Ambev Sees 4.8% Revenue Growth, But Brazil Disappoints
Brazilian brewer and soft drinks producer Ambev has reported a 4.8% growth in net revenue during the second quarter of 2017, to R$10.37 billion (€2.8 billion).
The result was driven by growth in all international operations, except Brazil, where revenue decreased by 4.1% and volume fell 4.7%.
In Central America and the Caribbean, net revenue was up by 6.9% and volume increased organically by 1.6%, while in Latin America South both net revenue and volume were up by 36.2% and 12.2% respectively. In Canada, net revenue increased by 1.4%, but volume dropped 0.4%.
The company's adjusted net profit for the quarter was R$2.14 billion (-2.4% year-on-year), while capital expenditure amounted to R$751 million (-34.8%).
The mainstream beer segment continued to be pressured by adverse and volatile macroeconomic and political environments. The Premium segment, however, grew between 17% and 19% over the previous year.
The company’s soft drinks unit in Brazil (RefrigeNanc Brasil) saw an 8.5% drop in net revenue in the quarter. The soft drinks industry as a whole in Brazil saw a 9.7% drop in sales, as consumers continued to be pressured by low disposable income, migrating consumption to B brands, juice, and filtered water.
Ambev expects that the unfavourable factors in Brazil will dissipate in the second half of 2017, and sees significant potential for growth of net revenue and EBITDA margin in the Central and Latin America.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine