Remy Q2 sales beat forecasts, firm flags 'exceptional' H1 profit growth

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PARIS (Reuters) – Remy 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 Remy 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, 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,” the company said in a statement.

Sales for the three months to Sept. 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 a 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.

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 (PA:PERP) 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.

($1 = 0.8602 euros)

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