- **Revenue Resilience**: 7% net revenue per hectoliter growth and 3% EBITDA expansion despite industry volume decline.
- **Cost Management Excellence**: Cash COGS growth below net revenue, enabling 8% EPS growth and BRL 2.5 billion buyback.
- **Premium Growth**: 9% volume rise in premium/super-premium beers, 50% market share in Brazil.
- **Digital Momentum**: BEES Marketplace GMV doubles to BRL 8 billion annually; Zé Delivery GMV +7%.
- **Strategic Buyback**: Reinforces confidence in long-term value creation alongside BRL 6 billion annual dividends.

**【CEO Opening Remarks】**
- **Revenue Growth**: Net revenue grew 4% year-to-date (YTD), driven by a 7% increase in net revenue per hectoliter. EBITDA expanded by 7% YTD with a 120 basis point margin improvement.
- **Cost Efficiency**: Cash COGS per hectoliter growth outpaced net revenue, supporting an 8% normalized EPS rise. A BRL 2.5 billion share buyback program was announced to return cash to shareholders.
- **Strategic Pillars**: 
  1. **Category Leadership**: Premium and super-premium beers grew 9% in volume, with non-alcohol and flavored beers leading innovation. 
  2. **Digital Ecosystem**: BEES Marketplace GMV doubled to BRL 8 billion annually, while Zé Delivery GMV rose 7% despite industry softness. 
  3. **Cost Optimization**: Disciplined cost management offset FX and commodity pressures, keeping costs flat quarter-over-quarter.
- **Market Performance**: Brazil beer volumes declined due to colder weather (70% impact) and disposable income constraints, but premium brands gained 50% market share. Argentina and Canada outperformed industry trends.

**【CFO Financial Commentary】**
- **Net Income**: Normalized net income reached BRL 3.8 billion (+7% YoY), driven by a lower tax rate (6.7% vs. 23.6% YoY). One-off tax benefits totaled BRL 630 million.
- **Financial Expenses**: Higher FX hedging costs and U.S. dollar sourcing in Bolivia added BRL 400 million to net financial expenses.
- **Cash Flow**: Operating cash flow was BRL 6.9 billion, down BRL 1.2 billion YoY due to slower monetization of tax credits.
- **Share Buyback**: A new BRL 2.5 billion program began post-June, complementing BRL 6 billion in annual dividends.

**【Q&A Highlights】**
- **COGS Performance**: Cost savings from SKU rationalization, vertical operations, and production efficiency offset lower volumes. Guidance for Brazil beer COGS per hectoliter (5.5%-7%) remains unchanged.
- **Industry Volume Decline**: 70% attributed to weather, 30% to disposable income. Consumer engagement metrics (equity, participation) remain stable.
- **Premium Beer Share**: 50% market share in premium/super-premium segments, highest since 2015, driven by Original, Stella, and Corona.
- **SG&A Efficiency**: 0.4% YTD reduction from fixed cost absorption and variable compensation adjustments. Sales/marketing spend maintained as a percentage of revenue.
- **Argentina/LAS**: Bolivia offset Argentina's economic challenges, with BEES revenue management improving margins despite slower demand recovery.

Ambev S.A. (ABEV) Q3 2025 Earnings Call Transcript

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