The French wine company, Groupe Michel Laroche, has reported a sharp decline in net and pre-tax profit. Net profit for the fiscal year to the end of March 2005 fell to €100,000 (US$121,580), from €1.1m in 2003/2004.

Operating profit was halved from €3.1m to €1.5m, while pre-tax profit fell to €300,000 from €1.9m, on sales down from €32.4m to €26.6m. The company's accounts are in compliance with the International Financial Reporting Standards (IFRS).

Laroche is expecting to benefit in fiscal 2005/2006 from the commercial and marketing reorganisation which was begun two years ago, while a recovery in prices is also expected to improve margins and allow the company to increase promotion.