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ambev Page | 1 AMBEV REPORTS 2020 FOURTH QUARTER AND FULL YEAR RESULTS UNDER IFRS São Paulo , February 25 , 2021 - Ambev S.A. [ B3 : ABEV3 ; NYSE : ABEV ] announces its results for the fourth quarter and full year of 2020. The following operating and financial information , unless otherwise indicated , is presented in nominal Reais and prepared according to the International Financial Reporting Standards ( " IFRS " ) issued by the International Accounting Standards Board ( " IASB " ) and to the accounting practices issued by the Brazilian Accounting Standards Committee ( " CPC " ) and approved by the Brazilian Securities and Exchange Commission ( " CVM " ) . The information herein should be read together with our financial information for the twelve - month period ended December 31 , 2020 filed with the CVM and submitted to the U.S. Securities and Exchange Commission ( " SEC " ) . OPERATING AND FINANCIAL HIGHLIGHTS Net revenue : Net revenue was up 13.4 % in 4Q20 , with volume growing by 7.6 % and net revenue per hectoliter ( NR / hl ) up 5.3 % . Net revenue grew in Brazil ( 19.0 % ) , Central America and the Caribbean ( CAC ) ( 0.2 % ) , Latin America South ( LAS ) ¹ ( 16.3 % ) , but was down in Canada ( -4.7 % ) . In Brazil , volume was up 10.6 % and NR / hl was up 7.6 % . In CAC , volume declined by 7.4 % and NR / hl grew by 8.3 % . In LAS , volume was up 6.2 % and NR / hl rose by 9.5 % . In Canada , volume decreased by 1.9 % while NR / hl decreased by 2.8 % . In the full year , on a consolidated basis , net revenue was up 4.7 % , with volume growing by 1.4 % and NR / hl growing by 3.2 % . Cost of goods sold ( COGS ) : In 4Q20 , COGS and cash COGS ( excluding depreciation and amortization ) were up 21.1 % and 22.5 % , respectively . On a per hectoliter basis , COGS grew by 12.5 % while cash COGS was up 13.8 % , mainly due to inflationary pressures in Argentina , transactional currency headwinds and package mix impacts . In the full year , COGS and cash COGS increased by 16.7 % and 18.2 % , respectively . On a per hectoliter basis , COGS rose by 15.0 % and cash COGS by 16.5 % . Selling , general & administrative ( SG & A ) expenses : SG & A and cash SG & A ( excluding depreciation and amortization ) were up 15.1 % and 17.6 % , respectively , due to phasing from previous quarters and supporting top line recovery in the markets where we operate . In the full year , SG & A grew by 6.7 % while cash SG & A grew by 7.1 % . EBITDA , gross margin and EBITDA margin : In 4Q20 , EBITDA reached R $ 8,937.2 million , which corresponds to an organic decrease of -0.1 % , with a gross margin of 55.8 % ( -280bps ) and EBITDA margin of 48.2 % ( -500bps ) . Our nominal EBITDA result includes benefits from tax credits in Brazil recognized in the fourth quarter ( see below ) . In the full year , EBITDA was R $ 21,591.5 million ( -11.1 % ) with gross margin and EBITDA margin reaching 53.6 % ( -480bps ) and 37.0 % ( -590bps ) , respectively . Normalized profit and EPS : Normalized profit was R $ 7,008.0 million in 4Q20 , 51.2 % higher than in 4Q19 , due to higher EBITDA and tax credits in Brazil . Normalized EPS was R $ 0.44 ( 52.9 % ) . For the full year , normalized profit decreased by 3.6 % , reaching R $ 12,104.3 million , with normalized EPS of R $ 0.75 ( -3.3 % ) . Impact of tax credits : Our Q4 results were positively impacted by R $ 4.3 billion tax credits related to litigation in Brazil with respect to the unconstitutionality of the ICMS state tax in the taxable basis of the PIS and the COFINS federal taxes . For summary , please refer to page 2 . Cash generation and CAPEX : Cash flow from operating activities was R $ 8,393.6 million ( -12.9 % ) and CAPEX reached R $ 1,394.4 million ( -30.4 % ) . For the full year , cash flow from operating activities grew to R $ 18,855.8 million ( 2.6 % ) and CAPEX decreased by 7.4 % to R $ 4,692.7 million . 1 The impacts resulting from applying Hyperinflation Accounting for our Argentinean subsidiaries , in accordance to IAS 29 , are detailed in the section Financial Reporting in Hyperinflationary Economies - Argentina ( page 25 ) . ambev.com.br Press release - February 25 , 2021