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Ambev Reports 2018 First Quarter Results Under IFRS


SÃO PAULO, Brazil, May 09, 2018 (GLOBE NEWSWIRE) -- Ambev S.A. (B3:ABEV3) (NYSE:ABEV) announces today its results for the 2018 first quarter. The following operating and financial information, unless otherwise indicated, is presented in nominal Reais and prepared according to International Financial Reporting Standards (IFRS), and should be read together with our financial information for the three-month period ended March 31, 2018 filed with the CVM and submitted to the SEC.


Net revenue: Top line was up 5.9% in 1Q18, as strong performance in Latin America South (LAS) (+24.6%) and Central America and the Caribbean (CAC) (+8.7%) and a flattish performance in Canada (+0.5%) were partially impacted by Brazil (-1.8%). In Brazil, volume decline of 11.0% was almost fully offset by a healthy net revenue per hectoliter (NR/hl) growth of 10.3%. In LAS, volume was up by a solid 5.7% and NR/hl rose by 17.8%. In CAC, volume and NR/hl grew by 4.3% and 4.2%, respectively. And, in Canada, volume marginal decline of 0.4% was offset by NR/hl growth of 1.0%.

Cost of goods sold (COGS): COGS and cash COGS (excluding depreciation and amortization) were flattish in the quarter (+0.2% and -0.3%, respectively). On a per hectoliter basis, COGS (COGS/hl) was up 6.3% while cash COGS grew by 5.8%, mainly due to inflationary pressures in Argentina and higher commodities prices, partially offset by favorable FX in LAS and Brazil. 

Selling, general & administrative (SG&A) expenses: In 1Q18 SG&A and cash SG&A (excluding depreciation and amortization) increased by 6.8% and 6.4%, respectively, in line with our weighted average inflation (approximately 6.7%).

EBITDA, gross margin and EBITDA margin: Normalized EBITDA reached R$ 4,638.7 million (+10.1%) in 1Q18, with gross margin of 61.7% (+210bps) and EBITDA margin of 39.9% (+160bps).

Normalized net profit and EPS: Normalized Net Profit was R$ 2,610.9 million in 1Q18, 12.7% higher than in 1Q17, as the EBITDA organic growth and the reduction of net financial expenses were partially impacted by a higher tax rate. Normalized EPS in the quarter was R$ 0.16 (+13.6%).

Cash generation and CAPEX: Cash flow from operating activities before changes in working capital and provisions was R$ 4,651.7 million (+1.6%) while CAPEX reached R$ 472.7 million (-15.5%).

Payout and financial discipline: In 1Q18, we have paid R$ 1.1 billion in dividends. As of March 31, 2018, our net cash position was R$ 3,497.9 million.

Financial highlights - Ambev consolidated     % As %
R$ million 1Q17 1Q18 Reported Organic
Total volume 41,305.1   38,915.5   -5.8% -5.8%
Net revenue 11,241.8   11,640.2   3.5% 5.9%
Gross profit 6,718.7   7,179.5   6.9% 9.7%
% Gross margin 59.8 % 61.7 % 190 bps 210 bps
Normalized EBITDA 4,356.2   4,638.7   6.5% 10.1%
% Normalized EBITDA margin 38.7 % 39.9 % 120 bps 160 bps
Profit 2,289.8   2,597.6   13.4%  
Normalized profit 2,316.0   2,610.9   12.7%  
EPS (R$/shares) 0.14   0.16   14.3%  
Normalized EPS (R$/shares) 0.14   0.16   13.6%  

Note: Earnings per share calculation is based on outstanding shares (total existing shares excluding shares held in treasury).

Investor Relations - Ambev S.A. / 
+55 11 2122 1414 

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