May 8 (Reuters) - Brazilian brewer Ambev SA ( ABEV )

posted a small decline in net profit for the first quarter but

the result handily beat expectations on a positive performance

by its home market.

In Brazil, volumes grew by 3.6% benefiting from Carnival

festivities with sales led by its Corona, Spaten and Original

brands. By contrast, other parts of South America were weaker

with sales in Argentina tumbling 19% due to a tough economic

environment.

Net profit for the Anheuser-Busch InBev unit

fell 0.4% to 3.8 billion reais ($749 million). That compares

with an LSEG consensus estimate for a 9.9% decline.

Overall sales were flat in volume terms but revenue fell

1.2% to 20.28 billion reais.

Ambev ( ABEV ) is Brazil's fourth-largest company by market

capitalization, behind oil giant Petrobras, miner

Vale and lender Itau.

($1 = 5.0744 reais)