(Adds details on earnings)
BRUSSELS, July 30 (Reuters) - Heineken NV, the world’s second-largest beer maker, cut its guidance for full-year margins on Monday after reporting first-half earnings below market expectations.
The brewer of Heineken lager, Tiger, Sol and Strongbow cider forecast that its operating margin would decline by 20 basis points, compared with a previous forecast of an increase of 25 basis points.
The Dutch brewer, whose Heineken lager is the top seller in Europe, said this was because of a higher-than-expected negative translational hit from currencies and a larger dilutive effect of its expanding Brazilian business.
Heineken had acquired the Brazilian operations of Japan’s Kirin in 2017, and became the number two player in that market, and had previously warned of an impact on the company’s margins.
Overall, the company’s beer volumes rose steepest in its two most profitable markets, Vietnam and Mexico, along with Brazil, Cambodia, South Africa, Ethiopia and Russia.
Stronger revenue growth was partly offset by higher expenses and increased input costs, Heineken said.
The brewer’s first-half operating profit before one-offs grew 1.3 percent on a like-for-like basis to 1.75 billion euros ($2.04 billion), below average forecast of 1.89 billion euros in a Reuters poll.
Earnings per share at 1.89 euros was also below the Reuters consensus forecast of 1.95 euros. (Reporting by Philip Blenkinsop; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)