AmBev Reports First Quarter 2007 Results

May 10, 2007, 01:00 ET from AmBev

    SAO PAULO, Brazil, May 10 /PRNewswire-FirstCall/ -- Companhia de
 Bebidas das Americas - AmBev (NYSE:   ABV, ABVc and BOVESPA: AMBV4, AMBV3)
 the world's fifth largest brewer and the leading brewer in Latin America,
 announces today its results for the First Quarter 2007 (1Q07). The
 following financial and operating information, unless otherwise indicated,
 is presented in nominal Reais pursuant to Brazilian GAAP.
     AmBev's consolidated results are the sum of the three following
 business units:
     -- Brazil: comprised of (i) Beer Brazil; (ii) CSD & Nanc (Carbonated Soft
        Drinks and Nanc -- Non-Alcoholic, Non-Carbonated beverages); and (iii)
        Malt and By-Products Sales;
     -- Hispanic Latin America (HILA): comprising (i) AmBev's economic stake in
        Quinsa; and (ii) HILA-ex (which corresponds to AmBev's controlled
        operations in Northern Latin America); and
     -- North America: representing the operations of the Canadian Labatt
        Brewing Company Limited ("Labatt").
     Comparisons, unless otherwise stated, refer to the First Quarter 2006
     -- Consolidated EBITDA amounted to R$2,031.2 million (+18.9%). EBITDA
        margin reached 43.6% (+50 bps).
     -- Beer Brazil's EBITDA grew 9.5%, reaching a margin of 52.1%; AmBev
        market share reached 67.6% in 1Q07; and sales volume increased 5.1%.
     -- CSD & Nanc sales volume rose 9.9% in Brazil; EBITDA reached R$194.8
        million, increasing 10.0%, reaching a margin of 38.4%.
     -- Quinsa total EBITDA grew 19.5% in US dollars, and average AmBev
        consolidation in Quinsa throughout the 1Q07 reached 100.0%
       (1Q06: 59.8%); EBITDA margin reached 44.1%.
     -- Labatt's EBITDA increased 8.8% in Canadian dollars, with EBITDA margin
        reaching 29.7% (+190 bps).
     -- Earnings per thousand shares rose 1.5%. Excluding goodwill
        amortization, the increase was 13.4%.
     Financial Highlights - AmBev Consolidated                           %
     R$ million                                    1Q07        1Q06    Change
     Net revenues                               4,655.0     3,969.7     17.3%
     Gross profit                               3,103.0     2,644.7     17.3%
     EBIT                                       1,741.4     1,422.3     22.4%
     EBITDA excluding higher stake in Quinsa    1,894.7     1,709.0     10.9%
     EBITDA (as reported)                       2,031.2     1,709.0     18.9%
     Net income                                   645.9       655.9     -1.5%
     No. of shares outstanding (millions)      62,958.2    64,917.7     -3.0%
     EPS (R$/000 shares)                          10.26       10.10      1.5%
     EPS excl. goodwill amortization
      (R$/000 shares)                             16.57       14.61     13.4%
     EPS (US$/ADR)                                 0.49        0.46      6.4%
     EPS excl. goodwill amortization
      (US$/ADR)                                    0.79        0.66     18.8%
     (1) Average exchange rates between Reais and US Dollars used for 1Q07 and
         1Q06 were R$2.10/US$ e R$2.20/US$, respectively.
     (2) The average exchange rates between Reais and Canadian Dollars used for
         1Q07 and 1Q06 were R$1.80/CAD$ e R$1.89/CAD$, respectively.
     (3) Per share calculation is based on outstanding shares (total existing
         shares excluding shares held in treasury).
     (4) Values may not add up due to rounding.
     The full release is available at