Asian Boom Propels Rémy’s First-Half ProfitsNovember 29, 2011
Rémy Cointreau has reported a 235% increase in profit, from €14.1 million ($22m) to €47.3 million ($63.3m), for its first half ended September 30. Excluding non-recurring items, net profit totaled €61.5 million ($96m), up from €50.6 million ($79m) in the same period last year. Current operating profit, meanwhile, rose 27.3% to €106.2 million ($165.8m), as net sales grew nearly 11% to €474.9 million ($741.6m).
The group’s Rémy Martin Cognac led the growth, posting a 27.6% increase in operating profit to €91.2 million ($142.4m). The Cognac brand benefited primarily from “a thriving Asian economy”—particularly in China—but also demonstrated strong performances in France, Germany and Russia, and said demand for superior qualities in the U.S. was on the rise. Rémy’s liqueurs and spirits division grew 14.8% to €24.1 million ($37.6m), boosted in part by Cointreau, Mount Gay Rum and the continued recovery of Greek brandy Metaxa.
Rémy’s U.S. distribution of partner brands like Edrington’s The Macallan Scotch and Champagnes Piper-Heidsieck and Charles Heidsieck bolstered U.S. growth, the group said, adding that the positive first half results were likely to translate into “a substantial increase in earnings” for the year ending March 2012.
Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.