Domestic beer sales drop in third quarter 2010

Thank heavens Grupo Modelo could improve pricing. That’s why net sales grew 5.0 percent, totalling 23,233 million pesos (USD 1.87 billion). Domestic sales showed an increase of 2.4 percent. Export revenues in pesos increased 6.2 percent and stood at 45.1 percent of net sales. The net export revenues were USD 821 million, a 10.5 percent increase compared to the same quarter of 2009.

However, net profit fell 15.3 percent due to higher costs and taxes. The brewer earned 2.496 billion pesos (USD 198 million) in the July-to-September period compared with 2.948 billion pesos in the same quarter of 2009, the company said in a statement.

Costs rose due to greater use of nonreturnable bottles, higher marketing expenses and a 33-percent rise in taxes compared with the year before, the company said.

Still, EBITDA rose 2.4 percent, reaching 30.4 percent in the quarter.