ABEV Financial Analysis

Analysis Date: 1/24/2025

Business Model

Ambev generates revenue primarily through beer and non-alcoholic beverage sales across multiple geographic segments

Revenue Sources

• Brazil Beer (44.7% of Q3 2024 revenue)
• Brazil NAB (Non-Alcoholic Beverages) (9.4% of Q3 2024 revenue)
• CAC (Central America & Caribbean) (12.9% of Q3 2024 revenue)
• LAS (Latin America South) (19.8% of Q3 2024 revenue)
• Canada (13.1% of Q3 2024 revenue)

Revenue Distribution by Channel

• Direct distribution and third-party distributors

Income Statement Analysis

• Net revenue grew 4.9% organically driven by revenue management and positive mix
• Gross margin expanded 180 bps to 50.3% despite cost pressures
• Strong EBITDA growth of 8.5% with margin expansion of 110 bps

Balance Sheet Analysis

• Strong cash position with R$19.8 billion in cash and equivalents
• Healthy balance sheet with low leverage

Cash Flow Analysis

• Strong operating cash flow generation of R$8.1 billion in Q3 2024

Capital Allocation

Company announced new R$2 billion share buyback program. Focus on organic growth investments, while maintaining strong cash returns to shareholders through dividends and share repurchases.

Management Commentary

Strong commercial performance delivered consistent top line growth

Normalized EBITDA grew by high-single digits with margins expanding again

Sequential improvement in both LAS and Canada performance

Overall Sentiment: Confident and optimistic about business momentum and execution of strategic priorities

Recommendation

Rating: Buy

Reason for Rating: Strong operational performance with margin expansion and solid cash generation support positive outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/24/2025, 4:57:38 AM