- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

ABEV

ABEV fundamentals

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