Rémy Cointreau, the French spirits group, announced record annual results on Thursday, broadly in line with expectations for the past financial year. With a bright outlook, Remy Cointreau also confirmed its forecasts for the fiscal year ending March 2024.
Spirits group Rémy Cointreau announced its results for the past financial year on Thursday, declaring that they had exceeded expectations.
Rémy Cointreau announced a 38.8% increase in net profit to 293.8 million euros for the fiscal year ending March 31, 2023.
Profit from recurring operations (ROC) also grew by 28.5%, and by 16.2% on an organic basis, to 429.6 million euros. This performance translated into an operating margin before non-recurring items of 27.7%, compared with 25% the previous year. In the Group’s main branch, cognac, ROC rose by 14.7% on an organic basis to 405.2 million euros, with a margin of 36.8%, compared with 34.1% the previous year.
Rémy Cointreau had already announced its sales for fiscal 2022-2023, up 10.1% to 1.55 billion euros. At that time, the cognac maker confirmed its expectation of “significant organic growth” in profit from recurring operations for 2022-2023. According to analysts surveyed by FactSet, the average forecast for this ROC was €426 million for this fiscal year.
“Rémy Cointreau has had a record year, and is consolidating its lead on its 2030 strategic plan. In three years, Rémy Cointreau has changed dimension and category, with sales rising from 1 billion to 1.55 billion euros over the period, and an operating margin before non-recurring items up 5 points”, said Éric Vallat, the Group’s CEO.
First quarter down
The wine and spirits group has issued a warning that its sales are expected to fall by 30% to 40% in the first quarter of the current financial year. This decline is mainly attributed to a sharp drop in business in the United States. However, the Group expects a gradual recovery from the second half of the year onwards.
Featured photo : © Rémy Cointreau