© Reuters. FILE PHOTO: A bottle of Remy Martin XO cognac is on display at the head office of Remy Cointreau SA in Paris, France, January 21, 2019. REUTERS / Benoit Tessier
By Dominique Vidalon
PARIS (Reuters) -Rémy Cointreau raised its profit outlook for the year after announcing a 104.5% organic increase in its operating profit in the first half, stronger than expected, driven by strong demand for its premium cognac in China, the United States and Europe.
The maker of cognac Rémy Martin and liqueur Cointreau has declared that it now expects “very strong” organic growth in its current operating income for the 2021/22 financial year. He had previously indicated that he was aiming for “strong” organic growth.
The company also remained confident in its ability to outperform the exceptional spirits market and reiterated a forecast of strong organic growth in full year sales.
“This semester has been tremendous for Rémy Cointreau, reflecting our market share gains and the solid progress made on our strategic priorities. These results will strengthen our ability to become the world leader in exceptional spirits, ”said Managing Director Eric Vallat in a statement.
Due to the plans to increase marketing and communication expenses already announced to support its brands and given the high basis for comparison in the second half of the year, the organic growth in current operating income for a full year will only be driven by the growth observed in the first half, the group said.
The Group’s current operating income for the six-month period ended September 30 reached 212.9 million euros ($ 238.8 million), marking an organic increase of 104.5%.
That surpassed a consensus of 22 analysts compiled by the company which forecast a current operating profit of 168.1 million euros.
The operating income of the Rémy Martin cognac branch, which represents nearly 90% of the group’s income, amounted to 188.1 million euros in the first half, showing organic growth of 101.9%.
Rémy Cointreau, who suffered the full brunt of the COVID-19 crisis last year alongside other premium spirits manufacturers, had already reported an organic jump of 52% in sales in the first half of the year.
This reflected strong rebound demand in bars and restaurants as COVID-19 restrictions relaxed around the world amid well-resilient consumption by people drinking beverage at home.
Rémy Cointreau’s fiscal year begins in April and ends in March.
($ 1 = 0.8917 euros)
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