|By PR Newswire||
|February 27, 2013 02:07 AM EST||
SAO PAULO, Feb. 27, 2013 /PRNewswire/ -- Companhia de Bebidas das AmFicas – Ambev [BOVESPA: AMBV4, AMBV3; NYSE: ABV, ABVc] announces today its results for the fourth quarter and full year 2012 results. 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 financial information for the twelve-month period ended December 31, 2012 filed with the CVM and submitted to the SEC.
Operating and Financial Highlights
Top line performance: Net revenues were up 13.7% in the quarter, leading to 12.4% better top line results for FY 2012, which represents an improvement versus 2011, when top line grew 9.9%. Likewise, total volumes were above last year's performance (+2.0% for FY 2012, up from +0.8% in 2011) while also resuming growth in the short-term (+1.7% during Q4 2012) thanks primarily to a quick volume recovery in our Brazilian operations following our Q3 2012 price increases. Net revenue per hectoliter (NR/Hl) ended the year up 11.5% as compared to Q4 2011 (+10.0% in FY 2012) given better pricing performance in Brazil, but also in LAS and Canada, helping offset low-single digit negative volumes in these two international operations. Meanwhile, HILA-ex wrapped up its game-changing year with the acquisition of Cerveceria Nacional Dominicana by also delivering 7.7% organic top line growth for the year.
Cost of Goods Sold (COGS): COGS increased 13.4% in Q4 2012 and 10.2% for the year, whereas on a per hectoliter basis, costs grew 11.1% and 7.9%, respectively. In the fourth quarter we continued to suffer from greater barley, aluminum and sugar costs, as well as negative package mix, while currency hedges were less of a tailwind. In addition, increased industrial depreciation resulting from capital expenditures in Brazil was once again a relevant factor. Accordingly, COGS/Hl (excluding depreciation) rose by 9.8% in Q4 2012 and 7.1% in FY 2012, which was in line with the average inflation in the countries where we operate.
Selling, General & Administrative (SG&A) expenses: SG&A (excluding depreciation and amortization) growth decelerated as compared to the first three quarters of the year, and grew 7.7% in the quarter (+13.0% for the year). Q4 2012 performance was positively impacted by lower administrative expenses (mainly bonus accruals due to a favorable comparison with Q4 2011) primarily in Brazil, combined with lower commercial spend in Canada versus prior quarters. On the other hand, we continued to witness labor-related inflationary pressures on our distribution expenses in Argentina and Brazil, while we also decided to continue investing behind our brands to support our commercial initiatives during peak season in Brazil and LAS.
EBITDA, Gross margin and EBITDA margin: Normalized EBITDA grew 15.7% in the quarter, reaching R$ 5,511.6 million. As a result, we delivered R$ 15,679.0 million of Normalized EBITDA in FY 2012, which represents a 13.6% improvement against FY 2011. EBITDA performance in the quarter was mostly driven by Brazil and LAS' double-digit, top line-led growth, though Canada managed to deliver positive EBITDA growth despite negative volumes, and HILA contributed with R$ 117.7 million of EBITDA (R$ 204.9 million for FY 2012 as compared to -R$ 24.5 million during 2011). Moreover, our strong finish to the year allowed us to achieve expansion in both Gross and EBITDA margins for the quarter (+10 bps and +90 bps, respectively) and for the year (+60 bps and +50 bps, respectively).
Operating Cash generation and Profit: Cash generated from our operations in Q4 2012 rose 27.8% versus the same period last year, totaling R$ 7,401.4 million (R$ 15,774.2 for the year, which was 14.4% higher than FY 2011). In terms of profits, through the combination of the aforementioned EBITDA growth and a lower effective tax rate, our Normalized Profit in the quarter reached R$ 3,734.4 million and Normalized Earnings Per Share (EPS) were R$ 1.19. For the full year, Normalized Profit totaled R$ 10,558.5 million and Normalized EPS were R$ 3.38.
This press release segregates the impact of organic changes from those arising from changes in scope or currency translation. Scope changes represent the impact of acquisitions and divestitures, the start up or termination of activities or the transfer of activities between segments, curtailment gains and losses and year over year changes in accounting estimates and other assumptions that management does not consider as part of the underlying performance of the business. Unless stated, percentage changes in this press release are both organic and normalized in nature. Whenever used in this document, the term "normalized" refers to performance measures (EBITDA, EBIT, Profit, EPS) before special items adjustments. Special items are either income or expenses which do not occur regularly as part of the normal activities of the Company. They are presented separately because they are important for the understanding of the underlying sustainable performance of the Company due to their size or nature. Normalized measures are additional measures used by management and should not replace the measures determined in accordance with IFRS as indicators of the Company's performance. Comparisons, unless otherwise stated, refer to the fourth quarter of 2011 (Q4 2011) or full year 2011 (FY 2011), as the case may be. Values in this release may not add up due to rounding.
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Sep. 29, 2016 02:00 PM EDT Reads: 4,169
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
Sep. 29, 2016 02:00 PM EDT Reads: 1,134
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Sep. 29, 2016 02:00 PM EDT Reads: 3,933
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Sep. 29, 2016 02:00 PM EDT Reads: 3,590
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Sep. 29, 2016 01:45 PM EDT Reads: 1,111
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Sep. 29, 2016 01:45 PM EDT Reads: 1,771
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Sep. 29, 2016 01:30 PM EDT Reads: 4,448
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 29, 2016 01:15 PM EDT Reads: 3,016
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
Sep. 29, 2016 01:15 PM EDT Reads: 315
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Sep. 29, 2016 01:15 PM EDT Reads: 2,918
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 29, 2016 01:00 PM EDT Reads: 1,690
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Sep. 29, 2016 12:45 PM EDT Reads: 5,134
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
Sep. 29, 2016 12:30 PM EDT Reads: 1,746
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.
Sep. 29, 2016 12:00 PM EDT Reads: 461
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Sep. 29, 2016 12:00 PM EDT Reads: 3,150