The Ibovespa, Brazil’s leading stock index, saw a decline for the second straight day, influenced by Ambev’s earnings falling below market expectations.
This drop reflects investors’ reactions to local corporate results and broader economic indicators from the United States.
It hints at a possible delay in the anticipated Federal Reserve interest rate cuts until later in the first half of the year.
Despite mixed reactions to Ambev’s performance, overall market sentiment remained positive. Some analysts noted strong beer sales in Brazil but weaker volumes elsewhere.
Analysts appreciated Ambev’s margin recovery in various segments, excluding Brazil’s non-alcoholic beer sector, which faced cost pressures.
Optimism stemmed from robust beer sales in Brazil and improved free cash flow, compensating for weaker performances elsewhere.
Challenges like reduced non-alcoholic beer margins and Argentine inflation pressures were noted, yet the consensus on Ambev’s stock remained favorable.
Analysts advised either maintaining or increasing stock positions, emphasizing Ambev’s solid quarterly performance and strategic growth positioning.