Ambev (ABEV3) Q4 2024 earnings summary

Executive summary

• Celebrated 25th anniversary with strong operational performance, double-digit EBITDA growth, margin expansion, and digital transformation progress, despite volume declines in Argentina.

• Strategy focused on category leadership, digital ecosystem monetization, and business optimization for sustainable value creation.

• Achieved consolidated normalized EBITDA of R$29.03 billion in FY24, up 11.4% year-over-year, and normalized profit of R$14.9 billion, down 2.3% due to higher income tax in Brazil.

• Free cash flow to equity increased 37% to R$17.9 billion.

• Sustainability achievements include 96.5% renewable electricity and 39.1% GHG reduction since 2017.

Financial highlights

• Net revenue grew 4.6% year-over-year to R$89.45 billion, with a 5.6% increase in net revenue per hectoliter, despite a 0.9% decline in consolidated volume.

• Adjusted/Normalized EBITDA rose 11.4% to R$29.03 billion, with margin expansion of 200 bps to 32.5%.

• Gross margin expanded 170 bps to 51.2%; EBITDA margin at 32.5%.

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

• Cash and cash equivalents at year-end 2024 stood at R$28.6 billion.

Outlook and guidance

• 2025 expected to bring more input cost pressure, with BRL/USD hedge rate at 5.49 (+10.3%) and aluminum prices as headwinds.

• Cash COGS per hectoliter in Brazil Beer expected to grow 5.5%-8.5% in 2025, but focus remains on margin expansion.

• Revenue management, cost control, and digital transformation prioritized to offset input cost pressures.

• Board approved intermediary dividends of R$2 billion to be paid in April 2025.