Remy Cointreau Misses 05/06 Forecasts, Raises Div
French wines and spirits group Remy Cointreau reported a 56.2 percent rise in full year net profit on Monday but missed analysts' forecasts as restructuring and tax charges weighed on earnings.
12/06/06 The maker of Cointreau liqueur and Piper Heidsieck champagne proposed raising its dividend to 1.10 euro from 1.00 euro and forecast another year of double-digit growth in operating profit.
Net profit in the year to March 31 rose to 77.8 million euros ($98.49 million) from 49.8 million euros a year ago, restated to take account of brands which have been, or are in the process of being sold, Remy said in a statement.
Operating profit rose 11.3 percent, or 14.9 percent in like-for-like terms, to 141.8 million euros, helped by a 20 percent rise in earnings in its core Remy Martin cognac business.
However, the results fell short of the consensus among analysts surveyed by Reuters Estimates for a net profit of 86.0 million euros and operating profit of 163 million euros.
Laeticia Delaye, an analyst at Kepler Equities in Paris, said the results reflected the negative aspects of recent disposals, masking positive news.
"What's important is the organic growth in operating profit in 2005-06 and the forecast of another double-digit rise for the current exercise," she said.
Profit from continued operations fell to 55.3 million euros from 64.9 million euros a year ago due to a restructuring provision and charge linked to a tax audit.
Profit from discontinued operations rose to 18.6 million euros from a loss of 9.6 million euros.
The company was due to comment further at a news conference at 0700 GMT. Remy Cointreau shares closed at 41.15 euros on Friday.
