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ambev AMBEV REPORTS 2021 FIRST QUARTER RESULTS UNDER IFRS São Paulo , May 06 , 2021 - Ambev S.A. [ B3 : ABEV3 ; NYSE : ABEV ] announces its results for the first quarter of 2021. 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 three - month period ended March 31 , 2021 filed with the CVM and submitted to the U.S. Securities and Exchange Commission ( " SEC " ) . OPERATING AND FINANCIAL HIGHLIGHTS Net revenue : Commercial momentum continued in the quarter , with net revenue up 27.8 % in 1Q21 , thanks to volume growing by 11.6 % and net revenue per hectoliter ( NR / hl ) increasing 14.5 % . Net revenue grew in Brazil by 26.1 % , in Central America and the Caribbean ( CAC ) by 28.2 % , in Latin America South ( LAS ) ¹ by 44.0 % , and in Canada by 1.6 % . In Brazil , volume was up 12.1 % and NR / hl increased 12.5 % . In CAC , volume was up 10.1 % and NR / hl grew by 16.5 % . In LAS , volume grew 12.5 % and NR / hl rose by 27.9 % . In Canada , volume grew by 2.4 % while NR / hl decreased by 0.9 % . Cost of goods sold ( COGS ) : COGS and cash COGS ( excluding depreciation and amortization ) were up 35.3 % and 38.6 % , respectively . On a per hectoliter basis , COGS grew by 21.3 % while cash COGS was up 24.2 % , mainly due to transactional currency and commodities prices headwinds , package mix impacts and inflationary pressures in Argentina . Selling , general & administrative ( SG & A ) expenses : SG & A and cash SG & A ( excluding depreciation and amortization ) were up 13.9 % and 16.2 % , respectively , mainly driven by variable compensation provision and higher distribution expenses , partially offset by Sales and Marketing phasing . EBITDA , gross margin , and EBITDA margin : EBITDA reached R $ 5,327.2 million , which corresponds to an organic growth of 23.8 % , with a gross margin of 52.3 % ( -260bps ) and EBITDA margin of 32.0 % ( -110bps ) . Normalized profit and EPS : Normalized profit was R $ 2,761.9 million , 124.9 % higher than in 1Q20 , due to higher EBITDA and better financial results . Normalized EPS was R $ 0.17 ( + 139.6 % ) . Cash generation and CAPEX : Cash flow from operating activities was R $ 2,836.9 million ( + 83.7 % ) and CAPEX reached R $ 1,327.3 million ( -1.4 % ) . Financial highlights - Ambev consolidated R $ million Volume ( ' 000 hl ) Net revenue Gross profit % Gross margin Normalized EBITDA % Normalized EBITDA margin 1Q20 39,011.5 12,602.6 6,959.4 55.2 % ambev.com.br 4,232.5 33.6 % Page | 1 Profit Normalized profit EPS ( R $ / shares ) Normalized EPS ( R $ / shares ) Note : Earnings per share calculation is based on outstanding shares ( total existing shares excluding shares held in treasury ) . 1,211.3 1,227.8 1Q21 43,530.2 16,639.8 8,694.4 52.3 % 5,327.2 32.0 % 0.07 0.07 2,733.3 2,761.9 % As Reported 11.6 % 32.0 % 24.9 % 0.17 0.17 -290 bps 25.9 % -160 bps 125.7 % 124.9 % 140.4 % 139.6 % % Organic 11.6 % 27.8 % 21.6 % -260 bps 23.8 % -110 bps 1 The impacts resulting from applying Hyperinflation Accounting for our Argentinean subsidiaries , in accordance with IAS 29 , are detailed in the section Financial Reporting in Hyperinflationary Economies - Argentina ( page 21 ) . Press release - May 6 , 2021