Ambev S.A. Q3 FY2025 earnings call

• Pillar 1: Lead and grow the category: Lead beer category with core brands resilient, premium/super premium growing >9%; Balanced Choices portfolio grew 36% (non-alcohol >20%). - Pillar 2: Digitize and monetize the ecosystem: BEES Marketplace GMV grew 100% to annualized BRL 8 billion; Zé Delivery GMV up 7% with 9% AOV increase; BEES enabled data-driven revenue and cost management. - Pillar 3: Optimize our business: Disciplined cost management, expanded EBITDA margin in most business units; Brazil beer situational factors (weather, consumer purchasing power) impact out-of-home occasions, but brands showed strong momentum.

Brazil Beer: Net revenue grew with resilient brands; core brands resilient despite volume decline, premium/super premium brands grew volumes >9%, balanced choice portfolio grew 36% (non-alcohol >20%). Brand equity improved, gained low single-digit sellout market share. Brazil NAB: CSD industry decelerated, revenue management impacted inventory, brands strengthened, nonsugar portfolio grew double-digit, >25% of total NAB volumes. Argentina: Beer volumes declined mid-single digit, brand equity stable. Dominican Republic: Operating environment improved, Presidente brand strengthened. Canada: Beer industry declined mid-single digit, outperformed industry, beer performance led by Michelob Ultra, Busch, and Corona.

Brazil beer cash COGS per hectoliter guidance remains; working hard to deliver guidance within the range of 5.5% to 7%, excluding marketplace.

• Situational factors like colder weather and constrained consumer purchasing power affecting out-of-home beer occasions in Brazil; weather still a concern in October, income constraints continuing to impact disposable spending.

Q: On COGS line, details on why COGS were lower and guidance for fourth quarter?

A: Fleury mentioned COGS lower due to series of initiatives on production costs, brewery footprint, vertical operations; guidance remains, working to deliver Brazil beer cash COGS per hectoliter within range.

Q: Beer industry environment in Brazil, trend into Q4, consumer part?

A: Lisboa said weather still a concern in October, structural momentum of brands gives confidence; World Cup next year provides opportunity, holidays in Brazil help create new consumption occasions.

Q: Sustainability of SG&A reduction, pricing in Brazil Beer?

A: Fleury said SG&A reduction due to managing distribution costs with lower volumes, maintaining sales and marketing investment; Lisboa said ambition to keep prices in line with inflation for consumer accessibility.

Q: Price and volume correlation, LAS margins?

A: Lisboa said beer CPI in line with overall CPI, timing of price increase right; Fleury said LAS margins driven by Bolivia's strong results offsetting Argentina's tougher market.