Economic Indicators - Brazilian GDP growth was 3.4% in 2024, up from 3.2% in 2023 and 3.0% in 2022, indicating a positive trend in economic conditions [447]. - Brazilian unemployment rate decreased to 6.8% in 2024 from 7.8% in 2023 and 9.3% in 2022, reflecting improved labor market conditions [448]. - Brazilian inflation, measured by IGP-M, was 6.5% in 2024, compared to a deflation of 3.2% in 2023 and inflation of 5.5% in 2022, indicating rising cost pressures [451]. - The real depreciated against the U.S. dollar by 27.9% in 2024, following appreciations of 7.2% in 2023 and 6.5% in 2022, which may create inflationary pressures [452]. - Argentine GDP contracted by 2.6% in 2024, marking the second consecutive year of decline, with inflation rates reaching 117.8% [458]. - The average exchange rate for the Argentine Peso against the U.S. dollar was ARS 916.75 in 2024, reflecting significant depreciation [456]. Company Financial Performance - Net sales increased by 12.2% in 2024, reaching R89,452.7millioncomparedtoR79,736.9 million in 2023, driven by a 13.3% growth in net revenue per hectoliter [475]. - Sales volume decreased by 0.9% to 181,920.5 thousand hectoliters in 2024 from 183,659.0 thousand hectoliters in 2023, primarily due to declines in Latin America South and Canada [475]. - Gross profit rose by 13.3% to R45,837.6millionin2024,withagrossmarginimprovementto51.214,847.0 million in 2024, resulting in a net margin decline to 16.6% from 18.8% [473]. - Brazilian operations net sales increased by 4.8% to R48,605.3million,withvolumesgrowing1.519,829.7 million, driven by a 59.6% rise in net revenue per hectoliter [481]. - Cost of sales increased by 11.0% to R43,615.1million,butasapercentageofnetsales,itdecreasedto48.8491.7 in 2024, with notable increases in Latin America South (59.6%) and NAB (9.2%) segments [477]. - Canada operations net sales increased by 4.8% to R9,993.9million,supportedbyan8.219 billion in tax credits from the exclusion of ICMS from the PIS and COFINS calculation base from 2017 to 2024 [465]. - In 2024, the company recorded a positive impact of R2,533.9millioninnetrevenueduetohyperinflationaccountingadjustmentsinArgentina[463].−ThecompanyhasR607.5 million in tax credits related to IRPJ and CSLL taxes unduly paid over SELIC interest, pending judicial proceedings [467]. - The company recorded R3,243.1millionintaxcreditsfor2024,comparedtoR3,040.4 million in 2023, reflecting gains from tax incentive programs [564]. - The total amount deferred in tax benefits as of December 31, 2024, was R372.2million,withacurrentportionofR145.1 million [564]. Operational Changes and Market Dynamics - The impact of COVID-19 led to significant changes in market dynamics, with a notable increase in e-commerce sales despite restrictions on on-trade channels [468]. - Strategic revenue management initiatives contributed to the growth in net sales across various segments, particularly in Brazil and CAC operations [480]. Expenses and Income - Sales, marketing, distribution, and administrative expenses increased by 12.6% in 2024 to R26,392.4million[494].−Othernetoperatingincomeroseby21.12,457.3 million, primarily due to higher VAT tax credits [502]. - Income from operations increased by 15.8% in 2024 to R21,801.7million[504].−Netfinanceresultimproved,decreasingby35.82,318.2 million [505]. - Consolidated income tax expense totaled R4,640.4millionin2024,withaneffectivetaxrateof23.824,711.4 million from R20,642.1millionin2022[553].−Cashflowsusedininvestingactivitiesincreasedby15.25,766.0 million from R5,004.2millionin2022[554].−Cashflowsusedinfinancingactivitiesdecreasedby1.416,115.2 million from R16,337.8millionin2022[555].−AsofDecember31,2024,thetotalnetcashpositionwasR26,384.9 million, an increase from R12,835.1millionin2023[557].−Short−termdebtasofDecember31,2024,totaledR1,276.4 million, with 27.0% in foreign currencies, compared to R1,298.1millionand19.62,176.3 million, with 28.0% in foreign currencies, down from R2,203.0millionand28.7177.1 million, including fixed and variable remuneration, benefits, and share-based payments [614]. - The average compensation for Executive Officers in 2024 was R11.7million,withamaximumofR46.3 million [617]. - As of December 31, 2024, there were 72.5 million stock options outstanding under the Ambev Stock Option Plan, covering approximately 528 employees [618]. - The Share Based Payment Plan allows for the granting of up to 3.0% of Ambev's share capital, with 120.5 million Restricted Shares offered to approximately 519 participants as of December 31, 2024 [630]. - The average individual compensation for members of the Board of Directors in 2024 was R3.1million,withamaximumofR14.3 million [617]. - The total number of Board of Directors members in 2024 was 13, with 7 members compensated for their service [617]. - The variable remuneration for Executive Officers in 2024 was R19.5million,contributingtoatotalofR152.7 million for this group [615]. - The minimum individual compensation for Executive Officers in 2024 was R6.5million[617].−TheSharePlanincludesprovisionsforRestrictedSharesandPerformanceShares,whichvestinthreetofiveyearsdependingontheprogram[630].−TheBoardofDirectorshastheauthoritytomanagetheSharePlanandestablishtermsforeachShareBasedPaymentProgram[627].PensionPlansandProfit−Sharing−AsofDecember31,2024,Ambevhad8,896participantsinitspensionplans,including220inthedefinedbenefitplanand7,448inthedefinedcontributionplan[637].−Theexpensesundertheprofit−sharingprogramsamountedtoR1,431.3 million for the year ended December 31, 2024, compared to R963.5millionin2023andR1,119.2 million in 2022, indicating a significant increase [642]. - Ambev adopted a clawback policy on October 19, 2023, allowing recovery of incentive-based compensation from executives in case of financial restatements, applicable to compensation received after October 2, 2023 [632]. - The defined contribution pension plan covers substantially all new employees, while the defined benefit plan has been closed to new participants since May 1998 [634]. - The profit-sharing plan's variable payments are based on achieving corporate, departmental, and individual performance targets, with a three-tier distribution system [640]. - Ambev's pension plan assets are primarily composed of equity securities, government and corporate bonds, and real estate properties [637]. Shareholder Engagement - The company held individual and group meetings with shareholders and analysts in 2024 to discuss business performance and growth opportunities [643]. - The IAPP (Ambev Private Pension Institute) manages the pension plans, which are independent and benefit solely the employees [634]. - The company has a collective award system for operational employees based on performance at production sites and distribution centers [641]. - No ABI exceptional stock options or restricted stock units were outstanding or held by Ambev executives as of the date of the report [633].