UPDATE 2-Ambev profit misses, Brazil revenue outlook flat; shares fall
(Adds details from conference call, financial results)
By Ana Mano
RIO DE JANEIRO, July 29 (Reuters) - Ambev SA, a subsidiary of beverage company Anheuser Busch Inbev SA, missed quarterly profit estimates and gave up on expanding sales in Brazil this year, sending its shares to their lowest point in nearly seven months.
Ambev now expects that its Brazilian net revenue this year will be unchanged from 2015, down from a previous estimate of single digit revenue growth, according to a securities filing.
Brazil's largest brewer posted an 18 percent decline in second-quarter net income from a year earlier to 2.046 billion reais (US$623 million), citing rising operating and financial expenses. It missed a Thomson Reuters consensus estimate of 2.66 billion reais.
Shares fell 3.14 percent to 18.83 reais in afternoon trading in Sao Paulo.
The company is likely to struggle for the next two quarters as Brazil grapples with its worst recession in eight decades, executives said.
"Brazil will get back on track in the medium to long term," Chief Executive Officer Bernardo Paiva said during a conference call on Friday to discuss earnings.
He said sponsorship of sporting events, including the Olympics and the launch of the nationwide returnable bottles campaign, should help "build momentum" to restore market share over the coming quarters. Continuación...