Remy Cointreau upbeat as annual revenue beats forecasts By Reuters
© Reuters. FILE PHOTO: A bottle of Cointreau, the orange-flavoured triple sec liqueur, is displayed on the Carre Cointreau within the Cointreau distillery in Saint-Barthelemy-d’Anjou, close to Angers, France, February 8, 2019. REUTERS/Stephane Mahe
By Dominique Vidalon
PARIS (Reuters) -Remy Cointreau beat estimates for full-year working revenue progress on Thursday because of rebounding demand for its premium cognac in america and China, and was upbeat about its prospects for the present fiscal 12 months and past.
The maker of Remy Martin cognac mentioned it had emerged stronger from the COVID-19 disaster because it accelerated traits corresponding to buoyant at-home consumption in america, a craze for cocktails and rising e-commerce gross sales – all of which supported its push in the direction of higher-priced spirits to spice up margins.
Remy Cointreau, which plans to purchase again as much as 1.98% of its fairness capital, additionally handed buyers an 85% enhance in its dividend, which helped elevate its shares by 3%.
It forecast an “glorious” begin to its 2021/22 monetary 12 months that began on April 1 and mentioned it had determined to extend its funding in communication to assist its manufacturers.
A rebound in demand for its premium cognac in China and america, together with tight management over prices, lifted Remy’s natural working revenue by 12.8% to 236.1 million euros ($288 million) within the 12 months ended March 31.
Analysts on common and Remy itself had anticipated 10% progress.
This marked a pointy turnaround from a 22% fall in group revenue a 12 months earlier as a result of influence of the pandemic.
The corporate mentioned it was assured it will obtain a gross margin of 72% and an working margin of 33% by 2030, up from 67.3% and 23.4% respectively in 2020/21.
Remy Cointreau reiterated its aim was to turn out to be a “international chief in distinctive spirits” whereas additionally constructing a enterprise mannequin extra targeted on sustainability.
Whereas Remy anticipated good progress in working revenue this 12 months, it mentioned that may be tempered by antagonistic foreign money results estimated at 16 to twenty million euros and a 2 million euro hit following asset gross sales.
($1 = 0.8201 euros)
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