Ambev Reports 2020 First Quarter Results Under IFRS
May 07 2020 - 3:01AM
Ambev S.A. [B3: ABEV3; NYSE: ABEV] announces its results for the
first quarter of 2020. 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 three-month period ended March 31, 2020 filed
with the CVM and submitted to the U.S. Securities and Exchange
Commission (“SEC”).
OPERATING AND FINANCIAL
HIGHLIGHTS
Net revenue: Net revenue was
down 1.6%, with volume declining by 5.6% and growth in net revenue
per hectoliter (NR/hl) of 4.3%. Net revenue was down in Brazil
(-9.6%) and Central America and the Caribbean (CAC) (-10.2%), while
up in Latin America South (LAS) (+22.4%) and Canada (+3.3%). In
Brazil, volume was down 9.1% and NR/hl was down 0.5%. In CAC,
volume declined 13.5% and NR/hl grew by 3.8%. In LAS, volume was up
6.4% and NR/hl rose by 15.0%. In Canada, volume and NR/hl increased
by 3.1% and 0.1%, respectively.
Cost of goods sold (COGS): COGS
and cash COGS (excluding depreciation and amortization) were up
9.3% and 10.2%, respectively. On a per hectoliter basis, COGS grew
by 15.8% while cash COGS was up 16.7%, mainly due to transactional
currency headwinds and inflationary pressures in Argentina.
Selling, general & administrative
(SG&A) expenses: SG&A and cash SG&A (excluding
depreciation and amortization) were up 8.5% and 6.6%, respectively,
below our weighted average inflation (approximately 9.3%). The
increase was mainly driven by inflationary pressure in Argentina
and front-loaded sales and marketing investments in Brazil.
EBITDA, gross margin and EBITDA
margin: EBITDA reached R$ 4,232.5 million, which
corresponds to an organic reduction of 18.1%, with a gross margin
of 55.2% (-450bps) and EBITDA margin of 33.6% (-680bps). The EBITDA
margin was impacted by a higher cost of sales resulting from
transactional currency headwinds, higher SG&A resulting from
the phasing of sales and marketing expenses in Brazil and
operational de-leverage from lower volumes.
Normalized profit and EPS:
Normalized profit was R$ 1,227.8 million, 55.6% lower than in 1Q19,
due to lower EBITDA and higher financial expenses. Normalized EPS
in the quarter was R$ 0.07 (-58.6%).
Cash generation and CAPEX: Cash
flow from operating activities was R$ 1,544.1 million (-25.8%) and
CAPEX reached R$ 1,346.3 million (+146.6%).
Financial highlights -
Ambev consolidated |
1Q19 |
1Q20 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
41,296.4 |
|
39,011.5 |
|
-5.5% |
|
-5.6% |
|
Net revenue |
12,640.1 |
|
12,602.6 |
|
-0.3% |
|
-1.6% |
|
Gross profit |
7,532.4 |
|
6,959.4 |
|
-7.6% |
|
-8.9% |
|
% Gross margin |
59.6% |
|
55.2% |
|
-440 bps |
|
-450 bps |
|
Normalized
EBITDA |
5,120.7 |
|
4,232.5 |
|
-17.3% |
|
-18.1% |
|
% Normalized EBITDA margin |
40.5% |
|
33.6% |
|
-690 bps |
|
-680 bps |
|
|
|
|
|
|
Profit |
2,749.1 |
|
1,211.3 |
|
-55.9% |
|
|
Normalized
profit |
2,762.4 |
|
1,227.8 |
|
-55.6% |
|
|
EPS
(R$/shares) |
0.17 |
|
0.07 |
|
-59.0% |
|
|
Normalized EPS (R$/shares) |
0.17 |
|
0.07 |
|
-58.6% |
|
|
Note: Earnings per share
calculation is based on outstanding shares (total existing shares
excluding shares held in treasury).
Ambev S.A.Investor Relations
DepartmentContact e-mail:
ir@ambev.com.br
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