Q3 2024 Ambev SA Earnings Call Transcript
Key Points
- Ambev SA (ABEV) delivered another solid quarter of growth and profitability, with mid-single-digit top-line growth and high single-digit gross profit growth.
- The company achieved record volumes in Brazil, with premium and core plus brands growing significantly, particularly Corona, Spaten, and Original.
- Ambev SA (ABEV) has made significant strides in innovation, particularly in the beyond beer category and balanced lifestyle brands, including gluten-free and low-calorie beers.
- The company has successfully leveraged technology, with platforms like BEES and Zé Delivery enhancing market reach and customer service.
- Ambev SA (ABEV) has maintained strong cash flow generation, with cash flow from operating activities growing over 2% despite tax headwinds in Brazil.
- Ambev SA (ABEV) faced a tough consumption environment in Argentina, with volumes declining in the mid-teens.
- Normalized profit declined around 11% despite EBITDA growth, impacted by tax headwinds in Brazil.
- The company experienced challenges in Panama due to industry contraction driven by recent tax increases.
- In Brazil, the core brands declined by low single digits, with Skol suffering more than expected.
- Ambev SA (ABEV) anticipates cost headwinds in 2025, particularly from aluminum and currency fluctuations.
Good morning, good afternoon, and thank you for waiting. We would like to welcome everyone to Ambev's 2024 third quarter results conference call. Today with us, we have Mr. Jean Jereissati, Ambev's CEO; Mr. Lucas Lira, CFO and Investor Relations Officer. As a reminder, a slide presentation is available for downloading on our website, ri.ambev.com.br as well as through the webcast link of this call.
We would like to inform you that this event is being recorded (Operator Instructions)
Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future.
Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future
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