Ambev S.A. (NYSE:ABEV) stock fell in Thursday's premarket trading after the Brazilian brewer reported mixed third-quarter 2026 results. Revenue beat Wall Street estimates, but reported profit declined, leaving investors to weigh the good against the not-so-good.
The Brazilian beverage company, controlled by Anheuser-Busch InBev SA/NV (NYSE:BUD), produces and distributes beer brands including Skol, Brahma and Antarctica, along with soft drinks and other nonalcoholic beverages.
Ambev reported adjusted earnings of 5 cents per American depositary share, in line with analysts' expectations. Revenue of $4.201 billion exceeded the consensus estimate of $4.090 billion.
Revenue Growth, Profit Decline
Net revenue rose 3.6% year over year to 21.59 billion Brazilian reais, representing 7.6% organic growth.
GAAP earnings per share fell 9.5% to 0.28 real, while normalized earnings per share increased 15.4% to 0.28 real.
Reported profit declined 10.2% to 4.37 billion reais. However, normalized profit rose 14.3% to 4.39 billion reais.
Normalized EBITDA increased 8.9% organically to 7.27 billion reais, while the normalized EBITDA margin expanded 40 basis points organically to 33.7%.
Organic sales volumes rose 0.8%, while gross margin improved 60 basis points organically. Cash cost of goods sold per hectoliter, excluding marketplace operations, increased 6.5%.
CEO Carlos Lisboa said the company maintained its first-half momentum, supported by higher volumes, revenue growth, improved profitability and disciplined spending.
Brazil Beer and Premium Brands Drive Growth
Brazil Beer revenue increased 4.8% organically, supported by 0.5% volume growth. Normalized EBITDA rose 1%.
Brazil's nonalcoholic beverage business posted 6.3% revenue growth and a 3.6% increase in volumes.
Latin America South delivered 21.4% organic revenue growth, while normalized EBITDA surged 41.5%.
Premium beer volumes grew at a mid-teens rate, while no-alcohol beer volumes increased at a low-30% rate.
Ambev's digital platforms also expanded. BEES Marketplace gross merchandise value rose about 57%, while Zé Delivery recorded 16% growth.
Cash Flow, Buyback and 2027 Outlook
Operating cash flow increased 11% to 7.68 billion reais.
The board authorized a share repurchase program covering up to 190 million shares.
Meanwhile, hyperinflation accounting in Argentina reduced reported profit by 192.2 million reais.
Ambev maintained its forecast for Brazil Beer cash cost per hectoliter growth of 4.5% to 7.5%. The company also said it had fully hedged its Brazilian real-to-U.S. dollar exposure for 2027.
ABEV Price Action: Ambev shares were down 2.52% at $2.71 during premarket trading on Thursday, according to market data.
