Close Menu
News

Rémy Cointreau reports profit drop in H1

French firm Rémy Cointreau has reported its current operating profit for the first half of its fiscal year, which fell by 4.7% to €138.3 million (US$152.2m).

The House of Rémy Martin saw its sales increase 5.6% to €379.6m

In the six-month period between April and September 2019, Rémy Cointreau saw its sales dip 0.6% to €523.9m (US$585m). The House of Rémy Martin saw its sales increase 5.6% to €379.6m (US$423.9m).

The firm has now reported its current operating profit (COP), with ‘partner brands’ COP increasing by 5.5% to €147.9m (US$162.7m).

Rémy Cointreau said the “good growth” of COP from its ‘group brands’ was “offset” by a €3.3m (US$2.6m) drop in COP from its ‘partner brands’ and “usual volatility in holding costs” which were up by €4.3m (US$4.7m).

The end of major distribution contracts in the Czech Republic, Slovakia and the US is estimated to have an impact of €56m (US$62m) on sales and €5m (US$5.5m) on current operating profits for 2019/20.

Looking ahead to fiscal year 2019/20, Rémy Cointreau predicts “slight organic growth” in current operating profit for its group brands and “stable” COP for the firm.

The company has also reiterated its aim to generate 60-65% of its turnover from spirits sold at US$50 a bottle or more.

Rémy Cointreau also expects current operating margin to “continue to benefit from its value strategy, including significant investments behind its brands and its distribution network”.

The results have been released ahead of Eric Vallat’s return to Rémy Cointreau, which was announced in September 2019. Vallat will step into the CEO role on 1 December for a three-year period.

It looks like you're in Asia, would you like to be redirected to the Drinks Business Asia edition?

Yes, take me to the Asia edition No