Brazilian beverage company Companhia de Bebidas das Americas - AmBev (ABV) reported Thursday a 5.8% rise in profit for the third quarter, driven by good volume growth mainly in Brazil and price increases. Net sales for the quarter increased 12.7%.
Third-quarter net income attributable to AmBev holders, on International Financial Reporting Standards, or IFRS, basis, increased to R$1.231 billion from R$1.163 billion in the year-ago period. On a per share basis, earnings rose 5.4% to R$2.00 from prior year's R$1.89.
Normalized net income attributable to AmBev holders rose 5.6% to R$1.233 billion from R$1.167 billion in the prior year period, and earnings per share grew 5.2% to R$2.00 from last year's R$1.90.
In the quarter, net sales were R$5.41 billion, up 12.7% from R$4.80 billion in the comparable period. On an organic basis, net sales rose 9.8% driven by volume growth and price increases across all regions.
Total volumes in the quarter grew 5.5% to 36.35 million hectoliters from 34.45 million hectoliters a year ago, and the volume growth was 4.7% organically. Beer volume rose 7.5% to 26.22 million hectoliters, and CSD and NANC volume edged up 0.7% to 10.13 million hectoliters. Organically, beer volume rose 7.5%, while CSD and NANC volume dropped 1.1%. The company noted that total organic volume growth was driven by a 9.5% volume growth in Brazil, partly offset by a 5.6% and 4.5% decline in South Latin America and Hila-Ex volumes, respectively.
Quarterly gross profit increased 14.5% to R$3.55 billion from R$3.10 billion a year ago, and gross margin went up to 65.7% from prior year's 64.6%.
Cost of Goods Sold, or COGS, per hectoliter increased 1.4% as inflation was partly offset by expected gains on the company's hedges, lower commodity prices for PET and corn and productivity initiatives. Operating cash flow generation was R$1.83 billion in the quarter, up 3.3% from last year.
For the nine months of fiscal 2009, net income attributable to AmBev holders climbed 22.7% to R$4.20 billion from R$3.42 billion in 2008. Earnings per share grew 22.3% to R$6.81 from R$5.57 a year ago. Normalized net income - AmBev holders went up 16.5% to R$3.995 billion from R$3.43 billion last year, and earnings per share rose 16% to R$6.48 from R$5.59 in the previous year.
AmBev's nine-month net sales climbed 14.4% to R$16.42 billion from R$14.35 billion a year ago, and the sales growth was 9.8% organically. Total volumes rose 4.5% to 107.69 million hectoliters from last year's 103.01 million hectoliters, while the growth was 4.7% organically.
ABV closed Wednesday's regular trading session at US$101.63, up US$0.87 or 0.86%, on a volume of 868,777 shares. In the past 52 weeks, shares have been trading in a broad range of US$36.19 to US$103.59.
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