The following is a summary of the Ambev S.A. (ABEV) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Ambev's Q1 focusing on Brazil, CAC, Canada, and Argentina yielded positive results with Beer volumes in Brazil growing 3.6% and net revenue per hectoliter grew 0.9% versus last year.

• EBITDA grew about 12%, 15% excluding Argentina. Gross margins expanded 100 basis points organically, 150 basis points excluding Argentina. EBITDA margin expanded 240 basis points organically, 290 basis points excluding Argentina.

• Cash flow from operating activities totaled BRL 718 million, suggesting a positive financial performance.

• Yearly interest expenses were reported to have reduced due to already exercised CND put options.

• Cash flows generated in 2023 indicated a higher start to the year cash balance, translating into higher interest income for 2024.

Business Progress:

• Ambev reported strong brand health focusing on Corona, Spaten, Brahma, and Budweiser.

• Expansion and addition of new third-party products in the marketplace were in progress, serving to improve customer experience.

• Despite operating challenges in Latin America, the company maintains a focus on consistent and sustainable results, expanding margins, and improving cash flow.

• Upcoming annual sustainability report displays a commitment to sustainability.

• The company is moving towards resolving outstanding administrative issues including tax litigation.

• The growth trend of low-sugar and non-sugar products in NABs, capitalizing on increasing market share in this segment is highlighted.

• The company's revenue per hectoliter was impacted by taxes and changes in their channel mix, including a shift to dedicated wholesalers- seen as an intentional and structural change aimed at long term gain.

• The competitive landscape witnessed strengthening positions for their brands Antarctica and Brahma, indicating a market share gain.

More details: Ambev SA IR

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