SYS-CON MEDIA Authors: Pat Romanski, Jnan Dash, Elizabeth White, Yeshim Deniz, Nikita Ivanov

News Feed Item

Ambev Reports 2014 Second Quarter Results Under IFRS

SAO PAULO, July 31, 2014 /PRNewswire/ -- Ambev S.A. [BOVESPA: ABEV3; NYSE: ABEV] announces today its results for the 2014 second quarter. The following operating and financial information, unless otherwise indicated, is presented in nominal Reais and prepared according to International Financial Reporting Standards (IFRS), and should be read together with our quarterly financial information for the six-month period ended June 30, 2014 filed with the CVM and submitted to the SEC.

Operating and Financial Highlights

Top line performance: During the quarter we delivered 9.2% net revenue growth. Volume expanded 4.9% while net revenue per hectoliter (NR/hl) grew 4.1%. This performance was mainly driven by a double-digit result in Brazil (11.3% net revenue growth), in both Beer (+11.2%) and CSD (+11.7%), and Hila-Ex (+19.2% net revenue growth).

Cost of Goods Sold (COGS): Our COGS increased 15.5% in 2Q14. On a per hectoliter basis, costs increased 10.2%, mainly explained by a one time negative packaging mix related to the 2014 FIFA World Cup in Brazil on top of the impact from higher currency hedges in Brazil, LAS and Canada, partially offset by favorable commodities hedges.

Selling, General & Administrative (SG&A) expenses: SG&A expenses (excluding depreciation and amortization) were up 6.8% in the quarter. This was mainly driven by (i) sales and marketing expenses, as this quarter concentrated most of the initiatives related to the 2014 FIFA World Cup; (ii) higher distribution costs, impacted by volumes and a higher weight of direct distribution in Brazil and (iii) inflationary pressures in Argentina.

EBITDA, Gross margin and EBITDA margin: Our Normalized EBITDA grew 5.4% in 2Q14, reaching R$ 3,327.4 million. Normalized EBITDA margin contracted 150 basis points to 40.7% driven by a gross margin contraction of 210 basis points to 62.8%, mainly explained by the one-time negative packaging mix impact in Brazil.

Normalized Net Profit and EPS: Our Normalized Net Profit was R$ 2,222.7 million in the quarter, 16.0% above last year, positively impacted by our operational performance and a lower effective tax rate. Normalized Earnings Per Share (EPS) were up 16.7% to R$ 0.14 in the quarter.

Operating Cash generation and CAPEX: Cash generated from our operations in 2Q14 improved 15.7% when compared to the same period last year, totaling R$ 2,982.6 million. During the second quarter of 2014 we invested a total of R$ 1,120.6 million in capital expenditures.

Pay-out and Financial discipline: On July 14th, we announced a dividend and interest on capital distribution totaling R$ 2.5 billion that will be paid as from August 28th. Year to date, we have already paid/announced close to R$ 8.5 billion in cash payout, a 67% increase over the same period of last year. As of June 30th, our net cash position was R$ 3,748.8 million, not accounting yet for distribution announced on July 14th, 2014.

