Ambev Q1 Earnings Call Highlights

Key Points

• Ambev reported a “solid start” to 2026 with total volumes broadly flat and beer volumes back to low-single-digit growth, net revenue up high-single-digits, and normalized EBITDA rising 10.1% with 60 basis points of margin expansion.
• In Brazil the company gained market share despite industry softness, driven by a mix shift toward premium and no‑alcohol products (premium volumes +20%+, Corona Cero +70%+), helping Brazil beer NR/hl rise 8.3% from carryover, revenue management and mix.
• Ambev generated stronger operating cash flow (BRL 3.2bn), is continuing buybacks and new interest‑on‑capital payments, but faces cost pressure (Brazil beer cash COGS/hl +14.6%) with guidance for a 4.5–7.5% COGS increase in 2026, and expects World Cup and expanded digital channels (BEES, Zé Delivery) to support demand.

Ambev NYSE: ABEV executives pointed to a “solid start” to 2026, highlighting a return to beer volume growth, high single-digit net revenue expansion, and double-digit normalized EBITDA growth despite continued cost headwinds. Speaking on the company’s first-quarter earnings call, CEO Carlos Lisboa said the quarter showed how the company’s strategy is strengthening across its footprint, while CFO Guilherme Fleury emphasized cash generation and disciplined capital allocation, including continued shareholder returns.

Quarterly performance: flat total volumes, beer back to growth

Lisboa said total volumes were “broadly flat against the toughest comparison base of the year,” while beer volumes returned to growth, up low single-digit. He added that net revenue grew high single-digit, supported by net revenue per hectoliter (NR/hl) growth.

“Even with continued cost pressure, we delivered double digits, EBITDA growth with margin expansion of 60 basis points, while net income grew by a low single digit,” Lisboa said, also pointing to “solid operational cash flow generation” and “continued discipline in returning cash to shareholders.”

Fleury provided the financial details, reporting normalized EBITDA of BRL 7.6 billion, with 60 basis points of margin expansion. He said normalized EBITDA grew 10.1%, while normalized net income rose 0.3% to BRL 3.8 billion, translating to normalized EPS of BRL 0.24, up 0.5% year over year. Net financial expenses totaled BRL 1 billion, around BRL 200 million higher than the prior year, “mainly driven by higher carry costs on derivative instruments,” he said.

Brazil beer: industry softness, but Ambev cites share gains and mix shift

In Brazil, Lisboa said the beer industry declined mid-single digit year over year in the quarter, though it improved sequentially versus the fourth quarter of 2025. He attributed the industry softness primarily to cyclical factors affecting consumption occasions, particularly weather, rather than structural demand issues.

Within that backdrop, Lisboa said Ambev’s Brazil beer volumes grew 1.2% and the company entered 2026 “from a stronger commercial position,” supported by continued market share progression. He said premium volumes rose more than 20%, led by Stella Artois, Corona, and Original. Balanced choices grew over 70%, with Stella Pure Gold and Michelob ULTRA more than doubling. No-alcohol beer grew low teens, with Corona Cero up more than 70% and Skol Zero Zero gaining traction, reaching double digits of the no-alcohol segment mix by quarter-end, according to Lisboa.

He also said the company’s “core plus value” portfolio declined low single digit but performed ahead of the total industry decline and gained market share versus last year, based on the company’s estimates. Beyond Beer grew “in the 20s,” led by Beats, Brutal Fruit, and Flying Fish, which Lisboa described as the newest member of the portfolio.

Ambev’s Brazil beer NR/hl increased 8.3% in the quarter. Responding to analyst questions, Lisboa attributed the NR/hl performance to three components:

• Carryover from the company’s 2025 revenue management agenda, which he described as an “easier comp” given limited carryover from 2024 into 2025.
• Revenue management actions implemented into 2026.
• Mix, as above-core continued to grow, contributing to NR/hl.

Lisboa said the company aims to keep pricing “broadly in line with inflation over time” while capturing positive mix. On the tax front, he added there was “nothing that was important to highlight during the quarter.”

On digital and route-to-market, Lisboa said BEES Marketplace had about 75% of Ambev’s customer base buying through the platform, helping gross merchandise value (GMV) double, supported by continued third-party expansion. He said Zé Delivery represented a mid-single-digit share of Brazil beer volumes, with GMV up high single digit in the quarter, including 16 million orders delivered to 5 million monthly active users.

