| “Our commercial performance delivered consistent top-line growth, and Normalized EBITDA grew by high single digits with margins expanding once again.” – Jean Jereissati, CEO of Ambev |
| Total Volume (organic) |
| -0.6% vs LY |
| Consolidated volumes declined by 0.6% (exArgentina, 1.3% growth). Brazil volumes grew 1.3% (+0.6% in Beer and +3.4% in NAB). In Central America and the Caribbean (“CAC”) volumes declined by 0.5%, with Dominican Republic volumes up mid-single digits. And soft industries in Argentina and Canada led to volume declines in Latin America South (“LAS”) (-7.7%) and Canada (-1.4%). |
| Net Revenue (organic) |
| +4.9% vs LY |
| The top-line performance was driven by net revenue per hectoliter (“NR/hl”) growth of 5.5%. Net revenue grew in all our reporting segments: Brazil NAB +14.8%, LAS2 +6.9%, CAC +4.7%, Brazil Beer +3.5% and Canada +0.1%. |
| Normalized EBITDA (organic) |
| +8.5% vs LY |
| Normalized EBITDA growth was driven by CAC (+17.7%), LAS (+9.0%) and Brazil (+7.8%, with NAB +21.7% and Beer +5.8%), with a flat performance in Canada (0.0%). Gross margin expanded 180 bps to 50.3%, while Normalized EBITDA margin expanded 110 bps to 32.0%. |
| Normalized Profit |
| R$ 3,579.6million |
| Normalized Profit declined by 11.4% compared to R$ 4,038.9 million in 3Q23, as increased income tax expenses in Brazil more than offset Normalized EBITDA growth and better net finance results. |
| Cash Flow from Operating Activities |
| R$ 8,108.4 million |
| Cash flow from operating activities increased by 2.3% compared to R$ 7,923.0 million in 3Q23, mostly due to Normalized EBITDA growth coupled with better working capital. |
| Capital Allocation |
| Our Board of Directors has approved a share buyback program for the repurchase of up to 155,159,038 shares (which, based on the closing share price of October 30th, 2024, corresponds to approximately R$ 2 billion) to be executed within the next 18 months. For further details please see the Share Buyback Program section on page 18. |
| MANAGEMENT COMMENTS |
| Solid top line and bottom line growth, as well as gross and Normalized EBITDA margins expansion Our commercial execution coupled with operational leverage, delivered a mid-single digit topline growth and high-single-digit bottom line growth (with Argentina organic results capped), with gross and Normalized EBITDA margins expanding for the eighth consecutive quarter. Brazil continued to lead the way. In Beer, premium/super premium brands increased volumes by low twenties, and our core plus brands grew by low teens in the quarter. It was the 14th consecutive quarter in which our premium/super premium brands' growth outperformed total volumes. Our core brands declined by low single digits, with Brahma and Antarctica each delivering high-single-digit volume growth. Moreover, brand health indicators continued to improve (with record performance for Corona, Spaten, Budweiser and Original), which should support momentum going forward. In NAB, we achieved record volumes for the third quarter, with growth continuing to be driven by health and wellness and energy brands. In CAC, the top line grew by mid-single digits and the bottom line grew in the high teens, with gross and Normalized EBITDA margins expansion. Performance was driven by the Dominican Republic, where we improved volumes across all beer segments, led by the Presidente family of brands. As for LAS and Canada, we delivered sequential improvement in the quarter despite volume declines in Argentina and Canada given soft industries. Cash COGS grew by low-single digits mostly driven by inflation and lower tailwinds from commodity price hedges, while Cash SG&A rose by mid-single digits due to higher investments behind our brands and increased administrative expenses resulting from higher variable compensation accrual. Normalized Profit decreased by 11.4%, with Normalized EBITDA growth and improved net finance results more than offset by higher income tax expense in Brazil given lower deductibility relating to government grants and IOC. In terms of cash flow performance, cash flow from operating activities increased by R$185.5 million versus 3Q23. YTD24 top line grew by 4.7% (flat volumes and NR/hl +4.8%), and Normalized EBITDA increased by 12.0%, with gross and Normalized EBITDA margins expansion. Normalized Profit declined by 6.7%. |
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| Ambev |
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