Ambev S.A. (NYSE:ABEV) shares traded lower Thursday after the brewer reported second-quarter 2026 results, as organic growth was overshadowed by a revenue miss.
• Ambev shares are under pressure. What’s pulling ABEV shares down?
Adjusted EPS of four cents per ADS was in line with estimates, while revenue of $3.973 billion missed the $4.330 billion estimate.
"The consistent execution of our growth strategy translated into another quarter of beer volume growth, with solid top and bottom-line performance," CEO Carlos Lisboa said.
Management said disciplined revenue management and resource allocation supported growth despite stepped-up FIFA World Cup brand investments.
It attributed estimated market-share gains to a more complete portfolio and said BEES improved demand visibility and execution.
Earnings and Margins
Net revenue totaled 20.15 billion Brazilian reais, up 0.3% as reported and 6.1% organically. GAAP EPS increased 25.4% to 0.22 Brazilian reais, while normalized profit rose 23.3% to 3.49 billion Brazilian reais.
Volumes increased 1.4% organically to 39.73 million hectoliters, with beer volumes up by a mid-single-digit percentage. Revenue per hectoliter rose 4.6%.
Gross profit increased 10.5% organically to 10.45 billion Brazilian reais.
Gross margin expanded 200 basis points to 51.9%, while normalized EBITDA rose 8.9% to 6.38 billion Brazilian reais and margin expanded 80 basis points to 31.6%.
Regional and Portfolio Performance
Brazil Beer revenue rose 8.9% as volumes increased 5%, driving 12.8% normalized EBITDA growth.
Brazil nonalcoholic beverage revenue gained 1.4% despite a 4.4% volume decline.
Organic revenue increased 7.1% in Central America and the Caribbean, 4.4% in Latin America South, and 2.1% in Canada.
Premium volumes grew by the high teens, balanced choices by the mid-60% range and no-alcohol beer by the low 20% range.
BEES Marketplace GMV rose 58%, while Zé Delivery GMV increased 16%.
Cash Flow and Outlook
Operating cash flow rose 54.5% to 4.71 billion Brazilian reais.
Ambev returned about 5.9 billion Brazilian reais to shareholders year to date and approved a new 1.1 billion-Brazilian-real interest-on-capital distribution.
The company maintained its Brazil Beer cash-cost-per-hectoliter growth forecast of 4.5% to 7.5%, while noting foreign-exchange and commodity pressures, adverse weather, Bolivia disruptions and a dynamic geopolitical environment.
ABEV Price Action: Ambev shares were down 1.62% at $3.05 at the time of publication on Thursday, according to Benzinga Pro data.
Photo: Shutterstock