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Ambev SA ABEV, +2.42% ABEV3, +0.68% said Thursday its profit fell in the fourth quarter from a year earlier as the brewer’s costs jumped amid the Covid-19 pandemic.

The Sao Paulo-based company’s net income declined to 3.7 billion reais, equivalent to $738.5 million, from BRL6.9 billion a year earlier.

Net revenue rose to BRL22 billion from BRL18.6 billion in the year-earlier period, and adjusted earnings before interest, taxes, depreciation and amortization fell to BRL6.8 billion from BRL8.9 billion.

Ambev is controlled by Anheuser-Busch InBev SA BUD, +1.99% ABI, -3.43%, the world’s biggest beer producer, and brews and markets brands including Budweiser, Brahma and Corona. Brazil is Ambev’s biggest market, but the company also operates in other countries in the Americas including Canada, Argentina and Chile.

The company’s costs increased, with the total cost of goods sold rising 28% from the fourth quarter of 2020 to BRL10.5 billion, and total sales, general and administrative costs also up 28%, to BRL6.5 billion.

The company said the Covid-19 pandemic helped push transportation and input costs higher in 2021 and it is still seeing Covid-related pressures in 2022, though less than last year. Ambev also said it expects to experience Covid-related volatility in the short term.

Write to Jeffrey T. Lewis at [email protected]

Source: This post first appeared on http://marketwatch.com/

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