PARIS (Reuters) -Remy Cointreau beat estimates for full-year working revenue progress on Thursday because of rebounding demand for its premium cognac in the USA and China, and was upbeat about its prospects for the present fiscal yr and past.
The maker of Remy Martin cognac stated it had emerged stronger from the COVID-19 disaster because it accelerated traits similar to buoyant at-home consumption in the USA, a craze for cocktails and rising e-commerce gross sales – all of which supported its push in direction of higher-priced spirits to spice up margins.
Remy Cointreau, which plans to purchase again as much as 1.98% of its fairness capital, additionally handed traders an 85% enhance in its dividend, which helped carry its shares by 3%.
It forecast an “wonderful” begin to its 2021/22 monetary yr that began on April 1 and stated it had determined to extend its funding in communication to assist its manufacturers.
A rebound in demand for its premium cognac in China and the USA, together with tight management over prices, lifted Remy’s natural working revenue by 12.8% to 236.1 million euros ($288 million) within the yr ended March 31.
Analysts on common and Remy itself had anticipated 10% progress.
This marked a pointy turnaround from a 22% fall in group revenue a yr earlier as a result of impression of the pandemic.
The corporate stated it was assured it could obtain a gross margin of 72% and an working margin of 33% by 2030, up from 67.3% and 23.4% respectively in 2020/21.
Remy Cointreau reiterated its purpose was to turn into a “world chief in distinctive spirits” whereas additionally constructing a enterprise mannequin extra centered on sustainability.
Whereas Remy anticipated good progress in working revenue this yr, it stated that might be tempered by antagonistic forex results estimated at 16 to twenty million euros and a 2 million euro hit following asset gross sales.
(Reporting by Dominique Vidalon; Modifying by Sudip Kar-Gupta, Ramakrishnan M. and David Clarke)
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