Ambev Reports 2010 Third Quarter Results Under IFRS
SAO PAULO, Nov. 3, 2010 /PRNewswire-FirstCall/ -- Companhia de Bebidas das Americas – Ambev [BOVESPA: AMBV4, AMBV3; andNYSE: ABV, ABVc] announces today its results for the 2010 third quarter (Q3 2010). The following financial and operating information, unless otherwise indicated, is presented in nominal Reais and prepared in accordance with International Financial and Reporting Standards (IFRS), and should be read in conjunction with our quarterly financial information for the three and nine months period ended September 30, 2010 filed with the CVM and submitted to the SEC.
This press release segregates the impact of organic changes from those arising from changes in scope or currency translation. "Scopes" represent the impact of acquisitions and divestitures, monetary restatement for hyperinflationary economies, and the start-up or termination of activities. Unless stated, percentage changes in this press release are both organic and normalized in nature. Whenever used in this document, the term "normalized" refers to performance measures (EBITDA, EBIT, Profit, EPS) before special items. Special items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are important for the understanding of the underlying sustainable performance of the Company due to their size or nature. Normalized measures are additional measures used by management, and should not replace the measures determined in accordance with IFRS as an indicator of the Company's performance. Comparisons, unless otherwise stated, refer to the third quarter of 2009 (Q3 2009). Values in this release may not add up due to rounding.
OPERATING AND FINANCIAL HIGHLIGHTS
Top line performance: Net sales grew 12.6% driven by volume growth as well as price increases across our regions, with Net Revenue/hl growing 4.2% in the period. Volume growth of 8.1% in the period was driven by a 12.0% volume growth in Brazil, 4.1% volume growth in HILA-Ex and 2.1% volume growth in Latin America South, which was partly offset by volume contraction of -5.4% in Canada.
Cost of Goods Sold (COGS) and Selling, General & Administrative (SG&A) expenses: COGS/hl increased by 5.7% due sugar hedges as well as packaging costs, which were partly offset in the quarter by gains in aluminum and barley hedges and productivity initiatives. SG&A (excl. depreciation & amortization) increased by 10.3% driven by volume growth, inflation, higher logistic costs and investments in the market to support our brands.
EBITDA, Operating Cash generation and Profit: Our Normalized EBITDA reached R$2,655.6 million in Q3 2010, a growth of +12.3%, while margin contracted 10bps in the period to 44.4%. Cash generated from operations in Q3 was R$2,574.2 million bringing year to date to R$7,542.7 million, an increase of 11.5% as compared to same 2009 period. Our Normalized Profit was R$5,059.9 million (+26.7%) year to date while our Normalized Earnings per share (EPS) grew 25.8%.
Payout and Financial discipline: We paid approximately R$ 2 billion in dividends and interests on capital on October 14th and have announced another R$ 2 billion to be paid on December 15th, which will take full year total payout to approximately R$ 5 billion.
Financial Highlights – Ambev Consolidated |
% As |
% |
% As |
% |
|||||
R$ million |
3Q09 |
3Q10 |
Reported |
Organic |
YTD 09 |
YTD 10 |
Reported |
Organic |
|
Total volumes |
36,345.1 |
39,281.2 |
8.1% |
8.1% |
107,689.7 |
117,103.8 |
8.7% |
8.5% |
|
Beer |
26,217.7 |
28,549.6 |
8.9% |
8.9% |
77,031.6 |
84,732.0 |
10.0% |
10.0% |
|
CSD and NANC |
10,127.4 |
10,731.7 |
6.0% |
6.0% |
30,658.2 |
32,371.9 |
5.6% |
4.7% |
|
Net sales |
5,411.6 |
5,978.2 |
10.5% |
12.6% |
16,415.4 |
17,778.0 |
8.3% |
13.6% |
|
Gross profit |
3,552.8 |
3,919.6 |
10.3% |
11.8% |
10,935.1 |
11,781.3 |
7.7% |
12.1% |
|
Gross margin |
65.7% |
65.6% |
-10 bps |
-50 bps |
66.6% |
66.3% |
-30 bps |
-80 bps |
|
EBITDA |
2,372.2 |
2,652.7 |
11.8% |
12.3% |
7,539.9 |
7,835.1 |
3.9% |
7.1% |
|
EBITDA margin |
43.8% |
44.4% |
50 bps |
-10 bps |
45.9% |
44.1% |
-190 bps |
-260 bps |
|
Normalized EBITDA |
2,373.8 |
2,655.6 |
11.9% |
12.3% |
7,339.8 |
7,885.0 |
7.4% |
10.8% |
|
Normalized EBITDA margin |
43.9% |
44.4% |
60 bps |
-10 bps |
44.7% |
44.4% |
-40 bps |
-110 bps |
|
Profit - Ambev holders |
1,230.9 |
1,815.2 |
47.5% |
4,195.2 |
4,975.6 |
18.6% |
|||
Normalized Profit - Ambev holders |
1,232.5 |
1,817.8 |
47.5% |
3,995.1 |
5,059.9 |
26.7% |
|||
No. of share outstanding (millions) |
616.4 |
620.6 |
616.4 |
620.6 |
|||||
EPS (R$/shares) |
2.00 |
2.92 |
46.5% |
6.81 |
8.02 |
17.8% |
|||
Normalized EPS |
2.00 |
2.93 |
46.5% |
6.48 |
8.15 |
25.8% |
|||
Note: Earnings per share calculation is based on outstanding shares (total existing shares excluding shares held in treasury). |
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CONTACT: Rafael Avila, Investor Relations, Ambev, 55-11-2122-1414
SOURCE Companhia de Bebidas das Americas - Ambev
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