Modelo has posted a healthy rise in net profit for the fourth quarter. The Mexican brewer said yesterday (24 February) that cost reductions and one-time tax gains outweighed flat sales during the three-month period.

Net profit for the fourth quarter rose by 43.5%, reaching MXN1.68bn (US$150m). Revenue was only slightly higher than the corresponding quarter a year earlier, hitting MXN10.994bn, while earnings before tax and interest were up by 15.2% to MXN3.13bn.

Cost-cutting helped Modelo drive the operating results, although a reduction in the rate of corporate income tax, which has benefited many Mexican companies, also shored up the bottom line.

"Operating expenses fell 6.7% in the quarter, reflecting mainly the better use of infrastructure such as buildings and vehicles, and also improved efficiencies in distribution routes," Modelo said.

Earlier this week, Modelo revealed plans to increase prices in its domestic market in line with inflation.