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Remy Cointreau H1 profit increases

DBR Staff Writer Published 25 November 2016

French alcoholic beverage firm Remy Cointreau has reported a 2.5% increase in its net sales to €513.4m for the first half of this year, compared to €500.7m for the same period in 2015.

Operating profits surged 15.9% to €123.9m in H1 2016 that ended on 30 September 2016, compared €107m in the year-ago period.

The company attributed its highest-end products for driving performance in H1.

It also said that the current operating profit in H1 2016 benefited from a positive foreign exchange effect during the period.

The company's cognac division Rémy Martin saw a 3% growth with sales revenue of €322.5m from the €313.1m figure reported in H1 2015.

Rémy Cointreau said that the cognac unit performed outstandingly in the Americas region besides having a renewed growth in Greater China.

The liqueurs and spirits division had a sales growth of 3.6% with revenue of €134.8m from the €130.1m figure registered in the same period last year.

The company said that the unit revived itself following a drag performance last year, particularly in the core European and US markets.

Overall, the group brands totaled revenue of €457.3m with a growth of 3.2% compared to a revenue of €443.1m generated in H1 2015.

However, revenue from its partner brands declined 2.8% from €57.6m in H1 2015 to €56m. Rémy Cointreau said that the sales decline was because of the distribution agreement for Piper Heidsieck and Charles Heidsieck champagnes in France, Belgium and Travel Retail coming to an end.

The French company revealed that otherwise sales of other partner brands sustained their momentum in the Europe, Middle East and Africa region.

Image: Sales revenue of Rémy Cointreau’s cognac division Remy Martin in H1 2016 grew by 3%. Photo: courtesy of E. RÉMY MARTIN & CO.