Brazilian brewer Ambev posts Q1 earnings beat as volumes grow

div classBodysc17zpet90 cdBBJodivpSAO PAULO Reuters – Brazilian brewer Ambev SAs firstquarter net income rose 29.1 from a year earlier as volumes increased, driven by its domestic and South American units, it said on Thursday, beating estimates from analysts polled by Refinitiv.p

pThe bottom line came in at 3.53 billion reais 717.51 million, ahead of an estimated 2.79 billion reais, also boosted by the companys financial result.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“We delivered volume and EBITDA core profit growth despite the industrys volatility in several markets and even as costs remained under pressure,” Chief Executive Jean Jereissati said in a statement.p

pAmbevs quarterly net revenue rose 10.8 to 18.44 billion reais, slightly above an average market estimate of 18.03 billion reais.p

pVolumes grew 3.6, a figure the subsidiary of Belgium‘s AnheuserBusch InBev SA viewed as positive given the new wave of COVID19 infections driven by the Omicron variant and the postponement of Brazil’s Carnival parades for the second quarter.p

pAdjusted earnings before interest, tax, depreciation and amortization EBITDA increased 3.7 to 5.52 billion reais, roughly in line with estimates, but the adjusted EBITDA margin fell 200 basis points to 30.p

“As expected, cost pressures remained in place … due to higher commodities prices, which were already projected,” Ambev said in a securities filing.p

1 4.9198 reaisp

Reporting by Gabriel Araujo Editing by Mark Potterp

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