Q2 2026 Ambev SA Earnings Call

Speaker #1: Good afternoon, and thank you for waiting. We would like to welcome everyone to Ambev's 2026 Q2 conference call. Today with us we have Mr. Carlos Lisboa, Ambev CEO, and Mr. Guilherme Flori, CFO and investor relations officer.

Speaker #1: As a reminder, this conference presentation is available for download on our website ri.ambev.com.br, as well as through the webcast link. We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the company's presentation.

Speaker #1: After Ambev's remarks are completed, there will be a Q&A session during which we kindly ask that each participating sell-side analyst ask one-on-one questions. Before proceeding, let me mention that forward-looking statements are being made under the Safe Harbor of the Securities Litigation Reform Act 1996.

Speaker #1: Forward-looking statements are based on the beliefs and assumptions of Ambev's management, and all information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to the future events and therefore depend on circumstances that may or may not occur in the future, investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Ambev and could cause results to the firm materially from those expressed in such a forward-looking statements.

Speaker #1: I would also like to remind everyone that, as usual, the percentage changes that will be discussed during the day's call are both organic and normalized in nature, and unless otherwise stated, precedent changes refer to comparison with 2025 Q2 results.

Speaker #1: Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of Ambev's normally activities.

Speaker #1: As normalized figures are non-gap measures, the company discloses the consolidated profit, APS, operating profit, and EBITDA on the fully reported basis in the earnings release.

Speaker #1: Now, I will turn the conference over to Mr. Carlos Lisboa. Mr. Lisboa, you may be in your conference.

Speaker #2: Good afternoon, everyone, and thank you for joining our Q2 earnings call. Across our footprint, football is part of our culture, one of the strongest passion points that bring people together, and beer has a unique role in creating such special moments.

Speaker #2: I want to congratulate all the national teams from our markets that represented their countries in the FIFA World Cup. I also want to recognize our teams for their outstanding execution across Ambev's footprint.

Speaker #2: Moments like these are also where our company stands out. The World Cup is one of the toughest execution tests in our industry, the challenge goes beyond activating a campaign; it is about turning a tournament into a semester-long platform, activating a portfolio rather than a single brand, and connecting consumers and customers across countries, channels, and millions of points of sale while building engagement that lasts beyond the final whistle.

Speaker #2: Across our markets, our brands were among those most associated with the event. We did not just take part of the World Cup; we helped shape the category through it.

Speaker #1: AMBEV S.A. Management, and only. Information currently available to the company. They involve risks. Uncertainties and assumptions. Because they relate to the future events and therefore depend on circumstances that may or may not occur in the future.

Speaker #2: While the World Cup has come to an end, our own game has only reached halftime. Ambev's performance continues to strengthen in the second quarter.

Speaker #1: Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of AMBEV and could cause results to vary in the future.

Speaker #2: With its quality and shape, improving versus Q1. Volumes provided a much stronger contribution, growing 1.4% year over year, with beer up mid-single digits. Discipline revenue management and resource allocation supported net revenue growth of 6%, and normalized EBITDA growth of 9%, even as we stepped up investment behind our brands.

Speaker #1: Materially from those expressed in such a forward-looking statement. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during today's call are both organic and normalized in nature, and unless otherwise stated, preceded change referred to comparison with 2025's second quarter results.

Speaker #1: Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of Ambev's normal activities.

Speaker #2: As a highlight, our normalized EPS grew 24%. Looking at the movie rather than the picture, the first half provides a broader view. Total volumes grew 0.7%, with beer volumes growing well ahead of the total.

Speaker #1: As normal figures are gap measures, the consolidated APS operating profit reported base rates. Now, conference opens Carlos Lisboa. Lisboa, you may be new to the conference.

Speaker #2: Net revenue grew 7%, normalized EBITDA increased 10%, implying 1.3 times operational leverage, and normalized EPS also grew 10%. Operating cash flow reached $8 billion, one of Ambev's highest first-half levels.

Speaker #2: Good afternoon, everyone. Thank you for joining our second quarter call. One of the most interesting points that bring together here has a unique role for a moment.

Speaker #2: As we enter the second half, we are building a business with stronger foundations, and designed to deliver compound profitable growth over time. Behind this progress is our three pillar growth strategy.

Speaker #2: I want to congratulate all national teams from our heart that represented their countries in the future. I also recognize our teams for their outstanding efforts, and also where our company stands—one of the toughest tests in our industry.

Speaker #2: Starting with pillar one, lead and grow the category. This quarter, we advanced on both dimensions: on lead, we strengthened both brand equity and market share across our five largest markets.

Speaker #2: On growth, share gains and improving industry conditions supported beer volume growth in markets that represent over 80% of our volumes, mainstream continued to improve sequentially, with volumes only slightly below last year.

Speaker #2: The challenge goes beyond just our own journey—it's about a long-term platform, a single brand connecting customers across millions of sales, while building more beyond the final markets. Among those associated, we did not just take part in the Cup to help categories, while the World Cup has come to an end.

Speaker #2: We continue to lead the high-growth segments with a broad and complementary portfolio. Premium remained a key growth engine, growing nearly 20%. Balanced choices grew more than 60%.

Speaker #2: No alcohol beer grew around 20%, and flavored beer and RTDs maintained momentum. Mikel Urrutia shows how we scale a relevant consumer proposition across markets.

Speaker #2: It more than tripled in Brazil and Argentina during the quarter, grew over 50% across our footprint, and is now present in nearly all our markets, connecting with consumers seeking a more active and balanced lifestyle.

Speaker #2: In the second quarter, we did quality and shape improving versus Q1. Volumes provided a much stronger contribution, growing 1.4% year over year, with beer up single digits.

Speaker #2: This takes us to pillar two, digitize and monetize our ecosystem. Our digital ecosystem has become a key lever for category development. In an increasingly dynamic environment, a broader portfolio creates greater complexity.

Speaker #2: Disciplined revenue management and resource allocation drove growth of 6%, and normalized EBITDA grew by 9%, even as we stepped up investment behind our brands.

Speaker #2: As a highlight, our normalized EPS grew 24%. Looking at the movie rather than the picture, first-half Rights Total volumes grew 0.7%, with beer volumes growing well ahead of the total.

Speaker #2: These enable us to manage that complexity with greater precision, strengthening the core while accelerating the new engines of category growth. It is not just a technical backbone; but an execution powerhouse that creates efficiencies, and improves how we operate every day.

Speaker #2: Net revenue grew 7%. Normalize a bit increased 10% implying 1.3 times operational leverage and normalize EPS also grew 10%. Operating cash flow reached 8 billion one of AMBEV's highest first half levels.

Speaker #2: We breed demand faster, and more accurately, help customers increase sell-out through better recommendations, and allocate resources to the highest return opportunities. This strengthens our performance while helping our partners grow.

Speaker #2: As we enter the second half, we are building a business with strong foundations and designed to deliver compound profitable growth over time. Behind this progress is our three pillar growth strategy.

Speaker #2: As reflected in the continued improvement in our NPS, Ambev bees marketplace GMV grew around 60% in both the second quarter and the first half.

Speaker #2: Starting with pillar one: lead and grow the category. This quarter, we advanced on both dimensions. On lead, we strengthened both brand equity and market share across our five largest markets.

Speaker #2: In the first half, gross margin expanded 6.7 percentage points year over year, reaching 22%. In Brazil, marketplace GMV doubled in the first half, with 3P as the main driver.

Speaker #2: On grow share gains and improving industry conditions support be volume growth in markets that represent over 80% of our volumes mainstream continue below last year.

Speaker #2: Another pillar three, optimize our business. This pillar creates the flexibility to deliver on both of our capital allocation priorities. Investing behind opportunities that drive long-term growth while consistently returning excess cash to shareholders.

Speaker #2: We continue to lead the high growth segments with a broad and complementary portfolio. Premium remain a key growth engine growing nearly 20%. Balance choices grew more than 60%.

Speaker #2: In the quarter, we stepped up investments behind our brands. While expanding normalized EBITDA margin by 80 basis points. That discipline together with solid cash generation allowed us to advance our share buyback program and announce an additional IOC distribution this quarter.

Speaker #2: No alcohol beer grew around 20% and flavor beer and RTDs maintain momentum. Mika Butra shows a relevant consumer proposition across markets. It more than triple in Brazil and Argentina.

Speaker #2: During the quarter grew over 50% across our footprint and is now present in nearly all our markets with consumers seeking a more active and balanced lifestyle.

Speaker #2: Together, the three pillars reinforce one another, creating a flywheel that strengthens the company and supports sustainable profitable growth. Before moving to our key markets, let me highlight the breadth of our performance.

Speaker #2: This take us to pillar two, digitize and monetize our ecosystem. Our digital ecosystem has become a key lever for category development. In amazingly dynamic environment, a broader portfolio creates greater complexity.

Speaker #2: In both the second quarter and the first half, beer volumes grew or remained broadly stable in 7 of our 10 largest markets, while net revenue and EBITDA grew across all business units.

Speaker #2: Bees enable us to manage that complexity with greater precision, strengthening the core accelerating the new engines of category growth. It is not just a technical backbone.

Speaker #2: Showcasing that our progress was not dependent on any single market or growth lever. Starting with Brazil beer, continued commercial momentum, supported another solid quarter.

Speaker #2: But an execution powerhouse that creates efficiencies and improves how we operate every day. We lead demand faster and more accurately help customers increase allowed through better recommendations.

Speaker #2: The beer industry continued to improve sequentially. According to Newsom, sell-out improved, from as high single-digit decline in the second half of 2025 and mid-single-digit decline in the first quarter, to a slight decline in Q2.

Speaker #2: And allocate resources to the highest return opportunities. This strengthens our performance while helping our partners grow as reflected in the continued improvement in our NPS.

Speaker #2: Newsom's measurement calendar ended around June 20, capturing only the early part of the World Cup period. Extending the analysis through month-end and across our broader coverage, we estimate that the industry was slightly positive in the quarter.

Speaker #2: AMBEV bees marketplace GMV grew around 60% in both the second quarter and the first half. In the first half, gross margin expanded 6.7% points year over year reaching 22%.

Speaker #2: The World Cup created incremental demand across channels and regions; nevertheless, it was offset by adverse weather conditions. Average temperatures remained below last year and well below 2024.

Speaker #2: In Brazil, we placed GMV double in the first half, with 3P as the main driver. And under pillar three, optimize our business. This pillar creates the flexibility to deliver on both of our capital priorities.

Speaker #2: On a two-year comparison, our industry modeling indicates that adverse weather accounts for the full industry volume gap versus 2024. Even so, our consumer tracking shows sequential improvement in category equity and participation, reinforcing our confidence in the category's resilience in a dynamic consumer and macroeconomic environment.

Speaker #2: Investing behind opportunities that drive long-term growth while consistently returning excess cash to shareholders. In the quarter, we stepped up investments behind our brands. While expanding normalize a bit the margin by 80 base points.

Speaker #2: That discipline, together with solid cash generation, allowed us to advance buyback and announce an additional IOC distribution. Together, the three pillars reinforce one another, creating a flywheel that strengthens the company and supports sustainable, profitable growth.

Speaker #2: Through that, our business continued to outperform. Market share expanded year over year for the fourth consecutive quarter, consolidating the commercial momentum of our business in Brazil.

Speaker #2: We estimate that our share increased across mainstream, premium, balanced choices, and beyond beer. Brand equity continued to improve, while price relativity remained broadly stable versus last year.

Speaker #2: Before moving to our key markets, let me highlight the breadth of our performance. In both the second quarter and the first half, beer volumes grew or remained broadly stable in seven of our 10 largest markets while net revenue and a bit grew that was not dependent on any single market or growth lever.

Speaker #2: This quarter, marked one full year since we regained leadership in premium, with our share of the segment reaching an all-time high. Premium grew in the mid-20s and reached approximately 25% of our beer volumes.

Speaker #2: This performance reflects our new premium architecture, with each brand anchored to this consumer need status. Original for authenticity and simplicity. Stella Artois for quiet luxury.

Speaker #2: Starting with Brazil beer continue commercial momentum supporter another core. The beer industry continue to improve according to new sell improved from a single digit decline half of 2025 and mid single digit decline in first quarter to a slight decline in Q2.

Speaker #2: Corona for the outdoors and natural living. And Michelob Ultra for an active and balanced lifestyle. The recent announcement of Spaten Pro takes this architecture into a new space, combining premium credentials with zero alcohol and 10 grams of protein to expand balanced choices into new occasions.

Speaker #2: The new measurement calendar ended around June 20, capturing only the early part of the World Cup period. Extending the analysis through month-end and across our broader view, we estimate that the industry was slightly positive in the quarter.

Speaker #2: Balanced choices volumes double versus last year, while no alcohol grew in the 30s. Mainstream was broadly stable, delivering a significant improvement from a mid-single-digit decline in the first quarter.

Speaker #2: The World Cup created incremental demand across channels and regions; nevertheless, it was offset by adverse weather conditions. Average temperatures remained below last year and well below 2024.

Speaker #2: Together, improving industry conditions and market share progression supported 5% beer volume growth. Serving this portfolio across more than 1 million points of sale requires precision at scale.

Speaker #2: On a two-year comparison, our industry modeling indicates that adverse weather accounts for the full industry volume gap. Even so, our consumer tracking shows sequential improvement in category equity and participation, reinforcing our confidence in the category's resilience in a dynamic consumer and macroeconomic environment.

Speaker #2: Our digital ecosystem provides that capability. Through this, we improved assortment, placed the right SKUs in each outlet, and activated our World Cup platform nationwide.

Speaker #2: Beer distribution grew more than 6%, with returnable bottles up over 4%, and premium over 20%. On the consumer side, that delivered GMV grew 16% versus last year, while others more than doubled on the Brazilian national team match days.

Speaker #2: Our business market share expanded year over year for the fourth consecutive quarter, consolidating the commercial momentum of our business in Brazil. We estimate that our share increased across mainstream, premium, balanced choices, and beyond beer.

Speaker #2: That also gave us a real-time view of where the category is heading. Premium already represents 35% of beer volumes on the platform, while balanced choices reached approximately 7%, nearly twice the weight in Brazil beer.

