BRAZIL: AmBev delivers strong second quarter

Companhia de Bebidas das Americas (AmBev) has reported a strong second quarter with consolidated EBITDA reaching BRL1.848bn (US$958m), a rise of 16.5% on the back of another solid performance by it Brazilian division.

Net revenue reached BRL4.5bn, up 12.1%, the company said yesterday (13 August).

The InBev-owned Latin American brewer said that its subsidiary Qunisa - as well as its Canadian operations - performed well, with EBITDA up 23.5% and 12.9% respectively.

In Brazil, beer operations saw EBITDA growth of 11.0%, with a 4.7% increase in revenues per hectolitre and a 4.6% increase in volume.

"We posted a very strong second quarter on top of difficult volume comparisons, given the World Cup last year. We continue to recover market share while maintaining profitability by sensibly balancing increases in volume and net revenue per hectolitre. Our SG&A was in line with our expectations," said Luiz Fernando Edmond, CEO for Latin America.

Quinsa, meanwhile, increased volumes by 6.7% in the period. Soft drinks performance was strong, with volumes growing 13.4%.

"We delivered another solid result although looking forward the environment is quite challenging with labour and energy cost pressures", said João Castro Neves, Quinsa's CEO.

In Canada, the Lakeport acquisition boosted volumes and EBITDA. The operation's EBITDA margin grew by 310 bps to 41.3% in Canadian dollars.

Miguel Patricio, CEO for North America, added: "Canada is a very competitive market. We are working hard to maintain pricing, with a focus on the long term, although in some provinces we are facing heavy discounting. Lakeport, our recent acquisition, is very healthy and delivering good growth in the Ontario province."