FRANCE: Remy Cointreau H1 hit by forex
Remy Cointreau has maintained its full year targets despite a sharp drop in H1 net profit. The drinks company said it still expects double digit pro forma growth for operating profits over the full year, although the negative impact of the strong euro dented profit for the six months to September.
Net profit for the period dipped to €20.5m from €35.4m in the same period last year. Although net profit on ordinary operations rose to €28.8m from €24.1m, operating profit for Remy Cointreau dropped to €68.7m from €72m.
Sales rose to €422.4m from €414.3m last year, a 2% reported increase, and a 6.3% rise on pro forma comparisons.
"Remy Cointreau's organic performance, achieving over 50% of its sales outside the Euro zone, has been offset by a negative exchange rate effect, despite the group's efficient hedging policy," the company said.
Operating profits from Cognac sales, Remy's largest product, fell to €47.4m from €56.3m, with a profit margin of 30.4%. The group said that pro forma Cognac growth of 7.8% was offset by a €13.3m negative impact from the strong euro against the dollar and other currencies.
Liqueurs profits edged up to €22.2m from €19.5m, with pro forma growth reaching 26.4%, as rising Cointreau sales in Asia and the US offset a sluggish European market, the company said.
Spirits profits rose to €24.9m from €22m, with growth driven by Bols Vodka sales in Poland, Mount Gay Rum in the US, and Metaxa in Eastern Europe, Remy said. The unit's operating margin rose to 29.3% from 26.6%, aided by price increases.
Champagne sales dropped to €3.8m from €5.9m, with the operating margin standing at 7%.
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