Speaker #2: Brand equity continue to improve while price relativity remain broadly stable versus last year. This quarter marked one full year since we regained leadership in premium with our share of the segment reaching an all-time high.

Speaker #2: This combination translated into net revenue growth of 9%, EBITDA growth of 13%, and 110 basis points of margin expansion, while we continue to invest behind our brands.

Speaker #2: Premium grew in the mid-20s and reached approximately 25% of our beer volumes. This performance reflects our new premium architecture, with each brand anchored to distinct consumer need states.

Speaker #2: In Brazil NAB, sequential improvement, although the job is not done yet. The recovery has taken longer than expected, and volumes decline 4.4% in the quarter.

Speaker #2: Original for authenticity and simplicity. Stellar for quiet luxury. Corona for the outdoors and natural living. And Michelob Ultra for an active and balanced lifestyle.

Speaker #2: Around 30% of the decline reflected our decision to phase out volumes from a lower return channel. Adjusting for this decision, volume performance improved versus the first quarter.

Speaker #2: The recent announcement of Sping Pro takes this architecture into a new space, combining premium credentials with zero alcohol and 10 grams of protein to explain balanced choices into new occasions.

Speaker #2: By the end of the first half, we had also cycled the toughest comparison base of the year. Market share progressed sequentially, approaching historical levels by the quarter end, as price relativity pressures eased.

Speaker #2: Balanced choices volumes doubled versus last year, while no-alcohol grew in the 30s. Mainstream was broadly stable, delivering a significant improvement from a mid decline in the first quarter.

Speaker #2: Throughout the period, we continue investing behind our brands to regain momentum, while maintaining discipline in revenue management and protecting profitability. As a result, Brazil NAB delivered double-digit EBITDA growth, with more than 300 basis points of margin expansion in both the quarter and the first half.

Speaker #2: Together, improving industry conditions and market share progression supported 5% at scale. Our digital ecosystem provides capability through BEES. We improve assortment, place the right SKUs in each outlet, and activated our World Cup platform nationwide.

Speaker #2: In last, we had two distinct realities within this quarter. In Bolivia, temporary social unrest enrolled blockades disrupted mobility and logistics for much of the period, leading to a double-digit volume decline.

Speaker #2: The situation has since normalized, and our operations are running normally. Argentina by contrast was a highlight. Our beer volumes grew low single-digit, lapping growth in the same quarter last year, supported mainly by continued market share momentum and improving industry and the national team's World Cup performance.

Speaker #2: Premium grew high single-digit, led by Stella Artois and Corona. Balanced choices reached a mid-single-digit mix of our beer volumes, supported by the launch of Michelob Ultra and Stella Pure Gold.

Speaker #2: Beer distribution grew more than 6%, with returnable bottles up over 4% and premium over 20%. On the consumer side, delivered GMV grew 16% versus last year, while others more than doubled on the Brazilian national team match days.

Speaker #2: Mainstream was broadly stable, with Kiyomizu strengthening brand equity and mainstream share. This is the same category development playbook we are executing in Brazil. Scaling premium and developing balanced choices while continuing to strengthen mainstream.

Speaker #2: That also gives us a real-time view of where the category is heading. Premium already represents 35% of beer volumes on the platform, while balance choices reached approximately 7%, nearly twice the weight in the Brazil beer market.

Speaker #2: And the Dominican Republic, our business delivered mid-single-digit volume growth in the quarter, despite adverse weather conditions in April. The consumption environment remained constructive, supported by a favorable macro backdrop and healthy price relativity versus other alcoholic beverage.

Speaker #2: This combination translated into net revenue growth of 9%, EBITDA growth of 13%, and 110 basis points of margin expansion, while we continue to invest behind our brands.

Speaker #2: Beer continued to gain share within alcoholic beverage, and our volumes grew high single-digits in the first half. Premium grew more than 40%, led by Corona and Michelob Ultra, while mainstream grew low single-digit, supported by presidente and the one in the first half.

Speaker #2: In Brazil, NAB showed sequential improvement, although the job is not done yet. The recovery has taken longer than expected, and volumes declined 4.4% in the quarter.

Speaker #2: Around 30% of the decline reflected our decision to phase out volumes from a lower-return channel. Adjusting for this decision, volume performance improved versus the first quarter.

Speaker #2: Presidente's brand equity remained strong, reinforcing its leadership and cultural connection with Dominican consumers. Finally, in Canada, we continue to outperform in a dynamic environment.

Speaker #2: By the end of the first half, we had also cycled the toughest comparison base of the year. Market share progression sequentially approached levels by the quarter end, as price relativity pressures eased.

Speaker #2: The beer industry decline low single-digit, as unfavorable weather and softer consumer demand weighted on performance. Trends nevertheless improved from the first quarter, supported by FIFA World Cup occasions.

Speaker #2: Throughout the period, we continued investing behind our brands to regain momentum while maintaining discipline in revenue management and protecting profitability. As a result, Brazil NAB delivered double-digit EBITDA growth, with more than 300 basis points of margin expansion in both the quarter and the first half.

Speaker #2: We gained market share in both beer and beyond beer. Within beer, Michelob Ultra continued to lead the development of balanced choices, while Bush strengthened our mainstream performance.

Speaker #2: In beyond beer, mics and cut water remained important growth drivers. As a result, Canada delivered low single-digit top-line growth alongside low to mid-single-digit EBITDA growth and margin expansion.

Speaker #2: In the last quarter, we had two distinct realities. In Bolivia, temporary social unrest and road blockades disrupted mobility and logistics for much of the period, leading to a double-digit volume decline.

Speaker #2: In both the quarter and the first half. With that, I will now turn it over to Flori for the financial highlights.

Speaker #2: The situation has since normalized, and our operations are running normally. Argentina, by contrast, was a highlight. Our beer volumes grew low single digit, lapping growth in the same quarter last year, supported mainly by continued market share momentum, an improving industry, and the national team's World Cup performance.

Speaker #1: Thank you, Lisboa. Hello and good afternoon, everyone. As we close the first half of the year, our financial performance reflects the mindset that has guided us over the past quarters.

Speaker #1: To create value, through disciplined resource allocation, focusing on what we can control. In the first half of 2026, we delivered 9.6% normalized EBITDA growth with margin expansion across all of our business units, as well as 10.1% growth in normalized net income.

Speaker #2: Premium grew high single digit led by Stellar and Corona. Balance choices reached a mid single digit mix of our beer volumes supported by the launch of Michelob Ultra and Stella Pure Gold.

Speaker #1: Stated EBITDA grew 2.5% and stated net income increased by 11.6% in the period. From a cash flow perspective, our first half performance allowed us to continue executing our capital allocation priorities.

Speaker #2: Mainstream was broadly stable, with Kilmis strengthening brand equity and mainstream share. This is the same category development playbook we are executing in Brazil: scaling premium and developing balanced choices while continuing to strengthen mainstream.

Speaker #1: Of investing in the organic growth of our business, while also returning excess cash to shareholders over time. The first half performance was supported by another quarter of consistent execution of our growth strategy.

Speaker #2: In the Dominican Republic, our business delivered mid-single digits volume growth in the quarter, despite adverse weather conditions in April. The consumption environment remained constructive, supported by a favorable macro backdrop and healthy price relativity versus other alcoholic beverages.

Speaker #1: Now, let me walk you through the second quarter highlights. Starting with operating performance. Normalized EBITDA grew 8.9% in the period, reaching 6.4 billion reais with 80 basis points of margin expansion.

Speaker #2: Beer continued to gain share within alcoholic beverages, and our volumes grew high single digits in the first half. Premium grew more than 40%, led by Corona and Michelob Ultra, while mainstream grew low single digits, supported by Presidente and The One in the first half.

Speaker #1: This reflects disciplined decisions across cost, expenses, and revenue management, allowing us to expand both gross margin and EBITDA margin. While stepping up investments behind our brands during the FIFA World Cup.

Speaker #2: President's brand equity remained strong, reinforcing its leadership and cultural connection with Dominican consumers. Finally, in Canada, we continued to outperform in a dynamic environment. The beer industry declined low single digits, as unfavorable weather and softer consumer demand weighed on performance.

Speaker #1: Consolidated cash cogs per hectoliter, excluding marketplace, increased by 2.2% in the period, supported by continued productivity and operational efficiencies across our footprint. Here, it is worth noting that in the first half of the year, Brazil beer cash cogs per hectoliter, excluding marketplace products, increased by 9.7%, while our full-year guidance remains unchanged, at between 4.5% and 7.5%.

Speaker #2: Trends nevertheless improved from the first quarter, supported by FIFA World Cup occasions. We gained market share in both beer and beyond beer. Within beer, Michelob Ultra continued to lead the development of balanced choices, while Busch strengthened our mainstream performance.

Speaker #2: In Beyond Beer, MICs and Cutwater remain important growth drivers. As a result, Canada delivered low single-digit topline growth alongside low to mid single-digit EBITDA growth and margin expansion.

Speaker #1: Consolidated cash SG&A grew by 10.7% in the quarter, mainly driven by higher sales and marketing expenses, reflecting a portion of brand activations during the FIFA World Cup.

Speaker #2: In both the quarter and the first half. With that, I will now turn it over to Chloe for the financial highlights. Thank you, Lisboa.

Speaker #1: As we mentioned during our first quarter earnings call, these expenses tend to follow the timing of our MAG events calendar and Q2, reflected that.

Speaker #2: Hello, and good afternoon, everyone. As we close the first half of the year, our financial performance reflects the mindset that has guided us over the past quarters.

Speaker #1: Distribution expenses also increased in the period, mostly due to volume performance as well as one-off expenses in LAS, as part of restructuring initiatives in Argentina.

Speaker #2: To create value through disciplined resource allocation, focusing on what we can control. In the first half of 2026, we delivered 9.6% normalized EBITDA growth with margin expansion across all of our business units, as well as 10.1% growth in normalized net income.

Speaker #1: Taken together, these results illustrate how we think about resource allocation. Our cost PMO initiative that started last year is based on a continuous improvement mindset, together with choices, to focus on growing return on invested capital.

Speaker #1: Ultimately, freeing up resources to reinvest in our strategic priorities and pursue our ambition of delivering consolidated margin expansion over time. On administrative expenses, it is important to remember that the effect of lower volumes in 2025 impacted our bonus accruals in the second half of last year, creating a potentially tougher comparison base going forward.

Speaker #2: Stated revenue grew 2.5% and stated net income increased by 11.6% in the period. From a cash flow perspective, our first-half performance allows us to continue executing our capital allocation priorities.

Speaker #2: ...of investing in the organic growth of our business while also returning excess cash to shareholders over time. The first-half performance was supported by another quarter of consistent execution of our growth strategy.

Speaker #1: Now, moving to below EBITDA lines. Net financial expenses totaled 486 million reais in the quarter, a 50% reduction versus the same period of last year.

Speaker #2: Now, let me walk you through the second quarter highlights, starting with operating performance. Normalized EBITDA grew 8.9% in the period, reaching R$6.4 billion, with 80 basis points of margin expansion.

Speaker #1: Mainly explained by two positive non-cash factors in the non-derivative instruments line. First, in Bolivia, following an approximately 40% devaluation of the local currency in late June, we had a positive effect coming from the conversion of hard currency held in the company.

Speaker #2: This reflects discipline in decisions across cost, expenses, and revenue management, allowing us to expand both gross margin and margin per marketplace, which increased by 2.2% in the period, supported by continued productivity and operational efficiency across our footprint.

Speaker #1: This reserves were built to securely liquidity to meet expected foreign currency obligations, including payments to certain suppliers and dividends remittances. Second, a positive effect that came from other markets, where local currencies were more stable during the quarter, resulting in lower conversion losses on monetary balances compared to last year.

Speaker #2: Here, it is worth noting that in the first half of the year, Brazil beer cash COGS per hectoliter, excluding marketplace products, increased by 9.7%, while our full-year guidance remains unchanged at between 4.5% and 7.5%.

Speaker #1: On the Bolivia devaluation, it is worth noting that our consolidated income statement reflects average monthly effects rates, as required under the applicable accounting standards.

Speaker #1: As a result, going forward, the local currency devaluation is expected to gradually create a negative translation impact on our financial and operational results. Turning to income taxes, our consolidated effective tax rate in the quarter was 19.9%, compared to 18.4% in the second quarter of 2025, reflecting country-mix effects over higher earnings before taxes partially offset by regular income tax attributes.

Speaker #2: Consolidated cash SG&A grew by 10.7% in the quarter, mainly driven by higher sales and the effect of brand activation during the FIFA World Cup. As mentioned during our first quarter earnings call, we tend to follow the timing of our MAG events calendar, and this was reflected.

Speaker #2: Distribution expenses also increased in the period, mostly due to volume performance, as well as one-off expenses in COGS as part of restructuring initiatives in Argentina.

Speaker #1: In the first six months of the year, our ETR was 20.6%, broadly in line with the 20.3% recorded in the first half of 2025.

Speaker #2: Taken together, these results illustrate how we think about resource allocation. Our cost PMO initiative, which started last year, is based on a continuous improvement mindset.

Speaker #1: As a result, both normalized and stated net income reached about 3.5 billion reais, increasing 23.3% and 24.5% respectively versus last year. Normalized and stated earnings per share reached 22 cents of Brazilian reais representing respectively a 24.2% and 25.4% increase versus last year.

Speaker #2: Together with choices to focus on growing return on invested capital, ultimately freeing up resources to reinvest in our strategic priorities and pursue our ambition of delivering consolidated margin expansion over time.

Speaker #2: On administrative expenses, it is important to remember that the effect of lower volumes in 2025 impacted our bonus accruals in the second half of last year.

Speaker #1: Now, turning to cash flow generation, let's go beyond the quarter and look at our performance in the first half of the year. Cash flow from operating activities totaled 7.9 billion reais, an increase of 3.6 billion reais representing over 80% improvement versus the same period of last year.

Speaker #2: Creating a potentially tougher comparison base going forward. Now, moving to below EBITDA lines. Net financial expenses totaled 486 million reais in the quarter, a 50% reduction versus the same period of last year.

