Ambev's Q2 2025 Earnings Call: Unpacking the Contradictions in Revenue and Brand Strategies

Revenue management and pricing strategy, Skol brand recovery strategy, cost management and margin expansion, marketplace GMV growth and SKU expansion, and pricing strategy and inflation management are the key contradictions discussed in Ambev's latest 2025Q2 earnings call.



Volume and Weather Impact:
- Ambev's beer volumes in Brazil declined by 9%, mostly driven by unfavorable weather conditions with 65 colder days compared to last year.
- The decline in volumes was also attributed to a mid-teens decline in June due to 2 to 4 degrees Celsius lower temperatures in critical regions, impacting beer consumption.

Earnings Performance and Margin Expansion:
- Ambev reported a normalization of EBITDA with a high single-digit increase, representing an expansion of 110 basis points in margin despite soft industry volumes.
- The margin expansion was due to disciplined revenue management initiatives, including pricing strategies, and cost efficiency efforts that offset non-commodity cost inflation.

Digital Platform Growth:
- The Bees Marketplace achieved a 90% increase in GMV, reaching an annualized amount of BRL 7.4 billion, with Brazil seeing a 100% increase.
- Growth was driven by partnerships with companies like Nestle and L'Oréal, improved service levels that increased customer engagement, and an increase in the number of SKUs per POC.

Cost Management and Currency Impact:
- Ambev offset non-commodity cost inflation, saving over BRL 500 million in the quarter, primarily through SKU rationalization and distribution efficiency improvements.
- Financial results were affected by a 12% devaluation of the Argentine peso and FX losses in Bolivia, impacting net income.

Premium Segments and Brand Equity:
- Premium and super Premium segments delivered low teens growth, expanding their presence in 7 out of Ambev's top 10 markets.
- Despite a market share decline due to revenue management decisions, brand equity improved, softening the share loss impact, and brand power metrics showed positive trends.