Volume Performance and Industry Impact: Ambev reported a significant decline in Brazil Beer volumes, down 9%, largely attributed to adverse weather conditions¡ªspecifically, 65 colder days compared to the previous year. The company encountered a mid-teens decline in June alone due to weather impacts, which affected key regions contributing to over 60% of industry volume. Despite this, brand equity improved, softening the negative effects of revenue management decisions.

Margins and Cost Management: The company achieved a high single-digit organic EBITDA increase, with a 110 basis points margin expansion despite revenue pressures. Cost efficiencies were driven by disciplined resource allocation and proactive cost management strategies, saving over BRL 500 million in the quarter. The successful SKU rationalization and improved productivity contributed positively to this performance.

Revenue Growth and Pricing Strategy: Ambev reported mid-single-digit top-line growth with net revenue per hectoliter demonstrating strong performance, aided by effective revenue management initiatives. The price changes implemented in Q2 were pro-active, with mix and premiumization playing a key role in margin expansion. However, there remains sensitivity to pricing in the Core segment, which is seeing varied performance in response to revenue management decisions.