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 August, 2023
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____
Page | 1 |
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AMBEV REPORTS 2023 SECOND QUARTER RESULTS1
“We delivered another quarter of margin expansion driven
by consistent net revenue growth and lowering cost pressures.” – Jean Jereissati, CEO
Total Volume (organic)
-2.2% vs LY
Volume performance in Brazil (Beer -2.5% and NAB -2.2%)
was mostly impacted by a soft industry and lapping 2Q22 comps. Within international operations, positive volumes (+0.6%) in Latin America
South (“LAS”) – despite a continued challenging macroeconomic environment in Argentina – were more than offset
by Central America and the Caribbean (“CAC”) (-2.8%) and Canada (-6.2%). |
|
Net Revenue (organic)
+20.0% vs LY
Top line performance was driven by net revenue per hectoliter
(“NR/hl”) growth of 22.8%. Net revenue grew in most of our business units: LAS2
+82.1%, Brazil Beer +10.1%, Brazil NAB +7.5% and CAC +4.8%, while in Canada it was flat (0.0%). |
|
|
|
Normalized EBITDA (organic)
+34.2% vs LY
Normalized EBITDA grew in all our business units: LAS +109.8%,
Brazil Beer +29.7%, Brazil NAB +24.9%, CAC +7.9% and Canada +4.1%. Growth was driven by top line performance coupled with lower Cash COGS/hl
and Cash SG&A growth (given lower FX and commodities prices, and overall efficiencies), leading to 300 bps EBITDA margin expansion.
|
|
Normalized Profit
R$ 2,681.0 million
Normalized Profit decreased by 13.1% compared to R$ 3,085.8
million in 2Q22. Last year’s Normalized Profit was positively impacted by tax credits one-off in Brazil of R$ 1,233.7 million. Absent
such tax credits one-off, Normalized Profit would have grown by 18.0%. |
|
|
|
Cash flow from operating activities
R$ 3,415.7 million
Cash flow from operating activities increased by 55.1%
compared to R$ 2,202.2 million in 2Q22 due to better working capital cycle driven mostly by inventories reduction (mainly in packaging
and raw materials) and receivables improvement (given lower tax credits recognition in Brazil and lower volumes in CAC and Canada). |
|
Sustainability
As part of our productive inclusion program “Bora”,
we started to offer free initiation training in the service market for bars and restaurants enabling more people to enter the job market.
We also launched Fundo Bora Cultura Preta aiming at support black entrepreneurship. |
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 twelve-month period ended June 30, 2023, 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 16).
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ambev.com.br | | Press Release – August 3, 2023 |
Page | 2 |
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MANAGEMENT
COMMENTS
Another quarter of double-digit top-line
and bottom-line growth, with EBITDA margin expanding in all our reporting business units
Our top line performance remained resilient and cost pressures
continued to decelerate leading to bottom-line growth and Normalized EBITDA margin expansion in all our reporting business units this
quarter. Although volumes were impacted by softer industries in some of our main markets, net revenue increased by 20.0% driven by a solid
NR/hl performance (+22.8%) coupled with operational leverage, resulting in Normalized EBITDA growth of 34.2%. Gross margin expanded 170
bps and Normalized EBITDA margin expanded 300 bps.
Commercial momentum continued to be led by Brazil. Several
of our brands were awarded with 13 Lions at Cannes Festival of Creativity (Brahma, Budweiser, Stella Artois, Guaraná Antarctica,
and Zé Delivery), and the health of our focus super premium and premium beer brands and of our NAB brands improved once again.
In Beer, our super premium and premium brands grew volumes in the mid-thirties, with market share gains in the segment, according to our
estimates. Overall volumes, however, dropped by 2.5% (-2.5% in Beer and -2.2% in NAB) in the context of declining beer and soft drinks
industries and lapping a strong 2Q22 performance that was fueled by the relaxation of COVID-19 restrictions.
As for our international operations, volume growth (+0.6%)
in LAS was driven by a positive performance in Chile, Paraguay, Bolivia and Argentina Beer more than offsetting a decline in Argentina
NAB volumes. Our brands in Argentina were also awarded at Cannes with Lions for Quilmes and Stella Artois. In CAC, sequential recovery
continued despite the 2.8% volume decline as we see main operational indicators consistent improvement. And in Canada volumes declined
by 6.2% due to a soft industry.
NR/hl performance was driven by disciplined execution of our
revenue management strategy across markets. In Brazil, NR/hl increased by 12.4% (+12.9% in Beer and +10.0% in NAB) given 2022 pricing
carry over, revenue management initiatives, and a positive brand mix contribution. In our international operations, NR/hl grew by 81.1%
in LAS (driven mostly by revenue management initiatives in Argentina), 7.7% in CAC (mainly due to revenue management initiatives and a
positive mix driven by the recovery of the Dominican Republic), and 6.6% in Canada (also helped by positive brand and pack mix).
Cash COGS/hl continued to decelerate in many of our markets
since aluminum and BRL became greater tailwinds given the timing of our hedges, resulting in a 14.1% Cash COGS consolidated growth. Brazil
Beer Cash COGS/hl (excluding non-Ambev marketplace products) increased by 4.6% this quarter. Given lower inflation and unhedged commodities
prices (such as barley and energy) coupled with additional efficiencies across our operations, we currently expect Brazil Beer Cash COGS/hl
(excluding non-Ambev marketplace products) to increase between 2.5-5.5% in the full year. In Brazil NAB Cash COGS/hl (excluding non-Ambev
marketplace products) increased by 5.1%, in LAS +66.2%, in CAC +6.7%, and in Canada +8.8%.
Consolidated Cash SG&A also grew at a lower pace (+18.6%)
as the continued investments in our brands were partially offset by less pressure in distribution expenses (given diesel prices) and efficiencies
in administrative expenses. In Brazil Cash SG&A increased by 8.4% (+7.0% in Beer and +16.3% in NAB), in LAS +81.8%, in CAC +5.9%,
and in Canada -6.2%.
As a result, all our reporting business units delivered Normalized
EBITDA growth, with Normalized EBITDA margin expansion in the quarter: +29.0% in Brazil (+29.7% in Beer and +24.9% in NAB), with a 380
bps expansion (400 bps in Beer and 310 bps in NAB); +109.8% in LAS, with a 380 bps expansion; +7.9% in CAC, with a 100 bps expansion;
and +4.1% in Canada, with a 120 bps expansion. Furthermore, gross margin also expanded in all regions (290 bps in Brasil – 250 bps
in Beer and 490 bps in NAB –, 160 bps in LAS and 100 bps in CAC) except for Canada, which contracted by 70 bps.
As we move into the second half of the year, we remain focused
on delivering consistent and continuous improvement in terms of growth and profitability despite the short-term volatility in many of
our markets. In addition, we will continue to pursue our ambition of delivering in 2023 better organic Normalized EBITDA growth than the
17.1% growth we delivered in 2022, while also going back to gross margin and Normalized EBITDA margin expansion.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 3 |
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Financial highlights - Ambev consolidated |
2Q22 |
2Q23 |
% As Reported |
% Organic |
YTD22 |
YTD23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
42,241.8 |
41,302.1 |
-2.2% |
-2.2% |
87,324.1 |
86,223.3 |
-1.3% |
-1.3% |
Net revenue |
17,989.0 |
18,898.1 |
5.1% |
20.0% |
36,428.1 |
39,429.9 |
8.2% |
23.3% |
Gross profit |
8,614.7 |
9,262.5 |
7.5% |
24.5% |
17,639.4 |
19,662.6 |
11.5% |
29.3% |
% Gross margin |
47.9% |
49.0% |
110 bps |
170 bps |
48.4% |
49.9% |
150 bps |
230 bps |
Normalized EBITDA |
5,538.1 |
5,275.2 |
-4.7% |
34.2% |
11,061.0 |
11,719.6 |
6.0% |
37.4% |
% Normalized EBITDA margin |
30.8% |
27.9% |
-290 bps |
300 bps |
30.4% |
29.7% |
-70 bps |
310 bps |
|
|
|
|
|
|
|
|
|
Profit |
3,064.0 |
2,597.8 |
-15.2% |
|
6,592.9 |
6,417.0 |
-2.7% |
|
Normalized profit |
3,085.8 |
2,681.0 |
-13.1% |
|
6,637.4 |
6,520.7 |
-1.8% |
|
EPS (R$/shares) |
0.19 |
0.16 |
-15.8% |
|
0.41 |
0.39 |
-2.8% |
|
Normalized EPS (R$/shares) |
0.19 |
0.16 |
-13.6% |
|
0.41 |
0.40 |
-1.9% |
|
Ambev as a platform
During
the quarter we remained focused on executing and delivering consistent results in each of the five pillars of our strategy:
Sustainability
Our CEO was appointed as spokesman for the Sustainable Development
Goal (SDG) 8 (decent work and economic growth) within the Brazilian Network of the United Nations Global Compact (UNGC), aiming to inspire
other leaders in favor of inclusive and sustainable economic growth, full and productive employment, and decent work for all.
On the climate action journey, while we are working on validating
new carbon neutral breweries, we have also developed other initiatives aiming at reducing carbon emissions throughout our supply chain.
In this sense, in order to reduce the footprint of coolers in our POCs, we have been refurbishing the current equipment into more ecological
coolers, or even replacing such equipment by new ecological coolers. This initiative already impacted over 46 thousand POCs, reducing
over 3.7 thousand tons of CO2 emission through material reuse.
As part of “Bora”, our productive inclusion program,
we started to offer free initiation training in the service market of bars and restaurant through an initiative of Beer Academy together
with Superior School of Beer and Malt (ESCM) and the Ceres Instituto, aiming at enabling more people to enter the job market.
Also, we launched Fundo Bora Cultura Preta aiming at boosting
black entrepreneurs and their projects in culture and entertainment with financial assistance and mentoring. The total amount of R$ 7.0
million will be allocated this initiative, either through financial incentive or through corporate sponsorship.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 4 |
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In May, we held “Learn for Endeavoring”, an entrepreneurship
themed month for POCs owners via our B2B digital platform BEES, in partnership with Brazilian Association of Bars and Restaurants (Abrasel)
and the Brazilian Service of Support for Micro and Small Enterprises (Sebrae), to foster and boost the entrepreneurial knowledge
of our small and medium-sized customers by offering exclusive and special contents on financial and managing tools and solutions for their
businesses. This program is now broadly available to all our customers and has already impacted over 13 thousand people.
As for our smart drinking initiatives, we launched Flow Voice,
an artificial intelligence solution that enables alcohol consumption identification through voice, which will support our moderation efforts,
potentially increasing road safety and also in public spaces. The innovation was developed by our Smart Drinking Lab, in partnership with
the Metatimbre AI startup, accelerated in 2021 through Ambev’s Social Lab program and launched in May during the Brazilian Web Summit.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 5 |
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KEY
MARKETS PERFORMANCES
Brazil Beer: super premium and premium
brands outperformed once again, delivering market share gains, according to our estimates
| · | Operating performance: volumes were
down 2.5% led by a declining industry and in the face of a challenging comparable given 2Q22 strong performance that benefited from post-COVID
recovery (+8.5% versus 2Q21). The disciplined execution of our revenue management strategy coupled with a positive brand mix continued
to drive NR/hl up (+12.9%), resulting in a net revenue growth of 10.1%. Cash COGS/hl increased by 6.1% (+4.6% excluding the sale of non-Ambev
products on the marketplace), mostly driven by overall non-commodity price inflation, partially offset by FX and commodities tailwinds.
Normalized EBITDA was up 29.7%, with Normalized EBITDA margin expansion of 400 bps, helped by efficiencies on Cash SG&A expenses.
