By Jeffrey T. Lewis


SÃO PAULO--Ambev's shares were 3.8% higher after the Brazil-based brewer's earnings report for the third quarter showed profit increased despite lower sales.

Shares reached 12.83 reais, the equivalent of $2.54, and were down 15% from the end of last year through Monday's close. Brazil's benchmark Ibovespa stocks index was up 0.1% in mid-morning trading.

Ambev posted net income of BRL4.0 billion from BRL3.2 billion a year earlier, while sales fell to BRL20.3 billion from BRL20.6 billion a year earlier. Profit was helped by lower commodities costs, especially for aluminum, Ambev said.

Ambev's results showed a continuing recovery of the Brazil-based brewer's margins, said XP Investimentos analysts Leonardo Alencar and Pedro Fonseca in a research note. The Brazil beer market was the highlight of the earnings report, led by sales growth for the company's premium brands, XP said.


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


(END) Dow Jones Newswires

10-31-23 1016ET