Remy’s second quarter sales beat expectations, company reports ‘exceptional’ profit growth in first half

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By Dominique Vidalon

PARIS (Reuters) – Rémy Cointreau expected Friday an “exceptional” growth in its current operating income in the first half of its 2021/2022 fiscal year after its sales increase 23.7% stronger than expected in the second quarter, driven by strong demand for its premium cognac in the United States, China and Europe.

For the year as a whole, cognac maker Rémy Martin and liqueur Cointreau – which reiterated that it would significantly increase its marketing spending in the second half of the year – said it was aiming for strong growth in its current operating profit and its sales. He did not provide a specific figure for his guidance.

“For the 2021/22 financial year, Rémy Cointreau reiterates its confidence in its ability to outperform the exceptional spirits market and anticipates strong sales growth, driven mainly by the performance of the first half,” said the company in a statement.

Sales for the three months to September 30 were € 352.2 million ($ 409.4 million), up 23.7% on a like-for-like basis, beating analysts’ expectations for growth of 20.8%.

Cognac sales alone reached 265 million euros, up 26.9% like-for-like, reflecting in particular a very good performance in China during the Mid-Autumn Festival.

Rémy Cointreau’s fiscal year begins on April 1 and ends on March 31.

In July, the group had forecast an “excellent” first half after more than doubling its organic sales in the first three months as bars and restaurants reopen after closures in Europe and the United States.

He had disappointed analysts, however, with a full-year outlook for organic sales and earnings growth “in the mid-teens,” and all eyes will be on the comments CFO Luca Marotta will make at the event. a conference call at 07:00 GMT.

In the first half of the year, the group’s sales rose 52% like-for-like, including a 55.2% jump for cognac.

Biggest rival Pernod Ricard said on Thursday that strong sales growth could slow in fiscal 2022, after strong demand in China, the United States, India and Europe helped it display higher than expected sales in the first quarter.

($ 1 = 0.8602 euros)

(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta and Subhranshu Sahu)


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