In HY23, net revenue was up 12.3% (volumes -0.9% and NR/hl +13.3%), and Normalized EBITDA rose by 26.7%, with Normalized EBITDA margin
expansion of 320 bps. |
| · | Commercial highlights: despite industry performance, our market
share improved sequentially according to our estimates. Consistent investment behind our brands continued to deliver significant results
to our super premium and premium segment: health of focus brands improved sequentially and versus last year, and volume grew in the mid-thirties
once again, led by Original, Spaten, Corona and Stella Artois, with market share growth year-over-year and on a sequential basis, according
to our estimates. Compared to 2019, our premium and above volumes grew 180% in HY23. In the core plus segment, Budweiser increased volumes
in the mid-teens and Budweiser Zero continued expanding its distribution. As to our B2B digital platform, BEES Marketplace GMV grew sequentially
and by 64% versus 2Q22, while we continued to expand number of SKUs per POC. Zé Delivery reached 4.6 million MAU this quarter (+12%
versus 2Q22), and its Average Order Value (AOV) was up 14%. |
Brazil Beer[3] |
2Q22 |
Scope |
Currency Translation |
Organic Growth |
2Q23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
21,944.0 |
- |
|
(557.2) |
21,386.8 |
-2.5% |
-2.5% |
|
|
|
|
|
|
|
|
Net revenue |
7,912.9 |
- |
- |
797.8 |
8,710.7 |
10.1% |
10.1% |
Net revenue/hl (R$) |
360.6 |
- |
- |
46.7 |
407.3 |
12.9% |
12.9% |
COGS |
(4,319.5) |
- |
- |
(221.9) |
(4,541.4) |
5.1% |
5.1% |
COGS/hl (R$) |
(196.8) |
- |
- |
(15.5) |
(212.3) |
7.9% |
7.9% |
COGS excl. deprec. & amort. |
(3,910.8) |
- |
- |
(134.1) |
(4,044.8) |
3.4% |
3.4% |
COGS/hl excl. deprec. & amort. (R$) |
(178.2) |
- |
- |
(10.9) |
(189.1) |
6.1% |
6.1% |
Gross profit |
3,593.4 |
- |
- |
575.8 |
4,169.3 |
16.0% |
16.0% |
% Gross margin |
45.4% |
|
|
|
47.9% |
250 bps |
250 bps |
SG&A excl. deprec. & amort. |
(2,446.4) |
- |
- |
(171.5) |
(2,618.0) |
7.0% |
7.0% |
SG&A deprec. & amort. |
(301.1) |
- |
- |
(134.5) |
(435.5) |
44.7% |
44.7% |
SG&A total |
(2,747.5) |
- |
- |
(306.0) |
(3,053.5) |
11.1% |
11.1% |
Other operating income/(expenses) |
1,018.3 |
(798.0) |
- |
34.5 |
254.7 |
-75.0% |
15.7% |
Normalized Operating Profit |
1,864.2 |
(798.0) |
- |
304.3 |
1,370.5 |
-26.5% |
28.5% |
% Normalized Operating margin |
23.6% |
0.0% |
0.0% |
0.0% |
15.7% |
-790 bps |
220 bps |
Normalized EBITDA |
2,574.0 |
(798.0) |
- |
526.6 |
2,302.6 |
-10.5% |
29.7% |
% Normalized EBITDA margin |
32.5% |
|
|
|
26.4% |
-610 bps |
400 bps |
Brazil Beer |
YTD22 |
Scope |
Currency Translation |
Organic Growth |
YTD23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
43,955.4 |
- |
|
(377.2) |
43,578.2 |
-0.9% |
-0.9% |
|
|
|
|
|
|
|
|
Net revenue |
16,013.1 |
- |
- |
1,967.7 |
17,980.8 |
12.3% |
12.3% |
Net revenue/hl (R$) |
364.3 |
- |
- |
48.3 |
412.6 |
13.3% |
13.3% |
COGS |
(8,511.6) |
- |
- |
(821.2) |
(9,332.9) |
9.6% |
9.6% |
COGS/hl (R$) |
(193.6) |
- |
- |
(20.5) |
(214.2) |
10.6% |
10.6% |
COGS excl. deprec. & amort. |
(7,709.1) |
- |
- |
(684.2) |
(8,393.3) |
8.9% |
8.9% |
COGS/hl excl. deprec. & amort. (R$) |
(175.4) |
- |
- |
(17.2) |
(192.6) |
9.8% |
9.8% |
Gross profit |
7,501.5 |
- |
- |
1,146.5 |
8,647.9 |
15.3% |
15.3% |
% Gross margin |
46.8% |
|
|
|
48.1% |
130 bps |
130 bps |
SG&A excl. deprec. & amort. |
(4,665.7) |
- |
- |
(378.7) |
(5,044.3) |
8.1% |
8.1% |
SG&A deprec. & amort. |
(593.2) |
- |
- |
(214.6) |
(807.7) |
36.2% |
36.2% |
SG&A total |
(5,258.8) |
- |
- |
(593.2) |
(5,852.1) |
11.3% |
11.3% |
Other operating income/(expenses) |
1,300.4 |
(875.8) |
- |
179.0 |
603.5 |
-53.6% |
42.2% |
Normalized Operating Profit |
3,543.0 |
(875.8) |
- |
732.2 |
3,399.4 |
-4.1% |
27.5% |
% Normalized Operating margin |
22.1% |
0.0% |
0.0% |
0.0% |
18.9% |
-320 bps |
220 bps |
Normalized EBITDA |
4,938.7 |
(875.8) |
- |
1,083.8 |
5,146.7 |
4.2% |
26.7% |
% Normalized EBITDA margin |
30.8% |
|
|
|
28.6% |
-220 bps |
320 bps |
3
In 2Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 395.4
(12.4% organic growth) and R$ (178.1) (4.6% organic growth), respectively. In HY23, net revenue per hectoliter and Cash COGS per
hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 401.0 (13.3% organic growth) and R$ (182.1) (9.9%
organic growth), respectively. The scope change in Brazil Beer refers to tax credits and related effects.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 6 |
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Brazil NAB: another quarter of consistent
NR/hl performance driving double-digit bottom line growth, with margin expansion
| • | Operating
performance: a soft industry and a challenging comparable
given 2Q22 strong performance (+16.2% versus 2Q21) drove a 2.2% volume decline in
the quarter. Net revenue was up 7.5%, with NR/hl
growing by 10.0%, led by revenue management
initiatives and a positive brand mix. Cash COGS/hl increased by 5.1%, mostly due to overall
non-commodity price inflation, partially offset by FX and aluminum tailwinds. Normalized
EBITDA rose by 24.9%, with a 310 bps
Normalized EBITDA margin expansion. In HY23, net revenue
grew by 13.0% (volumes +2.5% and NR/hl +10.2%), and Normalized EBITDA was up 36.5%, with
Normalized EBITDA margin expansion of 440 bps. |
| • | Commercial
highlights: brand health of our non-alcoholic portfolio improved, with premium, energy
and health & wellness brands continuing to outperform volume-wise, led mainly by Gatorade,
H2OH! and our diet/light/zero portfolio. Pepsi cola brands family grew volumes by mid-single
digit, with Pepsi Black more than doubling its volumes versus 2Q22. As we continued to work
to lower the sugar content in our portfolio, this quarter we delivered a sugar reduction
of 19% versus 2Q22 and 27% versus 2Q21. In line with our
ESG circular-packaging goal, we reduced by 10% the utilization of PET resin in our
packaging. |
Brazil NAB4 |
2Q22 |
Scope |
Currency Translation |
Organic Growth |
2Q23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
7,547.1 |
- |
|
(166.6) |
7,380.5 |
-2.2% |
-2.2% |
|
|
|
|
|
|
|
|
Net revenue |
1,539.4 |
- |
- |
115.9 |
1,655.4 |
7.5% |
7.5% |
Net revenue/hl (R$) |
204.0 |
- |
- |
20.3 |
224.3 |
10.0% |
10.0% |
COGS |
(947.2) |
- |
- |
10.2 |
(936.9) |
-1.1% |
-1.1% |
COGS/hl (R$) |
(125.5) |
- |
- |
(1.4) |
(126.9) |
1.2% |
1.2% |
COGS excl. deprec. & amort. |
(894.3) |
- |
- |
(24.6) |
(918.9) |
2.8% |
2.8% |
COGS/hl excl. deprec. & amort. (R$) |
(118.5) |
- |
- |
(6.0) |
(124.5) |
5.1% |
5.1% |
Gross profit |
592.3 |
- |
- |
126.2 |
718.5 |
21.3% |
21.3% |
% Gross margin |
38.5% |
|
|
|
43.4% |
490 bps |
490 bps |
SG&A excl. deprec. & amort. |
(413.7) |
- |
- |
(67.3) |
(481.0) |
16.3% |
16.3% |
SG&A deprec. & amort. |
(40.9) |
- |
- |
(31.0) |
(71.9) |
75.9% |
75.9% |
SG&A total |
(454.5) |
- |
- |
(98.3) |
(552.8) |
21.6% |
21.6% |
Other operating income/(expenses) |
194.1 |
(124.1) |
- |
51.0 |
121.0 |
-37.7% |
72.8% |
Normalized Operating Profit |
331.8 |
(124.1) |
- |
78.8 |
286.6 |
-13.6% |
37.9% |
% Normalized Operating margin |
21.6% |
0.0% |
0.0% |
0.0% |
17.3% |
-430 bps |
380 bps |
Normalized EBITDA |
425.6 |
(124.1) |
- |
75.0 |
376.5 |
-11.5% |
24.9% |
% Normalized EBITDA margin |
27.6% |
|
|
|
22.7% |
-490 bps |
310 bps |
Brazil NAB |
YTD22 |
Scope |
Currency Translation |
Organic Growth |
YTD23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
15,122.1 |
- |
|
383.5 |
15,505.6 |
2.5% |
2.5% |
|
|
|
|
|
|
|
|
Net revenue |
3,037.5 |
- |
- |
394.5 |
3,431.9 |
13.0% |
13.0% |
Net revenue/hl (R$) |
200.9 |
- |
- |
20.5 |
221.3 |
10.2% |
10.2% |
COGS |
(1,853.1) |
- |
- |
(84.7) |
(1,937.7) |
4.6% |
4.6% |
COGS/hl (R$) |
(122.5) |
- |
- |
(2.4) |
(125.0) |
2.0% |
2.0% |
COGS excl. deprec. & amort. |
(1,745.5) |
- |
- |
(113.9) |
(1,859.5) |
6.5% |
6.5% |
COGS/hl excl. deprec. & amort. (R$) |
(115.4) |
- |
- |
(4.5) |
(119.9) |
3.9% |
3.9% |
Gross profit |
1,184.4 |
- |
- |
309.8 |
1,494.2 |
26.2% |
26.2% |
% Gross margin |
39.0% |
|
|
|
43.5% |
450 bps |
450 bps |
SG&A excl. deprec. & amort. |
(770.2) |
- |
- |
(157.3) |
(927.5) |
20.4% |
20.4% |
SG&A deprec. & amort. |
(79.7) |
- |
- |
(56.8) |
(136.5) |
71.2% |
71.2% |
SG&A total |
(849.9) |
- |
- |
(214.1) |
(1,064.0) |
25.2% |
25.2% |
Other operating income/(expenses) |
248.8 |
(137.8) |
- |
107.8 |
218.8 |
-12.1% |
97.1% |
Normalized Operating Profit |
583.3 |
(137.8) |
- |
203.5 |
649.1 |
11.3% |
45.7% |
% Normalized Operating margin |
19.2% |
0.0% |
0.0% |
0.0% |
18.9% |
-30 bps |
420 bps |
Normalized EBITDA |
770.5 |
(137.8) |
- |
231.0 |
863.8 |
12.1% |
36.5% |
% Normalized EBITDA margin |
25.4% |
|
|
|
25.2% |
-20 bps |
440 bps |
4 The
scope change in Brazil NAB refers to tax credits and related effects.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 7 |
|
|
BRAZIL
Brazil5 |
2Q22 |
Scope |
Currency Translation |
