Brazilian brewing company Ambev SA (NYSE:ABEV) reported first-quarter FY24 net revenue decline of 1.2% to R$20.3 billion. On an organic basis, net revenue gained 4.5%. Net revenue per hl slipped 1.4%.
Consolidated volume was virtually flat (+0.1%), as positive performances in Brazil (+6.5% in NAB and +3.6% in Beer) and Central America and the Caribbean (CAC) (+5.6%) were offset by Latin America South (-12.7%) and Canada (-7.7%).
Gross profit for the quarter dropped 1.8% to R$10.2 billion, and the margin contracted 30 basis points to 50.4%.
Normalized profit dropped 0.6% to R$3.8 billion. Normalized EBITDA climbed 1.4% to R$6.5 billion, and the normalized EBITDA margin expanded by 80 basis points to 32.2%.
Ambev held R$12.8 billion in cash and equivalents as of March-end.
"Our continued commercial momentum delivered a strong start to the year with double-digit Normalized
EBITDA growth (with margin expansion)," said CEO Jean Jereissati.
Price Action: ABEV shares are trading lower by 3.66% at $2.37 at the last check Wednesday.