SAO PAULO, July 31, 2014 /PRNewswire/ -- Ambev S.A.
[BOVESPA: ABEV3; NYSE: ABEV] announces today its results for the
2014 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 30, 2014 filed with the CVM and
submitted to the SEC.
Operating and Financial Highlights
Top line performance: During the quarter we delivered
9.2% net revenue growth. Volume expanded 4.9% while net revenue per
hectoliter (NR/hl) grew 4.1%. This performance was mainly driven by
a double-digit result in Brazil
(11.3% net revenue growth), in both Beer (+11.2%) and CSD (+11.7%),
and Hila-Ex (+19.2% net revenue growth).
Cost of Goods Sold (COGS): Our COGS increased 15.5% in
2Q14. On a per hectoliter basis, costs increased 10.2%, mainly
explained by a one time negative packaging mix related to the 2014
FIFA World Cup in Brazil on top of
the impact from higher currency hedges in Brazil, LAS and Canada, partially offset by favorable
commodities hedges.
Selling, General & Administrative (SG&A)
expenses: SG&A expenses (excluding depreciation and
amortization) were up 6.8% in the quarter. This was mainly driven
by (i) sales and marketing expenses, as this quarter concentrated
most of the initiatives related to the 2014 FIFA World Cup; (ii)
higher distribution costs, impacted by volumes and a higher weight
of direct distribution in Brazil
and (iii) inflationary pressures in Argentina.
EBITDA, Gross margin and EBITDA margin: Our Normalized
EBITDA grew 5.4% in 2Q14, reaching R$
3,327.4 million. Normalized EBITDA margin contracted 150
basis points to 40.7% driven by a gross margin contraction of 210
basis points to 62.8%, mainly explained by the one-time negative
packaging mix impact in Brazil.
Normalized Net Profit and EPS: Our Normalized Net Profit
was R$ 2,222.7 million in the
quarter, 16.0% above last year, positively impacted by our
operational performance and a lower effective tax rate. Normalized
Earnings Per Share (EPS) were up 16.7% to R$
0.14 in the quarter.
Operating Cash generation and CAPEX: Cash generated from
our operations in 2Q14 improved 15.7% when compared to the same
period last year, totaling R$ 2,982.6
million. During the second quarter of 2014 we invested a
total of R$ 1,120.6 million in
capital expenditures.
Pay-out and Financial discipline: On July 14th, we announced a dividend and
interest on capital distribution totaling R$
2.5 billion that will be paid as from August 28th. Year to date, we have
already paid/announced close to R$ 8.5
billion in cash payout, a 67% increase over the same period
of last year. As of June
30th, our net cash position was R$ 3,748.8 million, not accounting yet for
distribution announced on July
14th, 2014.
|
Financial
Highlights – Ambev
|
2Q13
|
|
%
As
|
%
|
YTD13
|
|
%
As
|
%
|
|
Consolidated
|
Reference
|
Reference
|
|
R$
million
|
Base
|
2Q14
|
Reported
|
Organic
|
Base
|
YTD14
|
Reported
|
Organic
|
|
Total
volumes
|
37,303.1
|
39,310.6
|
5.4%
|
4.9%
|
77,521.1
|
82,295.2
|
6.2%
|
5.9%
|
|
Beer
|
27,163.5
|
28,580.6
|
5.2%
|
4.6%
|
55,947.6
|
59,785.8
|
6.9%
|
6.5%
|
|
CSD and
NANC
|
10,139.6
|
10,730.0
|
5.8%
|
5.8%
|
21,573.5
|
22,509.5
|
4.3%
|
4.3%
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
7,570.2
|
8,177.4
|
8.0%
|
9.2%
|
15,402.2
|
17,222.5
|
11.8%
|
13.1%
|
|
Gross
profit
|
4,903.2
|
5,136.8
|
4.8%
|
5.8%
|
10,037.4
|
11,173.5
|
11.3%
|
12.7%
|
|
Gross
margin
|
64.8%
|
62.8%
|
-200 bps
|
-210 bps
|
65.2%
|
64.9%
|
-30 bps
|
-20 bps
|
|
EBITDA
|
3,233.3
|
3,320.2
|
2.7%
|
4.5%
|
6,856.4
|
7,364.6
|
7.4%
|
9.8%
|
|
EBITDA
margin
|
42.7%
|
40.6%
|
-210 bps
|
-190 bps
|
44.5%
|
42.8%
|
-170 bps
|
-120 bps
|
|
Normalized
EBITDA
|
3,238.6
|
3,327.4
|
2.7%
|
5.4%
|
6,862.7
|
7,378.4
|
7.5%
|
10.3%
|
|
Normalized EBITDA
margin
|
42.8%
|
40.7%
|
-210 bps
|
-150 bps
|
44.6%
|
42.8%
|
-180 bps
|
-110 bps
|
|
Profit
|
1,911.3
|
2,215.6
|
15.9%
|
|
4,284.6
|
4,812.4
|
12.3%
|
|
|
Normalized
Profit
|
1,916.6
|
2,222.7
|
16.0%
|
|
4,290.8
|
4,826.1
|
12.5%
|
|
|
EPS
(R$/shares)
|
0.12
|
0.14
|
16.8%
|
|
0.27
|
0.30
|
12.6%
|
|
|
Normalized
EPS
|
0.12
|
0.14
|
16.7%
|
|
0.27
|
0.30
|
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 second quarter of 2013 (Q2 2013).
Values in this release may not add up due to rounding.
SOURCE Ambev America Beverage