SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 6-K

 

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the

Securities Exchange Act of 1934

 

For the month of October, 2021

Commission File Number 1565025

 


 

AMBEV S.A.

(Exact name of registrant as specified in its charter)

 

AMBEV S.A.

(Translation of Registrant's name into English)

 

Rua Dr. Renato Paes de Barros, 1017 - 3rd Floor
04530-000 São Paulo, SP
Federative Republic of Brazil

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 


Form 20-F ___X___ Form 40-F _______

 Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.  

Yes _______ No ___X____

 
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AMBEV REPORTS 2021 THIRD QUARTER RESULTS1

“After achieving all-time high rolling 12 months consolidated volumes in 2Q21, and lapping over a great 3Q20, in 3Q21 we saw continued commercial momentum drive our 7.7% top-line growth and 9.4% EBITDA growth compared to 2020, and 20.8% net revenue growth and 15.6% EBITDA growth against 2019” – Jean Jereissati, CEO

 

Total Volume (organic)

+ 7.7% vs LY

Most of our markets delivered continued volume growth momentum: Brazil +8.0%, Central America and the Caribbean (“CAC”) +8.9%, Latin America South (“LAS”) +11.7%, while Canada declined 6.6%.

 

Net Revenue (organic)

+ 20.8% vs LY

Driven by volume performance and net revenue per hectoliter (“NR/hl”) growth of 12.1%. Net revenue grew in Brazil by 17.1%, in CAC by 20.4%, in LAS2 by 54.5%, while in Canada it declined by 2.4%.

     

Normalized EBITDA (organic)

+ 9.4% vs LY

Top-line led recovery continues to drive our EBITDA performance, which remains pressed by FX and commodities, and higher SG&A, affected mostly by higher variable compensation accruals.

 

Normalized Profit

R$ 3,753.3 million

Normalized profit was R$ 3,753.3 million compared to R$ 2,495.9 million in 3Q20 (+50.4%). For YTD21 it totalized R$ 9,477.9 million compared to R$ 5,096.3 million in YTD20 (+86.0%).

     

Cash flow from operating activities

R$ 6,398.2 million

Cash flow from operating activities was R$ 6,398.2 million compared to R$ 7,079.4 million in 3Q20 (-9.6%). For YTD21 it totaled R$ 11,075.5 million compared to R$ 10,462.2 million in YTD20 (+5.9%).

 

ESG

In September, we announced the first carbon neutral large brewery and malt plant in Brazil: Ponta Grossa Brewery (PR) and Passo Fundo Malt Plant (RS).

We were chosen as one of the 5 best places to work in Brazil according to Great Place to Work.

 

 


1 The following operating and financial information, unless otherwise indicated, is presented in nominal Reais and prepared according to the International Financial Reporting Standards (“IFRS”) issued by the International Accounting Standards Board (“IASB”) and to the accounting practices issued by the Brazilian Accounting Standards Committee ("CPC”) and approved by the Brazilian Securities and Exchange Commission (“CVM”). The information herein should be read together with our financial information for the nine-month period ended September 30, 2021, filed with the CVM and submitted to the U.S. Securities and Exchange Commission (“SEC”).

 

2 The impacts resulting from applying Hyperinflation Accounting for our Argentinean subsidiaries, in accordance with IAS 29, are detailed in the section Financial Reporting in Hyperinflationary Economies - Argentina (page 15).

 
  Page | 2

MANAGEMENT COMMENTS

Continued momentum driven by COVID-19 recovery and our consistent commercial strategy

We delivered another strong commercial performance in 3Q21, achieving the highest consolidated volumes in a third quarter on record, delivering strong topline growth of 20.8% on top of a challenging comparable in 3Q20, and 42.9% growth when compared to 3Q19. We continued to grow our volumes by 7.7% versus 3Q20 and 20.8% versus 3Q19, with eight of our top-ten markets already growing above 3Q19. NR/hl grew 12.1% driven by premiumization, innovation, and revenue management initiatives.

Top-line continued to recover ahead of bottom-line. COGS per hectoliter increased 18.5% due to expected FX and commodities impacts. SG&A grew by 19.3%, affected mostly by variable compensation accruals. As a result, Normalized EBITDA increased by 9.4%.

Financial highlights - Ambev consolidated 3Q20 3Q21 % As Reported % Organic YTD20 YTD21 % As Reported % Organic
R$ million
Volume ('000 hl)   42,378.8   45,655.4 7.7% 7.7% 114,855.9 128,993.2 12.3% 12.3%
Net revenue   15,604.5   18,492.6 18.5% 20.8%   39,822.4   50,843.5 27.7% 28.1%
Gross profit  8,181.3  9,239.5 12.9% 14.6%   20,954.2   25,679.8 22.6% 23.2%
% Gross margin 52.4% 50.0% -240 bps -270 bps 52.6% 50.5% -210 bps -200 bps
Normalized EBITDA  5,073.5  5,468.9 7.8% 9.4%   12,654.2   16,085.4 27.1% 18.8%
% Normalized EBITDA margin 32.5% 29.6% -290 bps -310 bps 31.8% 31.6% -20 bps -230 bps
                 
                 
Profit  2,359.0  3,712.7 57.4%    4,841.5  9,375.6 93.6%  
Normalized profit  2,495.9  3,753.3 50.4%    5,096.3  9,477.9 86.0%  
EPS (R$/shares) 0.14 0.23 56.1%   0.29 0.58 97.3%  
Normalized EPS (R$/shares) 0.15 0.23 49.1%   0.31 0.58 89.1%  

Note: Earnings per share calculation is based on outstanding shares (total existing shares excluding shares held in treasury).

Looking at the rolling 12-month (“R12M”) period for every quarter since 1Q11, our consolidated volumes have significantly recovered since 3Q20, and in 3Q21 achieved 180 million hectoliters, 8 million hectoliters above the historical peak in 2015. This reflects the continued success of our strategy, the attractiveness of our brand portfolio, and our investments in the long-term growth of our business:

 

 

 

 
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Most countries are delivering continued momentum with beer volume growth above 3Q20 and 3Q19 levels, as shown below:

ESG

Ambev was awarded first place, for the ninth time, in the Food and Beverage sector of the “Valor 1000” yearbook, showcasing the best companies in 26 industries, as well as presenting the ranking of the 1,000 largest companies in Brazil.

Great Place to Work

Ambev was chosen as one of the top 5 places to work in Brazil among large companies, according to the Great Place to Work. Our technology branch, Ambev Tech, was also listed between the best 150 companies in Brazil.

Climate Action

In September, we announced the first carbon neutral large brewery and malt plant in Brazil: Ponta Grossa Brewery (PR) and Passo Fundo Malt Plant (RS). These two plants reached 90% reduction of CO2 emissions and had the remaining 10% emissions neutralized via carbon credits, reducing approximately 9,700 ton of CO2 annually, the equivalent of 1,300 cars removed from the streets in Brazil. We have also reached 100% renewable energy for our breweries in Panama, the Dominican Republic and Guatemala. This is part of our larger decarbonization plan, aiming at a net zero footprint in the coming years.

 

 
  Page | 4

 

KEY MARKETS PERFORMANCES

Beer Brazil: solid volume performance over a challenging comparable, driven by COVID-19 recovery and commercial strategy

· Operating performance: We outperformed the industry for the fifth consecutive quarter according to our estimates, growing volume by 7.5% versus 3Q20 and 34.8% versus 3Q19. We continue to seize our top line momentum with a solid performance in net revenue, growing 16.2%, and NR/hl, growing 8,2%, due primarily to revenue management initiatives and favorable brand mix. EBITDA fell by 8.5% as top-line growth was offset by anticipated transactional FX and commodity headwinds, variable compensation accruals, and sales and marketing investments (the latter with a hard comparable in 3Q20 due to COVID-19 pandemic). In YTD21, our volumes grew by 11.8%, Net revenue increased by 23.6%, with a NR/hl growth of 10.6%, and Normalized EBITDA grew by 0.1%.
· Commercial highlights: our innovations continue to represent over 20% of revenues, and we over-index in total beer innovations share. Our premium brands, with continued momentum, grew by high teens. We began to roll out Spaten, a Munich Helles style, pure-malt beer, established in 1397, within our Core Plus portfolio. Core brands once again showed their resilience as Skol, Brahma and Antarctica families grew volumes above 3Q20 and 3Q19. BEES continued expanding across the country: we already reach more than 85% of our active customers via the platform, while we once again reached all-time high beer buyers and NPS. Zé Delivery achieved an all-time-high number of operators and fulfilled more than 15 million orders in 3Q21, with a growth trend in the number of orders throughout the quarter. Donus TPV grew 3x versus 2Q21 as we doubled our customer base in 3Q21.
Beer Brazil 3Q20 Scope Currency Translation Organic Growth 3Q21 % As Reported % Organic
R$ million
Volume ('000 hl)   21,846.9      1,628.5   23,475.4 7.5% 7.5%
               
Net revenue  6,650.5      1,080.3  7,730.8 16.2% 16.2%
Net revenue/hl (R$)  304.4     24.9  329.3 8.2% 8.2%
COGS   (3,295.6)       (810.4)   (4,106.0) 24.6% 24.6%
COGS/hl (R$)   (150.8)      (24.1)   (174.9) 15.9% 15.9%
COGS excl. deprec. & amort.   (2,963.7)       (725.0)   (3,688.7) 24.5% 24.5%
COGS/hl excl. deprec. & amort. (R$)   (135.7)      (21.5)   (157.1) 15.8% 15.8%
Gross profit  3,355.0      269.9  3,624.9 8.0% 8.0%
% Gross margin 50.4%       46.9% -350 bps -350 bps
SG&A excl. deprec. & amort.   (1,638.4)       (561.1)   (2,199.5) 34.2% 34.2%
SG&A deprec. & amort.   (301.0)     25.4   (275.6) -8.4% -8.4%
SG&A total   (1,939.4)       (535.7)   (2,475.1) 27.6% 27.6%
Other operating income/(expenses)  159.8     18.2  178.0 11.4% 11.4%
Normalized EBIT  1,575.3       (247.6)  1,327.7 -15.7% -15.7%
% Normalized EBIT margin 23.7%       17.2% -650 bps -650 bps
Normalized EBITDA  2,208.2       (187.6)  2,020.6 -8.5% -8.5%
% Normalized EBITDA margin 33.2%       26.1% -710 bps -710 bps
               