Speaker #2: This was mainly explained by two positive non-cash factors in the non-derivative instruments line. First, in Bolivia, following an approximately 40% devaluation of the local currency in late June, we had a positive effect coming from the conversion of hard currency held in the company.

Speaker #1: This was mainly driven by higher EBITDA and improved working capital dynamics, with payables reflecting our volume performance. Cash flow used in investing activities totaled 3.3 billion reais, 1.5 billion reais higher than in the first half of 2025, primarily reflecting the deconsolidation of assets previously reported as restricted cash in CAC, as disclosed in our first quarter's financial statement.

Speaker #2: These reserves were built to securely provide liquidity to meet expected foreign currency obligations, including payments to certain suppliers and dividend remittances. Second, a positive effect came from other markets where local currencies were more stable during the quarter, resulting in lower conversion losses on monetary balances compared to last year.

Speaker #1: Partially offset by lower CAPEX investments. It is important to note that we continue to invest with discipline in our operations, balancing brewery upgrades capacity expansion, innovation capabilities, the expansion of our commercial assets base, and our technology infrastructure, all aimed at supporting long-term value creation.

Speaker #2: On the Bolivia devaluation, it is worth noting that our consolidated income statement reflects average monthly FX rates, as required under the applicable accounting standards.

Speaker #1: Cash flow used in financing activities totaled 5.7 billion reais, 7.1 billion reais below last year, mainly explained by our 6.7 billion reais 2024 dividend payout in early 2025.

Speaker #2: As a result, going forward, the local currency devaluation is expected to gradually create a negative translation impact on our financial and operational results. Turning to income taxes, our consolidated effective tax rate in the quarter was 19.9%, compared to 18.4% in the second quarter of 2025, reflecting country mix effects over higher earnings before taxes, partially offset by regular income tax attributes.

Speaker #1: This cash flow performance supported our shareholders' agenda already demonstrated this year through. One, the execution of approximately 95% of our 208 million share buyback program announced in October last year, representing roughly 3.2 billion reais cash disbursement until July.

Speaker #1: Two, the 4.2 billion reais 2025 IOC payment announcements before withholding tax to be fully paid by October. Sixth, and three, the 2026 IOC declarations of 1.8 billion reais made so far this year, before withholding tax to be paid by December.

Speaker #2: In the first six months of the year, our ETR was 20.6%, broadly in line with the 20% recorded in the first half of 2025. As a result, both normalized and stated net income reached about R$3.5 billion, an increase of 23.3% and 24.5%, respectively, versus last year.

Speaker #1: Altogether, such events represent 5.9 billion reais return to our shareholders on a pre-tax cash basis, as announced until the date of this report. Now, back to you, Lisboa.

Speaker #2: Normalized and stated earnings per share reached R$0.22, representing, respectively, a 24.2% and 20.4% increase versus last year. Now, turning to cash flow generation, let's go beyond the quarter and look at our performance in the first half of the year.

Speaker #2: Thank you, Fluri. Let me close with these three messages. First, our first half performance reinforced our conviction in the category. Beer is big, profitable, and growing in the majority of our markets, with healthy fundamentals.

Speaker #2: Cash flow from operating activities totaled R$7.9 billion, an increase of R$3.6 billion, representing over 80% improvement versus the same period of last year.

Speaker #2: Its cultural relevance and versatility allow us to serve a broad range of consumers' need states and occasions, given the category's meaningful room to grow.

Speaker #2: Second, as category captain, our role is to bridge the gap between beer's potential and actual consumption. We have what it takes to do that.

Speaker #2: This was mainly driven by higher EBITDA and improved working capital, reflecting our volume performance. Cash flow used in investing activities totaled R$3.3 billion, R$1.5 billion higher than in the first half of 2025.

Speaker #2: A proven growth formula built around our three pillar strategy and being deployed across our footprint through replicable models. And third, the flywheel is in motion and gaining momentum.

Speaker #2: Primarily in our first quarter, partially offset by lower capex investments. Discipline in our operations, balancing upgrades, capacity expansion capabilities, and the expansion of our commercial asset base and technology infrastructure, all aimed at supporting long-term value creation.

Speaker #2: We closed the first half with positive volume growth, high single-digit net revenue growth, almost double-digit normalized EBITDA growth with margin expansion, and double-digit normalized EPS growth.

Speaker #2: Solid operating cash flow supported continued shareholder returns, the consistency of this performance give us confidence as we build on this progress in the second half.

Speaker #2: Before I finish, I want to thank our teams and business partners across all markets for their ownership, resilience, and commitment, and for continuing to dream big to create a future with more shares.

Speaker #2: Thank you very much for joining us today, and with that, let me hand it over to the operator.

Speaker #3: We will now begin the Q&A session. To ask a question, we kindly ask sell-side analysts to click on the raise hand button at the bottom of the screen.

Speaker #2: Cash flow used in financing activities totaled R$5.7 billion, R$7.1 billion below last year, mainly explained by our R$3.7 billion 2024 dividend payout in early 2025.

Speaker #3: To remove a question has been addressed, please click lower hand button. We kindly reinforce our request that each participant ask only one single question.

Speaker #2: This cash flow performance supported our shareholders' agenda, demonstrated this year through, one, the execution of approximately 95% of our 208 million share buyback program announced in October.

Speaker #1: Our first question comes from Nadine Sarwat with Bernstein. You can open your microphone.

Speaker #2: Representing roughly R$3.2 billion in cash disbursements until July. Two, the R$4.2 billion 2025 IOC payment announcements, before withholding tax, are to be fully paid by the 6th.

Speaker #4: Hello everybody. Thank you for taking my question. I'd like to zoom in on Brazil NAP, and on the minus 4.4 volume growth. Thank you for confirming that 30% of that decline was from the channel phase-out.

Speaker #2: And three, the 2026 IOC declarations of R$1.8 billion made so far this year before withholding tax, to be paid by December. Altogether, such events represent R$5.9 billion returned to our shareholders on a pre-cash basis, as announced until the date of this report.

Speaker #4: So my correct in assuming that that channel phase-out will continue to be a headwind year-on-year for the next three quarters. And then putting that to one side, can you share with us how the underlying soft drinks market did so that we can get a sense of that underperformance that you mentioned?

Speaker #4: And how are you thinking about that segment in the second half of the year? Thank you.

Speaker #5: Hi, Nadine. Lisboa here. Thanks for the question. So you already mentioned about the phase-out, right? So let me just complement the point with the following.

Speaker #2: Now back to you, Lisboa. Thank you, Fluri. Let me close with these three messages. First, our first half performance reinforced our conviction in the category.

Speaker #5: First, the NAB industry in the first semester of this year was positive, right? But we couldn't leverage that much because the recovery for us took longer than expected.

Speaker #2: Very big, profitable, and growing in the majority of our markets, with healthy fundamentals. Its cultural relevance and versatility allow us to serve a broad range of consumers' need states and occasions, giving the category meaningful room to grow.

Speaker #5: Because we were focused on correcting the commercial course I mean, relative price relativity, y, market share performance, volume performance without compromising the health of the P&L of our business unit.

Speaker #2: Second, as category captain, our role is to bridge the gap between beer's potential and actual consumption. We have what it takes to do that.

Speaker #2: A proven growth formula built around our strategy and across our footprint through replicable models. And third the is in motion and gaining momentum. We close the first half we posted volume growth.

Speaker #5: Okay? And I'm glad that we closed the quarter two very in line with our expectations. Took longer, but now we are very close because we corrected the price relativity without compromising what we delivered in terms of net revenue per acre liter performance in the quarter.

Speaker #2: High single-digit net revenue growth, almost double-digit normalized EBITDA growth with margin expansion, and double-digit normalized EPS growth. Solid operating cash flow supports continued shareholder returns.

Speaker #5: Two, the market share got pre-aligned with historical leverage levels. By the end of the quarter, right, and three, as a consequence, we saw our volumes also improving within this period, right?

Speaker #2: Consistency of this performance gives us confidence in this progress in the second half. Before I finish, I want to thank our teams and partners across all markets for their partnership, resilience, and commitment—and for continuing to dream big to create a future with more shares.

Speaker #5: So when we look forward, I think it's always good to have in mind that last year we had two different years within the year.

Speaker #2: Thank you very much for joining us today and that let me hand it over to the operator.

Speaker #1: We will now begin the Q&A session. To ask a question we kindly ask sell side analysts to click on raise hand button at the bottom of the screen.

Speaker #5: Right? Which means that we just cycle through the most tough comparison phase for us. Volume-wise and share-wise, right? Which means that now, moving forward, we're going to have a way better context to navigate with the recovery on top, the recovery of the balance that I just mentioned to you, right?

Speaker #1: To remove a question for the queue or after your question has been addressed please click lower hand button. We kindly reinforce our request that each participant ask only one single question.

Speaker #5: In terms of health, we do I won't go into any sort of guidance about the industry moving forward, right? But given what I just mentioned to you, we should expect a way better situation for us on the NAB business in the second half of this year.

Speaker #1: Our first question comes from Nadine Sarwat with Bernstein. You can open your microphone.

Speaker #2: Hello, everybody. Thank you for the question. I'd like to zoom in on Brazil NAP and on the minus 4.4% volume growth, confirming that 30% of that decline was from panel phase-out.

Speaker #5: And Nadine, Fluri here, if I can just complement Lisboa. I also heard you asking about how that adjustment, the 30%, will continue on the year.

Speaker #2: So, my question: Assuming that the channel phase-out continues to be a headwind year on year for the next three quarters, and then putting that to one side, share with us how the underlying offerings market did so we can get a sense of that underperformance. And how are you thinking about that segment in the year? Thank you.

Speaker #5: On that one, allow me to make two comments. That started or that is part of the resource allocation that we've been doing with Lisboa.

Speaker #5: Thinking about profitability channels, so on and so forth. And that is related to a specific fast food channel that we exited. Therefore, that will continue to lap throughout this year.

Speaker #1: Lisboa here. Thanks

Speaker #3: for the question. So you already made the phase out right so let me just at the point with the following first of this year was posted right but we couldn't leverage that much because the recovery for us took longer than expected because we were you know focused on correcting the commercial course I mean relative price relativity market share performance volume performance without compromising the health of the PNL of our business unit okay and I'm glad that we close the quarter two very in line with our expectations took longer but now we are very close because you know we corrected the rel the price we delivered in terms of performance in the quarter two the market share got pretty in line with historical leverage leverage levels by the end of the quarter right and three as a consequence we saw our volumes also improving within this period right so when we look forward I think it's always good to have in mind that last year we had two different years within the year right which.

Speaker #5: Okay?

Speaker #4: Perfect. Thank you very much.

Speaker #5: Thank you.

Speaker #1: Our next question comes from Tiago Duarte with BTG. Your microphone is open.

Speaker #6: Hello. Thank you very much. Hello, Lisboa, Fluri, and everybody. Yeah, my question is, is now moving to Beer Brazil, and it's really trying to clean up the figures a little bit, considering the World Cup.

Speaker #6: So you already mentioned the additional impact that the World Cup had in sales and marketing, as you try to activate the brands and everything.

Speaker #6: So if you could also extrapolate a little bit of that analysis into your top line for Brazil beer, both in terms of what you think the volume contribution was, and also in terms on whether the event may have had an impact in terms of your revenue per acre liter or average pricing for the quarter.

Speaker #6: That would be my question. Thank you.

Speaker #5: Hello, Tiago. Nice to talk to you again. Let me answer your question, starting from the overall assessment of the event, right, the World Cup, a positive is always important to emphasize that, and broadly in line with our expectations.

Speaker #3: That we just cycle through the most tough comparison base for us volume wise and shell wise right which means that now moving forward we're going to have a way better right context to navigate with the recovery on top the recovery of the balance that I just mentioned to you right and in terms of you know health we do I I won't go into any sort of you know guidance about the industry moving forward right but given what I just mentioned to you we should expect a way better you know situation for us on the NAB business in the second half of this year and and I Fluri here if I can just complement Lisboa I also heard you asking about how that adjustment the 30% will continue on the year on that one allow me to make two comments that is that started part of the resource allocation that we've been doing with Lisboa thinking about profitability channel so on and so forth and that is related to a specific fast food channel that we've exited therefore that will continue to lap throughout this year okay

Speaker #5: For us, it was a six-month platform activation, right, across portfolio, channels, right, regions, countries. So very different from one single brand campaign, right? Broad impact in line with what we were expecting across the footprint, not only Brazil, right, but Brazil, Argentina, Panama, Paraguay, Canada, pretty much all of them bringing pretty interesting results, not only in volume, right, industry recovery, but also in terms of brand equity for our portfolio.

Speaker #5: Specifically about Brazil, what we estimated in terms of impact was around 0.5 to 1 percentage point in industry growth for the quarter, right, which is also in line with what we stated during our first quarter announcement, right?

Speaker #5: Was very interesting for us because we could activate I'm going to use Brazil as an example, right? Not only for our core brands, but we did so for pretty much all segments in our portfolio from core to premium, with the introduction and acceleration of Micolab, right?

Speaker #2: Perfect. Thank you very much.

Speaker #5: We did so as well with the balance choice portfolio, and even with the Beyond Beer, we activated Flying Fish, right? So it was very interesting for us to manage the portfolio during the tournament.

Speaker #3: Thank you.

Speaker #1: Our next question comes from Thiago Duarte with BTG. Thank you very much. Hello Lisboa and everybody. Yeah, my question is is is is now moving to beer Brazil and it's really trying to up the figures a little bit considering the world cup.

Speaker #5: In terms of overall performance for the volume performance for the quarter, we estimate that the industry was slightly positive as I mentioned during the intro, right?

Speaker #1: So you already mentioned the additional impact that the the world cup had in sales and marketing as you try to activate the brands and everything.

Speaker #5: On top of that, we had a broad base share gain, right, that pretty much explains, right, the overall volume performance of the company. And when we look at net revenue per acre liter, it's always good to have in mind that the first quarter result was a combination of a strong carryover on top of a prior year without any sort of carryover.