Organic Growth |
2Q23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
29,491.1 |
- |
|
(723.8) |
28,767.3 |
-2.5% |
-2.5% |
|
|
|
|
|
|
|
|
Net revenue |
9,452.3 |
- |
- |
913.7 |
10,366.0 |
9.7% |
9.7% |
Net revenue/hl (R$) |
320.5 |
- |
- |
39.8 |
360.3 |
12.4% |
12.4% |
COGS |
(5,266.6) |
- |
- |
(211.7) |
(5,478.3) |
4.0% |
4.0% |
COGS/hl (R$) |
(178.6) |
- |
- |
(11.9) |
(190.4) |
6.6% |
6.6% |
COGS excl. deprec. & amort. |
(4,805.0) |
- |
- |
(158.7) |
(4,963.8) |
3.3% |
3.3% |
COGS/hl excl. deprec. & amort. (R$) |
(162.9) |
- |
- |
(9.6) |
(172.5) |
5.9% |
5.9% |
Gross profit |
4,185.7 |
- |
- |
702.0 |
4,887.7 |
16.8% |
16.8% |
% Gross margin |
44.3% |
|
|
|
47.2% |
290 bps |
290 bps |
SG&A excl. deprec. & amort. |
(2,860.1) |
- |
- |
(238.8) |
(3,098.9) |
8.4% |
8.4% |
SG&A deprec. & amort. |
(341.9) |
- |
- |
(165.5) |
(507.4) |
48.4% |
48.4% |
SG&A total |
(3,202.0) |
- |
- |
(404.3) |
(3,606.3) |
12.6% |
12.6% |
Other operating income/(expenses) |
1,212.4 |
(922.1) |
- |
85.5 |
375.7 |
-69.0% |
29.4% |
Normalized Operating Profit |
2,196.1 |
(922.1) |
- |
383.2 |
1,657.1 |
-24.5% |
30.1% |
% Normalized Operating margin |
23.2% |
0.0% |
0.0% |
0.0% |
16.0% |
-720 bps |
250 bps |
Normalized EBITDA |
2,999.6 |
(922.1) |
- |
601.6 |
2,679.1 |
-10.7% |
29.0% |
% Normalized EBITDA margin |
31.7% |
|
|
|
25.8% |
-590 bps |
380 bps |
Brazil |
YTD22 |
Scope |
Currency Translation |
Organic Growth |
YTD23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
59,077.5 |
- |
- |
6.3 |
59,083.7 |
0.0% |
0.0% |
|
|
|
|
|
|
|
|
Net revenue |
19,050.6 |
- |
- |
2,362.2 |
21,412.7 |
12.4% |
12.4% |
Net revenue/hl (R$) |
322.5 |
- |
- |
39.9 |
362.4 |
12.4% |
12.4% |
COGS |
(10,364.7) |
- |
- |
(905.9) |
(11,270.6) |
8.7% |
8.7% |
COGS/hl (R$) |
(175.4) |
- |
- |
(15.3) |
(190.8) |
8.7% |
8.7% |
COGS excl. deprec. & amort. |
(9,454.6) |
- |
- |
(798.1) |
(10,252.7) |
8.4% |
8.4% |
COGS/hl excl. deprec. & amort. (R$) |
(160.0) |
- |
- |
(13.5) |
(173.5) |
8.4% |
8.4% |
Gross profit |
8,685.9 |
- |
- |
1,456.3 |
10,142.2 |
16.8% |
16.8% |
% Gross margin |
45.6% |
|
|
|
47.4% |
180 bps |
180 bps |
SG&A excl. deprec. & amort. |
(5,435.8) |
- |
- |
(536.0) |
(5,971.8) |
9.9% |
9.9% |
SG&A deprec. & amort. |
(672.9) |
- |
- |
(271.3) |
(944.2) |
40.3% |
40.3% |
SG&A total |
(6,108.7) |
- |
- |
(807.3) |
(6,916.0) |
13.2% |
13.2% |
Other operating income/(expenses) |
1,549.1 |
(1,013.6) |
- |
286.7 |
822.3 |
-46.9% |
53.5% |
Normalized Operating Profit |
4,126.3 |
(1,013.6) |
- |
935.7 |
4,048.5 |
-1.9% |
30.1% |
% Normalized Operating margin |
21.7% |
0.0% |
0.0% |
0.0% |
18.9% |
-280 bps |
260 bps |
Normalized EBITDA |
5,709.3 |
(1,013.6) |
- |
1,314.8 |
6,010.5 |
5.3% |
28.0% |
% Normalized EBITDA margin |
30.0% |
|
|
|
28.1% |
-190 bps |
350 bps |
5
In 2Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 351.5
(11.9% organic growth) and R$ (164.4) (4.7% organic growth), respectively. In HY23, net revenue per hectoliter and Cash COGS per
hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 353.8 (12.4% organic growth) and R$ (165.8) (8.4% organic
growth), respectively. The scope change in Brazil refers to tax credits and related effects.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 8 |
|
|
Central America and the Caribbean (CAC):
continued sequential improvement and Normalized EBITDA back to growth (high-single digit)
| · | Operating performance: despite further sequential recovery, volumes
were down 2.8% driven mostly by Panama, and with a slight decline in the Dominican Republic. Net revenue grew by 4.8%,
with NR/hl up 7.7% led by revenue management initiatives and positive brand mix. Normalized EBITDA
increased by 7.9%, with Normalized EBITDA margin expansion of 100 bps, as Cash COGS/hl and Cash SG&A
growth decelerated in the quarter. In HY23, net revenue was up 4.3% (volumes -3.8% and NR/hl +8.5%), and Normalized EBITDA rose by 2.6%,
with Normalized EBITDA margin contraction of 60 bps. |
| · | Commercial highlights: the Dominican Republic continued to recover in the context of an improving
macro backdrop: coverage, pricing adherence and NPS improved this quarter, leading to volume and brand health growth of Presidente family
of brands. As to our B2B digital platform, in HY23 over 76% of BEES customers were buying non-Ambev products at the marketplace in Dominican
Republic, and over 70% in Panama. |
CAC6 |
2Q22 |
Scope |
Currency Translation |
Organic Growth |
2Q23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
3,041.2 |
- |
|
(83.7) |
2,957.6 |
-2.8% |
-2.8% |
|
|
|
|
|
|
|
|
Net revenue |
2,223.9 |
- |
143.6 |
106.0 |
2,473.5 |
11.2% |
4.8% |
Net revenue/hl (R$) |
731.2 |
- |
48.6 |
56.5 |
836.3 |
14.4% |
7.7% |
COGS |
(1,157.1) |
- |
(65.6) |
(30.1) |
(1,252.8) |
8.3% |
2.6% |
COGS/hl (R$) |
(380.5) |
- |
(22.2) |
(20.9) |
(423.6) |
11.3% |
5.5% |
COGS excl. deprec. & amort. |
(1,061.4) |
- |
(58.4) |
(3.1) |
(1,122.9) |
5.8% |
0.3% |
COGS/hl excl. deprec. & amort. (R$) |
(349.0) |
- |
(19.8) |
(10.9) |
(379.7) |
8.8% |
3.1% |
Gross profit |
1,066.7 |
- |
78.0 |
76.0 |
1,220.7 |
14.4% |
7.1% |
% Gross margin |
48.0% |
|
|
|
49.4% |
140 bps |
100 bps |
SG&A excl. deprec. & amort. |
(373.8) |
- |
(27.9) |
(22.0) |
(423.7) |
13.4% |
5.9% |
SG&A deprec. & amort. |
(95.9) |
- |
(4.9) |
(11.1) |
(111.9) |
16.6% |
11.5% |
SG&A total |
(469.7) |
- |
(32.8) |
(33.1) |
(535.6) |
14.0% |
7.0% |
Other operating income/(expenses) |
10.8 |
- |
0.4 |
(17.9) |
(6.8) |
-162.6% |
-166.3% |
Normalized Operating Profit |
607.8 |
- |
45.6 |
24.9 |
678.4 |
11.6% |
4.1% |
% Normalized Operating margin |
27.3% |
0.0% |
0.0% |
0.0% |
27.4% |
10 bps |
-10 bps |
Normalized EBITDA |
799.5 |
- |
57.7 |
63.0 |
920.2 |
15.1% |
7.9% |
% Normalized EBITDA margin |
36.0% |
|
|
|
37.2% |
120 bps |
100 bps |
|
|
|
|
|
|
|
|
CAC |
YTD22 |
Scope |
Currency Translation |
Organic Growth |
YTD23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
5,923.5 |
- |
|
(227.0) |
5,696.5 |
-3.8% |
-3.8% |
|
|
|
|
|
|
|
|
Net revenue |
4,506.7 |
- |
77.9 |
194.5 |
4,779.1 |
6.0% |
4.3% |
Net revenue/hl (R$) |
760.8 |
- |
13.7 |
64.5 |
839.0 |
10.3% |
8.5% |
COGS |
(2,322.9) |
- |
(33.6) |
(20.3) |
(2,376.8) |
2.3% |
0.9% |
COGS/hl (R$) |
(392.2) |
- |
(5.9) |
(19.2) |
(417.2) |
6.4% |
4.9% |
COGS excl. deprec. & amort. |
(2,128.9) |
- |
(29.3) |
12.4 |
(2,145.9) |
0.8% |
-0.6% |
COGS/hl excl. deprec. & amort. (R$) |
(359.4) |
- |
(5.2) |
(12.2) |
(376.7) |
4.8% |
3.4% |
Gross profit |
2,183.8 |
- |
44.3 |
174.2 |
2,402.3 |
10.0% |
8.0% |
% Gross margin |
48.5% |
|
|
|
50.3% |
180 bps |
170 bps |
SG&A excl. deprec. & amort. |
(720.6) |
- |
(14.2) |
(132.2) |
(867.0) |
20.3% |
18.3% |
SG&A deprec. & amort. |
(143.3) |
- |
(3.1) |
(24.3) |
(170.6) |
19.1% |
16.9% |
SG&A total |
(863.9) |
- |
(17.2) |
(156.5) |
(1,037.6) |
20.1% |
18.1% |
Other operating income/(expenses) |
34.9 |
- |
0.1 |
(30.5) |
4.5 |
-87.2% |
-87.5% |
Normalized Operating Profit |
1,354.8 |
- |
27.2 |
(12.8) |
1,369.2 |
1.1% |
-0.9% |
% Normalized Operating margin |
30.1% |
0.0% |
0.0% |
0.0% |
28.6% |
-150 bps |
-160 bps |
Normalized EBITDA |
1,692.0 |
- |
34.5 |
44.1 |
1,770.6 |
4.6% |
2.6% |
% Normalized EBITDA margin |
37.5% |
|
|
|
37.0% |
-50 bps |
-60 bps |
6
In 2Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 805.5
(9.6% organic growth) and R$ (350.4) (6.7% organic growth), respectively. In HY23, net revenue per hectoliter and Cash COGS per hectoliter,
excluding the sale of non-Ambev products on the marketplace, were R$ 807.1 (10.7% organic growth) and R$ (347.1) (7.6% organic growth),
respectively.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 9 |
|
|
Latin America South (LAS): consistent NR/hl
performance driving Normalized EBITDA growth ahead of top line
| · | Operating performance: volumes grew by 0.6% as the impacts
of the challenging macro scenario in Argentina were more than offset by positive performances in Chile, Paraguay,
and Bolivia. Net revenue increased by 82.1%, with NR/hl up 81.1%, driven mostly by revenue management
initiatives in Argentina. Despite continued inflationary pressures over COGS and SG&A, especially in Argentina, Normalized EBITDA
grew by 109.8%, with Normalized EBITDA margin expansion of 380 bps. In HY23, net revenue was up 72.6%
(volumes -4.5% and NR/hl +80.8%), and Normalized EBITDA grew by 101.3%, with Normalized EBITDA margin expansion of 490 bps. |
| · | Commercial highlights: beer volumes in Argentina grew
low-single digit, with core plus and above brands gaining mix driven by Budweiser. Our brands gained market share in Bolivia and Paraguay,
according to our estimates. In Chile, high-single digit volume growth was driven by Corona and Stella Artois, with core plus and above
brands gaining mix versus 2Q22. In Paraguay, our core plus brands grew volumes by mid-twenties, outperforming the rest of the portfolio.
