(BFM Bourse) – Buoyed by a “record” year according to its managing director Eric Viallat, with a sharp increase in annual profit and a current operating margin at an all-time high, Rémy Cointreau approaches the year 2022-2023 with “confidence” . The group is taking advantage of this excellent publication to reaffirm its objectives for 2030.
In January, Remy Cointreau warned that we should no longer hope for a strong improvement in current operating profit over the second half of the year. And for good reason, the health situation in China did not encourage the owner of Rémy Martin cognac and Mount Gay rum to advance on sparkling projections. Finally, the spirits group managed to thwart its own anticipations by reporting results at a “record” level for its staggered 2021-2022 financial year. Around 4:30 p.m., the price rose by 4.74% to 178.90 euros, but still shows a decline of nearly 17% since January 1.
The surprise comes from the rise of “The Botanist”, its top-of-the-range gin brand, and Remy Cointreau’s ability to increase its prices without seeing its customers turn away from its products. Thus, the French spirits group saw its net profit jump 47% to 215.5 million euros for a current operating margin at the “historic level” of 25.5% of sales, up 2.3 points.
Already known to the market, turnover exceeds one billion euros, at 1.2 billion euros, up 30.3% compared to the 2020-2021 financial year ended at the end of March. Remy Cointreau’s positioning in a higher range paid off. The Liqueurs and Spirits division posted sales up 31.7% thanks to the dynamism of Cointreau and the rise of its gin brand “The Botanist.” The Cognac division, for its part, recorded growth of 26.3%, notably driven by price increases.
The group approaches 2022-2023 with “confidence”
For the first quarter of its staggered 2022-2023 financial year, the spirits group expects a strong start to its activity over the period “despite a very high comparison base and a context marked by the pandemic in China.” “Benefiting from excellent pricing power, the improvement in the current operating margin will be driven by the solid resilience of its gross margin despite an inflationary environment and by strict control of its structural costs”, indicates the company in his statement.
“Perfectly positioned to take advantage of new consumer trends and bolstered by its lead over its strategic plan, Rémy Cointreau is approaching 2022-2023 with confidence”, adds the group. It forecasts a favorable currency effect on its current operating income of between 30 and 40 million euros.
Rémy Cointreau reaffirms its financial objectives for 2030, i.e. a gross margin of 72% and a current operating margin of 33%, based on the rates and scope of the year 2019-2020.
Sabrina Sadgui
©2022 BFM Bourse
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