Ambev S.A. shares climbed 1.42% to 16.45 reais on the B3 exchange Thursday, approaching a one-year high of 17.04 reais. The stock has been rallying since the brewer reported first-quarter earnings that highlighted strong beer sales in Brazil and stable margins.
Strong First-Quarter Performance
Ambev's first-quarter organic net revenue increased 8.1%, while normalized EBITDA rose 10.1% to 7.56 billion reais. The Brazil Beer unit posted a 1.2% volume increase, with net revenue per hectoliter up 8.3%. Premium and super-premium brands such as Stella Artois, Corona, and Original led the growth, each showing volume gains in the low twenties.
CEO Carlos Lisboa described the start of 2026 as "solid," citing higher beer volumes, double-digit EBITDA gains, and wider margins. Operating cash flow improved to 3.16 billion reais, and the board approved a 700 million-real interest-on-capital payout.
Market Context and Outlook
The Ibovespa index edged up 0.14% to 177,603.69, with Ambev outperforming. The stock is trading more like a test of management's grip on pricing and costs rather than a slow consumer staple. However, risks remain. Ambev maintained its Brazil Beer COGS per hectoliter guidance of a 4.5%-7.5% rise for 2026, citing a dynamic global geopolitical environment. Higher net finance costs from foreign-exchange and commodity hedges, along with potential bad weather or weaker premium demand, could pressure margins.
UBS kept its sell rating on Ambev but raised its ADR target to $2.90 from $2.65. Benzinga data shows the ADR consensus target at $3.01, below Thursday's share price of $3.27.
Leadership Change
In a recent filing, Ambev announced that Fernando Maffessoni will replace Paulo André Zagman as logistics vice-president, effective August 1. Maffessoni currently serves as logistics vice-president for the Middle Americas Zone at Anheuser-Busch InBev.
Anheuser-Busch InBev, which controls Ambev, posted its first increase in drinks sold since 2023 in the first quarter, according to Reuters. AB InBev CEO Michel Doukeris commented, "Cheers to beer." Analysts noted the company's focus on top global brands.
Ambev's U.S. ADR traded at $3.27 in late New York action, up 4 cents. The stock continues to benefit from beer volume growth, premium mix, and cash returns.