Ambev S.A. (Ambev (ABEV)) shares were on a tear Tuesday, climbing more than 17% and hitting a fresh 52-week high as investors digested the brewer's first-quarter earnings report. The headline numbers were a bit of a mixed bag—earnings per share of five cents matched expectations, but revenue of $4.266 billion came in below the $4.46 billion analysts were looking for. But the market clearly liked what it saw beneath the surface.
The company pointed to resilient demand for beer and ongoing digital initiatives that are helping it connect with consumers and execute better at the point of sale. "Beer continues to be a beloved and culturally relevant category in our markets, with solid fundamentals and meaningful headroom for growth," Ambev said in its earnings release.
Margins Expand Despite Mixed Volume Trends
The real story this quarter was margin expansion. Gross margin improved 10 basis points on an organic basis to 51.6%, while normalized EBITDA margin jumped 60 basis points to 33.6%. That's a pretty solid showing, especially considering consolidated volumes were broadly flat.
Growth in Central America and the Caribbean, as well as Brazil's beer segment, helped offset declines in Latin America South, Canada, and Brazil's non-alcoholic beverages business. Ambev noted that core segment volumes dipped by a low-single-digit percentage in the quarter, mainly due to weather, but trends improved sequentially compared with the second half of 2025.
Zé Delivery Drives Digital Engagement and Innovation
One of the bright spots was the company's direct-to-consumer platform, Zé Delivery. The app, whose user base is roughly 80% Gen Z and Millennials, is helping Ambev stay ahead of trends and speed up innovation. During the quarter, it served as a key testing ground for the launch of Skol Zero Zero, with nearly 90% of users reporting neutral or improved brand perception after trying the product.
Zé Delivery also saw modest growth in monthly active users and stronger gains in gross merchandise value (GMV), reinforcing its role as a major convenience platform in Brazil. The company expects its digital ecosystem—including Zé Delivery and its B2B platform BEES—to be a big driver during the upcoming FIFA World Cup, helping to boost demand and improve execution.
BEES, meanwhile, continues to enhance commercial execution at the point of sale by improving insights, assortment, and revenue management for retailers.
Stock Hits 52-Week High
At the time of publication Tuesday, Ambev shares were up 17.07% at $3.39, trading at a new 52-week high. Investors clearly see the margin story and digital momentum as more important than the slight revenue miss. With the World Cup on the horizon and digital platforms gaining traction, Ambev is positioning itself for what could be a strong year ahead.
