(Reuters) – Remy Cointreau on Thursday reported a stronger-than-expected rise in full-year operating profit, which rose 16.2% organically, but the group stuck to its cautious outlook for 2023.
The cognac producer reiterated its forecast of stable organic sales for the 2023-2024 financial year, with stable profitability, to reflect weaker American demand and high comparables.
On the Paris Stock Exchange, Rémy Cointreau shares rose 1.9% at 07:07 GMT to 143.75 euros.
“In a context marked by the normalization of consumption in the United States, amplified by a high comparison base in the first half and our desire to destock, we anticipate stable sales and organic profitability for 2023-24. “said Managing Director Éric Vallat in a press release.
Rémy Cointreau expects the group’s turnover to fall sharply in the first half of the year due to a “very sharp” drop in sales in the United States. The group then expects a rebound in this market in the second half, combined with a sharp rise in China and the rest of the world. During the fiscal year ended March 31, 2023, strong demand in China and the United States, as well as cost control, drove operating profit up 16.2% organically, reaching the record figure of 429.6 million euros. This result is higher than expected, analysts having forecast a rise of 14.4% according to a consensus established by the company. The group’s sales already published amounted to 1.55 billion euros, marking an organic increase of 10.1%.
(Report by Dominique Vidalon, Augustin Turpin, edited by Tangi Salaün and Kate Entringer)
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