Ambev: Strong Earnings and Dividend Returns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Source: Yahoo Finance
- Strong Financial Performance: Ambev generated $88.24 billion in revenue and $15.99 billion in net income for FY2025, reflecting a year-over-year increase of 10.74%, showcasing its robust profitability in the Latin American market despite Brazilian currency depreciation challenges.
- Dividend and Buyback Plans: The company returned approximately $20 billion to shareholders in FY2025 and approved a new R$2.5 billion buyback plan, expected to repurchase up to 208 million shares, further enhancing shareholder value.
- Market Share and Brand Growth: Ambev maintains a functional monopoly over the Latin American beverage market, with premium brand volumes increasing by 17% and non-alcohol beer volumes growing about 30% in Brazil, indicating strong market demand and execution capabilities.
- Future Outlook and Risks: Despite facing rising costs and currency fluctuations, Ambev offers a 4.79% dividend yield, attracting long-term investors, especially with the upcoming 2026 FIFA World Cup potentially boosting sales further.
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Analyst Views on ABEV
Wall Street analysts forecast ABEV stock price to fall
5 Analyst Rating
1 Buy
3 Hold
1 Sell
Hold
Current: 3.200
Low
1.95
Averages
2.77
High
4.00
Current: 3.200
Low
1.95
Averages
2.77
High
4.00
About ABEV
Ambev SA, formerly Inbev Participacoes Societarias SA, is a Brazil-based company engaged in the brewing sector. The Company produces, distributes and sells beer, carbonated soft drinks (CSDs) and other non-alcoholic and non-carbonated (NANC) beverages across the Americas. The Company's activities are divided into three segments: Latin America North, including sell of beer, CSD and NANC drinks in Brazil, as well as operations in the Dominican Republic, Saint Vincent, Antigua, Dominica, Cuba, Guatemala, El Salvador, Honduras, Nicaragua, Barbados and Panama; Latin America South, distributing products in Argentina, Bolivia, Paraguay, Uruguay, Chile; and Canada, represented by Labatt’s operations, which comprises sales in Canada and some exports to the U.S. market. The Company markets products under various brand names, such as Adriatica, Brahma, Leffe, Budweiser, Corona, PepsiCo and Lipton. It is a subsidiary of Interbrew International BV.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ambev: Strong Earnings and Dividend Returns
- Strong Financial Performance: Ambev generated $88.24 billion in revenue and $15.99 billion in net income for FY2025, reflecting a year-over-year increase of 10.74%, showcasing its robust profitability in the Latin American market despite Brazilian currency depreciation challenges.
- Dividend and Buyback Plans: The company returned approximately $20 billion to shareholders in FY2025 and approved a new R$2.5 billion buyback plan, expected to repurchase up to 208 million shares, further enhancing shareholder value.
- Market Share and Brand Growth: Ambev maintains a functional monopoly over the Latin American beverage market, with premium brand volumes increasing by 17% and non-alcohol beer volumes growing about 30% in Brazil, indicating strong market demand and execution capabilities.
- Future Outlook and Risks: Despite facing rising costs and currency fluctuations, Ambev offers a 4.79% dividend yield, attracting long-term investors, especially with the upcoming 2026 FIFA World Cup potentially boosting sales further.
See More
Ambev Shares Edge Up as Beer Demand and Product Range Expand
- Stock Price Increase: Ambev (ABEV) shares rose 0.30% on Friday to close at $3.29, extending the week's gains, reflecting positive market sentiment following its earnings report.
- Surge in Trading Volume: The trading volume reached 72.4 million shares, 193% above the three-month average of 24.7 million shares, indicating strong investor interest in the company's prospects.
- Earnings Beat Expectations: The quarterly results released earlier this week exceeded expectations, particularly with beer revenue growth from Central America and the Caribbean offsetting weaker figures from Brazil and South America, showcasing the company's adaptability.
- Optimistic Future Outlook: With the upcoming World Cup expected to drive further demand, Ambev is poised to build on its Q1 momentum, and Barclays raised its price target from $2.50 to $3.50 while maintaining a “Hold” rating.
See More
Ambev Surges 16% After Beating Earnings Expectations
- Strong Earnings Report: Ambev reported revenue of $4.52 billion, exceeding expectations by $67.5 million, with non-GAAP EPS of $0.05 beating estimates by $0.01, indicating robust performance in the market.
