Ambev’s Q2 Earnings Reflect 5.6% Drop Amid Tax Challenges
In the second quarter of 2024 Brazil's Ambev (ABEV3) reported a net profit of R$2.452 billion ($434 million). Coverage and analysis from The Rio Times.
In the second quarter of 2024, Brazil’s Ambev (ABEV3) reported a net profit of R$2.452 billion ($434 million).
This marks a 5.6% decline from the same period in 2023. Adjusted net profit stood at R$2.459 billion ($435 million), down 8.3%.
Ambev attributed this decrease primarily to lower income tax deductibility in Brazil. This issue overshadowed growth in adjusted EBITDA and improved net financial results.
The company’s adjusted EBITDA for the quarter reached R$5.811 billion ($1.029 billion). This reflects a 10.2% increase from the previous year on a reported basis.
Organically, it rose by 15.9%. This growth was driven by strong performances in several regions.
Brazil saw a 23.5% increase, with non-alcoholic beverages surging 40.1% and beer rising 20.8%.
Central America and the Caribbean posted a 17.9% increase. The Southern Latin America region grew by 7.6%.
Conversely, Canada experienced a 2.2% decline. The gross margin expanded by 200 basis points, and the adjusted EBITDA margin improved by 300 basis points.
Net revenue for the quarter amounted to R$20.044 billion ($3.548 billion). This is up 6.1% on a reported basis and 4.8% organically compared to the same period in 2023.
This company’s performance was bolstered by a 4.5% increase in net revenue per hectoliter. The majority of business units reported revenue growth.
Ambev’s Q2 Earnings Reflect 5.6% Drop Amid Tax Challenges
NAB (non-alcoholic beverages) Brazil grew by 15.0%, Central America and the Caribbean by 8.4%, Beer Brazil by 6.9%, and Southern Latin America by 0.5%. However, revenue in Canada dropped by 5.7% due to declining volume.
Total volume reached 41,454 hectoliters, a 0.4% increase. Brazil drove this with a 4.1% rise, with non-alcoholic beverages up 7.7% and beer up 2.9%.
Central America and the Caribbean saw a 3.4% increase. On the downside, Southern Latin America saw a 13.7% decline, and Canada experienced a 6.9% drop.
More: Brazil news in English, every day from The Rio Times.
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| Instrument | Last | Change | YoY | Prev. | High | Low | Volume |
|---|---|---|---|---|---|---|---|
| IBOV | 205,082.56 | +0.47% | +21.85% | 204,120.12 | 168,310 | 167,142 | — |
| USD/BRL | 5.16 | +0.01% | -5.13% | 5.16 | 5.18 | 5.14 | — |
| SELIC | 14.00% | — | — | — | — | — | |
| PETR4 | 41.64 | -0.05% | +35.19% | 41.66 | 41.97 | 41.15 | 41,499,400 |
| VALE3 | 72.97 | +0.83% | +30.75% | 72.37 | 73.54 | 72.66 | 17,658,000 |
| ITUB4 | 38.60 | -1.03% | +4.57% | 39.00 | 39.34 | 38.39 | 29,487,800 |
| BBDC4 | 16.85 | +0.36% | +3.50% | 16.79 | 16.90 | 16.67 | 19,416,900 |
| BBAS3 | 19.37 | +0.47% | +0.73% | 19.28 | 19.44 | 19.16 | 11,069,200 |
| B3SA3 | 14.26 | -0.21% | +12.73% | 14.29 | 14.47 | 14.11 | 33,037,800 |
| ABEV3 | 14.89 | -0.80% | +21.91% | 15.01 | 15.07 | 14.81 | 16,453,100 |
| WEGE3 | 47.59 | +0.49% | +29.99% | 47.36 | 48.08 | 47.36 | 3,364,600 |
| PRIO3 | 59.14 | -0.19% | +50.67% | 59.25 | 59.81 | 58.74 | 3,325,600 |
| SUZB3 | 41.33 | +2.35% | -23.55% | 40.38 | 41.48 | 40.35 | 3,914,900 |
| RENT3 | 34.68 | -0.09% | +0.84% | 34.71 | 34.96 | 34.35 | 7,979,100 |
| AZZA3 | 15.89 | -2.63% | -53.76% | 16.32 | 16.42 | 15.82 | 1,330,300 |
| CSNA3 | 4.30 | +0.47% | -42.65% | 4.28 | 4.41 | 4.26 | 10,076,100 |
| GGBR4 | 24.69 | +2.19% | +51.38% | 24.16 | 24.85 | 24.18 | 7,047,600 |
| ENEV3 | 24.21 | -1.38% | +70.49% | 24.55 | 24.64 | 23.99 | 9,297,000 |
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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