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Vranken-Pommery improves price mix
Vranken-Pommery has reported an increase in recurring operating profit of 41.2% in the six months to 30 June 2007.
Recurring operating profit amounted to Euro 6.8 million or 7.8% of revenue versus Euro 4.8m and 5.5% in the first half of 2006. According to the group, this increase is due to an improvement in the price mix and cost management.
Paul-François Vranken, chairman and CEO explained: “During the first half of 2007, Vranken-Pommery Monopole began to reap the benefits of the strategic positioning deployed in recent years, which is designed to improve the product mix.”
The group said it has been systematically promoting its international brand contracts, sometimes to the detriment of national brands. This product mix improvement strategy led to a 4.1% increase in unit sales of the four international brands: Vranken, Pommery, Charles Lafitte and Heidsieck & Co Monopole and a “significant” decline in national brand volumes. The more favourable price mix also drove 55% of growth for the period.
First half revenue, however, remained static at Euro 87.4 million.
© Fionnuala Synnott, db 12/09/07