Brazil's Ambev posts higher Q4 profit but expects volatility ahead

Ambev SA

26/02/2025 11:36

SAO PAULO, Feb 26 (Reuters) - Brazilian brewer Ambev ABEV3.SA on Wednesday reported a 7.5% increase in its fourth-quarter adjusted net profit despite a decline in total volumes, and said that volatility will "remain a reality" in 2025.

WHY IT'S IMPORTANT

Ambev is one of Brazil's biggest firms and has large operations in the Americas. It is a subsidiary of Anheuser-Busch InBev ABI.BR, the world's largest brewer by volume, which reported group results earlier in the day.

BY THE NUMBERS

Ambev posted an adjusted net profit of 5.02 billion reais ($874.63 million) in the October-December period, it said in a securities filing, a 7.5% year-on-year rise driven by higher core earnings and better financial results.

Total volumes, which declined 3.2% in the period, were affected by softer market conditions in Argentina and adverse weather in Brazil. Organic net revenue was still up 4.2% to 27.04 billion reais, with growth in most business units.

2025 OUTLOOK

Assuming current foreign exchange levels and commodity prices, Ambev said it expects the cash cost of goods sold per hectoliter in its key Brazil Beer segment to grow between 5.5% and 8.5% this year.

TOP QUOTES

"In 2025, volatility will remain a reality and we expect to face more input cost pressure than in 2024," Ambev said in its statement.

"Nonetheless, we will continue to work to find opportunities and enhance efficiency, pursuing our ambition of expanding consolidated margins."

($1 = 5.7396 reais)

 (Reporting by Gabriel Araujo; Editing by Rachna Uppal)

 ((Gabriel.Araujo2@thomsonreuters.com; +55 11 5047-3352;))