FRANCE: Remy Cointreau H1 up, set fair for FY

Remy Cointreau has posted a healthy lift in both sales and profits in the six months to the end of September.

The French Champagne and spirits company said yesterday (26 November) that operating profit for the six-month period was up in organic terms by 12.7% on the same period a year earlier, reaching EUR65.6m (US$97.5m). The lift came on the back of increased sales, up 9.8% to EUR374.4m.

Net profit, which was hit by the inclusion of disposals in the corresponding period in 2006, subsequently halved in the six-months, to EUR38.1m from EUR75.7m.

Remy's Cognac brand, Remy Martin, posted sales growth in the half-year of 13%, with growth coming particularly from the higher end of the brand's range. All liqueurs and spirit brands recorded organic growth in turnover of 4.9%, with operating profit growing by 14% in the first six months. The best performances were achieved by Cointreau in Europe, particularly in the on-trade, by Metaxa in Central and Eastern Europe, and by Passoa. While sales of Champagne grew by 14.8%, operating profit for the half-year slid from EUR1.4m to EUR0.7m. "This is not significant compared with the full year which is forecast to be +30%," the company noted.

"The performance for the first six months of the year was in line with the guidance for significant organic growth in operating profitability for the year ended 31 March," Remy Cointreau concluded.