Other business units: Brazil NAB margin expansion; mixed volume trends abroad

In Brazil non-alcoholic beverages (NAB), Lisboa said volumes declined 3.9% amid a tough comparison base and less favorable prior-year pricing relativity, though he noted relativity and market share improved sequentially. He said the company’s non-sugar portfolio grew mid-teens, led by Guaraná Zero, Pepsi Black, and H2OH!. Despite the volume decline, Lisboa said disciplined execution supported P&L performance, with top-line growth of 1.8% and EBITDA up 16.4%, alongside 400 basis points of margin expansion.

In Argentina, Lisboa said the macro environment stabilized versus a year ago, with lower inflation and less FX volatility, but that improvement had not yet translated into a “meaningful recovery in consumption.” He said the beer industry remained soft and Ambev volumes declined low single digit, though sell-out market share rose year over year, supported by “mega brands equity.” Above-core grew high single digit, led by Stella Artois and Michelob ULTRA. Lisboa said the company is focused on disciplined revenue management while investing behind brands, adding that Quilmes and Michelob ULTRA will be key consumer connection platforms as the country builds momentum toward the FIFA World Cup.

In the Dominican Republic, Lisboa said total volumes grew high single digit amid an improving consumption environment and healthier category dynamics. Market share remained stable, and Presidente brand health reached all-time highs, he said.

In Canada, Lisboa said the beer industry fell mid-single digit, pressured by a weak consumer backdrop and unfavorable weather. Ambev maintained stable share in beer and gained share in beyond beer, he said. Despite a 2% volume decline, Lisboa reported EBITDA grew 6.7% with 160 basis points of margin expansion.

Costs, cash flow, and shareholder returns

Fleury said consolidated cash COGS per hectoliter (excluding marketplace) increased 9% in the quarter, with Brazil beer up 14.6%, reflecting FX and commodities pressure that he expects to “gradually ease starting in the second quarter.” Consolidated cash SG&A rose 4.8%, with efficiencies “mainly from distribution expenses” driven by operational leverage in Brazil beer. Consolidated sales and marketing grew 5.1%, and Fleury noted spending tends to follow the company’s mega platform events calendar, which this year includes the FIFA World Cup in the second quarter.

Cash flow from operating activities totaled BRL 3.2 billion, up BRL 2 billion year over year, driven primarily by improved working capital dynamics, including packaging raw material inventory management and improved payables, Fleury said. Cash used in investing activities totaled BRL 2.4 billion, reflecting, among other factors, a BRL 2 billion impact from the deconsolidation of assets previously reported as restricted cash in CAC, he added.

On capital returns, Fleury said the company continues executing its ongoing share buyback program announced in October. He also said the board approved the payment of BRL 1.2 billion related to the second tranche of interest on capital (IOC) declared in December 2025, and a new IOC declaration of BRL 700 million to be paid by December 2026.

Fleury said Ambev maintained its guidance for Brazil beer cash COGS per hectoliter (excluding marketplace) to increase 4.5% to 7.5% in 2026 and reiterated the company’s ambition to expand consolidated margin over time.

Outlook: “year of socialization” and World Cup tailwinds

Lisboa said 2026 is “shaping up to be the year of socialization,” citing an occasion-driven calendar that includes Carnival and the FIFA World Cup. He said the World Cup historically contributes about 0.3 to 0.4 percentage points to annual industry growth, with the impact typically concentrated in the second and third quarters.

He added that the company’s portfolio breadth and digital platforms are expected to play a larger role in activations than in prior cycles. Fleury said the company’s digital ecosystem is more developed versus previous World Cups, pointing to consumer engagement through Zé Delivery and customer engagement through BEES.

Closing the call, Lisboa reiterated confidence in beer as a “loved and versatile category” with room to grow and said the company’s three strategic pillars—portfolio/category leadership, digital ecosystem development, and financial discipline—are intended to operate as a reinforcing flywheel.

About Ambev NYSE: ABEV

Ambev NYSE: ABEV is a Brazilian-based beverage company that produces, distributes and markets a broad portfolio of alcoholic and non-alcoholic drinks. The company's core business centers on brewing and selling beer, alongside a range of soft drinks, bottled water, energy drinks and other malt-based beverages. Headquartered in São Paulo, Ambev operates an integrated value chain that covers manufacturing, packaging, logistics and commercial sales to retail, on-premise and institutional customers.

The company traces its origins to the 1999 merger of two historic Brazilian breweries, and later became part of the broader global brewing group through subsequent industry consolidations.

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