UPDATE 1-Mexico's Modelo 3rd-qtr profit falls 9 pct

Tue Oct 23, 2012 9:12am EDT

* Sales rise nearly 10 percent to 26.754 billion pesos

* Cost of sales up 11.2 pct

Oct 23 (Reuters) - Mexico's Grupo Modelo, maker of Corona beer, reported a nearly 9 percent drop in third-quarter profit on Tuesday due to higher costs for ingredients and foreign exchange losses.

Modelo, which is being acquired by top global brewer Anheuser Busch InBev SA, said profit dropped to 2.975 billion pesos ($231 million) from 3.266 billion pesos a year earlier. The cost of sales rose 11.2 percent.

Domestic sales volumes slipped 0.5 percent, while export volumes rose 4.8 percent, mainly driven by sales in the United States, Canada and Europe. Exports made up just over one-third of total sales, up slightly from last year.

Revenue rose 9.7 percent to 26.754 billion pesos. Corona is the top-selling imported beer in the United States.

Modelo in June agreed to a $20.1 billion deal that will give AB InBev the half of the Mexican brewer it does not already own.