Rémy Cointreau ended the fiscal year thanks to slightly higher than expected sales, thanks to a strong second half of the year. The French spirits group is now expecting a 10 per cent increase in operating profit.
Growth in China and the USA
In the fiscal year 2020-2021, the company achieved sales of 1.01 billion euros, an increase of 1.8 per cent on an organic basis. The recovery commencing in the third quarter continued into the fourth quarter with organic sales growth of 15.1 per cent. Cognac sales rose 18.2 per cent over the past three months to 162.5 million euro, boosted by the Chinese New Year and continued strong demand from the United States. Total revenues in the closing quarter amounted to 229.4 million euro.
Following the strong recovery in the second half of the year, Rémy Cointreau now expects a 10 per cent growth in operating profit (on an organic basis). Until today, analysts had forecast an increase of 7.6 per cent, writes Zonebourse. It would also represent a significant rebound after the 22 per cent drop in profits in the 2019/2020 financial year.
The maker of Rémy Martin cognac and Cointreau also expects a solid start to its 2021/2022 financial year. The group points, for example, to the favourable basis of comparison in the second quarter and greater consumer confidence in the United States.