Remy's earnings jump

June 11, 2001
Web posted at: 0811 GMT

LONDON (CNN) -- French drinks company Remy-Cointreau said full-year earnings before one-time items grew 71 percent, boosted by cognac sales in the U.S.

The world's No. 5 drinks company said profits before exceptionals rose to 94 million ($81 million) in the year to March 31 from 55 million in the previous fiscal year, above its own forecasts.

The company said sales jumped 26 percent to 926 million from 732 million, helped by its acquisition in August last year of the leading drinks group in the Netherlands, Bols Royal Distilleries.

The acquisition gave Remy-Cointreau new brands such as Greece's Metaxa brandy and the Dutch liqueur, Blue Curacao. But its larger rivals Diageo (DEO) and Pernod-Ricard (PRI) also extended their brand lines when they agreed to buy and share out the drinks business of Seagram.

Remy-Cointreau said it expects earnings to advance in the year ahead as it continues its strategy of acquisition and partnerships.

"In continuing the performance of 2000-2001 and the strategy, the Remy-Cointreau group comfortably expects earnings growth of 20 percent for 2001-2002," the company said.

Remy-Cointreau said operating profit increased 40 percent to 184.3 million from 132 million the previous year. Earnings per share jumped 46 percent to 2.04 from 1.40.

The company said profit growth was helped by a 22 percent rise in cognac sales, particularly in the U.S. where turnover was boosted by increased marketing spend.

Sales of cognac helped offset a fall in champagne sales, which had benefited last year from the Millennium celebrations.

Sales in Remy-Cointreau's champagne and wine division, of which champagnes such as Piper-Heidsieck constitute 85 percent of turnover, fell 28 percent in fiscal 2001, the company said.

Remy-Cointreau (PRCO) shares rose 2.6 percent to 38 in Paris trading.

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