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A Brazilian brewing giant, Ambev makes the country's best-known beers and soft drinks — brands like Skol, Antarctica, and Brahma — along with Guaraná Antarctica and other everyday beverages. It came to life in 1999 when two longtime rivals, Brahma (founded 1888 by a Swiss immigrant) and Antarctica (founded 1885), merged to become the Americas' Beverage Company. Today it's part of Anheuser-Busch InBev, the world's largest brewer, and its Antarctica brand owes its frosty name to the Antarctic Ocean.
20-F · Fiscal year ended Dec 31, 2025 · SEC filing ↗
Ambev's 2025 operating margin rose to 22.0%, its highest since 2016, as cost discipline and a subsidiary sale offset a 3.3% volume decline.
Ambev's volumes fell across nearly every in 2025, but profitability still improved. rose 11.4% in USD to $16.1 billion and expanded 0.2 points to 22.0%, driven by a 4.7% drop in commercial and administrative expenses and a one-time gain from selling a Caribbean subsidiary. The company enters 2026 with higher input costs hedged at a weaker exchange rate, testing whether its pricing power can hold.
Key takeaways
Consolidated volumes declined 3.3% in 2025, with Brazil beer down 4.5% on adverse weather and softer consumer demand, while grew 2.1% from strategic management.
expanded to 22.0%, the highest since 2016, as commercial, distribution and administrative expenses fell 4.7% to R$25.1 billion on lower distribution costs and reduced variable compensation accruals.
swung to a net gain of R$643.3 million from a R$100.8 million expense, primarily from the sale of a Central America and Caribbean subsidiary and restructuring costs.
Section summaries
Quantitative and Qualitative Disclosures About Market Risk
Ambev manages commodity, interest rate, and foreign exchange risks through derivatives and policies, with key exposures in aluminum, sugar, and USD-linked costs.
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Commodity price risk is managed via derivatives for sugar, wheat, aluminum, corn, and resin, with aluminum representing the largest at R$3.73 billion and a positive of R$537.6 million.
Sugar and wheat derivatives show negative fair values of R$60.9 million and R$11.6 million respectively, indicating unrealized losses on those hedges as of December 31, 2025.
rose 21.6% in USD to $2.9 billion, aided by a lower of 17.7%—down from 23.8%—due to the subsidiary sale and tax incentive reversals.
fell 6.3% in local currency to R$24.5 billion on less efficient , though reported USD cash flow rose 5.8% to $4.5 billion.
The company increased its stake in Dominican Republic-based Tenedora to 97.11% and sold its controlling interest in SLU Beverages LTD., reshaping its Caribbean footprint.
What changed
The 2024 filing flagged the 2025 BRL/USD of 5.49 as a signal of higher input costs. That pressure materialized: Brazil beer cost per hectoliter rose 5.3% on FX and commodity pressures, partially offset by hedging and efficiencies.
Argentina's volume trajectory, a concern after a 10.0% decline in 2024, remained under pressure as Latin America South volumes fell further, though hyperinflation-driven pricing continued to support local-currency .
The Canada distribution uncertainty flagged in 2023 and 2024—stemming from Ontario's non-renewal of the Master Framework Agreement—remains unresolved, leaving Labatt's route to market in its largest province uncertain.
Brazil tax reform implementation, flagged as a material risk starting in 2026, is now imminent with a testing phase beginning, though specific rates and rules are still being defined.
The multi-year margin recovery that began in 2024 continued, with reaching 22.0%—the highest since 2016—driven more by cost discipline and one-time gains than by volume growth.
What to watch
2026 input costs: the average BRL/USD of 5.50 and continued commodity volatility will test whether pricing can offset higher costs without further volume losses.
Brazil beer volume recovery: after a 4.5% decline in 2025, whether demand stabilizes as weather and consumer conditions normalize.
Argentina hyperinflation: whether the Latin America South can sustain pricing power as consumer purchasing power erodes under President Milei's fiscal adjustment.
Brazil tax reform phase-in: the testing phase for the dual-VAT and excise tax on alcoholic and sugary drinks begins in 2026, with potential material changes to Ambev's cost structure.
Interest rate risk arises from both fixed and floating rate debt, with total debt of R$3.39 billion; floating rate Reais debt linked to averaged a pay rate of 9.56%.
