ABEV

Image source: The Motley Fool. Thursday, July 30, 2026 at 4:00 a.m. ET CEO - Carlos Eduardo Lisboa CFO and Investor Relations Officer - Guilherme Fleury de Figueiredo Parolari Operator: Good afternoon, and thank you for waiting. We would like to welcome everyone to Ambev's 2026 Second Quarter Conference Call. Today with us, we have Mr. Carlos Lisboa, Ambev's CEO; and Mr. Guilherme Fleury, CFO and Investor Relations Officer. As a reminder, this conference presentation is available for download on our website, ri.ambev.com.br as well as through the webcast link. We would like to inform you that this event is being recorded. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to the future events and therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Ambev and could cause results to differ materially from those expressed in such forward-looking statements. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during today's call are both organic and normalized in nature and unless otherwise stated, percentage changes refer to comparison with 2025 second quarter results. Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of Ambev's normal activities. As normalized figures are non-GAAP measures, the company disclosed the consolidated profit, EPS, operating profit and EBITDA on a fully reported basis in the earnings release. Now I will turn the conference over to Mr. Carlos Lisboa. Mr. Lisboa, you may begin your conference. Carlos Eduardo Lisboa: Good afternoon, everyone, and thank you for joining our second quarter earnings call. Across our footprint, football is part of our culture, one of the strongest passion points that bring people together, and beer has a unique role in creating such special moments. I want to congratulate all the national teams from our markets that represented their countries in the FIFA World Cup. I also want to recognize our teams for their outstanding execution across Ambev's footprint. Moments like these are also where our company stands out. The World Cup is one of the toughest execution tests in our industry. The challenge goes beyond activating a campaign. It is about turning a tournament into a semester-long platform, activating a portfolio rather than a single brand and connecting consumers and customers across countries, channels and millions of points of sale while building engagement that lasts beyond the final whistle. Across our markets, our brands were among those most associated with the event. We did not just take part of the World Cup. We helped shape the category through it. While the World Cup has come to an end, our own game has only reached half time. Ambev's performance continued to strengthen in the second quarter with its quality and shape improving versus Q1. Volumes provided a much stronger contribution, growing 1.4% year-over-year with beer up mid-single digits. Disciplined revenue management and resource allocation supported net revenue growth of 6% and normalized EBITDA growth of 9%, even as we stepped up investment behind our brands. As a highlight, our normalized EPS grew 24%. Looking at the movie rather than the picture, the first half provides a broader view. Total volumes grew 0.7% with Beer volumes growing well ahead of the total. Net revenue grew 7%. Normalized EBITDA increased 10%, implying 1.3x operational leverage and normalized EPS also grew 10% Operating cash flow reached BRL 8 billion, one of Ambev's highest first half levels. As we enter the second half, we are building a business with stronger foundations and designed to deliver compound profitable growth over time. Behind this progress is our 3-pillar growth strategy, starting with pillar one: lead and grow the category. This quarter, we advanced on both dimensions. On lead, we strengthened both brand equity and market share across our 5 largest markets. On grow, share gains and improving industry conditions support beer volume growth in markets that represent over 80% of our volumes. Mainstream continued to improve sequentially with volumes only slightly below last year. We continue to lead the high-growth segments with a broad and complementary portfolio. Premium remained a key growth engine, growing nearly 20%. Balanced Choices grew more than 60%. No Alcohol beer grew around 20%, and Flavored Beer and RTDs maintain momentum. Michelob Ultra shows how we scale a relevant consumer proposition across markets. It more than tripled in Brazil and Argentina during the quarter, grew over 50% across our footprint, and is now present in nearly all our markets, connecting with consumers, seeking a more active and balanced lifestyle. This takes us to pillar two: digitize and monetize our ecosystem. Our digital ecosystem has become a key lever for category development. In an increasingly dynamic environment, a broader portfolio creates greater complexity. These enable us to manage that complexity with greater precision, strengthening the core while accelerating the new engines of category growth. It is not just a technical backbone, but an execution powerhouse that creates efficiencies and improves how we operate every day. We read demand faster and more accurately help customers increase sell out through better recommendations and allocate resources to the highest return opportunities. This strengthens our performance while helping our partners grow, as reflected in the continued improvement in our NPS. Ambev, Bees Marketplace GMV grew around 60% in both the second quarter and in the first half. In the first half, gross margin expanded 6.7 percentage points year-over-year, reaching 22%. In Brazil, Marketplace GMV doubled in the first half, with 3P as the main driver. And on the pillar three: optimize our business. This pillar creates the flexibility to deliver on both of our capital allocation priorities: investing behind opportunities that drive long-term growth while consistently returning excess cash to shareholders. In the quarter, we stepped up investments behind our brands, while expanding normalized EBITDA margin by 80 basis points. That discipline, together with solid cash generation, allowed us to advance our share buyback program and announce an additional [ IOC ] distribution this quarter. Together, the 3 pillars reinforce one another, creating a flywheel that strengthens the company and supports sustainable profitable growth. Before moving to our key markets, let me highlight the breadth of our performance. In both the second quarter and the first half, beer volumes grew or remained broadly stable in 7 of our 10 largest markets, while net revenue and EBITDA grew across all business units, showcasing that our progress was not dependent on any single market or growth lever. Starting with Brazil beer. Continued commercial momentum supported another solid quarter. The beer industry continued to improve sequentially. According to Nielsen, sellout improved from a high single-digit decline in the second half of 2025 and mid-single-digit decline in the first quarter to a slight decline in Q2. Nielsen's measurement calendar ended around June 20, capturing only the early part of the World Cup period. Extending the analysis through month end and across our broader coverage, we estimate that the industry was slightly positive in the quarter. The World Cup created incremental demand across channels and regions. Nevertheless, it was offset by adverse weather conditions. Average temperatures remained below last year and well below 2024. On a 2-year comparison, our industry modeling indicates that adverse weather accounts for the full industry volume gap versus 2024. Even so, our consumer tracking shows sequential improvement in category equity and participation, reinforcing our confidence in the category's resilience in a dynamic consumer and macroeconomic environment. Through that, our business continued to outperform. Market share expanded year-over-year for the fourth consecutive quarter, consolidating the commercial momentum of our business in Brazil. We estimate that our share increased across mainstream, premium, balanced choices and beyond beer. Brand equity continued to grow, while price relativity remained broadly stable versus last year. This quarter marked 1 full year since we regained leadership in premium with our share of the segment reaching an all-time high. Premium grew in the mid-20s and reached approximately 25% of our beer volumes. This performance reflects our new premium architecture, with each brand anchored to distinct consumer need states, Original for authenticity and simplicity; Stella Artois for quiet luxury; Corona, for the outdoors and natural living; and Michelob Ultra, for an active and balanced lifestyle. The recent announcement of Spaten Pro takes this [ architecture ] into a new space, combining premium credentials with 0 alcohol and 10 grams of protein to expand Balanced Choices into new occasions. Balanced Choices volumes doubled versus last year, while No Alcohol grew in the 30s. Mainstream was broadly stable, delivering a significant improvement from a mid-single-digit decline in the first quarter. Together, improving industry conditions and market share progression supported 5% beer volume growth. Serving this portfolio across more than 1 million points of sale requires precision at scale. Our digital ecosystem provides that capability. Through this, we improved assortment, placed the right SKUs in each outlet and activated our World Cup platform nationwide. Beer distribution grew more than 6%, with returnable bottles up over 4% and premium over 20%. On the consumer side, Ze delivered GMV grew 16% versus last year, while orders more than double on the Brazilian national team match days. Ze also gives us a real-time view of where the category is heading. Premium already represents 35% of beer volumes on the platform, while Balanced Choices reached approximately 7%, nearly twice the weight in Brazil beer. This combination translated into net revenue growth of 9%, EBITDA growth of 13%, and 110 basis points of margin expansion, while we continue to invest behind our brands. In Brazil NAB, sequential improvement, although the job is not done yet. The recovery has taken longer than expected, and volumes declined 4.4% in the quarter. Around 30% of the decline reflected our decision to phase out volumes from a lower return channel. Adjusting for this decision, volume performance improved versus the first quarter. By the end of the first half, we had also cycled the toughest comparison base of the year. Market share progressed sequentially, approaching historical levels by the quarter-end as price productivity pressures ease. Throughout the period, we continued investing behind our brands to regain momentum while maintaining disciplined revenue management and protecting profitability. As a result, Brazil NAB delivered double-digit EBITDA growth with more than 300 basis points of margin expansion in both the quarter and the first half. And last, we had 2 distinct realities within this quarter. In Bolivia, temporary social unrest and road blockage disrupted mobility and logistics for much of the period, leading to a double-digit volume decline. The situation has since normalized and our operations are running normally. Argentina, by contrast, was a highlight. Our beer volumes grew low single digit, lapping growth in the same quarter last year, supported mainly by continued market share momentum and improving industry and the national team's World Cup [ performance ]. Premium grew high single digits, led by Stella Artois and Corona. Balanced Choices reached a mid-single-digit mix of our beer volumes, supported by the launch of Michelob Ultra and Stella Pure Gold. Mainstream was broadly stable with Quilmes strengthening brand equity and mainstream share. This is the same category development playbook we are executing in Brazil, scaling Premium and developing Balanced Choices while continuing to strengthen Mainstream. In the Dominican Republic, our business delivered mid-single digits volume growth in the quarter despite the adverse weather conditions in April. The consumption environment remained constructive, supported by a favorable macro backdrop and healthy price relativity versus other alcoholic beverage. Beer continued to gain share within alcoholic beverage, and our volumes grew high single digits in the first half. Premium grew more than 40%, led by Corona and Michelob Ultra, while Mainstream grew low single digits, supported by Presidente and The One in the first half. Presidente's brand equity remains strong, reinforce its leadership and cultural connection with Dominican consumers. Finally, in Canada, we continue to outperform in a dynamic environment. The beer industry declined low single digit as unfavorable weather and softer consumer demand weighed on performance. Trends, nevertheless, improved from the first quarter, supported by FIFA World Cup occasions. We gained market share in both Beer and Beyond Beer. Within Beer, Michelob Ultra continued to lead the development of Balanced Choices, while Busch strengthened our Mainstream performance. In Beyond Beer, [ Mics ] and [indiscernible] Water remain important growth drivers. As a result, Canada delivered low single-digit top line growth alongside low to mid-single-digit EBITDA growth and margin expansion in both the quarter and the first half. With that, I will now turn it over to Fleury for the financial highlights. Guilherme Fleury de Figueiredo Parolari: Thank you, Lisboa. Hello, and good afternoon, everyone. As we close the first half of the year, our financial performance reflects the mindset that has guided us over the past quarters: to create value through disciplined resource allocation, focusing on what we can control. In the first half of 2026, we delivered 9.6% normalized EBITDA growth with margin expansion across all of our business units, as well as 10.1% growth in normalized net income. Stated EBITDA grew 2.5% and stated net income increased by 11.6% in the period. From a cash flow perspective, our first half performance allow us to continue executing our capital allocation priorities of investing in the organic growth of our business while also returning excess cash to shareholders over time. The first half performance was supported by another quarter of consistent execution of our growth strategy. Now let me walk you through the second quarter highlights. Starting with operating performance. Normalized EBITDA grew 8.9% in the period, reaching BRL 6.4 billion, with 80 basis points of margin expansion. This reflects disciplined decisions across cost, expenses and revenue management, allowing us to expand both gross margin and EBITDA margin while stepping up investments behind our brands during the FIFA World Cup. Consolidated cash COGS per hectoliter, excluding Marketplace, increased by 2.2% in the period, supported by continued productivity and operational efficiencies across our footprint. Here, it is worth noting that in the first half of the year, Brazil Beer cash COGS per hectoliter, excluding Marketplace products, increased by 9.7%, while our full year guidance remains unchanged at between 4.5% and 7.5%. Consolidated cash SG&A grew by 10.7% in the quarter, mainly driven by higher sales and marketing expenses, reflecting a portion of brand activations during the FIFA World Cup. As we mentioned during our first quarter earnings call, these expenses tend to follow the timing of our [ Meg ] events calendar and Q2 reflected that. Distribution expenses also increased in the period, mostly due to volume performance as well as one-off expenses in [ Lass ] as part of restructuring initiatives in Argentina. Taken together, these results illustrate how we think about resource allocation. Our cost PMO initiative that started last year is based on a continuous improvement mindset together with choices to focus on growing return on invested capital, ultimately, freeing up resources to reinvest in our strategic priorities and pursue our ambition of delivering consolidated margin expansion over time. On administrative expenses, it is important to remember that the effect of lower volumes in 2025 impacted our bonus accruals in the second half of last year, creating a potentially tougher comparison base going forward. Now moving to below EBITDA lines. Net financial expenses totaled BRL 486 million in the quarter, a 50% reduction versus the same period of last year, mainly explained by 2 positive noncash factors in the nonderivative instruments line. First, in Bolivia, following an approximately 40% devaluation of the local currency in late June, we had a positive effect coming from the conversion of hard currency held in the company. These reserves were due to secure liquidity to meet the expected foreign currency obligations, including payments to certain suppliers and dividend remittances. Second, a positive effect that came from other markets where local currencies were more stable during the quarter, resulting in lower conversion losses on monetary balances compared to last year. On the Bolivar devaluation, it is worth noting that our consolidated income statement reflects average monthly FX rates as required under the applicable accounting standards. As a result, going forward, the local currency devaluation is expected to gradually create a negative translation impact on our financial and operational results. Turning to income taxes. Our consolidated effective tax rate in the quarter was 