Mexico City, Oct 28 - Mexican brewers Grupo Modelo and FEMSA posted strong quarterly net profit growth on Wednesday but were silent about recent talk of foreign acquisitions in the sector.
Leader Grupo Modelo, maker of Corona beer, posted a 32.5 percent rise in third-quarter earnings, driven by higher local beer volumes, although exports were weak due to the economic crisis hitting the United States.
Monterrey-based rival FEMSA posted a 25 percent jump in July-September net profit, which included its three main businesses: soft drinks, beer and convenience stores.
FEMSA, which makes the Tecate and Sol brands, has been in talks with Britain's SABMiller Plc and Heineken from the Netherlands about a possible sale of beer operations that could be worth billions of dollars.
That has fueled speculation that Modelo, already half-owned by AB InBev giant, could also be acquired.
Modelo said it saw signs of improvement in its foreign beer markets.
"Even though we are still showing a year-over-year drop, the rate of (exports) decline has diminished over the last two consecutive quarters as we are seeing better performance in certain regions," Modelo Chief Sales and Marketing Officer Jose Pares told investors during a conference call.
Modelo total revenue rose 11 percent in the period.
Modelo offered no news about an arbitration case it started in 2008 against Budweiser maker Anheuser-Busch related to the U.S. company's acquisition by Inbev NV, which created the world's largest beer company.
"It's something we don't have control of," Chief Financial Officer Emilio Fullaondo said during the call. "But hopefully soon we'll have some decision on that."
The Mexican brewer wants $2.5 billion in the arbitration case, the now Anheuser-Busch InBev said in August. Modelo argues it was not consulted about the takeover of Anheuser-Busch, which owned 50 percent of Modelo.
Resolving the dispute could open the way to talks between the two companies about an increased stake in Modelo, analysts say.
Sales at its FEMSA Cerveza unit rose 13 percent in the third quarter thanks to higher volumes and prices in key markets.
Modelo shares rose 0.45 percent to 60.20 pesos in noon trading on Wednesday while FEMSA shares inched down 0.89 percent to 57.92 pesos.