• Full-year net profits plunge by 52.2% to EUR62.4m (US$85m)
  • Operating profits in 12 months to end of March also fall, by 38.8% to EUR150.2m
  • Sales decrease by 13.5% to EUR1.03bn
Remy Cointreau saw its profits tumble in the 12 months to the end of March

Remy Cointreau saw its profits tumble in the 12 months to the end of March

Remy Cointreau has emphasised its confidence in the current fiscal year, despite a poor performance in its most recent 12 months.

The spirits company, whose portfolio is dominated by the Remy Martin Cognac brand, said earlier today (5 June) that net profits in the 12 months to the end of March slumped by 52.2% to EUR62.4m (US$85m). Operating profits were down by 38.8% on the back of previously-announced sales of EUR1.03bn.

The results contrast markedly with the 12-month figures posted a year ago.

However, the firm had issued a warning of a stark slide in profits, when it released its full-year sales results in April.

Looking ahead, the company said it is entering the new fiscal year “with confidence” and expects to return to organic sales and operating profits growth. 

Today's figures showed a 42% slump in operating profits for Remy Martin as sales in China tumbled because of anti-gifting measures imposed by the government. The sales drop has seen Remy Martin's share of the company's total sales fall from 30% at the end of fiscal 2012/13 to 23% at the end of fiscal 2013/14. 

Remy said that despite the disappointing performance in China, Remy Martin found momentum in the US, Japan, Russia and Africa.

Remy Cointreau's share price fell 3% when markets opened this morning but it has since rallied and is 2% ahead.

To read the company's official statement, click here.