Brazil: Ambev�s second-quarter profit rises thanks to highest ever sales volumes for the period and tax credit

Ambev SA's profit rose in the second quarter from a year earlier as sales volumes were the highest ever for the period and after receiving a tax credit of more than a billion reais, the Morning Star reported on July 29.

The Sao Paulo-based company's net income increased to 2.9 billion reais, equivalent to $567 million, from 1.3 billion reais a year earlier, Ambev said on July 29. Net revenue reached 15.7 billion reais, an increase of 35.3%, and normalized earnings before interest, taxes, depreciation and amortization rose 58% to 5.3 billion reais. Sales volumes increased 19% to 39.8 million hectolitres.

Ambev is controlled by Anheuser-Busch InBev SA, the world's biggest beer producer, and brews and markets brands including Budweiser, Brahma and Corona. Brazil is Ambev's biggest market, but the company also operates in other countries in the Americas including Canada, Argentina and Chile.

Ambev said it booked a tax credit of 1.6 billion reais in the second quarter related to a ruling by Brazil's supreme court that forbade the federal government and state governments from charging the company certain taxes.