AB InBev cuts Brazil outlook as homes in on SABMiller
BRUSSELS, July 29 (Reuters) - Anheuser-Busch InBev, the world's largest brewer, cut its guidance for growth this year in Brazil due to the struggling economy on Friday and said it aimed to seal the purchase of nearest rival SABMiller this year.
The maker of Budweiser, Stella Artois and Corona raised its $100-billion-plus takeover bid for SABMiller on Tuesday to quash investor dissent over an offer made less attractive by a post Brexit vote fall in the pound.
Core profit in the second quarter rose by 4.3 percent on a like-for-like basis to $4.01 billion, below the average Reuters poll forecast of $4.13 billion.
The company saw earnings growth in the United States, Mexico and China, but was still suffered in its second-largest market, Brazil due to an economic downturn.
The company sold 4.5 percent less beer in Brazil than a year earlier, an improvement from the 10 percent drop in the first quarter, but below AB InBev's own forecasts.
It said it now expected Brazil revenue this year to be similar to the level of 2015, down from previous guidance of growth by a mid to high single digit percentage.
The company has forecast that its revenue per hectolitre will grow ahead of inflation, partly as it pushes drinkers over more expensive beers, but with challenging conditions in Brazil and China. (Reporting By Philip Blenkinsop)
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