CCU - Ambev: Net Revenue Has Already Rebounded Currency Headwinds Should Eventually Subside

• Ambev's net revenue has already rebounded from earlier in the pandemic, but the depreciation of the Brazilian real has meant both higher COGS and a lower share price in USD.
• The recent rise in commodity prices could set the stage for improved sentiment on Brazil and its currency, if/when pandemic and political concerns subside.
• Like any company, Ambev faces company-/sector-specific issues, including intensifying competition, as well as macroeconomic volatility that goes along with the region.
• Premium brands, DTC and B2B technology platforms, and non-alcoholic beverages should help to give it avenues for longer-term growth.

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