Mexico City, July 28 - Modelo, Mexico's No. 1 brewer and maker of Corona beer, posted an 18.1 percent decline in second-quarter net profit on Friday as raw material and energy prices rose.
Modelo, half-owned by U.S. brewer Anheuser-Busch Cos Inc, which is being acquired by Belgian InBev NV, said its April-June net profit was 2.575 billion pesos ($250 million), down from 3.143 billion pesos a year earlier.
Modelo, which also makes Pacifico and Negra Modelo beers, said costs hurt its quarterly results, despite a slight increase in revenue.
"The cost of sales increased 8.6 percent as a result of higher prices for raw materials and energy," Modelo said.
National beer sales volumes rose 3.1 percent year-on-year and export volumes were 3.8 percent higher.
Core earnings before interest, tax, depreciation and amortization (EBITDA), fell 9 percent to 6.536 billion pesos.
On the InBev takeover of Anheuser, Modelo has said it has certain consent rights in the deal and has advised both parties that is it reserving its contractual rights.
Anheuser owns 50 percent of Modelo but does not have administrative or board control, which is in the hands of a voting trust run by a group of closely-tied Mexican families.
Modelo has said it is in talks with InBev on how both companies can work together should it consent to InBev becoming a minority owner of Modelo. ($1 = 10.307 pesos at end June)