Beer Brazil YTD20 Scope Currency Translation Organic Growth YTD21 % As Reported % Organic
R$ million
Volume ('000 hl)   58,380.0      6,869.4   65,249.4 11.8% 11.8%
               
Net revenue   17,233.7      4,071.1   21,304.9 23.6% 23.6%
Net revenue/hl (R$)  295.2     31.3  326.5 10.6% 10.6%
COGS   (8,270.6)       (2,680.5) (10,951.0) 32.4% 32.4%
COGS/hl (R$)   (141.7)      (26.2)   (167.8) 18.5% 18.5%
COGS excl. deprec. & amort.   (7,291.9)       (2,541.9)   (9,833.7) 34.9% 34.9%
COGS/hl excl. deprec. & amort. (R$)   (124.9)      (25.8)   (150.7) 20.7% 20.7%
Gross profit  8,963.2      1,390.7   10,353.9 15.5% 15.5%
% Gross margin 52.0%       48.6% -340 bps -340 bps
SG&A excl. deprec. & amort.   (4,676.7)       (1,588.2)   (6,264.9) 34.0% 34.0%
SG&A deprec. & amort.   (908.7)     87.3   (821.4) -9.6% -9.6%
SG&A total   (5,585.4)       (1,500.9)   (7,086.3) 26.9% 26.9%
Other operating income/(expenses)  407.8  1,048.5   63.6  1,519.8 nm 15.6%
Normalized EBIT  3,785.6  1,048.5    (46.7)  4,787.4 26.5% -1.2%
% Normalized EBIT margin 22.0%       22.5% 50 bps -450 bps
Normalized EBITDA  5,673.0  1,048.5     4.7  6,726.1 18.6% 0.1%
% Normalized EBITDA margin 32.9%       31.6% -130 bps -630 bps
 
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NAB Brazil: Strong commercial performance supported by BEES and our premium brands portfolio, with volumes above 3Q20 and 3Q19

· Operating performance: Continued recovery of our non-alcoholic business, with net revenue growing 22.4% versus 3Q20 and 25.7% versus 3Q19. Volume grew 9.8% resulting in market share gains according to our estimates. NR/hl increased by 11.5%, driven by revenue management initiatives and favorable brand mix, supported by the gradual recovery of mobility. EBITDA declined by 20.8%, as strong top-line growth was offset by the anticipated transactional FX and commodity headwinds, as well as bonus accrual. In YTD21, our volumes grew by 11.2%. Net revenue increased by 21.5%, with a NR/hl growth of 9.3%, and Normalized EBITDA declined by 7.2%.
· Commercial highlights: The continued return of out-of-home occasions supported volume growth of our premium brands, particularly in single-serve packaging, driving positive brand mix. Guaraná Antarctica turned 100 years and we announced that by December 2021, 100% of its bottles will be made of recycled PET. NAB portfolio continued to benefit from BEES adoption by our clients, allowing us to reach another all-time high number of buyers.
NAB Brazil 3Q20 Scope Currency Translation Organic Growth 3Q21 % As Reported % Organic
R$ million
Volume ('000 hl)  6,602.7      646.0  7,248.6 9.8% 9.8%
               
Net revenue  1,034.0      231.7  1,265.6 22.4% 22.4%
Net revenue/hl (R$)  156.6     18.0  174.6 11.5% 11.5%
COGS   (527.2)       (255.2)   (782.3) 48.4% 48.4%
COGS/hl (R$)  (79.8)      (28.1)   (107.9) 35.2% 35.2%
COGS excl. deprec. & amort.   (481.5)       (246.3)   (727.8) 51.1% 51.1%
COGS/hl excl. deprec. & amort. (R$)  (72.9)      (27.5)   (100.4) 37.7% 37.7%
Gross profit  506.8      (23.5)  483.3 -4.6% -4.6%
% Gross margin 49.0%       38.2% -1080 bps -1080 bps
SG&A excl. deprec. & amort.   (302.1)      (50.9)   (353.0) 16.9% 16.9%
SG&A deprec. & amort.  (37.8)     (0.2)  (38.0) 0.5% 0.5%
SG&A total   (339.8)      (51.1)   (391.0) 15.0% 15.0%
Other operating income/(expenses) 68.7     (0.8) 67.9 -1.1% -1.1%
Normalized EBIT  235.7      (75.4)  160.2 -32.0% -32.0%
% Normalized EBIT margin 22.8%       12.7% -1010 bps -1010 bps
Normalized EBITDA  319.1      (66.3)  252.7 -20.8% -20.8%
% Normalized EBITDA margin 30.9%       20.0% -1090 bps -1090 bps
               
               

 

 

NAB Brazil

YTD20 Scope Currency Translation Organic Growth YTD21 % As Reported % Organic
R$ million
Volume ('000 hl)   18,184.2      2,040.8   20,225.0 11.2% 11.2%
               
Net revenue  2,830.6      609.7  3,440.3 21.5% 21.5%
Net revenue/hl (R$)  155.7     14.4  170.1 9.3% 9.3%
COGS   (1,483.5)       (536.8)   (2,020.3) 36.2% 36.2%
COGS/hl (R$)  (81.6)      (18.3)  (99.9) 22.4% 22.4%
COGS excl. deprec. & amort.   (1,340.1)       (524.9)   (1,865.0) 39.2% 39.2%
COGS/hl excl. deprec. & amort. (R$)  (73.7)      (18.5)  (92.2) 25.1% 25.1%
Gross profit  1,347.1     72.9  1,420.0 5.4% 5.4%
% Gross margin 47.6%       41.3% -630 bps -630 bps
SG&A excl. deprec. & amort.   (854.7)       (152.5)   (1,007.2) 17.8% 17.8%
SG&A deprec. & amort.   (117.5)       8.7   (108.7) -7.4% -7.4%
SG&A total   (972.2)       (143.7)   (1,115.9) 14.8% 14.8%
Other operating income/(expenses)  124.0  170.7   12.9  307.6 148.0% 10.4%
Normalized EBIT  498.9  170.7    (58.0)  611.6 22.6% -11.6%
% Normalized EBIT margin 17.6%       17.8% 20 bps -480 bps
Normalized EBITDA  759.8  170.7    (54.8)  875.7 15.3% -7.2%
% Normalized EBITDA margin 26.8%       25.5% -130 bps -630 bps

 

 
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BRAZIL

Brazil 3Q20 Scope Currency Translation Organic Growth 3Q21 % As Reported % Organic
R$ million
Volume ('000 hl)   28,449.6      2,274.5   30,724.1 8.0% 8.0%
               
Net revenue  7,684.5      1,311.9  8,996.5 17.1% 17.1%
Net revenue/hl (R$)  270.1     22.7  292.8 8.4% 8.4%
COGS   (3,822.7)       (1,065.6)   (4,888.3) 27.9% 27.9%
COGS/hl (R$)   (134.4)      (24.7)   (159.1) 18.4% 18.4%
COGS excl. deprec. & amort.   (3,445.2)       (971.3)   (4,416.5) 28.2% 28.2%
COGS/hl excl. deprec. & amort. (R$)   (121.1)      (22.6)   (143.7) 18.7% 18.7%
Gross profit  3,861.8      246.4  4,108.2 6.4% 6.4%
% Gross margin 50.3%       45.7% -460 bps -460 bps
SG&A excl. deprec. & amort.   (1,940.5)       (612.0)   (2,552.5) 31.5% 31.5%
SG&A deprec. & amort.   (338.8)     25.2   (313.6) -7.4% -7.4%
SG&A total   (2,279.3)       (586.8)   (2,866.1) 25.7% 25.7%
Other operating income/(expenses)  228.4     17.4  245.8 7.6% 7.6%
Normalized EBIT  1,810.9       (323.0)  1,488.0 -17.8% -17.8%
% Normalized EBIT margin 23.6%       16.5% -710 bps -710 bps
Normalized EBITDA  2,527.3       (254.0)  2,273.3 -10.0% -10.0%
% Normalized EBITDA margin 32.9%       25.3% -760 bps -760 bps
               
               

 

Brazil

YTD20 Scope Currency Translation Organic Growth YTD21 % As Reported % Organic
R$ million
Volume ('000 hl)   76,564.2      8,910.3   85,474.4 11.6% 11.6%
               
Net revenue   20,064.3      4,680.9   24,745.2 23.3% 23.3%
Net revenue/hl (R$)  262.1     27.4  289.5 10.5% 10.5%
COGS   (9,754.1)       (3,217.3) (12,971.4) 33.0% 33.0%
COGS/hl (R$)   (127.4)      (24.4)   (151.8) 19.1% 19.1%
COGS excl. deprec. & amort.   (8,632.0)       (3,066.8) (11,698.7) 35.5% 35.5%
COGS/hl excl. deprec. & amort. (R$)   (112.7)      (24.1)   (136.9) 21.4% 21.4%
Gross profit   10,310.3      1,463.6   11,773.9 14.2% 14.2%
% Gross margin 51.4%       47.6% -380 bps -380 bps
SG&A excl. deprec. & amort.   (5,531.4)       (1,740.6)   (7,272.1) 31.5% 31.5%
SG&A deprec. & amort.   (1,026.2)     96.0   (930.1) -9.4% -9.4%
SG&A total   (6,557.6)       (1,644.6)   (8,202.2) 25.1% 25.1%
Other operating income/(expenses)  531.8  1,219.2   76.4  1,827.4 nm 14.4%
Normalized EBIT  4,284.5  1,219.2     (104.6)  5,399.0 26.0% -2.4%
% Normalized EBIT margin 21.4%       21.8% 40 bps -450 bps
Normalized EBITDA  6,432.7  1,219.2    (50.1)  7,601.8 18.2% -0.8%
% Normalized EBITDA margin 32.1%       30.7% -140 bps -630 bps

