On February 14, 2018, Ambev SA (ADR)(NYSE:ABEV) entered its Quiet Period, which is set to last until the conference call planned by company’s Senior Management. During this period, company will not comment on topics pertaining to its results in attempt to ensure greater fairness and transparency in the information issued to the market.

Last quarter performance

In Q3 2017, Ambev reported that it touched an inflection point, supported by a remarkable performance in a majority of its key markets. Consolidated top line came at 9.6% and EBITDA stood at 15.8%, with margin expansion coming at 220bps.

Mainly for Beer Brazil, the company left 1H2017 with an exceptional market position. As it started 2H2017, it has been able to return to their arrangement of sustainable growth. The revenue management measures implemented during the third quarter contributed to a growth in top line, with NR/hl growing by a strong 15.8% that, along with an enhanced cost performance, translated into EBITDA increase of 25.7% and margin jump of 540bps.

Beer Brazil volumes declined 5.4%, impacted by a still slowing industry. Along with that, in the reported period, Ambev carried out its annual price adjustments, what led in a tough comparable base, following the later timing of its price adjustments last year. For this reason, it will exhibit an easy comparable base in Q4 2017. Year to date, volumes dropped by 1.1%, surpassing the industry that is declining around 2%. During the quarter, the company also continued to put initiatives in its plan, focusing on commercial platforms.

The third quarter was marked by a significant event for Ambev. For the first time, company marked as the brewery that obtained the highest count of medals in the renowned competition named World Beer Awards. This event showed participation from the top breweries in the world. Ambev received 27 medals, which indicate the company has greatest beers worldwide.


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