Brazil's Ambev reports lower recurring net profit on higher costs

SAO PAULO, Feb 28 (Reuters) - Ambev SA, the Latin American unit of Anheuser Busch InBev, reported a lower recurring net profit on Thursday, as higher costs offset higher revenue.

Fourth-quarter recurring net income was 3.724 billion reais ($999 million), Latin America's largest beverages firm said in a statement, down 17.3 percent from a year earlier.

Before one-off items, net income rose 5 percent.

However, the cost of goods sold rose by 21.3 percent, to 6.05 billion reais which Ambev said was the result of inflationary pressure in Argentina and higher commodity prices.

The brewer said its cost of goods sold per hectoliter is likely to rise further in Brazil, forecasting an increase of 15 percent for 2019 due to currency depreciation and higher commodity prices.

($1 = 3.7285 reais)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More