Ambev (ABEV3) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw record consolidated volumes up 0.7% year-over-year, with net sales reaching R$22.5 billion and net revenue per hectoliter rising 6%, supporting gross margin expansion of 150 bps.

• Normalized EBITDA grew 12.7% year-over-year with a 180 bps margin expansion, marking the tenth consecutive quarter of EBITDA growth.

• Net income remained stable at R$3.8 billion, as EBITDA growth was offset by higher net financial and tax expenses.

• Strategic focus on category growth, digitalization, and business optimization drove performance, with strong execution across all pillars.

• Non-alcoholic beer and above-core brands posted strong growth, with non-alcoholic beer up ~40%.

Financial highlights

• Net sales rose 11% year-over-year to R$22.5 billion, with consolidated volumes at 45.3 million hl (+0.7%).

• Normalized EBITDA reached R$7.4 billion (+12.7% year-over-year), margin at 33.1% (+180bps).

• Cash flow from operating activities was R$1.2 billion, up 68% year-over-year.

• Net financial results were -R$856 million, mainly due to FX losses and hedging costs.

• CapEx was R$828 million, down 18% year-over-year, reflecting disciplined capital deployment.

Outlook and guidance

• Management expects significant FX and commodity cost pressures from Q2 onward, with Brazil Beer cash COGS per hectoliter guided to rise 5.5%–8.5% for the year.

• Ambition remains to expand consolidated margins in 2025, leveraging strategic pillars and disciplined cost control.

• Ongoing review of capital returns, with focus on dividends, IOC, and share buybacks.