Easter came too early

Grupo Modelo’s Chief Financial Officer Emilio Fullaondo said in a conference call with analysts that higher spending on marketing and distribution, including advertising related to the 2010 World Cup, pushed up costs. Its operating profit in the quarter slipped 1 percent, while EBITDA, a measure of cash flow, fell 2.2 percent.

Mr Fullaondo reiterated that Grupo Modelo’s corporate structure would remain unchanged after the company lost an arbitration case against partner AB-InBev, but said he couldn’t speculate on what would happen in the future.

The resolution in the arbitration case has obviously rekindled speculation that Grupo Modelo could try to buy back the stake from AB-InBev, or that AB-InBev could try to buy out or take a controlling stake in Modelo.