Drinks group Remy Cointreau raises guidance after H1 profit beat
PARIS (Reuters) – Remy Cointreau raised its full year profit outlook after reporting a stronger-than-expected 104.5% organic jump in first-half operating profit, driven by strong demand for its premium cognac in China, the United States and Europe.
Regarding its 2021/22 financial full year, the maker of Remy Martin cognac and Cointreau liqueur said it now expected “very strong” organic growth in its current operating profit. It had previously stated it was targeting strong organic growth.
The company also remained confident of its ability to outperform the exceptional spirits market and reiterated a forecast for strong organic growth in full year sales, mainly driven by the performance in the first half.
Group current operating profit for the six months to Sept. 30 reached 212.9 million euros ($238.8 million), marking an organic rise of 104.5%.
That outperformed a company-compiled consensus of 22 analysts that forecast current operating profit of 168.1 million euros.
Operating profit at the Remy Martin cognac division, which makes nearly 90% of group profit, totalled 188.1 million euros in the first half, marking an organic rise of 101.9%.
Remy Cointreau, which last year bore the brunt of the COVID-19 crisis alongside other premium spirits makers, had already reported a 52% organic jump in first-half sales.
This reflected a strong demand in rebound in bars and restaurants as COVID-19 restrictions eased around the world, and as well resilient consumption from people having drinks at home.
($1 = 0.8917 euros)
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)