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Ambev S.A. (ABEV) Stock Trends Up Following Highly Promising Earnings Call for Q4 2020

Ambev S.A. (ABEV) stock prices were up 10.3943% shortly after the market opened on May 6th, 2021, bringing the price per share up to USD$3.08.

Strong End to Fiscal Year 2020


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Brahma Duplo Malte was the undisputed flagship product in Brazil, as per reports for the fourth quarter of the fiscal year 2020. The company’s Beats franchise revamp with GT and Zodiac was highly successful, thanks to a combination of the innovative development process, stellar product offerings, and a disruptive marketing launch.

Primed for Successful 2021

After a very successful Q3 2020, the fourth quarter saw the company building on the commercial momentum to finish the year strong. Not only ensuring a good end to the year, but the success of ABEV’s commercial strategy also positioned the company optimally for its foray into the new fiscal year 2021. Beer volumes continued to grow, indicating year-over-year increases in seven out of the company’s top 10 markets. The leaders of this growth were Brazil, Chile, Guatemala, and Paraguay, which all showed growth of at least 10%.

Performance Improving Across Global Markets

Despite the global Covid-19 pandemic resulting in restrictions on social gatherings and events, beer volumes in the Dominican Republic have been recovering impressively. This and the growth in the Canadian market are examples of the success of the company’s strategy to strengthen brand equity and product portfolio development to secure market shares in key markets. Brazil, too, saw beer volumes increase, in this case by 12%, despite supply chain constraints, lower government stimulus, and the rollout of price increases.

Market Segment Leader

ABEV has enjoyed outperforming the total industry, being one of the two top leaders in the underdeveloped core plus segment. Brand performance in the core segment stabilized after years of volume decline, largely in part to the expansion of 300ml returnable glass bottles. The company’s product portfolio has also recently been expanded with the launch of two regional brands, Hero beer in Poe and Esmera in Goias.

Adaptability during Pandemic

ABEV reported strong net revenue per hectoliter as a result of the successful implementation of the company’s price strategy. Built around a more flexible approach, innovative performance, and revenue management initiatives, which included occasion-based promotional activity, the strategy proved very successful. With services such as Ze Delivery in Brazil, which offers 35-minute deliveries for consumers’ favorite, cold beverages, the company has strived to quickly respond to customer needs and solve their pain points.

Future Outlook for ABEV

The company has reported stellar financials during a pandemic context that has seen the industry’s across economies be devastated. Despite unavoidable setbacks, ABEV has coped well over the past year and adapted accordingly. Current and potential investors are hopeful for a continued trajectory of growth that will lead to significant and sustained increases in shareholder value.

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