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Remy Cointreau’s Profit Fell 2/3rds Due to Metaxa

The French beverage group Remy Cointreau today said its six month net profit fell two thirds.  This was due to a €45 million (£33.7 million) write down on its Greek brandy Metaxa.
Growth in markets such as Asia and the U.S. helped balance out woes in recession-hit Greece.  The firm managed to post overall growth in revenue and operating profitability.
Remy offered no update on the sale of its loss making champagne business, which includes the Charles Heidsieck and Piper-Heidsieck brands. The unit was put up for sale on November 15th so the group could focus on its fast growing cognac unit.
Group net profit for the first half fell to €14.1 million (£11.9 million). Without the Metaxa writedown, profits would have grown to €47.5 million.
Sales rose 18.3% to €482 million (£405.7 million), with growth in champagne and Scotch whisky brands distributed in the U.S. offsetting a decline in liquor and spirit sales.
Current operating profit rose 23.7% to €81 million (£68 million). Net debt fell to €485 million (£408 million) in the period from €501 million, at the end of March.

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