 

 
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Central America and the Caribbean (CAC): premiumization and BEES driving consistent top-line growth

· Operating performance: Net revenue grew by 20.4% driven by a solid performance across our top-three countries (Dominican Republic, Panama and Guatemala), showing strong business fundamentals amid COVID-19 pandemic recovery. Volume grew by 8.9%, while NR/hl grew 10.6%, driven by revenue management initiatives, premiumization and BEES. SG&A expenses were stable at 0.4% due to S&M investments, higher distribution costs as a result of growing volumes, offset by administrative expenses savings. In YTD21, our volumes grew by 23.5%. Net revenue increased by 37.2%, with a NR/hl growth of 11.2% and Normalized EBITDA grew by 34.0%.
· Commercial highlights: above core brands portfolio momentum continues to drive volume growth in CAC markets. Our premium portfolio delivered strong volume growth led by Corona, followed by Michelob Ultra. Modelo, our Core Plus brand, is expanding its presence, especially in the Dominican Republic.
CAC 3Q20 Scope Currency Translation Organic Growth 3Q21 % As Reported % Organic
R$ million
Volume ('000 hl) 3,105.2     276.7 3,381.9 8.9% 8.9%
               
Net revenue 2,064.8   (89.2) 421.4 2,397.0 16.1% 20.4%
Net revenue/hl (R$) 664.9   (26.4)   70.2 708.8 6.6% 10.6%
COGS   (901.4)    44.3   (246.1)   (1,103.2) 22.4% 27.3%
COGS/hl (R$)   (290.3)    13.1  (49.0)   (326.2) 12.4% 16.9%
COGS excl. deprec. & amort.   (792.7)    39.3   (254.9)   (1,008.3) 27.2% 32.2%
COGS/hl excl. deprec. & amort. (R$)   (255.3)    11.6  (54.5)   (298.1) 16.8% 21.3%
Gross profit 1,163.3   (44.9) 175.3 1,293.8 11.2% 15.1%
% Gross margin 56.3%       54.0% -230 bps -250 bps
SG&A excl. deprec. & amort.   (364.0)    21.7  (45.4)   (387.7) 6.5% 12.5%
SG&A deprec. & amort.  (88.0)   3.5   43.6  (41.0) -53.5% -49.5%
SG&A total   (452.0)    25.2 (1.9)   (428.7) -5.2% 0.4%
Other operating income/(expenses) (5.8)     (0.1)   11.7  5.7 -198.9% nm
Normalized EBIT 705.5   (19.7) 185.1 870.9 23.4% 26.2%
% Normalized EBIT margin 34.2%       36.3% 210 bps 160 bps
Normalized EBITDA 902.3   (28.2) 132.7 1,006.8 11.6% 14.7%
% Normalized EBITDA margin 43.7%       42.0% -170 bps -210 bps
               
               

 

CAC

YTD20 Scope Currency Translation Organic Growth YTD21 % As Reported % Organic
R$ million
Volume ('000 hl) 7,943.0     1,863.4 9,806.4 23.5% 23.5%
               
Net revenue 4,876.6     324.9 1,816.5 7,018.1 43.9% 37.2%
Net revenue/hl (R$) 614.0    33.1   68.6 715.7 16.6% 11.2%
COGS   (2,239.7)    (152.2)   (898.0)   (3,289.9) 46.9% 40.1%
COGS/hl (R$)   (282.0)   (15.5)  (38.0)   (335.5) 19.0% 13.5%
COGS excl. deprec. & amort.   (1,930.4)    (137.5)   (906.5)   (2,974.4) 54.1% 47.0%
COGS/hl excl. deprec. & amort. (R$)   (243.0)   (14.0)  (46.3)   (303.3) 24.8% 19.0%
Gross profit 2,637.0     172.7 918.6 3,728.2 41.4% 34.8%
% Gross margin 54.1%       53.1% -100 bps -100 bps
SG&A excl. deprec. & amort.   (948.6)   (63.8)   (265.8)   (1,278.2) 34.7% 28.0%
SG&A deprec. & amort.   (182.6)     (7.8)   29.4   (161.1) -11.8% -16.1%
SG&A total   (1,131.3)   (71.6)   (236.4)   (1,439.3) 27.2% 20.9%
Other operating income/(expenses)  (18.9)   0.6   28.1  9.8 -151.6% -148.5%
Normalized EBIT 1,486.8     101.7 710.3 2,298.7 54.6% 47.8%
% Normalized EBIT margin 30.5%       32.8% 230 bps 230 bps
Normalized EBITDA 1,978.7     124.2 672.3 2,775.2 40.3% 34.0%
% Normalized EBITDA margin 40.6%       39.5% -110 bps -100 bps
 
  Page | 8

 

Latin America South (LAS)3: strong topline momentum with EBITDA growth and margin recovery

· Operating performance: Strong volume growth of 11.7% in LAS was driven by good performances from our Argentina, Chile, and Paraguay businesses, while Bolivia continued recovery as COVID-19 restrictions gradually eased. Growth of our above core brands, especially in Argentina and Chile, coupled with revenue management initiatives, led to NR/hl growth of 38.3%. Top-line performance helped offset cost pressures, leading once again to gross margin and EBITDA margin expansion. In YTD21, our volumes grew by 15.7%. Net revenue increased by 58.7%, with a NR/hl growth of 37.2%, and Normalized EBITDA grew by 74.6% with margin expansion.
· Commercial highlights: In Chile, our commercial performance continues to be boosted by our new Route-to-Market with Coca-Cola bottlers, achieving market share gains and strong growth of our Corona brand. Corona grew double digits in all LAS countries, leading our premium brands portfolio growth. We continued the successful rollout of BEES in Paraguay and Argentina, where marketplace is already fully rolled out in our DDCs.
LAS 3Q20 Scope Currency Translation IAS 29
6M Impact
Organic Growth 3Q21 % As Reported % Organic
R$ million
Volume ('000 hl) 7,858.6       922.0 8,780.5 11.7% 11.7%
                 
Net revenue 2,956.5    (419.2)   86.4 1,571.4 4,195.0 41.9% 54.5%
Net revenue/hl (R$) 376.2   (47.7)  5.4 143.9 477.8 27.0% 38.3%
COGS  (1,569.9)   235.4 (35.6)  (716.7)  (2,086.8) 32.9% 46.7%
COGS/hl (R$)  (199.8)     26.8   (2.3) (62.4)  (237.7) 19.0% 31.3%
COGS excl. deprec. & amort.  (1,372.8)   210.0 (31.6)  (665.0)  (1,859.4) 35.4% 49.4%
COGS/hl excl. deprec. & amort. (R$)  (174.7)     23.9   (2.0) (59.0)  (211.8) 21.2% 33.8%
Gross profit 1,386.6    (183.8)   50.8 854.7 2,108.2 52.0% 63.4%
% Gross margin 46.9%         50.3% 340 bps 270 bps
SG&A excl. deprec. & amort.  (740.2)   113.8 (22.8)  (368.4)  (1,017.5) 37.5% 51.1%
SG&A deprec. & amort. (90.5)    9.6   (1.2)   (6.7) (88.8) -1.8% 7.7%
SG&A total  (830.7)   123.4 (24.0)  (375.1)  (1,106.3) 33.2% 46.4%
Other operating income/(expenses) (40.0)     (5.4)  0.4   58.2   13.3 -133.3% -149.4%
Normalized EBIT 515.9   (65.8)   27.2 537.8 1,015.2 96.8% 107.4%
% Normalized EBIT margin 17.5%         24.2% 670 bps 590 bps
Normalized EBITDA 803.6    (100.8)   32.4 596.3 1,331.5 65.7% 76.4%
% Normalized EBITDA margin 27.2%         31.7% 450 bps 390 bps
                 
                 

 

LAS

YTD20 Scope Currency Translation IAS 29
6M Impact
Organic Growth YTD21 % As Reported % Organic
R$ million
Volume ('000 hl)  22,575.7       3,533.7  26,109.4 15.7% 15.7%
                 
Net revenue 7,940.3    (1,670.4)   4,661.7  10,931.6 37.7% 58.7%
Net revenue/hl (R$) 351.7   (64.0)   130.9 418.7 19.0% 37.2%
COGS  (4,104.2)   669.3    (2,136.9)  (5,571.8) 35.8% 52.1%
COGS/hl (R$)  (181.8)     25.6   (57.2)  (213.4) 17.4% 31.5%
COGS excl. deprec. & amort.  (3,532.0)   562.2    (1,992.6)  (4,962.4) 40.5% 56.4%
COGS/hl excl. deprec. & amort. (R$)  (156.5)     21.5   (55.1)  (190.1) 21.5% 35.2%
Gross profit 3,836.1    (1,001.2)   2,524.8 5,359.8 39.7% 65.8%
% Gross margin 48.3%         49.0% 70 bps 220 bps
SG&A excl. deprec. & amort.  (2,093.5)   468.7    (1,062.1)  (2,686.9) 28.3% 50.7%
SG&A deprec. & amort.  (254.7)     43.1   (32.9)  (244.6) -4.0% 12.9%
SG&A total  (2,348.2)   511.8    (1,095.0)  (2,931.5) 24.8% 46.6%
Other operating income/(expenses) (65.5)    1.7     71.2  7.4 -111.3% -108.7%
Normalized EBIT 1,422.4    (487.7)   1,501.0 2,435.7 71.2% 105.5%
% Normalized EBIT margin 17.9%         22.3% 440 bps 530 bps
Normalized EBITDA 2,249.2    (637.8)   1,678.3 3,289.7 46.3% 74.6%
% Normalized EBITDA margin 28.3%         30.1% 180 bps 290 bps

 


3 Reported numbers are presented applying Hyperinflation Accounting for our Argentinean operations, as detailed on page 15.

