Brazilian Beer Maker Ambev Clocks Higher Profit In Q3 Aided By FX & Commodities Tailwinds

Ambev SA ABEV reported a third-quarter FY23 sales decline of 1.3% year-on-year to R$20.31 billion.

The company recorded a 2.0% volume decline, coupled with FX and commodities tailwinds in its costs and increased efficiencies in distribution and administrative expenses. 

Adjusted EPS of R$0.25 increased 26% Y/Y. Organic net revenue increased 19.3%.

Gross profit for the quarter increased 1.6% to R$10.1 billion and the profit margin expanded 140 basis points to 49.7%.

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The adjusted operating income climbed 20.5% to R$4.9 billion and the adjusted operating margin expanded 440 basis points to 24.2%.

Adjusted EBITDA for the quarter jumped 17.6% to R$6.6 billion and the adjusted EBITDA margin expanded 520 basis points to 32.4%.

Total consolidated debt as of September 30, 2023, totaled R$3.72 billion. Operating cash flow grew 29.7% to R$7.92 billion.

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Price Action: ABEV shares are trading higher by 3.50% at $2.52 on the last check Tuesday.