SÃO PAULO, July 27,
2017 /PRNewswire/ – Ambev S.A. [BOVESPA: ABEV3; NYSE: ABEV]
announces today its results for the 2017 second quarter. The
following operating and financial information, unless otherwise
indicated, is presented in nominal Reais and prepared
according to International Financial Reporting Standards (IFRS),
and should be read together with our quarterly financial
information for the six-month period ended June 30th, 2017 filed with the CVM and
submitted to the SEC.
Operating and Financial Highlights
Top line performance: Top line was up 4.8% in 2Q17,
driven by growth in all our international operations: Latin America
South (LAS) (+36.2%), Central
America and the Caribbean
(CAC) (+6.9%) and Canada (+1.4%),
partially impacted by Brazil
(-4.1%). In Brazil, volumes
declined by 4.7%, while NR/hl was up 0.7%. In CAC, organic volumes
were up 1.6%, with a NR/hl growth of 4.2%, while reported volumes
increased by 26.2% as a result of the swap of assets carried out
with ABI and our operations in Panama. In LAS, volumes grew by a solid 12.2%
and NR/hl was up 21.4%. In Canada,
volumes were slightly down (-0.4%), while NR/hl grew by 1.8%.
Cost of Goods Sold (COGS): Our COGS increased by 10.6% in
the quarter and, on a per hectoliter basis, by 11.6%. Cash COGS
(excluding depreciation and amortization) grew by 11.2% while, on a
per hectoliter basis, by 12.2%, mainly due to inflationary
pressures and unfavorable FX in Brazil and LAS.
Selling, General & Administrative (SG&A)
expenses: SG&A was up 1.3% in 2Q17 while cash SG&A
(excluding depreciation and amortization) up 1.7%, below our
weighted average inflation (around 5.1%), due to efficiency gains
in sales & marketing and cost savings in administrative
expenses.
EBITDA, Gross margin and EBITDA margin: Normalized EBITDA
reached R$ 3,943.3 million (-0.7%) in
2Q17, with gross margin of 60.6% (-200bps) and EBITDA margin of
38.4% (-210bps).
Normalized Net Profit and EPS: Normalized Net Profit was
R$ 2,141.5 million in 2Q17, 2.4%
lower than in 2Q16, as the EBITDA organic decline and the negative
impact of currency translation due to the appreciation of the
Brazilian Real were partially offset by the reduction of net
financial expenses. Normalized EPS in the quarter was R$ 0.13.
Cash Generation and CAPEX: Cash generated from operating
activities in 2Q17 was 2,424.6 (+16.5%) while CAPEX reached 751
million (-34.8%). Year to date, cash generated from operating
activities totaled R$ 4,409.1
million, compared to a negative balance of R$ 132.9 million in the same period of 2016.
CAPEX year to date is R$ 1.3 billion
(-29.5%).
Pay-out and Financial discipline: Year to date, we have
paid/announced R$ 3.6 billion in
dividends. As of June 30th, 2017, our
net cash position was R$ 3,821.4
million.
Financial
highlights - Ambev consolidated
|
|
|
%
As
|
%
|
|
|
%
As
|
%
|
R$
million
|
2Q16
|
2Q17
|
Reported
|
Organic
|
YTD16
|
YTD17
|
Reported
|
Organic
|
Total
volumes
|
35.667,8
|
35.660,3
|
0,0%
|
-1,1%
|
75.625,1
|
76.965,4
|
1,8%
|
0,8%
|
Net sales
|
10.377,2
|
10.268,0
|
-1,1%
|
4,8%
|
21.942,3
|
21.509,8
|
-2,0%
|
6,5%
|
Gross
profit
|
6.482,6
|
6.219,8
|
-4,1%
|
1,4%
|
14.087,4
|
12.938,4
|
-8,2%
|
-0,2%
|
Gross
margin
|
62,5%
|
60,6%
|
-190 bps
|
-200 bps
|
64,2%
|
60,2%
|
-400 bps
|
-410 bps
|
Normalized
EBITDA
|
4.204,6
|
3.943,3
|
-6,2%
|
-0,7%
|
9.469,0
|
8.299,5
|
-12,4%
|
-4,6%
|
Normalized EBITDA
margin
|
40,5%
|
38,4%
|
-210 bps
|
-210 bps
|
43,2%
|
38,6%
|
-460 bps
|
-450 bps
|
Profit
|
2.172,5
|
2.124,8
|
-2,2%
|
|
5.066,5
|
4.414,7
|
-12,9%
|
|
Normalized
Profit
|
2.194,7
|
2.141,5
|
-2,4%
|
|
5.095,0
|
4.457,5
|
-12,5%
|
|
EPS
(R$/shares)
|
0,13
|
0,13
|
-1,7%
|
|
0,31
|
0,27
|
-12,5%
|
|
Normalized
EPS
|
0,13
|
0,13
|
-1,7%
|
|
0,31
|
0,27
|
-12,1%
|
|
Note: Earnings per share calculation is based on
outstanding shares (total existing shares excluding shares held in
treasury).
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. 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
special items adjustments. Special 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 first quarter of 2016 (1Q16). Values
in this release may not add up due to rounding.
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SOURCE Ambev S.A.