Remy’s Full-Year Profits Slide On Metaxa, As Sales Rise 12 PercentJune 9, 2011
Rémy Cointreau reported an 18% drop in net profit—from €86.3 million ($126.1m) to €70.5 million ($103m)—and a 14% decline in operating profit to €120.5 million ($175.1m), for the full year ended March 31, 2011. Net sales, however, rose 12.4% to €907.8 million ($1.32b), boosted in part by Rémy Martin Cognac’s strong performance, particularly in Asia, travel retail and Russia. The profit declines were primarily attributed to an impairment charge on the group’s Metaxa brand, which continues to suffer “difficult market conditions” in Greece.
Cognac sales for the year grew 12.1% to €486 million ($710.3m), and operating profit was up 20.3% to €140.5 million ($205.3m), helping to offset decreased profits from Rémy’s liqueurs and spirits portfolio. Last month, Rémy auctioned off its Champagne division to the family owned French firm EPI for €412 million ($602.1m)—a move that the group says will “fund accelerated growth in major current markets” and “markets with strong potential for future growth.” Meanwhile, as part of its long-term strategy, Rémy stated that the group would look closely at other growth opportunities.
|Remy Cointreau SA – Leading Brands Worldwide
(millions of nine-liter cases)
|Total Top Three||4.28||4.32||4.32||4.03||-6.7%|
|*based on unrounded data
Source: IMPACT DATABANK