Ambev Reports 2014 First Quarter Results Under IFRS
SAO PAULO, May 7, 2014
SAO PAULO, May 7, 2014 /PRNewswire/ --Ambev S.A. [BOVESPA: ABEV3; NYSE: ABEV]
announces today its results for the 2014 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 quarterly financial
information for the three-month period ended March 31, 2014 filed with the CVM
and submitted to the SEC.
Operating and Financial Highlights
Top line performance: During the quarter we delivered 16.9% net revenue
growth. Volume expanded 6.8% while net revenue per hectoliter (NR/hl) grew
9.4%. This performance was mainly driven by Brazil Beer with a strong 21.1%
net revenue growth (volume +10.9%, NR/hl +9.2%) along with solid top line
performance in most of our divisions (Brazil CSD & NANC +8.8%, HILA-Ex +9.6%,
LAS +21.5%, while Canada -3.1%).
Cost of Goods Sold (COGS): Our COGS increased 12.2% in 1Q14. On a per
hectoliter basis, costs increased 5.0%, mainly explained by higher currency,
partially offset by lower aluminum, barley, corn and sugar hedges as well as
higher dilution of fixed costs and depreciation in Brazil.
Selling, General & Administrative (SG&A) expenses: SG&A expenses (excluding
depreciation and amortization) were up 17.2% in the quarter. This was mainly
driven by (i) sales and marketing expenses in Brazil, due to continued support
to our commercial strategies along with different phasing of investments
related to the 2014 FIFA World Cup; (ii) distribution costs, impacted by a
higher weight of direct distribution in Brazil; and (iii) the higher accruals
for variable compensation. Elsewhere, SG&A expenses were negatively impacted
by inflationary pressures in Argentina and the phasing of marketing
investments in Canada.
EBITDA, Gross margin and EBITDA margin: Our Normalized EBITDA grew 14.8% in
1Q14, reaching R$ 4,051.0 million. Gross margin expanded by 140 basis points
to 66.7% driven by expansion in Brazil (+160bps), HILA-Ex (+90bps) and LAS
(+200bps), partially offset by a contraction in Canada (-50bps). Normalized
EBITDA margin contracted 90 basis points to 44.8% mainly driven by lower Other
operating income (-28.3%), as Brazil reported a one time credit of
approximately R$ 120 million in 1Q13.
Operating Cash generation and Profit: Cash generated from our operations in
1Q14 improved 48.8% when compared to the same period last year, totaling R$
2,620.0 million. Our Normalized Profit was R$ 2,603.4 million in the quarter,
positively impacted by our operational performance. Normalized Earnings Per
Share (EPS) corresponded to R$ 0.16 in the quarter.
CAPEX, Pay-out and Financial discipline: During the first quarter of 2014 we
invested R$ 875.8 million in capital expenditures. As of March 31^st, 2014,
our net cash position was R$ 4,951.5 million. Such position, however, does not
account for the dividends payments of approximately R$ 2 billion announced on
March 25^th, 2014 and paid as from April 25^th, 2014. 0.16 in the quarter.
Financial Highlights – Ambev 1Q13 % As %
R$ million Base 1Q14 Reported Organic
Total volumes 40.218,0 42.984,4 6,9% 6,8%
Beer 28.784,1 31.204,9 8,4% 8,3%
CSD and NANC 11.433,9 11.779,4 3,0% 3,0%
Net sales 7.832,0 9.045,1 15,5% 16,9%
Gross profit 5.134,2 6.036,8 17,6% 19,3%
Gross margin 65,6% 66,7% 110 bps 140 bps
EBITDA 3.623,1 4.044,4 11,6% 14,6%
EBITDA margin 46,3% 44,7% -160 bps -90 bps
Normalized EBITDA 3.624,1 4.051,0 11,8% 14,8%
Normalized EBITDA margin 46,3% 44,8% -150 bps -90 bps
Profit 2.373,2 2.596,8 9,4%
Normalized Profit 2.374,2 2.603,4 9,7%
EPS (R$/shares) 0,15 0,16 9,3%
Normalized EPS 0,15 0,16 9,5%
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 2013 (1Q13 Reference Base). Values in
this release may not add up due to rounding.
SOURCE Ambev S.A.
Contact: Nelson Jose Jamel, +55 11 2122-1414, firstname.lastname@example.org
Press spacebar to pause and continue. Press esc to stop.