By Jeffrey T. Lewis


SAO PAULO--Ambev SA said Thursday its profit rose in the first quarter from a year earlier as sales of premium beers in Brazil continued to outpace other products.

The Sao Paulo-based company's net income increased to 3.5 billion reais, equivalent to $711 million, from 2.7 billion reais a year earlier. Net revenue reached 18.4 billion reais from 16.6 billion reais in the year-earlier period, and adjusted earnings before interest, taxes, depreciation and amortization rose to 5.5 billion reais from 5.3 billion reais.

Ambev is controlled by Anheuser-Busch InBev SA, the world's biggest beer producer, and brews and markets brands including Budweiser, Brahma and Corona. Brazil is Ambev's biggest market, but the company also operates in other countries in the Americas including Canada, Argentina and Chile.

The company said sales growth in Brazil of its premium beers was in the high teens and sales of its core portfolio was in the mid-single digits. Sales volumes of the Brazil beer segment rose 2.1%, and net sales revenue increased almost 14% to 8.1 billion reais.

Ambev said its costs continued to be pressured by higher commodities prices, with its cost of goods sold in the Brazil beer segment up more than 21% excluding depreciation and amortization.


Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

05-05-22 0727ET