Shareholder’s Roundup: Ambev S.A. (NYSE: ABEV)

On Monday, Shares of Ambev S.A. (NYSE: ABEV) showed the bearish trend with a lower momentum of -2.41% and ended its trading session at $4.24. The company traded total volume of 8,386,624 shares as contrast to its average volume of 31.08M shares. The company has a market value of $68.38B and about 15.72B shares outstanding.

Ambev S.A. [NYSE: ABEV] declares its results for the third quarter of 2018.

EBITDA, gross margin and EBITDA margin: In 3Q18, EBITDA reached R$ 4,450.80M, with an organic growth of 9.0%, gross margin of 60.5% (+130bps) and EBITDA margin of 40.2% (+120bps). In 9M18, EBITDA was R$ 13,623.50M (+11.7%, organically), with gross margin and EBITDA margin amounting 61.4% (+180bps) and 39.8% (+150bps), respectively. Both in 3Q18 and 9M18 stated EBITDA includes the negative impact of R$ 573.80M resulting from Hyperinflation Accounting in Argentina.

Normalized profit and EPS: Normalized profit was R$ 2,907.40M in 3Q18, 10.2% lower than in 3Q17, as EBITDA organic growth was influenced by the adverse effects of Hyperinflation Accounting in Argentina. Normalized EPS in the quarter was R$ 0.18 (-8.2%). In 9M18, normalized profit increased by 2.2%, reaching R$ 7,866.80M, with normalized EPS of R$ 0.49 (+3.7%). Without Hyperinflation Accounting impacts, 3Q18 and 9M18 EPS would correspond to R$ 0.20 (+0.6%) and R$ 0.50 (+7.4%), respectively.

Cash generation and CAPEX: Cash flow from operating activities in 3Q18 was R$ 5,257.30M (+15.2%) and CAPEX reached R$ 940.40M (+29.2%). In 9M18, cash flow from operating activities totaled R$ 9,125.00M (+1.7%) and CAPEX rose 8.8% to R$ 2,218.20M.

Payout and financial discipline: Year to date, we have paid/declared R$ 3.60B in dividends. As of September 30, 2018, our net cash position was R$ 7,234.30M.

The stock, as of recent close, has shown the weekly upbeat performance of 2.59% which was maintained at -32.66% in this year.

Marion Frost

Marion Frost

I am Marion Frost and I have over 16 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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