 
  Page | 9

 

Canada4: Solid NR/hl growth coupled with expenses management helped to offset volume shortfall driven by a weak industry performance and supply chain constraints

· Operating performance: A weakened beer industry given persistent restrictions, paired with some supply chain constraints, drove our 6.6% volume decline. We managed to deliver a flat EBITDA versus 3Q20, through a combination of solid NR/hl growth of 4.5% and SG&A expense management which offset COGS/hl commodity headwinds. In YTD21, our volumes fell by 2.3%. However, Net revenue increased by 0.5%, with a NR/hl growth of 2.8%, and Normalized EBITDA also grew by 4.2%.
· Commercial highlights: brand power grew led by our above core portfolio where Corona remains the most appealing brand in Canada and grew volumes versus 3Q20 and 3Q19. Outperformance of our premium and beyond beer brands translated into positive brand mix.
Canada 3Q20 Scope Currency Translation Organic Growth 3Q21 % As Reported % Organic
R$ million
Volume ('000 hl) 2,965.5     (196.6) 2,768.9 -6.6% -6.6%
               
Net revenue 2,898.7  0.8   75.2  (70.7) 2,904.1 0.2% -2.4%
Net revenue/hl (R$) 977.5  0.3   27.2   43.9 1,048.8 7.3% 4.5%
COGS   (1,129.1) (1.9)  (28.0)  (15.7)   (1,174.7) 4.0% 1.4%
COGS/hl (R$)   (380.7) (0.6)  (10.1)  (32.8)   (424.3) 11.4% 8.6%
COGS excl. deprec. & amort.   (1,062.0) (0.7)  (27.4)  (10.5)   (1,100.6) 3.6% 1.0%
COGS/hl excl. deprec. & amort. (R$)   (358.1) (0.2) (9.9)  (29.2)   (397.5) 11.0% 8.2%
Gross profit 1,769.7 (1.1)   47.2  (86.4) 1,729.4 -2.3% -4.9%
% Gross margin 61.0%       59.5% -150 bps -150 bps
SG&A excl. deprec. & amort.   (981.7) (5.2)  (24.2)   79.3   (931.9) -5.1% -8.1%
SG&A deprec. & amort.  (59.1) (0.8)  1.1  (58.8) -0.4% -1.9%
SG&A total   (1,040.8) (5.2)  (25.1)   80.4   (990.7) -4.8% -7.7%
Other operating income/(expenses)  (14.6)  0.1 (1.6)  1.9  (14.3) -2.6% -12.9%
Normalized EBIT 714.2 (6.2)   20.5 (4.2) 724.4 1.4% -0.6%
% Normalized EBIT margin 24.6%       24.9% 30 bps 50 bps
Normalized EBITDA 840.4 (5.0)   22.0 (0.0) 857.4 2.0% 0.0%
% Normalized EBITDA margin 29.0%       29.5% 50 bps 70 bps
               
               

 

Canada

YTD20 Scope Currency Translation Organic Growth YTD21 % As Reported % Organic
R$ million
Volume ('000 hl) 7,773.0  6.5     (176.5) 7,602.9 -2.2% -2.3%
               
Net revenue 6,941.2  7.5 1,164.6   35.5 8,148.7 17.4% 0.5%
Net revenue/hl (R$) 893.0  0.2 153.2   25.4 1,071.8 20.0% 2.8%
COGS   (2,770.3) (5.0)   (475.7)  (79.6)   (3,330.7) 20.2% 2.9%
COGS/hl (R$)   (356.4) (0.3)  (62.6)  (18.8)   (438.1) 22.9% 5.3%
COGS excl. deprec. & amort.   (2,588.1) (3.8)   (443.6)  (69.7)   (3,105.2) 20.0% 2.7%
COGS/hl excl. deprec. & amort. (R$)   (333.0) (0.2)  (58.4)  (16.9)   (408.4) 22.7% 5.1%
Gross profit 4,170.9  2.4 688.8  (44.2) 4,818.0 15.5% -1.1%
% Gross margin 60.1%       59.1% -100 bps -90 bps
SG&A excl. deprec. & amort.   (2,316.4) (8.7)   (371.2)   92.4   (2,603.9) 12.4% -4.0%
SG&A deprec. & amort.   (153.8)  (25.1)  3.4   (175.5) 14.1% -2.2%
SG&A total   (2,470.2) (8.7)   (396.3)   95.9   (2,779.3) 12.5% -3.9%
Other operating income/(expenses)  (43.2)  0.1 (3.0)   25.1  (21.0) -51.4% -58.1%
Normalized EBIT 1,657.5 (6.1) 289.5   76.8 2,017.7 21.7% 4.6%
% Normalized EBIT margin 23.9%       24.8% 90 bps 100 bps
Normalized EBITDA 1,993.6 (4.9) 346.7   83.3 2,418.6 21.3% 4.2%
% Normalized EBITDA margin 28.7%       29.7% 100 bps 110 bps

 


4 The scope change in Canada refers to the acquisition, in January 2020, of G&W Distilling Inc, a company that produces a portfolio of ready-to-drink beverages.

 
  Page | 10

AMBEV CONSOLIDATED

Ambev 3Q20 Scope Currency Translation IAS 29
6M Impact
Organic Growth 3Q21 % As Reported % Organic
R$ million
Volume ('000 hl) 42,378.8         3,276.6 45,655.4 7.7% 7.7%
                 
Net revenue 15,604.5 0.8  (433.2)  86.4   3,234.1 18,492.6 18.5% 20.8%
Net revenue/hl (R$)   368.2 0.0   (9.5) 1.6  44.7   405.0 10.0% 12.1%
COGS (7,423.1)  (1.9)   251.8   (35.6) (2,044.2) (9,253.1) 24.7% 27.7%
COGS/hl (R$) (175.2)  (0.0) 5.5  (0.6)   (32.4) (202.7) 15.7% 18.5%
COGS excl. deprec. & amort. (6,672.7)  (0.7)   222.0   (31.6) (1,901.7) (8,384.8) 25.7% 28.6%
COGS/hl excl. deprec. & amort. (R$) (157.5)  (0.0) 4.9  (0.5)   (30.5) (183.7) 16.6% 19.4%
Gross profit   8,181.3  (1.1)  (181.4)  50.8   1,189.9   9,239.5 12.9% 14.6%
% Gross margin 52.4%         50.0% -240 bps -270 bps
SG&A excl. deprec. & amort. (4,026.3)  (5.2)   111.3   (22.8) (946.5) (4,889.5) 21.4% 23.6%
SG&A deprec. & amort. (576.4)     12.3  (1.2)  63.1 (502.2) -12.9% -11.0%
SG&A total (4,602.8)  (5.2)   123.6   (24.0) (883.4) (5,391.8) 17.1% 19.3%
Other operating income/(expenses)   168.0 0.1   (7.1) 0.4  89.2   250.6 49.2% 52.8%
Normalized EBIT   3,746.6  (6.2) (65.0)  27.2   395.8   4,098.4 9.4% 10.6%
% Normalized EBIT margin 24.0%         22.2% -180 bps -200 bps
Exceptional items above EBITDA (159.8)    2.1  (1.0)  78.3   (80.4) -49.7% -49.3%
Net finance results (1,144.8)         (876.2) -23.5%  
Share of results of joint ventures   (11.0)           (19.3) 75.8%  
Income tax expense   (72.1)           590.3 nm  
                 
Profit   2,359.0           3,712.7 57.4%  
Attributable to Ambev holders   2,274.8           3,552.5 56.2%  
Attributable to non-controlling interests  84.2           160.2 90.3%  
                 
Normalized profit   2,495.9           3,753.3 50.4%  
Attributable to Ambev holders   2,409.3           3,625.6 50.5%  
                 
Normalized EBITDA   5,073.5  (5.0)  (107.1)  32.4   475.1   5,468.9 7.8% 9.4%
% Normalized EBITDA margin 32.5%         29.6% -290 bps -310 bps

 

 

Ambev YTD20 Scope Currency Translation IAS 29
6M Impact
Organic Growth YTD21 % As Reported % Organic
R$ million
Volume ('000 hl)  114,855.9 6.5     14,130.9  128,993.2 12.3% 12.3%
                 
Net revenue 39,822.4 7.5  (180.9)   11,194.6 50,843.5 27.7% 28.1%
Net revenue/hl (R$)   346.7 0.0   (1.4)    48.8   394.2 13.7% 14.1%
COGS  (18,868.2)  (5.0)  41.3   (6,331.8)  (25,163.7) 33.4% 33.6%
COGS/hl (R$) (164.3)  (0.0) 0.3     (31.1) (195.1) 18.7% 18.9%
COGS excl. deprec. & amort.  (16,682.5)  (3.8) (18.9)   (6,035.5)  (22,740.7) 36.3% 36.2%
COGS/hl excl. deprec. & amort. (R$) (145.2)  (0.0)   (0.1)     (30.9) (176.3) 21.4% 21.3%
Gross profit 20,954.2 2.4  (139.6)     4,862.8 25,679.8 22.6% 23.2%
% Gross margin 52.6%         50.5% -210 bps -200 bps
SG&A excl. deprec. & amort.  (10,889.9)  (8.7)  33.7   (2,976.1)  (13,841.0) 27.1% 27.3%
SG&A deprec. & amort. (1,617.3)    10.2    95.9 (1,511.3) -6.6% -5.9%
SG&A total  (12,507.2)  (8.7)  43.9   (2,880.2)  (15,352.2) 22.7% 23.0%
Other operating income/(expenses)   404.2   1,219.3   (0.7)     200.8   1,823.5 nm 49.7%
Normalized EBIT   8,851.2   1,213.1 (96.5)     2,183.4 12,151.1 37.3% 24.7%
% Normalized EBIT margin 22.2%         23.9% 170 bps -60 bps
Exceptional items above EBITDA (311.8)     14.8    59.5 (237.4) -23.8% -19.1%
Net finance results (3,475.4)         (2,217.8)    
Share of results of joint ventures   (33.9)           (40.9)    
Income tax expense (188.6)         (279.3)    
                 
