Ambev Reports 2012 Third Quarter Results Under IFRS

             Ambev Reports 2012 Third Quarter Results Under IFRS

PR Newswire

SAO PAULO, Oct. 31, 2012

SAO PAULO, Oct. 31, 2012 /PRNewswire/ -- Companhia de Bebidas das Americas –
Ambev [BOVESPA: AMBV4, AMBV3; NYSE: ABV, ABVc] announces today its results for
the 2012 third quarter (Q3 2012). The following operating and financial
information, unless otherwise indicated, is presented in nominal Reais and
prepared according to International Financial and Reporting Standards (IFRS),
and should be read together with our quarterly financial information for the
three and nine months period ended September 30, 2012 filed with the CVM and
submitted to the SEC.

Operating and Financial Highlights

Top line performance: This quarter we delivered the strongest net revenue
growth (+15.1%) of the year despite a 0.5% decline in overall volumes (+0.3%
in beer; -2.3% in CSD&NANC), giving us +2.1% volume and +9.3% net revenue per
hectoliter (NR/Hl) growth for the year. The performance of our Brazilian
operations stood out once more, with a 17.5% NR/Hl growth while volume growth
was limited to 0.2%. As for our international operations, Canadian
performance was flat, Latin America South (LAS) NR/Hl growth of 21.5% more
than offset a 2.3% decline in volumes against a tough macroeconomic backdrop
in Argentina, and HILA-ex reported volumes that grew roughly 55% in the first
full quarter of consolidation of Cervecería Nacional Dominicana's (CND)

Cost of Goods Sold (COGS): COGS rose 11% in the third quarter, with  COGS per
hectoliter growing 11.3%. This was primarily caused by input cost pressures
in Brazil for barley, aluminum and sugar, coupled with negative packaging mix
and greater industrial depreciation related to capacity investments in the
country, but also due to higher barley and labor costs in LAS. For the first
nine months of 2012, COGS/Hl increased 6.6%.

Selling, General & Administrative (SG&A) expenses: SG&A (excluding
depreciation and amortization) expenses in Q3 2012 grew 16.2%. Commercial
spend and distribution expenses increased at a lower pace as compared to H1
2012 (with the exception of LAS, where labor cost pressures persist), whereas
growth in administrative expenses in Brazil (mainly bonus accruals) mostly
resulted from a tough comparison with Q3 2011. Year-to-date, SG&A (excluding
depreciation and amortization) growth stands at 15.1%.

EBITDA, Gross margin and EBITDA margin: We delivered a normalized EBITDA of R$
3,801.5 million in the third quarter, which is 19.2% above the same period
last year, giving us 12.5% growth thru September 30, 2012. Both Gross and
EBITDA margins expanded (120 bps and 160 bps, respectively) led by Brazil and
LAS, while Canadian EBITDA margin remained flat for the quarter, and HILA-ex
improved its EBITDA margin considerably to 16.7%, with an EBITDA of R$ 66.8
million. These results sent us back to margin expansion territory for the
year (+30 bps), with an EBITDA margin of 46.0%.

Operating Cash generation and Profit: Stronger revenue performance was the
main driver behind the R$ 4,365.6 million (+27.6% vs. Q3 2011) of cash
generated from our operations during Q3 2012. Normalized Profit was R$
2,518.5 million and Normalized Earnings per share (EPS) was R$ 0.81 in the
quarter thanks to a higher EBITDA, a lower effective tax rate and an easy
comparison with Q3 2011.

Financial Highlights           % As     %                           % As     %
– Ambev Consolidated
R$ million   3Q11     3Q12     Reported Organic YTD 11    YTD 12    Reported Organic
Total        39,920.2 40,530.2 1.5%     -0.5%   116,898.4 120,139.1 2.8%     2.1%
Beer         28,607.0 29,371.7 2.7%     0.3%    84,176.1  86,487.8  2.7%     1.9%
CSD and NANC 11,313.1 11,158.4 -1.4%    -2.3%   32,722.3  33,651.3  2.8%     2.4%
Net sales   6,374.5   8,036.0  26.1%    15.1%   18,748.3  22,097.1  17.9%    11.7%
Gross       4,244.3   5,414.1  27.6%    17.1%   12,492.3  14,862.1  19.0%    13.1%
Gross       66.6%     67.4%    80 bps   120 bps 66.6%     67.3%     70 bps   80 bps
EBITDA      2,994.7   3,791.8  26.6%    17.5%   8,671.5   10,131.0  16.8%    11.8%
EBITDA      47.0%     47.2%    20 bps   100 bps 46.3%     45.8%     -50 bps  10 bps
Normalized  2,952.8   3,801.5  28.7%    19.2%   8,634.9   10,167.4  17.7%    12.5%
EBITDA      46.3%     47.3%    100 bps  160 bps 46.1%     46.0%     -10 bps  30 bps
Profit -
Ambev       1,687.3   2,508.8  48.7%            5,608.5   6,787.7   21.0%
Profit -    1,645.4   2,518.5  53.1%            5,571.9   6,824.1   22.5%
No. of
share       3,116.8   3,126.2                   3,116.8   3,126.2
EPS         0.54      0.80     48.2%            1.80      2.17      20.7%
Normalized   0.53     0.81     52.6%            1.79      2.18      22.1%

Note: Earnings per share calculation is based on outstanding shares (total
existing shares excluding shares held in treasury).

This press release segregates the impact of organic changes from those arising
from changes in scope or currency translation. Scope changes represent the
impact of acquisitions and divestitures, the start up or termination of
activities or the transfer of activities between segments, curtailment gains
and losses and year over year changes in accounting estimates and other
assumptions that management does not consider as part of the underlying
performance of the business. Unless stated, percentage changes in this press
release are both organic and normalized in nature. Whenever used in this
document, the term "normalized" refers to performance measures (EBITDA, EBIT,
Profit, EPS) before special item adjustments. Special items are either income
or expenses which do not occur regularly as part of the normal activities of
the Company. They are presented separately because they are important for the
understanding of the underlying sustainable performance of the Company due to
their size or nature. Normalized measures are additional measures used by
management and should not replace the measures determined in accordance with
IFRS as indicators of the Company's performance. Comparisons, unless otherwise
stated, refer to the third quarter of 2011 (Q3 2011), as the case may be.
Values in this release may not add up due to rounding


Contact: Tatiana S F Rodrigues, Ambev - Investor Relations, + 55 (11)
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