News

Remy Cointreau stems H1 profits fall

Most popular

The beer category in 2018 - Review

The beer category in 2019 - just-drinks predicts

Is craft spirits approaching a reset moment?

How beer faces the growth challenges of tomorrow

MORE
  • H1 net profits down 9% to EUR62.7m (US$78m)
  • Net sales in six months to end of September down 16% to EUR471.8m
  • Operating profits decline 23% to EUR102.1m
  • Remy Martin operating profits fall 33% to EUR78m

Remy Cointreau has slowed falling profits in its fiscal first half, but has warned that Cognac trends in China continue to damage performance.

Remy Cointreaus Cognac unit is under pressure in China

Remy Cointreau's Cognac unit is under pressure in China

The company, which last year issued a warning after H1 profits dropped 20%, said today that profits in the six months to the end of September fell by 9% to EUR62.7m (US$78m). Net sales in the period were down 16% to EUR471.8m in the same period while operating profits declined by 23% to EUR102.1m.

As highlighted in a sales update last month, the company's Remy Martin Cognac brand was behind the declines as it suffered from on-going destocking in China caused by anti-extravagance measures introduced in late-2012.

The brand saw operating profits fall 33% to EUR78m in the six-month period on top of a 15% sales slip.

Remy's non-Cognac units performed well, with its Liqueurs & Spirits division increasing operating profits by 23%. Operating profits from the 'Partner Brands' segment were down 12% but, excluding the termination of a US distribution deal with Edrington in March and on an organic basis, the unit posted a 14% operating profits rise.

Remy said underlying global Cognac trends remained firm.

“Rémy Martin Cognac remained adversely affected by evolving consumption patterns in China, while the strength of the brand is confirmed in most of its other major markets,” the company said.

As of 1202 CET today, Remy's share price was up 2.3% on the Paris exchange.

To read the company's full results, click here.


Related Content

Remy Cointreau eyes H2 ad campaign bounce for stuttering Liqueurs & Spirits - results data

Remy Cointreau eyes H2 ad campaign bounce for stuttering Liqueurs & Spirits - results data...

Remy Cointreau fiscal-2018 - results data

Remy Cointreau fiscal-2018 - results data...

Cognac is back - is Remy Cointreau ready? - Analysis

Cognac is back - is Remy Cointreau ready? - Analysis...

Is Metaxa the next big thing for Remy Cointreau? - Analysis

Is Metaxa the next big thing for Remy Cointreau? - Analysis...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?