Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Remy Cointreau beats forecasts on U.S., China sales

Stock MarketsJun 03, 2021 07:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A bottle of Cointreau, the orange-flavoured triple sec liqueur, is displayed at the Carre Cointreau in the Cointreau distillery in Saint-Barthelemy-d'Anjou, near Angers, France, February 8, 2019. REUTERS/Stephane Mahe

By Dominique Vidalon

PARIS (Reuters) -Remy Cointreau on Thursday beat annual profit expectations amid U.S. and Chinese demand for premium cognac but its shares fell after investment plans pointed to slower than expected growth ahead.

The French spirits group vowed to accelerate investments behind its brands, a move that would limit profitability and the shares reversed earlier gains to trade down 5%.

The maker of Remy Martin cognac said it had emerged stronger from the COVID-19 crisis due to buoyant at-home consumption in the United States, a penchant for cocktails and rising e-commerce sales - all of which supported its push towards higher-priced spirits to boost margins.

Remy Cointreau, which plans to buy back up to 1.98% of its equity capital, also handed investors an 85% increase in its dividend.

It forecast an "excellent" start to its 2021/22 financial year that started on April 1 and said it had decided to increase its investment in communication to support its brands, notably Remy Martin and Louis XIII cognacs.

"2021/22 will be a strong year of growth and investment and we are on track to achieve our 2030 vision," CEO Eric Vallat told a news conference.

Commenting on prospects for FY 2021/22, Finance Chief Luca Marotta spoke of "top line and bottom line growth in the mid-teens in organic terms", which lagged analysts expectations at least for operating profit growth.

The market consensus for 2021/22 stands at 15.6% for organic sales growth and at 22.1% for operating profit growth.

A rebound in demand for its premium cognac in China and the United States, along with tight control over costs, lifted Remy's organic operating profit by 12.8% to 236.1 million euros ($288 million) in the year ended March 31.

Analysts on average and Remy itself had expected 10% growth.

This marked a sharp turnaround from a 22% fall in group profit a year earlier due to the impact of the pandemic.

The company said it was confident it would achieve a gross margin of 72% and an operating margin of 33% by 2030, up from 67.3% and 23.4% respectively in 2020/21.

Remy Cointreau reiterated its goal was to become a "global leader in exceptional spirits" while also building a business model more focused on sustainability.

While Remy expected good growth in operating profit this year, it said that would be tempered by adverse currency effects estimated at 16 to 20 million euros and a 2 million euro hit following asset sales.

($1 = 0.8201 euros)

Remy Cointreau beats forecasts on U.S., China sales
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Tech Support
Tech Support Jun 03, 2021 4:04AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What is the stock ticker? Lazy article.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email