Rémy Cointreau forecast on Friday an "exceptional" current operating profit 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, the maker of Rémy Martin cognac and Cointreau liquor - which reiterated it would substantially increase marketing spending during the second half - 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, Rémy 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," the company said in a statement.
Like-For-Like Increase
Sales for the three months to 30 September came in at €352.2 million ($409.4 million), marking a like-for-like rise of 23.7%, which beat analysts' expectations for a 20.8% growth.
Cognac sales alone reached €265 million, a like-for-like rise of 26.9%, which notably reflected a very strong performance in China during the Mid-Autumn Festival.
Rémy Cointreau's fiscal year starts on 1 April and ends on 31 March.
"Excellent" First Half
In July, the group had forecast an "excellent" first half after it more than doubled its organic sales in the first three months as bars and restaurants reopened from lockdowns in Europe and the United States.
It had, however, disappointed analysts with a full-year outlook of "mid-teens" organic sales and profit growth, and all eyes will be on comments finance chief Luca Marotta will make at a 0700 GMT conference call.
In the first half of the year, group sales grew 52% like for like, including a 55.2% jump for cognac.
Larger rival Pernod Ricard said on Thursday solid sales growth could moderate in the 2022 fiscal year, after strong demand in China, the United States, India and Europe helped it post above-forecast sales in its first quarter.
News by Reuters edited by Donna Ahern, Checkout. For more Drinks stories click here. Click subscribe to sign up for the Checkout print edition.
