By Brazil Stock Guide – Ambev S.A. (B3: ABEV3) delivered a solid third-quarter performance, protecting profitability despite slower consumption across its main markets. Adjusted EBITDA rose 2.9% on an organic basis, with margin expanding 50 basis points to 33.9%, while net income increased 7.4% to R$ 3.84 billion, supported by lower income taxes and tight cost control.
Total volumes fell 5.8%, dragged by Brazil, where sales of beer and non-alcoholic beverages declined around 8%. Still, net revenue advanced 1.2% organically, lifted by a 7.4% gain in revenue per hectoliter. The brewer’s strategy of pricing discipline, premiumization and operational efficiency once again cushioned the effects of weak industry demand — a formula that has kept margins rising even in a stagnant market.
Gross margin improved slightly to 51.5%, while operating cash flow totaled R$ 6.9 billion, down from R$ 8.1 billion a year earlier, reflecting higher income tax payments. To reassure investors, the board approved a R$ 2.5 billion share buyback, equivalent to 208 million shares, to be executed over the next 18 months.
In Brazil — Ambev’s largest market and main pressure point — the company still managed to expand EBITDA margin by 90 basis points despite a 7.9% volume drop. Premium brands such as Stella Artois, Original, and Corona gained market share, while the “balanced choices” portfolio, led by Michelob Ultra and Stella Pure Gold, grew more than 30%. The BEES digital marketplace doubled its gross merchandise volume in Brazil, with over 80% of clients buying through the platform.
“The disciplined execution of our strategy continued to strengthen our brands and deliver margin growth, even amid weaker industries,” said CEO Carlos Lisboa. According to the company, BEES and Zé Delivery — its digital ecosystems — have become key to maintaining engagement and improving pricing intelligence.
Zé Delivery, Ambev’s direct-to-consumer platform, increased its gross merchandise volume by 7%, its average order value by 9%, and its monthly active users by 11%, reaching 5.4 million. Returnable glass bottles already represent nearly half of the platform’s sales, showing progress in both cost control and sustainability.
Outside Brazil, results were mixed but resilient. Latin America South posted 9% organic revenue growth and a 4.6% increase in EBITDA, despite inflation and lower consumption in Argentina. Central America and the Caribbean advanced 8.5% in EBITDA, while Canada maintained solid margins, with adjusted EBITDA up 2% organically, outperforming its domestic industry.
Despite solid profitability, Ambev continues to depend heavily on Brazil, where consumption remains fragile. The broader beer market has cooled, hurt by atypical weather and lower disposable income among middle- and lower-income consumers. While Ambev’s premium brands are thriving, mainstream segments — once its backbone — continue to shrink.