19.9%, compared to 18.4% in the second quarter of 2025, reflecting country mix effects over higher earnings before taxes, partially offset by regular income tax attributes. In the first 6 months of the year, our ETR was 20.6%, broadly in line with the 20.3% recorded in the first half of 2025. As a result, both normalized and stated net income reached about BRL 3.5 billion, increasing 23.3% and 24.5%, respectively, versus last year. Normalized and stated earnings per share reached BRL 0.22, representing, respectively, a 24.2% and 25.4% increase versus last year. Now turning to cash flow generation. Let's go beyond the quarter and look at our performance in the first half of the year. Cash flow from operating activities totaled BRL 7.9 billion, an increase of BRL 3.6 billion, representing over 80% improvement versus the same period of last year. This was mainly driven by higher EBITDA and improved working capital dynamics, with payables reflecting our volume performance. Cash flow used in investing activities totaled BRL 3.3 billion, BRL 1.5 billion higher than in the first half of 2025, primarily reflecting the deconsolidation of assets previously reported as restricted cash in CAC as disclosed in our first quarter's financial statement, partially offset by lower CapEx investments. It is important to note that we continue to invest with discipline in our operations, balancing brewery upgrades, capacity expansion, innovation capabilities, the expansion of our commercial assets base and our technology infrastructure, all aimed at supporting long-term value creation. Cash flow used in financing activities totaled BRL 5.7 billion, BRL 7.1 billion below last year, mainly explained by our BRL 6.7 billion 2024 dividend payout in early 2025. This cash flow performance supported our shareholders' agenda already demonstrated this year through, one, the execution of approximately 95% of our 208 million share buyback program announced in October last year, representing roughly BRL 3.2 billion cash disbursement until July. Two, the BRL 4.2 billion 2025 IOC payment announcements before withholding tax to be fully paid by October 6. And three, the 2026 IOC declarations of BRL 1.8 billion made so far this year before withholding tax to be paid by December. Altogether, such events represent BRL 5.9 billion returned to our shareholders on [indiscernible] tax cash basis as announced until the date of this report. Now back to you, Lisboa. Carlos Eduardo Lisboa: Thank you, Fleury. Let me close with these 3 messages. First, our first half performance reinforced our conviction in the category [indiscernible] profitable and growing the majority of our markets with healthy fundamentals. Its cultural relevance and versatility allows us to serve a broad range of consumers, need states and occasions, giving the category meaningful room to grow. Second, as category captain, our role to bridge the gap between beers potential and actual consumption. We have what it takes to do that: a proven growth formula built around our 3-pillar strategy and being deployed across our footprint through replicable models. And third, the flywheel is in motion and gaining momentum. We closed the first half, we posted volume growth, high single-digit net revenue growth, almost double-digit normalized EBITDA growth with margin expansion and double-digit normalized EPS growth. Solid operating cash flow supported continued shareholder returns. The consistency of this performance gives us confidence as we build on this progress in the second half. Before I finish, I want to thank our teams and business partners across all markets for their ownership, resilience and commitment, and for continuing to dream big to create a future with more shares. Thank you very much for joining us today. And with that, let me hand it over to the operator. Operator: [Operator Instructions] Our first question comes from Nadine Sarwat with Bernstein. Nadine Sarwat: I'd like to zoom in on Brazil NAB and on the minus 4.4% volume growth. Thank you for confirming that 30% of that decline was from the channel phaseout. So am I correct in assuming that channel phaseout will continue to be a headwind year-on-year for the next 3 quarters? And then putting that to one side, can you share with us how the underlying soft drinks market did, so that we can get a sense of that underperformance that you mentioned? And how are you thinking about that segment in the second half of the year? Carlos Eduardo Lisboa: Nadine, Lisboa here. So you already mentioned about the phaseout, right? So let me just complement the point with the following. First, the NAB industry in the first semester of this year was posted, right? But we couldn't leverage that much because the recovery for us took longer than expected, because we were focused on correcting the commercial course, I mean, price relativity, market share performance, volume performance, without compromising the health of the P&L of our business unit, okay? And I'm glad that we close the quarter 2 very in line with our expectations. It took longer, but now we are very close, because we corrected the price relativity without compromising what we deliver in terms of net revenue per hectoliter performance in the quarter. Two, the market share got pretty in line with historical leverage levels by the end of the quarter, right? And three, as a consequence, we saw our volumes also improving within this period, right? So when we look forward, I think it's always good to have in mind that last year we had 2 different years within the year, right, which means that we just cycled through the most tough comparison base for us volume-wise and share-wise, right? Which means that now, moving forward, we're going to have a way better, right, context to navigate with the recovery on top of the recovery of the balance that I just mentioned to you, right? And in terms of general health, we do -- I won't go into any sort of guidance about the industry moving forward, right, but given what I just mentioned to you, we should expect a way better situation for us on the NAB business in the second half of this year. Guilherme Fleury de Figueiredo Parolari: Nadine, Fleury here, if I can just complement Lisboa. I also heard you asking about how that adjustment, the 30%, will continue on the year. On that one, allow me to make 2 comments. That started or that is part of the resource allocation that we've been doing with Lisboa, thinking about profitability, channels, so on and so forth. And that is related to a specific fast food channel that we've exited. Therefore, that will continue to lap throughout this year, okay? Operator: Our next question comes from Thiago Duarte with BTG. Thiago Duarte: Yes, my question is now moving to Beer Brazil. And it's really trying to clean up the figures a little bit considering the World Cup. So you already mentioned the additional impact that the World Cup had in sales and marketing as you try to activate the brands and everything. So if you could also extrapolate a little bit of that analysis into your top line for Brazil Beer, both in terms of what you think the volume contribution was and also in terms on whether the event may have had an impact in terms of your revenue per hectoliter or average pricing for the quarter? That would be my question. Carlos Eduardo Lisboa: Thiago, nice to talk to you again. Let me answer your question starting from the overall assessment of the event, right, the World Cup. Positive, it's always important to emphasize that, and broadly in line with our expectations. For us was a 6-month platform activation, right, across portfolio, channels, regions, countries. So very different from one single brand campaign, right? Broad impact in line with what we were expecting across the footprint, not only Brazil, right? But Brazil, Argentina, Panama, Paraguay, Canada. Pretty much all of them brings pretty interesting results not only in volume, right, industry recovery, but also in terms of brand equity for our portfolio. Specifically about Brazil, what we estimated in terms of impact was around 0.5 to 1 percentage point in industry growth for the quarter, right, which is also in line with what we stated during our first quarter announcement, right? It was very interesting for us because we could activate, I'm going to use Brazil as an example, right, not only for our core brands, but we did so far pretty much all segments in our portfolio, from Core to Premium, with the introduction and acceleration of Michelob, right, we did so as well with the Balanced Choice portfolio, and even with the Beyond Beer reactivated, frankly, right? So was very interesting for us to manage the portfolio during the tournament. In terms of overall performance for the -- volume performance for the quarter, we estimate that the industry was slightly positive, as I mentioned during the intro. On top of that, we had a broad-based share gain, right, that pretty much explains the overall volume performance of the company. And when we look at net revenue per hectoliter, it's always good to have in mind that the first quarter result was a combination of a strong carryover on top of a prior year without any sort of carryover. On top of that, the initial implementation of calendar, right, and the combination and the mix, right, and the combination of the 3 components, delivered a very solid net revenue per hectoliter performance. And we were expecting somehow a dilution of our carryover right through the quarter 2. And we kept the discipline on the rate side. As a consequence, we delivered for the semester a net revenue per hectoliter that increased around 6%, which is 50% pretty much above inflation, with a good combination of rate in line with inflation and a mix contribution on top of that. And I always like to emphasize as well, Thiago, the mission of the net revenue strategy for us, which is on onefold, right, protect profitability, however, on the other fold, also protect the accessibility of our consumers to the category. And that's exactly the type of strategy we're going to keep in place for the residual part of the year. Thiago Duarte: And just one clarification from the statement you just made, Lisboa. You said you were already expecting some dilution from the net revenue per hectoliter into Q2. And I'm assuming that's because of the World Cup. Carlos Eduardo Lisboa: No. It's because of the carryover dilution from quarter 1 to quarter 2, and due to the comp base against '25. Because keep in mind that in the second quarter last year is when we kicked off, right, our net revenue agenda in the year. That's why we also saw an impact -- a temporary impact in market share that we recovered in Q3. That's the reason why we were expecting, not due to the World Cup. Thiago Duarte: Perfect. Because you're looking on a year-over-year basis, not referring on a Q-over-Q basis. That's clear. Operator: Our next question comes from Carlos Laboy with HSBC. Carlos Alberto Laboy: Lisboa, I keep coming back to kind of a different variant of the same question as previous quarters, right? It seems that your brand strength indicators and market share indicators for Brahma and Skol in their respective regions of strength only, right, they've been moving in the right direction. The gaps you were trying to close have closed. Can you give us an update on that, is the first question? And then the second question related to that is, do your Premium innovation efforts accrue a benefit to the quality image of your Mainstream brands? In other words, how do you know that what you're doing with Corona and the Michelob Ultra push that we just saw and the quality image of those brands is creating sort of a halo maybe over your Mainstream category or not? Carlos Eduardo Lisboa: Laboy, nice to talk to you, and a very interesting angle that you are bringing again to our discussion here. I'm passionate about this topic because one big dream that we have at Ambev, Laboy, is exactly about reimagining the Beer category. What the Beer category can be, right? And by doing so, in the end, our role, our mission is to bridge this future category image and the actual consumption, the actual portfolio that we have, right? So the entire capture in the end that we are building here has this role for us. So when you mentioned the Premium, for sure the Premium enhances the image of the category. And by doing so, obviously, you're going to see a halo effect in all segments. And whenever I do the same with the Core, and somehow we challenge the status quo with the Core, we also see a halo effect in other segments. And this is the beauty about it. Everything that we are doing with Balanced Choices for sure brings new attributes for the Beer category, that make consumers see our category differently, better, stronger. And that's the way we perpetuate the relevance of the Beer category, not only Brazil, but across our footprint. And we prepare the category to land in the future with the right attributes. So this is a very interesting question, right? And this is also related to the point when we bring the first pillar of our strategy, connecting, lead and grow. Because we want to take this role, be the category captain in our markets, okay? Now connecting to Skol. Once -- and I already mentioned this to you in our previous sessions, one of the key challenges that we have is to develop these new [ partitions ] of the category without compromising the core. We want to add on top. We want to keep the foundation solid, healthy and build on top. That's the way we're going to bring more consumers to the category. We're going to jump into more drinking occasions, right? And we avoid cannibalization. That's the game we are playing here, and that's why it's so important to keep Core healthy, okay? When I reflect about the Core performance, was volume-wise in the quarter, was broadly stable, which is good improvement versus last quarter. The performance is a consequence of our 3 brands performing in a pretty interesting way. Among the 3, Skol, after several quarters, stable in equity, delivered the first quarter with equity improvement. So it's a pretty interesting sign, right, is an issue, but it's good to see, right? Within the Mainstream segment, all 3 core brands gained share, right, including Skol. Within Ze, and I always consider Ze our fruit in the future, what we're going to see tomorrow in Brazil happening, right? Skol was the brand, core brand, growing fastest, right, which is very interesting, where we introduced Skol 0.0 line extension from the mother brand. Line extension achieved 20% of No Alcohol beer mix, which is also very interesting, right? And altogether, right, what I really like about the core performance, the Mainstream performance, is something that we rarely discuss about, Laboy, because we always put emphasis on consumers trading up from Core to Premium. But from 2019 to today, right, the value segment in Brazil reduced by half in an industry standpoint. And that volume was captured by the Core, another very interesting point for us to consider in our conversations moving forward, and another big reason why it's so important to have more than 1 core brand playing this game. Brazil is very different, regionally speaking, right? As a consequence, our brand's performance are also very different across the country, right? And the complementarity of our mainstream portfolio today is a very important competitive advantage for Ambev. Operator: Our next question comes from Lucas Ferreira with JPMorgan. Lucas Ferreira: If I may, a question, a follow-up question on the net revenue per hectoliter and how to think about that line going to the second half. So Lisboa, you mentioned a few factors, right, explaining that strong performance in the first half. When we look at the second half, especially when you compare year-over-year, is it fair to say that the delta year versus year should be larger in your Mainstream portfolio? Because if not mistaken, this is where you guys had a more sort of a trouble last year on the Mainstream. And this year, like you've been mentioning, sort of things are back on track on the brand equity, both of the brand equities in the Mainstream. So my question is how does mix affect. So should we see a higher delta year-over-year in the Mainstream and that obviously pushes your average prices down? Is it fair to say -- or any sort of price actions expected for the second half? Should we still be aiming this sort of inflation plus scenario for second half? That's the question I have. Carlos Eduardo Lisboa: Lucas, let me clarify the following. Actually, the main issue we had last year in the second half was not the Mainstream performance was more the industry impact against 2024. Bear in mind that in 2024, there was a weather phenomenon that impacted Brazil, El Nino, and created a distortion in weather temperatures. Not a coincidence, but a consequence of that, for 2024 was the peak of the industry in Brazil volume-wise. And when we had the change, the weather change in the -- especially in the second half of last year, is when the industry [ gap ] performance was created. And the Mainstream segment has, for obvious reasons, and we discussed a lot about that, due to the relevance in some specific occasions like the on-premise, there's a huge correlation with the industry performance. And this is exactly what explains the Mainstream performance from our portfolio from the