Profit   4,841.5           9,375.6 93.6%  
Attributable to Ambev holders   4,593.4           9,063.7 97.3%  
Attributable to non-controlling interests   248.2           311.9 25.7%  
                 
Normalized profit   5,096.3           9,477.9 86.0%  
Attributable to Ambev holders   4,844.1           9,274.1 91.4%  
                 
Normalized EBITDA 12,654.2   1,214.3  (166.9)     2,383.7 16,085.4 27.1% 18.8%
% Normalized EBITDA margin 31.8%         31.6% -20 bps -230 bps
 
  Page | 11

 

 

OTHER OPERATING INCOME/EXPENSES

Other operating income/(expenses) 3Q20 3Q21 YTD20 YTD21
R$ million
         
Government grants/NPV of long term fiscal incentives 207.4 229.2 481.9 579.4
Credits/(debits) extemporaneous taxes    (0.3) 1,218.9
(Additions to)/reversals of provisions (5.8) (6.6)  (34.0)  (28.0)
Gain/(loss) on disposal of fixed assets, intangible assets and operations in associates  (20.9)  7.0  (22.2)   18.3
Net other operating income/(expenses)  (12.7)   21.3  (21.6)   34.9
         
Other operating income/(expenses) 168.0 250.6 404.2 1,823.5

 

EXCEPTIONAL ITEMS

Exceptional items correspond to (i) exceptional expenses incurred in relation to the COVID-19 pandemic, including actions taken to ensure the health and safety of our employees, such as the acquisition of hand-sanitizer, masks, and enhanced cleaning of our facilities, as well as donations to the broader community, and (ii) restructuring expenses primarily linked to centralization and sizing projects in Brazil and LAS.

 

Exceptional Items 3Q20 3Q21 YTD20 YTD21
R$ million
         
Costs from business combination (0.8)     (17.5)
Restructuring  (43.6)  (44.8)  (93.7)   (121.5)
IAS 29/CPC 42 (hyperinflation) application effect (2.9) (2.9) (3.4) (6.7)
COVID-19 impact   (111.6)  (32.7)   (183.1)   (109.3)
Other (0.8)  (14.1)  
         
Exceptional Items   (159.8)  (80.4)   (311.8)   (237.4)

 

 
  Page | 12

 

NET FINANCE RESULTS

Net finance results in 3Q21 improved by R$ 268.6 million compared to 3Q20, broken down as follows:

· Interest income totaled R$ 173 million, mainly explained by: (i) interest income on cash balance investments mainly in Brazil of R$ 84 million, and (ii) interest rate update on Tax Credits of R$ 62 million.
· Interest expense totaled R$ 351 million, mainly impacted by: (i) fair value adjustments of payables as determined by IFRS 13 (CPC 46) of R$ 150 million, (ii) fiscal incentives interest accruals of R$ 47 million, (iii) CND put option interest accruals of R$ 40 million, and (iv) lease liabilities interest accruals of R$ 33 million in accordance with IFRS16 (CPC 06 R2).
· Losses on derivative instruments of R$ 606 million, mainly explained by: (i) hedging carry costs related to our FX exposure of US$ 630 million in Argentina, with approximately 37% carry cost, (ii) hedging carry costs related to our FX exposure of USD 1.6 billion in Brazil, with approximately 5% carry cost, and (iii) equity swap mark-to-market losses of R$ 29 million.
· Losses on non-derivative instruments of approximately R$ 100 million, mainly explained by losses on balance sheet consolidation (intercompany and third-party payables).
· Taxes on financial transactions of R$ 46 million mainly impacted by taxes on interest income.
· Other financial expenses of R$ 197 million, mainly explained by accruals on legal contingencies.
· Non-cash financial income of R$ 251 million resulting from the adoption of Hyperinflation Accounting in Argentina.

 

 

Net finance results 3Q20 3Q21 YTD20 YTD21
R$ million
         
Interest income   72.8  173.4  370.2  801.0
Interest expenses   (539.3)   (351.2)   (1,397.9)   (989.3)
Gains/(losses) on derivative instruments   (562.7)   (606.3)   (1,710.7)   (1,677.4)
Gains/(losses) on non-derivative instruments  (46.2)  (99.9)   (403.0)   (375.3)
Taxes on financial transactions  (44.4)  (46.2)   (179.9)   (114.9)
Other financial income/(expenses), net   (118.7)   (196.6)   (412.7)   (516.2)
Hyperinflation Argentina   93.6  250.5  258.6  654.3
         
Net finance results   (1,144.8)   (876.2)   (3,475.4)   (2,217.8)

 

 
  Page | 13

 

DEBT BREAKDOWN

Debt breakdown December 31, 2020 September 30, 2021
R$ million Current Non-current Total Current Non-current Total
             
Local Currency   2,232.7   1,622.1   3,854.8   744.5   1,663.1   2,407.6
Foreign Currency   506.1   431.4   937.4   144.8   475.3   620.1
Consolidated Debt   2,738.8   2,053.5   4,792.2   889.3   2,138.5   3,027.7
             
Cash and Cash Equivalents less Bank Overdrafts     17,090.3     17,744.6
Current Investment Securities       1,700.0       2,044.6
             
Net debt/(cash)       (13,998.1)       (16,761.5)

 

PROVISION FOR INCOME TAX & SOCIAL

On September 24, 2021, the Brazilian Supreme Court decided that interest over claims (including tax credits recognized in 2019, 2020 and 2Q21) is not taxable for the Corporate Income Tax purposes since its nature is not an income, but rather an indemnity. This resulted in a total reversion of approximately R$ 754 million of Deferred Taxes Liabilities in 3Q21. For further references please see Note 21 of our Financial Statements.

The table below demonstrates the tax and social contribution provision.

 

Income tax and social contribution 3Q20 3Q21 YTD20 YTD21
R$ million
         
Profit before tax  2,431.0  3,122.5  5,030.1  9,655.0
         
Adjustment on taxable basis        
Non-taxable other income (i)  (0.1)  (465.1)  (0.1)  (465.1)
Government grants (VAT)  (451.5)  (499.6)  (1,205.8)  (1,306.2)
Share of results of joint ventures  11.0  19.3  33.9  40.9
Expenses not deductible  33.7  16.8  67.8  59.3
Taxation in universal basis  48.5  (275.9)  (110.3)  (388.0)
   2,072.8  1,918.0  3,815.6  7,595.9
Aggregated weighted nominal tax rate 28.3% 24.6% 27.5% 27.6%
Taxes – nominal rate  (585.6)  (470.9)  (1,048.5)  (2,095.5)
         
Adjustment on tax expense        
Income tax incentive  88.7  91.2  120.0  172.1
Tax benefit - interest on shareholders' equity  502.6  549.5  1,177.9  1,580.7
Tax benefit - amortization on tax books  19.4  19.4  58.1  58.1
Withholding income tax  (140.8)  (169.5)  (555.9)  (482.5)
Argentina's hyperinflation effect  (18.3)  (25.2)  (47.8)  (86.3)
Other tax adjustments  62.0  595.8  107.6  574.1
         
Income tax and social contribution expense  (72.1)  590.3  (188.6)  (279.3)
Effective tax rate 3.0% -18.9% 3.7% 2.9%

 

(i) Balances adjusted for comparative purposes.

 

SHAREHOLDING STRUCTURE

The table below summarizes Ambev S.A.’s shareholding structure as of September 30, 2021.

Ambev S.A.'s shareholding structure
  ON % Outs
Anheuser-Busch InBev   9,728,911,349 61.8%
FAHZ   1,609,987,301 10.2%
Market   4,398,257,003 27.9%
Outstanding 15,737,155,653 100.0%
Treasury 4,299,542  
TOTAL 15,741,455,195  
Free float B3   2,943,808,785 18.7%
Free float NYSE   1,454,448,218 9.2%
 
  Page | 14

FINANCIAL REPORTING IN HYPERINFLATIONARY ECONOMIES - ARGENTINA

Following the categorization of Argentina as a country with a three-year cumulative inflation rate greater than 100%, the country is considered highly inflationary in accordance with IFRS.

Consequently, starting from 3Q18, we have been reporting the operations of our Argentinean affiliates applying Hyperinflation Accounting. The IFRS and CPC rules (IAS 29/CPC 42) require the results of our operations in hyperinflationary economies to be reported restating the year-to-date results adjusting for the change in the general purchasing power of the local currency, using official indices, before converting the local amounts at the closing rate of the period (i.e., September 30, 2021 closing rate for 3Q21 and YTD21 results).

The YTD21 Hyperinflation Accounting adjustment results from the combined effect of (i) the indexation to reflect changes in purchasing power on the YTD21 results against a dedicated line in the finance results, and (ii) the difference between the translation of the YTD21 results at the closing exchange rate of September 30, 2021, and the translation using the average year to date rate on the reported period, as applicable to non-inflationary economies. 3Q21 results under Hyperinflation Accounting are calculated as the difference between reported YTD21 and HY21 results.

