FRANCE: Cognac keeps Rémy Cointreau riding high in H1

By | 27 November 2012

  • First-half net profits up by 83% to EUR86.6m (US$108.3m)
  • Net sales H1 rise by 13.3% to EUR595.8m
  • Operating profits jump by 18% to EUR141.5m
  • Rémy Martin Cognac posts 44.1% leap in operating profits
Rémy Cointreau is benefiting from a Cognac boom in China

Rémy Cointreau is benefiting from a Cognac boom in China

Rémy Cointreau has reported a major increase in first-half net profits driven by Cognac sales in the US and China.

Net profits in the six months to the end of September jumped by 83% to EUR86.6m (US$108.3m), the Paris-based company said today (27 November). As announced last month, net sales increased on an organic basis by 13.3% to EUR595.8m over the same period, while operating profits rose - again on an organic basis - by 18% to EUR141.5m, the company said.

Remy, which recently bought Islay Scotch maker Bruichladdich, said it had enjoyed “an excellent first half-year” during which operating margins increased from 22.4% last year to 23.7%. “This six months performance was due to strong business momentum in all regions of the world,” it said. “The group once again achieved remarkable growth in Asia and the US and, to a lesser extent, in Europe.”

The results mirrored Remy's strong Q1 results, when sales in the three months to the end of June leapt by 24.4% year-on-year in organic terms and Rémy Martin Cognac sales climbed by 37.8%.

In today's numbers, Remy's Cognac division - which now accounts for 63% of annual sales - reported a 44.1% increase in operating profits and a two percentage point rise in operating margins as demand in China continued to surge. US demand was also strong, helping Remy Martin to its third year in a row of H1 double-digit growth.

Liqueurs and spirits saw organic sales increase by 3.5%, with Cointreau showing growth in the US and Europe. Remy's partner brands, which account for 18% of sales, posted a 4.1% sales increase primarily due to the strong performance of Scotch in the US. Champagne sales remained “challenging”, particularly in Europe, Remy said.

Europe was Remy's weakest regions, with slower growth hampering the company's full-year outlook.

“In an uncertain economic environment, particularly in Europe, Rémy Cointreau confirms the effectiveness of its value and long-term strategy,” Remy said. “Management will continue to implement strict cost control in the second half of the year, whilst closely monitoring market developments.”

Second-quarter figures were not released in Remy's preliminary results.

In early trading today, Remy's shares increased by about 6%.

To read the company's official statement, click here.

An exclusive interview with the management of Bruichladdich can be read here.

Expert analysis

Remy Cointreau - SWOT, Strategy and Corporate Finance Report

Remy Cointreau - SWOT, Strategy and Corporate Finance Report, is a source of comprehensive company data and information. The report covers the company’s structure, operation, SWOT analysis, product and service offerings, detailed financials, and corporate actions, providing a 360° view of the company.

Sectors: Company results, Emerging markets – BRIC, Spirits

Companies: Cointreau, Remy

View next/previous articles

Currently reading -

FRANCE: Cognac keeps Rémy Cointreau riding high in H1

There are currently no comments on this article

Be the first to comment on this article

Related research

Wine

This report analyzes the worldwide markets for Wine in Million Litres. It includes all wine categories, still, (red, white and rose), sparkling, fortified, vermouth, non-grape wine, wine coolers and ice wine. The report provides separate comprehensiv...

Related articles

just the Facts – The Power 100 2013

Earlier this week, brand valuation consultancy Intangible Business released the results of its latest survey of the world's spirits brands. Here's a look at the top ten, along with the methodology used to draw up 'The Power 100'.

just On Call - Diageo expects China softness to remain in 2013

Diageo's Asia-Pacific boss expects the spirits market in China to remain "soft" for the rest of 2013, but is encouraged by the performance of the company's super-deluxe Scotch whisky brands in the country.

Analysis - US job losses hit Europe's brewers

Europe's big brewers saw their volumes in the US drop back in the first three months of the year as unemployment among young men hurt sales, an analyst has said.

just-drinks tagline

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page