AmBev sells more during the World Cup and adjusted profit rises to R$2,35 bi in 2nd tri

Ambev had adjusted net profit of 2.35 billion dollars in the second quarter, up 9,7% compared to same period of 2017, pulled by two-digit increase in net sales, with higher sales of beer during the World Cup without adjustments, the profit was 2.424 billion reais, up 14,1%, said the drinks giant said Thursday. The operating result measured by earnings before interest, taxes, depreciation and amortization (Ebitda) climbed to 15% adjusted 4.53 billion reais, with an Ebitda margin of 39,4%, up 1.8 percentage point over a year before. Net revenues grew 12,1% in twelve months to 11.5 billion reais, with 2,6% advance in volume sold and 8,6% in net revenue/HL (ROL/hl). In Brazil, the revenue growth was 9,3%, with the growing volume and revenue/HL 1,5% moving 7,7%. With the exception of Canada, with 2% drop in net revenues, Ambev has registered increase in revenue in all regions where the company operates. In Central America and Caribbean net sales rose 16,2%, while in Latin America South the advance was of 25,6%. In Brazil, sales of beer grew back after a weak start to the year. "Despite the truckers ' strike, we can deliver a 1,7% increase in the volume, in part supported by the 2018 Fifa World Cup," said Ambev.As sales of non-alcoholic beverages in the country rose in the quarter, 1% with 9,2% in advance revenue per hectolitre, and expansion of 10,2% in net revenues. The company said it remains confident about the operations in Brazil, although the scenario in the country is still "challenging and volatile". The cost of products sold by Ambev in all its markets climbed 8,4% in the quarter, impacted by inflation in Argentina and higher commodity prices, partially offset by a more favourable exchange rate in Brazil and in other countries of the South the Latin America. The World Cup was also largely responsible for the increase in selling expenses, General and administrative, which advanced 11,3%, due to the concentration of marketing expenses related to the sporting event. The net financial result was negative at 1.05 billion reais, 50% greater than a year earlier, due to higher losses on derivative instruments and non-derivative. Operating cash flow rose 45,6% to 3.52 billion dollars in the second quarter, with investments of 805 million reais, up 7,2%. The company closed June with net position of box of 5.77 billion reais and consolidated debt of 4.86 billion reais.