Ambev S.A. - ADR

Strong Performance in 2025: Ambev reported a consolidated normalized EBITDA margin expansion of 50 basis points, reaching 33.4%, driven by a net revenue per hectoliter growth of 7.5% and successful resource allocation. The company returned approximately BRL 20 billion to shareholders, including BRL 13.2 billion in dividends and a BRL 2.5 billion share buyback program, the highest in its history.

Demand for Beer Remains Robust: Despite challenging weather conditions impacting the beer industry in Brazil, especially in the first half of 2025, Ambev's performance improved in the second half of the year. The company capitalized on favorable conditions in December to achieve low single-digit market share gains, indicating that consumers' love for beer remains strong.

Challenges with Core Brands: While premium brands showed high growth rates, the core segment struggled due to external factors such as unseasonable weather affecting out-of-home occasions, which primarily impact core beer sales. The management believes there is significant potential to revitalize core brands and maintain accessibility through targeted innovations like Skol Zero Zero.