second half of last year. So everything that we mentioned, myself and Fleury, about second quarter and first half should be complemented with this information because we just cycled through the toughest comparison we have -- we had against '25, volume-wise. Now we are entering in a different kind of scenario, right? And based on the information that we have available from different weather forecast institutes, there is no expectation whatsoever for even more adverse temperatures moving forward comparing to '25, right? This is an important consideration to keep in mind. On top of that, we don't have any more that fluctuation, share-wise, right? We kept our share level since Q3 last year pretty much stable, right? By the way, with some improvements. And that share level performance is supported by a very solid share performance across all segments. And that should be somehow the shape we should expect for Ambev moving forward. That's why we are so confident about our portfolio momentum, right? And we stated that today we have the most complete portfolio that the company ever had because this is making a huge difference combining with the execution capacity and the digital capabilities that this company has developed along the previous years, right? So I think that's all I have to say about your point. Operator: Our next question comes from Ben Theurer with Barclays. Benjamin Theurer: I wanted to follow up a little bit on the volume ex FIFA World Cup implications. And clearly, you've just laid out within your commentary what were the issues in the second half of last year affecting obviously volume on a year-over-year basis. So as you look at the second half in terms of particularly Beer in Brazil volume cadence, just try to help us bridge maybe what we should expect given it's a relatively easy comp, but obviously, the World Cup is behind us. So how do you think about the performance of volume into the second half? And then obviously, into -- moving into next year also with El Nino coming again, how much of a potential tailwind that could be? Carlos Eduardo Lisboa: Ben, look, I cannot provide you any industry volume guidance, right? But what I can say is the following. Comparisons versus '25, we are just cycling through a period when the industry declined mid to low single digit last year, against '24, right, to semester when the industry declined high single digit against '24. I think that's the first part of the answer, right? Those drivers that historically impact positively the industry played the same role in the first half and should play a similar role in the second half, namely LDA population growth, employment and aggregate income, okay? On the other hand, we do see, which is a concerning sign, household levels continue to be very elevated, right, which is a point of attention for us. But on the other hand, this is when we usually see our category resilience. Because in the end, beer for Brazilians is a very accessible [ entertaining], right? And this is very important for us, especially in this kind of scenario. Weather, right, well, weather is a very difficult and tricky aspect to predict, right? I'm not a weather expert here. So as I said, current external forecast do not indicate any average temperature more adverse than last year. Regarding El Nino,what I did Ben is the following. I was not here in '24. So we and the team, we revisit all the consequences, right, that we lived and lived and the country faced during the year. And there are very interesting learnings for us, right? The first priority should always be around our people. Our experience in '24 reinforced the importance of protecting them and supporting partners and communities. There will be probably, right, extreme weather change across the country, different impacts, is super important for us to be ready and be part of the solution, and protect as well our operations. Second learning, potential impact on costs, right? Extreme weather conditions may also affect agriculture commodities, logistic prices, right, input costs, right? And we are working closely with farmers and suppliers in order to be prepared to face that scenario. On the demand side, '24 illustrated that warmer temperatures can influence industry demand. And that's exactly what I mentioned before. However, these effects are unpredictable. I'm not an expert. I cannot -- we cannot rely on that. The only thing we can do is control what we can control and be prepared, be ready for a wide range of climate scenarios, right? And maybe, if possible, continue to build an even more resilient business moving forward. Guilherme Fleury de Figueiredo Parolari: And Ben, just one comment here just to reinforce what Lisboa said. If you go beyond the quarter, it's important to remember that we are very confident about what the industry can go. If I look into external drivers for Brazil and most of our emerging markets, population growth, rising income per capita, they should play favorably going forward, also per capita consumption. And what is on our side, as Lisboa said, what we can control and what we're working on, we believe that beer is very connected to focalization, and we are working to expand the boundaries of our category going forward. So we are confident on what are the demographics and what goes in external and what we can do to expand the category going forward. Operator: Okay. This concludes the Q&A session. I would like to invite Mr. Carlos Lisboa to proceed with his closing remarks. Please go ahead, sir. Carlos Eduardo Lisboa: Before we close, let me share a personal reflection. This was my sixth quarter leading Ambev, and the environment, as we just discussed, has gradually stood still, right? I believe great companies are defined by what they do and deliver in periods like this. They usually sharpen their choices, strengthen capabilities and turn challenges into opportunities, right? I feel privileged to lead Ambev and to work alongside people whose talent and ownership make that possible. There is always way more to do, but I believe Ambev is stronger today than when I began the journey as CEO. We are entering the second half confident in our strategy, energized by our momentum, and ready to capture the opportunities ahead and determined to keep building an even better company in the future. Thank you for joining us today. Operator: This concludes today's presentation. You may disconnect, and have a nice day. Before you buy stock in Ambev, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ambev wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ambev (ABEV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Thursday, July 30, 2026 at 4:00 a.m. ET CEO - Carlos Eduardo Lisboa CFO and Investor Relations Officer - Guilherme Fleury de Figueiredo Parolari Operator: Good afternoon, and thank you for waiting. We would like to welcome everyone to Ambev's 2026 Second Quarter Conference Call. Today with us, we have Mr. Carlos Lisboa, Ambev's CEO; and Mr. Guilherme Fleury, CFO and Investor Relations Officer. As a reminder, this conference presentation is available for download on our website, ri.ambev.com.br as well as through the webcast link. We would like to inform you that this event is being recorded. Before proceeding, let me mention that forward-looking statements are being made under the safe harbor of the Securities Litigation Reform Act of 1996. Forward-looking statements are based on the beliefs and assumptions of Ambev's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to the future events and therefore, depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions and other operating factors could also affect the future results of Ambev and could cause results to differ materially from those expressed in such forward-looking statements. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during today's call are both organic and normalized in nature and unless otherwise stated, percentage changes refer to comparison with 2025 second quarter results. Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of Ambev's normal activities. As normalized figures are non-GAAP measures, the company disclosed the consolidated profit, EPS, operating profit and EBITDA on a fully reported basis in the earnings release. Now I will turn the conference over to Mr. Carlos Lisboa. Mr. Lisboa, you may begin your conference. Carlos Eduardo Lisboa: Good afternoon, everyone, and thank you for joining our second quarter earnings call. Across our footprint, football is part of our culture, one of the strongest passion points that bring people together, and beer has a unique role in creating such special moments. I want to congratulate all the national teams from our markets that represented their countries in the FIFA World Cup. I also want to recognize our teams for their outstanding execution across Ambev's footprint. Moments like these are also where our company stands out. The World Cup is one of the toughest execution tests in our industry. The challenge goes beyond activating a campaign. It is about turning a tournament into a semester-long platform, activating a portfolio rather than a single brand and connecting consumers and customers across countries, channels and millions of points of sale while building engagement that lasts beyond the final whistle. Across our markets, our brands were among those most associated with the event. We did not just take part of the World Cup. We helped shape the category through it. While the World Cup has come to an end, our own game has only reached half time. Ambev's performance continued to strengthen in the second quarter with its quality and shape improving versus Q1. Volumes provided a much stronger contribution, growing 1.4% year-over-year with beer up mid-single digits. Disciplined revenue management and resource allocation supported net revenue growth of 6% and normalized EBITDA growth of 9%, even as we stepped up investment behind our brands. As a highlight, our normalized EPS grew 24%. Looking at the movie rather than the picture, the first half provides a broader view. Total volumes grew 0.7% with Beer volumes growing well ahead of the total. Net revenue grew 7%. Normalized EBITDA increased 10%, implying 1.3x operational leverage and normalized EPS also grew 10% Operating cash flow reached BRL 8 billion, one of Ambev's highest first half levels. As we enter the second half, we are building a business with stronger foundations and designed to deliver compound profitable growth over time. Behind this progress is our 3-pillar growth strategy, starting with pillar one: lead and grow the category. This quarter, we advanced on both dimensions. On lead, we strengthened both brand equity and market share across our 5 largest markets. On grow, share gains and improving industry conditions support beer volume growth in markets that represent over 80% of our volumes. Mainstream continued to improve sequentially with volumes only slightly below last year. We continue to lead the high-growth segments with a broad and complementary portfolio. Premium remained a key growth engine, growing nearly 20%. Balanced Choices grew more than 60%. No Alcohol beer grew around 20%, and Flavored Beer and RTDs maintain momentum. Michelob Ultra shows how we scale a relevant consumer proposition across markets. It more than tripled in Brazil and Argentina during the quarter, grew over 50% across our footprint, and is now present in nearly all our markets, connecting with consumers, seeking a more active and balanced lifestyle. This takes us to pillar two: digitize and monetize our ecosystem. Our digital ecosystem has become a key lever for category development. In an increasingly dynamic environment, a broader portfolio creates greater complexity. These enable us to manage that complexity with greater precision, strengthening the core while accelerating the new engines of category growth. It is not just a technical backbone, but an execution powerhouse that creates efficiencies and improves how we operate every day. We read demand faster and more accurately help customers increase sell out through better recommendations and allocate resources to the highest return opportunities. This strengthens our performance while helping our partners grow, as reflected in the continued improvement in our NPS. Ambev, Bees Marketplace GMV grew around 60% in both the second quarter and in the first half. In the first half, gross margin expanded 6.7 percentage points year-over-year, reaching 22%. In Brazil, Marketplace GMV doubled in the first half, with 3P as the main driver. And on the pillar three: optimize our business. This pillar creates the flexibility to deliver on both of our capital allocation priorities: investing behind opportunities that drive long-term growth while consistently returning excess cash to shareholders. In the quarter, we stepped up investments behind our brands, while expanding normalized EBITDA margin by 80 basis points. That discipline, together with solid cash generation, allowed us to advance our share buyback program and announce an additional [ IOC ] distribution this quarter. Together, the 3 pillars reinforce one another, creating a flywheel that strengthens the company and supports sustainable profitable growth. Before moving to our key markets, let me highlight the breadth of our performance. In both the second quarter and the first half, beer volumes grew or remained broadly stable in 7 of our 10 largest markets, while net revenue and EBITDA grew across all business units, showcasing that our progress was not dependent on any single market or growth lever. Starting with Brazil beer. Continued commercial momentum supported another solid quarter. The beer industry continued to improve sequentially. According to Nielsen, sellout improved from a high single-digit decline in the second half of 2025 and mid-single-digit decline in the first quarter to a slight decline in Q2. Nielsen's measurement calendar ended around June 20, capturing only the early part of the World Cup period. Extending the analysis through month end and across our broader coverage, we estimate that the industry was slightly positive in the quarter. The World Cup created incremental demand across channels and regions. Nevertheless, it was offset by adverse weather conditions. Average temperatures remained below last year and well below 2024. On a 2-year comparison, our industry modeling indicates that adverse weather accounts for the full industry volume gap versus 2024. Even so, our consumer tracking shows sequential improvement in category equity and participation, reinforcing our confidence in the category's resilience in a dynamic consumer and macroeconomic environment. Through that, our business continued to outperform. Market share expanded year-over-year for the fourth consecutive quarter, consolidating the commercial momentum of our business in Brazil. We estimate that our share increased across mainstream, premium, balanced choices and beyond beer. Brand equity continued to grow, while price relativity remained broadly stable versus last year. This quarter marked 1 full year since we regained leadership in premium with our share of the segment reaching an all-time high. Premium grew in the mid-20s and reached approximately 25% of our beer volumes. This performance reflects our new premium architecture, with each brand anchored to distinct consumer need states, Original for authenticity and simplicity; Stella Artois for quiet luxury; Corona, for the outdoors and natural living; and Michelob Ultra, for an active and balanced lifestyle. The recent announcement of Spaten Pro takes this [ architecture ] into a new space, combining premium credentials with 0 alcohol and 10 grams of protein to expand Balanced Choices into new occasions. Balanced Choices volumes doubled versus last year, while No Alcohol grew in the 30s. Mainstream was broadly stable, delivering a significant improvement from a mid-single-digit decline in the first quarter. Together, improving industry conditions and market share progression supported 5% beer volume growth. Serving this portfolio across more than 1 million points of sale requires precision at scale. Our digital ecosystem provides that capability. Through this, we improved assortment, placed the right SKUs in each outlet and activated our World Cup platform nationwide. Beer distribution grew more than 6%, with returnable bottles up over 4% and premium over 20%. On the consumer side, Ze delivered GMV grew 16% versus last year, while orders more than double on the Brazilian national team match days. Ze also gives us a real-time view of where the category is heading. Premium already represents 35% of beer volumes on the platform, while Balanced Choices reached approximately 7%, nearly twice the weight in Brazil beer. This combination translated into net revenue growth of 9%, EBITDA growth of 13%, and 110 basis points of margin expansion, while we continue to invest behind our brands. In Brazil NAB, sequential improvement, although the job is not done yet. The recovery has taken longer than expected, and volumes declined 4.4% in the quarter. Around 30% of the decline reflected our decision to phase out volumes from a lower return channel. Adjusting for this decision, volume performance improved versus the first quarter. By the end of the first half, we had also cycled the toughest comparison base of the year. Market share progressed sequentially, approaching