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UPDATE 1-Brazil's Ambev quarterly profit falls 9.4% as lockdowns weigh

(Adds adjusted EBITDA margin for quarter, background)

SAO PAULO, Oct 29 (Reuters) - Brazilian brewer Ambev SA reported a 9.4% drop in third-quarter net profit on Thursday, as weak demand during the pandemic put pressure on prices and margins.

The Latin American unit of Anheuser Busch InBev said net income fell to 2.36 billion reais ($419.63 million) in the quarter ended Sept. 30, from 2.6 billion reais a year earlier.

The quarter saw a sequential rebound on improved distribution flow of alcoholic beverages, including its Budweiser, Corona and Stella Artois brands, after COVID-19 lockdowns depressed sales earlier in the year, especially at bars and restaurants.

Ambev has been shifting resources to other sales channels including e-commerce, through its Ze Delivery app, as well as mom and pop stores.

Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin for the third quarter slid to 32.5%, from 36.9% in the same quarter a year earlier.

Shares have slumped 28% so far this year as the company struggles with tough competition that has put pressure on prices.

$1 = 5.6240 reais Reporting by Christian Plumb in Sao Paulo and Bhargav Acharya in Bengaluru; Editing by Sriraj Kalluvila