First Eagle Comments on Ambev

The global flareup of the Delta variant of Covid-19 has weighed on the stocks tied to socialization and entertainment, including Brazilian brewer Ambev (

ABEV, Financial). Further, inflationary pressures—spawned by the commodity rally, drought and a weaker currency—have challenged Brazil’s nascent economic recovery and pushed input costs higher for many companies. Amid this difficult backdrop, Ambev (a subsidiary of Anheuser-Busch InBev) has reaped the benefits of its conservative management and strong balance sheet, aggressively bolstering its already-dominant market share in many South and Central American markets. We believe the company is poised to benefit from favor-able demographics and attractive consumption trends once the Brazilian economy gets back on track.

From the


First Eagle Investment
(Trades, Portfolio) Global Value Team’s third-quarter 2021 commentary.

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Disclosures

I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The views of this author are solely their own opinion and are not endorsed or guaranteed by GuruFocus.com

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