By Jeffrey T. Lewis

 

SÃO PAULO--Ambev SA's profit jumped in the first quarter from a year earlier as sales increased in most of its markets and as the company adapted to remaining headwinds from the Covid-19 pandemic.

The São Paulo-based company's net income increased to 2.7 billion reais, equivalent to $504 million, from 1.2 billion reais a year earlier, Ambev said Thursday. Net revenue reached 16.6 billion reais from 12.6 billion reais, and normalized earnings before interest, taxes, depreciation and amortization rose to 5.3 billion reais from 4.2 billion reais. Sales volumes increased almost 12% to 43.5 million hectoliters.

Ambev is controlled by Anheuser-Busch InBev SA, the world's biggest beer producer, and brews and markets brands including Budweiser, Brahma and Corona. Brazil is Ambev's biggest market, but the company also operates in other countries in the Americas including Canada, Argentina and Chile.

With sales volumes increasing, the company said it remains on a steady recovery path in 2021 despite the challenges arising from the pandemic. Margins in Brazil will continue to face pressure because of the volatile currency and high commodities prices, and from higher sales costs, according to Ambev.

Net revenue from Brazil rose to 8.2 billion reais, from 6.5 billion reais a year earlier, and sales volume increased 12.1% to 28 million hectoliters.

 

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

May 06, 2021 06:57 ET (10:57 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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