Ambev (ABEV3) Q1 2025 earnings summary

Executive summary

• Achieved record first-quarter consolidated volumes, up 0.7% year-over-year, with strong growth in Brazil and LAS offsetting declines in CAC and Canada.

• Net revenue rose 6.7% year-over-year, driven by a 5.9%–6% increase in net revenue per hectoliter and robust brand performance.

• Normalized EBITDA grew 12.7% year-over-year, with margin expanding 180 bps to 33.1%, marking the tenth consecutive quarter of margin expansion.

• Net income remained flat year-over-year at BRL 3.8–3.82 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.

Financial highlights

• Consolidated volumes: 45.3 million hl (+0.7% year-over-year).

• Net revenue: R$22.5 billion (+6.7% organic growth year-over-year).

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

• Cash flow from operating activities reached R$1.2 billion, up 67.6% year-over-year.

• Cash and cash equivalents at March 2025 stood at R$16.1–19.1 billion, up from R$12.8 billion in March 2024.

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.