Ambev (ABEV3) Q2 2025 earnings summary

Executive summary

• Achieved high single-digit organic EBITDA growth with margin expansion, supported by premium brand momentum, effective revenue and cost management, and resilient top line, despite a 4.5%–9% volume decline mainly in Brazil due to adverse weather.

• Net income/profit rose 15%–15.2% year-over-year, with EPS up 6.5%–15.7% and normalized EBITDA margin expanding 110–160 bps.

• Cash flow from operating activities grew 4% year-to-date but declined 9.2% in the quarter; intermediary dividends of BRL 2 billion approved, totaling BRL 6 billion year-to-date.

• Premium and super premium brands delivered mid- to low-teens growth, while balanced choice portfolio expanded in the low twenties, with digital platforms accelerating.

• Disciplined capital allocation and proactive cost management supported strong liquidity and continued dividend and share buyback programs.

Financial highlights

• Net income reached BRL 2.8 billion, up 15% year-over-year; normalized net income for 2Q25 was BRL 2.46 billion.

• Net revenue for 2Q25 was R$20,090.2 million (+3.4% organic), with normalized EBITDA at R$6,152.7 million (+7.6% organic) and margin expanding to 30.6%.

• Effective tax rate for the quarter was 18.4%, down from 28.6% last year, aided by non-recurrent items and favorable court rulings.

• Cash and cash equivalents at June 2025 stood at R$16,404.0 million, with net debt position improved.

• Cash COGS/hl rose 8.9% due to FX and commodity headwinds, especially aluminum.

Outlook and guidance

• Management expects continued value creation and growth, focusing on disciplined revenue and cost management to address anticipated FX and commodity headwinds in H2.

• Strategic revenue management, premiumization, and digitalization are expected to support top-line resilience.

• Maintaining hedging strategy for raw materials, with cash COGS/hl guidance for Brazil beer expected within the 5.5–8.5 range.

• July showed significant improvement in weather and consumer price relativity, supporting a more positive outlook for H2.

• Focus remains on disciplined resource allocation and targeted SG&A initiatives.