ABEV - Earnings call transcript Q2 2021

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Operator

Good morning, and thank you for waiting. We would like to welcome everyone to Ambev Second Quarter 2021 Results Conference call. Today with us, we have Mr. Jean Jereissati, CEO for Ambev; and Mr. Lucas Lira, CFO and Investor Relations Officer.

slide as available webcast well this a our downloading link reminder, call. ri.ambev.com.br, website as a presentation for is on of As through the being mention Before Securities the Act forward-looking let Instructions] Reform the me XXXX. [Operator statements Harbor proceeding, Litigation are made of of under Safe that

and beliefs changes statements. everyone to to based and forward-looking and depend They Ambev's in involve therefore changes and assumptions uncertainties also expressed unless performance management call future to and statements are XXXX during refer and available percentage income company. Forward-looking on because the relate they that the assumptions to normalized stated events on in the circumstances comparisons of regularly information currently figures do that on usual risks will both that percentage understand may results could cause of not other industry Investors may results occur or are Ambev could I remind factors in the activities. conditions, be to future. that differ not before discussed nature the as otherwise are or items, measures today's also such refer like operating would and either conditions, expenses as future normal organic and those should affect materially the general from occur economic of which Ambev Normalized results. of exceptional part with second quarter to and

profit discloses reported consolidated company As basis release. the earnings EPS, and normalized the EBITDA figures non-GAAP are a in the EBIT on fully measures,

your for may the Jean CEO Mr. Ambev. Jereissati, conference. over begin to turn I'll conference Now you Jereissati,

Jean Jereissati

you safe. your earnings much Thank call. families for are Good I joining our you and afternoon. second very morning, well quarter and hope good

negative XX which high continue to deliver highest second that year choices an wave we quarter the in we results. record, the rolling consolidated back since the see months And million months in pandemic. the hectolitres made to the in impacts above volumes, quarter, first This best on led the I'm peak We happy to one of completed COVID-XX XX achieved of X the all-time volumes XXXX.

We got as navigate challenges have also the but prepared previously brought economic ready we at better by rates pandemic same for were the increased. time, reopening we mentioned the vaccination to that

agile innovations, markets. and were excellence our Nine markets Our commercial strategy, of operational restrictions many volumes revenue once performance our versus growth delivered with grew solid ahead and top premiumization hectolitre again on our platforms efforts. lifted approach Net and in per of last year, XXXX. tech supported of mobility in growth continued seven them partially pricing volume flexible by as XX of driven

Our above within brands relevance to portfolio. continue our gain core

XXXX continue recovery consolidated quarter on FX level. international growing helping the to ahead transactional line and Our in top a operations the best impacts of offset

revenues. which delivering hand Canada we lifted supported recovery, by by more last a the gained estimates led growth July, We countries. population. still In XX% In which of continue from both impacted fourth in grew Brazil to that where beer helping restrictions. commercial rate company that recovery and saw well show other all Republic line our we volume continues performance. preparing EBITDA. with restrictions again continued great than the than by as quarter the vaccination versus Driving premium growth partially however, with as we according market margin represent levels. our fact in was innovation premium was and on versus In customer to to momentum XXXX reach for suffered more year row In great restrictions focusing beer brands XX% the and showed, followed in continued bouncing measured mobility all-time share back This momentum. segments our XXXX. of to our show more in from Bolivia, customer the a we high our line with good as top pandemic double-digit in growth also reached XX% for Guatemala grew in the on June. than These NAB satisfaction top remains been rating by tighter base closely mix both global high XX%. by ahead to volume Chile, Dominican of highlights NPS active comes that grew of volumes volume in Panama Ambev portfolio Argentina approximately all-time to last volume customers is

year continuing last growth fulfilled orders, of to reaching While team our portfolio more two France. and Lion Talking silver expenses see Delivery, half headwinds metrics in the in to our the we prices, to versus the Brazil But BRLX Ambev from golds, invest brands, commodities quarter. half. Zé on XX in XXXX. XX% grew basis, significantly consolidated impacted seven glad the behind the about first our a power continued second of bronzes this brand three recognition EBITDA marketing and of than year. and SG&A billion million Argentina. versus and see Awards still Cannes for at what grow I'm GMV of XXXX X% in effects, In the two by campaigns we

line on challenges. are our remains all with track outlook despite V top Our recovery unchanged we shaped

same while future. get a we work an our the at transforming On XXXX are especially for bottom we at last this will performance to to should Cost We building ambidextrous improve months reached as the levels new EBITDA for the And on quarter. normalized Brazil. rolling levels. the line in to full perspective, year organization pursue the performance continue focusing time, consolidated as longer-term will back in continue, pressures business volume XX delivering for short-term

this transform As Ambev connect ecosystem we that our into vision to and value. journey is with brands shared creating business inspiring platform continue the people

and financial than more credit convenience. and Today, transaction registered insights become digital XX,XXX Donus. and lines. access resources, of part more that believe on terminals even more such if as transformation, digitalize have our customers, fintech, solutions our more can I can chances adequate enjoyed two our wallets lower more Donus talk to fees like their about financial success bank today and increase As POS of customers two would We they

credit our scoring our On we the credit believe customers with very makes assessment long lines, reliable. history

