Shares of Ambev SA (ADR) (NYSE:ABEV) ended Thursday session in green amid volatile trading. The shares closed up +0.09 points or 1.53% at $5.97 with 12.56 million shares getting traded. Post opening the session at $5.91, the shares hit an intraday low of $5.85 and an intraday high of $5.98 and the price vacillated in this range throughout the day. The company has a market cap of $92.42 billion and the numbers of outstanding shares have been calculated to be 15.70 billion shares.
Ambev SA (ADR) (ABEV) on July 29, 2016 announced its results for the 2016 second quarter. The following operating and financial information, unless otherwise indicated, is presented in nominal Reais and prepared according to International Financial Reporting Standards (IFRS), and should be read together with our quarterly financial information for the six-month period ended June 30, 2016 filed with the CVM and submitted to the SEC
Operating and Financial Highlights
Top line performance: Net revenue (NR) was up 3.2% in the quarter, explained by growth in all of our operations (Brazil +1.7%, CAC +19.9%, LAS +2.6% and Canada +1.6%). Volumes were down 6.7% mainly driven by a decline in Brazil and Argentina as economic and political volatility in these countries continued to put pressure on beverage consumption. This decline was more than offset by a solid net revenue per hectoliter (NR/hl) increase of 10.6%, due to our revenue management initiatives and premium mix in most of the countries we operate.
Cost of Goods Sold (COGS): Our COGS increased by 0.6% while, on a per hectoliter basis, the increase was 7.8% mainly driven by inflationary pressures and unfavorable currency movements, partly offset, among other factors, by FX and commodity hedges, the growth of 300ml returnable glass bottles and the benefit of procurement savings.
Selling, General & Administrative (SG&A) expenses: SG&A (excluding depreciation and amortization) was up 7.8%, below our weighted average inflation (around 9.3%), mainly due to efficiency gains in sales & marketing and cost savings in administrative expenses, while distribution expenses grew in line with inflation.
EBITDA, Gross margin and EBITDA margin: Normalized EBITDA reached R$ 4,204.6 million (+1.8%) in 2Q16 with gross margin expansion of 100bps and EBITDA margin compression of 60bps.
Normalized Net Profit and EPS: Normalized Net Profit was R$ 2,194.7 million (-22.4%) in the quarter due to a higher net finance expense mainly driven by (i) higher carry cost of our COGS hedges, (ii) mark to market losses of CAPEX hedges, (iii) a non cash impact driven by accretion expense related to our investment in Dominican Republic (around R$ 150 million in the quarter) and (iv) a non cash impact due to foreign exchange translation losses on intercompany loans (around R$ 90 million in the quarter). Effective tax rate was 9.4% versus 6.1% last year. Normalized EPS was R$ 0.13 in 2Q16.
Operating Cash Generation and CAPEX: In the quarter, cash generated from operations was R$ 2.5 billion while CAPEX reached R$ 1.1 billion. Year to date, we generated R$ 4.7 billion in cash from operations while CAPEX reached R$ 1.8 billion. In Brazil, CAPEX year to date is R$ 930 million.
Shares of The Coca-Cola Co (NYSE:KO) ended Thursday session in green amid volatile trading. The shares closed up +0.25 points or 0.59% at $42.36 with 10.24 million shares getting traded. Post opening the session at $42.01, the shares hit an intraday low of $41.88 and an intraday high of $42.39 and the price vacillated in this range throughout the day. The company has a market cap of $178.97 billion and the numbers of outstanding shares have been calculated to be 4.32 billion shares.
On September 13, 2016 The Coca-Cola Company’s global dynamic digital magazine – is sending two millennials on a cross-country exploration of America called JourneyxJourney. The new brand publishing initiative aims to discover and capture content about how the 130 year-old Company and its brands are deeply linked to local communities across America and to the cultural fabric of the United States. Content will be published for audiences in real-time across the Company’s Instagram, Snapchat, Facebook and Twitter social channels.
The road-trip begins in Atlanta, hometown of The Coca-Cola Company, and continues for 21 days, visiting sites ranging from national parks and historic landmarks to restaurants and ballparks, across the United States, ending in Los Angeles. The JourneyxJourney storytellers will connect and co-create content for millennials, exploring the passions ingrained in the Company’s DNA – such as innovation, food, sports, music and culture.
“Through Coca-Cola Journey, we’ve been able to identify and share stories about the incredible people and communities who have shaped our Company’s and brands’ place in American history,” said Doug Busk, Group Director, Social & Digital Communications, The Coca-Cola Company. “This road trip is an opportunity to bring the platform to these communities live, revisiting some of our favorite stories and creating new content in real-time, allowing us to engage Journey’s readers across multiple platforms in an entirely new way.”
JourneyxJourney marks the first trip in the Coca-Cola Journey “Mobile Brand Publishing Unit,” which is equipped with production gear, cameras, filming drones and editing equipment. The two JourneyxJourney storytellers will be driving alongside the “Mobile Brand Publishing Unit” in a 2017 Ford Escape, courtesy of Ford.