By Brazil Stock Guide – Ambev (B3: ABEV3; NYSE: ABEV) posted a 24.5% increase in second-quarter net income, helped by stronger beer sales in Brazil and lower financial expenses.
Net income reached R$3.47 billion, while adjusted profit rose 23.3% to R$3.49 billion. Net revenue totaled R$20.15 billion, nearly unchanged on a reported basis but up 6.1% organically. Adjusted EBITDA rose 8.9% organically to R$6.38 billion, with the margin expanding 80 basis points to 31.6%.
“The consistent execution of our growth strategy resulted in another quarter of beer volume growth, with solid net revenue and adjusted EBITDA performance,” CEO Carlos Lisboa said.
World Cup Lifts Brazilian Beer Sales
The main highlight was Ambev’s Brazilian beer division, where volumes grew 5%, outperforming the broader market, according to company estimates. Revenue rose 8.9% to R$9.79 billion, while adjusted EBITDA increased 12.8% organically to R$3.28 billion.
Ambev attributed part of the performance to additional demand generated by the FIFA World Cup and continued growth in higher-value brands. Premium beer volumes in Brazil increased by about 25%. Michelob Ultra more than tripled its volumes, Stella Pure Gold doubled, and alcohol-free beer sales grew by more than 30%.
World Cup activations also pushed expenses higher. Group selling, marketing and distribution costs increased as Ambev invested more heavily in its brands during the tournament. Still, pricing, a more profitable sales mix and tighter cost controls allowed the brewer to expand margins.
Stronger Cash Flow Supports Payouts
Operating cash flow rose 54.5% to R$4.71 billion, reflecting EBITDA growth and improved working-capital dynamics. Ambev said it has returned approximately R$5.9 billion to shareholders so far this year, mainly through share buybacks and interest on equity, a tax-deductible form of shareholder distribution commonly used in Brazil.
The board approved a new interest-on-equity payment of about R$1.1 billion, before withholding taxes, to be distributed by December. It also confirmed that the final R$1.9 billion installment of the payout declared in December 2025 will be paid on October 6.
Ambev maintained its 2026 guidance. The brewer expects cash costs per hectoliter in its Brazilian beer operation to increase between 4.5% and 7.5%, excluding depreciation, amortization and third-party products sold through its marketplace.
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