Ambev (NYSE:ABEV) shares are trading lower on Thursday.
The company reported third quarter earnings per share of 4 cents, in line with the street view. Quarterly sales of $3.983 billion missed the analyst consensus estimate of $4.082 billion.
Consolidated volumes declined by 0.6%, but when excluding Argentina, there was a growth of 1.3%.
In Brazil, volumes increased by 1.3%, with beer sales growing by 0.6% and non-alcoholic beverages (NAB) rising by 3.4%. In Brazil’s beer segment, premium and super premium brands saw volume growth in the low twenties, driven by Corona, Spaten, and Original. Core plus brands grew by low teens, with the Budweiser family leading the way, while core brands Brahma and Antarctica each recorded high single-digit increases in volume.
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In Central America and the Caribbean (CAC), volumes decreased by 0.5%, although the Dominican Republic saw a midsingle-digit increase. Additionally, soft industry conditions in Argentina and Canada contributed to volume declines of 7.7% in Latin America South (LAS) and 1.4% in Canada.
In the quarter under review, the company’s cash cost of goods sold (COGS) increased in low-single digits, primarily due to inflation and diminished benefits from commodity price hedges, while cash selling, general, and administrative expenses (SG&A) rose in mid-single digits because of increased investments in brand support and higher administrative costs linked to elevated variable compensation accruals.
“Looking ahead, we remain focused on executing our commercial strategy and are confident in our preparedness for the Summer season in South America, with healthier brands and sustained all-time-high NPS levels,” Ambev said.
Price Action: ABEV shares are trading lower by 3.08% to $2.20 at last check Thursday.
Photo: Engin Akyurt from Pixabay
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