Beer price rises helped Mexico’s largest brewer, Grupo Modelo, to offset lower domestic demand and increase sales in the first quarter of 2010.
Price rises on both domestic and export beers helped Modelo to net sales of MXN17.5bn (US$1.4bn) for the three months to the end of March, up 3.6% on MXN16.9bn in the same period of 2009.
The Corona brewer, like rival FEMSA, saw volume sales fall by around 6% at home Mexico during the period. Export volume sales crept up by 0.6%, largely thanks to improvement in the US in March.
Higher costs damaged Modelo’s operating profits, which fell by 5% for the quarter to MXN4.3bn versus MXN4.5bn a year earlier.
Exchange rate losses also caused the brewer to report an 8% drop in pre-tax profits, to MXN3.9bn.
However, lower tax charges saw the firm increase net income by 17%, to MXN2.1bn from MXN1.78bn.
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By GlobalData