PARIS (Reuters) – Remy Cointreau said it would deliver “exceptional” current operating growth in the first half of its 2021/2022 fiscal year after its sales rose by a stronger-than-expected 23.7% in the second quarter, boosted by strong demand for its premium cognac in the United States, China and Europe.
For the full year, Remy Cointreau – which reiterated it would substantially increase marketing spending during the second half to support its brands – said it was targeting strong growth in current operating profit and sales. It did not provide a specific figure for its guidance.
“For the financial year of 2021/22, Remy Cointreau reiterates its confidence in its ability to outperform the exceptional spirits market and anticipates strong growth in sales, mainly driven by the performance in the first-half,” said the company.
“Current operating profit will mostly benefit from the expected exceptional growth of the first-half,” it added.
Sales for the three months to September 30 came in at 352.2 million euros ($409.4 million), marking a like-for-like rise of 23.7%, which beat analysts’ expectations for 20.8% growth.
Cognac sales alone reached 265 million euros, a like-for-like rise of 26.9%, which notably reflected a very strong performance in China during the Mid-Autumn Festival.
Remy Cointreau’s fiscal year starts on April 1 and ends on March 31.
($1 = 0.8602 euros)
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)
