Ambev (ABEV) Gross Margin %

: 53.47% (As of Dec. 2023)

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Gross Margin % is calculated as gross profit divided by its revenue. Ambev's Gross Profit for the three months ended in Dec. 2023 was $2,181 Mil. Ambev's Revenue for the three months ended in Dec. 2023 was $4,080 Mil. Therefore, Ambev's Gross Margin % for the quarter that ended in Dec. 2023 was 53.47%.

Warning Sign:

Ambev SA gross margin has been in long-term decline. The average rate of decline per year is -4.3%.

The historical rank and industry rank for Ambev's Gross Margin % or its related term are showing as below:

ABEV' s Gross Margin % Range Over the Past 10 Years
Min: 49.29 Med: 60 Max: 66.35
Current: 50.72

During the past 13 years, the highest Gross Margin % of Ambev was 66.35%. The lowest was 49.29%. And the median was 60.00%.

ABEV's Gross Margin % is ranked better than
73.08% of 208 companies
in the Beverages - Alcoholic industry
Industry Median: 38.63 vs ABEV: 50.72

Ambev had a gross margin of 53.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Ambev was -4.30% per year.

Ambev Gross Margin % Historical Data

The historical data trend for Ambev's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Ambev Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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58.32

53.64

51.05

49.29

50.72

Ambev Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															51.59	50.65	49.01	49.68	53.47

Competitive Comparison

For the Beverages - Brewers subindustry, Ambev's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ambev Gross Margin % Distribution

For the Beverages - Alcoholic industry and Consumer Defensive sector, Ambev's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Ambev's Gross Margin % falls into.

Ambev Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Ambev's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	8254.5	/	16273.501
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(16273.501 - 8019.021)	/	16273.501
	=	50.72 %

Ambev's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	2181.3	/	4079.611
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(4079.611 - 1898.3)	/	4079.611
	=	53.47 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Ambev (NYSE:ABEV) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Ambev had a gross margin of 53.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Ambev Gross Margin % Related Terms

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Ambev (ABEV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Beverages - Alcoholic » Ambev SA (NYSE:ABEV) » Definitions » Gross Margin %

Traded in Other Exchanges

ABEV:Mexico AMNA:Germany ABEV3:Brazil ABEV:Argentina

Address

Rua Doutor Renato Paes de Barros, 1017, 3rd Floor, Sao Paulo, SP, BRA, 04530-001

Website

https://www.ambev.com.br

Ambev is the largest brewer in Latin America and the Caribbean and is Anheuser-Busch InBev's subsidiary in the region. It produces, distributes, and sells beer and PepsiCo products in Brazil and other Latin American countries and owns Argentina's largest brewer, Quinsa. Ambev was formed in 1999 through the merger of Brazil's two largest beverage companies, Brahma and Antarctica. In 2004, Ambev combined with Canadian brewer Labatt, giving Interbrew (now AB InBev) a controlling interest of 61.8% as at the end of 2022.