Speaker #1: So so if you could also extrapolate a little bit of that analysis into your top line for for Brazil beer both in terms of what you think the volume contribution was and also in terms on what they may have had the impact in terms of your revenue per hectare or average pricing for the quarter.

Speaker #5: On top of that, the initial implementation of calendar, right, and the combination and the mix, right, and the combination of the three components, deliver a very solid net revenue per acre liter performance.

Speaker #1: That would be my question. Thank you.

Speaker #3: Hello nice talk to you again. Let me answer your question starting from the overall assessment of the event right the World Cup a positive is always important to you to you know emphasize that and broadly in line with our expectations for us was a six month platform activation right across portfolio channels right regions countries so very different from one single brand campaign right broad impact in line with what we were expecting across the footprint not only Brazil right Brazil Argentina Panama Paraguay Canada pretty much all of them bringing pretty interesting results not only in volume right industry recovery but also in terms of brand equity for our portfolio specifically about Brazil you know what we asked in terms of impact was around.

Speaker #5: And we were expecting somehow a dilution of our carryover, right, through the quarter two. And we kept the discipline on the rate side. As a consequence, we delivered for the semester, right, a net revenue per acre liter that increased around 6%, which is 50% pretty much above inflation, with a good combination of rate in line with inflation and a mixed contribution on top of that.

Speaker #5: And I always like to emphasize as well, Tiago, the mission of the net revenue strategy for us, which is, on one fold, right, protect profitability.

Speaker #5: However, on the other fold, also protect accessibility of our consumers to the category. And that's exactly the type of strategy we're going to keep in place for the residual part of the year.

Speaker #3: 5 to 1 percentage point in industry growth for the quarter right which is also in line with what we stated during our first quarter announcement right very interesting for us because we could activate you know example right but we did so far you know pretty much all in our in our portfolio from core to premium with the introduction club right we did so you know the and even beyond beer we activated right so it was interesting for us to manage you know the portfolio in terms of you know overall performance for the performance for the quarter we estimate that the industry was you know slightly positive as I mentioned during the intro right on top of that we share we had a broad share gain right that pretty much explains right the overall volume performance of the company and when we look at net always good to have in mind that you know the first quarter result was a combination of you know a strong carryover on top of you know a prior year without any sort of carryover on top of that the initial the initial implementation of calendar right and and and the combination and the mix right and the combination of the three components deliver a very solid right net revenue practical performance and we were expecting somehow a dilution of our carryover right through the quarter two and and we kept the discipline right on the rate side as a consequence for the semester right net revenue practical that increased around 6% which is 50% pretty much above inflation with a good combination of rate in line with inflation and a mixed contribution on top of that and I always you know like to emphasize as well Thiago you know the mission of the net revenue strategy for us which is on one fold right protect profitability however on the other fold also protect accessibility of our you know consumers to the category and that's exactly the type of you know strategy we're going to keep in place for the residual part of the year thank you and and just one clarification from from the statement you just made Lisboa you said you were already expecting some dilution from the net revenue practical into Q2 and and I'm assuming that's because of the World Cup no it's because of you know the carryover dilution from part one to quarter two and due to the comp base against 25 because keep in mind that you know in the second quarter last year is when we kick off right our you know net revenue agenda right in the year that's why we also saw an impact a temporary impact in market share that we right recover in Q3 that's the reason why we were expecting not due to the World Cup perfect it's because you're looking on a year over year basis for you know Q over Q basis thank you so much thank you very much next question comes from Carlos Laboy with HSBC you can open your microphone yes hello one of the different question is previous quarters right it seems that your indicators in market share indicators for Brahma and Skull in their respective regions of strength only right that they've been moving in the right direction that the gaps you were trying to close have closed can you give a date on that is the first question the second question related to that is do your premium and innovation efforts accrue a benefit to the quality image of your mainstream brands in other words how do you know that what you're doing with Corona and the the Mickle of Ultra push that we just saw and the image of those brands is is is creating sort of a halo maybe over your mainstream category or not thank you hello boy nice to talk to you and it's pretty interesting angle that you are bringing again to the to our discussion here I'm I'm passionate about this topic because you know one bring big dream that we have at AMBEV Laboy is exactly about reimagining the beer category what the beer category can be right and by doing so in the end you know our role our mission is to bridge this you know future category image and actual consumption the actual that we have right so the the entire architecture in the end that we are building here has this right role for us so when you mentioned the premium for sure the premium you know you know enhances the image of the category and by doing so obviously you're going to see a halo effect in all segments and whenever I do the same with the core and somehow we challenge this core we also see a halo effect in other segments and this is the beauty about it everything that we are doing with balance choices for sure brings new attributes for the beer to better stronger and the way we weight right be the category cap and I already mentioned the key challenge that we have is to develop this new partitions of the category without compromising the core we want to add up we want to keep the foundation solid health healthy and build on top that's the way we're going to bring more consumers to the category we're going to jump into more drinking occasions right and we avoid cannibalization that's the game we are playing.

Speaker #6: Thank you. And just one clarification from the statement you just made, Lisboa. You said you were already expecting some dilution from the net revenue per acre liter into Q2, and I'm assuming that's because of the World Cup.

Speaker #5: No, it's because of the carryover, dilution, from quarter one to quarter two. And due to the comp base against 25, because keep in mind that in the second quarter last year, is when we kick off, right, our net revenue agenda, right, in the year.

Speaker #5: That's why we also. An impact a temporary impact in market share that we recover in Q3. That's the reason why we were expecting, not due to the World Cup.

Speaker #6: Perfect. Because you're looking on a year-over-year basis. Referring on a Q over Q basis. That's clear. Thank you so much.

Speaker #5: Thank you very much.

Speaker #2: Our next question comes from Carlos Laboy with HSBC. You can open your microphone.

Speaker #7: Yes. Hello. Hello everyone. Lisboa, I keep coming back to kind of a different variant of the same question as previous quarters, right? It seems that your brand strength indicators and market share indicators for Brahma and Skoll in their respective regions of strength only, right?

Speaker #7: They've been moving in the right direction. The gaps you were trying to close have closed. Can you give us an update on that? Is the first question.

Speaker #7: And then the second question related to that is, do your premium and innovation efforts accrue a benefit to the quality image of your mainstream brands?

Speaker #7: In other words, how do you know that what you're doing with Corona and the Micolab Ultra push that we just saw and the quality image of those brands is creating sort of a halo maybe over your mainstream category or not?

Speaker #7: Thank you.

Speaker #5: He Laboy, nice to talk to you. And it's pretty interesting angle that you are bringing again to the to our discussion here. I'm passionate about this topic because one big dream that we have at Ambev Laboys is exactly about reimagining the beer category.

Speaker #5: What the beer category can be, right? And by doing so, in the end, our role, our mission is to bridge this future category image and the actual consumption, the actual portfolio that we have, right?

Speaker #5: So the entire architecture in the end that we are building here has this role for us. So when you mentioned the premium, for sure the premium enhances the image of the category.

Speaker #5: And by doing so, obviously, you're going to see a halo effect in all segments. And whenever I do the same with the core, and somehow we challenge the status quo with the core, we also see a halo effect in other segments.

Speaker #5: And this is the beauty about it. Everything that we are doing with balanced choices, for sure brings new attributes for the beer category. That make consumers see our category differently.

Speaker #5: Better, stronger, and that's the way we perpetuate the relevance of the beer category, not only Brazil, but across our footprint. And we prepare the category to land in the future with the right attributes.

Speaker #5: So this is a very interesting question, right? And this is also related to the point when we bring the first pillar of our strategy, connecting lead and grow.

Speaker #5: Because we want to take this role be the category captain. In our markets, okay? Now connecting to Skoll. And I already mentioned this, to you in our previous sessions, one of the key challenges that we have is to develop this new partitions of the category.

Speaker #5: Without compromising the core. We want to add on top. We want to keep the foundation solid, healthy, and build on top. That's the way we're going to bring more consumers to the category.

Speaker #5: We're going to jump into more drinking occasions. Right? And we avoid cannibalization. That's the game we are playing here. And that's why it's so important to keep core healthy, okay?

Speaker #5: When I reflect about the core performance was volume-wise in the quarter was broadly stable. Which is good improvement versus last quarter, right? The performance is a consequence of our three brands.

Speaker #5: Performing a pretty interesting way. Right? Among the three, Skoll after several quarters, stable in equity. Delivered the first quarter with equity improvement. So it's a pretty interesting sign, right?

Speaker #5: It's initial. But it's good to see, right? Within the mainstream segment, all three core brands gain share. Right? Including Skoll, right? Within that, and I always consider that our foot in the future.

Speaker #5: What are we going to see tomorrow in Brazil happening, right? Skoll was the brand core brand growing fastest. Right? Which is very interesting. Where we introduce Skoll 00, line extension from the mother brand the line extension achieved 20% of no alcohol beer mix.

Speaker #5: Which is also very interesting, right? And altogether, right, what I really like about the core performance, the mainstream performance, is something that we rarely discuss about Laboy because we always put emphasis on consumers trading up from core to premium.

Speaker #5: But from 2019 today, right, the value segment in Brazil reduced by half. In our industry standpoint. And that volume was better than the core.

Speaker #5: Another very interesting point for us to consider in our conversations moving forward. And another big reason why it's so important to have more than one core brand playing this game.

Speaker #5: Brazil is very different. Regionally speaking, right? As a consequence, our brand's performance are also very different across the country, right? And the complementary of our mainstream portfolio today is a very important competitive advantage for Ambev.

Speaker #5: Thank you for the question.

Speaker #2: Thank you. Thank you.

Speaker #1: Our next question comes from Lucas Ferreira with GP Morgan. You can open your microphone, sir.

Speaker #7: Hi, guys. If I may question, a follow-up question on the net revenue per hectare liter and how to think about that line, going to the second half.

Speaker #7: So Lisboa, you mentioned a few factors, right, explaining that strong performance in the first half. When we look at the second half, especially when you compare year over year, is it fair to say that the delta year versus year should be larger in your mainstream portfolio?

Speaker #7: Because if not mistaken, this is where you guys had a more sort of a troubles last year on the mainstream and this year like you mentioning sort of things are back on track on the brand equity both of brand equities in the mainstream.

Speaker #7: So my question is how does mix affect? So should we see a higher delta year over year in the mainstream? And that obviously pushes your average prices down.

Speaker #7: Is it fair to say or any sort of a price action is expected for the second half? Should we still be aiming this sort of inflation plus scenario for second half?

Speaker #7: That's the question I have. Thank you.

Speaker #8: Hey, Lucas. Thanks for the question as well. Let me clarify the following. Actually, the main issue we had last year in the second half was not the mainstream performance.

Speaker #8: Was more the industry impact against 2024. Bear in mind that in 2024, there was a weather phenomenon that impacted Brazil El Nino and created distortion in weather temperatures.

Speaker #8: Not a coincidence, but a consequence of that, 2024 was the peak of the industry in Brazil. Right? Volume-wise. And when we had the change, the weather change in the especially in the second half of last year, is when the industry gap performance was created.

Speaker #8: And the mainstream segment has for obvious reasons and we discuss a lot about that, right? Due to the relevance in some specific occasions like the on-premise is a huge correlation with the industry performance.

Speaker #8: And this is exactly what explains the mainstream performance from our portfolio in the second half of last year. So everything that we mentioned myself and Floti about second quarter and first half should be complemented with this information.

Speaker #8: Because we just cycle through the toughest comparison we have we had against 25. Volume-wise. Now we are entering in a different kind of scenario.

Speaker #8: Right? And based on the information that we have available from different weather forecast institutes there is no expectation whatsoever for even more adverse temperatures moving forward comparing to 25.

Speaker #8: Right? This is an important consideration to keep in mind. On top of that, we don't have any more that fluctuation share-wise we kept our share level since Q3 last year, three months stable.

Speaker #8: Right? By the way, with some improvements. And that share level performance is supported by a very solid share performance across all segments. And that should be somehow the shape we should expect from Ambev moving forward.

Speaker #8: That's why we are so confident about our portfolio momentum. Right? And we stated that we today we have the most complete portfolio that the company has ever had.

Speaker #8: Because this is making a huge difference combining with the execution capacity and the digital capabilities that this company has developed along the previous years.

Speaker #8: Right? So I think that's all I have to say about your point.

Speaker #7: Thank you very much, Lisboa.

Speaker #8: Thank you.

Speaker #1: Our next question comes from Benther with Barclays. You can open your microphone, sir.

Speaker #7: Yeah. Good morning, Lisboa, Floti. Thank you very much for taking my question. I wanted to follow up a little bit on the volume X Free Football Cup implications.

Speaker #7: And clearly you've just laid out within your commentary what were the issues in the second half of last year affecting obviously the volume on a year over year basis.

Speaker #7: So as you look at the second half in terms of particularly beer in Brazil volume cadence, just try to help us bridge maybe what we should expect given it's a relatively easy comp, but obviously the World Cup's behind us.

Operator: AmBev's management and information currently available to the company involve risks, uncertainties, and assumptions because they relate to future events, and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of AmBev and could cause results to differ materially from those expressed in such forward-looking statements. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during today's call are both organic and normalized in nature. Unless otherwise stated, percentage changes refer to comparison with Q2 2025 results. Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of AmBev's normal activities.

Operator: Ambev's management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to future events and therefore depend on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of Ambev and could cause results to differ materially from those expressed in such forward-looking statements. I would also like to remind everyone that, as usual, the percentage changes that will be discussed during today's call are both organic and normalized in nature. Unless otherwise stated, percentage change refer to comparison with 2025 Q2 results. Normalized figures refer to performance measures before exceptional items, which are either income or expenses that do not occur regularly as part of Ambev's normal activities.

Speaker #1: There's a strong correlation with industry performance, and this is exactly what explains the mainstream performance from our portfolio in the second half of last year.

Speaker #7: So how do you think about the performance of volume into the second half? And then obviously into moving into next year also with El Nino coming again, how much of a potential tailwind that could be?

Speaker #1: So everything that we mentioned—myself and, you know, Floti—about the second quarter and first half should be complemented with this information. Because we just cycled through the toughest comparison we had—against 2025.

Speaker #7: Thank you.

