Ambev Reports 2013 First Quarter Results Under IFRS

             Ambev Reports 2013 First Quarter Results Under IFRS

PR Newswire

SAO PAULO, April 30, 2013

SAO PAULO, April 30, 2013 /PRNewswire/ --Companhia de Bebidas das Americas –
Ambev [BOVESPA: AMBV4, AMBV3; NYSE: ABV, ABVc] announces today its results for
the 2013 first quarter. The following operating and financial information,
unless otherwise indicated, is presented in nominal Reais and prepared
according to International Financial Reporting Standards (IFRS), and should be
read together with our financial information for the three-month period ended
March 31, 2013 filed with the CVM and submitted to the SEC.

Operating and Financial Highlights

Top line performance: Net revenues grew 2.4%. Volumes declined 6.8% (Brazil
-6.3%; Latin America South -10.2%; and Canada -3.0%) mainly because of poor
industry performance in our main markets. Such volume shortfall was offset,
however, by our net revenue per hectoliter results, which improved 9.8% in Q1
2013 (Brazil +7.5%; Latin America South +20.2%; Canada +2.3%). HILA-ex net
revenues increased 27% supported by volumes growing 19.9%.

Cost of Goods Sold (COGS): COGS rose 7.4%, with COGS per hectoliter growing
15.1%. On the hedging side, performance was impacted not only by the closing
of the higher commodity hedge cycle (mainly barley, and to a lesser extent,
aluminum and sugar), but also by currency hedges already becoming a headwind
because of the depreciation of the Real. In addition, adverse effect in fixed
cost dilution as a result of the volume decline and packaging mix, increased
industrial depreciation tied to Brazil capital expenditures, inflationary
pressures in Argentina and a tough comparison in Canada were also relevant
factors.

Selling, General & Administrative (SG&A) expenses: SG&A (excluding
depreciation and amortization) was up 8.0%. Sales and marketing investments
remained a priority in order to implement our commercial strategy during
Carnival in Brazil, we continued to invest behind our brands in LAS, and spent
more in Canada due to a shift into the first quarter due to innovation
launches and brand activation initiatives. Meanwhile, distribution costs
continued to suffer from inflationary pressures in Brazil and Argentina. All
in all, SG&A growth was in line with the weighted average inflation for our
geographical footprint.

EBITDA, Gross margin and EBITDA margin: Normalized EBITDA totalled R$ 3,599.0
million and grew 2.3% mainly as a result of the negative volume performance
and higher COGS per hectoliter. As for our main divisions, Brazil delivered
an EBITDA of R$ 2,499.9 million (+1.6%) and Canada R$ 246.3 million (-11.4%),
whereas LAS generated R$ 784.9 million (+10.0%) and HILA-ex R$ 67.8 million.
Overall, gross margin contracted 150 basis points (bp) and EBITDA margin
contracted 10 bp.

Operating Cash generation and Profit: Cash generated from our operations
totalled R$ 1,729.8 million (+37.5%), while our Normalized Profit in the
quarter reached R$ 2,344.5 million (+1.3%) and Normalized Earnings Per Share
(EPS) R$ 0.75 (+0.8%).

Financial Highlights –
Ambev Consolidated
                          1Q12 Reference          
                          Base                                      %
R$ million                                1Q13    % As
                                                                    Organic
                                                  Reported
Total volumes                     42,230.4   39,929.5 -5.4%    -6.8%
Beer                              30,255.9   28,495.7 -5.8%    -7.6%
CSD and NANC                      11,974.6   11,433.9 -4.5%    -4.8%
Net sales                         7,235.7    7,772.8  7.4%     2.4%
Gross profit                      4,923.3    5,150.0  4.6%     0.0%
Gross margin                      68.0%      66.3%    -170 bps -150 bps
EBITDA                            3,375.9    3,598.0  6.6%     2.3%
EBITDA margin                     46.7%      46.3%    -40 bps   -10 bps
Normalized EBITDA                 3,375.9    3,599.0  6.6%     2.3%
Normalized EBITDA margin          46.7%      46.3%    -40 bps   -10 bps
Profit - Ambev holders            2,314.3    2,343.5  1.3%
Normalized Profit - Ambev holders 2,314.3    2,344.5  1.3%
No. of share outstanding          3,117.5    3,131.9
(millions)
EPS (R$/shares)                   0.74       0.75     0.8%
Normalized EPS                    0.74       0.75     0.8%

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 items 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 first quarter of 2012 (Q1 2012). Values in this release
may not add up due to rounding.

SOURCE Ambev

Contact: Tatiana S F Rodrigues, Ambev - Investor Relations, + 55 (11)
2122-1414, ir@ambev.com.br