Anheuser-Busch InBev (Ab InBev), the world's top brewer set to buy number two SABMiller, reported lower than expected earnings in the first three months after one of its most challenging quarters in crisis-hit Brazil in years.
The brewer of Budweiser, Stella Artois and Corona had already cautioned in February that it was likely to have a weak start to the year in Latin America's biggest economy. Its beer volumes fell by 10 percent.
Brazil, where AB InBev has two-thirds of the beer market, contracted at its sharpest rate since 1990 last year and the outlook for 2016 is nearly as bad with a political crisis now adding to its problems.
AB InBev's first-quarter core profit (EBITDA) rose by 2.5 percent excluding the impact of currencies and one-offs to $3.46 billion, compared with the average forecast in a Reuters poll of $3.73 billion.