Speaker #8: Thank you, Ben. cannot provide you any industry volume guidance. Right? But what I can say is the following. Comparisons versus 25, we are just cycling through a period when the industry declined mid to low single digit last year against 24.

Speaker #1: Volume-wise, now we are entering in a different—you know—kind of scenario, right? And, you know, based on the information that we have available from different—right—whether forecasts, right, institutes—there is no expectation whatsoever for even more adverse temperatures.

Speaker #8: Right? Till a semester when the industry declined high single digit. Against 24. I think that's the first part of the answer. Right? Those drivers that historically impact positively the industry played the same role in the first half and should play a similar role in the second half.

Speaker #1: Moving forward, comparing to '25, right? This is an important—you know—consideration to keep in mind. On top of that, we don't have any more of that fluctuation share-wise, right? We've kept our share level since Q3 last year pretty much stable.

Operator: As normalized figures are non-GAAP measures, the company includes consolidated profit, EPS, operating profit, and the fully reported basis in its earnings release. Now, I'll turn the conference over to Carlos Lisboa. Carlos Lisboa, you may begin your conference.

Operator: As normalized figures are non-GAAP measures, the company includes the consolidated profit, EPS, operating profit, and the fully reported basis in its earnings release. Now I'll turn the conference over to Carlos Lisboa. Carlos Lisboa, you may begin your conference.

Speaker #8: Namely, LDA population growth, employment, and aggregate income. Okay? On the other hand, we do see which is a concerning sign household debt levels continue to be very elevated.

Speaker #1: Right? By the way, with some improvements. And that, you know, share-level performance is supported by very solid share performance across all segments. And that should be, you know, somehow the shape we should expect from Ambev moving forward.

Carlos Lisboa: Good afternoon, everyone. Thank you for joining our Q2 earnings call. Across our footprint, football is part of our culture, one of the strongest connection points that bring people together. This year has a unique role for this passion as a moment. I want to congratulate all the national teams from our heart that represented their countries in the FIFA World Cup. I also want to recognize our teams for their outstanding achievements throughout the World Cup. Moments like these are also where our company strategy comes to life. The World Cup is one of the toughest and most competitive events in our industry. The challenge goes beyond activating our brands. It is about turning a tournament into a best long platform activation for our portfolio rather than a single brand.

Carlos Lisboa: Good afternoon, everyone. Thank you for joining our Q2 earnings call. Across our footprint, football is part of our culture, one of the strongest connection points that bring people together. This year has a unique role for this passion as a moment. I want to congratulate all the national teams from our heart that represented their countries in the FIFA World Cup. I also want to recognize our teams for their outstanding achievements throughout the World Cup. Moments like these are also where our company strategy comes to life. The World Cup is one of the toughest and most competitive events in our industry. The challenge goes beyond activating our brands. It is about turning a tournament into a best long platform activation for our portfolio rather than a single brand.

Speaker #8: Right? Which is a point of attention for us. But on the other hand, this is when we usually see our category resilience. Because in the end, beer for Brazilians is a very accessible entertainment.

Speaker #1: That's why we are so, you know, confident about our portfolio momentum, right? And we stated that today we have the most complete portfolio that the company has ever had.

Speaker #8: Right? And this is very important for us, especially this kind of scenario. Weather. Right? Well, weather is a very difficult and tricky aspect to predict.

Speaker #1: Because this is making a huge difference, combined with, you know, the execution capacity and the digital capabilities that this company has developed over the previous years.

Speaker #8: Right? I'm not a weather expert here. Right? So as I said, current external forecasts do not indicate any average temperature more adverse than last year.

Speaker #1: Right? So, I think that's—that's all I have to say about your point.

Speaker #2: Thank you very much, Lisboa.

Speaker #1: Thank you.

Speaker #2: Our next question comes from Benther with Barclays. You can open your microphone or—

Speaker #8: Right? Regarding El Nino. Right? What I did, Ben, is the following. I was not here in 24. So we and the team, we revisit all the consequences that we lived and the country faced during the year.

Carlos Lisboa: Also connecting with consumers across channels and millions of points of sale while building experiences that last beyond the final whistle. Our markets and our brands were among those most associated with the tournament. We did not just take part of the World Cup, helping shape categories for its future. While the World Cup has come to an end, our transformation continues. Over time, AmBev's performance continued to strengthen in Q2, with its quality and shape improving versus Q1. Volumes provided a much stronger contribution, growing 1.4% year over year with beer up mid-single digits. Disciplined revenue management and resource allocation supported net revenue growth of 6% and normalized EBITDA growth of 9%, even as we stepped up investment behind our brands. As a highlight, our normalized EPS grew 24%. Looking at the movie rather than the picture, the H1 provides a broader view.

Carlos Lisboa: Also connecting with consumers across channels and millions of points of sale while building experiences that last beyond the final whistle. Our markets and our brands were among those most associated with the tournament. We did not just take part of the World Cup, helping shape categories for its future. While the World Cup has come to an end, our transformation continues. Over time, Ambev's performance continued to strengthen in Q2, with its quality and shape improving versus Q1. Volumes provided a much stronger contribution, growing 1.4% year-over-year with beer up mid-single-digits. Disciplined revenue management and resource allocation supported net revenue growth of 6% and normalized EBITDA growth of 9%, even as we stepped up investment behind our brands. As a highlight, our normalized EPS grew 24%. Looking at the movie rather than the picture, the H1 provides a broader view.

Speaker #3: Yeah, good morning, Lisboa. Floti, thank you very much for taking my question. I wanted to follow up a little bit on the volume ex—ex FIFA World Cup implications.

Speaker #3: And clearly, you've just laid out within your commentary what were the issues in the second half of last year affecting, obviously, the volume on a year-over-year basis.

Speaker #8: And there are very interesting learnings for us. Right? The first priority should always be around our people. Right? Our experience in 24 reinforced the importance of protecting them.

Speaker #3: So as you look at the second half, in terms of particularly beer in Brazil volume cadence, could you help us bridge what we should expect, given it's a relatively easy comp, but obviously the World Cup is behind us?

Speaker #8: And supporting partners and communities that will be probably extreme weather change across the country different impacts in super important for us to be ready and be part of the solution.

Speaker #3: So how do you think about the performance of volume into the second half? And then, obviously, into moving into next year also with El Niño coming again, how much of a potential tailwind that could be?

Speaker #8: Right? And protect as well our operations. Second learning, potential impact on costs. Right? Extreme weather conditions may also affect agriculture commodities logistic prices. Right?

Speaker #3: Thank you.

Speaker #1: Thank you, Ben. Look, I cannot—you know—provide you any industry volume guidance, right? But what I can say is the following: Comparisons versus 2025— we are just cycling through, you know, a period when the industry declined, you know, mid- to low-single-digits last year against 2024.

Speaker #8: Input costs. Right? And we are working closely with farmers and suppliers in order to be prepared to face that scenario. On the demand side, 24 illustrated that warmer temperatures can influence industry demand.

Speaker #1: Right? Until a semester when the industry declined high single digits, against '24. I think that's the first part of the answer, right? Those, you know, drivers that historically impact the industry positively played the same role in the first half and should play a similar role in the second half.

Speaker #8: And that's exactly what I mentioned before. However, these effects are unpredictable. I'm not an expert. I cannot we cannot rely on that. The only thing we can do is control what we can control.

Carlos Lisboa: Total volumes grew 0.7%, with beer volumes growing well ahead of the total. Net revenue grew 7%. Normalized EBITDA increased 10%, implying 1.3 times operational leverage, and normalized EPS also grew 10%. Operating cash flow reached BRL 8 billion, one of Ambev's highest H1 levels. As we enter the H2, we are building a business with stronger foundations and designed to deliver compound profitable growth over time. Behind this progress is our three-pillar growth strategy. Starting with pillar one, lead and grow the category. This quarter, we advanced on both dimensions. On lead, we strengthened both brand equity and market share across our five largest markets. On growth, share gains and improving industry conditions supported beer volume growth in markets that represent over 80% of our volumes. Mainstream continued to improve sequentially with volumes only slightly below last year.

Carlos Lisboa: Total volumes grew 0.7%, with beer volumes growing well ahead of the total. Net revenue grew 7%. Normalized EBITDA increased 10%, implying 1.3x operational leverage, and normalized EPS also grew 10%. Operating cash flow reached BRL 8 billion, one of Ambev's highest H1 levels. As we enter the H2, we are building a business with stronger foundations and designed to deliver compound profitable growth over time. Behind this progress is our three-pillar growth strategy. Starting with pillar one, lead and grow the category. This quarter, we advanced on both dimensions. On lead, we strengthened both brand equity and market share across our five largest markets. On growth, share gains and improving industry conditions supported beer volume growth in markets that represent over 80% of our volumes. Mainstream continued to improve sequentially with volumes only slightly below last year.

Speaker #8: And be prepared. Be ready for a wide range of climate scenarios and maybe if possible, continue to build even more resilient business moving forward.

Speaker #1: Namely, LDA population growth, employment, and aggregate income. On the other hand, we do see—which is a concerning sign—household debt levels continue to be very elevated.

Speaker #7: And Ben, Floti, thank you very much.

Speaker #8: And Ben, just one comment here just to reinforce what Lisboa said. If you go beyond the quarter, it's important to remember that we are very confident about what the industry can go.

Speaker #8: If I look into external drivers for Brazil and most of our emerging markets, population growth, rising income per capita, they should play favorably going forward.

Speaker #1: Right? Which is a point of attention for us. But, on the other hand, this is when we usually see our category's resilience. Because, in the end, beer for Brazilians is a very accessible entertainment.

Speaker #8: Also per capita consumption. And what is on our side as Lisboa said, what we can control and what we're working on, we believe that beer is very connected to socialization.

Speaker #1: Right? And this is very, you know, important for us, especially in this kind of, you know, scenario—weather, right? Weather is a very difficult and tricky—right—aspect to predict.

Speaker #8: And we are working to expand the boundaries of our category going forward. So we are confident on what are the demographics and what goals in the external and what we can do to expand the category going forward.

Carlos Lisboa: We continue to lead the high-growth segments with a broad and complementary portfolio. Premium remains a key growth engine, growing nearly 20%. Balanced choices grew more than 60%. No-alcohol beer grew around 20%, and flavored beer and RTDs maintained momentum. Michelob ULTRA shows how we scale a relevant consumer proposition across markets. It more than tripled in Brazil and Argentina during the quarter, grew over 50% across our footprint, and is now present in nearly all our markets, connecting with consumers seeking a more active and balanced lifestyle. This takes us to pillar two: digitize and monetize our ecosystem. Our digital ecosystem has become a key lever for category development. In an increasingly dynamic environment, a broader portfolio creates greater complexity. BEES enables us to manage that complexity with greater precision, strengthening the core while accelerating the new engines of category growth.

Carlos Lisboa: We continue to lead the high-growth segments with a broad and complementary portfolio. Premium remain a key growth engine, growing nearly 20%. Balanced choices grew more than 60%. No alcohol beer grew around 20%, and flavored beer and RTDs maintained momentum. Michelob ULTRA shows how we scale a relevant consumer proposition across markets. It more than tripled in Brazil and Argentina during the quarter, grew over 50% across our footprint, and is now present in nearly all our markets, connecting with consumers seeking a more active and balanced lifestyle. This takes us to pillar two, digitize and monetize our ecosystem. Our digital ecosystem has become a key lever for category development. In an increasingly dynamic environment, a broader portfolio creates greater complexity. BEES enable us to manage that complexity with greater precision, strengthening the core while accelerating the new engines of category growth.

Speaker #1: Right? I'm not a weather expert. Here. Right? So as I said, current external forecasts do not indicate any average temperature more adverse than last year.

Speaker #7: Perfect. Thanks, Floti.

Speaker #1: Okay. This concludes the Q&A session. I would like to invite Mr. Carlos Lisboa to proceed with his closing remarks. Please go ahead, sir.

Speaker #1: Right? Regarding El Niño, right, what I did, Ben, is the following: I was not here in ’24. So—so we and the team, we revisited all the consequences, right, that we lived and the country faced—right—during the year.

Speaker #8: So before we close, let me share a personal reflection. This was my sixth quarter leading on Bev. And the environment, as we just discussed, has rarely stood still.

Speaker #8: Right? I believe great companies are defining by what they do and deliver, in periods like this. They usually sharpen their choices, strengthen capabilities, and turn challenges into opportunities.

Speaker #1: And there are very interesting learnings for us, right? The first priority should always be around our people, right? Our experience in Q4 reinforced the importance of protecting them.

Speaker #8: Right? I feel privileged to lead on Bev and to work alongside people whose talent and ownership make that possible. There is always way more to do.

Speaker #1: And supporting partners and communities that will be—probably, right—facing extreme weather changes across the country, with different impacts, is super important for us to be ready and be part of the solution.

Speaker #8: But I believe on Bev is stronger today than when I began the journey as CEO. We are entering the second half confident in our strategy.

Speaker #1: Right? And protect as well our operations. Second learning: potential impact on costs, right? Extreme weather conditions may also affect agricultural commodities, logistics prices, right, input costs.

Speaker #8: Energized by our momentum. And ready to capture the opportunities ahead. And determined to keep building an even better company in the future. Thank you.

Carlos Lisboa: It is not just a technical backbone, but an execution powerhouse that creates efficiencies and improves how we operate every day. We read demand faster and more accurately, help customers increase sell-out through better recommendations, and allocate resources to the highest return opportunities. This strengthens our performance while helping our partners grow, as reflected in the continued improvement in our NPS. Ambev BEES Marketplace GMV grew around 60% in both the Q2 and the H1. In the H1, gross margin expanded 6.7 percentage points year over year, reaching 22%. In Brazil, marketplace GMV doubled in the H1, with 3P as the main driver. Under pillar three, optimize our business. This pillar creates the flexibility to deliver on both of our capital allocation priorities, investing behind opportunities that drive long-term growth while consistently returning excess cash to shareholders.

