Brazilian brewer Ambev posted a net attributable profit of 1,091 million reais (US $ 193 million) at the end of the first quarter of the year, 59% less than the same period last year, according to a statement.
The company highlights that the Covid-19 began to impact its operations in mid-March, which led to “significant changes” in its market dynamics, both domestically and internationally. At the same time, the company registered an increase in sales via electronic commerce.
Ambev’s gross operating profit (Ebitda) reached 4,232.5 million reais (US $ 751 million) between January and March, 17.3% less; while its turnover fell 0.3%, with 12,602 million reais (US $ 2,236 million).
Beer sales volume decreased 11.5% in the first three months of the year, while non-alcoholic beverages decreased 1.2%. In international markets, Ambev increased its sales volume in South America and Canada, with 6.4% and 3.1%, respectively; while in Central America it registered a 12.9% drop.
The company claims that while the future impact of Covid-19 on its results is still uncertain, it expects second-quarter results for the year to be “materially worse” than first-quarter results. The company highlights that this has become evident when observing the 27% drop in volumes in April, which will also affect its profitability.