historical levels by the quarter-end as price productivity pressures ease. Throughout the period, we continued investing behind our brands to regain momentum while maintaining disciplined revenue management and protecting profitability. As a result, Brazil NAB delivered double-digit EBITDA growth with more than 300 basis points of margin expansion in both the quarter and the first half. And last, we had 2 distinct realities within this quarter. In Bolivia, temporary social unrest and road blockage disrupted mobility and logistics for much of the period, leading to a double-digit volume decline. The situation has since normalized and our operations are running normally. Argentina, by contrast, was a highlight. Our beer volumes grew low single digit, lapping growth in the same quarter last year, supported mainly by continued market share momentum and improving industry and the national team's World Cup [ performance ]. Premium grew high single digits, led by Stella Artois and Corona. Balanced Choices reached a mid-single-digit mix of our beer volumes, supported by the launch of Michelob Ultra and Stella Pure Gold. Mainstream was broadly stable with Quilmes strengthening brand equity and mainstream share. This is the same category development playbook we are executing in Brazil, scaling Premium and developing Balanced Choices while continuing to strengthen Mainstream. In the Dominican Republic, our business delivered mid-single digits volume growth in the quarter despite the adverse weather conditions in April. The consumption environment remained constructive, supported by a favorable macro backdrop and healthy price relativity versus other alcoholic beverage. Beer continued to gain share within alcoholic beverage, and our volumes grew high single digits in the first half. Premium grew more than 40%, led by Corona and Michelob Ultra, while Mainstream grew low single digits, supported by Presidente and The One in the first half. Presidente's brand equity remains strong, reinforce its leadership and cultural connection with Dominican consumers. Finally, in Canada, we continue to outperform in a dynamic environment. The beer industry declined low single digit as unfavorable weather and softer consumer demand weighed on performance. Trends, nevertheless, improved from the first quarter, supported by FIFA World Cup occasions. We gained market share in both Beer and Beyond Beer. Within Beer, Michelob Ultra continued to lead the development of Balanced Choices, while Busch strengthened our Mainstream performance. In Beyond Beer, [ Mics ] and [indiscernible] Water remain important growth drivers. As a result, Canada delivered low single-digit top line growth alongside low to mid-single-digit EBITDA growth and margin expansion in both the quarter and the first half. With that, I will now turn it over to Fleury for the financial highlights. Guilherme Fleury de Figueiredo Parolari: Thank you, Lisboa. Hello, and good afternoon, everyone. As we close the first half of the year, our financial performance reflects the mindset that has guided us over the past quarters: to create value through disciplined resource allocation, focusing on what we can control. In the first half of 2026, we delivered 9.6% normalized EBITDA growth with margin expansion across all of our business units, as well as 10.1% growth in normalized net income. Stated EBITDA grew 2.5% and stated net income increased by 11.6% in the period. From a cash flow perspective, our first half performance allow us to continue executing our capital allocation priorities of investing in the organic growth of our business while also returning excess cash to shareholders over time. The first half performance was supported by another quarter of consistent execution of our growth strategy. Now let me walk you through the second quarter highlights. Starting with operating performance. Normalized EBITDA grew 8.9% in the period, reaching BRL 6.4 billion, with 80 basis points of margin expansion. This reflects disciplined decisions across cost, expenses and revenue management, allowing us to expand both gross margin and EBITDA margin while stepping up investments behind our brands during the FIFA World Cup. Consolidated cash COGS per hectoliter, excluding Marketplace, increased by 2.2% in the period, supported by continued productivity and operational efficiencies across our footprint. Here, it is worth noting that in the first half of the year, Brazil Beer cash COGS per hectoliter, excluding Marketplace products, increased by 9.7%, while our full year guidance remains unchanged at between 4.5% and 7.5%. Consolidated cash SG&A grew by 10.7% in the quarter, mainly driven by higher sales and marketing expenses, reflecting a portion of brand activations during the FIFA World Cup. As we mentioned during our first quarter earnings call, these expenses tend to follow the timing of our [ Meg ] events calendar and Q2 reflected that. Distribution expenses also increased in the period, mostly due to volume performance as well as one-off expenses in [ Lass ] as part of restructuring initiatives in Argentina. Taken together, these results illustrate how we think about resource allocation. Our cost PMO initiative that started last year is based on a continuous improvement mindset together with choices to focus on growing return on invested capital, ultimately, freeing up resources to reinvest in our strategic priorities and pursue our ambition of delivering consolidated margin expansion over time. On administrative expenses, it is important to remember that the effect of lower volumes in 2025 impacted our bonus accruals in the second half of last year, creating a potentially tougher comparison base going forward. Now moving to below EBITDA lines. Net financial expenses totaled BRL 486 million in the quarter, a 50% reduction versus the same period of last year, mainly explained by 2 positive noncash factors in the nonderivative instruments line. First, in Bolivia, following an approximately 40% devaluation of the local currency in late June, we had a positive effect coming from the conversion of hard currency held in the company. These reserves were due to secure liquidity to meet the expected foreign currency obligations, including payments to certain suppliers and dividend remittances. Second, a positive effect that came from other markets where local currencies were more stable during the quarter, resulting in lower conversion losses on monetary balances compared to last year. On the Bolivar devaluation, it is worth noting that our consolidated income statement reflects average monthly FX rates as required under the applicable accounting standards. As a result, going forward, the local currency devaluation is expected to gradually create a negative translation impact on our financial and operational results. Turning to income taxes. Our consolidated effective tax rate in the quarter was 19.9%, compared to 18.4% in the second quarter of 2025, reflecting country mix effects over higher earnings before taxes, partially offset by regular income tax attributes. In the first 6 months of the year, our ETR was 20.6%, broadly in line with the 20.3% recorded in the first half of 2025. As a result, both normalized and stated net income reached about BRL 3.5 billion, increasing 23.3% and 24.5%, respectively, versus last year. Normalized and stated earnings per share reached BRL 0.22, representing, respectively, a 24.2% and 25.4% increase versus last year. Now turning to cash flow generation. Let's go beyond the quarter and look at our performance in the first half of the year. Cash flow from operating activities totaled BRL 7.9 billion, an increase of BRL 3.6 billion, representing over 80% improvement versus the same period of last year. This was mainly driven by higher EBITDA and improved working capital dynamics, with payables reflecting our volume performance. Cash flow used in investing activities totaled BRL 3.3 billion, BRL 1.5 billion higher than in the first half of 2025, primarily reflecting the deconsolidation of assets previously reported as restricted cash in CAC as disclosed in our first quarter's financial statement, partially offset by lower CapEx investments. It is important to note that we continue to invest with discipline in our operations, balancing brewery upgrades, capacity expansion, innovation capabilities, the expansion of our commercial assets base and our technology infrastructure, all aimed at supporting long-term value creation. Cash flow used in financing activities totaled BRL 5.7 billion, BRL 7.1 billion below last year, mainly explained by our BRL 6.7 billion 2024 dividend payout in early 2025. This cash flow performance supported our shareholders' agenda already demonstrated this year through, one, the execution of approximately 95% of our 208 million share buyback program announced in October last year, representing roughly BRL 3.2 billion cash disbursement until July. Two, the BRL 4.2 billion 2025 IOC payment announcements before withholding tax to be fully paid by October 6. And three, the 2026 IOC declarations of BRL 1.8 billion made so far this year before withholding tax to be paid by December. Altogether, such events represent BRL 5.9 billion returned to our shareholders on [indiscernible] tax cash basis as announced until the date of this report. Now back to you, Lisboa. Carlos Eduardo Lisboa: Thank you, Fleury. Let me close with these 3 messages. First, our first half performance reinforced our conviction in the category [indiscernible] profitable and growing the majority of our markets with healthy fundamentals. Its cultural relevance and versatility allows us to serve a broad range of consumers, need states and occasions, giving the category meaningful room to grow. Second, as category captain, our role to bridge the gap between beers potential and actual consumption. We have what it takes to do that: a proven growth formula built around our 3-pillar strategy and being deployed across our footprint through replicable models. And third, the flywheel is in motion and gaining momentum. We closed the first half, we posted volume growth, high single-digit net revenue growth, almost double-digit normalized EBITDA growth with margin expansion and double-digit normalized EPS growth. Solid operating cash flow supported continued shareholder returns. The consistency of this performance gives us confidence as we build on this progress in the second half. Before I finish, I want to thank our teams and business partners across all markets for their ownership, resilience and commitment, and for continuing to dream big to create a future with more shares. Thank you very much for joining us today. And with that, let me hand it over to the operator. Operator: [Operator Instructions] Our first question comes from Nadine Sarwat with Bernstein. Nadine Sarwat: I'd like to zoom in on Brazil NAB and on the minus 4.4% volume growth. Thank you for confirming that 30% of that decline was from the channel phaseout. So am I correct in assuming that channel phaseout will continue to be a headwind year-on-year for the next 3 quarters? And then putting that to one side, can you share with us how the underlying soft drinks market did, so that we can get a sense of that underperformance that you mentioned? And how are you thinking about that segment in the second half of the year? Carlos Eduardo Lisboa: Nadine, Lisboa here. So you already mentioned about the phaseout, right? So let me just complement the point with the following. First, the NAB industry in the first semester of this year was posted, right? But we couldn't leverage that much because the recovery for us took longer than expected, because we were focused on correcting the commercial course, I mean, price relativity, market share performance, volume performance, without compromising the health of the P&L of our business unit, okay? And I'm glad that we close the quarter 2 very in line with our expectations. It took longer, but now we are very close, because we corrected the price relativity without compromising what we deliver in terms of net revenue per hectoliter performance in the quarter. Two, the market share got pretty in line with historical leverage levels by the end of the quarter, right? And three, as a consequence, we saw our volumes also improving within this period, right? So when we look forward, I think it's always good to have in mind that last year we had 2 different years within the year, right, which means that we just cycled through the most tough comparison base for us volume-wise and share-wise, right? Which means that now, moving forward, we're going to have a way better, right, context to navigate with the recovery on top of the recovery of the balance that I just mentioned to you, right? And in terms of general health, we do -- I won't go into any sort of guidance about the industry moving forward, right, but given what I just mentioned to you, we should expect a way better situation for us on the NAB business in the second half of this year. Guilherme Fleury de Figueiredo Parolari: Nadine, Fleury here, if I can just complement Lisboa. I also heard you asking about how that adjustment, the 30%, will continue on the year. On that one, allow me to make 2 comments. That started or that is part of the resource allocation that we've been doing with Lisboa, thinking about profitability, channels, so on and so forth. And that is related to a specific fast food channel that we've exited. Therefore, that will continue to lap throughout this year, okay? Operator: Our next question comes from Thiago Duarte with BTG. Thiago Duarte: Yes, my question is now moving to Beer Brazil. And it's really trying to clean up the figures a little bit considering the World Cup. So you already mentioned the additional impact that the World Cup had in sales and marketing as you try to activate the brands and everything. So if you could also extrapolate a little bit of that analysis into your top line for Brazil Beer, both in terms of what you think the volume contribution was and also in terms on whether the event may have had an impact in terms of your revenue per hectoliter or average pricing for the quarter? That would be my question. Carlos Eduardo Lisboa: Thiago, nice to talk to you again. Let me answer your question starting from the overall assessment of the event, right, the World Cup. Positive, it's always important to emphasize that, and broadly in line with our expectations. For us was a 6-month platform activation, right, across portfolio, channels, regions, countries. So very different from one single brand campaign, right? Broad impact in line with what we were expecting across the footprint, not only Brazil, right? But Brazil, Argentina, Panama, Paraguay, Canada. Pretty much all of them brings pretty interesting results not only in volume, right, industry recovery, but also in terms of brand equity for our portfolio. Specifically about Brazil, what we estimated in terms of impact was around 0.5 to 1 percentage point in industry growth for the quarter, right, which is also in line with what we stated during our first quarter announcement, right? It was very interesting for us because we could activate, I'm going to use Brazil as an example, right, not only for our core brands, but we did so far pretty much all segments in our portfolio, from Core to Premium, with the introduction and acceleration of Michelob, right, we did so as well with the Balanced Choice portfolio, and even with the Beyond Beer reactivated, frankly, right? So was very interesting for us to manage the portfolio during the tournament. In terms of overall performance for the -- volume performance for the quarter, we estimate that the industry was slightly positive, as I mentioned during the intro. On top of that, we had a broad-based share gain, right, that pretty much explains the overall volume performance of the company. And when we look at net revenue per hectoliter, it's always good to have in mind that the first quarter result was a combination of a strong carryover on top of a prior year without any sort of carryover. On top of that, the initial implementation of calendar, right, and the combination and the mix, right, and the combination of the 3 components, delivered a very solid net revenue per hectoliter performance. And we were expecting somehow a dilution of our carryover right through the quarter 2. And we kept the discipline on the rate side. As a consequence, we delivered for the semester a net revenue per hectoliter that increased around 6%, which is 50% pretty much above inflation, with a good combination of rate in line with inflation and a mix contribution on top of that. And I always like to emphasize as well, Thiago, the mission of the net revenue strategy for us, which is on onefold, right, protect profitability, however, on the other fold, also protect the accessibility of our consumers to the category. And that's exactly the type of strategy we're going to keep in place for the residual part of the year. Thiago Duarte: And just one clarification from the statement you just made, Lisboa. You said you were already expecting some dilution from the net revenue per hectoliter into Q2. And I'm assuming that's because of the World Cup. Carlos Eduardo Lisboa: No. It's because of the carryover dilution from quarter 1 to quarter 2, and due to the comp base against '25. Because keep in mind that in the second quarter last