Ambev S.A. Q2 FY2025 earnings call

Pillar 1: Lead and grow the category

• Premium and super Premium brands grew low teens, expanding in 7 out of top 10 markets.
• Balanced Choice portfolio grew in the low 20s, addressing evolving consumer preferences. Activations on platforms like FIFA Club World Cup and Roland-Garros boosted brand equity.
• Core segment volumes declined due to industry environment and revenue management decisions.

Pillar 2: Digitize and monetize the ecosystem

• Bees Marketplace GMV grew 90% to BRL 7.4 billion, led by partnerships like Nestle and L'Oréal.
• Zé Delivery GMV up 7% with average order value up 11%. Digital platforms strengthened Core business.

Pillar 3: Optimize our business

• Disciplined cost efficiency offset non-commodity cost inflation, saving over BRL 500 million. SKU rationalization in Brazil Beer improved productivity.

Premium and super Premium brands delivered low teens growth, expanding in 7 out of top 10 markets. The Balanced Choice portfolio maintained strong growth momentum, expanding in the low 20s. Core segment had stable brand equity but volumes declined. Bees Marketplace saw GMV grow in the 90s, reaching an annualized BRL 7.4 billion. Zé Delivery achieved a 7% increase in GMV with an 11% rise in average order value.

Dividend

• Board approved intermediary dividend payout of BRL 2 billion, total BRL 6 billion declared this year.

Performance outlook

• Confident in second half performance based on year-to-date results and strategic execution.

• Soft industry volumes in several markets due to adverse weather conditions.
• Impact of Argentine peso devaluation on financial results in Argentina.
• Sensitivity of Core segment volumes to industry environment and revenue management decisions.

Q: Regarding top line and volume performance in Brazil.

A: Explained weather impact, revenue management decisions, and expectations for second half.

Q: On digital and loss.

A: Talked about Bees Marketplace growth, partnerships, and Argentina's market dynamics.

Q: On costs and hedging.

A: Maintaining hedging strategy, confident in cash COGS guidance for 2025.

Q: On pricing dynamics.

A: Discussed price relativity, net revenue per hectoliter as a key lever, and balance between pricing and cost inflation.