AmBev Reports Third Quarter 2006 Results

Nov 09, 2006, 00:00 ET from AmBev

    SAO PAULO, Brazil, Nov. 9 /PRNewswire-FirstCall/ -- Companhia de
 Bebidas das Americas - AmBev (BOVESPA: AMBV4, AMBV3) and (NYSE:   ABV, ABVc),
 the world's fifth largest brewer and the leading brewer in Latin America,
 announces today its results for the third quarter 2006 (3Q06). 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 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 third quarter 2005
     -- Consolidated EBITDA reached R$1,824.0 million (+18.0%). EBITDA margin
        reached 42.1% (+250 bps).
     -- Beer Brazil EBITDA's grew 18.0%, achieving 48.2% margin; AmBev market
        share reached 68.6% during 3Q06, and sales volume increased 4.3%.
     -- CSD & Nanc sales volume rose 10.4% in Brazil; EBITDA amounted to R$
        132.4 million, up 4.4% reaching 30.9% margin.
     -- Quinsa total EBITDA grew 31.9% in US dollars, excluding the higher
        stake from AmBev in Quinsa.
     -- Labatt EBITDA increased 4.5% in Canadian dollars, and the EBITDA margin
        reached 43.0% in North American operation.
     -- Net earnings per thousand shares rose 23.9%. Excluding goodwill
        amortization, we observed a 23.4% increase in earnings per thousand
     Financial Highlights - AmBev Consolidated                            %
     R$ million                                   3Q06         3Q05     Change
     Net revenues                               4,337.3      3,910.3     10.9%
     Gross profit                               2,857.8      2,518.6     13.5%
     EBIT                                       1,531.5      1,197.6     27.9%
     EBITDA                                     1,824.0      1,546.0     18.0%
     Net income                                   486.1        399.1     21.8%
     No. of shares outstanding
      (millions)                               64,458.2     65,580.1     -1.7%
     EPS (R$/000 shares)                           7.54         6.09     23.9%
     EPS excl. goodwill
      amortization (R$/000 shares)                12.77        10.35     23.4%
     EPS (US$/ADR)                                 0.35         0.26     33.6%
     EPS excl. goodwill
      amortization (US$/ADR)                       0.59         0.44     33.1%