year is when we kicked off, right, our net revenue agenda in the year. That's why we also saw an impact -- a temporary impact in market share that we recovered in Q3. That's the reason why we were expecting, not due to the World Cup. Thiago Duarte: Perfect. Because you're looking on a year-over-year basis, not referring on a Q-over-Q basis. That's clear. Operator: Our next question comes from Carlos Laboy with HSBC. Carlos Alberto Laboy: Lisboa, I keep coming back to kind of a different variant of the same question as previous quarters, right? It seems that your brand strength indicators and market share indicators for Brahma and Skol in their respective regions of strength only, right, they've been moving in the right direction. The gaps you were trying to close have closed. Can you give us an update on that, is the first question? And then the second question related to that is, do your Premium innovation efforts accrue a benefit to the quality image of your Mainstream brands? In other words, how do you know that what you're doing with Corona and the Michelob Ultra push that we just saw and the quality image of those brands is creating sort of a halo maybe over your Mainstream category or not? Carlos Eduardo Lisboa: Laboy, nice to talk to you, and a very interesting angle that you are bringing again to our discussion here. I'm passionate about this topic because one big dream that we have at Ambev, Laboy, is exactly about reimagining the Beer category. What the Beer category can be, right? And by doing so, in the end, our role, our mission is to bridge this future category image and the actual consumption, the actual portfolio that we have, right? So the entire capture in the end that we are building here has this role for us. So when you mentioned the Premium, for sure the Premium enhances the image of the category. And by doing so, obviously, you're going to see a halo effect in all segments. And whenever I do the same with the Core, and somehow we challenge the status quo with the Core, we also see a halo effect in other segments. And this is the beauty about it. Everything that we are doing with Balanced Choices for sure brings new attributes for the Beer category, that make consumers see our category differently, better, stronger. And that's the way we perpetuate the relevance of the Beer category, not only Brazil, but across our footprint. And we prepare the category to land in the future with the right attributes. So this is a very interesting question, right? And this is also related to the point when we bring the first pillar of our strategy, connecting, lead and grow. Because we want to take this role, be the category captain in our markets, okay? Now connecting to Skol. Once -- and I already mentioned this to you in our previous sessions, one of the key challenges that we have is to develop these new [ partitions ] of the category without compromising the core. We want to add on top. We want to keep the foundation solid, healthy and build on top. That's the way we're going to bring more consumers to the category. We're going to jump into more drinking occasions, right? And we avoid cannibalization. That's the game we are playing here, and that's why it's so important to keep Core healthy, okay? When I reflect about the Core performance, was volume-wise in the quarter, was broadly stable, which is good improvement versus last quarter. The performance is a consequence of our 3 brands performing in a pretty interesting way. Among the 3, Skol, after several quarters, stable in equity, delivered the first quarter with equity improvement. So it's a pretty interesting sign, right, is an issue, but it's good to see, right? Within the Mainstream segment, all 3 core brands gained share, right, including Skol. Within Ze, and I always consider Ze our fruit in the future, what we're going to see tomorrow in Brazil happening, right? Skol was the brand, core brand, growing fastest, right, which is very interesting, where we introduced Skol 0.0 line extension from the mother brand. Line extension achieved 20% of No Alcohol beer mix, which is also very interesting, right? And altogether, right, what I really like about the core performance, the Mainstream performance, is something that we rarely discuss about, Laboy, because we always put emphasis on consumers trading up from Core to Premium. But from 2019 to today, right, the value segment in Brazil reduced by half in an industry standpoint. And that volume was captured by the Core, another very interesting point for us to consider in our conversations moving forward, and another big reason why it's so important to have more than 1 core brand playing this game. Brazil is very different, regionally speaking, right? As a consequence, our brand's performance are also very different across the country, right? And the complementarity of our mainstream portfolio today is a very important competitive advantage for Ambev. Operator: Our next question comes from Lucas Ferreira with JPMorgan. Lucas Ferreira: If I may, a question, a follow-up question on the net revenue per hectoliter and how to think about that line going to the second half. So Lisboa, you mentioned a few factors, right, explaining that strong performance in the first half. When we look at the second half, especially when you compare year-over-year, is it fair to say that the delta year versus year should be larger in your Mainstream portfolio? Because if not mistaken, this is where you guys had a more sort of a trouble last year on the Mainstream. And this year, like you've been mentioning, sort of things are back on track on the brand equity, both of the brand equities in the Mainstream. So my question is how does mix affect. So should we see a higher delta year-over-year in the Mainstream and that obviously pushes your average prices down? Is it fair to say -- or any sort of price actions expected for the second half? Should we still be aiming this sort of inflation plus scenario for second half? That's the question I have. Carlos Eduardo Lisboa: Lucas, let me clarify the following. Actually, the main issue we had last year in the second half was not the Mainstream performance was more the industry impact against 2024. Bear in mind that in 2024, there was a weather phenomenon that impacted Brazil, El Nino, and created a distortion in weather temperatures. Not a coincidence, but a consequence of that, for 2024 was the peak of the industry in Brazil volume-wise. And when we had the change, the weather change in the -- especially in the second half of last year, is when the industry [ gap ] performance was created. And the Mainstream segment has, for obvious reasons, and we discussed a lot about that, due to the relevance in some specific occasions like the on-premise, there's a huge correlation with the industry performance. And this is exactly what explains the Mainstream performance from our portfolio from the second half of last year. So everything that we mentioned, myself and Fleury, about second quarter and first half should be complemented with this information because we just cycled through the toughest comparison we have -- we had against '25, volume-wise. Now we are entering in a different kind of scenario, right? And based on the information that we have available from different weather forecast institutes, there is no expectation whatsoever for even more adverse temperatures moving forward comparing to '25, right? This is an important consideration to keep in mind. On top of that, we don't have any more that fluctuation, share-wise, right? We kept our share level since Q3 last year pretty much stable, right? By the way, with some improvements. And that share level performance is supported by a very solid share performance across all segments. And that should be somehow the shape we should expect for Ambev moving forward. That's why we are so confident about our portfolio momentum, right? And we stated that today we have the most complete portfolio that the company ever had because this is making a huge difference combining with the execution capacity and the digital capabilities that this company has developed along the previous years, right? So I think that's all I have to say about your point. Operator: Our next question comes from Ben Theurer with Barclays. Benjamin Theurer: I wanted to follow up a little bit on the volume ex FIFA World Cup implications. And clearly, you've just laid out within your commentary what were the issues in the second half of last year affecting obviously volume on a year-over-year basis. So as you look at the second half in terms of particularly Beer in Brazil volume cadence, just try to help us bridge maybe what we should expect given it's a relatively easy comp, but obviously, the World Cup is behind us. So how do you think about the performance of volume into the second half? And then obviously, into -- moving into next year also with El Nino coming again, how much of a potential tailwind that could be? Carlos Eduardo Lisboa: Ben, look, I cannot provide you any industry volume guidance, right? But what I can say is the following. Comparisons versus '25, we are just cycling through a period when the industry declined mid to low single digit last year, against '24, right, to semester when the industry declined high single digit against '24. I think that's the first part of the answer, right? Those drivers that historically impact positively the industry played the same role in the first half and should play a similar role in the second half, namely LDA population growth, employment and aggregate income, okay? On the other hand, we do see, which is a concerning sign, household levels continue to be very elevated, right, which is a point of attention for us. But on the other hand, this is when we usually see our category resilience. Because in the end, beer for Brazilians is a very accessible [ entertaining], right? And this is very important for us, especially in this kind of scenario. Weather, right, well, weather is a very difficult and tricky aspect to predict, right? I'm not a weather expert here. So as I said, current external forecast do not indicate any average temperature more adverse than last year. Regarding El Nino,what I did Ben is the following. I was not here in '24. So we and the team, we revisit all the consequences, right, that we lived and lived and the country faced during the year. And there are very interesting learnings for us, right? The first priority should always be around our people. Our experience in '24 reinforced the importance of protecting them and supporting partners and communities. There will be probably, right, extreme weather change across the country, different impacts, is super important for us to be ready and be part of the solution, and protect as well our operations. Second learning, potential impact on costs, right? Extreme weather conditions may also affect agriculture commodities, logistic prices, right, input costs, right? And we are working closely with farmers and suppliers in order to be prepared to face that scenario. On the demand side, '24 illustrated that warmer temperatures can influence industry demand. And that's exactly what I mentioned before. However, these effects are unpredictable. I'm not an expert. I cannot -- we cannot rely on that. The only thing we can do is control what we can control and be prepared, be ready for a wide range of climate scenarios, right? And maybe, if possible, continue to build an even more resilient business moving forward. Guilherme Fleury de Figueiredo Parolari: And Ben, just one comment here just to reinforce what Lisboa said. If you go beyond the quarter, it's important to remember that we are very confident about what the industry can go. If I look into external drivers for Brazil and most of our emerging markets, population growth, rising income per capita, they should play favorably going forward, also per capita consumption. And what is on our side, as Lisboa said, what we can control and what we're working on, we believe that beer is very connected to focalization, and we are working to expand the boundaries of our category going forward. So we are confident on what are the demographics and what goes in external and what we can do to expand the category going forward. Operator: Okay. This concludes the Q&A session. I would like to invite Mr. Carlos Lisboa to proceed with his closing remarks. Please go ahead, sir. Carlos Eduardo Lisboa: Before we close, let me share a personal reflection. This was my sixth quarter leading Ambev, and the environment, as we just discussed, has gradually stood still, right? I believe great companies are defined by what they do and deliver in periods like this. They usually sharpen their choices, strengthen capabilities and turn challenges into opportunities, right? I feel privileged to lead Ambev and to work alongside people whose talent and ownership make that possible. There is always way more to do, but I believe Ambev is stronger today than when I began the journey as CEO. We are entering the second half confident in our strategy, energized by our momentum, and ready to capture the opportunities ahead and determined to keep building an even better company in the future. Thank you for joining us today. Operator: This concludes today's presentation. You may disconnect, and have a nice day. Before you buy stock in Ambev, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ambev wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $397,081!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,166,221!* Now, it’s worth noting Stock Advisor’s total average return is 889% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ambev (ABEV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: Net revenue grew 6% in Q2 2026 and 7% in the first half of 2026. Volume: Total volumes grew 1.4% year-over-year in Q2, with beer volumes up mid-single-digits. In the first half, total volumes grew 0.7%. Normalized EBITDA: Increased 8.9% in Q2 and 9.6% in the first half of 2026. Normalized EBITDA Margin: Expanded by 80 basis points in Q2. Normalized EPS: Grew 24.2% in Q2 and 10.1% in the first half of 2026. Normalized Net Income: Increased 23.3% in Q2 and 10.1% in the first half of 2026. Operating Cash Flow: Reached R$7.9 billion in the first half of 2026, an 80% improvement year-over-year. Consolidated Cash Costs: Per hectoliter, excluding marketplace, increased by 2.2% in Q2. Net Financial Expenses: Totaled R$486 million in Q2, a 50% reduction year-over-year. Effective Tax Rate: Was 19.9% in Q2, compared to 18.4% in Q2 2025. Is ABEV fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ambev SA (NYSE:ABEV) reported strong Q2 2026 results with beer volumes growing mid-single digits and consolidated net revenue up 6%. Normalized EBITDA grew 9% with 80 basis points of margin expansion, driven by disciplined cost management and revenue management. Premium beer segment continued to be a key growth engine, growing nearly 20% and reaching approximately 25% of beer volumes in Brazil. Digital ecosystem (BEES) showed strong progress, with marketplace GMV growing around 60% in both Q2 and the first half of 2026. Normalized EPS grew 24% in Q2, and operating cash flow reached one of the highest first-half levels at R$8 billion. Brazil NAB (non-alcoholic beverages) volumes declined 4.4% in Q2, with recovery taking longer than expected. Adverse weather conditions in Brazil, with below-average temperatures, partially offset the positive demand impact from the FIFA World Cup. Bolivia experienced a double-digit volume decline due to temporary social unrest and road blockades disrupting operations. The company faces a tough comparison base for bonus accruals in the second half of 2026 due to lower volumes in 2025. Elevated household debt levels in Brazil remain a point of concern for consumer spending on the category. Here are the key highlights from the Ambev S.A. (NYSE:ABEV) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: Regarding Brazil NAB's -4.4% volume decline, is the 30% channel phase-out a headwind for the next three quarters? How is the underlying soft drink market performing, and what is your outlook for the second half? A: (Carlos Lisboa, CEO) The NAB industry was positive in the first half, but our recovery took longer as we focused on correcting commercial course (price relativity, market share) without compromising the P&L. We are now very close to historical market share levels and have cycled the toughest comparison base. Moving forward, we expect a much better situation for the NAB business in the second half. (Guilherme Fleury, CFO) The 30% adjustment is related to exiting a specific fast-food channel, so it will continue to lap throughout this year. Q: Can you clarify the volume and net revenue per hectoliter (NRPL) impact of the World Cup on Brazil Beer? Was the expected dilution in NRPL in Q2 due to the World Cup? A: (Carlos Lisboa, CEO) The World Cup was a positive event, broadly in line with expectations, contributing an estimated 0.5 to 1 percentage point to industry growth in Brazil. Our volume performance was driven by this and broad-based share gains. The NRPL dilution was not due to the World Cup, but rather the natural carryover dilution from Q1 to Q2 as we lapped the start of our net revenue agenda from last year. Our strategy remains to protect profitability while maintaining consumer accessibility. Q: Can you provide an update on the brand strength and market share of your mainstream brands (Brahma, Skol)? Do your premium and innovation efforts create a halo effect for the mainstream category? A: (Carlos Lisboa, CEO) Yes, premium and innovation enhance the overall category image, creating a halo effect across all segments. Our goal is to add on top of the core without cannibalizing it. Mainstream volumes were broadly stable, a significant improvement from Q1. Notably, Skol delivered its first quarter of equity improvement after several quarters of stability. All three core brands gained share, and Skul was the fastest-growing core brand on the Ze delivery platform. Q: How should we think about net revenue per hectoliter in the second half? Should we expect a higher delta year-over-year from the mainstream portfolio, which could push average prices down? A: (Carlos Lisboa, CEO) The main issue in H2 last year was the industry impact from adverse weather, not mainstream performance. We have now cycled that tough comparison. There is no expectation for more adverse temperatures versus last year. Our market share has been stable since Q3 last year, supported by solid performance across all segments. We are confident in our portfolio momentum, which is the most complete the company has ever had. Q: Given the easy comp from H2 2025 and the World Cup being behind us, how should we think about the volume cadence for Brazil Beer in the second half? Could a potential El Nino be a tailwind? A: (Carlos Lisboa, CEO) We cannot provide industry volume guidance, but we are cycling a period of mid-to-high single-digit industry declines. Positive drivers like population growth and income should persist, though high household debt is a concern. Weather is unpredictable, but current forecasts don't indicate more adverse temperatures. Regarding El Nino, our key learnings from 2024 are to prioritize people safety, prepare for potential cost impacts on commodities, and recognize that warmer weather can influence demand, but we cannot rely on it. (Guilherme Fleury, CFO) We are confident in the industry's long-term potential driven by demographics and our ability to expand the category. