© Reuters. FILE PHOTO: A bottle of Remy Martin XO cognac is on display at the headquarters of Remy Cointreau SA in Paris (France) on January 21, 2019. REUTERS / Benoit Tessier
By Dominique Vidalon
PARIS (Reuters) – Remy Cointreau reported year-on-year earnings growth in the first half of earnings after reporting a stronger-than-expected organic jump of 104.5%, driven by high demand for its premium cognac in China, the US and Europe.
Cognac remy Martin and liquor maker Cointreau said it now expects “very strong” organic growth in 2021/22 in its current operating profits. He had previously stated that he aimed for “strong” organic growth.
The company was also confident of its ability to outperform the market in the spirit of the spirit and reiterated its forecast for strong organic sales growth throughout the year.
“It has been an amazing semester for Remy Cointreau, reflecting our market share gains and strong advances in our strategic priorities. These results will strengthen us in a spirit of extraordinary leadership around the world,” said CEO Eric Vallat. statement.
Given its already promising increase in marketing and communications spending and given its high benchmark in the second half, the current organic growth in full-year operating earnings will only be driven by growth seen in the first half. said the group.
The group’s six-month operating profit, which ended on September 30, amounted to 212.9 million euros ($ 238.8 million), an organic increase of 104.5%.
This exceeded the consensus of 22 analysts who forecast a current operating profit of 168.1 million euros.
The operating profit of the Remy Martin cognac division, which accounts for almost 90% of the group’s profits, was 188.1 million euros in the first half, an organic increase of 101.9%.
Remy Cointreau, along with other premium-producing spirits affected by the COVID-19 crisis last year, has already reported an organic jump of 52% in sales in the first half.
This reflected the high demand for the rebound in bars and restaurants, as COVID-19 restrictions were eased worldwide as a result of the resistant consumption of people taking drinks at home.
The Remy Cointreau fiscal year begins in April and ends in March.
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