Remy Cointreau tops estimates with FY growth | Progresiv

Remy Cointreau has reported better-than-expected profit growth for its fiscal full year, helped primarily by a return to spending in the key China market.

For the year to 31 March 2017, operating profit was up 13.8% on an organic basis to 226.1 million euros, while underlying net profit rose by 10.5% on the same basis to 135 million euros.  Overall sales, meanwhile, grew by 4.7% to 1.09 billion euros.

The spirits group said it was helped by lower costs and increased demand in the US and China.  Sales of its Rémy Martin cognac jumped up 19.9% on an organic basis, while sales of Liqueurs & Spirits were up 9.7%.

Remy Cointreau added that it was seeing better-than-expected sales of its premium brands, prompting it to raise its medium-term profit forecasts. The group now expects an operating profit margin of 21.5%-22.5% by 2019-2020, up from its previous forecast of 18.0%-20.0%. (www.kamcity.com)