In Bolivia, high-single digit beer volume growth was led by Paceña, while key innovation improved versus 2Q22, with Chicha and
235ml returnable presentations gaining weight. As for our B2B digital platform, in HY23 BEES represented 76% of net revenue in Argentina,
and 83% in Paraguay (+9.3% and +29.7% versus HY22, respectively), achieving all-time-high Net Promoter Score (NPS) in the latter. |
LAS7 |
2Q22 |
Scope |
Currency Translation |
IAS 29
3M Impact |
Organic Growth |
2Q23 |
% As Reported |
%
Organic |
R$ million |
Volume (‘000 hl) |
6,929.5 |
|
|
- |
40.3 |
6,969.8 |
0.6% |
0.6% |
|
|
|
|
|
|
|
|
|
Net revenue |
3,449.0 |
|
(3,625.7) |
936.0 |
2,506.7 |
3,266.0 |
-5.3% |
82.1% |
Net revenue/hl (R$) |
497.7 |
|
(520.2) |
87.5 |
403.6 |
468.6 |
-5.9% |
81.1% |
COGS |
(1,754.8) |
|
1,576.3 |
(335.5) |
(1,201.9) |
(1,715.9) |
-2.2% |
76.5% |
COGS/hl (R$) |
(253.2) |
|
226.2 |
(27.9) |
(191.2) |
(246.2) |
-2.8% |
75.5% |
COGS excl. deprec. & amort. |
(1,571.2) |
|
1,355.6 |
(298.3) |
(996.2) |
(1,510.1) |
-3.9% |
70.9% |
COGS/hl xcl.. deprec. & amort. (R$) |
(226.7) |
|
194.5 |
(25.9) |
(158.5) |
(216.7) |
-4.4% |
69.9% |
Gross profit |
1,694.2 |
- |
(2,049.4) |
600.5 |
1,304.8 |
1,550.1 |
-8.5% |
88.1% |
% Gross margin |
49.1% |
|
|
|
|
47.5% |
-160 bps |
160 bps |
SG&A xcl.. deprec. & amort. |
(984.1) |
- |
986.0 |
(207.6) |
(733.7) |
(939.4) |
-4.5% |
81.8% |
SG&A deprec. & amort. |
(105.9) |
- |
100.9 |
(16.3) |
(79.0) |
(100.4) |
-5.3% |
80.7% |
SG&A total |
(1,090.1) |
- |
1,086.9 |
(223.9) |
(812.7) |
(1,039.8) |
-4.6% |
81.7% |
Other operating income/(expenses) |
10.9 |
- |
(48.7) |
4.5 |
54.7 |
21.4 |
95.7% |
nm |
Normalized Operating Profit |
615.1 |
- |
(1,011.2) |
381.1 |
546.8 |
531.7 |
-13.6% |
110.8% |
% Normalized Operating margin |
17.8% |
0.0% |
0.0% |
0.0% |
0.0% |
16.3% |
-150 bps |
250 bps |
Normalized EBITDA |
904.6 |
- |
(1,332.8) |
434.5 |
831.5 |
837.9 |
-7.4% |
109.8% |
% Normalized EBITDA margin |
26.2% |
|
|
|
|
25.7% |
-50 bps |
380 bps |
LAS |
YTD22 |
Scope |
Currency Translation |
IAS 29
3M Impact |
Organic Growth |
YTD23 |
% As Reported |
% Organic |
R$ million |
Volume (‘000 hl) |
17,736.7 |
|
|
|
(797.5) |
16,939.2 |
-4.5% |
-4.5% |
|
|
|
|
|
|
|
|
|
Net revenue |
8,051.6 |
|
(6,148.7) |
936.0 |
5,559.0 |
8,398.0 |
4.3% |
72.6% |
Net revenue/hl (R$) |
454.0 |
|
(363.0) |
38.2 |
366.6 |
495.8 |
9.2% |
80.8% |
COGS |
(4,090.9) |
|
2,573.1 |
(335.5) |
(2,195.4) |
(4,048.8) |
-1.0% |
56.2% |
COGS/hl (R$) |
(230.6) |
|
151.9 |
(13.7) |
(146.6) |
(239.0) |
3.6% |
63.6% |
COGS excl. deprec. & amort. |
(3,712.3) |
|
2,248.2 |
(298.3) |
(1,877.6) |
(3,640.0) |
-1.9% |
53.0% |
COGS/hl xcl.. deprec. & amort. (R$) |
(209.3) |
|
132.7 |
(12.4) |
(125.9) |
(214.9) |
2.7% |
60.2% |
Gross profit |
3,960.7 |
|
(3,575.6) |
600.5 |
3,363.6 |
4,349.2 |
9.8% |
89.7% |
% Gross margin |
49.2% |
|
|
|
|
51.8% |
260 bps |
480 bps |
SG&A xcl.. deprec. & amort. |
(1,964.9) |
- |
1,537.4 |
(207.6) |
(1,453.0) |
(2,088.2) |
6.3% |
77.4% |
SG&A deprec. & amort. |
(193.4) |
- |
147.6 |
(16.3) |
(136.0) |
(198.0) |
2.4% |
73.4% |
SG&A total |
(2,158.3) |
- |
1,684.9 |
(223.9) |
(1,588.9) |
(2,286.2) |
5.9% |
77.0% |
Other operating income/(expenses) |
33.9 |
- |
(62.6) |
4.5 |
62.2 |
38.0 |
12.0% |
nm |
Normalized Operating Profit |
1,836.3 |
- |
(1,953.3) |
381.1 |
1,836.9 |
2,100.9 |
14.4% |
107.1% |
% Normalized Operating margin |
22.8% |
0.0% |
0.0% |
0.0% |
0.0% |
25.0% |
220 bps |
450 bps |
Normalized EBITDA |
2,408.3 |
- |
(2,425.8) |
434.5 |
2,290.7 |
2,707.8 |
12.4% |
101.3% |
% Normalized EBITDA margin |
29.9% |
|
|
|
|
32.2% |
230 bps |
490 bps |
7
In 2Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 461.6
(79.0% organic growth) and R$ (210.5) (66.2% organic growth), respectively. In HY23, net revenue per hectoliter and Cash COGS per
hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 489.6 (78.9% organic growth) and R$ (209.6) (56.7% organic
growth), respectively. Reported numbers are presented applying Hyperinflation Accounting for our Argentinean operations, as detailed on
page 16.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 10 |
|
|
Canada: Normalized EBITDA growth with margin
expansion, despite top line impacted by volumes
| · | Operating performance: Normalized EBITDA increased
by 4.1%, with Normalized EBITDA margin expansion of 120 bps, as Cash COGS/hl decelerated in the quarter, and we benefited from Cash SG&A
efficiencies. Net revenue performance was flat (0.0%) – despite a 6.2% volume decline amid a soft beer and beyond beer industries
in the quarter and lapping tough comps in Quebec –, due to a 6.6% NR/hl growth driven by revenue management initiatives and helped
by positive brand and pack mix. In HY23, net revenue was up 6.1% (volumes -1.8% and NR/hl +8.0%), and Normalized EBITDA grew by 3.9%,
with Normalized EBITDA margin contraction of 60 bps. |
| • | Commercial
highlights: our core plus and premium beer brands grew market share in the quarter, and
focus brands grew volumes led by Michelob Ultra, Corona and Nutrl. Brand health of our core
plus and above beer brands continued to improve, particularly Corona and Stella Artois. As
to our B2B digital platform, BEES continued to roll-out capabilities in Newfoundland and
Quebec in the quarter. |
Canada |
2Q22 |
Scope |
Currency Translation |
Organic Growth |
2Q23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
2,779.9 |
- |
|
(172.5) |
2,607.4 |
-6.2% |
-6.2% |
|
|
|
|
|
|
|
|
Net revenue |
2,863.8 |
- |
(70.6) |
(0.7) |
2,792.5 |
-2.5% |
0.0% |
Net revenue/hl (R$) |
1,030.2 |
- |
(27.1) |
67.9 |
1,071.0 |
4.0% |
6.6% |
COGS |
(1,195.7) |
- |
29.6 |
(22.4) |
(1,188.6) |
-0.6% |
1.9% |
COGS/hl (R$) |
(430.1) |
- |
11.3 |
(37.1) |
(455.8) |
6.0% |
8.6% |
COGS excl. deprec. & amort. |
(1,123.5) |
- |
28.0 |
(22.5) |
(1,118.0) |
-0.5% |
2.0% |
COGS/hl excl. deprec. & amort. (R$) |
(404.1) |
- |
10.7 |
(35.4) |
(428.8) |
6.1% |
8.8% |
Gross profit |
1,668.1 |
- |
(41.0) |
(23.1) |
1,604.0 |
-3.8% |
-1.4% |
% Gross margin |
58.2% |
|
|
|
57.4% |
-80 bps |
-70 bps |
SG&A excl. deprec. & amort. |
(911.2) |
- |
12.0 |
56.7 |
(842.5) |
-7.5% |
-6.2% |
SG&A deprec. & amort. |
(112.7) |
- |
0.6 |
48.5 |
(63.5) |
-43.7% |
-43.1% |
SG&A total |
(1,023.8) |
- |
12.6 |
105.2 |
(906.0) |
-11.5% |
-10.3% |
Other operating income/(expenses) |
5.3 |
- |
(0.1) |
0.7 |
6.0 |
12.9% |
13.9% |
Normalized Operating Profit |
649.6 |
- |
(28.4) |
82.9 |
704.0 |
8.4% |
12.8% |
% Normalized Operating margin |
22.7% |
0.0% |
0.0% |
0.0% |
25.2% |
250 bps |
290 bps |
Normalized EBITDA |
834.5 |
- |
(30.6) |
34.2 |
838.1 |
0.4% |
4.1% |
% Normalized EBITDA margin |
29.1% |
|
|
|
30.0% |
90 bps |
120 bps |
Canada |
YTD22 |
Scope |
Currency Translation |
Organic Growth |
YTD23 |
% As Reported |
% Organic |
R$ million |
Volume ('000 hl) |
4,586.4 |
- |
|
(82.5) |
4,503.9 |
-1.8% |
-1.8% |
|
|
|
|
|
|
|
|
Net revenue |
4,819.3 |
- |
(273.1) |
293.8 |
4,840.0 |
0.4% |
6.1% |
Net revenue/hl (R$) |
1,050.8 |
- |
(60.6) |
84.5 |
1,074.6 |
2.3% |
8.0% |
COGS |
(2,010.2) |
- |
116.9 |
(177.8) |
(2,071.1) |
3.0% |
8.8% |
COGS/hl (R$) |
(438.3) |
- |
25.9 |
(47.5) |
(459.9) |
4.9% |
10.8% |
COGS excl. deprec. & amort. |
(1,877.0) |
- |
109.6 |
(175.9) |
(1,943.3) |
3.5% |
9.4% |
COGS/hl excl. deprec. & amort. (R$) |
(409.3) |
- |
24.3 |
(46.6) |
(431.5) |
5.4% |
11.4% |
Gross profit |
2,809.0 |
- |
(156.2) |
116.1 |
2,768.9 |
-1.4% |
4.1% |
% Gross margin |
58.3% |
|
|
|
57.2% |
-110 bps |
-110 bps |
SG&A excl. deprec. & amort. |
(1,699.1) |
- |
94.7 |
(74.5) |
(1,678.8) |
-1.2% |
4.4% |
SG&A deprec. & amort. |
(175.1) |
- |
7.5 |
35.1 |
(132.6) |
-24.3% |
-20.0% |
SG&A total |
(1,874.2) |
- |
102.2 |
(39.4) |
(1,811.4) |
-3.4% |
2.1% |
Other operating income/(expenses) |
8.2 |
- |
(0.7) |
5.3 |
12.8 |
55.3% |
64.1% |
Normalized Operating Profit |
943.0 |
- |
(54.7) |
81.9 |
970.3 |
2.9% |
8.7% |
% Normalized Operating margin |
19.6% |
0.0% |
0.0% |
0.0% |
20.0% |
40 bps |
40 bps |
Normalized EBITDA |
1,251.4 |
- |
(69.4) |
48.7 |
1,230.7 |
-1.7% |
3.9% |
% Normalized EBITDA margin |
26.0% |
|
|
|
25.4% |
-60 bps |
-60 bps |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 11 |
|
|
AMBEV
CONSOLIDATE
Ambev8 |
2Q22 |
Scope |
|
|
|
|
|
|
R$ million |
Currency Translation |
IAS 29
3M Impact |
Organic Growth |
2Q23 |
% As Reported |
% Organic |
Volume ('000 hl) |
42,241.8 |
|
- |
|
(939.7) |
41,302.1 |
-2.2% |
-2.2% |
|
|
|
|
|
|
|
|
|
Net revenue |
17,989.0 |
- |
(3,552.7) |
936.0 |
3,525.8 |
18,898.1 |
5.1% |
20.0% |
Net revenue/hl (R$) |
425.9 |
|
(86.0) |
20.7 |
97.0 |
457.6 |
7.4% |
22.8% |
COGS |
(9,374.3) |
- |
1,540.3 |
(335.5) |
(1,466.1) |
(9,635.6) |
2.8% |
16.0% |
COGS/hl (R$) |
(221.9) |
|
37.3 |
(7.4) |
(41.3) |
(233.3) |
5.1% |
18.6% |
COGS excl. deprec. & amort. |
(8,561.1) |
- |
1,325.2 |
(298.3) |
(1,180.6) |
(8,714.8) |
1.8% |
14.1% |
COGS/hl excl. deprec. & amort. (R$) |
(202.7) |
|
32.1 |
(6.6) |
(33.8) |
(211.0) |
4.1% |
16.7% |
Gross profit |
8,614.7 |
- |
(2,012.4) |
600.5 |
2,059.7 |
9,262.5 |
7.5% |
24.5% |
% Gross margin |
47.9% |
|
|
|
|
49.0% |
110 bps |
170 bps |
SG&A excl. deprec. & amort. |
(5,129.2) |
- |
970.1 |
(207.6) |
(937.9) |
(5,304.6) |
3.4% |
18.6% |
SG&A deprec. & amort. |
(656.4) |
- |
96.6 |
(16.3) |
(207.0) |
(783.1) |
19.3% |
31.9% |
SG&A total |
(5,785.7) |
- |
1,066.8 |
(223.9) |
(1,144.9) |
(6,087.7) |
5.2% |
20.1% |
Other operating income/(expenses) |
1,239.4 |
(922.1) |
(48.3) |
4.5 |
123.0 |
396.4 |
-68.0% |
39.2% |
Normalized Operating Profit |
4,068.5 |
(922.1) |
(994.0) |
381.1 |
1,037.8 |
3,571.3 |
-12.2% |
34.3% |
% Normalized Operating margin |
22.6% |
0.0% |
0.0% |
0.0% |
0.0% |
18.9% |
0 bps |
200 bps |
Exceptional items above EBITDA |
(31.2) |
- |
1.1 |
0.1 |
(93.4) |
(123.4) |
nm |
nm |
Net finance results |
(495.5) |
|
|
|
|
(1,073.5) |
116.7% |
|
Share of results of joint ventures |
(3.2) |
|
|
|
|
(2.4) |
-24.2% |
|
Income tax expense |
(474.6) |
|
|
|
|
225.8 |
-147.6% |
|
|
|
|
|
|
|
|
|
|
Profit |
3,064.0 |
|
|
|
|
2,597.8 |
-15.2% |
|
Attributable to Ambev holders |
2,969.7 |
|
|
|
|
2,503.0 |
-15.7% |
|
Attributable to non-controlling interests |
94.3 |
|
|
|
|
94.8 |
0.5% |
|
|
|
|
|
|
|
|
|
|
Normalized profit |
3,085.8 |
|
|
|
|
2,681.0 |
-13.1% |
|
Attributable to Ambev holders |
2,991.2 |
|
|
|
|
2,585.1 |
-13.6% |
|
|
|
|
|
|
|
|
|
|
Normalized EBITDA |
