Ambev S.A.

Ambev's revenues are repeat-purchase consumer goods with no formal contract or subscription structure providing forward visibility. Revenue in BRL terms was broadly stable across FY2021 through FY2024, but carries meaningful sensitivity to consumer spending, weather, and FX; management cited unfavorable weather conditions as a factor in FY2025 volume pressure. This is typical FMCG predictability with neither a durable recurring revenue base nor unusual revenue volatility.

Brazil Beer alone represents approximately 45% of consolidated net revenue in FY2025, and all five reporting segments are consumer beverages correlated to the same discretionary-spending cycle. The Brazil NAB segment provides modest differentiation but does not decouple the overall business from beverage category demand.

Brazil contributed approximately 55.6% of net revenue in FY2025 per the Form 20-F filing, with Latin America South at 21.8%, the Caribbean and Central America at 12.7%, and Canada at 11.6% rounding out the mix. Brazil's dominance above 55% creates single-country concentration risk, amplified by BRL currency exposure and sensitivity to Brazil's economic cycle.

Consolidated EBITDA margin reached approximately 33.4% in FY2025, the third consecutive year of margin expansion, driven by cost discipline and revenue management across a capital-intensive brewery network. Brewing requires ongoing heavy investment in production capacity, as illustrated by Heineken's R$1.2 billion capacity expansion in 2025, constraining the structural operating leverage available to any incumbent in the sector.

Core revenue is transactional consumer beverage purchases with minimal contractual lock-in. The BEES B2B digital platform creates some stickiness with retail partners by digitizing ordering and trade-marketing workflows, but retailers are not contractually bound and can work with multiple distributors. Premium brands, representing 22% of Brazil beer volumes in FY2025, are a quality improvement direction but do not change the fundamentally transactional nature of the revenue base.