Remy Cointreau Forecasts Higher Profit As Cognac Sales Rebound
Remy Cointreau SA forecast higher profit after earnings rose at the fastest pace in three years as a slump in cognac ended.
Full-year operating profit rose 6.1 percent on an organic basis to 178 million euros ($203 million) in the 12 months through March, the Paris-based distiller said in a statement Wednesday. That matched the analyst consensus.
The company said it expects higher profit this year from its continuing businesses, assuming constant exchange rates, and it’s “confident in its acceleration strategy of moving upmarket.”
Remy Cointreau is focusing on high-end spirits priced at $50 or more per bottle. The company is also raising prices in China, riding the cognac recovery in that market. Hennessy owner LVMH has also signaled a gradual return to growth after two years of falling demand in China, while rival Pernod Ricard said it expects to see some margin erosion in the country this year.
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