Ambev S.A. Q4 FY2025 earnings call

Key Messages

• Avoided disruptions by maintaining execution consistency and making improvements without destabilizing the organization.
• Kept momentum by advancing quarter-by-quarter on different fronts and finishing 2025 with better performance for 2026.
• Built a stronger company by advancing on 3 strategic pillars: bridging beer potential and consumption, using data/tech to shape future, and expanding EBITDA margin.
• Strengthened portfolio, got closer to customers/consumers, and advanced profitability. Employee engagement indicators reached all-time highs.
• Beer fundamentals remain strong with category equity strengthening; headwinds were cyclical.
• BEES marketplace GMV grew 70% in 2025 with gross margin up 3.5 percentage points. Zé Delivery closed 2025 with BRL 4.7 billion GMV, 67 million orders, and 27 million yearly active users.
• Consolidated organic EBITDA margin expanded by 50 basis points, and in Brazil Beer by 110 basis points. Announced BRL 20 billion in shareholder returns in 2025.

In 2025, Ambev saw EBITDA growth across all business units and margin expansion in 4 out of 5. Brazil Beer: full year volumes in line with soft industry; Q4 volumes recovered with market share gains in premium, super premium, balanced choices, and nonalcohol. Brazil NAB: Disciplined execution supported EBITDA growth with margin expansion, Guaraná Antartica's equity improved. Argentina: Macro environment improved but consumption recovery slower. Dominican Republic: Consumption improved, beer gained share. Canada: Outperformed beer and beyond beer industries, EBITDA margin expanded.

Forward-Looking

• For 2026, Brazil Beer cash COGS per hectoliter, excluding non-Ambev marketplace products, expected to increase 4.5% to 7.5% driven by commodity prices and portfolio mix.
• Capital allocation priorities: reinvest in organic growth, disciplined M&A, and consistently return excess cash to shareholders.

Risks

• General economic conditions, industry conditions, and other operating factors could affect future results.
• FX and commodity headwinds.
• Weather-related disruptions impacting volumes, as seen in 2025 Brazil beer volumes.

Q: Nadine Sarwat asked about Brazil Beer volume growth in December and trends in January, and Brazil NAB revenue management decisions and 2026 volumes.

A: Carlos Eduardo Lisboa said December volume growth was due to weather recovery, and for 2026, Brazil NAB's volume trends depend on execution and market dynamics. Guilherme Fleury added on Brazil Beer cash COGS guidance for 2026.

Q: Henrique Brustolin inquired about SG&A, hedging, and efficiencies for 2026.

A: Guilherme Fleury stated Brazil Beer cash COGS guidance for 2026 and emphasized continuing initiatives for margin expansion. Carlos Eduardo Lisboa complemented on the stress test nature of 2025 preparing the company.

Q: Gustavo Troyano asked about dividend policy for 2026.

A: Guilherme Fleury said they continue quarterly discussions on cash position and capital allocation, with shareholder returns a priority.

Q: Thiago Duarte questioned core brand relevance vs. premium brands and SG&A dilution.

A: Carlos Eduardo Lisboa stated core brands play a meaningful role with accessibility and regional versatility, and Guilherme Fleury linked core's impact to weather-impacted occasions.

Q: Renata Cabral asked about GLP-1 drug impact on Ambev's portfolio.

A: Carlos Eduardo Lisboa said weather impact on out-of-home beer occasions was the main factor in 2025, and Ambev is working on versatile products to attend trends.

Q: Isabella Simonato asked about Brazil 2026 beer pricing strategy and mix during the World Cup.

A: Carlos Eduardo Lisboa said pricing balances accessibility and profitability, with portfolio completeness and digital ecosystem aiding revenue management. Guilherme Fleury added on holistic cost and resource allocation for margin expansion ambition.