05 COMPANIES IN FOCUS CONTENTS

Ambev SA

Highlights Income Statement, Consolidated, BRL mn

Ambev was established in 2000, after the merger 48.0% 47.5%
of Cervejaria Brahma and Companhia Antarctica,
42.7%
two of the oldest breweries in Brazil. 42.1%

47,899
46,720

45,603
In 2004, the company merged with Belgian brewer
Interbrew, creating what was then the world’s 38,080

22,210

20,148
19,483
18,276
largest brewing group, InBev. In 2008, the group

13,083
12,879
12,362
acquired Anheuser-Busch in a deal valued at USD

7,851
52bn, creating the world’s largest brewer –
Anheuser–Busch InBev.

Ambev focuses mainly on the production and sale

2014 2015 2016 2017
of beer, soft drinks and other non-alcoholic Net Revenues EBITDA (adj.)
beverages. Its operations are divided into three
Net Profit EBITDA Margin
business lines: Latin America/North, including
Brazil, the Dominican Republic, Cuba, Saint
Vincent, Antigua, Dominica, Guatemala, El
Salvador, Nicaragua, Honduras, Barbados and Balance Sheet, Consolidated, BRL mn
Panama; Latin America/South, managing Ambev’s
90,176

86,852
83,841

operations in Argentina, Bolivia, Uruguay, Chile

72,143

and Paraguay; and Canada, managing the

company’s operations in Canada and the United
50,334

47,983
46,651
43,645

States.

At end-2017, Ambev’s Brazilian operations

included 34 plants, two malt houses, 100
distribution centres, a workforce of 32,000
employees and more than 30 beverage brands.
-2,481

Ambev’s shares are traded on the B3 Stock

-7,000

-10,018

-7,801

Exchange (former BM&FBovespa). Its market 2014 2015 2016 2017

capitalisation stood at BRL 366.8bn at the end of

April 2018. Total Assets Shareholders' Equity Net Debt

Source: Company Data, EMIS Insights

BRAZIL FOOD & BEVERAGE SECTOR 2018/2022 42

An EMIS Insights Industry Report
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 05 COMPANIES IN FOCUS CONTENTS

Ambev SA (cont’d)

Highlights Net Revenues by Business Line, BRL mn

In 2017, Ambev’s net revenues stood at BRL
47.9bn, up 5% y/y – a rise explained by increases
5,810 6,044
in sales’ volumes and prices of beer, while the 6,462
market for soft drinks and other non-alcoholic 4,653 11,256 10,770
10,213
beverages decreased in volume, affected by weak
6,956
sales in the industry as a whole. However,
premium brands of both beer and non-alcoholic
beverages, namely Budweiser, Lipton and H2OH!, 31,086
29,655 28,928
presented double digit growth rates in their net 26,471

revenues, and reached 10% of Ambev’s production

volume in 2017.
2014 2015 2016 2017
During the year, the Latin America/North business
line continued to dominate Ambev’s operations, Latin America/North Latin America/South Canada
with 64.9% of consolidated revenues. Despite still
lagging industry sales since the economic
downturn in 2015, the segment’s net revenues
Domestic Sales by Product, BRL mn
rose by 7.5% y/y in 2017. Net revenues of the Latin
America/South business line rose by 5.4% y/y,
while the Canada business line fell 6.5% y/y.
3,885 3,844
Ambev ended 2017 with a net profit of BRL 7.9bn, 3,914 3,782

compared to BRL 13.1bn in 2016. The fall was due

to exceptional expenses linked to Ambev’s
inclusion in the Special Programme for Tax
Regulation (“PERT 2017”), a government 20,469
22,441 21,173 22,509
programme to regularise taxes due. Disregarding
the effect from these expenses, net profits stood
at BRL 12.2bn, up 2.1% y/y.

In the first quarter of 2018, Ambev’s net revenues 2014 2015 2016 2017
continued to grow, rising by 3.5% y/y, while the
Beer Soft Drinks
adjusted net profit increased by 12.7% y/y.

Source: Company Data

BRAZIL FOOD & BEVERAGE SECTOR 2018/2022 43

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