PARIS (Reuters) -Remy Cointreau raised its full-year profit outlook after reporting a stronger-than-expected 104.5% organic jump in first-half operating profit, driven by strong demand for its premium cognac in China, the United States and Europe.
The maker of Remy Martin cognac and Cointreau liqueur said it is now expecting “very strong” organic growth in its current operating profit in the 2021/22 financial year. It had previously stated it was targeting “strong” organic growth.
The company also remained confident of its ability to outperform the exceptional spirits market and reiterated a forecast for strong organic growth in full-year sales.
“It has been an amazing semester for Remy Cointreau, reflecting our market share gains and the solid progress made on our strategic priorities. These results will reinforce our ability to become the worldwide leader in exceptional spirits,” Chief Executive Officer Eric Vallat said in a statement.
Because of already announced plans to step up marketing and communication spending to support its brands and given the high comparison basis of the second half, organic growth in full-year current operating profit will be solely driven by the growth seen in the first half, the group said.
Group current operating profit for the six months ended Sept. 30 reached 212.9 million euros ($238.8 million), marking an organic rise of 104.5%.
That outperformed a company-compiled consensus of 22 analysts that forecast a current operating profit of 168.1 million euros.
Operating profit at the Remy Martin cognac division, which makes nearly 90% of group profit, totalled 188.1 million euros in the first half, marking an organic rise of 101.9%.
Remy Cointreau, which last year bore the brunt of the COVID-19 crisis alongside other premium spirits makers, had already reported a 52% organic jump in first-half sales.
This reflected a strong demand in rebound in bars and restaurants as COVID-19 restrictions eased around the world amid well-resilient consumption from people having drinks at home.
Remy Cointreau fiscal year starts in April and ends in March.
($1 = 0.8917 euros)