(AOF) – Rémy Cointreau (+4.12% to 151.55 euros) is well established among the strongest increases in the SBF 120 index after reassuring on its annual outlook. TP Icap Midcap points out that the depletions make it possible to consolidate the annual guidance. The “value depletion” represents “the best approximation of final consumption at group level, explained the group’s financial director at the end of April, according to Investir.
In its presentation, the French group clarified that for the Americas, the “value depletion” recorded a low single-digit decline over one year (stable excluding VSOP) and saw a sequential improvement throughout the quarter with a positive month of June again.
This improvement in the trend in final consumption in the United States strengthens investor confidence in the group’s annual outlook.
The wine and spirits group thus confirmed that it anticipates a strong recovery in growth in the second half in the wake of a sharp rebound in activity in the United States from the third quarter.
This recovery should come after a marked decline in sales in the first half, impacted by a very sharp drop in sales in the United States and high bases of comparison.
Penalized by the latter, its desire to sharply reduce the level of its Cognac stocks in the United States and a continued normalization of consumption in the United States, Rémy Cointreau experienced a sharp drop in its activity in the first quarter, ending at the end of June.
Its turnover amounted to 257.5 million euros, down 35% on an organic basis on a like-for-like basis. This sharp decline had been well marked: the consensus stood at -35.6%. Revenues from the Cognac division – 71% of revenues last year – fell 44.7% organically to 155.1 million euros, “mainly affected by a significant drop in sales in the Americas region”.
At the same time, the group anticipates strong growth in the rest of the world for the year, supported by significant growth in China, a very good performance in the EMEA region and the Rest of Asia, as well as a level of activity similar to that of 2019-20 for Travel Retail.
In this context, the group still anticipates stable organic revenue for the 2023-24 financial year and it intends to confirm its level of organic profitability this year.
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