By Jeffrey T. Lewis
SÃO PAULO--Ambev SA's profit jumped in the fourth quarter from a year earlier as the beer maker posted gains in sales and benefited from tax credits in Brazil, its biggest market.
The São Paulo-based company's net income increased 63% to 6.9 billion reais, equivalent to $1.3 billion, Ambev said Thursday. Adjusted net income rose 51% to BRL5 billion, and adjusted earnings before interest, taxes, depreciation and amortization rose 29% to BRL8.9 billion.
Ambev said it booked BRL4.3 billion in tax credits in the quarter stemming from a court case regarding taxes in Brazil.
Net revenue in the quarter rose 20% to BRL18.6 billion, and sales volume increased 7.7% to 50.9 million hectoliters. Sales volumes increased in six of Ambev's 10 main markets in the period as social-distancing measures related to the coronavirus pandemic were eased, the company said.
The impact of the health crisis on future earnings is still uncertain, but the company said it is confident it has established the correct strategy to deal with the challenges it faces.
Ambev is controlled by Anheuser-Busch InBev SA, the world's biggest beer producer, and brews and markets brands including Budweiser, Brahma and Corona. Brazil is Ambev's biggest market, but the company also operates in other countries in the Americas including Canada, Argentina and Chile.
The company said it will face a significant impact from the exchange rate and from the price of commodities in 2021.
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(END) Dow Jones Newswires
February 25, 2021 06:24 ET (11:24 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.