Stock Groups

Brazilian brewer Ambev’s profit slumps in sector-wide decline -Breaking

by Mike Robinson

[ad_1]

© Reuters. FILE PHOTO – Workers inspect a machine at Brazil-based Ambev. The Latin American arm, AB InBev’s, is located in Pirai, Brazil, March 23rd, 2020. Picture taken March 23, 2020. REUTERS/Pilar Olivares

SAO PAULO, Reuters – Brazilian brewer Ambev SA reported that its fourth quarter net income dropped 45.6% to 3.75 billion reais ($748.55m) from a previous year. It cited widespread industry deceleration.

In a Refinitiv Eikon survey, the bottom line fell below 4 billion reais. Ambev however said that the company continued to outperform peers. Ambev noted that the volume of its business was down 3.1% year-on-year, while sectorwide declines were high single digits.

Ambev’s quarterly net income rose 18.6% and reached 22.01 billion Brazilian reals, an increase that was higher than its average market estimate (21.3 billion).

EBITDA (equivalent earnings before interest taxes, depreciation, amortization) fell by 24.1%, or 17.4 percent, to 6.78 billion Brazilian reais. The margin of EBITDA was also down to 30.8%.

Anheuser-Busch SA’s subsidiary in Belgium announced separately that its Brazilian beer company will see the cost of goods (COGS), rise between 16% and 19% because of higher commodities prices, and the loss of value of the Brazilian real.

($1 = 5.0097 reais)

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, futures, indexes and Forex. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information, including buy/sell signal data. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]