Dip in earnings at Remy Cointreau

Rising sales of high-end Cognac in China boosted operating profits at Rémy Cointreau but failed to prevent the company reporting a fall in half-year earnings.

Net profits for the six months to the end of September fell to €39.4 million against €48.3m in the same period of last year, the Cognac and Champagne group reported today.

The company reported a 2% rise in like-for-like current operating profits for the six months.

Last month, Rémy said net sales for the period fell by around 1%, as higher premium Cognac sales in Asia helped to offset a 42% sales slide within the group’s smaller Champagne business.

Rémy said its decision earlier this year to leave the Maxxium Worldwide distribution venture has paid off.

A statement said: “Positive results are already being felt from the group’s new distribution model.

“The company was able to take advantage of this new asset in order to resist the difficult economic environment.”

The company predicted "slight growth" in like-for-like current operating profits for its full-year.

Alan Lodge, 25.11.2009