Remy Cointreau Operating Profits Beat Estimates

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Nov. 26 (Bloomberg) –- Bloomberg’s Caroline Hyde reports Remy Cointreau earnings which has been hurt by a slowdown in China. She speaks to Anna Edwards and Mark Barton on Bloomberg Television’s “Countdown.” (Source: Bloomberg)

Remy cointreau, caroline hyde is here with the numbers.

Overall, as expected, profit is down.

Operating profit come in at 132 .7 million euros.

That is slightly ahead of our estimate.

It has beaten, but nevertheless, this is a slowdown of the sum 7% , if you are looking at organic operating profit, not taking into account m&a or currency charges.

They warned us of this back in october.

China is where the slowdown is.

It is one of the most popular cognac brands in the world.

Sales slumped 10% for that particular brand because of the crackdown on extravagant gifting and feasting in china.

China is one of their key markets.

They say the business environment is going to be less favorable in the second half as well.

Not much optimism for the next part of the year.

Do you think they are talking about china?

Is that about china or are there headwinds?

They keep saying the temporary slowdown has detracted but they said it did not constrain their strategic investment in the area.

Growth noted in the americas and europe.

It does seem to all the about china continuing to be an area of concern.

Certainly, it's direct rival, ricard, has said they have no idea at what point they will see any recovery in china going forward.

Rarely, there is going to continue to be headwinds coming from china overall.

We will have to look to see what exactly the issues are.

A substantial double-digit fall in full-year operating profit.

This is a company that will be affected by foreign currency as well.

We know that foreign currency weakness in the asian areas have been negative on many companies exporting to asia.

Less favorable in the second half.

Looks like the first half saw a slowdown.

We have heard about the euro and how that has been damaging certain businesses over the last number of quarters.

Number putting out a note -- nomura saying a strong euro will weigh on growth in the eurozone.

Interesting to see how that macro view is lining up with some of the company reports.

They say it is an uncertain economic environment in europe, which appears to be a concern, but still a sharp slowdown in china.

Some m&a muse -- news.

This text has been automatically generated. It may not be 100% accurate.


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