Remy Cointreau reports 229.4m euros quarterly sales, gives 10pc annual profit growth guidanceBusiness | 23 Apr 2021 2:35 pm
Remy Cointreau said it expected organic growth of about 10 percent in operating profit in the 2020/21 fiscal year, after strong demand in the United States and China for its premium cognac lifted fourth quarter sales by 15.1 percent, Reuters reports.
The maker of Remy Martin cognac and Cointreau liqueur also predicted a strong start to 2021/22, citing a favorable comparison, shipment phasing benefits and more buoyant consumer trends in the United States.
"In a still uncertain public health, economic and geopolitical environment, Remy Cointreau remains confident of its ability to emerge stronger from the coronavirus disease crisis," the group said in a statement.
The 10 percent profit growth guidance – which would mark a rebound from a 22 percent fall in group profit in the full year 2019/20 – exceeds current analysts'expectations of a 7.6 percent profit rise.
It also echoes an upbeat profit forecast by larger rival Pernod Ricard on Thursday.
Sales for the three months to March 31 were 229.4 million euros (US$275.9 million), marking a like-for-like rise of 15.1 percent, which compared with analysts' expectations for 15.9 percent.
Cognac sales alone stood at 162.5 million euros - a like-for-like rise of 18.2 percent, which notably reflected an "excellent" performance during the Chinese New Year celebrations.
Cognac demand in the United States remained strong, boosted by at-home consumption, albeit somewhat moderated by the group's previously announced decision to manage its strategic inventories.
Foreign exchange and the effects of acquisitions and divestments would impact operating profit in full-year 2020/21 by 5 million euros and 2 million euros respectively, Remy Cointreau said.
Remy Cointreau's fiscal year starts on April 1 and ends on March 31.