Ambev Reports 2013 Second Quarter Results Under IFRS

             Ambev Reports 2013 Second Quarter Results Under IFRS

PR Newswire

SAO PAULO, July 31, 2013

SAO PAULO, July 31, 2013 /PRNewswire/ --Companhia de Bebidas das Americas –
Ambev [BOVESPA: AMBV4, AMBV3; NYSE: ABV, ABVc] announces today its results for
the 2013 second 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 quarterly financial information for the three and six
months period ended June 30, 2013 filed with the CVM and submitted to the SEC.

Top line performance: During the quarter we delivered 8.3% net revenue
growth. Volumes declined 1.6% while net revenue per hectoliter (NR/Hl) grew
10.0%. Our Brazil Beer operations drove this improved performance: volumes
were down 0.4% (with the Brazilian beer industry showing gradual improvement),
and NR/Hl increased 10.0%, leading to 9.6% top line growth. We also delivered
top line growth in nearly all our other divisions (Brazil CSD & NANC +5.0%,
HILA-ex +3.7%, LAS +17.3% and Canada -2.5%) thanks primarily to our NR/Hl
performance (Brazil CSD & NANC +10.2%, HILA-ex +6.6%, LAS +18.3% and Canada
+1.3%), as volumes were still impacted by a soft industry in most markets.

Cost of Goods Sold (COGS): Our COGS increased 10.8%, and rose 12.5% on a per
hectoliter basis. Although our currency hedges remained as the most relevant
headwind given the Real depreciation since last year, our commodity hedges
(mostly barley and aluminum) became an important tailwind. Moreover, our
performance was also impacted by a tough comp in Brazil CSD & NANC, increased
industrial depreciation tied to Brazil capital expenditures, as well as
packaging mix in Brazil Beer.

Selling, General & Administrative (SG&A) expenses: SG&A expenses (excluding
depreciation and amortization) were up 13.5%. This was mainly a product of
continued sales and marketing investments to support our commercial strategy
in Brazil, but also due to different phasing and higher commercial spend
related to the FIFA Confederations Cup, which took place in June. Elsewhere,
inflationary pressures in Argentina continued to generate higher distribution
expenses in LAS, whereas in Canada, on the other hand, SG&A was positively
impacted due to phasing.

EBITDA, Gross margin and EBITDA margin: We delivered a total of R$ 3,217.9
million of Normalized EBITDA (+6.8%), with gross margin contraction of 80
basis points (bps) and EBITDA margin contraction of 60 bps. By division,
Brazil Beer's EBITDA performance was also the main highlight, totalling R$
1,858 million (+9.2%). Our international operations all grew EBITDA (HILA-ex
+36.5%, LAS +15.6% and Canada +0.7%), while Brazil CSD & NANC's EBITDA
performance suffered from the higher COGS and SG&A in the quarter, declining

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 second quarter of 2012 (Q2 2012). Values in this release
may not add up due to rounding.

Highlights –  2Q12                                YTD12
Ambev                            % As     %                          % As     %
              Reference                           Reference
R$ million    Base      2Q13     Reported Organic Base      YTD13    Reported Organic
Total volumes 37,378.5  36,984.7 -1.1%    -1.6%   79,608.9  76,914.2 -3.4%    -4.4%
Beer          26,860.2  26,845.3 -0.1%    -0.8%   57,116.0  55,341.0 -3.1%    -4.4%
CSD and NANC  10,518.3  10,139.4 -3.6%    -3.8%   22,492.9  21,573.2 -4.1%    -4.3%
Net sales     6,825.4   7,503.1  9.9%     8.3%    14,061.1  15,275.9 8.6%     5.2%
Gross profit  4,525.4   4,910.9  8.5%     7.0%    9,448.8   10,060.8 6.5%     3.4%
Gross margin  66.3%     65.5%    -80 bps  -80 bps 67.2%     65.9%    -130 bps -120
EBITDA        2,934.3   3,212.6  9.5%     7.5%    6,310.2   6,810.6  7.9%     4.7%
EBITDA margin 43.0%     42.8%    -20 bps  -30 bps 44.9%     44.6%    -30 bps  -20 bps
Normalized    2,961.1   3,217.9  8.7%     6.8%    6,337.0   6,816.9  7.6%     4.4%
Normalized    43.4%     42.9%    -50 bps  -60 bps 45.1%     44.6%    -50 bps  -40 bps
EBITDA margin
Profit -      1,903.8   1,882.4  -1.1%            4,218.1   4,226.0  0.2%
Ambev holders
Profit -      1,930.6   1,887.7  -2.2%            4,244.9   4,232.2  -0.3%
Ambev holders
No. of share
outstanding   3,118.4   3,123.3                   3,118.4   3,132.3
EPS           0.61      0.60     -1.6%            1.35      1.35     -0.3%
Normalized    0.62      0.60     -2.7%            1.36      1.35     -0.7%
Note: Earnings per share calculation is based on outstanding shares (total existing
shares excluding shares held in treasury).

Operating Cash generation and Profit: We delivered a total of R$ 2,570.6
million in terms of cash generated from our operations, which was 6.5% lower
than the second quarter of 2012 primarily due working capital. Normalized
Profit was down 2.2% and reached R$ 1,887.7 million as a result of greater net
finance expenses combined with a higher effective tax rate. Normalized
Earnings Per Share (EPS) declined 2.7% to R$ 0.60.

CAPEX, Pay-out and Financial discipline: CAPEX investments corresponded to R$
756.4 million during the quarter, led by R$ 559 million of investments in
Brazil. Pay-out thru June 30 totalled R$ 5.1 billion in dividends and IOC,
and we ended the quarter with net cash position of R$ 1,913.2 million. 


Contact: Lucas Lira, +55 11 2122-1415
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