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Ambev S.A.? Here are five stocks we like better. Ambev delivered strong Q2 results: Total volume rose 1.4%, beer volume grew at a mid-single-digit rate, net revenue increased 6%, normalized EBITDA rose 9%, and normalized EPS climbed 24% year over year. Brazil beer was the primary growth engine: Volumes increased 5%, market share expanded for the fourth consecutive quarter, and premium, Balanced Choices, no-alcohol, and Michelob ULTRA products posted robust growth. Brazil Beer EBITDA rose 13%, with margin expanding 110 basis points. Cash generation and shareholder returns remained strong: First-half operating cash flow reached BRL 7.9 billion, while Ambev had completed about 95% of its 208 million-share repurchase program and announced BRL 5.9 billion in total shareholder returns. 5 Cheap Dividend Stocks: Which to Buy Now Ambev (NYSE:ABEV) reported stronger second-quarter operating performance, led by beer-volume growth, revenue management and margin expansion, while continuing to invest in brand activations tied to the FIFA World Cup. Chief Executive Officer Carlos Lisboa said total volumes increased 1.4% year over year in the second quarter, with beer volumes rising by the mid-single digits. Net revenue rose 6%, normalized EBITDA increased 9%, and normalized earnings per share grew 24%. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 14 best consumer staples dividend stocks For the first half, total volumes grew 0.7%, net revenue increased 7%, normalized EBITDA rose 10%, and normalized EPS also advanced 10%. Operating cash flow reached BRL 8 billion, which Lisboa described as one of the company’s highest first-half levels. Lisboa attributed the quarter’s performance to Ambev’s strategy of leading and expanding the beer category, digitizing its ecosystem and optimizing operations. He said beer volumes grew or remained broadly stable in seven of Ambev’s 10 largest markets, while revenue and EBITDA increased across all business units. → 3 Value ETFs to Consider as Growth Stocks Lag Behind 3 Reasons Boston Beer Stock Could Finally Hop Higher The company’s higher-growth beer segments continued to outpace the broader portfolio. Premium volumes rose nearly 20%, while Balanced Choices volumes increased more than 60%. No-alcohol beer grew about 20%, and Michelob ULTRA grew more than 50% across Ambev’s footprint. The brand more than tripled in Brazil and Argentina during the quarter, Lisboa said. Ambev’s BEES Marketplace also expanded. Marketplace gross merchandise value rose about 60% in both the second quarter and first half, while first-half gross margin expanded 6.7 percentage points to 22%. In Brazil, Marketplace GMV doubled in the first half, primarily driven by third-party sales. → 5 AI Stocks Are Pulling Back—Which Growth Catalysts Still Look Strongest? The company said its Zé Delivery platform recorded 16% GMV growth in Brazil, with orders more than doubling on Brazilian national team match days. Premium products represented 35% of beer volumes sold through the platform, while Balanced Choices accounted for roughly 7%. In Brazil Beer, Ambev reported 5% volume growth, supported by improving industry conditions and market-share gains. Lisboa said the company expanded share for the fourth consecutive quarter, with gains across mainstream, premium, Balanced Choices and beyond-beer categories. According to the company’s estimates, Brazil’s beer industry was slightly positive during the quarter, though adverse weather offset some incremental World Cup demand. Lisboa said the World Cup contributed an estimated 0.5 to 1 percentage point to industry growth in Brazil. Premium beer grew in the mid-20% range and reached approximately 25% of Ambev’s Brazilian beer volumes. The company said its premium share reached an all-time high following a year of regained leadership in the segment. Balanced Choices volumes doubled from a year earlier, and no-alcohol volumes grew in the 30% range. Brazil Beer net revenue increased 9%, EBITDA rose 13%, and EBITDA margin expanded 110 basis points. Beer distribution increased more than 6%, including growth of more than 20% in premium distribution. Lisboa told analysts that first-half Brazilian beer net revenue per hectoliter rose about 6%, which he said was roughly 50% above inflation. He said the company intends to maintain a revenue-management approach that protects profitability while preserving consumer accessibility to the category. Brazil non-alcoholic beverage volumes declined 4.4% in the quarter. Ambev said roughly 30% of the decline reflected its decision to exit a lower-return fast-food channel. CFO and Investor Relations Officer Guilherme Fleury said the effect of the channel exit would continue to be lapped through the remainder of 2026. Lisboa said the recovery in Brazil NAB had taken longer than expected, though market share improved sequentially and approached historical levels by the end of the quarter as price-relativity pressure eased. The business delivered double-digit EBITDA growth and more than 300 basis points of margin expansion. Elsewhere, Bolivia experienced a double-digit volume decline as social unrest and road blockades disrupted mobility and logistics. Lisboa said conditions have since normalized. Argentina was a highlight, with beer volumes growing by the low double digits, supported by market-share momentum, industry improvement and World Cup-related demand. The Dominican Republic delivered mid-single-digit volume growth despite adverse weather in April, while first-half beer volumes rose by the high single digits. Canada reported low-single-digit top-line growth and low- to mid-single-digit EBITDA growth, with market-share gains in beer and beyond beer despite a declining industry. Normalized EBITDA rose 8.9% to BRL 6.4 billion in the second quarter, with EBITDA margin expanding 80 basis points. Consolidated cash cost of goods sold per hectoliter, excluding Marketplace, increased 2.2%, supported by productivity and operating efficiencies. Cash selling, general and administrative expenses increased 10.7%, largely because of higher sales and marketing spending associated with World Cup activations. Distribution costs also rose, reflecting volume performance and one-time restructuring expenses in Argentina. Net financial expenses totaled BRL 486 million, down 50% from the prior year. Fleury cited positive non-cash foreign-currency effects, including the conversion of hard-currency holdings after Bolivia’s late-June currency devaluation. He cautioned that the devaluation is expected to gradually create negative translation effects on financial and operating results. Normalized and reported net income were each about BRL 3.5 billion. Normalized EPS was BRL 0.22, up 24.2% year over year. First-half cash flow from operations totaled BRL 7.9 billion, up BRL 3.6 billion from a year earlier. The company said it had executed approximately 95% of its 208 million-share repurchase program announced in October, representing roughly BRL 3.2 billion in cash disbursements through July. It also cited BRL 4.2 billion in 2025 interest-on-capital payments and BRL 1.8 billion in 2026 interest-on-capital declarations, for total announced shareholder returns of BRL 5.9 billion on a pre-tax cash basis. Ambev (NYSE: ABEV) is a Brazilian-based beverage company that produces, distributes and markets a broad portfolio of alcoholic and non-alcoholic drinks. The company's core business centers on brewing and selling beer, alongside a range of soft drinks, bottled water, energy drinks and other malt-based beverages. Headquartered in São Paulo, Ambev operates an integrated value chain that covers manufacturing, packaging, logistics and commercial sales to retail, on-premise and institutional customers. The company traces its origins to the 1999 merger of two historic Brazilian breweries, and later became part of the broader global brewing group through subsequent industry consolidations. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Ambev Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

PepsiCo, Inc. PEP has reported strong second-quarter 2026 results, wherein revenues and earnings per share (EPS) beat the Zacks Consensus Estimate and improved year over year. Results have reflected organic revenue growth, favorable foreign currency translation, and a net benefit from acquisitions and divestitures.PEP’s second-quarter core EPS of $2.20 beat the Zacks Consensus Estimate of $2.19 by 0.5% and improved 4% year over year. The company’s core constant-currency EPS increased 1%. Foreign currency aided EPS by 3%. Reported earnings were $2.18 per share versus 92 cents in the year-ago quarter. Shares of the Zacks Rank #4 (Sell) company have lost 9.1% in the past three months against the industry’s 5% growth. Image Source: Zacks Investment Research Net revenues rose 6.4% to $24.18 billion and surpassed the Zacks Consensus Estimate of $23.87 billion by 1.3%. Organic revenues increased 2.4%, with global convenient foods organic volume up 3% and global beverages organic volume up 2%.PepsiCo’s net revenue growth included a 2.2-percentage-point benefit from foreign exchange translation and a 1.8-percentage-point net benefit from acquisitions and divestitures. Organic revenue growth reflected effective net pricing and a contribution from organic volume growth.Our model predicted year-over-year organic revenue growth of 2.6% for the second quarter, with a 2.5% gain from the price/mix and a 0.1% rise in volume.On a consolidated basis, the reported gross profit rose 5.5% year over year to $13.11 billion. The core gross profit increased 4.7% year over year to $13.12 billion. The reported gross margin contracted 50 bps to 54.2%, whereas the core gross margin fell 80 bps year over year to 54.3%, reflecting the continued impacts of cost pressures and business investments.We anticipated the core gross margin to decline 40 bps year over year to 54.7% in the second quarter. In dollar terms, core gross profit was expected to increase 4.1% year over year. PepsiCo, Inc. price-consensus-eps-surprise-chart | PepsiCo, Inc. Quote PepsiCo’s operating profit surged 125% to $4.02 billion in the second quarter of 2026, while core operating profit increased 4% to $4.07 billion. The sharp reported operating profit increase reflected prior-year impairment charges related to the Rockstar and Be & Cheery brands, lower restructuring charges and a favorable net impact of acquisition and divestiture-related charges and credits.The reported operating margin expanded 875 bps to 16.6%. The core operating margin contracted 40 basis points to 16.8%, as productivity savings and effective net pricing were partly offset by certain operating cost increases.Our model predicted core SG&A expenses of $8.9 billion, which indicated year-over-year growth of 3.3%. As a percentage of revenues, core SG&A expenses were anticipated to be 37.4%, suggesting a 50-bps decline from the prior-year quarter.We expected a core operating margin of 17.4%, implying a 20-bps increase from the year-ago quarter’s actual. PepsiCo Foods North America delivered net revenues of $6.37 billion, down 2% year over year. Organic revenues also declined 2% due to lower effective net pricing. The segment continued to gain volume share in North America, aided by innovation and affordability initiatives. Management noted improvements in household penetration and volume share across the U.S. savory and salty categories.PepsiCo Beverages North America generated net revenues of $7.24 billion, up 7% year over year. Organic revenues grew 1%, while acquisitions, net of divestitures, contributed 6 percentage points to reported revenue growth. However, the organic volume declined 4%, including a 0.5-percentage-point headwind tied to the case pack water business transition to a third-party partner. Functional hydration and zero-sugar offerings remained bright spots.International results were the strongest part of the quarter. International organic revenues increased 7%, marking the 21st consecutive quarter of at least mid-single-digit organic revenue growth.Within the international business, International Beverage (IB) Franchise revenues rose 11% to $1.52 billion, with organic revenues up 9%. The organic volume increased 5% in the segment, which represents more than 60% of global beverage volume. The international convenient foods organic volume increased 4%, which represents 70% of the global convenient foods volume. Europe, Middle East and Africa revenues increased 10% year over year to $4.98 billion, with organic revenues up 6%. Latin America Foods’ revenues rose 15% to $2.94 billion, while organic revenues increased 4%. Asia Pacific Foods’ revenues advanced 12% to $1.12 billion. Organic revenues grew 9%, supported by a 10% organic volume increase, the strongest volume performance among the reported segments. PEP ended second-quarter 2026 with improved liquidity, as cash and cash equivalents of $10.25 billion as of June 13, 2026, increased from $9.16 billion at the end of fiscal 2025. Short-term debt obligations were $10.6 billion, while long-term debt obligations were $42.61 billion.Net cash provided by operating activities was $2.37 billion as of the end of second-quarter 2026 compared with $996 million in the year-ago period. Capital spending totaled $1.27 billion.The company paid out cash dividends of $3.91 billion and repurchased $479 million of shares in the first half of 2026. PepsiCo has reaffirmed its outlook for 2026. The company expects organic revenue growth of 2-4% and net revenue growth of 4-6% on a reported basis.Core constant-currency EPS is anticipated to increase 4-6%, with core EPS growth of 5-7%. Based on current rates, foreign exchange translation is expected to provide a 1-percentage-point benefit to reported net revenue and core earnings growth. Acquisitions, net of divestitures, are expected to contribute 1 percentage point to reported revenue growth. The company expects a core effective tax rate of 22% for 2026.The company expects capital spending to remain below 5% of net revenues, while targeting a free cash flow conversion ratio of at least 80%.PEP has been committed to rewarding its shareholders through dividends and share buybacks. It expects to return total cash of $8.9 billion to shareholders in 2026, including $7.9 billion in dividends and $1 billion in share repurchases. Fomento Economico Mexicano S.A.B. de C.V. FMX, alias FEMSA, is a leading Latin American consumer company with operations spanning retail, beverage bottling and logistics, serving millions of customers across multiple markets. The company currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for FEMSA’s 2026 sales and earnings implies growth of 17.3% and 131%, respectively, from the previous year’s reported numbers. FMX delivered a trailing four-quarter negative earnings surprise of 17%, on average.The Coca-Cola Company KO is the world's largest non-alcoholic beverage company, marketing a broad portfolio of sparkling soft drinks, water, juice, coffee, tea and sports beverages. It currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for Coca-Cola’s 2026 sales and earnings indicates growth of 3% and 8.7%, respectively, from the prior-year reported levels. KO delivered a trailing four-quarter earnings surprise of 4.5%, on average.Ambev S.A. ABEV is a leading beverage company in Latin America, producing, distributing and selling beer, soft drinks and other non-alcoholic beverages across multiple markets in the region. It carries a Zacks Rank #2 at present.The Zacks Consensus Estimate for Ambev’s 2026 sales and earnings implies increases of 16.7% and 16.6%, respectively, from the prior-year reported levels. