AmBev beats by BRL0.02; revs slightly below consensus; reaffirms outlook (6.48)
- Reports Q3 EPS of BRL0.20 vs BRL0.18 Capital IQ consensus; revs increased 8.4% YoY to BRL11.36 bln vs BRL11.47 bln consensus
- In Brazil, volumes decline of 4.0% was more than offset by a healthy NR/hl growth of 14.2%. In LAS, volumes were up 4.5% and NR/hl rose by 16.1%. In CAC, NR/hl grew by 6.1% and, while organic volumes were flattish, reported volumes increased by 23.8%, as a result of the swap of assets carried out with ABI and our operations in Panama. And, in Canada, volumes were down 2.9%, affected by a weak industry, with NR/hl declining by 0.7%.
- Outlook
- Co states Brazil, co's largest market, is back on track. Going forward, co expects to continue benefiting from a healthy top line and reduced costs in the country, posting EBITDA growth and margin recovery.
- Regarding our CSD&NANC business, in spite of the temporary pressures during this quarter, co will evolve commercial strategy, pushing ourselves further to improve performance and resume growth.
- In this context, co reiterates guidance that it expects cash COGS in Brazil to be flattish to low single digit up in the second half of 2017