• Net profits down but operating profits lift
  • Cognac offsets Champagne sales slide
  • Group confident on new distribution 

Remy Cointreau has reported a fall in half-year earnings, but operating profits and sales were boosted by higher sales of high-end Cognac in China.

Net profits for the six months to the end of September fell to EUR39.4m (US$58.9m), compared to EUR48.3m in the same period of last year, Remy Cointreau said today (25 November).

The Cognac and Champagne group's share price remained level at EUR34 in early trading, after it reported a 2% rise in like-for-like current operating profits for the six months.

Last month, Remy said net sales for the period fell by around 1%, as higher premium Cognac sales in Asia helped to offset a 42% sales slide at the firm's smaller Champagne business.

Remy said it remains confident after exiting the Maxxium Worldwide distribution venture in April this year.

"Positive results are already being felt from the group's new distribution model," it said. "The company was able to take advantage of this new asset in order to resist the difficult economic environment."

The firm predicted "slight growth" in like-for-like current operating profits for its full-year.

For the full announcement, click here.