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Ambev 2Q Profit Declined on Higher Costs, Expenses

By Jeffrey T. Lewis


SÃO PAULO--Ambev's profit fell in the second quarter as higher costs and operating expenses outweighed an increase in sales.

The São Paulo-based brewer's net income declined to 2.5 billion reais, equivalent to $519 million, from BRL3.0 billion a year earlier. Earnings per share reached BRL0.16 from BRL0.19 a year earlier.

The figure for EPS was in line with market expectations, while net sales underperformed. The consensus compiled by FactSet was for EPS of BRL0.16 and for net sales of BRL19.6 billion.

Net revenue reached BRL18.9 billion from BR18.0 billion reais a year earlier. The volume of sales fell to 41.3 million hectoliters from 42.2 million a year earlier. The company's cost of goods sold increased to BRL9.6 billion in the quarter from BRL9.4 billion a year earlier, while total selling, general and administrative expenses rose to BRL6.1 billion from BRL5.8 billion.

Costs for the Brazil beer division were boosted by non-commodity price inflation, but overall costs grew more slowly in the quarter than a year earlier, helped by a more favorable exchange rate and lower commodities prices, Ambev said.

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.


Write to Jeffrey T. Lewis at


(END) Dow Jones Newswires

August 03, 2023 07:58 ET (11:58 GMT)

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