AmBev Q2 Profits Up on Rising Beer Volume

AmBev (NYSE:ABV) reported that it earned 1.96 billion Brazilian reais ($960 million) during the second quarter. That was up 6.6% compared to 1.84 billion reais in the same period of 2011.

Revenue at the Brazilian beer and beverage maker rose to 6.8 billion reais, compared to 5.8 billion reais last year. EPS for the quarter was 0.63 reais, up from 0.59 reais last year.

Shares of AmBev rose fractionally in Tuesday afternoon trading in New York.

Company officials noted that beer volume and revenues had grown despite signs of a cooling Brazilian economy, Dow Jones noted. Soft-drink volumes also grew, which the company attributed to an increased number of products, new flavors and the introduction of nonalcohol drinks.

AmBev noted that in light of increases in Brazilian excise taxes, the company would increase capital spending to 2.5 billion reais for the year.

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