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UPDATE 3-Mexico's Modelo profit jumps on higher export sales
July 24, 2012 / 1:12 PM / 5 years ago

UPDATE 3-Mexico's Modelo profit jumps on higher export sales

* Q2 profit 3.635 bln pesos vs 2.878 bln pesos yr ago

* Revenue up 12 pct to 28.1 bln pesos

* Modelo shares up 1.1 pct

MEXICO CITY, July 24 (Reuters) - Grupo Modelo, the Mexican brewer being acquired by industry leader Anheuser Busch InBev SA, reported a 26 percent jump in second-quarter profit on Tuesday, helped by increased export sales and higher prices.

The Corona beer maker said export sales volumes rose 6.6 percent, mainly driven by sales in Asia, Canada and the United States, where it also benefited from the stronger U.S. dollar.

Exports made up almost a third of Modelo’s total sales. The company, which reports financial results in Mexican pesos, said revenue rose 12 percent to 28.1 billion pesos. Corona is the top-selling imported beer in the United States.

In Mexico, a price increase of 7.2 percent per hectoliter helped offset a 3.4 percent dip in volume sold in the quarter.

Quarterly profit climbed to 3.635 billion pesos ($272.5 million) from 2.878 billion pesos a year earlier.

The company also recorded a second-quarter gain of 359 million pesos from investments in glass bottle company DIFA and a bottled water venture with Nestle Waters, up 87 percent from the year-earlier quarter.

Modelo, which owns just under half of DIFA, agreed to buy the rest of the bottle maker at the end of June.

AB INBEV SALE

Modelo, controlled by Mexican families descended from the company’s founder, last month agreed to a $20.1 billion deal that will give AB InBev, the world’s biggest brewer, the half of the Mexican brewer it does not already own.

AB InBev, the owner of Budweiser and Stella Artois beers, will have 17 brands worth $1 billion each once it completes the purchase of Modelo.

The deal is set to be completed in the first quarter of 2013.

Modelo shares were up 1.1 percent at 123.72 pesos Tuesday. Mexico’s IPC stock index was down 0.3 percent.

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