- Net Revenue Growth: Despite consolidated volumes being essentially flat at +0.1%, the company achieved an 8.1% increase in net revenue, primarily driven by strong demand in the premium and non-alcohol beer segments, reflecting successful brand activations during Brazil's Carnival.
- Significant Cash Flow Increase: Cash flow from operations surged 162.5% year-over-year, demonstrating the company's effectiveness in cost management and efficiency improvements, thereby enhancing its financial health.
- Optimistic Market Outlook: Although the global beer market faces challenges such as softening consumption and inflationary pressures, Ambev's pricing discipline and portfolio diversification are helping to mitigate these issues, with upcoming events like the FIFA World Cup expected to further drive demand and support future growth.
See More
Ambev Reports Q1 2026 Earnings with Mixed Results
- Earnings Per Share: Ambev reported a non-GAAP EPS of R$0.24 for Q1 2026, indicating stable profitability despite a slight decline compared to the previous year, reflecting resilience in earnings.
- Revenue Decline: The company's revenue for the first quarter was R$22.46 billion, down 0.1% year-over-year, highlighting the impact of intensified market competition and fluctuating consumer demand on sales.
- Cash Flow Surge: Operating cash flow increased by 162.5% compared to R$1.204 billion in Q1 2025, demonstrating improvements in cost control and operational efficiency that enhance financial stability.
- Flat Volume Performance: Consolidated volumes were relatively flat with a 0.1% increase, indicating that while sales are stable, Ambev's competitive position remains strong, with potential for growth through new products and market strategies.
See More
Ambev Scheduled to Announce Q1 Earnings on May 5th
- Earnings Announcement Schedule: Ambev (ABEV) is set to announce its Q1 2023 earnings results on May 5th before market open, with consensus EPS estimate at $0.04 and revenue estimate at $4.45 billion, reflecting an 80.2% year-over-year decline.
- Historical Performance Review: Over the past two years, ABEV has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, indicating a strong track record of financial performance and market confidence.
- Expectation Revisions: In the last three months, there have been no upward revisions to EPS estimates, with one downward revision, while revenue estimates also saw no upward revisions and two downward revisions, suggesting a cautious market outlook for Ambev's future performance.
- Market Reaction: Despite UBS warning that Ambev's valuation may be too high, the market remains optimistic about the company's recovery potential, particularly considering the positive impacts of the 2026 World Cup and interest rate cuts in Brazil.
See More
UBS Downgrades Ambev to Sell Amid Valuation Concerns
- Rating Downgrade: UBS has downgraded Ambev from Neutral to Sell due to valuation concerns, with analysts indicating that after a 32% rally over the past six months, the risk/reward profile is skewed to the downside, potentially undermining investor confidence.
- Earnings Growth Outlook: Analysts project flat EPS growth by 2026 with a ~5% CAGR over the next five years, indicating a risk of stagnation in earnings growth that could lead to a de-rating in valuation multiples.
- Macro Economic Risks: The analysts warn that Brazil's macroeconomic backdrop and global commodity prices may weigh on EBITDA growth, increasing the risk of disappointing performance in 2026-2027.
- Capital Return Expectations: Given the company's reluctance to leverage its balance sheet, capital returns may fall short of investor expectations, which could lead to a de-rating of valuation multiples in the coming quarters, adversely affecting stock performance.
See More
Ambev: Strong Earnings and Dividend Returns
- Strong Financial Performance: Ambev generated $88.24 billion in revenue and $15.99 billion in net income for FY2025, reflecting a year-over-year increase of 10.74%, showcasing its robust profitability in the Latin American market despite Brazilian currency depreciation challenges.
- Dividend and Buyback Plans: The company returned approximately $20 billion to shareholders in FY2025 and approved a new R$2.5 billion buyback plan, expected to repurchase up to 208 million shares, further enhancing shareholder value.
- Market Share and Brand Growth: Ambev maintains a functional monopoly over the Latin American beverage market, with premium brand volumes increasing by 17% and non-alcohol beer volumes growing about 30% in Brazil, indicating strong market demand and execution capabilities.
- Future Outlook and Risks: Despite facing rising costs and currency fluctuations, Ambev offers a 4.79% dividend yield, attracting long-term investors, especially with the upcoming 2026 FIFA World Cup potentially boosting sales further.
See More
Ambev Shares Edge Up as Beer Demand and Product Range Expand
- Stock Price Increase: Ambev (ABEV) shares rose 0.30% on Friday to close at $3.29, extending the week's gains, reflecting positive market sentiment following its earnings report.
