Ambev (ABEV3) Q4 2025 earnings summary

Executive summary

• Achieved mid-single-digit Normalized EBITDA growth and margin expansion in FY25, despite a 3.3% decline in total volumes year-over-year, driven by cyclical factors and adverse weather impacting consumption occasions.

• Net revenue grew 4.0% year-over-year to R$88.24 billion, supported by a 7.5% increase in net revenue per hectoliter, reflecting premiumization and revenue management initiatives.

• Returned approximately R$20 billion to shareholders through dividends, interest on capital, and share buybacks, representing about 90% of operating cash flow.

• Employee engagement reached all-time highs, reinforcing a resilient culture and expanded training in AI and leadership.

• Achieved 97.5% renewable electricity, 25.8% reduction in emissions intensity, and 70.5% of packaging returnable or recycled.

Financial highlights

• Adjusted EBITDA grew 5.6% to R$29.5 billion, with margin expansion for the third consecutive year, reaching 33.4%.

• Net income rose 7.7% to R$15.99 billion, with adjusted net income up 1.6% to R$15.1 billion.

• Operating cash flow was R$24.45 billion, down 6.3% year-over-year; CAPEX was R$4.59 billion.

• Declared R$17.4 billion in dividends and interest on capital; share buyback program of R$2.5 billion.

• Net cash position of R$16.93 billion at year-end 2025.

Outlook and guidance

• 2026 expected to benefit from favorable socialization events (Carnival, FIFA World Cup, more holidays), supporting volume recovery.

• Brazil Beer cash COGS per hectoliter expected to rise 4.5%-7.5% in 2026, mainly due to commodity prices and portfolio mix.

• Continued ambition to expand consolidated margins and reinvest in organic growth, with disciplined M&A and shareholder returns.