Mexico: Grupo Modelo net profit rises on strong sales
Mexican largest beer maker, Grupo Modelo, the brewer of Corona beer, half owned by Anheuser-Busch Cos. Inc., announced on October 28 a 24 % rise in third-quarter net profit on higher domestic and export sales. Modelo said on October 28 its July-September net profit was 1.887 billion pesos ($175 million), much higher than expected, according to Reuters.
Revenues for Modelo, which is half owned by U.S. giant Anheuser Busch Cos. Inc., increased 6.8 percent to 12.516 billion pesos, also higher than consensus. A Reuters survey had forecast Modelo's net profit to come in at 1.672 billion pesos and revenues at 12.174 billion pesos.
Modelo said domestic sales volumes rose 2.1 percent in the quarter, lower than rival Femsa's 5.5 percent beer volume growth for the period, meaning Femsa ational market share. The Mexican brewers have a duopoly in the national market.
Exports for Modelo were solid, up 15 percent -- but again not as strong of Femsa's exports which soared 18.7 percent in the quarter. Femsa said its sales rose handsomely in the United States, Canada and Europe.
"In the domestic market, volume growth was 2.1 percent because of a difficult comparison (from the third quarter of 2004) and because of adverse weather in Modelo's main sales regions," the brewer of Victoria and Pacifico brews said.
Hurricane Emily hit the southwestern beach resort of Cancun in July and other storms have hit Modelo's top sales regions in the center and south of the country.
Modelo's shares were down 1.13 percent to 33.21 pesos as the wider Mexican bourse trended upward. ($1 = 10.7635 pesos at end Sept.)
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