Ambev (ABEV3) Q4 2024 earnings summary

Executive summary

• New CEO Carlos Lisboa led his first earnings call, emphasizing a renewed focus on category leadership, digital transformation, and operational optimization, with a strong commitment to sustainable value creation and margin expansion.

• Celebrated 25th anniversary with continued top-line momentum, digital progress, double-digit Normalized EBITDA growth, and margin expansion for the second consecutive year.

• Achieved consolidated normalized EBITDA of BRL 29.0 billion in FY24, up 37.3% from 2019 and 11.4% year-over-year.

• Normalized profit for FY24 was BRL 14.9 billion, a slight decrease of 2.3% compared to FY23, mainly due to higher income tax in Brazil.

• Sustainability achievements include 96.5% renewable electricity, 39.1% GHG reduction since 2017, and increased recycled content in packaging.

Financial highlights

• FY24 net revenue grew 4.6% year-over-year; Normalized EBITDA up 11.4% organically; free cash flow to equity up 37% to R$17.9 billion.

• Gross margin expanded 170 basis points organically to 51.2%, and EBITDA margin expanded 200 basis points to 32.5%.

• Cash flow from operating activities reached R$26.1 billion in FY24, up 5.6% year-over-year.

• FY24 total volumes down 0.9% year-over-year; ex-Argentina, volumes grew 1.4%.

• Ended 2024 with BRL 28.6 billion in cash and cash equivalents.

Outlook and guidance

• Cash COGS per hectoliter in Brazil beer is expected to grow 5.5% to 8.5% in 2025, driven by FX and commodity headwinds.

• Revenue management and cost control are key priorities for 2025, with focus on managing BRL depreciation and commodity prices.

• Continued commitment to digital transformation, margin expansion, and shareholder value creation.

• Board approved intermediary dividends of ~BRL 2 billion to be paid in April 2025.