Carlos Lisboa: It is not just a technical backbone, but an execution powerhouse that creates efficiencies and improves how we operate every day. We read demand faster and more accurately, help customers increase sell-out through better recommendations, and allocate resources to the highest return opportunities. This strengthens our performance while helping our partners grow, as reflected in the continued improvement in our NPS. Ambev BEES Marketplace GMV grew around 60% in both the Q2 and the H1. In the H1, gross margin expanded 6.7 percentage points year over year, reaching 22%. In Brazil, marketplace GMV doubled in the H1, with 3P as the main driver. Under pillar three, optimize our business. This pillar creates the flexibility to deliver on both of our capital allocation priorities, investing behind opportunities that drive long-term growth while consistently returning excess cash to shareholders.

Speaker #8: For joining us today.

Speaker #1: Right? And we are working closely with farmers and suppliers in order to be prepared to face that scenario. On the demand side, right, '24 illustrated that warmer temperatures can influence industry demand.

Speaker #1: And that's exactly what I mentioned before. However, these effects are unpredictable. I'm not an expert. I cannot—we cannot rely on that. The only thing we can do is control what we can control.

Speaker #1: And be prepared. Be ready for, you know, a wide range of climate scenarios. Right? And, you know, maybe—you know—if possible, continue to build, you know, even more resilient business moving forward.

Speaker #3: And then, Floti, thank you very much.

Speaker #1: And Ben, just one comment here, just to reinforce what Lisboa said: if you go beyond the quarter, it's important to remember that we are very confident about where the industry can go.

Speaker #1: If I look into external drivers for Brazil and most of our emerging markets—population growth and rising income per capita—they should play favorably going forward.

Carlos Lisboa: In the quarter, we stepped up investments behind our brands while expanding normalized EBITDA margin by 80 basis points. That discipline, together with solid cash generation, allowed us to advance our share buyback program and announce an additional IOC distribution this quarter. Together, the three pillars reinforce one another, creating a flywheel that strengthens the company and supports sustainable, profitable growth. Before moving to our key markets, let me highlight the breadth of our performance. In both the Q2 and the H1, beer volumes grew or remained broadly stable in seven of our 10 largest markets, while net revenue and EBITDA grew across all business units, showcasing that our progress was not dependent on any single market or growth lever. Starting with Brazil beer, continued commercial momentum supported another solid quarter. The beer industry continued to improve sequentially.

Carlos Lisboa: In the quarter, we stepped up investments behind our brands while expanding normalized EBITDA margin by 80 basis points. That discipline, together with solid cash generation, allowed us to advance our share buyback program and announce an additional IOC distribution this quarter. Together, the three pillars reinforce one another, creating a flywheel that strengthens the company and supports sustainable, profitable growth. Before moving to our key markets, let me highlight the breadth of our performance. In both the Q2 and the H1, beer volumes grew or remained broadly stable in seven of our 10 largest markets, while net revenue and EBITDA grew across all business units, showcasing that our progress was not dependent on any single market or growth lever. Starting with Brazil beer, continued commercial momentum supported another solid quarter. The beer industry continued to improve sequentially.

Speaker #1: Also, per capita consumption. And what is on our side, as Lisboa said, what we can control and what we're working on—we believe that beer is very connected to socialization.

Speaker #1: And we are working to expand the boundaries of our category going forward. So, we are confident in what are the demographics and what goes in external, and what we can do to expand the category going forward.

Speaker #3: Perfect. Thanks, Floti.

Speaker #2: Okay, this concludes the Q&A session. I would like to invite Mr. Carlos Lisboa to proceed with his closing remarks. Please go ahead, sir.

Speaker #1: So before we close, let me share a personal reflection. This was my sixth quarter leading on Bev. And the environment, as we just discussed, has rarely stood still.

Speaker #1: Right? I believe great companies are defined by what they do and deliver in periods like this. They usually sharpen their choices, strengthen capabilities, and turn challenges into opportunities.

Speaker #1: Right? I feel privileged to lead Ambev and to work alongside people, you know, whose talent and ownership make that possible. There is always way more to do, but I believe Ambev is stronger today than when I began the journey as CEO.

Carlos Lisboa: According to Nielsen, sell-out improved from a high single-digit decline in H2 2025 and mid-single digit decline in Q1 to a slight decline in Q2. Nielsen's measurement calendar ended around 20 June, capturing only the early part of the World Cup period. Extending the analysis through month-end and across our broader coverage, we estimate that the industry was slightly positive in the quarter. The World Cup created incremental demand across channels and regions. Nevertheless, it was offset by adverse weather conditions. Average temperatures remained below last year and well below 2024. On a two-year comparison, our industry modeling indicates that adverse weather accounts for the full industry volume gap versus 2024. Even so, our consumer tracking shows sequential improvement in category equity and participation, reinforcing our confidence in the category's resilience in a dynamic consumer and macroeconomic environment. Through that, our business continued to outperform.

Carlos Lisboa: According to Nielsen, sell-out improved from a high single-digit decline in H2 2025 and mid-single digit decline in Q1 to a slight decline in Q2. Nielsen's measurement calendar ended around 20 June, capturing only the early part of the World Cup period. Extending the analysis through month-end and across our broader coverage, we estimate that the industry was slightly positive in the quarter. The World Cup created incremental demand across channels and regions. Nevertheless, it was offset by adverse weather conditions. Average temperatures remained below last year and well below 2024. On a two-year comparison, our industry modeling indicates that adverse weather accounts for the full industry volume gap versus 2024. Even so, our consumer tracking shows sequential improvement in category equity and participation, reinforcing our confidence in the category's resilience in a dynamic consumer and macroeconomic environment. Through that, our business continued to outperform.

Speaker #1: We are entering the second half confident in our strategy, energized by our momentum, ready to capture the opportunities ahead, and determined to keep building an even better company in the future.

Speaker #1: Thank you for joining us today.

Carlos Lisboa: Market share expanded year-over-year for the 4th consecutive quarter, consolidating the commercial momentum of our business in Brazil. We estimate that our share increased across Mainstream, Premium, Balanced choices, and beyond beer. Brand equity continued to improve while price relativity remained broadly stable versus last year. This quarter marked 1 full year since we regained leadership in Premium with our share of the segment reaching an all-time high. Premium grew in the mid-20s and reached approximately 25% of our beer volumes. This performance reflects our new premium architecture with each brand anchored to distinct consumer need states. Original for authenticity and simplicity, Stella Artois for quiet luxury, Corona for the outdoors and natural living, and Michelob ULTRA for an active and balanced lifestyle.

Carlos Lisboa: Market share expanded year-over-year for the 4th consecutive quarter, consolidating the commercial momentum of our business in Brazil. We estimate that our share increased across Mainstream, Premium, Balanced choices, and beyond beer. Brand equity continued to improve while price relativity remained broadly stable versus last year. This quarter marked 1 full year since we regained leadership in Premium with our share of the segment reaching an all-time high. Premium grew in the mid-20s and reached approximately 25% of our beer volumes. This performance reflects our new premium architecture with each brand anchored to distinct consumer need states. Original for authenticity and simplicity, Stella Artois for quiet luxury, Corona for the outdoors and natural living, and Michelob ULTRA for an active and balanced lifestyle.

Carlos Lisboa: The recent announcement of Spaten Pro takes this architecture into a new space, combining premium credentials with zero alcohol and 10 grams of protein to expand Balanced choices into new occasions. Balanced choices volumes doubled versus last year, while no alcohol grew in the 30s. Mainstream was broadly stable, delivering a significant improvement from a mid-single digit decline in Q1. Together, improving industry conditions and market share progression supported 5% at scale. Our digital ecosystem provides that capability. Through this, we improve assortment, place the right SKUs in each outlet, and activated our World Cup platform nationwide. Beer distribution grew more than 6%, with returnable bottles up over 4%, and premium over 20%. On the consumer side, Zé Delivery GMV grew 16% versus last year, while others more than double on the Brazilian national team match days.

Carlos Lisboa: The recent announcement of Spaten Pro takes this architecture into a new space, combining premium credentials with zero alcohol and 10 grams of protein to expand Balanced choices into new occasions. Balanced choices volumes doubled versus last year, while no alcohol grew in the 30s. Mainstream was broadly stable, delivering a significant improvement from a mid-single digit decline in Q1. Together, improving industry conditions and market share progression supported 5% at scale. Our digital ecosystem provides that capability. Through this, we improve assortment, place the right SKUs in each outlet, and activated our World Cup platform nationwide. Beer distribution grew more than 6%, with returnable bottles up over 4%, and premium over 20%. On the consumer side, Zé Delivery GMV grew 16% versus last year, while others more than double on the Brazilian national team match days.

Carlos Lisboa: That also give us a real-time view of where the category is heading. Premium already represent 35% of beer volumes on the platform, while Balanced choices reached approximately 7%, nearly twice the weight in Brazil beer. This combination translated into net revenue growth of 9%, EBITDA growth of 13%, and 110 basis points of margin expansion, while we continue to invest behind our brands. In Brazil NAB, sequential improvement, although the job is not done yet. The recovery has taken longer than expected and volumes declined 4.4% in the quarter. Around 30% of the decline reflected our decision to phase out volumes from a lower return channel. Adjusting for this decision, volume performance improved versus Q1. By the end of H1, we had also cycled the toughest comparison base of the year.

Carlos Lisboa: That also give us a real-time view of where the category is heading. Premium already represent 35% of beer volumes on the platform, while Balanced choices reached approximately 7%, nearly twice the weight in Brazil beer. This combination translated into net revenue growth of 9%, EBITDA growth of 13%, and 110 basis points of margin expansion, while we continue to invest behind our brands. In Brazil NAB, sequential improvement, although the job is not done yet. The recovery has taken longer than expected and volumes declined 4.4% in the quarter. Around 30% of the decline reflected our decision to phase out volumes from a lower return channel. Adjusting for this decision, volume performance improved versus Q1. By the end of H1, we had also cycled the toughest comparison base of the year.

Carlos Lisboa: Market share progressed sequentially, approach historical levels by the quarter end, as price relativity pressures eased. Throughout the period, we continue investing behind our brands to regain momentum while maintaining discipline in revenue management and protecting profitability. As a result, Brazil NAB delivered double-digit EBITDA growth with more than 300 basis points of margin expansion in both the quarter and the H1. In LAS, we had two distinct realities within this quarter. In Bolivia, temporary social unrest and road blockages disrupted mobility and logistics for much of the period, leading to a double-digit volume decline. The situation has since normalized and our operations are running normally. Argentina, by contrast, was a highlight. Our beer volumes grew low single digits, lapping growth in the same quarter last year, supported mainly by continued market share momentum and improving industry in the national team's World Cup performance.

Carlos Lisboa: Market share progressed sequentially, approach historical levels by the quarter end, as price relativity pressures eased. Throughout the period, we continue investing behind our brands to regain momentum while maintaining discipline in revenue management and protecting profitability. As a result, Brazil NAB delivered double-digit EBITDA growth with more than 300 basis points of margin expansion in both the quarter and the H1. In LAS, we had two distinct realities within this quarter. In Bolivia, temporary social unrest and road blockages disrupted mobility and logistics for much of the period, leading to a double-digit volume decline. The situation has since normalized and our operations are running normally. Argentina, by contrast, was a highlight. Our beer volumes grew low single digits, lapping growth in the same quarter last year, supported mainly by continued market share momentum and improving industry in the national team's World Cup performance.

Carlos Lisboa: Premium grew high single digits, led by Stella Artois and Corona. Balanced choices reached a mid-single-digit mix of our beer volumes, supported by the launch of Michelob ULTRA and Stella Pure Gold. Mainstream was broadly stable, with Quilmes strengthening brand equity and mainstream share. This is the same category development playbook we are executing in Brazil, scaling premium and developing balanced choices while continuing to strengthen mainstream. In the Dominican Republic, our business delivered mid-single digits volume growth in the quarter, despite adverse weather conditions in April. The consumption environment remained constructive, supported by a favorable macro backdrop and healthy price relativity versus other alcoholic beverage. Beer continued to gain share within alcoholic beverage, and our volumes grew high single digits in the H1.

Carlos Lisboa: Premium grew high single digits, led by Stella Artois and Corona. Balanced choices reached a mid-single-digit mix of our beer volumes, supported by the launch of Michelob ULTRA and Stella Pure Gold. Mainstream was broadly stable, with Quilmes strengthening brand equity and mainstream share. This is the same category development playbook we are executing in Brazil, scaling premium and developing balanced choices while continuing to strengthen mainstream. In the Dominican Republic, our business delivered mid-single digits volume growth in the quarter, despite adverse weather conditions in April. The consumption environment remained constructive, supported by a favorable macro backdrop and healthy price relativity versus other alcoholic beverage. Beer continued to gain share within alcoholic beverage, and our volumes grew high single digits in the H1.

Carlos Lisboa: Premium grew more than 40%, led by Corona and Michelob ULTRA, while mainstream grew low single digits, supported by Presidente and The One in the H1. Presidente's brand equity remains strong, reinforcing its leadership and cultural connection with Dominican consumers. Finally, in Canada, we continued to outperform in a dynamic environment. The beer industry declined low single digits as unfavorable weather and softer consumer demand weighted on performance. Trends, nevertheless, improved from the Q1, supported by FIFA World Cup occasions. We gained market share in both beer and beyond beer. Within beer, Michelob ULTRA continued to lead the development of balanced choices, while Busch strengthened our mainstream performance. In beyond beer, Mike's and Club Water remain important growth drivers. As a result, Canada delivered low single-digit top-line growth alongside low to mid-single digit EBITDA growth and margin expansion in both the quarter and the H1.

Carlos Lisboa: Premium grew more than 40%, led by Corona and Michelob ULTRA, while mainstream grew low single digits, supported by Presidente and The One in the H1. Presidente's brand equity remains strong, reinforcing its leadership and cultural connection with Dominican consumers. Finally, in Canada, we continued to outperform in a dynamic environment. The beer industry declined low single digits as unfavorable weather and softer consumer demand weighted on performance. Trends, nevertheless, improved from the Q1, supported by FIFA World Cup occasions. We gained market share in both beer and beyond beer. Within beer, Michelob ULTRA continued to lead the development of balanced choices, while Busch strengthened our mainstream performance. In beyond beer, Mike's and Club Water remain important growth drivers. As a result, Canada delivered low single-digit top-line growth alongside low to mid-single digit EBITDA growth and margin expansion in both the quarter and the H1.

