Ambev's 2025 Q1 Earnings Call: Key Contradictions on Pricing, Market Recovery, and Growth Expectations

Pricing strategy and market conditions in Brazil, Argentine market recovery, cost guidance and cost management, volume growth expectations are the key contradictions discussed in Ambev's latest 2025Q1 earnings call.



Strong First Quarter Results:
- Ambev S.A. reported a resilient top line with a high-single-digit increase, including a 0.7% volume growth and a gross margin expansion of 150 basis points.
- The growth was driven by consistent execution across strategic pillars, increased volumes in main markets, and strong brand performance.

Digitalization and E-commerce Expansion:
- Ambev's digital platform Zé Delivery fulfilled nearly 17 million orders in the quarter, a 5% increase year-over-year.
- The expansion was supported by increasing customer demand, improved understanding of consumer behaviors, and new product development using consumer surveys.

Brazil Market Performance:
- In Brazil, beer volumes increased by 0.7%, and net revenue per hectoliter grew by 6%, contributing to a 260 basis points improvement in gross margin.
- The positive results were due to strategic pricing and brand positioning, particularly in the premiumization segment.

Argentina Market Recovery:
- In Argentina, while beer industry volumes declined by low-single digits, Ambev's market share remained stable, with improvements in brand health for mega brands.
- Sequential improvements in the overall consumer environment and strategic brand investments contributed to the market recovery.