So and now expand we HX last we fund expectations raising far And and thank for XXXX, as default the I'm once our like are Thank To starting timing our very you during operation. the are this would this line is Donus, close, momentum to focus Ambev distribution we Lucas all to taking rates to excellent real BEES ability rollout test did in tough hand In confident much this in our given results year. put within to business Brazil and to again the our did dedication in will year. had top team and for we keep I in And over is new last your centers you, levels attention. to times. for I

Lucas Lira

Thank hi everyone. you, Jean and

impact volumes markets As the you in will remember, was and mix QX, many of severe. shift XXXX of was because COVID-XX, very collapsed the tough

by a brought that importantly, XXXX bets and consistent grew XX%, much, us despite long-term to continuous time. that is the months, to net about news operational did disciplined talking the evidence getting and recovery. grew EBITDA big performance headwinds XX%, good we normalized these continuing even bets execution opportunities for about However, over brings played grew our the Fast sight seize set do our a sustainable more and the of been of these to financial little revenue crisis here's XX some is the up adapt improvement and remains And decided and I've forward And short-term ecosystem. nearly unabated team's big to lose XXX% we while behind QX, to didn't closer flow to did X%. not we why, off profit grew most had pay what our panic quickly we cash so

was quarter In which credits, performance and addition, in other BRLX.X billion our BRLX.X in billion tax financial financial BRLX.X of our results. income boosted by in operating in billion the

resulted inclusion in PIS last XXXX confirmed to state basis unconstitutional. the Brazilian decision the May favorable the that Court ICMS tax from Supreme Just taxes credits tax was and federal These taxable of the that a COFINS its ruling recap.

our the as accounting normalized from are XXXX tax Given in QX, these our these this matter dispute, for results technically part in organic pending of as But them disregarded case progress. we going an credits calculating performance treating credits the nature tax scope purposes of have we keep this standpoint. forward litigation was some a financials, the and will as change. still of things We updated our market

notes our that the amounts dispute statements are to financial disclosed as material. as the in not remain However, under

discussed in debate in investors the lot draft what taxes, subject It tax speculate to and While of proposed are of The we also to which income the closely. under early I I'm is from on public currently Brazil, unfold. briefly proposed legislation very is will being comment on changes lately. reform generated a has wanted questions monitoring Congress, the too

So impact, or of we developments, cannot there will we of will broader us if shareholders. comment on any, any keep this and course informed. what tax our be reform material on have the Should everyone part

all on in the impacted XX% the expected on we where our costs, XX%, returnable our is of the year, from important since second trade of to commercial The our our FX volumes, bottle net remain our expected. of compensation for mix DTC plans higher for other variable mostly sold Brazil XXXX cash the grew during revenue about our than half presented Remember basis. better most despite administrative sales that. end cost on towards XX% headwinds on wasn't bottle was nearly revenue Distribution with most Having impact the headwinds we by headwinds, message expenses glass revenue remain witnessed hectoliter and balanced of drove of a performance. quarter. line the up growth countries said innovation be than mix felt XX% grew net should led all marketing grew glass that pretty year-over-year continues in line variable total increase XXXX. below QX, meaningful our our across of year. mainly Now growing of these back XXXX. which year of because of markets to expenses consolidated and expansion main Strong like much XX% Also provisions thanks consolidated SG&A volumes continue for hand, performance ambitions negatively nearly year. of where for adverse and up quarter better initiatives on volumes was reached were the in to higher a goods implemented QX with Brazil as quarter, commodity the is basis, coming XX% which our towards track double also XX% and top net versus terms track Should as our costs with the and growing and SG&A performance growth reopening our and These expenses. better platforms expected, compensation, per in per no in performance hectoliter returnable recovery from the COGS commercial to bonus our on

to increasing pretty much improve as back with COGS continue grow we exposure, Brazil for in better normalized work the should expected the than We mix to commodity EBITDA 'XXs low expect performance per hectoliter get full-year consolidated cash to XXXX Beer the levels. and full-year offsetting non-hedged is for to

additional cash prudent that, liquidity turn it approach an the We COVID-XX now down create said forward, on the and the our believe the Thanks of to raised recovery. QX, in given Having liquidity across to volatility still to cushion. debt our return maintain uncertainty warranted strong and pay we at priorities the that of to towards persist a liquidity me decided markets. height of Liquidity improving generation going is remains our capital. the under we invested Let crisis protecting control. remainder our financial to during

remain on improving focused as and across for journey operating great our improving resource Think more But the We as people. on capital. possible. are this we on As allocation our we way, efficiently laser the invested company. also focused of have return it of more

