E-Malt.com News article: 687

Brazil's AmBev SA, the world's fifth-largest brewer, posted on February 24 slightly stronger-than-expected fourth quarter earnings as price rises and cost cuts offset a drop in sales volumes.

Companhia de Bebidas das Americas (AmBev) failed last year to match 2001 sales volumes as Brazil's economy posted sluggish growth, although a drive to expand into new Latin American markets helped it bolster international beer sales volumes. Although sales were stronger in the last three months of the year than they were over the same period in 2001, the volume of beer sold in Brazil dropped 1.7 percent in 2002 while soft drink volumes fell 1.1 percent.

Fourth quarter earnings before interest, tax, depreciation and amortization (EBITDA), the gauge of operating performance many analysts focus on, jumped to 1.1 billion reais ($304.6 million) from 761.5 million reais in the year-earlier period.

The market expected the company, which was formed from the 2000 merger of Brazil's two biggest beverage firms, to post EBITDA of 1 billion reais, according to an average of five forecasts collected by Reuters last week.The country's benchmark Bovespa stock index was 0.5% higher at the time.


25 February, 2003