Ambev intends to keep beer prices in the second half of 2014

SÃO PAULO-Ambev, Brazil's largest liquor manufacturer intends to keep prices of beers in the second half of 2014, if the tax burden not sector grow, stated the Vice President financial and investor relations officer of Ambev, Nelson Jamel, yesterday (31), during a teleconference about the results of the second quarter of this year, held with journalists.
"In previous years, we recorded an increase in the prices of beer above inflation, due to the transfer of federal taxes. As this is not happening in 2014, we expect that the values are maintained, "said Jamel. However, the probability of Ambev's plans do not materialize is high, because the Government should raise the taxation sector in September this year, after delay in three months the readjust-initially scheduled for June.
At the time, the industry has managed to slow down the action by reinforcing the negative impacts generated by a rising prices, as a drop in consumption and investments. Ambev itself launched two campaigns during the first half of 2014 to convince the owners of bars not to raise prices in the summer and at the World Cup.
"We have mobilized more than half a million owners of bars and restaurants not to raise the prices. Between the months of January and June, the increase of the values of the beers was below the general inflation. While the General index stood at 3.8%, inflation of beers grew 3%, according to the IBGE [Brazilian Institute of geography and statistics], "said Jamel.
According to the Executive, the company remains optimistic about the rest of this year. Ambev finished the second quarter of 2014 with a 16% increase in adjusted net profit compared with the same period in 2013, to $ 2.22 billion in the consolidated results. Already in the year, profit grew 12.5%, to $ 4.82 billion.
Between April and June, net revenues rose 9.2 percent compared with the same months of 2013, to $ 8.17 billion, while the six-month period this advancement reached 13.1%, totaling R $ 17.2 billion. The sales volume in the second quarter grew 4.9 percent to 39.3 million hectolitres. In the first half, the high was 5.9%, to 82.2 million hectolitres.
Considering only the Brazil, Ambev's net revenue grew by 11.3%, to $ 5.25 billion, during the second quarter. In the first half, the increase stood at 15.3%, totaling r $ 11.1 billion. Between January and June, the volume grew 7.6% to 27.4 million hectolitres compared to the same period in 2013.