We have great assets and generation. strong we cash have very

And ours. of consistently at perspective that not mindset the sense important of creating in like on a them technology a we business this good the focus customer the for And this becoming platforms. but BEES, the resource say a up, consumer greater that from we are once investment we standpoint, creation platforms scaling Brazil allocation, drive we looking value chance believe total models are scale So the why this get they these creation only a course, can reason also I is at sense and make big value, from return how two-fold. is approach Platform still Ze and is business our example of better make of but company. value Donus

line base brands relationships that sale terms leverage. for very to and a America these amazing across over as addressable tech and to as provide to terms. our platforms with these broaden scale capabilities growing and platforms we distribution, capital less terms able more bottom market with customers’ this the total top in autonomy, of we the build use absolute base business are and with we require Latin our and millions connecting of springboard line of a speed, of points to both well decades last solid grow in trusted further potential First, develop on Ambev's second, businesses. reach, consumers the technological as will of core foundation will And in asset The

towards unpredictable efficiently move dialog continue To make after forward and and And quick approaching organic dry date, shared to wrap sustainability, powder. held to how found and into that, a for is continuing and on to of our we our environment. On when use with joined intend appropriate word cash, to business, you. We do. which after this over it thanks website. we a M&A our we allocating some of those are in shareholders IR who keeping investment up taking to growth After be to of levels thinking Thank are And the to June time. consideration our Q&A. cash terms the ESG. returning share of who there resources can everyone on you the to XX, terms all look materials after changing more liquidity community, In because unable with lot for we more much our excess the still learn to ESG let's

Operator

Instructions] Thank Credit go from [Operator comes Marcella Suisse. Our Please you. first ahead Marcella question Recchia with

Marcella Recchia

Lucas. growth. here, you I Hi, little taking could Thank on two Brazil more explore line strong questions first Jean questions. a about the my bit for Hi, you Beer, have top

second in now your going a momentum a for my sustain that forward, quarters going expectations question? few seen before have this We row I wait to to and

Jean Jereissati

Sure.

if cleaner has yes the place. year So that XXXX. last a now, all there pandemic Brazil the the comps is But while. you momentum over been beer Right in we look are the for reference know with good at

think You being the best it can decisions the this expanding Brazil to momentum all how develop quarter a based quarter, with on many clear And with really the is we after gaining that the leader steel a that performance. see quarter-by-quarter was were helping that accelerating. in-home of are Beer from in in a are took in over industry Ambev when I opportunity mindset occasion year industries, of the had this brands increase did on not coming from years of really frequency, up our exist Brazil is they mindset three increasing of maintaining coming to XX% ago, are this and that lot they innovation their pipeline products the revenues

in when equity, X XXXX, the Brazil XXXX HX fans brands. power our we portfolio our information here and have of So we There one the HX with that compare above the brand I'm is we new that. gain, about very excited of true million brand

very So really which our focus that's a as they we consumers and brands that close also elect one they KPI that of are so preferred brand. follow

came vaccination number as news think is this portfolio really stronghold, And this good moving our reopening. We in will come occasion. is really to the is the back the increase our I back So somehow, socialize come in forward, out-of-home stronger. there real with

line on I that I'm confident structural very we very movement confident with momentum, somehow So, that our are top that with of. feel a

Marcella Recchia

your more this answer. venture question us Could with you line? is of now share Thank sort menu update for on initiative the you the much developments that. an second more Perfect a recent clear My Jean. about about very business

Jean Jereissati

Menu?

Marcella Recchia

Yes.

Jean Jereissati

The marketplace. Right?

Marcella Recchia

Exactly.

Jean Jereissati

times company So decided initiatives. this from then that that combine consumer [Audio then leads beverage developed, new of we the their a becoming accelerate a journey customer And accelerated the two big is community decision have And when us. the community communities. our XX will Gap] There vision then with to platform, in we and that ago. didn't we and leads. BEES in make we And these marketplace years off start-up moving our into that menu, in Zé assortment have was a digital. our we GMV now We grew to two more where and we

then that around now Delivery are We of internalize building muscle. BEES And in and long helped the now and off us increase beginning. with products our in a Zé they this We [indiscernible] two for journey products this the really then this digital beverage the management in acquired BEES really we company a invested we have these us back capability big working ago something just was and lot that we mindset years coders us to both in able not granularity market. us off time and get visibility capabilities. with And lot a being and give X,XXX of to Zé on revenue

there. now customers, So up first about I'll XX% of our they BEES, are talk

business to information. and customers about imposed insight have we different so basket, know that do There different. really during so there to they if if sales didn't we in our gets and for buy use different and made rep sales that prefer wait products something weekends off we there the we promotions is not when that the they basket the rep that and app buy we really And you when is, buy can they have then the learning they out before figure you BXB learning our are add add is of the to the good

goes there at prices, but minutes convenience room have XX another is we type for we about consumer for can that this this on Already insights our if before artificial app the And is that X where our a consumers of had is there go when supermarket can that management just BEES then and time, is very So have animal of strategy of new are targeting lot and really beer smart had we watch year now that another be have pricing we so lot will we where signature see occasion. that increase the strategy you big really in to muscle home XX% much completely really and Zé Ultra one as journey, a big they we granular us much at optimization granularity and different where pandemic you And Delivery a time to have thing in in missions we mission we minutes, management. about those terms and all opportunity more intelligence decide we and market app the way this time in us have Zé market community a million us are, and to different linear revenue customers us. thing of follow new that discount helping party to think more point consumers, they Zé in better more much customers with as show have revenue pricing before it. for if revenue can efficient occasion, we with acquiring a type it XX the use BEES this decide we a a of is the helped anticipate some to really for help discounts with so we our are, are and

completely initiatives. moment in in capability of new revenue are decide we our to off using a data terms So

