Shares of Ambev SA (ADR) (NYSE:ABEV) ended Tuesday session in green amid volatile trading. The shares closed up +0.04 points or 0.68% at $5.95 with 8.34 million shares getting traded. Post opening the session at $5.97, the shares hit an intraday low of $5.92 and an intraday high of $5.99 and the price vacillated in this range throughout the day. The company has a market cap of $92.89 billion and the numbers of outstanding shares have been calculated to be 15.70 billion shares.
Ambev SA (ADR) (ABEV) on July 29, 2016 announced its results for the 2016 second quarter.
Operating and Financial Highlights
Top line performance: Net revenue (NR) was up 3.2% in the quarter, explained by growth in all of our operations (Brazil +1.7%, CAC +19.9%, LAS +2.6% and Canada +1.6%). Volumes were down 6.7% mainly driven by a decline in Brazil and Argentina as economic and political volatility in these countries continued to put pressure on beverage consumption. This decline was more than offset by a solid net revenue per hectoliter (NR/hl) increase of 10.6%, due to our revenue management initiatives and premium mix in most of the countries we operate.
Cost of Goods Sold (COGS): Our COGS increased by 0.6% while, on a per hectoliter basis, the increase was 7.8% mainly driven by inflationary pressures and unfavorable currency movements, partly offset, among other factors, by FX and commodity hedges, the growth of 300ml returnable glass bottles and the benefit of procurement savings.
Selling, General & Administrative (SG&A) expenses: SG&A (excluding depreciation and amortization) was up 7.8%, below our weighted average inflation (around 9.3%), mainly due to efficiency gains in sales & marketing and cost savings in administrative expenses, while distribution expenses grew in line with inflation.
EBITDA, Gross margin and EBITDA margin: Normalized EBITDA reached R$ 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.
Shares of The Coca-Cola Co (NYSE:KO) ended Tuesday session in green amid volatile trading. The shares closed up +0.24 points or 0.57% at $42.34 with 8.41 million shares getting traded. Post opening the session at $42.31, the shares hit an intraday low of $42.24 and an intraday high of $42.53 and the price vacillated in this range throughout the day. The company has a market cap of $182.57 billion and the numbers of outstanding shares have been calculated to be 4.32 billion shares.
On September 2, 2016 For the first time in nearly 40 years, The Coca-Cola Company’s popular citrus-flavored soft drink brand, Mello Yello, will appear on a NHRA Funny Car. To celebrate Funny Car’s half-century of racing, Mello Yello is partnering with Kalitta Motorsports to co-brand the team’s DHL-sponsored Toyota Camry Funny Car at the U.S. Nationals held Labor Day weekend in Indianapolis, Indiana. The one-time custom-wrapped car will be driven by the reigning NHRA Mello Yello Drag Racing Series Funny Car Champion, Del Worsham.
“We’ve been steadfast supporters of NHRA’s Funny Car racing, and we wanted to do something special to celebrate its momentous 50th anniversary,” says Bobby Oliver, director, sparkling citrus brands, Coca-Cola North America. “When the Kalitta team takes to the track on Labor Day weekend, we’ll all be cheering for a great performance from the DHL/Mello Yello car.”
The NHRA is the largest motorsports sanctioning body in the world, and The Coca-Cola Company has been a proud sponsor of the NHRA for 15 years.
“We are thrilled to see Mello Yello and The Coca-Cola Company take this step to race a DHL/Mello Yello Funny Car at the historic U.S. Nationals,” said NHRA President, Peter Clifford. “The car gets your attention immediately and to have Mello Yello on the racetrack this week with the defending Funny Car champion Del Worsham makes it even better.”