Ambev’s fourth-quarter adjusted net profit increased by 7.5% to 5.02 billion reais despite a 3.2% decline in total volumes. The company expects greater volatility and input cost pressures in 2025, predicting higher costs in its Brazil Beer segment. Organic net revenue grew by 4.2% to 27.04 billion reais, indicating growth across most business units.

Brazilian brewer Ambev (ABEV3) reported a notable 7.5% increase in its fourth-quarter adjusted net profit, reaching 5.02 billion reais ($874.63 million) for 2023. Although total volumes saw a decline of 3.2% due to challenging market conditions in Argentina and adverse weather in Brazil, improvements in core earnings contributed to the profit growth. Organic net revenue rose by 4.2% to 27.04 billion reais, reflecting growth across most business units.

Looking ahead to 2025, Ambev anticipates ongoing volatility, with expectations of input cost pressures increasing compared to 2024. The company projects that the cash cost of goods sold per hectoliter in the critical Brazil Beer segment will rise between 5.5% and 8.5%. This volatility reflects broader economic conditions and fluctuating commodity prices, influencing operational strategies.

In summary, Ambev’s fourth-quarter results showcase a solid profit increase despite volume declines, influenced by external conditions. The forecast for 2025 indicates a challenging environment with anticipated cost pressures. The company’s focus on enhancing efficiency aims to mitigate these impacts and support margin expansion, underscoring its adaptive strategies in a volatile market.

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