Ambev SA ADR

Ambev posted normalized EBITDA of BRL 6.4 billion in the second quarter of 2026, an 8.9% increase with 80 basis points of margin expansion, while normalized EPS rose 24.2% to BRL 0.22. Net revenue grew 6% and total volumes increased 1.4%, driven by mid-single-digit beer volume growth, though non-alcoholic beverage volumes declined. Brazil Beer revenue rose 9% on 5% volume growth and market share gains across mainstream, premium, and beyond beer segments, with premium volumes up nearly 20% and reaching about 25% of total beer volumes in Brazil. The company also highlighted a 60% increase in Balanced Choices volumes globally, a 60% rise in Bees Marketplace GMV, and a 50% reduction in net financial expenses to BRL 486 million, partly due to non-cash gains from hard currency conversion after the Bolivian currency devaluation. Operating cash flow reached BRL 7.9 billion in the first half, an 80% improvement, supporting BRL 5.9 billion in shareholder returns announced so far this year.

Ambev has gained 26.7% so far this year, significantly outperforming the Consumer Staples sector's average return of 8.2%. The stock holds a Zacks Rank of 2, or Buy, and its full-year earnings estimate has risen 11.7% over the past three months. Within the Beverages - Alcohol industry, which has returned 17.7% year-to-date, Ambev is also ahead. Another Consumer Staples stock, Chefs' Warehouse, has surged 53.4% this year, far exceeding its Food - Miscellaneous industry's decline of 3.3%.

Ambev, Latin America's dominant brewer and a subsidiary of Anheuser-Busch InBev, offers a dividend yield of about 4.2% based on recent payouts, meaning 770 shares costing roughly $2,387 would generate around $100 in annual dividend income. The company, which trades around $3.10 per share and has a market cap near $50 billion, distributes profits under Brazilian regulations that require a minimum payout of 40% of adjusted net income, often resulting in one large annual payment in December rather than quarterly installments. Per-share payouts have averaged approximately 0.70 Brazilian reals over the past three years, equivalent to about $0.13 in U.S. dollars. Ambev is strengthening its dividend potential through premiumization, with premium and super-premium brand volumes growing at a high-teens rate last year and nonalcoholic drinks surging 30%, while its digital platforms Zé Delivery and BEES enhance distribution efficiency and pricing power.