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Thirst for premium spirits boosts Rémy Cointreau

Published:  06 June, 2019

Rémy Cointreau has posted annual sales growth of 7.9% to €1,22bn driven by strong global sales of its key premium brands.

For the year ending 31 March 2019, operating profit rose to €263.6m from €236.8m the previous year. Net profit came in at €157.1m compared with €148.2m a year earlier.

The French premium spirits producer, the maker of Rémy Martin cognac and Cointreau liqueur, said its strategy of selling higher-priced spirits to boost profit margins was delivering strong results.

Rémy Martin cognac, which accounts for over 80% of the company’s profit, saw its operating profit rise 18% to €235.6m, driven by strong demand in the Asia Pacific region, notably China, and the US.

The business said it had reached its 2019-2020 goals one year in advance and laid out new medium-term objectives, which include generating between 60% and 65% of its turnover through exceptional spirits and the building of a sustainable, resilient and profitable business model.

On the back of the strong annual results, Rémy Cointreau proposed an unchanged dividend of €1.65 per share for its fiscal year 2019, and said its board of directors has also agreed on the proposal of an exceptional dividend of €1 per share for the same period.

The results beat the consensus analyst forecast of €260.2m euros in profit.

Last week, Rémy Cointreau announced it is to acquire the Maison de Cognac JR Brillet and part of its vineyard estate for an undisclosed sum.

The French business said it had entered into exclusive negotiations with the Brillet family in relation to the deal, which it said would provide Rémy Cointreau with the opportunity to "integrate spirits with genuine development potential into its portfolio”.

In addition, Rémy Cointreau said the deal would over time allow it to “increase the value of an inventory of eaux-de-vie and vineyards of the highest quality”.