Carlos Lisboa: With that, I will now turn it over to Fleury for the financial highlights. Thank you, Lisboa. Hello and good afternoon, everyone. As we close the H1 of the year, our financial performance reflects the mindset that has guided us over the past quarters to create value through disciplined resource allocation, focusing on what we can control. In the H1 of 2026, we delivered 9.6% normalized EBITDA growth with margin expansion across all of our business units, as well as 10.1% growth in normalized net income.

Carlos Lisboa: With that, I will now turn it over to Fleury for the financial highlights.

Guilherme Fleury: Thank you, Lisboa. Hello and good afternoon, everyone. As we close the H1 of the year, our financial performance reflects the mindset that has guided us over the past quarters to create value through disciplined resource allocation, focusing on what we can control. In the H1 of 2026, we delivered 9.6% normalized EBITDA growth with margin expansion across all of our business units, as well as 10.1% growth in normalized net income.

[Company Representative] (Ambev): Stated EBITDA grew 2.5%. Stated net income increased by 11.6% in the period. From a cash flow perspective, our H1 performance allow us to continue executing our capital allocation priorities of investing in the organic growth of our business while also returning excess cash to shareholders over time. The H1 performance was supported by another quarter of consistent execution of our growth strategy. Now, let me walk you through the Q2 highlights. Starting with operating performance. Normalized EBITDA grew 8.9% in the period, reaching BRL 6.4 billion, with 80 basis points of margin expansion. This reflects disciplined decisions across cost, expenses, and revenue management, allowing us to expand both gross margin and EBITDA margin while stepping up investments behind our brands during the FIFA World Cup.

Guilherme Fleury: Stated EBITDA grew 2.5%. Stated net income increased by 11.6% in the period. From a cash flow perspective, our H1 performance allow us to continue executing our capital allocation priorities of investing in the organic growth of our business while also returning excess cash to shareholders over time. The H1 performance was supported by another quarter of consistent execution of our growth strategy. Now, let me walk you through the Q2 highlights. Starting with operating performance. Normalized EBITDA grew 8.9% in the period, reaching BRL 6.4 billion, with 80 basis points of margin expansion. This reflects disciplined decisions across cost, expenses, and revenue management, allowing us to expand both gross margin and EBITDA margin while stepping up investments behind our brands during the FIFA World Cup.

[Company Representative] (Ambev): Consolidated cash COGS per hectoliter, excluding marketplace, increased by 2.2% in the period, supported by continued productivity and operational efficiencies across our footprint. Here, it is worth noting that in the H1 of the year, Brazil beer cash COGS per hectoliter, excluding marketplace products, increased by 9.7%, while our full year guidance remains unchanged at between 4.5% and 7.5%. Consolidated cash SG&A grew by 10.7% in the quarter, mainly driven by higher sales and marketing expenses, reflecting a portion of brand activations during the FIFA World Cup. As we mentioned during our Q1 earnings call, these expenses tend to follow the timing of our mega events calendar. Q2 reflected that. Distribution expenses also increased in the period, mostly due to volume performance as well as one-off expenses in LAS as part of restructuring initiatives in Argentina. Taken together, these results illustrate how we think about resource allocation.

Guilherme Fleury: Consolidated cash COGS per hectoliter, excluding marketplace, increased by 2.2% in the period, supported by continued productivity and operational efficiencies across our footprint. Here, it is worth noting that in the H1 of the year, Brazil beer cash COGS per hectoliter, excluding marketplace products, increased by 9.7%, while our full year guidance remains unchanged at between 4.5% and 7.5%. Consolidated cash SG&A grew by 10.7% in the quarter, mainly driven by higher sales and marketing expenses, reflecting a portion of brand activations during the FIFA World Cup. As we mentioned during our Q1 earnings call, these expenses tend to follow the timing of our mega events calendar. Q2 reflected that. Distribution expenses also increased in the period, mostly due to volume performance as well as one-off expenses in LAS as part of restructuring initiatives in Argentina. Taken together, these results illustrate how we think about resource allocation.

[Company Representative] (Ambev): Our cost PMO initiative that started last year is based on a continuous improvement mindset together with choices to focus on growing return on invested capital, ultimately freeing up resources to reinvest in our strategic priorities and pursue our ambition of delivering consolidated margin expansion over time. On administrative expenses, it is important to remember that the effect of lower volumes in 2025 impacted our bonus accruals in the H2 of last year, creating a potentially tougher comparison base going forward. Now moving to below EBITDA lines. Net financial expenses totaled BRL 486 million in the quarter, a 50% reduction versus the same period of last year, mainly explained by two positive non-cash factors in the non-derivative instruments line.

Guilherme Fleury: Our cost PMO initiative that started last year is based on a continuous improvement mindset together with choices to focus on growing return on invested capital, ultimately freeing up resources to reinvest in our strategic priorities and pursue our ambition of delivering consolidated margin expansion over time. On administrative expenses, it is important to remember that the effect of lower volumes in 2025 impacted our bonus accruals in the H2 of last year, creating a potentially tougher comparison base going forward. Now moving to below EBITDA lines. Net financial expenses totaled BRL 486 million in the quarter, a 50% reduction versus the same period of last year, mainly explained by two positive non-cash factors in the non-derivative instruments line.

[Company Representative] (Ambev): First, in Bolivia, following an approximately 40% devaluation of the local currency in late June, we had a positive effect coming from the conversion of hard currency held in the company. These reserves were built to secure liquidity to meet expected foreign currency obligations, including payments to certain suppliers and dividends remittances. Second, a positive effect that came from other markets, where local currencies were more stable during the quarter, resulting in lower conversion losses on monetary balances compared to last year. On the Bolivia devaluation, it is worth noting that our consolidated income statement reflects average monthly FX rates as required under the applicable accounting standards. Going forward, the local currency devaluation is expected to gradually create a negative translation impact on our financial and operational results.

Guilherme Fleury: First, in Bolivia, following an approximately 40% devaluation of the local currency in late June, we had a positive effect coming from the conversion of hard currency held in the company. These reserves were built to secure liquidity to meet expected foreign currency obligations, including payments to certain suppliers and dividends remittances. Second, a positive effect that came from other markets, where local currencies were more stable during the quarter, resulting in lower conversion losses on monetary balances compared to last year. On the Bolivia devaluation, it is worth noting that our consolidated income statement reflects average monthly FX rates as required under the applicable accounting standards. Going forward, the local currency devaluation is expected to gradually create a negative translation impact on our financial and operational results.

[Company Representative] (Ambev): Turning to income taxes, our consolidated effective tax rate in the quarter was 19.9%, compared to 18.4% in Q2 2025, reflecting country mix effects over higher earnings before taxes, partially offset by regular income tax attributes. In H1, our ETR was 20.6%, broadly in line with the 20.3% recorded in H1 2025. As a result, both normalized and stated net income reached about BRL 3.5 billion, increasing 23.3% and 24.5% respectively versus last year. Normalized and stated earnings per share reached BRL 0.22, representing respectively a 24.2% and 25.4% increase versus last year. Turning to cash flow generation, let's go beyond the quarter and look at our performance in H1.

Guilherme Fleury: Turning to income taxes, our consolidated effective tax rate in the quarter was 19.9%, compared to 18.4% in Q2 2025, reflecting country mix effects over higher earnings before taxes, partially offset by regular income tax attributes. In H1, our ETR was 20.6%, broadly in line with the 20.3% recorded in H1 2025. As a result, both normalized and stated net income reached about BRL 3.5 billion, increasing 23.3% and 24.5% respectively versus last year. Normalized and stated earnings per share reached BRL 0.22, representing respectively a 24.2% and 25.4% increase versus last year. Turning to cash flow generation, let's go beyond the quarter and look at our performance in H1.

[Company Representative] (Ambev): Cash flow from operating activities totaled BRL 7.9 billion, an increase of BRL 3.6 billion, representing over 80% improvement versus the same period of last year. This was mainly driven by higher EBITDA and improved working capital dynamics, with payables reflecting our volume performance. Cash flow used in investing activities totaled BRL 3.3 billion, BRL 1.5 billion higher than in H1 2025, primarily closing our first quarter statement, partially offset by lower CapEx investments. It is important to note that we continue to invest with discipline in our operations, balancing brewery upgrades, capacity expansion, innovation capabilities, the expansion of our commercial assets base, and our technology infrastructure, all aimed at supporting long-term value creation. Cash flow used in financing activities totaled BRL 5.7 billion, BRL 7.1 billion below last year, mainly explained by our BRL 6.7 billion 2024 dividend payout in early 2025.

Guilherme Fleury: Cash flow from operating activities totaled BRL 7.9 billion, an increase of BRL 3.6 billion, representing over 80% improvement versus the same period of last year. This was mainly driven by higher EBITDA and improved working capital dynamics, with payables reflecting our volume performance. Cash flow used in investing activities totaled BRL 3.3 billion, BRL 1.5 billion higher than in H1 2025, primarily closing our first quarter statement, partially offset by lower CapEx investments. It is important to note that we continue to invest with discipline in our operations, balancing brewery upgrades, capacity expansion, innovation capabilities, the expansion of our commercial assets base, and our technology infrastructure, all aimed at supporting long-term value creation. Cash flow used in financing activities totaled BRL 5.7 billion, BRL 7.1 billion below last year, mainly explained by our BRL 6.7 billion 2024 dividend payout in early 2025.

[Company Representative] (Ambev): This cash flow performance support our shareholders agenda already demonstrated this year through, one, the execution of approximately 95% of our 208 million share buyback program announced in October last year, representing roughly BRL 3.2 billion cash disbursement until July. Two, the BRL 4.2 billion 2025 IOC payment announcements before withholding tax to be fully paid by 6 October. Three, the 2026 IOC declarations of BRL 1.8 billion made so far this year, before withholding tax to be paid by December. Altogether, such events represent BRL 5.9 billion returned to our shareholders on a pre-tax cash basis, as announced until the date of this report. Back to you, Lisboa.

Guilherme Fleury: This cash flow performance support our shareholders agenda already demonstrated this year through, one, the execution of approximately 95% of our 208 million share buyback program announced in October last year, representing roughly BRL 3.2 billion cash disbursement until July. Two, the BRL 4.2 billion 2025 IOC payment announcements before withholding tax to be fully paid by 6 October. Three, the 2026 IOC declarations of BRL 1.8 billion made so far this year, before withholding tax to be paid by December. Altogether, such events represent BRL 5.9 billion returned to our shareholders on a pre-tax cash basis, as announced until the date of this report. Back to you, Lisboa.

Carlos Lisboa: Thank you, Flury. Let me close with these three message. First, our H1 performance reinforce our conviction in the category. Beer is big, profitable, and growing in the majority of our markets with healthy fundamentals. Its cultural relevance and versatility allow us to serve a broad range of consumers' need states and occasions, giving the category meaningful room to grow. Second, as category captain, our role is to bridge the gap between beer's potential and actual consumption. We have what it takes to do that. A proven growth formula built around our three-pillar strategy is being deployed across our footprint through replicable models. Third, the flywheel is in motion and gaining momentum. We closed H1 with positive volume growth, high single digits net revenue growth, almost double digits normalized EBITDA growth with margin expansion, and double digits normalized EPS growth.

Carlos Lisboa: Thank you, Flury. Let me close with these three message. First, our H1 performance reinforce our conviction in the category. Beer is big, profitable, and growing in the majority of our markets with healthy fundamentals. Its cultural relevance and versatility allow us to serve a broad range of consumers' need states and occasions, giving the category meaningful room to grow. Second, as category captain, our role is to bridge the gap between beer's potential and actual consumption. We have what it takes to do that. A proven growth formula built around our three-pillar strategy is being deployed across our footprint through replicable models. Third, the flywheel is in motion and gaining momentum. We closed H1 with positive volume growth, high single digits net revenue growth, almost double digits normalized EBITDA growth with margin expansion, and double digits normalized EPS growth.

Carlos Lisboa: Solid operating cash flow supported continued shareholder returns. The consistency of this performance gives us confidence as we build on this progress in H2. Before I finish, I want to thank our teams and business partners across all markets for their ownership, resilience, and commitment, and for continuing to dream big to create a future with more cheers. Thank you very much for joining us today. With that, let me hand it over to the operator.

Carlos Lisboa: Solid operating cash flow supported continued shareholder returns. The consistency of this performance give us confidence as we build on this progress in H2. Before I finish, I want to thank our teams and business partners across all markets for their ownership, resilience, and commitment, and for continuing to dream big to create a future with more cheers. Thank you very much for joining us today. With that, let me hand it over to the operator.

Operator: We will now begin the Q&A session. To ask a question, we kindly ask sell-side analysts to click on the Raise Hand button at the bottom of the screen. To remove a question for the queue or after your question has been addressed, please click Lower Hand button. We kindly reinforce our request that each participant ask only one single question. Our first question comes from Nadine Sarwat with Bernstein. You can open your microphone.

Operator: We will now begin the Q&A session. To ask a question, we kindly ask sell-side analysts to click on the Raise Hand button at the bottom of the screen. To remove a question for the queue or after your question has been addressed, please click Lower Hand button. We kindly reinforce our request that each participant ask only one single question. Our first question comes from Nadine Sarwat with Bernstein. You can open your microphone.

Nadine Sarwat: Hello, everybody. Thank you for taking my question. I'd like to zoom in on Brazil NAB and on the -4.4 volume growth. Thank you for confirming that 30% of that decline was from the channel phase-out. Am I correct in assuming that that channel phase-out will continue to be a headwind year-on-year for the next three quarters? Then putting that to one side, can you share with us how the underlying soft drinks market did so that we can get a sense of that underperformance that you mentioned? How are you thinking about that segment in H2 of the year? Thank you.

Nadine Sarwat: Hello, everybody. Thank you for taking my question. I'd like to zoom in on Brazil NAB and on the -4.4 volume growth. Thank you for confirming that 30% of that decline was from the channel phase-out. Am I correct in assuming that that channel phase-out will continue to be a headwind year-on-year for the next three quarters? Then putting that to one side, can you share with us how the underlying soft drinks market did so that we can get a sense of that underperformance that you mentioned? How are you thinking about that segment in H2 of the year? Thank you.