5,538.1 |
(922.1) |
(1,305.7) |
434.5 |
1,530.3 |
5,275.2 |
-4.7% |
34.2% |
% Normalized EBITDA margin |
30.8% |
|
|
|
|
27.9% |
-290 bps |
300 bps |
Ambev |
YTD22 |
|
R$ million |
Scope |
Currency Translation |
IAS 29
3M Impact |
Organic Growth |
YTD23 |
% As Reported |
% Organic |
Volume ('000 hl) |
87,324.1 |
|
- |
- |
(1,100.7) |
86,223.3 |
-1.3% |
-1.3% |
|
|
|
|
|
|
|
|
|
Net revenue |
36,428.1 |
- |
(6,343.8) |
936.0 |
8,409.5 |
39,429.9 |
8.2% |
23.3% |
Net revenue/hl (R$) |
417.2 |
|
(73.6) |
9.8 |
103.9 |
457.3 |
9.6% |
24.9% |
COGS |
(18,788.7) |
- |
2,656.3 |
(335.5) |
(3,299.3) |
(19,767.3) |
5.2% |
17.7% |
COGS/hl (R$) |
(215.2) |
|
30.8 |
(3.5) |
(41.4) |
(229.3) |
6.6% |
19.2% |
COGS excl. deprec. & amort. |
(17,172.8) |
- |
2,328.4 |
(298.3) |
(2,839.3) |
(17,981.9) |
4.7% |
16.7% |
COGS/hl excl. deprec. & amort. (R$) |
(196.7) |
|
27.0 |
(3.1) |
(35.8) |
(208.6) |
6.0% |
18.2% |
Gross profit |
17,639.4 |
- |
(3,687.5) |
600.5 |
5,110.2 |
19,662.6 |
11.5% |
29.3% |
% Gross margin |
48.4% |
|
|
|
|
49.9% |
150 bps |
230 bps |
SG&A excl. deprec. & amort. |
(9,820.5) |
- |
1,617.9 |
(207.6) |
(2,195.7) |
(10,605.8) |
8.0% |
22.6% |
SG&A deprec. & amort. |
(1,184.6) |
- |
152.0 |
(16.3) |
(396.5) |
(1,445.4) |
22.0% |
33.7% |
SG&A total |
(11,005.1) |
- |
1,769.9 |
(223.9) |
(2,592.1) |
(12,051.2) |
9.5% |
23.8% |
Other operating income/(expenses) |
1,626.2 |
(1,013.6) |
(63.2) |
4.5 |
323.7 |
877.5 |
-46.0% |
53.1% |
Normalized Operating Profit |
8,260.5 |
(1,013.6) |
(1,980.9) |
381.1 |
2,841.8 |
8,488.9 |
2.8% |
39.9% |
% Normalized Operating margin |
22.7% |
0.0% |
0.0% |
0.0% |
0.0% |
21.5% |
-120 bps |
260 bps |
Exceptional items above EBITDA |
(58.4) |
- |
2.9 |
0.1 |
(95.8) |
(151.3) |
158.9% |
166.3% |
Net finance results |
(1,092.2) |
|
|
|
|
(2,071.3) |
89.7% |
|
Share of results of joint ventures |
(5.6) |
|
|
|
|
(16.6) |
196.0% |
|
Income tax expense |
(511.4) |
|
|
|
|
167.4 |
-132.7% |
|
|
|
|
|
|
|
|
|
|
Profit |
6,592.9 |
|
|
|
|
6,417.0 |
-2.7% |
|
Attributable to Ambev holders |
6,382.5 |
|
|
|
|
6,202.5 |
-2.8% |
|
Attributable to non-controlling interests |
210.4 |
|
|
|
|
214.5 |
1.9% |
|
|
|
|
|
|
|
|
|
|
Normalized profit |
6,637.4 |
|
|
|
|
6,520.7 |
-1.8% |
|
Attributable to Ambev holders |
6,426.1 |
|
|
|
|
6,305.0 |
-1.9% |
|
|
|
|
|
|
|
|
|
|
Normalized EBITDA |
11,061.0 |
(1,013.6) |
(2,460.7) |
434.5 |
3,698.3 |
11,719.6 |
6.0% |
37.4% |
% Normalized EBITDA margin |
30.4% |
|
|
|
|
29.7% |
-70 bps |
310 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
8
In 2Q23, net revenue per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products
on the marketplace, were R$ 448.0 (22.5% organic growth) and R$ (202.2) (15.9% organic growth), respectively. In HY23, net revenue
per hectoliter and Cash COGS per hectoliter, excluding the sale of non-Ambev products on the marketplace, were R$ 448.1 (25.0% organic
growth) and R$ (200.3) (18.4% organic growth), respectively. The scope changes refer to tax credits and related effects in Brazil.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 12 |
|
|
OTHER
OPERATING INCOME/EXPENSES
Other operating income/(expenses) |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
R$ million |
|
|
|
|
|
Government grants/NPV of long term fiscal incentives |
321.4 |
386.0 |
553.7 |
755.5 |
Credits/(debits) taxes extemporaneous |
922.1 |
- |
1,013.5 |
- |
(Additions to)/reversals of provisions |
1.6 |
(3.4) |
(11.0) |
(11.7) |
Gain/(loss) on disposal of fixed assets, intangible assets and operations in associates |
12.5 |
14.5 |
45.9 |
42.6 |
Net other operating income/(expenses) |
(18.1) |
(0.6) |
24.0 |
91.2 |
|
|
|
|
|
Other operating income/(expenses) |
1,239.4 |
396.4 |
1,626.2 |
877.5 |
Exceptional items corresponded to (i) restructuring expenses
primarily linked to centralization and restructuring projects in Brazil, LAS and CAC; (ii) 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 (iii) legal fees in connection with
litigation related to warrants issued by Cervejaria Brahma in 2003. Several lawsuits were filed in order to discuss the criteria used
in calculating the exercise price of such warrants. In 2023, as successors of Cervejaria Brahma, we obtained definitive favorable decisions
against certain plaintiffs on the matter, which was already classified as a remote loss. The amount recorded in this line refers to the
provision for attorney fees related to such disputes.
Exceptional Items |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
R$ million |
|
|
|
|
|
Restructuring |
(25.4) |
(28.4) |
(42.0) |
(56.3) |
IAS 29/CPC 42 (hyperinflation) application effect |
(0.9) |
(0.3) |
(0.9) |
(0.3) |
COVID-19 impact |
(4.9) |
- |
(15.6) |
- |
Legal fees |
|
(94.7) |
|
(94.7) |
Exceptional Items |
(31.2) |
(123.4) |
(58.4) |
(151.3) |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 13 |
|
|
NET FINANCE RESULTS
Net finance results in 2Q23 totaled
R$ (1,073.5) million, a decrease of R$ 578 million compared to 2Q22, broken down as follows:
| · | Interest income totaled R$ 521.4 million, mainly
explained by: (i) interest income of R$ 154.7 million from cash balance investments in Brazil and Argentina, and (ii)
interest rate update on Brazilian tax credits of R$ 287.9 million. |
| · | Interest expense totaled R$ 659.6 million, mainly impacted by: (i) fair value adjustments of payables
pursuant to by IFRS 13 (CPC 46) of R$ 347.1 million, (ii) CND put option interest accruals of R$ 45.8 million, (iii) interest on fiscal
incentives of R$ 38.6 million, and (iv) lease liabilities interest accruals of R$ 55.2 million in accordance with IFRS16 (CPC 06 R2). |
| · | Losses on derivative instruments of R$ 462.3 million, mainly explained by: (i) hedging carry costs related
to our FX exposure of US$ 428.3 million in Argentina, with approximately 114% carry cost, and (ii) hedging carry costs related to our
FX exposure of US$ 2.0 billion in Brazil, with approximately 6.2% carry cost. |
| · | Losses on non-derivative instruments of R$ 318.5 million, mainly explained by non-cash losses on intercompany
balance sheet consolidation and third-party payables. |
| · | Taxes on financial transactions of R$ 65.0 million. |
| · | Other financial expenses of R$192.4 million, mainly explained by accruals on legal contingencies, letter
of credit expenses, pension plan expenses and bank fees. |
| · | Non-cash financial income of R$ 102.8 million resulting from the adoption of Hyperinflation Accounting
in Argentina. |
Net finance results |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
R$ million |
|
|
|
|
|
Interest income |
756.8 |
521.4 |
1,154.1 |
865.8 |
Interest expenses |
(559.7) |
(659.6) |
(957.5) |
(1,276.4) |
Gains/(losses) on derivative instruments |
(846.0) |
(462.3) |
(1,553.7) |
(1,101.9) |
Gains/(losses) on non-derivative instruments |
(110.3) |
(318.5) |
(232.4) |
(579.1) |
Taxes on financial transactions |
(85.9) |
(65.0) |
(146.6) |
(123.4) |
Other net financial income/(expenses) |
(101.6) |
(192.4) |
(138.4) |
(249.1) |
Hyperinflation Argentina |
451.2 |
102.8 |
782.3 |
392.7 |
|
|
|
|
|
Net finance results |
(495.5) |
(1,073.5) |
(1,092.2) |
(2,071.3) |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 14 |
|
|
DEBT BREAKDOWN
Debt breakdown |
December 31, 2022 |
June 30, 2023 |
R$ million |
Current |
Non-current |
Total |
Current |
Non-current |
Total |
|
|
|
|
|
|
|
Local Currency |
754.3 |
2,077.9 |
2,832.2 |
1,113.3 |
2,005.6 |
3,118.8 |
Foreign Currency |
228.2 |
710.3 |
938.5 |
207.1 |
666.3 |
873.4 |
Consolidated Debt |
982.6 |
2,788.1 |
3,770.7 |
1,320.4 |
2,671.9 |
3,992.3 |
|
|
|
|
|
|
|
Cash and Cash Equivalents less Bank Overdrafts |
|
|
14,852.1 |
|
|
12,013.1 |
Current Investment Securities |
|
|
454.5 |
|
|
313.5 |
|
|
|
|
|
|
|
Net debt/(cash) |
|
|
(11,535.9) |
|
|
(8,334.3) |
PROVISION
FOR INCOME TAX & SOCIAL CONTRIBUTION
The table below demonstrates the income tax and social contribution provision.
Income tax and social contribution |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
R$ million |
|
|
|
|
|
Profit before tax |
3,538.6 |
2,371.9 |
7,104.2 |
6,249.6 |
|
|
|
|
|
Adjustment on taxable basis |
|
|
|
|
Non-taxable other income |
(493.6) |
(340.5) |
(574.7) |
(490.9) |
Government grants (VAT) |
(607.3) |
(721.5) |
(1,093.6) |
(1,404.2) |
Share of results of joint ventures |
3.2 |
2.4 |
5.6 |
16.6 |
Expenses not deductible |
43.8 |
3.4 |
51.2 |
19.6 |
Worldwide taxation |
(41.3) |
114.2 |
104.6 |
260.7 |
Total |
2,443.5 |
1,430.0 |
5,597.4 |
4,651.4 |
Aggregated weighted nominal tax rate |
30.6% |
24.3% |
29.7% |
28.5% |
Taxes – nominal rate |
(747.0) |
(348.1) |
(1,660.0) |
(1,324.7) |
|
|
|
|
|
Adjustment on tax expense |
|
|
|
|
Income tax incentive |
80.6 |
19.7 |
102.0 |
47.7 |
Tax benefit - interest on shareholders' equity |
606.2 |
820.0 |
1,352.8 |
1,676.7 |
Tax benefit - amortization on tax books |
4.3 |
4.3 |
18.6 |
8.6 |
Withholding income tax |
(205.1) |
(43.2) |
(34.5) |
(100.8) |
Argentina's hyperinflation effect |
(70.9) |
(137.0) |
(108.4) |
(257.6) |
Other tax adjustments |
(142.6) |
(89.9) |
(181.8) |
117.5 |
|
|
|
|
|
Income tax and social contribution expense |
(474.6) |
225.8 |
(511.4) |
167.4 |
Effective tax rate |
13.4% |
-9.5% |
7.2% |
-2.7% |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 15 |
|
|
SHAREHOLDING
STRUCTURE
The table below summarizes Ambev S.A.’s shareholding
structure as of June 30, 2023.
Ambev S.A.’s Shareholding Structure |
|
Ordinary Shares |
% Outs |
Anheuser-Busch InBev |
9,729,336,962 |
61.8% |
FAHZ |
1,609,987,301 |
10.2% |
Market |
4,407,364,646 |
28.0% |
Outstanding |
15,746,688,909 |
100.0% |
Treasury |
7,144,375 |
|
TOTAL |
15,753,833,284 |
|
Free float B3 |
2,994,015,466 |
19.0% |
Free float NYSE |
1,413,349,180 |
9.0% |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 16 |
|
|
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., June 30, 2023 closing rate for 2Q23).
The 2Q23 Hyperinflation Accounting adjustment results from
the combined effect of (i) the indexation to reflect changes in purchasing power on the 2Q23 results against a dedicated line in the finance
results; and (ii) the difference between the translation of the 2Q23 results at the closing exchange rate of June 30, 2023, and the translation
using the average year to date rate on the reported period, as applicable to non-inflationary economies.
