AmBev, as the unit of the world’s largest brewer is known, fell 1.8 percent to 80.29 reais at 11:57 a.m. in Sao Paulo. A close at that level would be the biggest drop since April 4. The shares have gained 6.3 percent in April. The benchmark Bovespa stock index dropped 0.7 percent today.
The company reported net income of 2.3 billion reais ($1.2 billion) in the first quarter, missing the average estimate of 2.4 billion reais among eight analysts surveyed by Bloomberg. AmBev’s margin on earnings before interest, taxes, depreciation and amortization contracted by 40 basis points to 46.9 percent in the quarter.
The Ebitda margin, a measure of profitability, was “mainly affected by the increased costs in AmBev’s CSD Brazil operation (pressured by sugar and polyethylene terephthalate prices) and LatAm Beer (pressured by raw materials, labor and energy costs) divisions,” Banco Itau BBA SA analyst Alexandre Miguel wrote in a report today. He maintained his rating equivalent to neutral on the stock.
AmBev has climbed 19 percent this year, compared with an 8 percent rise for the Bovespa. (IBOV)
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