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CocaCola Company (The) (KO) : Free Stock Analysis Report Fomento Economico Mexicano S.A.B. de C.V. (FMX) : Free Stock Analysis Report PepsiCo, Inc. (PEP) : Free Stock Analysis Report Ambev S.A. (ABEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Mission Produce Inc. AVO posted second-quarter fiscal 2026 results, wherein the bottom line missed the Zacks Consensus Estimate, but the top line surpassed the same. Meanwhile, earnings and revenues declined year over year.The company reported adjusted earnings of 1 cent compared with 12 cents in the year-ago quarter and missed the consensus estimate of 5 cents.Mission Produce, Inc. Price, Consensus and EPS Surprise Mission Produce, Inc. price-consensus-eps-surprise-chart | Mission Produce, Inc. Quote Results benefited from strong avocado volume growth and solid commercial execution in a low-price environment, which helped support customer demand and expand category consumption. However, profitability was pressured by a sharp decline in avocado pricing and a late-quarter mismatch in supply and demand for core fruit sizes that compressed per-unit margins, particularly in April. The quarter also reflected acquisition-related transaction advisory costs tied to the Calavo deal, while management noted pricing and margin conditions improved exiting the period. Revenues of $290.9 million in second-quarter fiscal 2026 declined 24% year over year but surpassed the consensus estimate of $269 million. The decline was due to a 36% decline in average avocado pricing, partially offset by 15% higher avocado volumes.In second-quarter fiscal 2026, the company’s adjusted EBITDA was $7.1 million, down 62.8% from $19.1 million in second-quarter fiscal 2025. Gross profit of $20.5 million declined 27.8% year over year. Gross margin decreased by 50 basis points year over year to 7.0% of revenues.In the Marketing & Distribution segment, gross profit was adversely affected by historically low avocado prices and a supply-demand imbalance for core fruit sizes during April, which further compressed per-unit margins. Gross profit in the International Farming segment also declined, primarily due to lower volumes of blueberry packing and storage services resulting from reduced harvest yields, as well as higher per-unit mango production costs.SG&A of $21.1 million (excluding transaction advisory costs) was essentially unchanged from the prior-year quarter. Transaction advisory costs totaled $6.4 million in the quarter and consisted mainly of third-party legal, due diligence and other fees related to the Calavo acquisition, which closed on May 28, 2026.Avocado operating metrics: 191.5 million pounds sold (up 15% y/y) at an average sales price of $1.29 per pound (down 35.5% y/y from $2.00). Marketing & Distribution: The segment sales were $277.2 million, down 23.5% from $362.5 million a year ago, reflecting a sharp decline in avocado pricing that more than offset higher shipment volumes. The segment posted an operating loss of $3.8 million (including transaction advisory costs) versus an operating income of $7.6 million in the prior-year quarter. Segment adjusted EBITDA was $7.2 million, a 57.1% decline from $16.8 million last year, mainly due to weaker per-unit gross margins.International Farming: The segment sales were $7.7 million, down 4.9% from $8.1 million a year earlier.The segment recorded an operating loss of $3.9 million compared with an operating loss of $1.3 million last year. Segment adjusted EBITDA was a loss of $1.3 million versus a positive $1.5 million in the year-ago quarter, reflecting a $2.8 million deterioration. Management attributed the weaker performance mainly to higher per-unit mango production costs and lower blueberry packaging and storage service volumes.Blueberries: The segment sales were $11.0 million, down 29.9% from $15.7 million a year ago. The decline was mainly due to lower volume sold, partially offset by a higher average selling price per unit.Segment operating income improved to $0.7 million, up 16.7% from $0.6 million last year. Segment adjusted EBITDA rose to $1.2 million, a 50.0% increase from $0.8 million, driven by the stronger per-unit pricing. That benefit was partly offset by lower per-acre yields, which increased per-unit production costs. Cash and cash equivalents were $33 million as of April 30, 2026 (down from $64.8 million as of Oct. 31, 2025). Net cash used in operating activities totaled $21.0 million for the six months ended April 30, 2026, compared with $13.0 million used in the prior-year period. The higher cash outflow primarily reflected weaker profitability in the current year, partly offset by a smaller working-capital build than last year. Capital expenditures were $22.9 million in the quarter versus $28 million a year earlier. The increase in working capital this year was mainly tied to higher trade receivables, driven by seasonal patterns and the timing of sales in the Marketing & Distribution and Blueberries segments. Inventory also rose, reflecting higher volumes in Marketing & Distribution and the build of growing-crop inventory within the International Farming and Blueberries segments.Mission Produce’s board authorized a new share repurchase program on June 3, 2026, allowing the company to buy back up to $100 million of common stock over the next 36 months. The plan replaces the prior program from September 2023, which was set to expire in September 2026, with about $11.2 million still available. No shares were repurchased under the new program through June 8, 2026. Mission Produce completed its acquisition of Calavo Growers on May 28, 2026. The deal adds Calavo’s fresh produce and value-added prepared foods portfolio, strengthens Mission’s year-round avocado supply position in North America, and expands the company into the prepared foods category with potential upside from cost synergies and SG&A savings. For the third quarter of fiscal 2026, Mission Produce expects avocado industry volumes to increase 5-10% year over year. The company also anticipates exportable avocado production from its owned Peru farms of 120-130 million pounds, up from 105 million pounds in the fiscal third quarter of 2025, with sales of that owned production expected to be weighted toward the fiscal fourth quarter.Management also expects pricing to be down about 15% year over year versus the $1.75 per pound average realized in the third quarter of fiscal 2025, citing higher anticipated volumes across U.S. and international markets.Including the newly acquired Calavo business, Mission Produce guided fiscal third-quarter 2026 adjusted EBITDA to $28-$32 million, reflecting a partial-quarter contribution from Calavo, later-timed Peru farming contribution versus last year and lingering margin-compression impacts from the second quarter that continued at the beginning of the third quarter. For the second half of fiscal 2026, adjusted EBITDA is projected at $84-$88 million, supported by a full quarter of Calavo in the fourth quarter of 2025, stabilizing avocado margin dynamics and improved blueberry volumes on better yields. Synergies from Calavo are expected to begin materializing in the fiscal fourth quarter and build thereafter, with related expenses planned to be added back to adjusted EBITDA and adjusted net income alongside quarterly updates. Full-year fiscal 2026 capital expenditures are expected to be approximately $45 million, including planned spending tied to the legacy Calavo business.Shares of this Zacks Rank #3 (Hold) company have lost 24.8% in the last three months against the industry’s growth of 2.3%. Image Source: Zacks Investment Research The Chef's Warehouse, Inc. CHEF, a specialty food distributor serving restaurants, hotels and hospitality customers, carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for The Chef's Warehouse’s current financial-year sales and earnings indicates growth of 8.3% and 24.7%, respectively, from the prior-year reported levels. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average.B&G Foods BGS is a branded packaged-food company that manufactures, markets, and distributes a portfolio of shelf-stable and frozen food products. BGS carries a Zacks Rank #2.The Zacks Consensus Estimate for B&G Foods’ current and next financial-year earnings indicates year-over-year growth of 11.8% and 15.8%, respectively. AmbeV S.A. ABEV is a beverage company that produces and distributes beer, draft beer, soft drinks and other beverages across the Americas. ABEV currently has a Zacks Rank #2.The Zacks Consensus Estimate for Ambev’s 2026 sales and earnings implies growth of 19.2% and 16.7%, respectively, from the previous year’s reported numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report B&G Foods, Inc. (BGS) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Ambev S.A. (ABEV) : Free Stock Analysis Report Mission Produce, Inc. (AVO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ambev (NYSE:ABEV), a Latin American beverage producer, edged up 0.30% on Friday to finish at $3.29, extending the week’s gains. It reported better-than-expected earnings early in the week, and investors are watching how beer demand and an expanded product range can shape its earnings power. Trading volume reached 72.4 million shares, coming in 193% above its three-month average of 24.7 million shares. Ambev IPO'd in 1997 and has grown 631% since going public. The S&P 500 (SNPINDEX:^GSPC) advanced 0.76% to finish Friday at 7,393, while the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 1.71% to close at 26,247. Among beverage and beer industry peers, Anheuser-Busch InBev (NYSE:BUD) closed up 1.03% at $79.89, while Diageo (NYSE:DEO) gained 1.04% to end at $84.30 as investors assessed recent volume trends. Ambev soared by more than 13% this week after strong quarterly results on Tuesday beat expectations. Growth in beer revenues from Central America and the Caribbean offset weaker figures from Brazil and South America. Its no-alcohol beers are also gaining traction in Brazil, which could help it meet changing consumer habits. The upcoming World Cup will drive further demand and give Ambev an opportunity to build on its Q1 momentum. Following the results, Barclays reiterated its “Hold” rating on the stock, but increased its price target from $2.50 to $3.50. Before you buy stock in Ambev, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ambev wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $475,926!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,608!* Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 8, 2026. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc and Diageo Plc. The Motley Fool has a disclosure policy. Stock Market Today, May 8: Ambev Gained 13% This Week on Strong Earnings was originally published by The Motley Fool

Post Holdings, Inc. POST delivered second-quarter fiscal 2026 results, with both the top and bottom lines showing year-over-year growth. However, the top line missed the Zacks Consensus Estimate, while the bottom line surpassed. POST’s adjusted earnings per share increased 37.6% to $1.94 from $1.41 in the prior-year period and surpassed the Zacks Consensus Estimate of $1.64. Post Holdings, Inc. price-consensus-eps-surprise-chart | Post Holdings, Inc. Quote Net sales increased 4.7% year over year to $2,042.9 million from $1,952.1 million in the prior-year period. The increase included a contribution of $152.3 million in net sales from acquisitions during the current-year period. The figure missed the Zacks Consensus Estimate of $2,062 million. Gross profit increased 13.2% year over year to $617.6 million from $545.8 million in the prior-year period. Gross margin also expanded to 30.2% from 28% in the prior-year period. Selling, general and administrative expenses increased 3.6% year over year to $326.2 million. However, SG&A expenses as a percentage of net sales improved slightly to 16% from 16.1%, reflecting relatively stable expense leverage during the quarter. Operating profit climbed 16.3% year over year to $211.9 million from $182.2 million in the prior-year period. Fiscal second-quarter operating profit included a $28.3 million loss on amounts held for sale related to Crystal Farms Dairy Company, which was treated as an adjustment for non-GAAP measures. Post Consumer Brands’ net sales increased 5.8% year over year to $1,044.9 million. The Zacks Consensus Estimate is pegged at $1,059 million. Net sales included a $145 million contribution from 8th Avenue. Excluding 8th Avenue, volumes declined 10%, reflecting a 14.1% decline in pet food volumes and a 3.5% decline in cereal and granola volumes. Segment adjusted EBITDA declined 1.8% to $200.2 million, while beating the Zacks Consensus Estimate of $192 million. Foodservice segment net sales increased 3.2% year over year to $627.4 million, missing the Zacks Consensus Estimate of $633 million. Net sales of Foodservice included a $6.5 million contribution from PPI. Excluding PPI, volumes increased 6.7%, driven by improved customer service levels and higher production in protein-based shakes. Segment adjusted EBITDA increased 47.9% to $142 million, which beat the Zacks Consensus Estimate of $135 million. Net sales in the Refrigerated Retail segment increased 4.8% year over year to $235.3 million, supported by a 5.6% increase in volumes. This beat the Zacks Consensus Estimate of $229 million. Growth was primarily driven by higher side-dish product volumes following the introduction of private-label offerings and the shift of Easter demand into the quarter. Segment adjusted EBITDA rose 17.6% to $40.8 million, missing the Zacks Consensus Estimate of $43 million. Weetabix net sales increased 3.3% year over year to $136.1 million, supported by a foreign currency exchange rate tailwind of approximately 680 basis points. The figure missed the Zacks Consensus Estimate of $141 million. Volumes declined 2.6%, primarily due to product discontinuations and weakness in private-label products, partially offset by growth in protein-based shakes. Segment adjusted EBITDA rose 6.6% to $32.3 million, but missed the Zacks Consensus Estimate of $34 million. During the second quarter of fiscal 2026, Post Holdings repurchased 3.3 million shares for $331 million at an average price of $99.85 per share. During the first six months of fiscal 2026, the company repurchased 7 million shares for $709.9 million at an average price of $100.76. Following the quarter through May 5, 2026, POST repurchased an additional 1.1 million shares for $111.9 million. Management also approved a new $600 million share repurchase authorization effective May 9, 2026. The company ended the quarter with cash and cash equivalents of $269.4 million and long-term debt of $7,629.1 million. Post Holdings maintained its full-year adjusted EBITDA guidance range of $1,550 million to $1,580 million while incorporating new cost pressures and uncertainty related to the conflict in the Middle East. The company expects adjusted EBITDA performance in the remaining two quarters to slightly favor the fourth quarter, driven by seasonality within PCB cereal. Foodservice results are expected to align with the previously indicated $500 million annual run rate. The company also maintained its full-year capital expenditure projection of $350 million to $390 million, with lower spending anticipated in the second half of the fiscal year. This Zacks Rank #2 (Buy) company’s shares have gained 4% in the year-to-date period against the industry’s decline of 1.8%. Image Source: Zacks Investment Research Some ohter top-ranked stocks have been discussed below: The Chef’s Warehouse, Inc. CHEF distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. CHEF currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for CHEF’s current fiscal-year sales and earnings indicates growth of 8.3 and 24.7%, respectively, from the year-ago reported figures. CHEF delivered a trailing four-quarter earnings surprise of 28.9%, on average. Darling Ingredients Inc. DAR develops, produces, and sells sustainable natural ingredients from edible and inedible bio-nutrients in North America, Europe, China, South America, and internationally. DAR currently carries a Zacks Rank #2. The Zacks Consensus Estimate for DAR’s current fiscal-year sales and earnings implies growth of 7.1% and 567.7%, respectively, from the year-ago actuals. DAR delivered a trailing four-quarter negative earnings surprise of 16.1%, on average. Ambev S.A. ABEV engages in the production, distribution, and sale of beer, draft beer, soft drinks, malt and food, and other beverages. ABEV currently carries a Zacks Rank #2. The Zacks Consensus Estimate for ABEV’s current fiscal-year sales and earnings indicates growth of 17.4% and 11.1%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Darling Ingredients Inc. (DAR) : Free Stock Analysis Report The Chefs' Warehouse, Inc. (CHEF) : Free Stock Analysis Report Post Holdings, Inc. (POST) : Free Stock Analysis Report Ambev S.A. (ABEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ambev reported a “solid start” to 2026 with total volumes broadly flat and beer volumes back to low-single-digit growth, net revenue up high-single-digits, and normalized EBITDA rising 10.1% with 60 basis points of margin expansion. In Brazil the company gained market share despite industry softness, driven by a mix shift toward premium and no‑alcohol products (premium volumes +20%+, Corona Cero +70%+), helping Brazil beer NR/hl rise 8.3% from carryover, revenue management and mix. Ambev generated stronger operating cash flow (BRL 3.2bn), is continuing buybacks and new interest‑on‑capital payments, but faces cost pressure (Brazil beer cash COGS/hl +14.6%) with guidance for a 4.5–7.5% COGS increase in 2026, and expects World Cup and expanded digital channels (BEES, Zé Delivery) to support demand. Interested in Ambev S.A.? Here are five stocks we like better. 