The impacts in 2Q22 and 2Q23 on Net Revenue and Normalized
EBITDA were as follows:
Impact of Hyperinflation Accounting (IAS 29/CPC42) |
|
|
|
|
Revenue |
|
|
|
|
R$ million |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
|
Indexation(1) |
572.3 |
736.3 |
697.6 |
929.6 |
|
Currency(2) |
37.4 |
(720.4) |
(459.6) |
(1,143.1) |
|
Total Impact |
609.7 |
15.9 |
238.0 |
(213.4) |
|
Normalized EBITDA |
|
|
|
|
|
R$ million |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
|
Indexation(1) |
189.3 |
259.9 |
219.2 |
282.4 |
|
Currency(2) |
29.4 |
(246.9) |
(152.2) |
(430.5) |
|
Total Impact |
218.8 |
13.0 |
67.1 |
(148.1) |
|
|
|
|
|
|
|
ARS/BRL average rate |
|
|
21.5445 |
41.6939 |
|
ARS/BRL closing rate |
23.9042 |
53.2565 |
23.9042 |
53.2565 |
|
|
|
|
|
|
|
|
|
|
| (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 2Q23, the transition to Hyperinflation Accounting in accordance
with the IFRS rules resulted in (i) a positive R$ 102.8 million adjustment reported in the finance results, (ii) a negative impact on
the Profit of R$ 276.3 million, (iii) a negative impact on the Normalized Profit of R$ 276.5 million, and (iv) a negative impact of R$
0.01 on EPS, as well as on Normalized EPS.
The 2Q23 results are calculated by deducting from the HY results
the 3M results as published. Consequently, LAS and Consolidated 2Q23 and 2Q22 results are impacted by the adjustment of 3M results for
the cumulative inflation between March 31 and June 30, as well as by the translation of 3M results at the HY closing exchange rate, of
June 30, as follows:
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 17 |
|
|
LAS - 3M As Reported |
YTD22 |
Scope |
Currency Translation |
Organic Growth |
YTD23 |
% Organic |
Net revenue |
8,051.6 |
- |
(6,148.7) |
5,559.0 |
8,398.0 |
72.6% |
COGS |
(4,090.9) |
- |
2,573.1 |
(2,195.4) |
(4,048.8) |
56.2% |
COGS excl. deprec. & amort. |
(3,712.3) |
- |
2,248.2 |
(1,877.6) |
(3,640.0) |
53.0% |
Gross profit |
3,960.7 |
- |
(3,575.6) |
3,363.6 |
4,349.2 |
89.7% |
SG&A excl. deprec. & amort. |
(1,964.9) |
- |
1,537.4 |
(1,453.0) |
(2,088.2) |
77.4% |
SG&A deprec. & amort. |
(193.4) |
- |
147.6 |
(136.0) |
(198.0) |
73.4% |
SG&A total |
(2,158.3) |
- |
1,684.9 |
(1,588.9) |
(2,286.2) |
77.0% |
Other operating income/(expenses) |
33.9 |
- |
(62.6) |
62.2 |
38.0 |
nm |
Normalized EBIT |
1,836.3 |
- |
(1,953.3) |
1,836.9 |
2,100.9 |
107.1% |
Normalized EBITDA |
2,408.3 |
- |
(2,425.8) |
2,290.7 |
2,707.8 |
101.3% |
|
|
|
|
|
|
|
LAS - 3M Recalculated at YTD Exchange Rates |
YTD22 |
Scope |
Currency Translation |
Organic Growth |
YTD23 |
% Organic |
Net revenue |
8,448.9 |
- |
(7,571.4) |
6,495.0 |
8,308.5 |
80.7% |
COGS |
(4,275.3) |
- |
3,127.8 |
(2,531.0) |
(4,013.9) |
61.9% |
COGS excl. deprec. & amort. |
(3,878.6) |
- |
2,744.0 |
(2,175.9) |
(3,608.8) |
58.6% |
Gross profit |
4,173.6 |
- |
(4,443.6) |
3,964.1 |
4,294.6 |
100.1% |
SG&A excl. deprec. & amort. |
(2,051.6) |
- |
1,851.4 |
(1,660.6) |
(2,068.4) |
84.5% |
SG&A deprec. & amort. |
(201.4) |
- |
173.5 |
(152.2) |
(196.4) |
78.7% |
SG&A total |
(2,253.0) |
- |
2,024.9 |
(1,812.8) |
(2,264.8) |
84.0% |
Other operating income/(expenses) |
37.1 |
- |
(70.8) |
66.7 |
37.4 |
196.9% |
Normalized EBIT |
1,957.7 |
- |
(2,489.4) |
2,217.9 |
2,067.2 |
120.8% |
Normalized EBITDA |
2,555.8 |
- |
(3,046.8) |
2,725.2 |
2,668.7 |
113.2% |
|
|
|
|
|
|
|
LAS - 3M Recalculation Impact in 2Q |
YTD22 |
Scope |
Currency Translation |
Organic Growth |
YTD23 |
% Organic |
Net revenue |
397.3 |
- |
(1,422.7) |
936.0 |
(89.4) |
|
COGS |
(184.4) |
- |
554.7 |
(335.5) |
34.9 |
|
COGS excl. deprec. & amort. |
(166.4) |
- |
495.8 |
(298.3) |
31.2 |
|
Gross profit |
212.9 |
- |
(868.0) |
600.5 |
(54.6) |
|
SG&A excl. deprec. & amort. |
(86.7) |
- |
314.1 |
(207.6) |
19.7 |
|
SG&A deprec. & amort. |
(8.0) |
- |
25.9 |
(16.3) |
1.6 |
|
SG&A total |
(94.7) |
- |
340.0 |
(223.9) |
21.4 |
|
Other operating income/(expenses) |
3.2 |
- |
(8.2) |
4.5 |
(0.5) |
|
Normalized EBIT |
121.4 |
- |
(536.1) |
381.1 |
(33.7) |
|
Normalized EBITDA |
147.4 |
- |
(621.0) |
434.5 |
(39.0) |
|
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 18 |
|
|
RECONCILIATION
BETWEEN NORMALIZED EBITDA & PROFIT
Both Normalized EBITDA and Normalized Operating Profit 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.
EBITDA is calculated excluding from Normalized EBITDA the following
effects: (i) Exceptional items and (ii) Share of results of associates.
Normalized EBITDA and Normalized Operating Profit 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 Normalized
Operating Profit do not have a standard calculation method and Ambev’s definition of Normalized EBITDA and Normalized Operating
Profit may not be comparable to that of other companies.
Reconciliation - Profit to EBITDA |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
R$ million |
|
|
|
|
|
Profit - Ambev holders |
2,969.7 |
2,503.0 |
6,382.5 |
6,202.5 |
Non-controlling interest |
94.3 |
94.8 |
210.4 |
214.5 |
Income tax expense |
474.6 |
(225.8) |
511.4 |
(167.4) |
Profit before taxes |
3,538.6 |
2,371.9 |
7,104.2 |
6,249.6 |
Share of results of joint ventures |
3.2 |
2.4 |
5.6 |
16.6 |
Net finance results |
495.5 |
1,073.5 |
1,092.2 |
2,071.3 |
Exceptional items |
31.2 |
123.4 |
58.4 |
151.3 |
Normalized Operating Profit |
4,068.5 |
3,571.3 |
8,260.5 |
8,488.9 |
Depreciation & amortization - total |
1,469.6 |
1,703.9 |
2,800.6 |
3,230.77 |
Normalized EBITDA |
5,538.1 |
5,275.2 |
11,061.0 |
11,719.6 |
Exceptional items |
(31.2) |
(123.4) |
(58.4) |
(151.3) |
Share of results of joint ventures |
(3.2) |
(2.4) |
(5.6) |
(16.6) |
EBITDA |
5,503.7 |
5,149.3 |
10,997.0 |
11,551.7 |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 19 |
|
|
2Q
2023 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: |
|
August 3, 2023 (Thursday) |
|
|
|
|
|
Time: |
|
12:30 (Brasília) |
|
|
|
|
11:30 (New York) |
|
|
|
|
|
|
|
|
|
|
|
|
Phone number: |
|
Brazil participants |
|
+55 (11) 4090-1621 / +55 (11) 3181-8565 |
|
|
US participants (toll free) |
|
+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://choruscall.com.br/ambev/2q23.htm
Portuguese: https://choruscall.com.br/ambev/2t23.htm
For additional information, please contact the Investor
Relations team:
Guilherme Yokaichiya |
Mariana Sabadin |
Leandro Ferreira De Souza |
|
|
|
Guilherme.yokaichiya@ambev.com.br |
mariana.sabadin@ambev.com.br |
leandro.ferreira.souza@ambev.com.br |
ri.ambev.com.br
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 20 |
|
|
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 and Operating Profit before exceptional items and share of results of joint ventures and to performance measures Profit and 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 second quarter of 2022 (2Q22). 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 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.
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 21 |
|
|
Ambev - Segment financial information |
Brazil |
CAC |
LAS |
Canada |
Ambev |
|
Organic results |
Beer |
NAB |
Total |
|
|
|
Consolidated |
|
2Q22 |
2Q23 |
% |
2Q22 |
2Q23 |
% |
2Q22 |
2Q23 |
% |
2Q22 |
2Q23 |
% |
2Q22 |
2Q23 |
% |
2Q22 |
2Q23 |
% |
2Q22 |
2Q23 |
% |
Volume ('000 hl) |
21,944.0 |
21,386.8 |
-2.5% |
7,547.1 |
7,380.5 |
-2.2% |
29,491.1 |
28,767.3 |
-2.5% |
3,041.2 |
2,957.6 |
-2.8% |
6,929.5 |
6,969.8 |
0.6% |
2,779.9 |
2,607.4 |
-6.2% |
42,241.8 |
41,302.1 |
-2.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
7,912.9 |
8,710.7 |
10.1% |
1,539.4 |
1,655.4 |
7.5% |
9,452.3 |
10,366.0 |
9.7% |
2,223.9 |
2,473.5 |
4.8% |
3,449.0 |
3,266.0 |
82.1% |
2,863.8 |
2,792.5 |
0.0% |
17,989.0 |
18,898.1 |
20.0% |
% of total |
44.0% |
46.1% |
|
8.6% |
8.8% |
|
52.5% |
54.9% |
|
12.4% |
13.1% |
|
19.2% |
17.3% |
|
15.9% |
14.8% |
|
100.0% |
100.0% |
|
COGS |
(4,319.5) |
(4,541.4) |
5.1% |
(947.2) |
(936.9) |
-1.1% |
(5,266.6) |
(5,478.3) |
4.0% |
(1,157.1) |
(1,252.8) |
2.6% |
(1,754.8) |
(1,715.9) |
76.5% |
(1,195.7) |
(1,188.6) |
1.9% |
(9,374.3) |
(9,635.6) |
16.0% |
% of total |
46.1% |
47.1% |
|
10.1% |
9.7% |
|
56.2% |
56.9% |
|
12.3% |
13.0% |
|
18.7% |
17.8% |
|
12.8% |
12.3% |
|
100.0% |
100.0% |
|
Gross profit |
3,593.4 |
4,169.3 |
16.0% |
592.3 |
718.5 |
21.3% |
4,185.7 |
4,887.7 |
16.8% |
1,066.7 |
1,220.7 |
7.1% |
1,694.2 |
1,550.1 |
88.1% |
1,668.1 |
1,604.0 |
-1.4% |
8,614.7 |
9,262.5 |
24.5% |
% of total |
41.7% |
45.0% |
|
6.9% |
7.8% |
|
48.6% |
52.8% |
|
12.4% |
13.2% |
|
19.7% |
16.7% |
|
19.4% |
17.3% |
|
100.0% |
100.0% |
|
SG&A |
(2,747.5) |
(3,053.5) |
11.1% |
(454.5) |
(552.8) |
21.6% |
(3,202.0) |
(3,606.3) |
12.6% |
(469.7) |
(535.6) |
7.0% |
(1,090.1) |
(1,039.8) |
81.7% |
(1,023.8) |
(906.0) |
-10.3% |