Carlos Lisboa: Hi, Nadine. Lisboa here. Thanks for the question. You already mentioned about the phase-out, right? Let me just complement the point with the following. First, the NAB beer industry in H1 of this year was positive. We couldn't leverage that much because the recovery for us took longer than expected, because we were focused on correcting the commercial course. I mean, price relativity, market share performance, volume performance, without compromising the health of the P&L of our business unit. Okay. I'm glad that we closed Q2 very in line with our expectations. Took longer, but now we are very close because we corrected the price relativity without compromising what we delivered in terms of net revenue per hectoliter performance in the quarter. Two, the market share got pretty in line with historical levels by the end of the quarter. Right?

Carlos Lisboa: Hi, Nadine. Lisboa here. Thanks for the question. You already mentioned about the phase-out, right? Let me just complement the point with the following. First, the NAB beer industry in H1 of this year was positive. We couldn't leverage that much because the recovery for us took longer than expected, because we were focused on correcting the commercial course. I mean, price relativity, market share performance, volume performance, without compromising the health of the P&L of our business unit. Okay. I'm glad that we closed Q2 very in line with our expectations. Took longer, but now we are very close because we corrected the price relativity without compromising what we delivered in terms of net revenue per hectoliter performance in the quarter. Two, the market share got pretty in line with historical levels by the end of the quarter. Right?

Carlos Lisboa: Three, as a consequence, we saw our volumes also improving within this period, right? When we look forward, I think it's always good to have in mind that last year we had two different years within the year, right? Which means that we just cycled through the most tough comparison base for us volume wise and share wise, right? Which means that now moving forward, we're going to have a way better context to navigate with the recovery, on top the recovery of the balance that I just mentioned to you, right? In terms of health, I won't go into any sort of guidance about the industry moving forward, right? Given what I just mentioned to you, we should expect a way better situation for us on the NAB business in H2 of this year.

Carlos Lisboa: Three, as a consequence, we saw our volumes also improving within this period, right? When we look forward, I think it's always good to have in mind that last year we had two different years within the year, right? Which means that we just cycled through the most tough comparison base for us volume wise and share wise, right? Which means that now moving forward, we're going to have a way better context to navigate with the recovery, on top the recovery of the balance that I just mentioned to you, right? In terms of health, I won't go into any sort of guidance about the industry moving forward, right? Given what I just mentioned to you, we should expect a way better situation for us on the NAB business in H2 of this year.

[Company Representative] (Ambev): Adrian, Flory here. If I can just complement Lisboa, I also heard you asking about how that adjustment—the 30%—will continue on through the year. On that one, allow me to make two comments. That started, or that is part of, the resource allocation that we've been doing with Lisboa, thinking about profitability, channel, so on and so forth, and that is related to a specific fast-food channel that we've exited. Therefore, that will continue to lap throughout this year, okay?

Guilherme Fleury: Adrian, Flory here, if I can just complement Lisboa. I also heard you asking about how that adjustment, the 30% will continue on the year. On that one, allow me to make two comments. That started or that is part of the resource allocation that we've been doing with Lisboa, thinking about profitability channel, so on and so forth, and that is related to a specific fast food channel that we've exited. Therefore, that will continue to lap throughout this year, okay?

Nadine Sarwat: Perfect. Thank you very much.

Nadine Sarwat: Perfect. Thank you very much.

[Company Representative] (Ambev): Thank you.

Guilherme Fleury: Thank you.

Operator: Our next question comes from Thiago Duarte with BTG. Your microphone is open.

Operator: Our next question comes from Thiago Duarte with BTG. Your microphone is open.

Thiago Duarte: Hello. Thank you very much. Hello, Lisboa, Flory and everybody. My question is now moving to Beer, Brazil, and it's really trying to clean up the figures a little bit, considering the World Cup. You already mentioned the additional impact that the World Cup had in sales and marketing as you try to activate the brands and everything. If you could also extrapolate a little bit of that analysis into your top line for Beer, Brazil, both in terms of what you think the volume contribution was and also in terms on whether the event may have had an impact in terms of your revenue per hectoliter or average pricing for the quarter. That would be my question. Thank you.

Thiago Duarte: Hello. Thank you very much. Hello, Lisboa, Flory and everybody. My question is now moving to Beer, Brazil, and it's really trying to clean up the figures a little bit, considering the World Cup. You already mentioned the additional impact that the World Cup had in sales and marketing as you try to activate the brands and everything. If you could also extrapolate a little bit of that analysis into your top line for Beer, Brazil, both in terms of what you think the volume contribution was and also in terms on whether the event may have had an impact in terms of your revenue per hectoliter or average pricing for the quarter. That would be my question. Thank you.

Carlos Lisboa: Hello, Thiago. Nice to talk to you again. Let me answer your question starting from the overall assessment of the event—the World Cup, right? A positive is always important to emphasize that, and broadly in line with our expectations. For us, it was a six-month platform activation across portfolio channels, regions, and countries. Very different from one single brand campaign. Broad impact in line with what we were expecting across the footprint—not only Brazil, but Brazil, Argentina, Panama, Paraguay, and Canada. Pretty much all of them brought pretty interesting results, not only in volume and industry recovery, but also in terms of brand equity for our portfolio. Specifically about Brazil, what we estimated in terms of impact was around 0.5 to 1 percentage point in industry growth for the quarter. This is also in line with what we stated during our Q1 announcement.

Carlos Lisboa: Hello, Thiago. Nice to talk to you again. Let me answer your question starting from the overall assessment of the event, right, the World Cup. A positive is always important to emphasize that, and broadly in line with our expectations. For us, it was a six-month platform activation across portfolio channels, regions, and countries. Very different from one single brand campaign. Broad impact in line with what we were expecting across the footprint, not only Brazil, but Brazil, Argentina, Panama, Paraguay, and Canada, pretty much all of them bringing pretty interesting results, not only in volume, industry recovery, but also in terms of brand equity for our portfolio. Specifically about Brazil, what we estimated in terms of impact was around 0.5 to 1 percentage point in industry growth for the quarter. This is also in line with what we stated during our Q1 announcement.

Carlos Lisboa: It was very interesting for us because we could activate, I'm going to use Brazil as an example. Not only for our core brands, but we did so for pretty much all segments in our portfolio from core to premium with the introduction and acceleration of Michelob. We did so as well with the balance choice portfolio, and even with the beyond beer, we activated Flying Fish. It was very interesting for us to manage the portfolio during the tournament. In terms of overall performance for the volume performance for the quarter, we estimate that the industry is likely posted, as I mentioned during the intro. On top of that, we had a broad-based share gain that pretty much explains the overall volume performance of the company.

Carlos Lisboa: It was very interesting for us because we could activate, I'm going to use Brazil as an example. Not only for our core brands, but we did so for pretty much all segments in our portfolio from core to premium with the introduction and acceleration of Michelob. We did so as well with the balance choice portfolio, and even with the beyond beer, we activated Flying Fish. It was very interesting for us to manage the portfolio during the tournament. In terms of overall performance for the volume performance for the quarter, we estimate that the industry is likely posted, as I mentioned during the intro. On top of that, we had a broad-based share gain that pretty much explains the overall volume performance of the company.

Carlos Lisboa: When we look at net revenue per hectoliter, it's always good to have in mind that the first quarter result was a combination of a strong carryover on top of a prior year without any sort of carryover. On top of that, the initial implementation of calendar, the combination, and the mix. The combination of the three components delivered a very solid net revenue per hectoliter performance. We were expecting somehow a dilution of our carryover through Q2, and we kept the discipline on the rate side. As a consequence, we delivered for the semester, a net revenue per hectoliter that increased around 6%, which is 50% pretty much above inflation, with a good combination of rate in line with inflation, and a mix contribution on top of that.

Carlos Lisboa: When we look at net revenue per hectoliter, it's always good to have in mind that the first quarter result was a combination of a strong carryover on top of a prior year without any sort of carryover. On top of that, the initial implementation of calendar, the combination, and the mix. The combination of the three components delivered a very solid net revenue per hectoliter performance. We were expecting somehow a dilution of our carryover through Q2, and we kept the discipline on the rate side. As a consequence, we delivered for the semester, a net revenue per hectoliter that increased around 6%, which is 50% pretty much above inflation, with a good combination of rate in line with inflation, and a mix contribution on top of that.

Carlos Lisboa: I always like to emphasize as well, Thiago, the mission of the net revenue strategy for us, which is on one fold, protect profitability. However, on the other fold, also protect the accessibility of our consumers to the category. That's exactly the type of strategy we're going to keep in place for the residual part of the year.

Carlos Lisboa: I always like to emphasize as well, Thiago, the mission of the net revenue strategy for us, which is on one fold, protect profitability. However, on the other fold, also protect the accessibility of our consumers to the category. That's exactly the type of strategy we're going to keep in place for the residual part of the year.

Thiago Duarte: Thank you. Just one clarification from the statement you just made, Lisboa. You said you were already expecting some dilution from the net revenue per hectoliter into Q2, and I'm assuming that's because of the World Cup.

Thiago Duarte: Thank you. Just one clarification from the statement you just made, Lisboa. You said you were already expecting some dilution from the net revenue per hectoliter into Q2, and I'm assuming that's because of the World Cup.

Carlos Lisboa: No, it's because of the carryover dilution from Q1 to Q2 and due to the comp base against 2025. Keep in mind that, in Q2 last year, is when we kick off our net revenue agenda in the year. That's why we also saw an impact, a temporary impact in market share that we recover in Q3. That's the reason why we were expecting, not due to the World Cup.

Carlos Lisboa: No, it's because of the carryover dilution from Q1 to Q2 and due to the comp base against 2025. Keep in mind that, in Q2 last year, is when we kick off our net revenue agenda in the year. That's why we also saw an impact, a temporary impact in market share that we recover in Q3. That's the reason why we were expecting, not due to the World Cup.

Thiago Duarte: Perfect. It's because you're looking on a year-over-year basis.

Thiago Duarte: Perfect. It's because you're looking on a year-over-year basis.

Carlos Lisboa: Exactly.

Carlos Lisboa: Exactly.

Thiago Duarte: I was referring on a Q over Q basis.

Thiago Duarte: I was referring on a Q over Q basis.

Carlos Lisboa: Yeah.

Carlos Lisboa: Yeah.

Thiago Duarte: That's clear. Thank you so much.

Thiago Duarte: That's clear. Thank you so much.

Carlos Lisboa: Thank you very much.

Carlos Lisboa: Thank you very much.

Operator: Our next question comes from Carlos Laboy with HSBC. You can open your microphone.

Operator: Our next question comes from Carlos Laboy with HSBC. You can open your microphone.

Carlos Laboy: Yes. Hello. Kind of a different variant of the same question as previous quarters. It seems that your brand strength indicators and market share indicators for Brahma and Skol, in their respective regions of strength only. That they've been moving in the right direction, that the gaps you were trying to close have closed. Can you give us an update on that? Is the first question. The second question related to that is, do your premium and innovation efforts accrue a benefit to the quality image of your mainstream brands? In other words, how do you know that what you're doing with Corona and the Michelob ULTRA push that we just saw, and the quality image of those brands is creating sort of a halo maybe over your mainstream category or not? Thank you.

Carlos Laboy: Yes. Hello. Kind of a different variant of the same question as previous quarters. It seems that your brand strength indicators and market share indicators for Brahma and Skol, in their respective regions of strength only. That they've been moving in the right direction, that the gaps you were trying to close have closed. Can you give us an update on that? Is the first question. The second question related to that is, do your premium and innovation efforts accrue a benefit to the quality image of your mainstream brands? In other words, how do you know that what you're doing with Corona and the Michelob ULTRA push that we just saw, and the quality image of those brands is creating sort of a halo maybe over your mainstream category or not? Thank you.

Carlos Lisboa: Hey, Laboy, nice to talk to you, and a very interesting angle that you are bringing again to our discussion here. I'm passionate about this topic because one big dream that we have at Ambev, Laboy, is exactly about reimagining the beer category. What the beer category can be. By doing so, in the end, our role, our mission, is to bridge this future category image and the actual consumption, the actual portfolio that we have. The entire capture in the end that we are building here has this role for us. When you mention the premium, for sure, the premium enhances the image of the category. By doing so, obviously, you're going to see a halo effect in all segments.

Carlos Lisboa: Hey Laboy, nice to talk to you, and a very interesting angle that you are bringing again to our discussion here. I'm passionate about this topic because one big dream that we have at Ambev, Laboy, is exactly about reimagining the beer category. What the beer category can be. By doing so, in the end, our role, our mission, is to bridge this future category image and the actual consumption, the actual portfolio that we have. The entire capture in the end that we are building here has this role for us. When you mention the premium, for sure, the premium enhances the image of the category. By doing so, obviously, you're going to see a halo effect in all segments.

Carlos Lisboa: Whenever I do the same with the core, and somehow we challenge the status quo with the core, we also see a halo effect in other segments. This is the beauty about it. Everything that we are doing with balanced choices, for sure, brings new attributes for the beer category—better, stronger—and that's the way we perpetuate, right? Be the category captain. I already mentioned this. The key challenge that we have is to develop these new partitions of the category without compromising the core. We want to add on top. We want to keep the foundation solid, healthy, and build on top. That's the way we're going to bring more consumers to the category. We're going to jump into more drinking occasions. We avoid cannibalization. That's the game we are playing.

Carlos Lisboa: Whenever I do the same with the core, and somehow we challenge the status quo with the core, we also see a halo effect in other segments. This is the beauty about it. Everything that we are doing with balanced choices, for sure brings new attributes for the beer category better, stronger, and that's the way we perpetuate, right be the category captain. I already mentioned this. The key challenge that we have is to develop these new partitions of the category without compromising the core. We want to add on top. We want to keep the foundation solid, healthy, and build on top. That's the way we're going to bring more consumers to the category. We're going to jump into more drinking occasions. We avoid cannibalization. That's the game we are playing