São Paulo, August 6, 2026 — Ambev's second-quarter results revealed a substantial improvement in cash generation, though the market's reaction was muted. The brewer's operating cash flow surged 54.5% to R$4.71 billion, representing 73.9% of normalized EBITDA, up from 49.6% in the same period last year. This 24.3-percentage-point rise in cash conversion underscores the company's enhanced ability to turn earnings into cash, a key metric for investors focused on capital returns.
The stronger cash performance is particularly significant given Ambev's robust balance sheet. As of June 30, the company held R$15.4 billion in net cash, equivalent to roughly 6.2% of its market capitalization on B3. This financial flexibility supports continued shareholder distributions, including dividends and share buybacks. By July 30, Ambev had already distributed approximately R$5.9 billion to shareholders and completed nearly 95% of its buyback program. Additionally, the board authorized around R$1.1 billion in new interest on capital.
Profit growth in the quarter was also bolstered by a sharp reduction in net finance costs. Net finance expenses improved by R$487.9 million year-over-year, accounting for roughly 71% of the R$684.1 million increase in reported profit. This below-the-line boost, combined with solid operational performance, drove normalized profit up 23.3% to R$3.49 billion.
Operationally, Ambev delivered strong organic growth. Net revenue increased 6.1% organically to R$20.15 billion, while normalized EBITDA rose 8.9% organically to R$6.38 billion. The normalized EBITDA margin expanded by 80 basis points to 31.6%. Volume grew 1.4% organically, with beer volumes leading the way. CEO Carlos Lisboa attributed the performance to “consistent execution of our growth strategy,” which translated into another quarter of beer volume growth and solid top and bottom-line results.
Brazil Beer was the standout segment, with volume up 5.0%, EBITDA increasing 12.8%, and margin widening by 110 basis points. The Brazil non-alcoholic beverages division posted a 13.8% EBITDA increase despite a 4.4% volume decline, reflecting effective pricing and cost control. Central America and Caribbean saw volume up 5.4% and EBITDA up 4.9%, though margins contracted by 90 basis points. Latin America South and Canada recorded more modest growth, with mixed margin trends.
Market reaction was mixed. On B3, Ambev shares slipped 0.6% to R$15.74, while the NYSE-listed ADR rose 0.3% to $3.04. The divergent moves suggest investors are weighing the strong cash flow against ongoing challenges, including rising cost pressures and regional headwinds. Brazil Beer projects cash cost of goods sold per hectoliter to climb 4.5% to 7.5% this year, while Canadian demand remains weak and Bolivia faces road blockades. Hyperinflation accounting continues in Argentina.
Analyst coverage remains cautious. The company's investor-relations list includes 18 analysts, with 4 buys, 11 holds, and 3 sells, but no consensus target. A smaller group of three analysts tracked by Google Finance offers an average target of $3.20, implying about 5.3% upside from the ADR's current level. Estimates range from $2.90 to $3.50, reflecting limited conviction in a near-term rerating.
Compared with global peers, Ambev trades at a price-to-earnings ratio of roughly 20.7 times, about 13% higher than AB InBev's 18.3 times and 11% below Heineken's 23.2 times. Its dividend yield of 4.0% is the highest among the three, supported by the strong cash conversion and balance sheet.
Looking ahead, investors will watch for the next quarterly results on October 29. Prior to that, Ambev is scheduled to make a R$1.9 billion interest-on-capital payment on October 6. Market participants will also monitor whether cash conversion can sustain above 70%, a key indicator of the company's ability to continue rewarding shareholders.