(5,785.7) |
(6,087.7) |
20.1% |
% of total |
47.5% |
50.2% |
|
7.9% |
9.1% |
|
55.3% |
59.2% |
|
8.1% |
8.8% |
|
18.8% |
17.1% |
|
17.7% |
14.9% |
|
100.0% |
100.0% |
|
Other operating income/(expenses) |
1,018.3 |
254.7 |
15.7% |
194.1 |
121.0 |
72.8% |
1,212.4 |
375.7 |
29.4% |
10.8 |
(6.8) |
-166.3% |
10.9 |
21.4 |
nm |
5.3 |
6.0 |
13.9% |
1,239.4 |
396.4 |
39.2% |
% of total |
82.2% |
64.3% |
|
15.7% |
30.5% |
|
97.8% |
94.8% |
|
0.9% |
-1.7% |
|
0.9% |
5.4% |
|
0.4% |
1.5% |
|
100.0% |
100.0% |
|
Normalized Operating Profit |
1,864.2 |
1,370.5 |
28.5% |
331.8 |
286.6 |
37.9% |
2,196.1 |
1,657.1 |
30.1% |
607.8 |
678.4 |
4.1% |
615.1 |
531.7 |
110.8% |
649.6 |
704.0 |
12.8% |
4,068.5 |
3,571.3 |
34.3% |
% of total |
45.8% |
38.4% |
|
8.2% |
8.0% |
|
54.0% |
46.4% |
|
14.9% |
19.0% |
|
15.1% |
14.9% |
|
16.0% |
19.7% |
|
100.0% |
100.0% |
|
Normalized EBITDA |
2,574.0 |
2,302.6 |
29.7% |
425.6 |
376.5 |
24.9% |
2,999.6 |
2,679.1 |
29.0% |
799.5 |
920.2 |
7.9% |
904.6 |
837.9 |
109.8% |
834.5 |
838.1 |
4.1% |
5,538.1 |
5,275.2 |
34.2% |
% of total |
46.5% |
43.6% |
|
7.7% |
7.1% |
|
54.2% |
50.8% |
|
14.4% |
17.4% |
|
16.3% |
15.9% |
|
15.1% |
15.9% |
|
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 |
-54.6% |
-52.1% |
|
-61.5% |
-56.6% |
|
-55.7% |
-52.8% |
|
-52.0% |
-50.6% |
|
-50.9% |
-52.5% |
|
-41.8% |
-42.6% |
|
-52.1% |
-51.0% |
|
Gross profit |
45.4% |
47.9% |
|
38.5% |
43.4% |
|
44.3% |
47.2% |
|
48.0% |
49.4% |
|
49.1% |
47.5% |
|
58.2% |
57.4% |
|
47.9% |
49.0% |
|
SG&A |
-34.7% |
-35.1% |
|
-29.5% |
-33.4% |
|
-33.9% |
-34.8% |
|
-21.1% |
-21.7% |
|
-31.6% |
-31.8% |
|
-35.8% |
-32.4% |
|
-32.2% |
-32.2% |
|
Other operating income/(expenses) |
12.9% |
2.9% |
|
12.6% |
7.3% |
|
12.8% |
3.6% |
|
0.5% |
-0.3% |
|
0.3% |
0.7% |
|
0.2% |
0.2% |
|
6.9% |
2.1% |
|
Normalized Operating Profit |
23.6% |
15.7% |
|
21.6% |
17.3% |
|
23.2% |
16.0% |
|
27.3% |
27.4% |
|
17.8% |
16.3% |
|
22.7% |
25.2% |
|
22.6% |
18.9% |
|
Normalized EBITDA |
32.5% |
26.4% |
|
27.6% |
22.7% |
|
31.7% |
25.8% |
|
36.0% |
37.2% |
|
26.2% |
25.7% |
|
29.1% |
30.0% |
|
30.8% |
27.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per hectoliter - (R$/hl) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
360.6 |
407.3 |
12.9% |
204.0 |
224.3 |
10.0% |
320.5 |
360.3 |
12.4% |
731.2 |
836.3 |
7.7% |
497.7 |
468.6 |
81.1% |
1,030.2 |
1,071.0 |
6.6% |
425.9 |
457.6 |
22.8% |
COGS |
(196.8) |
(212.3) |
7.9% |
(125.5) |
(126.9) |
1.2% |
(178.6) |
(190.4) |
6.6% |
(380.5) |
(423.6) |
5.5% |
(253.2) |
(246.2) |
75.5% |
(430.1) |
(455.8) |
8.6% |
(221.9) |
(233.3) |
18.6% |
Gross profit |
163.8 |
194.9 |
19.0% |
78.5 |
97.3 |
24.0% |
141.9 |
169.9 |
19.7% |
350.7 |
412.7 |
10.2% |
244.5 |
222.4 |
87.0% |
600.0 |
615.2 |
5.1% |
203.9 |
224.3 |
27.3% |
SG&A |
(125.2) |
(142.8) |
14.0% |
(60.2) |
(74.9) |
24.4% |
(108.6) |
(125.4) |
15.5% |
(154.4) |
(181.1) |
10.1% |
(157.3) |
(149.2) |
80.6% |
(368.3) |
(347.5) |
-4.3% |
(137.0) |
(147.4) |
22.9% |
Other operating income/(expenses) |
46.4 |
11.9 |
18.7% |
25.7 |
16.4 |
76.7% |
41.1 |
13.1 |
32.7% |
3.5 |
(2.3) |
nm |
1.6 |
3.1 |
nm |
1.9 |
2.3 |
21.4% |
29.3 |
9.6 |
42.3% |
Normalized Operating Profit |
85.0 |
64.1 |
31.9% |
44.0 |
38.8 |
41.1% |
74.5 |
57.6 |
33.4% |
199.9 |
229.4 |
7.0% |
88.8 |
76.3 |
109.5% |
233.7 |
270.0 |
20.2% |
96.3 |
86.5 |
37.4% |
Normalized EBITDA |
117.3 |
107.7 |
33.0% |
56.4 |
51.0 |
27.7% |
101.7 |
93.1 |
32.2% |
262.9 |
311.1 |
10.9% |
130.5 |
120.2 |
108.6% |
300.2 |
321.4 |
11.0% |
131.1 |
127.7 |
37.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 22 |
|
|
Ambev - Segment financial information |
Brazil |
CAC |
LAS |
Canada |
Ambev |
|
Organic results |
Beer |
NAB |
Total |
|
|
|
Consolidated |
|
YTD22 |
YTD23 |
% |
YTD22 |
YTD23 |
% |
YTD22 |
YTD23 |
% |
YTD22 |
YTD23 |
% |
YTD22 |
YTD23 |
% |
YTD22 |
YTD23 |
% |
YTD22 |
YTD23 |
% |
Volume ('000 hl) |
43,955.4 |
43,578.2 |
-0.9% |
15,122.1 |
15,505.6 |
2.5% |
59,077.5 |
59,083.7 |
0.0% |
5,923.5 |
5,696.5 |
-3.8% |
17,736.7 |
16,939.2 |
-4.5% |
4,586.4 |
4,503.9 |
-1.8% |
87,324.1 |
86,223.3 |
-1.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
R$ million |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
16,013.1 |
17,980.8 |
12.3% |
3,037.5 |
3,431.9 |
13.0% |
19,050.6 |
21,412.7 |
12.4% |
4,506.7 |
4,779.1 |
4.3% |
8,051.6 |
8,398.0 |
72.6% |
4,819.3 |
4,840.0 |
6.1% |
36,428.1 |
39,429.9 |
23.3% |
% of total |
44.0% |
45.6% |
|
8.3% |
8.7% |
|
52.3% |
54.3% |
|
12.4% |
12.1% |
|
22.1% |
21.3% |
|
13.2% |
12.3% |
|
100.0% |
100.0% |
|
COGS |
(8,511.6) |
(9,332.9) |
9.6% |
(1,853.1) |
(1,937.7) |
4.6% |
(10,364.7) |
(11,270.6) |
8.7% |
(2,322.9) |
(2,376.8) |
0.9% |
(4,090.9) |
(4,048.8) |
56.2% |
(2,010.2) |
(2,071.1) |
8.8% |
(18,788.7) |
(19,767.3) |
17.7% |
% of total |
45.3% |
47.2% |
|
9.9% |
9.8% |
|
55.2% |
57.0% |
|
12.4% |
12.0% |
|
21.8% |
20.5% |
|
10.7% |
10.5% |
|
100.0% |
100.0% |
|
Gross profit |
7,501.5 |
8,647.9 |
15.3% |
1,184.4 |
1,494.2 |
26.2% |
8,685.9 |
10,142.2 |
16.8% |
2,183.8 |
2,402.3 |
8.0% |
3,960.7 |
4,349.2 |
89.7% |
2,809.0 |
2,768.9 |
4.1% |
17,639.4 |
19,662.6 |
29.3% |
% of total |
42.5% |
44.0% |
|
6.7% |
7.6% |
|
49.2% |
51.6% |
|
12.4% |
12.2% |
|
22.5% |
22.1% |
|
15.9% |
14.1% |
|
100.0% |
100.0% |
|
SG&A |
(5,258.8) |
(5,852.1) |
11.3% |
(849.9) |
(1,064.0) |
25.2% |
(6,108.7) |
(6,916.0) |
13.2% |
(863.9) |
(1,037.6) |
18.1% |
(2,158.3) |
(2,286.2) |
77.0% |
(1,874.2) |
(1,811.4) |
2.1% |
(11,005.1) |
(12,051.2) |
23.8% |
% of total |
47.8% |
48.6% |
|
7.7% |
8.8% |
|
55.5% |
57.4% |
|
7.9% |
8.6% |
|
19.6% |
19.0% |
|
17.0% |
15.0% |
|
100.0% |
100.0% |
|
Other operating income/(expenses) |
1,300.4 |
603.5 |
42.2% |
248.8 |
218.8 |
97.1% |
1,549.1 |
822.3 |
53.5% |
34.9 |
4.5 |
-87.5% |
33.9 |
38.0 |
nm |
8.2 |
12.8 |
64.1% |
1,626.2 |
877.5 |
53.1% |
% of total |
80.0% |
68.8% |
|
15.3% |
24.9% |
|
95.3% |
93.7% |
|
2.1% |
0.5% |
|
2.1% |
4.3% |
|
0.5% |
1.5% |
|
100.0% |
100.0% |
|
Normalized Operating Profit |
3,543.0 |
3,399.4 |
27.5% |
583.3 |
649.1 |
45.7% |
4,126.3 |
4,048.5 |
30.1% |
1,354.8 |
1,369.2 |
-0.9% |
1,836.3 |
2,100.9 |
107.1% |
943.0 |
970.3 |
8.7% |
8,260.5 |
8,488.9 |
39.9% |
% of total |
42.9% |
40.0% |
|
7.1% |
7.6% |
|
50.0% |
47.7% |
|
16.4% |
16.1% |
|
22.2% |
24.7% |
|
11.4% |
11.4% |
|
100.0% |
100.0% |
|
Normalized EBITDA |
4,938.7 |
5,146.7 |
26.7% |
770.5 |
863.8 |
36.5% |
5,709.3 |
6,010.5 |
28.0% |
1,692.0 |
1,770.6 |
2.6% |
2,408.3 |
2,707.8 |
101.3% |
1,251.4 |
1,230.7 |
3.9% |
11,061.0 |
11,719.6 |
37.4% |
% of total |
44.6% |
43.9% |
|
7.0% |
7.4% |
|
51.6% |
51.3% |
|
15.3% |
15.1% |
|
21.8% |
23.1% |
|
11.3% |
10.5% |
|
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 |
-53.2% |
-51.9% |
|
-61.0% |
-56.5% |
|
-54.4% |
-52.6% |
|
-51.5% |
-49.7% |
|
-50.8% |
-48.2% |
|
-41.7% |
-42.8% |
|
-51.6% |
-50.1% |
|
Gross profit |
46.8% |
48.1% |
|
39.0% |
43.5% |
|
45.6% |
47.4% |
|
48.5% |
50.3% |
|
49.2% |
51.8% |
|
58.3% |
57.2% |
|
48.4% |
49.9% |
|
SG&A |
-32.8% |
-32.5% |
|
-28.0% |
-31.0% |
|
-32.1% |
-32.3% |
|
-19.2% |
-21.7% |
|
-26.8% |
-27.2% |
|
-38.9% |
-37.4% |
|
-30.2% |
-30.6% |
|
Other operating income/(expenses) |
8.1% |
3.4% |
|
8.2% |
6.4% |
|
8.1% |
3.8% |
|
0.8% |
0.1% |
|
0.4% |
0.5% |
|
0.2% |
0.3% |
|
4.5% |
2.2% |
|
Normalized Operating Profit |
22.1% |
18.9% |
|
19.2% |
18.9% |
|
21.7% |
18.9% |
|
30.1% |
28.6% |
|
22.8% |
25.0% |
|
19.6% |
20.0% |
|
22.7% |
21.5% |
|
Normalized EBITDA |
30.8% |
28.6% |
|
25.4% |
25.2% |
|
30.0% |
28.1% |
|
37.5% |
37.0% |
|
29.9% |
32.2% |
|
26.0% |
25.4% |
|
30.4% |
29.7% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per hectoliter - (R$/hl) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue |
364.3 |
412.6 |
13.3% |
200.9 |
221.3 |
10.2% |
322.5 |
362.4 |
12.4% |
760.8 |
839.0 |
8.5% |
454.0 |
495.8 |
80.8% |
1,050.8 |
1,074.6 |
8.0% |
417.2 |
457.3 |
24.9% |
COGS |
(193.6) |
(214.2) |
10.6% |
(122.5) |
(125.0) |
2.0% |
(175.4) |
(190.8) |
8.7% |
(392.2) |
(417.2) |
4.9% |
(230.6) |
(239.0) |
63.6% |
(438.3) |
(459.9) |
10.8% |
(215.2) |
(229.3) |
19.2% |
Gross profit |
170.7 |
198.4 |
16.3% |
78.3 |
96.4 |
23.0% |
147.0 |
171.7 |
16.8% |
368.7 |
421.7 |
12.3% |
223.3 |
256.8 |
98.7% |
612.5 |
614.8 |
6.0% |
202.0 |
228.0 |
31.0% |
SG&A |
(119.6) |
(134.3) |
12.2% |
(56.2) |
(68.6) |
22.1% |
(103.4) |
(117.1) |
13.2% |
(145.8) |
(182.2) |
22.8% |
(121.7) |
(135.0) |
85.3% |
(408.6) |
(402.2) |
4.0% |
(126.0) |
(139.8) |
25.3% |
Other operating income/(expenses) |
29.6 |
13.8 |
43.4% |
16.5 |
14.1 |
92.2% |
26.2 |
13.9 |
53.5% |
5.9 |
0.8 |
-87.0% |
1.9 |
2.2 |
nm |
1.8 |
2.8 |
67.1% |
18.6 |
10.2 |
55.1% |
Normalized Operating Profit |
80.6 |
78.0 |
28.6% |
38.6 |
41.9 |
