Ambev(US:ABEV)2025-10-30 10:04Financial Performance - Ambev reported net sales of R$63,434,834 thousand for the nine-month period ended September 30, 2025, a slight increase from R$62,417,251 thousand in the same period of 2024, representing a growth of 1.6%[15] - The gross profit for the nine-month period was R$32,322,974 thousand, compared to R$31,325,674 thousand in 2024, indicating a year-over-year increase of 3.2%[15] - Net income for the nine-month period reached R$11,458,935 thousand, up from R$9,822,371 thousand in 2024, reflecting a growth of 16.7%[15] - Basic earnings per share for the nine-month period was R$0.7141, compared to R$0.6073 in 2024, marking an increase of 17.6%[15] - Net income for the nine-month period ended September 30, 2025, reached BRL 11,458,935 thousand, a 16.6% increase from BRL 9,822,371 thousand in the same period of 2024[16] - For the three-month period ended September 30, 2025, net income was BRL 4,863,720 thousand, up from BRL 3,566,301 thousand in the same period of 2024, marking a 36.2% increase[16] - The company reported exceptional items contributing R$772,901 thousand to income from operations for the nine-month period[15] - The income from operations for the nine-month period ended September 30, 2025, was R$16,414,403 thousand, compared to R$14,278,598 thousand in 2024, representing a growth of 15.0%[90] Assets and Liabilities - Total assets decreased to R$140,754,995 thousand as of September 30, 2025, down from R$162,507,949 thousand at the end of 2024, a decline of 13.4%[13][14] - Current liabilities decreased to R$36,577,101 thousand from R$49,388,714 thousand, a reduction of 26%[14] - The company’s cash and cash equivalents decreased to R$18,309,248 thousand from R$28,595,666 thousand, a decline of 36%[13] - Ambev's total equity attributable to shareholders was R$92,027,435 thousand, down from R$98,642,139 thousand, a decrease of 6.5%[14] - The total issued capital increased to BRL 58,275,696 thousand as of September 30, 2025, from BRL 58,226,036 thousand at the beginning of the year[19] - The total amount of current and non-current recoverable taxes was R$13,472,212 as of September 30, 2025, down from R$14,086,252 at December 31, 2024, indicating a decrease of approximately 4.4%[46] - The total carrying amount of property, plant, and equipment as of September 30, 2025, was R$23,881,025, reflecting a significant reduction in value[54] - The total interest-bearing loans and borrowings decreased to R$2,894,517 million as of September 30, 2025, down from R$3,452,728 million at December 31, 2024, reflecting a decline of about 16.1%[58] Cash Flow and Investments - Cash flow from operating activities for the nine-month period was R$11,198,356, a decrease of 8.1% from R$12,184,757 in the previous year[20] - Cash flow from investing activities was negative R$2,915,701 for the nine-month period, compared to negative R$3,992,719 in the previous year[20] - The company reported net financial results of R$2,916,360 for the nine-month period, up from R$1,703,692 in 2024, reflecting a significant increase of 71.2%[20] - The company recognized a gain of R$884 million from the sale of a subsidiary, which was recorded under non-recurring items[29] - The company reported acquisitions of property, plant, and equipment totaling R$2,960,298 thousand for the nine-month period ended September 30, 2025, compared to R$3,229,988 thousand in 2024[90] Taxation and Compliance - Total income tax expenses for the nine-month period ended September 30, 2025, were R$2,030,978, a decrease from R$2,754,357 in the same period of 2024[51] - The effective tax rate for the nine-month period ended September 30, 2025, was 15.06%, compared to 21.90% for the same period in 2024[51] - The company recognized R$1,138,664 in tax incentives for the nine-month period ended September 30, 2025, compared to R$1,041,002 in the same period of 2024[96] - The company is currently challenging tax assessments regarding ICMS differences in courts, with a Supreme Court ruling in February 2025 reclassifying potential losses from possible to remote, amounting to R$0.8 billion[74] Shareholder Information - The company declared dividends amounting to BRL 5,998,726 thousand for the nine-month period ended September 30, 2025[19] - The total dividends distributed amounted to R$0.1283 per share, with the payment made on October 6, 2025[26] - The company approved dividends totaling R$5,998,726 thousand for the fiscal year 2025, with payments scheduled across three distributions[86][87][88] - The company’s issued capital as of September 30, 2025, is R$58.28 billion, with a total of 15,761,639 common shares outstanding[78] Risk Management - The company has no significant concentration of credit risk as of September 30, 2025, with counterparty risk reassessed quarterly[128] - The company’s liquidity risk is managed through cash flow from operating activities, debt issuances, and access to credit facilities[131] - The company has a dynamic interest rate hedging approach to mitigate risks associated with fluctuations in interest rates[124] Operational Highlights - The company operates in multiple segments, producing and selling a variety of beverages, including beer and soft drinks, across Latin America[21] - The company has commitments to suppliers for inventory amounting to R$27,096,091 as of September 30, 2025, down from R$46,942,988 at December 31, 2024[141] - Key management personnel remuneration totaled R$136,942 for the nine-month period ended September 30, 2025, compared to R$123,008 for the same period in 2024[146]