 billion), up from R$38.515 billion ($6.419 billion) a year earlier. This significant increase was driven by pricing strategies and higher revenue per hectoliter across key markets.

However, production volume fell by 3.2%, totaling 52.1 million hectoliters, reflecting softer demand in certain regions. Adjusted EBITDA for Q4 2024 rose sharply by 34.5%, amounting to R$9.619 billion ($1.603 billion), compared to R$7.151 billion ($1.192 billion) in Q4 2023.

This improvement was attributed to effective cost management and premiumization efforts that bolstered margins despite inflationary pressures. For the full year of 2024, Ambev reported a net profit of R$14.847 billion ($2.475 billion), marking a slight decline of 0.8% from R$14.960 billion ($2.493 billion) in 2023.

This decrease was attributed to increased tax expenses in Brazil. Annual net revenue reached R$89.452 billion ($14.909 billion), reflecting a 12.2% growth year-over-year, while adjusted EBITDA grew by 14% to R$29.028 billion ($4.838 billion).

Ambev’s Outlook for 2025

Looking ahead, Ambev anticipates cost pressures in 2025 due to rising commodity prices and currency depreciation. The company projects its cost of goods sold (COGS) per hectoliter, excluding depreciation and amortization, to increase between 5.5% and 8.5%.

Aluminum price hikes and the weaker Brazilian real are expected to drive this rise. Ambev emphasized that these projections depend on stable commodity prices and exchange rates but remain subject to risks and uncertainties.

The company continues to focus on premiumization and operational efficiency as it navigates these challenges while maintaining its market leadership across Latin America.

Despite a drop in production volumes, Ambev’s strong revenue growth and improved margins underscore its resilience in a volatile economic environment, positioning it well for future challenges and opportunities in the beverage sector.

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