Brazil: AmBev Q4 results up, but North America business down

AmBev, the Brazilian unit of Belgian beer giant InBev, reported on February 24 a 6.6 percent rise in consolidated core profit for the fourth quarter, in line with expectations, according to Reuters.

AmBev said in a statement that consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) totalled 1.9 billion reais ($877.2 million), in line with the average forecast from a Reuters poll of five analysts.

Net revenues were below expectations, however, rising 3.2 percent to 4.65 billion reais, compared with a forecast 4.72 billion reais.

EBITDA at AmBev's main Brazilian operations rose 13.2 percent rise to 1.3 billion reais and net revenues gained 11.3 percent to 3.1 billion reais.

At its North American operations, meanwhile, EBITDA fell 9.5 percent to 384.9 million reais and net revenues dropped 18 percent to 944.3 million reais.

AmBev foresaw slower net revenue growth and a narrower EBITDA margin in North America compared with Brazil in 2006. It saw net revenues in Canadian dollars growing 0.0-1.0 percent in North America this year and the EBITDA margin ranging between 36.0-37.0 percent.