The impacts in 3Q20, YTD20, 3Q21 and YTD21 on Net Revenue and Normalized EBITDA were as follows:

 

Impact of Hyperinflation Accounting (IAS 29/CPC42)        
Revenue        
R$ million 3Q20 3Q21 YTD20 YTD21
Indexation(1)  244.4  357.9  393.8  707.9
Currency(2) (150.7)  255.2   (51.9) (244.4)
Total Impact 93.7  613.1  341.9  463.5
         
Normalized EBITDA        
R$ million 3Q20 3Q21 YTD20 YTD21
Indexation(1) 82.9  113.6  126.8  222.8
Currency(2)   (46.2) 84.4   (16.1)   (80.4)
Total Impact 36.7  198.0  110.7  142.4
         
         

 

(1) Indexation calculated at each period’s closing exchange rate.
(2) Currency impact calculated as the difference between converting the Argentinean peso (ARS) reported amounts at the closing exchange rate compared to the average exchange rate of each period.

 

Furthermore, IAS 29 requires adjusting non-monetary assets and liabilities on the balance sheet of our operations in hyperinflationary economies for cumulative inflation. The resulting effect from the adjustment until December 31, 2017 was reported in Equity and, the effect from the adjustment from this date on, in a dedicated account in the finance results, reporting deferred taxes on such adjustments, when applicable.

In 3Q21, the transition to Hyperinflation Accounting in accordance with the IFRS rules resulted in (i) a positive R$ 250.5 million adjustment reported in the finance results; (ii) a negative impact on the Profit of R$ 0.9 million; (iii) a positive impact on the Normalized Profit of R$ 2.8 million; and (iv) no material impact on EPS, as well as on Normalized EPS.

In YTD21, the consequences of the transition were (i) a positive R$ 654.3 million adjustment reported in the finance results; (ii) a negative impact on the Profit of R$ 236.4 million; (iii) a negative impact on the Normalized Profit of R$ 232.8 million; and (iv) negative impact of R$ 0.02 on EPS and negative impact of R$ 0.01 on Normalized EPS.

The 3Q21 results are calculated by deducting from the YTD results the HY results as published. Consequently, LAS and Consolidated 3Q21 and 3Q20 results are impacted by the adjustment of HY results for the cumulative

 
  Page | 15

inflation between June 30 and September 30, as well as by the translation of HY results at the YTD closing exchange rate, of September 30, as follows:

 

LAS - 6M As Reported YTD20 Scope Currency Translation Organic Growth YTD21 % Organic
Net revenue  7,940.3   (1,670.4)  4,661.7   10,931.6 58.7%
COGS (4,104.2)    669.3 (2,136.9) (5,571.8) 52.1%
COGS excl. deprec. & amort. (3,532.0)    562.2 (1,992.6) (4,962.4) 56.4%
Gross profit  3,836.1   (1,001.2)  2,524.8  5,359.8 65.8%
SG&A excl. deprec. & amort. (2,093.5)    468.7 (1,062.1) (2,686.9) 50.7%
SG&A deprec. & amort. (254.7)   43.1 (32.9) (244.6) 12.9%
SG&A total (2,348.2)    511.8 (1,095.0) (2,931.5) 46.6%
Other operating income/(expenses) (65.5)     1.7 71.2   7.4 -108.7%
Normalized EBIT  1,422.4   (487.7)  1,501.0  2,435.7 105.5%
Normalized EBITDA  2,249.2   (637.8)  1,678.3  3,289.7 74.6%
             

 

LAS - 6M Recalculated at YTD Exchange Rates

YTD20 Scope Currency Translation Organic Growth YTD21 % Organic
Net revenue  8,011.9   (1,336.0)  4,748.1   11,424.0 59.3%
COGS (4,137.7)    523.0 (2,172.5) (5,787.2) 52.5%
COGS excl. deprec. & amort. (3,560.0)    436.2 (2,024.2) (5,148.0) 56.9%
Gross profit  3,874.2   (813.0)  2,575.6  5,636.9 66.5%
SG&A excl. deprec. & amort. (2,112.8)    379.7 (1,084.9) (2,818.0) 51.3%
SG&A deprec. & amort. (257.4)   34.8 (34.2) (256.7) 13.3%
SG&A total (2,370.2)    414.5 (1,119.0) (3,074.7) 47.2%
Other operating income/(expenses) (66.5)     0.5 71.6   5.6 -107.7%
Normalized EBIT  1,437.5   (398.0)  1,528.2  2,567.7 106.3%
Normalized EBITDA  2,272.6   (519.7)  1,710.7  3,463.6 75.3%
             

 

LAS - 6M Recalculation Impact in 3Q

YTD20 Scope Currency Translation Organic Growth YTD21 % Organic
Net revenue 71.6    334.4 86.4  492.4  
COGS (33.5)   (146.3) (35.6) (215.4)  
COGS excl. deprec. & amort. (28.0)   (126.1) (31.6) (185.6)  
Gross profit 38.1    188.2 50.8  277.1  
SG&A excl. deprec. & amort. (19.3)   (89.1) (22.8) (131.1)  
SG&A deprec. & amort. (2.7)   (8.3) (1.2) (12.2)  
SG&A total (22.0)   (97.3) (24.0) (143.3)  
Other operating income/(expenses) (1.0)   (1.2)   0.4 (1.8)  
Normalized EBIT 15.2   89.7 27.2  132.0  
Normalized EBITDA 23.4    118.1 32.4  173.9  

 

In the corresponding sections, the impacts above are excluded from organic calculation and are identified separately in the columns labeled “IAS 29 6M Impact”. Organic percentage growth rates for 3Q21 are calculated by considering the “Organic growth” reported in the tables in the applicable sections, over 3Q20 base adjusted for the 6M20 recalculation.

 
  Page | 16

 

 

RECONCILIATION BETWEEN NORMALIZED EBITDA & PROFIT

Both Normalized EBITDA and EBIT are measures used by Ambev’s management to measure the Company’s performance.

Normalized EBITDA is calculated excluding from Profit the following effects: (i) Non-controlling interest; (ii) Income Tax expense; (iii) Share of results of associates; (iv) Net finance results; (v) Exceptional items; and (vi) Depreciation & Amortization.

Normalized EBITDA and EBIT are not accounting measures under accounting practices in Brazil, IFRS or the United States of America (US GAAP) and should not be considered as an alternative to Profit as a measure of operational performance or an alternative to Cash Flow as a measure of liquidity. Normalized EBITDA and EBIT do not have a standard calculation method and Ambev’s definition of Normalized EBITDA and EBIT may not be comparable to that of other companies.

 

 Reconciliation - Profit to EBITDA 3Q20 3Q21 YTD20 YTD21
R$ million
         
Profit - Ambev holders  2,274.8  3,552.5  4,593.4  9,063.7
Non-controlling interest  84.2  160.2  248.2  311.9
Income tax expense  72.1  (590.3)  188.6  279.3
Profit before taxes  2,431.0  3,122.5  5,030.1  9,655.0
Share of results of joint ventures  11.0  19.3  33.9  40.9
Net finance results  1,144.8  876.2  3,475.4  2,217.8
Exceptional items  159.8  80.4  311.8  237.4
Normalized EBIT  3,746.6  4,098.4  8,851.2  12,151.1
Depreciation & amortization - total  1,326.9  1,370.5  3,803.1  3,934.2
Normalized EBITDA  5,073.5  5,468.9  12,654.2  16,085.4

 

 

 
  Page | 17

 

Q3 2021 EARNINGS CONFERENCE CALL

  

Speakers: Jean Jereissati Neto
    Chief Executive Officer
         
    Lucas Machado Lira
    Chief Financial and Investor Relations Officer
         
Language: English and Portuguese (simultaneous translation)
         
Date:   October 28, 2021 (Thursday)
         
Time:   12:30 (Brasília)
    11:30 (New York)
         
         
Phone number: Brazil participants + 55 (11) 3181-8565
    US participants + 1 (844) 204-8942 
    International participants + 1 (412) 717-9627
         
Conference ID: Ambev    

 

Please call 15 minutes prior to the beginning of the conference call.

 

Webcast: The conference call will also be transmitted live through the Internet. Please access the following links:

English: https://webcastlite.mziq.com/cover.html?webcastId=3796f21c-a279-4eb3-bb4b-673be5fa6385

 

Portuguese: https://webcastlite.mziq.com/cover.html?webcastId=ca04fba0-673e-4a20-a2e2-85e1cf8d3eb8

 

For additional information, please contact the Investor Relations team:

Guilherme Yokaichiya Juan M. Paz Matthew Chacon Dowd
     
Guilherme.yokaichiya@ambev.com.br juan.paz@ambev.com.br matthew.chacon@ab-inbev.com

 

ri.ambev.com.br

 
  Page | 18

 

NOTES

This press release segregates the impact of organic changes from those arising from changes in scope or currency translation. Scope changes represent the impact of acquisitions and divestitures, the start up or termination of activities or the transfer of activities between segments, curtailment gains and losses and year-over-year changes in accounting estimates and other assumptions that management does not consider as part of the underlying performance of the business. Organic growth and normalized numbers are presented applying constant year-over-year exchange rates to exclude the impact of the movement of foreign exchange rates.

Unless stated, percentage changes in this press release are both organic and normalized in nature. Whenever used in this document, the term “normalized” refers to performance measures (EBITDA, EBIT, Profit, EPS) before exceptional items adjustments. Exceptional items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are important for the understanding of the underlying sustainable performance of the Company due to their size or nature. Normalized measures are additional measures used by management and should not replace the measures determined in accordance with IFRS as indicators of the Company’s performance. Comparisons, unless otherwise stated, refer to the third quarter of 2020 (3Q20). Values in this release may not add up due to rounding.

