$Ambev SA (ABEV.US)$🎯 On March 19, 2024, the current price ...

New data: Q4 2023, revenue shrinks for the second consecutive quarter (11.9%). Operating profit increased by 7.1% due to the improvement in gross margin and reduction in expenses. Pre-tax net profit increased by 9.2%, but after the impact of income tax, the net profit decreased by 10.9%.

In 2023, the revenue remained almost unchanged, while operating profit increased by 7.8% and net profit increased by 0.5%.

The asset-liability ratio has almost not changed, the total assets have slightly shrunk, cash on the asset side and revenue receivables have increased, inventory has decreased significantly, and derivative liabilities on the liability side have decreased significantly.

Currently, the PE ratio is 13.5, the dividend yield is 6.1%, and the revenue growth is beginning to stagnate. The recent methods of increasing gross margin and reducing expenses to improve profits are not sustainable for long-term growth. However, the valuation is still within a reasonable range, so we are currently adopting a wait-and-see approach.