42.1% |
69.8 |
68.5 |
30.0% |
228.7 |
240.4 |
3.0% |
103.5 |
124.0 |
116.9% |
205.6 |
215.4 |
10.7% |
94.6 |
98.5 |
41.7% |
Normalized EBITDA |
112.4 |
118.1 |
27.8% |
51.0 |
55.7 |
33.1% |
96.6 |
101.7 |
28.0% |
285.6 |
310.8 |
6.7% |
135.8 |
159.9 |
110.8% |
272.9 |
273.2 |
5.8% |
126.7 |
135.9 |
39.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 23 |
|
|
CONSOLIDATED BALANCE SHEET |
|
|
R$ million |
December 31, 2022 |
June 30, 2023 |
|
|
|
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
14,926.4 |
12,117.0 |
Investment securities |
454.5 |
313.5 |
Trade receivables |
5,349.1 |
4,877.7 |
Derivative financial instruments |
272.3 |
276.2 |
Inventories |
12,923.0 |
12,055.0 |
Income tax and social contributions receivable |
1,808.7 |
2,185.6 |
Recoverable indirect taxes |
1,044.8 |
1,208.5 |
Other assets |
1,037.9 |
1,290.6 |
Total |
37,816.7 |
34,324.1 |
|
|
|
Non-current assets |
|
|
Investment securities |
219.1 |
246.8 |
Derivative financial instruments |
1.5 |
0.0 |
Income tax and social contributions receivable |
4,607.5 |
4,022.5 |
Recoverable indirect taxes |
6,708.8 |
6,827.6 |
Deferred tax assets |
6,438.8 |
8,069.7 |
Other assets |
1,905.2 |
1,675.0 |
Employee benefits |
56.6 |
53.1 |
Long term assets |
19,937.5 |
20,894.8 |
|
|
|
Investments in joint ventures |
331.9 |
329.4 |
Property, plant and equipment |
30,055.7 |
29,284.8 |
Intangible |
9,222.2 |
9,141.4 |
Goodwill |
40,594.0 |
39,319.8 |
Total |
100,141.4 |
98,970.3 |
|
|
|
Total assets |
137,958.1 |
133,294.4 |
|
|
|
Equity and liabilities |
|
|
Current liabilities |
|
|
Trade payables |
24,328.5 |
18,580.0 |
Derivative financial instruments |
729.4 |
1,525.1 |
Interest-bearing loans and borrowings |
982.6 |
1,320.4 |
Bank overdrafts |
74.3 |
103.9 |
Payroll and social security payables |
2,335.8 |
1,938.7 |
Dividends and interest on shareholder´s equity payable |
1,464.8 |
1,436.5 |
Income tax and social contribution payable |
1,118.6 |
1,082.6 |
Taxes and contributions payable |
5,812.9 |
3,726.5 |
Put option granted on subsidiaries and other liabilities |
3,512.8 |
3,928.4 |
Provisions |
180.7 |
479.7 |
Total |
40,540.5 |
34,121.8 |
|
|
|
Non-current liabilities |
|
|
Trade payables |
509.4 |
440.5 |
Interest-bearing loans and borrowings |
2,788.1 |
2,671.9 |
Deferred tax liabilities |
3,725.7 |
3,725.7 |
Income tax and social contribution payable |
1,598.6 |
1,581.1 |
Taxes and contributions payable |
671.0 |
482.0 |
Put option granted on subsidiary and other liabilities |
1,896.8 |
1,454.1 |
Provisions |
739.0 |
469.1 |
Employee benefits |
2,161.1 |
1,982.3 |
Total |
14,089.7 |
12,806.7 |
|
|
|
Total liabilities |
54,630.3 |
46,928.4 |
|
|
|
Equity |
|
|
Issued capital |
58,130.5 |
58,177.9 |
Reserves |
92,246.6 |
92,382.0 |
Comprehensive income |
(68,421.5) |
(74,217.7) |
Retained earnings |
- |
8,732.4 |
Equity attributable to equity holders of Ambev |
81,955.6 |
85,074.6 |
Non-controlling interests |
1,372.2 |
1,291.4 |
Total Equity |
83,327.8 |
86,366.0 |
|
|
|
Total equity and liabilities |
137,958.1 |
133,294.4 |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 24 |
|
|
CONSOLIDATED INCOME STATEMENT |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
R$ million |
|
|
|
|
|
Net revenue |
17,989.0 |
18,898.1 |
36,428.1 |
39,429.9 |
Cost of goods sold |
(9,374.3) |
(9,635.6) |
(18,788.7) |
(19,767.3) |
Gross profit |
8,614.7 |
9,262.5 |
17,639.4 |
19,662.6 |
|
|
|
|
|
Distribution expenses |
(2,615.0) |
(2,681.7) |
(5,144.0) |
(5,598.4) |
Sales and marketing expenses |
(1,875.9) |
(2,090.4) |
(3,392.9) |
(3,831.7) |
Administrative expenses |
(1,294.8) |
(1,315.6) |
(2,468.2) |
(2,621.2) |
Other operating income/(expenses) |
1,239.4 |
396.4 |
1,626.2 |
877.5 |
|
|
|
|
|
Normalized Operating Profit |
4,068.5 |
3,571.3 |
8,260.5 |
8,488.9 |
|
|
|
|
|
Exceptional items |
(31.2) |
(123.4) |
(58.4) |
(151.3) |
|
|
|
|
|
Income from operations |
4,037.3 |
3,447.8 |
8,202.0 |
8,337.5 |
|
|
|
|
|
Net finance results |
(495.5) |
(1,073.5) |
(1,092.2) |
(2,071.3) |
Share of results of joint ventures |
(3.2) |
(2.4) |
(5.6) |
(16.6) |
|
|
|
|
|
Profit before income tax |
3,538.6 |
2,371.9 |
7,104.2 |
6,249.6 |
|
|
|
|
|
Income tax expense |
(474.6) |
225.8 |
(511.4) |
167.4 |
|
|
|
|
|
Profit |
3,064.0 |
2,597.8 |
6,592.9 |
6,417.0 |
Equity holders of Ambev |
2,969.7 |
2,503.0 |
6,382.5 |
6,202.5 |
Non-controlling interest |
94.3 |
94.8 |
210.4 |
214.5 |
|
|
|
|
|
Basic earnings per share (R$) |
0.19 |
0.16 |
0.41 |
0.39 |
Diluted earnings per share (R$) |
0.19 |
0.16 |
0.40 |
0.39 |
|
|
|
|
|
Normalized Profit |
3,085.8 |
2,681.0 |
6,637.4 |
6,520.7 |
|
|
|
|
|
Normalized basic earnings per share (R$) |
0.19 |
0.16 |
0.41 |
0.40 |
Normalized diluted earnings per share (R$) |
0.19 |
0.16 |
0.41 |
0.40 |
|
|
|
|
|
Nº of basic shares outstanding (million of shares) |
15,743.8 |
15,747.4 |
15,740.6 |
15,745.3 |
Nº of diluted shares outstanding (million if shares) |
15,856.0 |
15,846.2 |
15,852.7 |
15,844.1 |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
Page | 25 |
|
|
CONSOLIDATED STATEMENT OF CASH FLOWS |
2Q22 |
2Q23 |
YTD22 |
YTD23 |
R$ million |
|
|
|
|
|
Profit |
3,064.0 |
2,597.8 |
6,592.9 |
6,417.0 |
Depreciation, amortization and impairment |
1,469.6 |
1,703.9 |
2,800.6 |
3,230.8 |
Impairment losses on receivables and inventories |
66.8 |
74.8 |
138.9 |
184.2 |
Additions/(reversals) in provisions and employee benefits |
39.7 |
48.1 |
50.2 |
72.1 |
Net finance cost |
495.5 |
1,073.5 |
1,092.2 |
2,071.3 |
Loss/(gain) on sale of property, plant and equipment and intangible assets |
(12.5) |
(14.5) |
(45.9) |
(42.6) |
Equity-settled share-based payment expense |
73.1 |
104.7 |
151.0 |
181.9 |
Income tax expense |
474.6 |
(225.8) |
511.4 |
(167.4) |
Share of result of joint ventures |
3.2 |
2.4 |
5.6 |
16.6 |
Hedge operations results |
(140.5) |
(136.5) |
(496.2) |
(241.3) |
Other non-cash items included in the profit |
(3.5) |
(9.0) |
(18.4) |
(9.0) |
Cash flow from operating activities before changes in working capital and provisions |
5,530.0 |
5,219.3 |
10,782.2 |
11,713.6 |
(Increase)/decrease in trade and other receivables |
(877.0) |
48.0 |
(19.9) |
(208.4) |
(Increase)/decrease in inventories |
(923.9) |
333.8 |
(2,176.0) |
(162.6) |
Increase/(decrease) in trade and other payables |
(1,834.0) |
(1,793.4) |
(4,471.6) |
(5,885.4) |
Cash generated from operations |
1,895.2 |
3,807.7 |
4,114.7 |
5,457.2 |
Interest paid |
(137.4) |
(147.2) |
(213.6) |
(287.9) |
Interest received |
264.1 |
208.5 |
383.6 |
372.4 |
Dividends received |
3.0 |
0.3 |
5.1 |
5.3 |
Income tax and social contributions paid |
177.3 |
(453.7) |
(1,567.8) |
(2,707.6) |
Cash flow from operating activities |
2,202.2 |
3,415.7 |
2,722.0 |
2,839.4 |
|
|
|
|
|
Proceeds from sale of property, plant, equipment and intangible assets |
20.9 |
34.4 |
58.2 |
58.3 |
Acquisition of property, plant, equipment and intangible assets |
(1,753.1) |
(1,295.7) |
(2,641.6) |
(2,448.7) |
Acquisition of subsidiaries, net of cash acquired |
(0.6) |
- |
(2.9) |
- |
Acquisition of other investments |
(30.0) |
(1.9) |
(30.0) |
(8.4) |
(Investments)/net proceeds of debt securities |
(204.6) |
44.8 |
341.8 |
99.7 |
Net proceeds/(acquisition) of other assets |
15.0 |
- |
15.0 |
- |
Cash flow used in investing activities |
(1,952.3) |
(1,218.4) |
(2,259.5) |
(2,299.1) |
|
|
|
|
|
Capital increase |
- |
- |
23.8 |
14.5 |
Proceeds/(repurchase) of shares |
(48.0) |
(20.2) |
(55.8) |
(25.1) |
Acquisition of non-controlling interests |
(0.1) |
- |
(0.1) |
- |
Proceeds from borrowings |
68.9 |
(7.1) |
127.9 |
38.4 |
Repayment of borrowings |
(29.7) |
(54.8) |
(76.0) |
(132.0) |
Cash net finance costs other than interests |
346.9 |
(1,211.3) |
(2,214.0) |
(1,938.6) |
Payment of lease liabilities |
(206.6) |
(284.6) |
(372.0) |
(513.3) |
Dividends and interest on shareholders’ equity paid |
(142.9) |
(128.6) |
(164.9) |
(166.8) |
Cash flow from financing activities |
(11.4) |
(1,706.6) |
(2,731.1) |
(2,722.9) |
|
|
|
|
|
Net increase/(decrease) in Cash and cash equivalents |
238.4 |
490.8 |
(2,268.6) |
(2,182.6) |
Cash and cash equivalents less bank overdrafts at the beginning of the period |
12,796.5 |
12,057.0 |
16,597.2 |
14,852.1 |
Effect of exchange rate fluctuations |
575.8 |
(534.7) |
(717.9) |
(656.5) |
Cash and cash equivalents less bank overdrafts at the end of the period |
13,610.7 |
12,013.1 |
13,610.7 |
12,013.1 |
| | |
ambev.com.br | | Press Release – August 3, 2023 |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: August 3, 2023
|
|
|
|
AMBEV S.A. |
|
|
|
|
By: |
/s/ Lucas Machado Lira |
|
Lucas Machado Lira
Chief Financial and Investor Relations Officer |
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