Unidentified Analyst

by in areas point services So protecting ray of you of the tools have give capabilities your brands right? you a other don't value the of essentially away have on for sale your and to value and where offering brands more

Jean Jereissati

that with different we levers four when of we we broader a add revenue That's and We convenience. our added. can We understand to all missions. think it, portfolio. can, really we put just we We about with management are, because a consumers the this together, technology go level

Unidentified Analyst

very excellent. you I Thank insights. much, appreciate is This your

Operator

Pactual. with next BTG Thiago ahead. Thiago Duarte question Our from comes Please go

Thiago Duarte

questions three hello like Thanks hello everybody. to ask opportunity. Lucas, the I'd actually. Hello, Jean, for

SG&A initiatives first it I help for G&A think is, it? you feels particularly pressure that's bonus impacting the I us the mile if from And and clear the the year-over-year logistics. accruals, Brazil. particularly rest is coming that last the The to but in Zé. but is it's BEES mean was there the much can but geographies, coming Brazil, navigate I from Beer also particularly on it and like That your coming how cost one wondering of through goes more from in arguably there, digital

us we percentage in you should So if how of in navigating revenues it help if think through can, of can through you going of forward. terms it

For that nice. SG&A, would be

platform, ground the much you resilience little those from bit be you platform? on detail in provoked demand premium also talk to in well. of your how affect pandemic, can or the normalization gained question question, nice of The about is during products on changes pandemic. mix this already like can third already and can you more expect down Brazil Ambev in looks four but more talk And that But because the because, can a and the your now, the have hear how stronger But the in over of you the the between how more or it this you guys Can industry GMV Jean? terms more XX%, really of billion BRLX beer the is like talk like you this five to your the can would BEES as you, know doing have terms and particular a itself it about Ambev's mentioned of in GMV previous a about clients other by think how you the industry and the you built bit little little a or momentum of about clients quarters, quarters, the They you their looks strong four you that industry So occasions second in is bit, itself? built effectively question talk has are products a industry discussed looks purchases. that words, XX% active in industry help us last on the than the much how breaks of third-party and you the on I the how to are back

much. elaborate on could you would nice? if that so be you that So Thank

Jean Jereissati

Thiago. We will for BEES Okay. with industry start questions, questions the SG&A. you backwards. and start go I Thank Good for the then we then

Okay.

our performance first one always of of and occasions. are industry get different our that, the the yes, on industry came, and that made pandemic, and that's resilient goes towards in we channel our we pointer that future three innovation approach is to is and towards So here all to we and leader bit really really the this a the a seeing Brazil. before industry, really to decision And maturity our resilient the mention bet for that and as going little accelerate it’s company a maturity like of we we pandemic lot to Brazil a what's studied decided in down then our approach what's really market industries Mexico and two for on

industry a what I our we bold So that and of is seeing part think volumes it really of on really went the we industry the coming from are probably all big expansion in the. that is expansion

very is consumer that healthy in - Brazil is something is in approach. So the of beer terms it that,

healthy, very - share culture lives. about is is in meaning very of still so brand very So it's everybody of the new not as the a the healthy concept in see interest, growth the important we people's the and category liquids the in losing it’s that

So this thing. is one

so, a we the increase had, market, Tuesdays vaccination of with have we something pandemic. this come. The relaxation, And would It’s coming we the being markets will Brazil. then by in lifted. restrictions in really second the And in-home, it that just forward from but see. we see, from the in that the we that coming always we Mondays this accelerated that it from knew coming new of and was to occasions coming thing and And it’s more we we the we is that mature maintain. really that's mindset, see is part it’s off And in residual what view moving then frequency, well big all industry a believe - the believe

really to We out that the other socializing the in will go our of home. are occasions the stronghold back bars

priority the new So in of I in the really the innovation Ambev learnings a industry like occasions. the in consumer combination that address, Stella polluting. address Mexico example end, as for of putting In believe that same

So really that industry. the really keep strong. it's for consumers I add the believe industry will

on So did. that's vaccination my the view all we believe that things have we and that I with that.

of saw is was want in we high more a HX. the with long-term. to resilience very core the is of think than there core it optimistic I in structure have. I'm terms navigated big more industry in we really about that end, well, high the we was for more In us reality, surprise making end growth innovation what it really the a something part of this of the industry

the this a that year, we that saw in the really difference the that in it we is, know we want changes of innovation industry. core lot come was really last in So drove to this in

Okay.

