Mexico's largest brewer, Grupo Modelo, the maker of the popular Corona beer, said on October 20 its third-quarter net profit grew 8.2 % following a solid rise in exports, mainly to the United States. Modelo, 50 % owned by the world's No. 1 brewer Anheuser-Busch Co Inc., lagged analysts' expectations with earnings of 1.134 billion pesos ($102 million), Reuters said.

A Reuters poll of analysts had forecast a net profit of 1.250 billion pesos for Modelo in the July-September period. Modelo said domestic volume shipments rose 2.9 % in the quarter and exports, mainly to the United States, jumped 8.2 %. "Export growth is a reflection of volumes sold to the final customer in the United States, a situation which is helped by the degree of acceptance of our beer brands in that country, especially Modelo Especial and Corona Light, which saw growth of almost 20 %," Modelo said in a statement.

"In Mexico, our 2002 prices remain in place, a factor which has driven volumes and despite the difficult weather in the quarter in central and south Mexico," Modelo said in a statement.

Mexico had unusually heavy rain in the quarter, which normally has a negative impact on beer drinking. Revenues for Modelo rose 2.6 % to 9.829 billion pesos beating market expectations. The Reuters poll had expected revenues of 9.807 billion pesos. Modelo said the increase in revenues was down to the 4.4 percent increase in total volumes -- adding local sales and exports together.

"Domestic (net) sales were down 2.2 % stemming from the stability of the prices of Modelo products in its home market," Modelo said. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the third quarter totaled 3.040 billion, up 4.3 % and slightly higher than the 3.087 billion pesos expected in the Reuters survey.

21 October, 2003