Pivnoe Delo


Top articles


Grupo Modelo’s quarterly volume grows by 8.8%

Grupo Modelo, S.A.B. de C.V. and Subsidiaries, the leading brewer in Mexico and producer of the best-selling Mexican beer in the world, on Friday announced its financial and operating results for the second quarter of 2011. During the second quarter of the year, total volume sold in the domestic market, including the imported brand portfolio, increased 8.0% compared to the same period in 2010, for a total of 10.9 million hectoliters.

“This is the result of the recovery in the consumption of our brands, the change in calendar for the Holy Week holiday, as this year the benefits were reflected during the second quarter instead of the first quarter, as happened last year, as well as favorable weather throughout the period”, the company said.

The export volume totaled 4.9 million hectoliters, an increase of 10.6% compared to the same period of the previous year. This growth is the result of a higher demand for Grupo Modelo’s products, the improved inventory levels of its wholesalers, as well as a low comparison base. During the second quarter Grupo Modelo had double- digit growth in almost every region. It is important to mention that in the US it had the beginning of its best selling season, and Crown Imports’ results continued to outperform the import category due to the strong performance of the company’s brands at the final consumer level. Exports represented 31.0% of the total volume compared with the 30.5% registered in 2010.

Therefore, the total volume sold was 15.7 million hectoliters, 8.8% above the same quarter of last year.

Net sales rose 8.2%, totaling 25,118 million pesos. Domestic sales showed a 13.1% increase, driven by the solid volume growth, and the 4.7% increase in the price per hectoliter, which reflects the price adjustment implemented at the end of February. Export sales increased 3.9% as the double-digit growth in volume more than offset the peso appreciation versus the dollar, which translated into a 6.1% decrease in the peso price per hectoliter. However, the price in dollars increased 0.2%. Net export revenue in dollars reached 835 million, a 10.8% increase compared to 2010.

During the second quarter, Crown Imports, LLC, registered net sales of 717 million dollars and an operating profit of 118 million dollars.

Cost of goods sold grew 10.8% as a consequence of the volume growth and a larger ratio of non- returnable presentations in the mix, due to the better performance of exports compared to the domestic volume. During the quarter the total cost per hectoliter grew 1.8%. Gross profit totaled 13,544 million pesos, a 6.1% growth compared to 2010. Gross margin stood at 53.9% compared to the 55.0% registered last year.

Operating expenses rose 6.3%, due to higher marketing, distribution, and technology expenses associated to different projects being developed in the organization. However, the increase was less than net sales. It is worth mentioning that the comparison base includes the extraordinary cost associated with the Compa??a Cervecera del Tr?pico strike in 2010. Total SG&A expenses per hectoliter decreased 2.3%. Operating profit totaled 6,806 million pesos, a 5.9% growth. The operating margin reached 27.1% compared to the 27.7% registered during 2010.

EBITDA (Operating income + Depreciation – Equity income of Associates) totaled 7,787 million pesos, a 9.1% increase compared to 2010. The EBITDA margin expanded 20 basis points to 31.0%.

The Comprehensive Financing Result showed a gain of 153 million pesos, a decrease of 51.5% versus 2010. This figure is mainly the result of the exchange rate loss due to the appreciation of the peso against the dollar in the period.

Other income and expenses registered an expenditure of 431 million pesos, of which most is related to profit sharing.

During the quarter taxes totaled 2,028 million pesos and the effective tax rate was 31.1%.

The net majority income was 2,888 million pesos, a 1.5% decrease against last year, because of the exchange rate loss and tax increase. Thus, the net margin stood at 11.5%.


Total volume grew 10.3%

Net sales increased 8.8%

EBITDA rose 11.4% and the margin expanded 70 basis points

During the first semester of 2011, total beer volume increased to 28.0 million hectoliters, a 10.3% growth compared to the same period of last year.

The domestic volume, including the imported brand portfolio grew 9.6%, totaling 19.5 million hectoliters, as the result of the solid demand for Grupo Modelo’s products, a low comparison base and favorable weather conditions. The export volume rose 12.2% to 8.4 million hectoliters, showing a strong demand for the company’s products, the improved inventory levels of its wholesalers, particularly in the US, and a low comparison base. It is important to mention that because of the strike at Compa?ia Cervecera del Tr?pico during the second quarter of 2010, the inventory levels in the distribution channel in the US decreased. Nevertheless, inventory levels were recovered during the third quarter of 2010. Exports represented 30.1% of the total volume compared to 29.6% in 2010.

Net sales rose to 44,369 million pesos, a growth of 8.8% in comparison to the same period of the prior year. The 12.4% growth in domestic sales came from higher volume and the 2.6% price increase. At the end of February, Grupo Modelo implemented a price increase in Mexico based on its revenue management system, aiming to maximize opportunities based on brands, presentation and territories.

Export revenues grew 6.1%, fueled by the double-digit volume growth, since the price per hectoliter in pesos decreased 5.5% due to the strength of the peso. Nevertheless, the price in dollars increased 0.5% during the period. Net exports revenue totaled 1,441 million dollars.

During the first semester of 2011, Crown Imports, LLC, registered net sales of 1,249 million dollars and an operating profit of 236 million dollars.

The cost of goods sold rose 8.6% mainly due to a higher share of exports in the total volume, which means that there were higher sales of non-returnable presentations. Gross profit totaled 24,141 million pesos, a 9.0% growth in comparison to the first semester of the previous year. Gross margin stood at 54.4%, which represented an expansion of 10 basis points in the period.

Operating expenses increased 8.8% due to higher marketing, distribution and technology expenses. Operating profit totaled 11,708 million pesos, a 9.2% increase. Consequently, the operating margin was 26.4%, marginally ahead of the 26.3% registered in 2010.

EBITDA (Operating income + Depreciation – Equity Income of Associates) totaled 13,654 million pesos, 11.4% higher than the one registered in 2010. This figure reflects a 20.3% increase in depreciation and amortization. The EBITDA margin stood at 30.8%, representing a 70 basis points growth compared with the previous year.

The Comprehensive Financing Result showed a gain of 154 million pesos, a 52.3% increase versus the previous year.

Other income and expenses registered an expenditure of 926 million pesos, a figure 22.8% higher than the previous year, due to an increase in the provision of employees’ profit sharing and the fixed asset write-offs.

The taxes line registered 3,073 million pesos, and the effective tax for the semester was 28.1%. The net majority income was 5,046 million pesos, a 0.5% growth. Net margin stood at 11.4%, compared to the 12.3% in 2010.

19 Июл. 2011



Main topics

Exact matches only
Search in title
Search in content
Search in comments
Search in excerpt
Search in posts
Search in pages
Search in groups
Search in users
Search in forums
Filter by Custom Post Type
Filter by Categories