So thing. is one this

thing second BEES. about So

vision to to So as NPS to beer then their all, we our is have be be be digitalize download should first so and and to good. the the of they high, has backbone, usage customers BEES, their has the to have The app all it e-commerce do in want by bring is thinking how for role to they the that, of beer, where how we to our new this will we be part able BXB, experience of ourselves the this are. about sales and representative, like

So guaranteeing this we is. are that

wholesalers. aggregating are we our So now

that now and wholesalers. going centers we were be is a XXX% direct platform to distribution BEES So off

that all be beginning over will to we then it partners. So Brazil. And aggregate with

we products that to BRLX pretty give portfolio. didn't portfolio. When that close is are continue our of as I to billion are we beer BRLXXX today you formation expand is this of is Ambev so our put that our million at fast, part much GMV. Okay, can e-commerce very we This growing

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the type of have. numbers that So this is we

million Ambev go Brazil that go So portfolio a it talk hard are very it's invested now, break what have BRLXXX this we and the didn't things have not our with that more stressed. in not growing a bit should but phasing we a distribution, down, there inflation? have SG&A Sales they do is is came are a different from When very combined, be premium in our the in line. dynamics. the marketing in off what in for When QX overall from maybe our to to volumes we just we launched products like that capabilities, because long-term be of for innovation little is coming. below in a this There we seen just on they Carnival bit performance we've top I in above much SG&A, think line normal we us pretty supply that little quarter, because about for performance

our example, catch it So producing and up it to to it agree. lot, a And we starting is brand so then spotting, move for more breweries. now we we launch then

we of we for recovery when didn't was on there goes inflation. The a innovation to of is of or opportunities at accelerating, half. numbers role have There of to efficiency of is Not really a what's piece the the a transformation. volume And decided line. for lot best a capabilities V-shape a top do the the we us. in last there the last it. this there France, are piece on year we the in bonus once offsets last year now the us So is of look is that have that really is the it the and supply is lot this in beyond mile, There mile

in ask So And we a I in is had best. This the are above end. something the give Lucas on the in that that is bit little will piece. normal the are insights SG&A for that, accruing there bonus we year last delivering. average But we more above to

Lucas Lira

the Jean. you, Thanks question Thank Okay. for Thiago.

and of sales net think is We sales - saw So think revenue ahead okay, which The saw Right. of it, what marketing, is and I to we Sales on Marketing. growth Right. HX. marketing. around in and really way

Okay.

I So seen. going you we're But forward. over what quarters. sort any of performance it's the the not think last That's at specifically targeting if - look you've trend few

Okay.

it the distribution, sense. of broke think Jean terms down way In makes I

Okay.

look I So at. would

the side, glass really mix growth I'm volume on linked to On models also and variable the one of hand. returnable

Okay.

side innovation. reasonable DTC, as opportunity avoid likewise we And of of as expect for in improves recover on increase initiatives result. innovation the spread it's scale. and so distribution there really is at it a capacity models need grow DTC, hectoliter have some like not is for product the reality online volumes to the footprint the expenses, country grow, to the expenses still as production as ship mentioned bring the I And out around as that to we returnable we long distribution as improvement to to also and more distance glass is And innovation have other then per distribution continue regarding

it see as to And DTC on continues we side scale up, opportunity platform. more distribution the the of efficiencies for do so

of admin, than the is explains and function of right we of increase a year-over-year variance variable that's organic expected, bulk more that went then finally on the recovery compensation is that Okay. better the the coming half into indeed the than year. fact And as from

deliver year, going for should we the of remainder better the if results continue expected bonus we than for to to forward. accrue continue So

Okay.

Thiago Duarte

guys. Great answers. Thank much, you so

Operator

ahead. with Our Ms. from Isabella next of question comes Bank go America. Simonato Isabella

Isabella Simonato

be call. Lucas, mentioned everyone. to you likely for Jean, thank Right. was on side. QX question you the the going day, cost better QX, end that at the year. My And XX cost last afternoon you're of keeping Lucas was remember reality, guidance hectoliter, than it the quarter Hi, think per good I right. the about the when in peak and is we

So I half right, this changed actually for year. and the what you're this is of phasing the was second wondering, how quarter,

Jean Jereissati

Thanks Okay. for Hi, Isabella. the question.

hectoliter improvement performance a in hectoliter mix. from that came on mainly right, You're had we COGS the surprise COGS positive per per on QX cash the

which Okay. And recovered the returnable bottle improvement is volumes that better we glass anticipated. than really much faster than for reason expected

good that's the remainder the And for Okay. of news year.

not have of since right, unhedged trend given portion hedged our the you to to maintaining we guidance to that weight are full costs continuing remember reason then, of may returnable the right, and mix, continue continue our gain that pressure, work are cost commodity okay. that we headwind. commodities way continued QX. behind become actually as bottles, the in because for fact why the is the having commodity of And referred year part the to the is a glass to part more As I

which mix per us dynamic to much going net-net, guidance cash the unhedged are pretty be But the pretty in by that's wash offsetting better much higher year, the think to we full meaning reiterate better COGS going for a commodity low commodity unhedged right, mix 'XXs it's allows okay. the Okay the costs. to of offset costs higher hectoliter be

Isabella Simonato

Thank clear. much. you very That's

Operator

Barclays. question next Theurer comes go Our from Ben Please with ahead.

