SAO PAULO, July 31, 2012 /PRNewswire/ -- Companhia de
Bebidas das Americas – Ambev [BOVESPA: AMBV4, AMBV3; NYSE: ABV,
ABVc] announces today its results for the 2012 second quarter (Q2
2012). The following operating and financial information, unless
otherwise indicated, is presented in nominal Reais and
prepared according to International Financial and Reporting
Standards (IFRS), and should be read together with our quarterly
financial information for the three and six month period ended
June 30, 2012 filed with the CVM and
submitted to the SEC.
OPERATING AND FINANCIAL HIGHLIGHTS
Top line performance: Consolidated volumes grew 2.4% in
Q2 2012 driven by a 3.9% increase in Brazil. A tougher
industry in most of the Southern Cone and a flat industry in
Canada affected volume performance
in LAS and Labatt, respectively. Meanwhile, HILA-ex volumes
step changed thanks to the closing of the strategic alliance in the
Caribbean, exceeding 2 million
hectoliters in the period (versus roughly 1.5 million in Q2
2011). Net sales increased 10.4% and net revenue/hl grew
7.7%, above average inflation for our country footprint, mainly
thanks to our performance in Brazil (+7.4%).
Cost of Goods Sold (COGS): COGS/hl grew below inflation
at 3.4% in Q2 2012. Gains in currency hedges once again
helped offset input cost pressure from raw materials, packaging and
labor in some of our operations.
Selling, General & Administrative (SG&A)
expenses: SG&A (excluding depreciation and amortization)
expenses rose by 18.7% in the quarter. In addition to general
inflation, our results were impacted by higher administrative
expenses (mainly bonus accruals) in Brazil and greater distribution expenses in
Brazil and LAS. In terms of
commercial spend, LAS invested more to support innovation launches,
Canada likewise, while in
Brazil expenses grew less due to
the phasing which took place in Q1 2012, as anticipated.
EBITDA, Gross margin and EBITDA margin: Normalized EBITDA
increased 9.3% organically in the second quarter, reaching
R$ 2,975.7 million. Gross
margin expanded 140 bps due to margin expansion in all our business
units except HILA-ex, which posted a positive EBITDA of
R$ 37.2 million. EBITDA margin
reached 43.6%, with a margin contraction of 40 bps.
Operating Cash generation and Profit: Cash generated from
our operations was R$ 2,749.0 million
in Q2 2012, which represents an increase of 6.2%. Normalized
Profit reached R$ 1,959.2 million
(+6.6%) in the quarter against a very tough comparison due to a
lower income tax expense in Q2 2011, and normalized Earnings per
share (EPS) increased 6.1%.
CAPEX: We invested R$ 628.2
million during the second quarter, the majority of which
continued to be dedicated to the improvement of our supply and
warehousing footprint in Brazil.
Pay-out and Financial discipline: In Q2 2012 we paid a
dividend and IOC of R$ 2.5 billion,
and we also made a cash payment of around R$
2.5 billion upon closing of the strategic alliance in the
Caribbean in mid-May. In
addition, on May 30 we declared a
dividend and IOC payment of approximately R$
1.2 billion paid as from July
27.
Financial Highlights – Ambev
Consolidated
|
|
%
As
|
%
|
|
|
%
As
|
%
|
R$
million
|
2Q11
|
2Q12
|
Reported
|
Organic
|
YTD
11
|
YTD
12
|
Reported
|
Organic
|
Total
volumes
|
36,181.7
|
37,378.5
|
3.3%
|
2.4%
|
76,978.3
|
79,608.9
|
3.4%
|
3.4%
|
Beer
|
26,093.1
|
26,860.2
|
2.9%
|
1.7%
|
55,569.1
|
57,116.0
|
2.8%
|
2.7%
|
CSD and
NANC
|
10,088.6
|
10,518.3
|
4.3%
|
4.0%
|
21,409.2
|
22,492.9
|
5.1%
|
4.9%
|
|
|
|
|
|
|
|
|
|
Net
sales
|
5,811.6
|
6,825.4
|
17.4%
|
10.4%
|
12,373.7
|
14,061.1
|
13.6%
|
10.1%
|
Gross
profit
|
3,793.0
|
4,525.0
|
19.3%
|
12.7%
|
8,248.1
|
9,448.0
|
14.5%
|
11.1%
|
Gross
margin
|
65.3%
|
66.3%
|
100
bps
|
140
bps
|
66.7%
|
67.2%
|
50
bps
|
60
bps
|
EBITDA
|
2,578.9
|
2,948.9
|
14.3%
|
8.7%
|
5,676.8
|
6,339.1
|
11.7%
|
8.8%
|
EBITDA
margin
|
44.4%
|
43.2%
|
-120
bps
|
-70
bps
|
45.9%
|
45.1%
|
-80
bps
|
-50
bps
|
Normalized EBITDA
|
2,583.6
|
2,975.7
|
15.2%
|
9.3%
|
5,682.1
|
6,365.9
|
12.0%
|
9.0%
|
Normalized
EBITDA margin
|
44.5%
|
43.6%
|
-90
bps
|
-40
bps
|
45.9%
|
45.3%
|
-60
bps
|
-40
bps
|
Profit
- Ambev holders
|
1,832.6
|
1,932.4
|
5.4%
|
|
3,921.2
|
4,278.8
|
9.1%
|
|
Normalized Profit - Ambev holders
|
1,837.3
|
1,959.2
|
6.6%
|
|
3,926.5
|
4,305.6
|
9.7%
|
|
No. of
share outstanding (millions)
|
3,104.2
|
3,118.4
|
|
|
3,104.2
|
3,118.4
|
|
|
EPS
(R$/shares)
|
0.59
|
0.62
|
5.0%
|
|
1.26
|
1.37
|
8.6%
|
|
Normalized EPS
|
0.59
|
0.63
|
6.1%
|
|
1.26
|
1.38
|
9.2%
|
|
|
|
|
|
|
|
|
|
|
|
Note: Earnings per share calculation is based on outstanding
shares (total existing shares excluding shares held in
treasury).
This press release segregates the
impact of organic changes from those arising from changes in scope
or currency translation. Scope changes represent the impact of
acquisitions and divestitures, the start up or termination of
activities or the transfer of activities between segments,
curtailment gains and losses and year over year changes in
accounting estimates and other assumptions that management does not
consider as part of the underlying performance of the business.
Unless stated, percentage changes in this press release
are both organic and normalized in nature. Whenever used in this
document, the term "normalized" refers to performance measures
(EBITDA, EBIT, Profit, EPS) before special items. Special items are
either income or expenses which do not occur regularly as part of
the normal activities of the Company. They are presented separately
because they are important for the understanding of the underlying
sustainable performance of the Company due to their size or nature.
Normalized measures are additional measures used by management and
should not replace the measures determined in accordance with IFRS
as indicators of the Company's performance. Comparisons, unless
otherwise stated, refer to the second quarter of 2011 (Q2 2011), as
the case may be. Values in this release may not add up due to
rounding.
SOURCE Ambev