Brazil: Ambevs Q3 net income up 1.2% from last year
Ambev SA, the Latin American unit of Anheuser Busch InBev NV, on October 26 reported a third-quarter adjusted net income of 3.24 billion reais ($1 billion), up 1.2 percent from a year earlier.
Profit beat an average forecast of 2.64 billion reais in a Reuters survey of analysts. Adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) rose 13.8 percent to 4.55 billion reais versus a consensus estimate of 4.72 billion reais.
Ambevs profits have suffered in recent quarters on weak demand and swings in commodity prices such as aluminum, grains, and sugar, forcing the company to increase hedging. Competition in Ambevs core Brazil market has also stiffened since Dutch rival Heineken NV roughly doubled its presence by acquiring Kirin Holdings local operation.
Ambevs sales volumes in the third quarter fell 1.0 percent from a year earlier to 38.4 million hectolitres, as Brazilian consumption continued a sluggish recovery from the countrys worst recession in more than a century.
The average cost of products sold, a measure of the cost of producing and selling a beverage, increased 7.4 percent from the same period a year before.
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