Ben Theurer

Lucas Thank congrats very on much, the you Jean, results.

your and initiatives in then a to back follow-up business established the can around how BXC and and BXB BXC aligned on half you and what BXB strategy. you year And to of is you into the of the initiative think wanted you you. Thank Just price more leverage the how the bit XXXX business? potential how on and regards strategic with little that think the flexible pricing

Jean Jereissati

try Yes, so let broader answer that. a you on me give to

reviewing strategy upgrading moving So yes we are our forward.

in grow connect vision We inspiring business people transform beverage we is really we can ecosystem, platform, that that so are much than all want have a and a together That's brands. We to more this into company. which there. the

consumers then financial is technology addressing, big BEES our upgrade Donus a and to then should with we how and add that more perfectly call. have this to like a consumer and rest to to problems, really machines about more with on tech to our broader ready platform missions, talk that into community. more is we then have technology really community occasions, a then more think there the be and we serve communities on more so And about that want is two should really into where the to Zé the now, does then are move omnichannel but we the that But services has bet And portfolio piece, upgrading customers’ beer everything. of credits that integrated to solve really customers should customers BEES our more and really and with we moving the that serves our customers, this then into Ambev financial fintech then and a opportunity company in

are we are two revenue in we So directions They this really and the management. in have transformational. possibilities going that

financial the think, cash as in we more in financial discounts you long-term in fintech wise combined the backs piloting if the are deck BEES. So plus

really So we are thinking about.

using that we better granular, lot So assortment lot learning information the big are and that we a a getting have, are portfolio a are not They clients breweries, essential and artificial our adding this lot portfolio better more with same are adding are intelligence we of algorithms. the to from customers’ there we to very upgrading is on our but customers. on they

fully time, of And side so, in that the side. will on a connected. And be consumer these the point new management things really and there in this is revenue at on muscle have off lot we customer some

other and goes So connect a each has we give in they and rapidly. that consumer the things discount BEES these our that to customer match

settle are to a to this they believe the new working good, they missions. we muscle going things competitive that target perspective, the will consumers we our hard in the are from very for we learning but – on occasion it's way that things because be really in a more in consumers transformation. And us get those we advantage help based on discounts year with XXXX, and for really be customers they and are we way us are So not just really

on the very end vaccination that our this here middle a on are important the will thing and of help that make we on best see us is that the have September. really we top-line. And are can business decisions – this we other the decision believe thing still We make XXXX vaccinated we muscle it so September And is and to Brazil in October for these and with the usually and be feel in population to are I in fully inflationary take Brazil our the price September-October important is be for increases So risks, that business. November. seeing on the will will to the momentum where because so us in living have we scenario by thing comes in so it XX% numbers we seeing like comfortable be a and good of momentum it

this good in new to with living of capabilities the looks we've and scenario good couple momentum want that tools to with inflationary have really for in of and been last like a live us we year So it end the quarters.

Ben Theurer

least offset also likely incremental first Okay half cost to some raw material you should pressure, which the have turn the that of what, correct? locked in help your in you most of for XXXX at is

Lucas Lira

this Ben yes Ben, one. take can this Lucas Yes is I

into the we But of XXXX into hedging right, headwinds, face our right. of okay. Argentinean still today, of months, offset the year, for we what I and in is XX much help facing from That's right. go place XXXX, that in given the into opposed pressures have that answer think, head pretty yes, the to hedges looking year facing of headwinds Remember bigger looking And as XXXX going trended at coming commodity on this XXXX combination our that the BRL than better policy type partially much level to lower headwinds are much yes are The do that net-net, commodity to side the portion we're FX, course but we're still the hedges but going of hedging. are where far, case the is side, terms There year right of FX the of we now half and peso it year FX at on so that XXXX. face into should is XXXX, and remember a the we half not in far are so go, far the the last right. commodity higher is how than the this given headwind that the in cost we we're and seeing the lower XXXX

Ben Theurer

thank and half the second much. for fingers very crossed you perfect, Okay

Operator

João Our ahead. go Citibank. question next João with Please from comes Soares

João Soares

good Thanks, ones have on two Jean, afternoon Lucas. I everybody just quick side. my

I understand to to we're just mean you're I recovering. And throughout Brazil moment the wanted course developing the key just I the with very of pandemic. understand, here cities on of accelerating one, of course most in critical close that in first very to The vaccination well you're and client wanted on-trade BEES. the

So first that's question. my

to BEES. the their I that second wholesalers wanted the BEES very color and on know pressure long-term, that any is developing with for do the coming competitive and thanks about information And The [indiscernible], you own on BXB that Jean businesses potential clients online developing but sharing identify more understand the looking compete question GMV into I well. potential competition the

just for I long-term to So wanted the understand outlook Thanks. more of BEES?