Foreign exchange risk is primarily against the U.S. dollar, with R$953.0 million in foreign currency-denominated liabilities; the company uses NDFs, futures, and options, with NDF US$ x R$ contracts having a notional of R$7.75 billion and a negative of R$353.2 million.
The company's risk management framework includes an Enterprise Risk Management (ERM) strategy that integrates market, compliance, strategic, and operational risks, with a dedicated department overseeing mitigation.
Credit risk on derivative and investment counterparties is minimized by transacting only with highly qualified institutions under policies that set exposure limits based on credit ratings and capitalization.
Ambev faces material risks from Brazilian economic volatility, currency devaluation, complex tax litigation, and evolving regulatory changes including a major consumption tax reform.
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A devaluation of the Brazilian real or other operating currencies against the U.S. dollar significantly increases Ambev's costs, as a large portion of its debt and key input costs like aluminum and PET are dollar-linked.
A comprehensive Brazilian tax reform will replace several indirect taxes with a dual-VAT system and introduce a new excise tax on alcoholic and sugary drinks, with a testing phase starting in 2026 and full implementation by 2033.
Ambev's in Brazil is growing due to a highly litigious environment, with R$5.42 trillion in tax credits under national dispute, and recent Supreme Court decisions have created legal uncertainty by allowing the overturn of final, unappealable tax rulings.
Operations in Argentina are exposed to hyperinflationary conditions and political volatility under President Milei's aggressive fiscal-adjustment agenda, which could restrict Ambev's ability to access funds and impact profitability.
The company's Cuban joint venture, Bucanero, faces heightened risk from the reinstatement of Cuba's designation as a state sponsor of terrorism and the activation of Title III of the Helms-Burton Act, exposing Ambev to potential U.S. litigation and reputational damage.
New and proposed sustainability regulations, including Brazil's regulated carbon market (SBCE) and mandatory ISSB-aligned reporting, will require significant operational adaptation and may increase compliance costs.
Ambev is the largest brewer in Latin America, operating across four segments: Brazil, Central America and the Caribbean, Latin America South, and Canada.
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The company produces, distributes, and sells beer, carbonated soft drinks (CSDs), and other beverages in 11 countries across the Americas.
Brazil is the dominant , accounting for 55.6% of in 2025, with the Skol, Brahma, and Antarctica brands leading the beer market.
Ambev's strategy focuses on leading category growth, digitizing its ecosystem via the BEES platform and Zé Delivery app, and optimizing its business.
The company holds exclusive PepsiCo bottling rights in several key markets, including Brazil and Argentina, and licenses major ABI brands like Budweiser and Stella Artois.
In 2025, Ambev increased its stake in Dominican Republic-based Tenedora to 97.11% and sold its controlling interest in SLU Beverages LTD., which held Caribbean assets.
Sustainability is a core operational focus, with the company achieving its 2025 goals for smart agriculture, water stewardship, and emissions intensity reduction.
Consolidated net sales fell 1.4% to R$88.2B in 2025 on 3.3% lower volumes, while income from operations rose 7.0% to R$23.3B driven by cost discipline and exceptional gains.
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Total volumes declined 3.3% in 2025, with Brazil beer down 4.5% due to adverse weather and softer consumer demand, while grew 2.1% overall from strategic management.
expanded 20 to 51.4% as cost of sales fell 1.7%, with Brazil beer cost per hectoliter up 5.3% on FX and commodity pressures, partially offset by hedging and efficiencies.
Commercial, distribution and administrative expenses decreased 4.7% to R$25.1B, reflecting lower distribution costs from reduced volumes and lower variable compensation accruals across most segments.
swung to a net gain of R$643.3M from a R$100.8M expense, primarily due to the sale of a CAC subsidiary and restructuring costs for organizational improvements.
Net finance costs rose 72.6% to R$4.0B on higher FX losses and hedging carry costs, while the fell to 17.7% from 23.8% due to the CAC subsidiary sale and tax incentive reversals.
decreased 6.3% to R$24.5B on less efficient , and the company expects 2026 input costs to increase with an average BRL/USD hedge rate of 5.50 and continued commodity volatility.