SAO PAULO, Brazil, Feb. 28 /PRNewswire-FirstCall/ -- Companhia de Bebidas das Americas -- AmBev [BOVESPA: AMBV4, AMBV3; and NYSE: ABV, ABVc], the world's fifth largest brewer and the leading brewer in Latin America, announces today its results for the fourth quarter 2007 (Q4 2007). The following financial and operating information, unless otherwise indicated, is presented in nominal Reais and prepared in accordance with Brazilian GAAP and should be read in conjunction with our annual report for the twelve month period ending December 31, 2007. Our press release segregates the impact of organic changes from those arising from changes in scope or currency translation. Scopes represent the impact of acquisitions and divestitures and the start-up or termination of activities. Comparisons, unless otherwise stated, refer to the fourth quarter of 2006 (Q4 2006). Values in this release may not add up due to rounding. OPERATING AND FINANCIAL HIGHLIGHTS AmBev reports strong Q4 2007 results. Disciplined and consistent execution against our initiatives results in a track record of EBITDA growth quarter after quarter. Strong volume growth: Our total volumes increased organically by 8.9% during Q4 2007. Both Brazil and our operations in Quinsa delivered double- digit organic volume growth of 10.2% each. North America reported volume growth of 7.2% including the Lakeport acquisition, with organic volumes increasing by 1.2% on Q4 2007. Top line growth exceeding volume growth: Net sales increased organically by 14.1% during Q4 2007 as we continue to focus on revenue management and the development of the premium segment in Brazil and Argentina. Strong Market Share Performance: Focused marketing campaigns and very well-executed proprietary events helped to build preference and share for our brands. In December 2007, Beer Brazil delivered market share growth for the ninth consecutive month and both CSD Brazil and Quinsa Beer and CSD gained share year over year. Financial discipline and cost efficiency: Increases in cost of goods sold from general inflation, labor costs and the cost of certain raw materials (e.g. corn) were fully offset by the positive impact of our efficiency initiatives and commodity and currency hedges, leading to flat organic growth on a per hectoliter basis. SG&A (excluding depreciation and amortization) increased organically by only 2.2% during Q4 2007, despite strong volume growth, and inflationary pressures, and was in line with our expectations and comments made in Q3 2007. Q4 performance stronger than previous quarters: Our EBITDA reached R$2,795.2 million during Q4 2007, which represents an organic increase of 24.3%. Our EBITDA margin continued its expansion yoy, improving by 400 basis points organically. All of our main operations maintained or improved margins on an organic basis. Strong payout and Financial discipline: During Q4 2007, AmBev returned to shareholders R$ 694.3 million in buybacks and R$ 1,288.9 million in dividends including R$ 979.2 million declared during Q3 and paid in Q4 (October), amounting to a total payout in 2007 of R$ 3.1 billion in buybacks and R$ 2.0 billion in dividends. Financial Highlights - AmBev Consolidated % % R$ million 4Q06 4Q07 As reported Organic Total Volumes 40,221.2 44,055.2 9.5% 8.9% Beer 29,316.9 31,667.3 8.0% 7.2% CSD and Nanc 10,904.2 12,387.9 13.6% 13.3% Net Sales 5,269.5 5,826.4 10.6% 14.1% Gross Profit 3,473.5 3,938.7 13.4% 16.7% Gross Margin 65.9% 67.6% 170 bps 150 bps EBITDA 2,325.3 2,795.2 20.2% 24.3% EBITDA margin 44.1% 48.0% 380 bps 400 bps Net Income 1,181.0 1,132.0 -4.1% No. of shares outstanding (million) 637.2 615.6 -3.4% EPS (R$/shares) 1.85 1.84 -0.8% EPS excl. goodwill amortization (R$/shares) 2.42 2.69 11.3% Financial Highlights - AmBev Consolidated % % R$ million YTD07 YTD06 As reported Organic Total Volumes 128,148.0 142,916.1 11.5% 5.8% Beer 93,974.0 102,990.3 9.6% 4.6% CSD and Nanc 34,174.0 39,925.9 16.8% 9.0% Net Sales 17,613.7 19,648.2 11.6% 10.4% Gross Profit 11,665.0 13,102.2 12.3% 11.4% Gross Margin 66.2% 66.7% 50 bps 60 bps EBITDA 7,444.6 8,666.9 16.4% 16.0% EBITDA margin 42.3% 44.1% 180 bps 210 bps Net Income 2,806.3 2,816.4 0.4% No. of shares outstanding (million) 637.2 615.6 -3.4% EPS (R$/shares) 4.40 4.58 3.9% EPS excl. goodwill amortization (R$/shares) 6.42 7.41 15.5% Note: Per share calculation is based on outstanding shares (total existing shares excluding shares held in treasury). The full release is available at http://www.ambev-ir.com/ DATASOURCE: American Beverage Company CONTACT: For additional information, please contact the Investor Relations Department: Michael Findlay, +55-11-2122-1415, or Isabella Amui, +55-11-2122-1414, Web site: http://www.ambev.com.br/

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