Financial Highlights – Ambev

2Q13


% As

%

YTD13


% As

%

Consolidated 

Reference

Reference

R$ million

Base

2Q14

Reported

Organic

Base

YTD14

Reported

Organic

Total volumes

37,303.1

39,310.6

5.4%

4.9%

77,521.1

82,295.2

6.2%

5.9%

Beer

27,163.5

28,580.6

5.2%

4.6%

55,947.6

59,785.8

6.9%

6.5%

CSD and NANC

10,139.6

10,730.0

5.8%

5.8%

21,573.5

22,509.5

4.3%

4.3%










Net sales

7,570.2

8,177.4

8.0%

9.2%

15,402.2

17,222.5

11.8%

13.1%

Gross profit

4,903.2

5,136.8

4.8%

5.8%

10,037.4

11,173.5

11.3%

12.7%

Gross margin

64.8%

62.8%

-200 bps

-210 bps

65.2%

64.9%

-30 bps

-20 bps

EBITDA

3,233.3

3,320.2

2.7%

4.5%

6,856.4

7,364.6

7.4%

9.8%

EBITDA margin

42.7%

40.6%

-210 bps

-190 bps

44.5%

42.8%

-170 bps

-120 bps

Normalized EBITDA

3,238.6

3,327.4

2.7%

5.4%

6,862.7

7,378.4

7.5%

10.3%

Normalized EBITDA margin

42.8%

40.7%

-210 bps

-150 bps

44.6%

42.8%

-180 bps

-110 bps

Profit

1,911.3

2,215.6

15.9%


4,284.6

4,812.4

12.3%


Normalized Profit

1,916.6

2,222.7

16.0%


4,290.8

4,826.1

12.5%


EPS (R$/shares)

0.12

0.14

16.8%


0.27

0.30

12.6%


Normalized EPS

0.12

0.14

16.7%


0.27

0.30

12.1%


Note: Earnings per share calculation is based on outstanding shares (total existing shares excluding shares held in treasury).

This press release segregates the impact of organic changes from those arising from changes in scope or currency translation. Scope changes represent the impact of acquisitions and divestitures, the start up or termination of activities or the transfer of activities between segments, curtailment gains and losses and year over year changes in accounting estimates and other assumptions that management does not consider as part of the underlying performance of the business. Unless stated, percentage changes in this press release are both organic and normalized in nature. Whenever used in this document, the term "normalized" refers to performance measures (EBITDA, EBIT, Profit, EPS) before special items adjustments. Special items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are important for the understanding of the underlying sustainable performance of the Company due to their size or nature. Normalized measures are additional measures used by management and should not replace the measures determined in accordance with IFRS as indicators of the Company's performance. Comparisons, unless otherwise stated, refer to the second quarter of 2013 (Q2 2013). Values in this release may not add up due to rounding.

SOURCE Ambev America Beverage

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big D...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
The Internet of Things promises to transform businesses (and lives), but navigating the business and technical path to success can be difficult to understand. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, demonstrated how to approach creating broadly successful connected customer solutions using real world business transformation studies including New England BioLabs and more.
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Ar...
"SAP had made a big transition into the cloud as we believe it has significant value for our customers, drives innovation and is easy to consume. When you look at the SAP portfolio, SAP HANA is the underlying platform and it powers all of our platforms and all of our analytics," explained Thorsten Leiduck, VP ISVs & Digital Commerce at SAP, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SAP is delivering break-through innovation combined with fantastic user experience powered by the market-leading in-memory technology, SAP HANA. In his General Session at 15th Cloud Expo, Thorsten Leiduck, VP ISVs & Digital Commerce, SAP, discussed how SAP and partners provide cloud and hybrid cloud solutions as well as real-time Big Data offerings that help companies of all sizes and industries run better. SAP launched an application challenge to award the most innovative SAP HANA and SAP HANA...
Connected devices and the Internet of Things are getting significant momentum in 2014. In his session at Internet of @ThingsExpo, Jim Hunter, Chief Scientist & Technology Evangelist at Greenwave Systems, examined three key elements that together will drive mass adoption of the IoT before the end of 2015. The first element is the recent advent of robust open source protocols (like AllJoyn and WebRTC) that facilitate M2M communication. The second is broad availability of flexible, cost-effective ...
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using ...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, discussed single-value, geo-spatial, and log time series dat...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Fundamentally, SDN is still mostly about network plumbing. While plumbing may be useful to tinker with, what you can do with your plumbing is far more intriguing. A rigid interpretation of SDN confines it to Layers 2 and 3, and that's reasonable. But SDN opens opportunities for novel constructions in Layers 4 to 7 that solve real operational problems in data centers. "Data center," in fact, might become anachronistic - data is everywhere, constantly on the move, seemingly always overflowing. Net...