Modelo profit drops in fourth quarter - Brief Article

Modern Brewery Age, March 4, 2002

Grupo Modelo, Mexico's leading brewer, reported last week that its fourth quarter operating profits fell sharply. In a statement, the company said that weak national sales could not offset higher marketing and sales costs.

Modelo reported an operating profit of 1.645 billion pesos for October-December, lower than market expectations for 1.66 billion pesos.

Total sales rose 6.5 percent to 7.96 billion pesos, as domestic beer sales increased a meagre 2.4 percent. Exports, which amount to 25 percent to 30 percent of sales volumes, grew 30.4 percent. Total sales costs jumped 9.8 percent.

Modelo is half-owned by Anheuser-Busch Companies. Inc.