Statements contained in this press release may contain information that is forward-looking and reflects management’s current view and estimates of future economic circumstances, industry conditions, Company performance, and finance results. Any statements, expectations, capabilities, plans and assumptions contained in this press release that do not describe historical facts, such as statements regarding the declaration or payment of dividends, the direction of future operations, the implementation of principal operating and financing strategies and capital expenditure plans, the factors or trends affecting financial condition, liquidity or results of operations, are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. There is no guarantee that these results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

 

 

 
  Page | 19

 

Ambev - Segment financial information Brazil CAC LAS Canada Ambev
Organic results Beer NAB Total       Consolidated
  3Q20 3Q21 % 3Q20 3Q21 % 3Q20 3Q21 % 3Q20 3Q21 % 3Q20 3Q21 % 3Q20 3Q21 % 3Q20 3Q21 %
Volume (000 hl) 21,846.9 23,475.4 7.5%   6,602.7   7,248.6 9.8% 28,449.6 30,724.1 8.0%   3,105.2   3,381.9 8.9%   7,858.6   8,780.5 11.7%   2,965.5   2,768.9 -6.6% 42,378.8 45,655.4 7.7%
                                           
R$ million                                          
Net revenue   6,650.5   7,730.8 16.2%   1,034.0   1,265.6 22.4%   7,684.5   8,996.5 17.1%   2,064.8   2,397.0 20.4%   2,956.5   4,195.0 54.5%   2,898.7   2,904.1 -2.4% 15,604.5 18,492.6 20.8%
% of total 42.6% 41.8%   6.6% 6.8%   49.2% 48.6%   13.2% 13.0%   18.9% 22.7%   18.6% 15.7%   100.0% 100.0%  
COGS  (3,295.6)  (4,106.0) 24.6%  (527.2)  (782.3) 48.4%  (3,822.7)  (4,888.3) 27.9%  (901.4)  (1,103.2) 27.3%  (1,569.9)  (2,086.8) 46.7%  (1,129.1)  (1,174.7) 1.4%  (7,423.1)  (9,253.1) 27.7%
% of total 44.4% 44.4%   7.1% 8.5%   51.5% 52.8%   12.1% 11.9%   21.1% 22.6%   15.2% 12.7%   100.0% 100.0%  
Gross profit   3,355.0   3,624.9 8.0%   506.8   483.3 -4.6%   3,861.8   4,108.2 6.4%   1,163.3   1,293.8 15.1%   1,386.6   2,108.2 63.4%   1,769.7   1,729.4 -4.9%   8,181.3   9,239.5 14.6%
% of total 41.0% 39.2%   6.2% 5.2%   47.2% 44.5%   14.2% 14.0%   16.9% 22.8%   21.6% 18.7%   100.0% 100.0%  
SG&A  (1,939.4)  (2,475.1) 27.6%  (339.8)  (391.0) 15.0%  (2,279.3)  (2,866.1) 25.7%  (452.0)  (428.7) 0.4%  (830.7)  (1,106.3) 46.4%  (1,040.8)  (990.7) -7.7%  (4,602.8)  (5,391.8) 19.3%
% of total 42.1% 45.9%   7.4% 7.3%   49.5% 53.2%   9.8% 8.0%   18.0% 20.5%   22.6% 18.4%   100.0% 100.0%  
Other operating income/(expenses)   159.8   178.0 11.4%  68.7  67.9 -1.1%   228.4   245.8 7.6%   (5.8) 5.7 nm (40.0)  13.3 -149.4% (14.6) (14.3) -12.9%   168.0   250.6 52.8%
% of total 95.1% 71.0%   40.9% 27.1%   136.0% 98.1%   -3.5% 2.3%   -23.8% 5.3%   -8.7% -5.7%   100.0% 100.0%  
Normalized EBIT   1,575.3   1,327.7 -15.7%   235.7   160.2 -32.0%   1,810.9   1,488.0 -17.8%   705.5   870.9 26.2%   515.9   1,015.2 107.4%   714.2   724.4 -0.6%   3,746.6   4,098.4 10.6%
% of total 42.0% 32.4%   6.3% 3.9%   48.3% 36.3%   18.8% 21.2%   13.8% 24.8%   19.1% 17.7%   100.0% 100.0%  
Normalized EBITDA   2,208.2   2,020.6 -8.5%   319.1   252.7 -20.8%   2,527.3   2,273.3 -10.0%   902.3   1,006.8 14.7%   803.6   1,331.5 76.4%   840.4   857.4 0.0%   5,073.5   5,468.9 9.4%
% of total 43.5% 36.9%   6.3% 4.6%   49.8% 41.6%   17.8% 18.4%   15.8% 24.3%   16.6% 15.7%   100.0% 100.0%  
                                           
% of net revenue                                          
Net revenue 100.0% 100.0%   100.0% 100.0%   100.0% 100.0%   100.0% 100.0%   100.0% 100.0%   100.0% 100.0%   100.0% 100.0%  
COGS -49.6% -53.1%   -51.0% -61.8%   -49.7% -54.3%   -43.7% -46.0%   -53.1% -49.7%   -39.0% -40.5%   -47.6% -50.0%  
Gross profit 50.4% 46.9%   49.0% 38.2%   50.3% 45.7%   56.3% 54.0%   46.9% 50.3%   61.0% 59.5%   52.4% 50.0%  
SG&A -29.2% -32.0%   -32.9% -30.9%   -29.7% -31.9%   -21.9% -17.9%   -28.1% -26.4%   -35.9% -34.1%   -29.5% -29.2%  
Other operating income/(expenses) 2.4% 2.3%   6.6% 5.4%   3.0% 2.7%   -0.3% 0.2%   -1.4% 0.3%   -0.5% -0.5%   1.1% 1.4%  
Normalized EBIT 23.7% 17.2%   22.8% 12.7%   23.6% 16.5%   34.2% 36.3%   17.5% 24.2%   24.6% 24.9%   24.0% 22.2%  
Normalized EBITDA 33.2% 26.1%   30.9% 20.0%   32.9% 25.3%   43.7% 42.0%   27.2% 31.7%   29.0% 29.5%   32.5% 29.6%  
                                           
Per hectoliter - (R$/hl)                                          
Net revenue   304.4   329.3 8.2%   156.6   174.6 11.5%   270.1   292.8 8.4%   664.9   708.8 10.6%   376.2   477.8 38.3%   977.5   1,048.8 4.5%   368.2   405.0 12.6%
COGS  (150.8)  (174.9) 15.9% (79.8)  (107.9) 35.2%  (134.4)  (159.1) 18.4%  (290.3)  (326.2) 16.9%  (199.8)  (237.7) 31.3%  (380.7)  (424.3) 8.6%  (175.2)  (202.7) 18.5%
Gross profit   153.6   154.4 0.5%  76.8  66.7 -13.1%   135.7   133.7 -1.5%   374.6   382.6 5.7%   176.4   240.1 47.9%   596.8   624.6 1.9%   193.1   202.4 6.9%
SG&A (88.8)  (105.4) 18.8% (51.5) (53.9) 4.8% (80.1) (93.3) 16.4%  (145.6)  (126.8) -7.8%  (105.7)  (126.0) 32.5%  (351.0)  (357.8) -1.1%  (108.6)  (118.1) 11.1%
Other operating income/(expenses) 7.3 7.6 3.7%  10.4 9.4 -10.0% 8.0 8.0 -0.3%   (1.9) 1.7 -192.6%   (5.1) 1.5 -141.8%   (4.9)   (5.1) -6.8% 4.0 5.5 42.3%
Normalized EBIT  72.1  56.6 -21.6%  35.7  22.1 -38.1%  63.7  48.4 -23.9%   227.2   257.5 15.9%  65.7   115.6 87.5%   240.8   261.6 6.4%  88.4  89.8 3.3%
Normalized EBITDA   101.1  86.1 -14.8%  48.3  34.9 -27.9%  88.8  74.0 -16.7%   290.6   297.7 5.3%   102.3   151.6 59.5%   283.4   309.7 7.1%   119.7   119.8 2.1%



 

 
  Page | 20

 

Ambev - Segment financial information Brazil CAC LAS Canada Ambev
Organic results Beer NAB Total       Consolidated
  YTD20 YTD21 % YTD20 YTD21 % YTD20 YTD21 % YTD20 YTD21 % YTD20 YTD21 % YTD20 YTD21 % YTD20 YTD21 %
Volume (000 hl) 58,380.0 65,249.4 11.8% 18,184.2 20,225.0 11.2% 76,564.2 85,474.4 11.6%   7,943.0   9,806.4 23.5% 22,575.7 26,109.4 15.7%   7,773.0   7,602.9 -2.3%  114,855.9  128,993.2 12.3%
                                           
