According to consensus estimates available on Bloomberg, Brazilian real GDP is expected to grow at 0.15% and 4.75% during 2009 and 2010, respectively. During the quarter, the Brazilian consumer confidence index increased 1.6 % to 117.2 from 115.4 in the previous quarter, being the highest over the past 7 quarters. Furthermore, during the quarter, the Brazilian consumer price index increased to 3.93% higher over the past 6 quarters. We expect this rate to increase over the next…

Compania de Bebidas das Americas (AmBev) preferred stock has appreciated significantly since our previous company news alert dated, dated 04 September 2009, reflecting a reduction in country risk premium, upgradation of the company’s foreign currency issuer rating and broader market movement. Furthermore, we expect robust growth in Brazil beer volumes to drive full-year revenue growth over the next two years. In light of these factors and a positive outlook for Brazilian economy,...

While net sales were in line with our estimate in 2Q 09, operating margin was below our expectations, reflecting higher-than-anticipated Selling, General & Administrative (SG&A;) and Depreciation & Amortisation (D&A;) expenses, as a percentage of revenues. However, adjusted1 net margin was above our expectation due to lower-than-expected net finance and tax expenses during the quarter. In light of mixed 2Q 09 results and current price levels, we maintain our HOLD rating for…