Good News for Cognac

Although more Scotch is sold in France in a month than cognac in a year, it doesn’t mean the French spirit is in decline. In Rémy Cointreau’s recently released “consolidated preliminary results for the year ended 31 March 2012,”

Rémy Cointreau’s turnover for the year ended 31 March 2012 increased by 13 percent to €1,026.1 million. Current operating profit rose by 24.4 percent to €207.7 million, an outstanding performance as it was achieved on the back of the previous year, which had already shown strong growth. The current operating margin, which included a further increase in marketing investment, was 20.2 percent.

This performance reflects the Group’s buoyant business activities worldwide. All regions reported growth, with double-digit growth in Asia-Pacific and the US. Europe was driven by Western Europe and Russia.

Net profit, excluding non-recurring items, was €123.9 million, an increase of 15.3 percent compared with the previous year.

The Wall Street Journal does note, however, the company last year took a 45 million euro loss “related to the depreciation of Metaxa, a brand sold mainly in debt-laden Greece.” What about Ouzo, or as one Greek-American called it, “Sperm of Zeus”? And if Italy goes down, will that lead to a decline in sales of Galliano?

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