R$ million                                          
Net revenue 17,233.7 21,304.9 23.6%   2,830.6   3,440.3 21.5% 20,064.3 24,745.2 23.3%   4,876.6   7,018.1 37.2%   7,940.3 10,931.6 58.7%   6,941.2   8,148.7 0.5% 39,822.4 50,843.5 28.1%
% of total 43.3% 41.9%   7.1% 6.8%   50.4% 48.7%   12.2% 13.8%   19.9% 21.5%   17.4% 16.0%   100.0% 100.0%  
COGS  (8,270.6)   (10,951.0) 32.4%  (1,483.5)  (2,020.3) 36.2%  (9,754.1)   (12,971.4) 33.0%  (2,239.7)  (3,289.9) 40.1%  (4,104.2)  (5,571.8) 52.1%  (2,770.3)  (3,330.7) 2.9%   (18,868.2)   (25,163.7) 33.6%
% of total 43.8% 43.5%   7.9% 8.0%   51.7% 51.5%   11.9% 13.1%   21.8% 22.1%   14.7% 13.2%   100.0% 100.0%  
Gross profit   8,963.2 10,353.9 15.5%   1,347.1   1,420.0 5.4% 10,310.3 11,773.9 14.2%   2,637.0   3,728.2 34.8%   3,836.1   5,359.8 65.8%   4,170.9   4,818.0 -1.1% 20,954.2 25,679.8 23.2%
% of total 42.8% 40.3%   6.4% 5.5%   49.2% 45.8%   12.6% 14.5%   18.3% 20.9%   19.9% 18.8%   100.0% 100.0%  
SG&A  (5,585.4)  (7,086.3) 26.9%  (972.2)  (1,115.9) 14.8%  (6,557.6)  (8,202.2) 25.1%  (1,131.3)  (1,439.3) 20.9%  (2,348.2)  (2,931.5) 46.6%  (2,470.2)  (2,779.3) -3.9%   (12,507.2)   (15,352.2) 23.0%
% of total 44.7% 46.2%   7.8% 7.3%   52.4% 53.4%   9.0% 9.4%   18.8% 19.1%   19.8% 18.1%   100.0% 100.0%  
Other operating income/(expenses)   407.8   1,519.8 15.6%   124.0   307.6 10.4%   531.8   1,827.4 14.4% (18.9) 9.8 -148.5% (65.5) 7.4 -108.7% (43.2) (21.0) -58.1%   404.2   1,823.5 49.7%
% of total 100.9% 83.3%   30.7% 16.9%   131.6% 100.2%   -4.7% 0.5%   -16.2% 0.4%   -10.7% -1.2%   100.0% 100.0%  
Normalized EBIT   3,785.6   4,787.4 -1.2%   498.9   611.6 -11.6%   4,284.5   5,399.0 -2.4%   1,486.8   2,298.7 47.8%   1,422.4   2,435.7 105.5%   1,657.5   2,017.7 4.6%   8,851.2 12,151.1 24.7%
% of total 42.8% 39.4%   5.6% 5.0%   48.4% 44.4%   16.8% 18.9%   16.1% 20.0%   18.7% 16.6%   100.0% 100.0%  
Normalized EBITDA   5,673.0   6,726.1 0.1%   759.8   875.7 -7.2%   6,432.7   7,601.8 -0.8%   1,978.7   2,775.2 34.0%   2,249.2   3,289.7 74.6%   1,993.6   2,418.6 4.2% 12,654.2 16,085.4 18.8%
% of total 44.8% 41.8%   6.0% 5.4%   50.8% 47.3%   15.6% 17.3%   17.8% 20.5%   15.8% 15.0%   100.0% 100.0%  
                                           
% of net revenue                                          
Net revenue 100.0% 100.0%   100.0% 100.0%   100.0% 100.0%   100.0% 100.0%   100.0% 100.0%   100.0% 100.0%   100.0% 100.0%  
COGS -48.0% -51.4%   -52.4% -58.7%   -48.6% -52.4%   -45.9% -46.9%   -51.7% -51.0%   -39.9% -40.9%   -47.4% -49.5%  
Gross profit 52.0% 48.6%   47.6% 41.3%   51.4% 47.6%   54.1% 53.1%   48.3% 49.0%   60.1% 59.1%   52.6% 50.5%  
SG&A -32.4% -33.3%   -34.3% -32.4%   -32.7% -33.1%   -23.2% -20.5%   -29.6% -26.8%   -35.6% -34.1%   -31.4% -30.2%  
Other operating income/(expenses) 2.4% 7.1%   4.4% 8.9%   2.7% 7.4%   -0.4% 0.1%   -0.8% 0.1%   -0.6% -0.3%   1.0% 3.6%  
Normalized EBIT 22.0% 22.5%   17.6% 17.8%   21.4% 21.8%   30.5% 32.8%   17.9% 22.3%   23.9% 24.8%   22.2% 23.9%  
Normalized EBITDA 32.9% 31.6%   26.8% 25.5%   32.1% 30.7%   40.6% 39.5%   28.3% 30.1%   28.7% 29.7%   31.8% 31.6%  
                                           
Per hectoliter - (R$/hl)                                          
Net revenue   295.2   326.5 10.6%   155.7   170.1 9.3%   262.1   289.5 10.5%   614.0   715.7 11.2%   351.7   418.7 37.2%   893.0   1,071.8 2.8%   346.7   394.2 14.1%
COGS  (141.7)  (167.8) 18.5% (81.6) (99.9) 22.4%  (127.4)  (151.8) 19.1%  (282.0)  (335.5) 13.5%  (181.8)  (213.4) 31.5%  (356.4)  (438.1) 5.3%  (164.3)  (195.1) 18.9%
Gross profit   153.5   158.7 3.4%  74.1  70.2 -5.2%   134.7   137.7 2.3%   332.0   380.2 9.2%   169.9   205.3 43.4%   536.6   633.7 1.2%   182.4   199.1 9.7%
SG&A (95.7)  (108.6) 13.5% (53.5) (55.2) 3.2% (85.6) (96.0) 12.0%  (142.4)  (146.8) -2.1%  (104.0)  (112.3) 26.8%  (317.8)  (365.6) -1.6%  (108.9)  (119.0) 9.5%
Other operating income/(expenses) 7.0  23.3 -23.7% 6.8  15.2 -14.7% 6.9  21.4 -21.5%   (2.4) 1.0 -139.3%   (2.9) 0.3 -107.5%   (5.6)   (2.8) -57.1% 3.5  14.1 0.2%
Normalized EBIT  64.8  73.4 -14.5%  27.4  30.2 -24.0%  56.0  63.2 -15.6%   187.2   234.4 19.7%  63.0  93.3 77.7%   213.2   265.4 7.0%  77.1  94.2 9.5%
Normalized EBITDA  97.2   103.1 -12.4%  41.8  43.3 -18.8%  84.0  88.9 -13.1%   249.1   283.0 8.5%  99.6   126.0 51.0%   256.5   318.1 6.6%   110.2   124.7 4.8%

 

 
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CONSOLIDATED BALANCE SHEET    
R$ million December 31, 2020 September 30, 2021
     
Assets    
Current assets    
Cash and cash equivalents 17,090.3 17,956.2
Investment securities   1,700.0   2,044.6
Derivative financial instruments   505.9   972.9
Trade receivables   4,303.1   4,512.6
Inventories   7,605.9   9,511.2
Income tax and social contributions receivables   1,759.2   730.5
Other tax receivables   1,527.9   1,295.4
Other assets   850.1   1,173.7
  35,342.6 38,197.1
     
Non-current assets    
Investment securities   213.9   198.3
Derivative financial instruments 3.4 0.1
Income tax and social contributions receivable   4,495.0   3,854.8
Deferred tax assets   4,560.8   5,920.4
Tax receivables   5,695.8   7,501.5
Other assets   2,141.6   2,029.1
Employee benefits  33.6  36.2
Investments in joint ventures   337.4   278.4
Property, plant and equipment 24,768.4 27,231.9
Intangible   7,580.6   8,205.1
Goodwill 40,023.5 41,680.3
  89,854.0 96,936.2
     
Total assets  125,196.6  135,133.3
     
Equity and liabilities    
Current liabilities    
Trade payables 19,339.2 19,413.6
Derivative financial instruments   329.8   336.0
Interest-bearing loans and borrowings   2,738.8   889.3
Bank overdrafts      211.6
Payroll and social security payables   925.5   2,200.0
Dividends and interest on shareholders’ equity payables   2,454.7   1,360.8
Income tax and social contribution payables   1,167.3   1,233.2
Taxes and contributions payables   4,549.5   3,109.6
Other liabilities   1,848.1   2,176.6
Provisions   124.9   176.8
  33,478.0 31,107.3
     
Non-current liabilities    
Trade payables   655.9   628.0
Derivative financial instruments  0.02 0.1
Interest-bearing loans and borrowings   2,053.5   2,138.5
Deferred tax liabilities   3,043.4   2,756.7
Income tax and social contribution payable   1,912.7   1,769.0
Taxes and contributions payable   684.3   689.0
Put option granted on subsidiary and other liabilities   4,226.7   3,764.9
Provisions   447.1   554.2
Employee benefits   3,544.0   3,560.8
  16,567.5 15,861.1
     
Total liabilities 50,045.5 46,968.5
     
Equity    
Issued capital 57,899.1 58,006.3
Reserves 80,905.6 81,061.3
Comprehensive income  (64,989.0)  (62,882.3)
Retained earnings    10,586.0
Equity attributable to equity holders of Ambev 73,815.6 86,771.2
Non-controlling interests   1,335.5   1,393.6
Total Equity 75,151.1 88,164.8
     
Total equity and liabilities  125,196.6  135,133.3

 

 

 

 

 
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CONSOLIDATED INCOME STATEMENT 3Q20 3Q21 YTD20 YTD21
R$ million
         
Net revenue   15,604.5   18,492.6 39,822.4 50,843.5
Cost of goods sold   (7,423.1)   (9,253.1)  (18,868.2)  (25,163.7)
Gross profit  8,181.3  9,239.5 20,954.2 25,679.8
         
Distribution expenses   (2,307.7)   (2,533.4) (6,002.1) (7,023.8)
Sales and marketing expenses   (1,591.0)   (1,741.8) (4,453.7) (4,834.9)
Administrative expenses   (704.1)   (1,116.6) (2,051.4) (3,493.5)
Other operating income/(expenses)  168.0  250.6   404.2   1,823.5
         
Normalized EBIT  3,746.6  4,098.4   8,851.2 12,151.1
         
Exceptional items   (159.8)  (80.4) (311.8) (237.4)
         
Income from operations (EBIT)  3,586.8  4,018.0   8,539.4 11,913.7
         
Net finance results   (1,144.8)   (876.2) (3,475.4) (2,217.8)
Share of results of joint ventures  (11.0)  (19.3)   (33.9)   (40.9)
         
Profit before income tax  2,431.0  3,122.5   5,030.1   9,655.0
         
Income tax expense  (72.1)  590.3  (188.6)  (279.3)
         
Profit  2,359.0  3,712.7  4,841.5  9,375.6
Equity holders of Ambev  2,274.8  3,552.5  4,593.4  9,063.7
Non-controlling interest  84.2  160.2