E-Malt.com News article: Brazil: AmBev posts a 60.9% increase of net income in Q3 2008

Companhia de Bebidas das Américas – AmBev announced its results for third quarter 2008 (Q3 2008) on November, 6.

Financial Highlights - AmBev Consolidated

Beer volumes reached R$ 24,387.5 mln, up 5% from Q3 2007.
Net sales amounted to R$ 4,809.9 mln (+3.6%).
EBITDA was R$2,033.7 mln (+1.7%).
Net Income amounted to R$949 mln, up by 60.9% from last year’s third quarter.

“Our Beer EBITDA increased organically by 3.0% on the back of soft volume growth (+1.1%). We are pleased with the performance of our Brazilian operations, delivering another quarter of EBITDA growth despite a challenging environment. Our teams continue to focus on execution, utilizing our superior portfolio to support our objective of growing share. After losing 70 bps of beer market share in July, we recovered and ended the quarter with year to date market share flat versus last year,” the company posted.

Quinsa delivered another strong quarter with a 14.2% growth in beer volumes, it was reported.

“In Q3 2008, we returned to our shareholders R$987.4 million in dividends and IOC,” AmBev informed.

AmBev said its Brazilian beer volumes decreased by 0.8% to 16,056.8 hl being impacted by poor weather in key regions in September. Its average market share for Q3 2008 reached 67.2%, which is 50 bps lower than last year, allowing it to maintain the year to date market share flat against 2007.

Net revenue per hectolitre growth of 3.3% for the quarter was driven by price increases implemented at the beginning of the year, principally in the on-premise channel.

Brazilian EBITDA was R$1,155.5 mln growing by 2.5% over last year’s third quarter result.

Quinsa beer results were 4,304.9 hl (+14.2%) in the quarter, net revenue constituted R$467.5 mln (+ 28.1%).

“Beer volume organic growth of 14.2% reflects double-digit volume growth in all of the Quinsa markets as a result of strong economic fundamentals, market share gains in Argentina and Chile, very good performances from our premium brands and specific actions aimed at developing the beer category in the region,” the company posted.

The increase in net revenues per hectoliter of 29.6% was driven by price increases throughout the region and higher premium brand mix.

Net revenue amounted to R4467.5 mln, an increase of 28.1% over last year’s third quarter.

Hila-ex beer results were an volume decrease by 6.4% to 701.7 hl, net revenue fell to R$86.2 mln (- 24.6%).

HILA-ex beer volumes decreased 6.4% as double-digit volume growth in Peru and Ecuador was fully offset by another challenging quarter in Venezuela.

Net revenue per hectoliter fell by 8.9% in the quarter while COGS per hectoliter increased by 27.4% on an organic basis, driven by lower fixed cost absorption and commodity cost pressures.

Beer EBITDA declined organically by R$40.5 million in the quarter.


07 November, 2008