Jul 30, 2008
Remy Cointreau announced that the slowdown in U.S. economic activity and rising euro would weigh on its 2008-2009
Remy Cointreau announced that the slowdown in U.S. economic activity and rising euro would weigh on its 2008-2009 biennium but he focused on a recovery in 2009-2010.The manufacturer of Remy Martin cognac and Cointreau liqueur warned that n'anticipait no organic growth of its net operating profit for the current year, ending March 31, 2009, with a consequent fall of his share price on Euronext Paris.
During a conference call on No. 2 french wines and spirits after Pernod Ricard has even talked about a possible "slight decline" in this operating income while betting on a rebound for the next year.
For the first quarter of fiscal 2008-2009, he published Wednesday a decrease of 5.6% of its sales to 149.9 million euros, at the same time it announced a net profit, group share , 98.4 million euros for the 2007-2008 fiscal year, ended March 31. This compares to an exceptional loss of 23 million a year earlier.
Jean-Marie Laborde, the director general, said Remy Cointreau was not prudent in its projections used the scenario of a restart of the U.S. economy at the end of the year like many experts.
"We have a more conservative assumption, because Remy Cointreau is in a transition year and it is more important for us to transfer our brands in our future distribution networks country by country in better shape," he said.
THE WEIGHT OF MAXXIUM
The company, which owns 25% of the distribution network Maxxium, due out in 2009 this joint venture whose operation will also be affected by the announced departure within two years of the Swedish group Vin & Sprit after its takeover by Pernod Ricard.
Remy Cointreau has set aside in its accounts as at 31 March 2007 a sum of 241 million euros under the grant exit network, which he valued its share to 76.4 million.
Jean-Marie Laborde said Remy Cointreau had spent a total of 15 to 16 million euros, representing an additional 7 to 8 million to prepare its new distribution network. He also stressed that the group intended to maintain a high level its public expenditure promotions.
"We prefer to use this biennium 2008-2009 to strengthen our fundamentals and have a real ambition to increase our prices to further improve our 'mix'. As a result, we will have no organic growth in operating income at the end Exercise, perhaps even this could be a slight decline, "he said.
"This does not hinder us more than that because what we expect, the rebound next year and we rely heavily on (the rebound) with a new network that will book a very good surprises", at he added.
The Paris Bourse has reacted poorly to the prospects for 2008-2009 drawn, action-Remy Cointreau falling by 6.55% to 31.66 euros to 13h10 in a market up: +1.28% for the SBF120 + 0.63% for the DJ Stoxx index of e-food drinks in Europe.
Natixis said it was considering revising "significantly down" its forecasts 2008-09, while Fortis has confirmed a lowering its recommendation on value.
Meanwhile, CM-CIC Securities notes that the announced results confirm "the lack of visibility on the group in an environment more uncertain and a strategic shift that has yet to prove its relevance."
by erectusplus at 8:55 AM |
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