Jean Jereissati

first So the in the let's on-trade. reopening talk share about market

on our think based so – our I information.

I the market this, of you recovers about we really and share good - our begin we beginning. build out-of-home. strong, on and market and market socialize we on can't are about Brazil if have that believe think have very if in channel-by-channel. you it So the new if mix, this of the market so share last that share QX. share this so very we that as are within on something the In we channel quarters really this with deal is like a level maintain mentioned a something this it's think we to I occasion that QX, And It volumes looks on trade

us, So because should really for the positive usually we this it's be index. that occasion over

the And help structural, the I'm But in so is is before the so how a than of it much there Malte So, market category. trend in thing really so on HX. lot brands share, optimistic Brahma, that, favor. theoretically, healthier there is and top see somehow, let's should whole Duplo our Brahma about of be goes

So the whole family.

it time Brahma on help on and a of growing So big the there. lot the equity their

point on an side. important the is consumer So this

my structurally I'm really high. before. than is RTM all-time better my reaching is level more So customers, service

is bringing are liking that a that so high. opportunities they digitalization completely much we was the in have so features the So adoption so new our

of game, in So, When somehow, I wholesalers ahead talk right we the are believe about moment. BEES. on that. we so I'm this somehow, confident the in very started we

inside the very If ecosystem, aligned you were wholesalers, about BEES my wholesalers platform. really and with talking my excited they my are

looks So RTM some FMCGs I are really but my in that pretty we look we in are much don't wholesalers much know that see there, competitors, about I ahead coordination that with - in my are beverage When And XXX% like trying other is BEES. the companies other game. they so they here matter. on

more opportunity. on So own I think is end, in a and lot game, the are we I there think the in ahead things. of competition the But the is

market So so fragmented. this is

in this leader industry X%, the So of has X% market share.

somehow unparalleled. bring competition of our So it's fragmented, where level in capability place really delivering very service reaching, and we that's and is a

think I I somehow this about So, is things that question. could mention your what

Joao Soares

Thank you.

the interplays but players. to referring - into clear, I I to was The cash the Just get be like question?

Jean Jereissati

very industry think we total the market addressable is and this huge is Yes, fragmented. Thanks.

see we of So That’s plenty bottom line. opportunity. the

Lucas Lira

problems because I moment under that customers - in retailer it's very all about in in their it's spend underserved go competition, that need and to really over they really serving productivity or are And are future. there more that's solve this think they app of company some need I think today. they it's indeed can some I the fragmented, really about less really is

So that's view. the

Joao Soares

Thanks. Understood.

Operator

with question Santander. comes Alan Please ahead. Alanis from Alan go next Our

Alan Alanis

Thank you so much.

the and particularly. the So strategic the and we integration company on of look results congratulations the at - then direction

that it's that America? parts Chile, learned, if over is a help lessons what give the the one, second the and you there. the mix, of the mix, the well. mix, of are in us partnerships in are could to working have I system first the understand the X% and Just tactical could to in of bigger brand opportunities decline that you. Latin product questions, us lot the Brazil terms in for Thank the channel how more Coca-Cola quarter, other with of relationship of beer the global couple those What you that is pricing equal and much you a from strategic, in understand very sequential the, so forth, that quick one

Jean Jereissati

Thank you, Alan.

this get me one. Let

back the and mix channel in So occurs the if quarter-over-quarter you region bit usually of little it price so mainly a because of look mix. reduction past,

It's something, is a more in in little general mix, the than it's there, the seasonality off bit of around there season. it's most structural in So, is channels. regions years

Okay.

that, big no there is is Chile. It's something was go we something decision. there that deal more So of is there on not to normal. When

yes. So,

So happy. of that they the to mentioned good it's like very part looks as us, is

are two so company more like like a plus is very a we platform are where is because. it is deal lot one properly happy, that value of in sharing We It happy. like is a happy everybody that is a and it's, were more with and than there is one looks looks is

the a over the were alliances more building decided leading to of terms brand and there of these when we we we of and things partnerships. the leading platform in governance where Corona. is us the to was working we make technology have in to a Chile, put They So BEES and have distribution lot in it place go together alliances equity parallel, confidence have is are, so just in general all a is trying and

delivery then on think this technology there, they the distribution exclusive of on have BEES in perspective so it alliance alliance a using on the level happy just we on with past to sometimes you concept from in, in alliances, are will next I distribution. but we think broader the was here and be very Chile the have now And

rate. have Sometimes the distribution get the just you don't take

concept. this So

going type one us are we we good in that Chile alliances to alliances open to confident more before. be much really that is do type different make were for than to are of So possible. this

Alan Alanis

Yes, of happy. and a that very lot sense makes

So again Thanks. taking congratulations question. my and for thanks

Operator

from Evercore. comes Ottenstein next Rob, go Rob with ahead. Our question Please

Robert Ottenstein

Great, may related. thank you very questions few be that A much.

