AmBev has net income of bi R$3,46 in 4th Qtr

The brewery Ambev had net profit of 3.46 billion dollars in the fourth quarter, growth of about 5% on the positive results of a year earlier, boosted by increased revenue and reduced costs. In adjusted terms, the company had net profit of 3.72 billion reais, 17% drop in comparison with the fourth quarter of 2017. The company had net sales of about 16.02 billion reais in the last three months of last year, growth of 6.6 for cent over the end of 2017. This occurred despite the sales in volume have indented 2,5% in the period. The General and administrative expenses fell to 3.9 billion reais, up from 4.19 billion. The cost of goods sold (COGS) was 6.05 billion reais, up 21,3% over the fourth quarter of 2017. In terms adjusted, the indicator rose 14,5%. For 2019, Ambev expects COGS/HL, excluding depreciation and amortization, up 15%, pulled by real devaluation and higher commodity prices. The company showed cash generation as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) adjusted from 7.47 billion reais in the fourth quarter, up 2,5% on a year before. The margin, however, backed down from 48.6 to 46,7%. "The prospect for 2019 is positive, including better macroeconomic fundamentals, and we are confident that we have the right plan to accelerate growth of its Ebitda compared to 2018, despite significant cost growth," said Ambev on balance sheet, adding that is cautious about economic prospects in Argentina.