Heineken’s effort to expand in Brazil, a home market of its chief rival Anheuser-Busch InBev, put pressure on the Amsterdam brewer’s first half 2018 profit margins, the brewing giant said on Monday.

Heineken booked first-half net profit 9.1% higher at €950m on turnover of €10.8bn, a 4.2% increase over the first six months of 2017. But, the company said, it was updating its operating profit margin guidance for the full year to a decrease, due in part to its activities in Brazil.

Heineken is the world’s second-largest brewer, a position it has also achieved in Brazil but at a cost. The beer business in Brazil is less profitable than elsewhere, news agency Bloomberg said.

Heineken became Brazil’s second-biggest brewer in 2017 when it bought Japanese brewer Kirin’s operations there for just under $600m. Heineken has stepped up marketing in Brazil causing a decline in overall profitability despite selling more beer.

Heineken’s brands in Brazil now include Schincariol in the mass-market segment as well as more expensive Devassa and Eisenbahn lagers.