Ambev Revenue Miss Overshadows Strong Beer Growth, Higher Margins

Ambev S.A. (NYSE:ABEV) shares traded lower Thursday after the brewer reported second-quarter 2026 results, as organic growth was overshadowed by a revenue miss.

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Adjusted EPS of four cents per ADS was in line with estimates, while revenue of $3.973 billion missed the $4.330 billion estimate.

"The consistent execution of our growth strategy translated into another quarter of beer volume growth, with solid top and bottom-line performance," CEO Carlos Lisboa said.

Management said disciplined revenue management and resource allocation supported growth despite stepped-up FIFA World Cup brand investments.

It attributed estimated market-share gains to a more complete portfolio and said BEES improved demand visibility and execution.

Earnings and Margins

Net revenue totaled 20.15 billion Brazilian reais, up 0.3% as reported and 6.1% organically. GAAP EPS increased 25.4% to 0.22 Brazilian reais, while normalized profit rose 23.3% to 3.49 billion Brazilian reais.

Volumes increased 1.4% organically to 39.73 million hectoliters, with beer volumes up by a mid-single-digit percentage. Revenue per hectoliter rose 4.6%.

Gross profit increased 10.5% organically to 10.45 billion Brazilian reais.

Gross margin expanded 200 basis points to 51.9%, while normalized EBITDA rose 8.9% to 6.38 billion Brazilian reais and margin expanded 80 basis points to 31.6%.

Regional and Portfolio Performance

Brazil Beer revenue rose 8.9% as volumes increased 5%, driving 12.8% normalized EBITDA growth.

Brazil nonalcoholic beverage revenue gained 1.4% despite a 4.4% volume decline.

Organic revenue increased 7.1% in Central America and the Caribbean, 4.4% in Latin America South, and 2.1% in Canada.

Premium volumes grew by the high teens, balanced choices by the mid-60% range and no-alcohol beer by the low 20% range.

BEES Marketplace GMV rose 58%, while Zé Delivery GMV increased 16%.

Cash Flow and Outlook

Operating cash flow rose 54.5% to 4.71 billion Brazilian reais.

Ambev returned about 5.9 billion Brazilian reais to shareholders year to date and approved a new 1.1 billion-Brazilian-real interest-on-capital distribution.

The company maintained its Brazil Beer cash-cost-per-hectoliter growth forecast of 4.5% to 7.5%, while noting foreign-exchange and commodity pressures, adverse weather, Bolivia disruptions and a dynamic geopolitical environment.

ABEV Price Action: Ambev shares were down 1.62% at $3.05 at the time of publication on Thursday, according to Benzinga Pro data.

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