5 Cheap Dividend Stocks: Which to Buy Now Ambev (NYSE:ABEV) executives pointed to a “solid start” to 2026, highlighting a return to beer volume growth, high single-digit net revenue expansion, and double-digit normalized EBITDA growth despite continued cost headwinds. Speaking on the company’s first-quarter earnings call, CEO Carlos Lisboa said the quarter showed how the company’s strategy is strengthening across its footprint, while CFO Guilherme Fleury emphasized cash generation and disciplined capital allocation, including continued shareholder returns. Lisboa said total volumes were “broadly flat against the toughest comparison base of the year,” while beer volumes returned to growth, up low single-digit. He added that net revenue grew high single-digit, supported by net revenue per hectoliter (NR/hl) growth. → Roblox Stock Slides to New Low as Safety Changes Weigh on Outlook 14 best consumer staples dividend stocks “Even with continued cost pressure, we delivered double digits, EBITDA growth with margin expansion of 60 basis points, while net income grew by a low single digit,” Lisboa said, also pointing to “solid operational cash flow generation” and “continued discipline in returning cash to shareholders.” Fleury provided the financial details, reporting normalized EBITDA of BRL 7.6 billion, with 60 basis points of margin expansion. He said normalized EBITDA grew 10.1%, while normalized net income rose 0.3% to BRL 3.8 billion, translating to normalized EPS of BRL 0.24, up 0.5% year over year. Net financial expenses totaled BRL 1 billion, around BRL 200 million higher than the prior year, “mainly driven by higher carry costs on derivative instruments,” he said. → The Real SpaceX Play: 5 Chip Stocks Powering the IPO Before It Launches 3 Reasons Boston Beer Stock Could Finally Hop Higher In Brazil, Lisboa said the beer industry declined mid-single digit year over year in the quarter, though it improved sequentially versus the fourth quarter of 2025. He attributed the industry softness primarily to cyclical factors affecting consumption occasions, particularly weather, rather than structural demand issues. Within that backdrop, Lisboa said Ambev’s Brazil beer volumes grew 1.2% and the company entered 2026 “from a stronger commercial position,” supported by continued market share progression. He said premium volumes rose more than 20%, led by Stella Artois, Corona, and Original. Balanced choices grew over 70%, with Stella Pure Gold and Michelob ULTRA more than doubling. No-alcohol beer grew low teens, with Corona Cero up more than 70% and Skol Zero Zero gaining traction, reaching double digits of the no-alcohol segment mix by quarter-end, according to Lisboa. → 3 Emerging Markets ETFs to Maximize Exposure to High-Potential Countries He also said the company’s “core plus value” portfolio declined low single digit but performed ahead of the total industry decline and gained market share versus last year, based on the company’s estimates. Beyond Beer grew “in the 20s,” led by Beats, Brutal Fruit, and Flying Fish, which Lisboa described as the newest member of the portfolio. Ambev’s Brazil beer NR/hl increased 8.3% in the quarter. Responding to analyst questions, Lisboa attributed the NR/hl performance to three components: Carryover from the company’s 2025 revenue management agenda, which he described as an “easier comp” given limited carryover from 2024 into 2025. Revenue management actions implemented into 2026. Mix, as above-core continued to grow, contributing to NR/hl. Lisboa said the company aims to keep pricing “broadly in line with inflation over time” while capturing positive mix. On the tax front, he added there was “nothing that was important to highlight during the quarter.” On digital and route-to-market, Lisboa said BEES Marketplace had about 75% of Ambev’s customer base buying through the platform, helping gross merchandise value (GMV) double, supported by continued third-party expansion. He said Zé Delivery represented a mid-single-digit share of Brazil beer volumes, with GMV up high single digit in the quarter, including 16 million orders delivered to 5 million monthly active users. In Brazil non-alcoholic beverages (NAB), Lisboa said volumes declined 3.9% amid a tough comparison base and less favorable prior-year pricing relativity, though he noted relativity and market share improved sequentially. He said the company’s non-sugar portfolio grew mid-teens, led by Guaraná Zero, Pepsi Black, and H2OH!. Despite the volume decline, Lisboa said disciplined execution supported P&L performance, with top-line growth of 1.8% and EBITDA up 16.4%, alongside 400 basis points of margin expansion. In Argentina, Lisboa said the macro environment stabilized versus a year ago, with lower inflation and less FX volatility, but that improvement had not yet translated into a “meaningful recovery in consumption.” He said the beer industry remained soft and Ambev volumes declined low single digit, though sell-out market share rose year over year, supported by “mega brands equity.” Above-core grew high single digit, led by Stella Artois and Michelob ULTRA. Lisboa said the company is focused on disciplined revenue management while investing behind brands, adding that Quilmes and Michelob ULTRA will be key consumer connection platforms as the country builds momentum toward the FIFA World Cup. In the Dominican Republic, Lisboa said total volumes grew high single digit amid an improving consumption environment and healthier category dynamics. Market share remained stable, and Presidente brand health reached all-time highs, he said. In Canada, Lisboa said the beer industry fell mid-single digit, pressured by a weak consumer backdrop and unfavorable weather. Ambev maintained stable share in beer and gained share in beyond beer, he said. Despite a 2% volume decline, Lisboa reported EBITDA grew 6.7% with 160 basis points of margin expansion. Fleury said consolidated cash COGS per hectoliter (excluding marketplace) increased 9% in the quarter, with Brazil beer up 14.6%, reflecting FX and commodities pressure that he expects to “gradually ease starting in the second quarter.” Consolidated cash SG&A rose 4.8%, with efficiencies “mainly from distribution expenses” driven by operational leverage in Brazil beer. Consolidated sales and marketing grew 5.1%, and Fleury noted spending tends to follow the company’s mega platform events calendar, which this year includes the FIFA World Cup in the second quarter. Cash flow from operating activities totaled BRL 3.2 billion, up BRL 2 billion year over year, driven primarily by improved working capital dynamics, including packaging raw material inventory management and improved payables, Fleury said. Cash used in investing activities totaled BRL 2.4 billion, reflecting, among other factors, a BRL 2 billion impact from the deconsolidation of assets previously reported as restricted cash in CAC, he added. On capital returns, Fleury said the company continues executing its ongoing share buyback program announced in October. He also said the board approved the payment of BRL 1.2 billion related to the second tranche of interest on capital (IOC) declared in December 2025, and a new IOC declaration of BRL 700 million to be paid by December 2026. Fleury said Ambev maintained its guidance for Brazil beer cash COGS per hectoliter (excluding marketplace) to increase 4.5% to 7.5% in 2026 and reiterated the company’s ambition to expand consolidated margin over time. Lisboa said 2026 is “shaping up to be the year of socialization,” citing an occasion-driven calendar that includes Carnival and the FIFA World Cup. He said the World Cup historically contributes about 0.3 to 0.4 percentage points to annual industry growth, with the impact typically concentrated in the second and third quarters. He added that the company’s portfolio breadth and digital platforms are expected to play a larger role in activations than in prior cycles. Fleury said the company’s digital ecosystem is more developed versus previous World Cups, pointing to consumer engagement through Zé Delivery and customer engagement through BEES. Closing the call, Lisboa reiterated confidence in beer as a “loved and versatile category” with room to grow and said the company’s three strategic pillars—portfolio/category leadership, digital ecosystem development, and financial discipline—are intended to operate as a reinforcing flywheel. Ambev (NYSE: ABEV) is a Brazilian-based beverage company that produces, distributes and markets a broad portfolio of alcoholic and non-alcoholic drinks. The company's core business centers on brewing and selling beer, alongside a range of soft drinks, bottled water, energy drinks and other malt-based beverages. Headquartered in São Paulo, Ambev operates an integrated value chain that covers manufacturing, packaging, logistics and commercial sales to retail, on-premise and institutional customers. The company traces its origins to the 1999 merger of two historic Brazilian breweries, and later became part of the broader global brewing group through subsequent industry consolidations. The article "Ambev Q1 Earnings Call Highlights" was originally published by MarketBeat.

Archer Daniels Midland Company ADM posted first-quarter 2026 results, wherein the bottom line beat the Zacks Consensus Estimate, but the top line missed the same. Meanwhile, earnings and revenues increased year over year. ADM’s first-quarter results reflected steady underlying performance, with stronger ethanol margins and improved execution in Carbohydrate Solutions and Nutrition helping offset weakness in Ag Services & Oilseeds that was amplified by unfavorable mark-to-market and timing impacts. Revenues were slightly higher year over year, while adjusted profitability improved modestly as risk management and a more constructive biofuels backdrop supported ethanol, and the Nutrition business benefited from stronger Flavors demand and ongoing operational recovery. Adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 66 cents. Also, the figure rose from adjusted earnings of 70 cents per share in the year-ago quarter. On a reported basis, Archer Daniels’ first-quarter earnings were 62 cents per share, up from 61 cents reported in the year-ago quarter. Archer Daniels Midland Company price-consensus-eps-surprise-chart | Archer Daniels Midland Company Quote Revenues increased 1.6% year over year to $20.5 billion but lagged the consensus estimate of $21.1 billion. Segment-wise, revenues for Ag Services & Oilseeds increased 2.1% year over year to $16 billion, while Carbohydrate Solutions revenues edged down 0.5% to $2.56 billion. Nutrition revenues dipped 0.7% to $1.81 billion. Other Business revenues rose 11.6% to $125 million versus $112 million in the year-ago quarter. The Zacks Consensus Estimate for these segments’ revenues was pegged at $16.6 billion, $2.54 billion and $1.83 billion, respectively. The gross profit increased 3.6% year over year to $1.22 billion, while the gross margin stood at 5.9%. Selling, general and administrative expenses rose to $961 million from $932 million in the prior-year quarter. ADM reported total segment operating profit of $764 million, up 2.3% from $747 million in the year-ago quarter. The year reflected a sharp divergence across the company’s three operating segments, with strength in Carbohydrate Solutions and Nutrition offset by a decline in Ag Services & Oilseeds. ADM has a trailing four-quarter return on invested capital of 6.4% on an adjusted basis. The Ag Services & Oilseeds segment’s operating profit fell 34% year over year to $273 million. The year-over-year decline was caused primarily by net negative mark-to-market and timing impacts tied to a strengthening commodity environment following U.S. biofuels policy clarity. The Ag Services subsegment’s operating profit rose 26% year over year to $200 million, supported by higher export activity from North America, including increased soybean and sorghum shipments to China and strong corn exports. The Crushing subsegment’s operating profit swung to a loss of $79 million from a profit of $47 million in the prior-year quarter. ADM attributed the decrease to net negative mark-to-market and timing impacts driven by the strengthening margin environment. Operationally, plant-processed volumes improved, with oilseed tonnage produced up 2% year over year, and soybean meal sales remained strong throughout the quarter. Refined Products and Other operating profit were down 36% from the prior year due to net negative mark-to-market and timing impacts in the current quarter, with the movement similarly tied to the strengthening margin environment. The Carbohydrate Solutions segment posted an operating profit of $356 million, up 48% year over year, primarily reflecting strengthening ethanol margins, aided by effective risk management and policy incentives. Starches and Sweeteners’ operating profit rose 11% to $229 million, driven mainly by increased ethanol margins related to ADM’s corn wet-milling ethanol operations, somewhat offset by lower global liquid sweeteners and starches volumes and margins. Vantage Corn Processors’ operating profit increased to $127 million from $33 million (up $94 million), as the company’s corn dry-milling ethanol operations benefited from stronger ethanol margins, risk management and policy incentives. The Nutrition segment reported operating profit of $135 million, up 42% year over year, reflecting improved performance in both the Human Nutrition and Animal Nutrition subsegments, including foreign exchange gains. Human Nutrition’s operating profit increased 39% to $104 million, driven largely by higher Flavors sales, foreign exchange gains and the continued recovery of the Decatur East plant. Animal Nutrition’s operating profit rose 55% to $31 million, primarily supported by portfolio actions taken over the last year, a focus on higher-margin product lines, ongoing cost optimization and foreign exchange gains. The company ended the quarter with cash and cash equivalents of $591 million, long-term debt, including current maturities, of $7.6 billion, and shareholders’ equity of $35.6 billion. As of March 31, 2026, ADM generated $150 million in cash from operating activities. It paid dividends of $254 million in the reported quarter. ADM raised its full-year 2026 adjusted earnings outlook to approximately $4.15-$4.70 per share from its prior range of $3.60-$4.25. The company said the updated outlook assumes continued progress on priorities and reflects expected improvement primarily in crushing and ethanol, tied to the March 2026 finalization of the 2026 and 2027 renewable volume obligations under the U.S. Renewable Fuels Standard. The company reiterated that external factors remain key swing items, including consumer trends, energy costs, supply chain dislocations, ethanol developments and evolving global trade and tariff conditions. ADM also maintained its capital expenditure expectation of $1.3 to $1.5 billion for 2026. We note that shares of this Zacks Rank #3 (Hold) company have gained 15% in the past three months compared with the industry’s 9.6% growth. Image Source: Zacks Investment Research Post Holdings, Inc. POST operates as a consumer-packaged goods holding company in the United States and internationally. At present, POST holds a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The consensus estimate for Post Holdings’ current fiscal-year sales and earnings implies growth of 2.7% and 0.1%, respectively, from the year-ago figures. Post Holdings delivered a trailing four-quarter earnings surprise of 19.6%, on average. Tyson Foods, Inc. TSN operates as a food company worldwide. It currently has a Zacks Rank #2. Tyson Foods delivered a trailing four-quarter earnings surprise of 16.5%, on average. The Zacks Consensus Estimate for Tyson Foods’ current fiscal-year sales indicates growth of 4.4% from the prior-year reported levels. Ambev S.A. ABEV engages in the production, distribution and sale of beer, draft beer, soft drinks, malt and food, and other beverages. ABEV currently carries a Zacks Rank #2. The Zacks Consensus Estimate for ABEV’s current fiscal-year sales and earnings indicates growth of 14.7% and 5.6%, respectively, from the year-ago figures. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Archer Daniels Midland Company (ADM) : Free Stock Analysis Report Tyson Foods, Inc. (TSN) : Free Stock Analysis Report Post Holdings, Inc. (POST) : Free Stock Analysis Report Ambev S.A. (ABEV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research