side, around any you the is and imports, of kind that base beers seeing between innovation would question can talk you kind are then corona changes first you side. notable beyond that side you're in drink of the you - bit a end, part what about innovations anything can revisit, doing of share the the beer Beer the a in business, your high year, what business sorry, the on bottle that's how XXXX or question. talk are not be this bottle, tremendous developing is in consumer is, know, most percentage the at about and have Brazil ready-to-drink you I'm in so ready-to-drink gaining backs, obviously is now your the that region. your And business First, returnable nuances returnable we're the any returnable but high-end little important craft portfolio, of second that

and end So high 'XX Thank innovation beer beyond in ready-to-drink projects 'XX. you.

Jean Jereissati

Okay.

first. premium the for get me you question, thank let So Robert, the

was So something our grew XX%. a quarter this around that portfolio, we with

So good a it growth. was

like saw the pandemic portfolio, of this so long-term. this that, the we the terms of it's is is what something more that the saw structural, in thing in So high-end about a core, of segment ahead put and for type during share And branding resilience of us, we we more growth gains. is see something KPI a our equity, so and in any this structural is it coming back investment again, that is market priority we as brand

Okay.

indexing in are want really type growing has decision, ahead consumers, the So that it we portfolio, way of are a over really our volumes very positioned big sustainable are accordingly. was business. fast with high-end, equity a portfolio find dollars, drive We and the and the investing the very put and to penetration then and we And excited grow consistent to because our place. brand in marketing long-term in brands, have any our about very on it, we we equity time to of on portfolio, we then really sustainable consumption and

with is was equity with region of though performing really I'm good Becks [indiscernible]. is quarter. product pure brand it that more the the follows it how excited this it, But a has So how in in Brazil Corona in on and a on even with the really edge came love flavor

excited equity very fast will I'm then portfolio follow, for and our okay. about So sustainable moving volume really brand

So this is one thing.

pipeline our talk so the in so in things relevant have that, place I it when in of so awareness, we and is thing okay. - on that the about adjacencies, talking bet health about innovation most are we innovation, here, beverages Second

and So to we're products the avenue to going have going is that. we're populate this on more that

in So Ultra in the with - in - we are is in Usain launching Olympics Bolt the Brazil our Olympics moment, our advertising. Olympics is the Michelob now

very We to So after it that out us was excited just we about. without a Ultra. it the good pilot roll looking launch moment stellar are for

entry of peptide we premium important brand we hard the the to new Hard beer renovation our prices core doing in have industry is an in rolling tangerine and are lemon bets roll started out. are from [indiscernible]. with We very it so adjacencies, launched and our are Lemonade is brand core we is Ultra from Brazil we piloting rolling There that first brand plus flavors one a have, So in are - that of will in. German, out these it's the Mike's XXXX so And in growth we - with bringing terms that we consumers called to flavors that dated terms of this the the are avenue it just well, portfolio, that out out the in Beats seltzer.

of of most have are So and that's we that important avenues pipeline the the innovation where HX. these are for three we

Robert Ottenstein

just last very brand brand different I equity. past, KPI of that a know, could history, that I it maybe growing was and essentially, if over what you couple of last the equity not the Is interesting approach. And know, very different ahead be key somewhat over Great. comments would you but making years the on years, a your than follow-up, know you've XX approach had I mean historically, volumes

Jean Jereissati

and that we're in begin we is something we off. now faster months with for was market are power, specific KPI to It XX this equity that - specifically going see are this this brand it, the than share. brand it's following So - paying consistent strategy power we

Robert Ottenstein

Terrific, thank much. you very

Operator

gentlemen, session our and that for question-and-answer concludes Ladies today.

Ambev turn to the CEO to Mr. like Jereissati, for would his final over conference I remarks. for Jean Now

Jean Jereissati

better, who confident and would team And I also and the feeling in vision portfolio power this than customers joined these sustainable have is want Transformation really my this like wrap future Zé here thank up, I business, accelerating really our big about and I attention. a that that everyone and towards before. recovery. digital in So, dedication Ambev bets it, our place so we call Brand consumers, BEES is big this are mentioned our future. of one we, during in is times. one to X brand brands opportunities not Brazil they we and again stronger of for thank platform analysts trends, a of are is really equity, products and past in have innovations, we million showing tough that really of that the to two were we their have claim time of the to structurally currencies, us company preferred brought now, to for consumers the of the that tech - that preferred I'm have brands the by you excellence and in structurally one. - one really really crisis commercial our results. cycle look underlying platforms but operational seize We tough delivering when the and strategy commodities are is better we one

I'm a portfolio. strong strong. So generation about is my very - cash And excited remains

time So for much and day. attention your great all a you have very and thank

Operator

Thank much Have for conference concluded. Ambev's so disconnect. you call day. a you now attending. is nice now And may

Ambev (ABEV) 29 Jul 212021 Q2 Earnings call transcript