Ambev, the São Paulo-based brewer, reported a significant increase in profit for Q3, thanks to lower commodity costs. Despite a slight decrease in sales volume, the company controlled costs and exceeded market expectations.
Ambev, the São Paulo-based brewer, reported a significant increase in profit for the third quarter, thanks to a decrease in commodities costs, particularly in aluminum.
While net revenue dipped slightly to BRL20.3 billion from BRL20.6 billion, earnings per share exceeded market expectations, surpassing the consensus compiled by FactSet. Analysts predicted EPS of BRL0.22 and net sales of BRL21.4 billion.
Ambev experienced a slight decrease in sales volume, with 45.3 million hectoliters sold compared to 46.4 million in the previous year. However, the brewer managed to control its cost of goods sold in its Brazil Beer business, which contributes almost half of its sales. The company achieved a 1.3% decline in costs compared to the previous year, primarily due to lower aluminum prices.
As a subsidiary of Anheuser-Busch InBev SA, the largest beer producer globally, Ambev is known for its popular brands such as Budweiser, Brahma, and Corona. Although Brazil remains its largest market, the company also has a strong presence in other countries throughout the Americas, including Canada, Argentina, and Chile.
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