Rémy Cointreau said it was looking to the 2022/2023 full year with confidence after its sales rose by a stronger-than-expected 16.2% in the second quarter, boosted by a recovery in demand for its premium cognac in China.
The drinks giant reiterated it expected another year of strong organic sales growth and of operating margin improvement helped by strict costs control to mitigate inflationary pressures.
The pandemic has helped Rémy Cointreau's long-term drive towards higher-priced spirits to boost profit margins, speeding a shift towards premium drinks, at-home consumption, cocktails and e-commerce.
Looking Ahead With Confidence
'Ideally positioned to take advantage of new consumption trends and buoyed by its advance on roll-out of its strategic plan, Rémy Cointreau is looking to 2022/23 with confidence,' the company said in a statement.
It noted the first half would outpace the second half as consumption trends will normalise in the latter half after two outstanding years while marketing and communication spending will be more sustained in the second half.
Quarterly Sales Performance
Sales for the three months to September 30 came in at €457.2 million, marking a like-for-like rise of 16.2% which beat analysts' expectations for 14.3% growth.
Cognac sales rose 15.6% to €345.9 million reflecting a very strong performance in China during the Mid-Autumn Festival.
Rémy Cointreau's fiscal year starts on April 1 and ends on March 31.
For the full year Rémy forecast a positive currency effect with reported sales now seen at €110-120 million compared with €90-100 million previously, and current operating profit at €55-60 million compared with €50-60 million.
News by Reuters, edited by ESM. For more drinks news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.
