Ambev (ABEV3) Q3 2025 earnings summary

Executive summary

• Net revenue grew 1.6% to R$63.4 billion year-over-year, with net revenue per hectoliter up 7.4% and EBITDA up 2.9%, reflecting resilient brand performance, premiumization, and effective cost management.

• Premium and super premium brands in Brazil grew mid-teens, reaching nearly 50% market share, the highest since 2015, while digital ecosystem initiatives like BEES Marketplace and Zé Delivery drove significant growth.

• Share buyback program of up to 208 million shares (~R$2.5 billion) approved, reinforcing commitment to shareholder returns.

• Net income rose 16.7% to R$11.5 billion, with normalized profit up 7.4% year-over-year, supported by lower income tax expenses and a gain from the Barbados/Caribbean divestment.

• Strong performance in Brazil and Canada offset declines in Latin America South and CAC segments.

Financial highlights

• Normalized net income reached BRL 3.8 billion in 3Q25, up 7% year-over-year, with stated net income at BRL 4.9 billion, up 36% due to one-off effects.

• Gross profit for the nine months was R$32.3 billion, with operating income at R$16.4 billion.

• Normalized EBITDA margin expanded by 50 bps in the quarter and 120 bps year-to-date, reaching 33.9%.

• Cash flow from operating activities totaled R$6.9 billion, down 14.7% year-over-year due to higher cash taxes and slower monetization of tax credits.

• Dividend distributions for the year totaled R$6 billion.

Outlook and guidance

• Management expects continued margin expansion and resilient EBITDA growth, leveraging major events like the 2026 FIFA World Cup and increased holidays in Brazil.

• Guidance for Brazil Beer cash COGS per hectoliter remains unchanged, with ambition to deliver within the lower half of the range.

• The company is evaluating the impact of IFRS 18, effective January 2027, on future disclosures.