Could Belvedere see the green shoots of recovery after its H1 profits lift?

Could Belvedere see the green shoots of recovery after its H1 profits lift?

Belvédère has reported a return to the black for its net profits in in the first half of 2013.

The French drinks group said late last week that net profits in the six months to the end of June came in at EUR122.6m (US$165.4m). The performance compares to net loss in of EUR51.4m in the corresponding period a year ago.

The company noted, however, that the performance was heavily influenced by financial gains from the conversion of debts related to floating rate notes (FRN) and the freeing-up of frozen liabilities. Together these contributed EUR152m to the bottom line.

Sales in the half-year, which were reported in August, were down by 5.8% to just over EUR404.1m. Operating losses improved, meanwhile, coming in at EUR6.9m compared to a loss of almost EUR10m in H1 last year.

In its biggest market, Poland, Belvédère posted an H1 operating loss of EUR1.8m on a 9% fall in sales.

The company said that it is expecting a better performance in Poland in the second half of the year.

Last month, Oaktree Capital Management relinquished its 38.1% stake in Belvédère.

For the company's official statement, which is in French, click here.