The French wines and spirits group, Remy Cointreau, has posted a net attributable profit for the year to the end of March 2003 of €101.5m, up 6.5% from €95.3m the year before. The net figure was below analysts’ forecasts of around €107m.
However, operating profits were up by 2.2% at €213.8m which was ahead of analysts’ forecasts. Analysts had been forecasting a drop in operating profit from €209.1m to around €205m as a result of the weakness of the dollar and downward pressure on prices in the Polish vodka market.
The better-than-expected operating profit figure boosted Remy-Cointreau’s operating margin for the year from 20.5% to 21.4%. Group sales slipped by 1.9% to €1.0 billion.
Overall, a robust performance from the company’s Cognac and Champagne operations offset a weaker showing from other spirits brands.
The Cognac division recorded an operating profit of €149.3m, up by 2.5% from last year. Operating profit from Champagne was up threefold at €17.2m. But operating profit from other spirits fell by 12% to €61.5m.
Remy-Cointreau did not give any guidance for the 2003/2004 year other than to say that it was expecting to make €14m in savings from increased productivity and refinancing measures. The company also hinted at further disposals of non-core assets.
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