- Surge in Trading Volume: The trading volume reached 72.4 million shares, 193% above the three-month average of 24.7 million shares, indicating strong investor interest in the company's prospects.
- Earnings Beat Expectations: The quarterly results released earlier this week exceeded expectations, particularly with beer revenue growth from Central America and the Caribbean offsetting weaker figures from Brazil and South America, showcasing the company's adaptability.
- Optimistic Future Outlook: With the upcoming World Cup expected to drive further demand, Ambev is poised to build on its Q1 momentum, and Barclays raised its price target from $2.50 to $3.50 while maintaining a “Hold” rating.
See More
Ambev Surges 16% After Beating Earnings Expectations
- Strong Earnings Report: Ambev reported revenue of $4.52 billion, exceeding expectations by $67.5 million, with non-GAAP EPS of $0.05 beating estimates by $0.01, indicating robust performance in the market.
- Net Revenue Growth: Despite consolidated volumes being essentially flat at +0.1%, the company achieved an 8.1% increase in net revenue, primarily driven by strong demand in the premium and non-alcohol beer segments, reflecting successful brand activations during Brazil's Carnival.
- Significant Cash Flow Increase: Cash flow from operations surged 162.5% year-over-year, demonstrating the company's effectiveness in cost management and efficiency improvements, thereby enhancing its financial health.
- Optimistic Market Outlook: Although the global beer market faces challenges such as softening consumption and inflationary pressures, Ambev's pricing discipline and portfolio diversification are helping to mitigate these issues, with upcoming events like the FIFA World Cup expected to further drive demand and support future growth.
See More
Ambev Reports Q1 2026 Earnings with Mixed Results
- Earnings Per Share: Ambev reported a non-GAAP EPS of R$0.24 for Q1 2026, indicating stable profitability despite a slight decline compared to the previous year, reflecting resilience in earnings.
- Revenue Decline: The company's revenue for the first quarter was R$22.46 billion, down 0.1% year-over-year, highlighting the impact of intensified market competition and fluctuating consumer demand on sales.
- Cash Flow Surge: Operating cash flow increased by 162.5% compared to R$1.204 billion in Q1 2025, demonstrating improvements in cost control and operational efficiency that enhance financial stability.
- Flat Volume Performance: Consolidated volumes were relatively flat with a 0.1% increase, indicating that while sales are stable, Ambev's competitive position remains strong, with potential for growth through new products and market strategies.
See More
Ambev Scheduled to Announce Q1 Earnings on May 5th
- Earnings Announcement Schedule: Ambev (ABEV) is set to announce its Q1 2023 earnings results on May 5th before market open, with consensus EPS estimate at $0.04 and revenue estimate at $4.45 billion, reflecting an 80.2% year-over-year decline.
- Historical Performance Review: Over the past two years, ABEV has beaten EPS estimates 88% of the time and revenue estimates 100% of the time, indicating a strong track record of financial performance and market confidence.
- Expectation Revisions: In the last three months, there have been no upward revisions to EPS estimates, with one downward revision, while revenue estimates also saw no upward revisions and two downward revisions, suggesting a cautious market outlook for Ambev's future performance.
- Market Reaction: Despite UBS warning that Ambev's valuation may be too high, the market remains optimistic about the company's recovery potential, particularly considering the positive impacts of the 2026 World Cup and interest rate cuts in Brazil.
See More
UBS Downgrades Ambev to Sell Amid Valuation Concerns
- Rating Downgrade: UBS has downgraded Ambev from Neutral to Sell due to valuation concerns, with analysts indicating that after a 32% rally over the past six months, the risk/reward profile is skewed to the downside, potentially undermining investor confidence.
- Earnings Growth Outlook: Analysts project flat EPS growth by 2026 with a ~5% CAGR over the next five years, indicating a risk of stagnation in earnings growth that could lead to a de-rating in valuation multiples.
- Macro Economic Risks: The analysts warn that Brazil's macroeconomic backdrop and global commodity prices may weigh on EBITDA growth, increasing the risk of disappointing performance in 2026-2027.
- Capital Return Expectations: Given the company's reluctance to leverage its balance sheet, capital returns may fall short of investor expectations, which could lead to a de-rating of valuation multiples in the coming quarters, adversely affecting stock performance.
See More
