PARIS, June 3 (Reuters) - French spirits group Remy Cointreau reported higher-than-expected operating profit growth for its 2020/21 fiscal year and was upbeat over prospects for this year and beyond.
The maker of Remy Martin cognac, which plans to buy back up to 1.98% of its equity capital, said it had emerged stronger from the COVID-19 crisis and anticipated an “excellent” start to its 2021/22 financial year that started on April 1.
A rebound in demand for its premium cognac in China and the United States, along with tight control over costs, lifted organic operating profit by 12.8% in the year ended March 31, beating analysts’ expectations and Remy’s own guidance for 10% growth.
This marked a sharp recovery from a 22% fall in group profit in the full year of 2019/20, due to the impact of the COVID pandemic that had started in China.
Remy Cointreau reiterated its goal to become a “global leader in exceptional spirits” while also building a business model more focused on sustainability.
The group was confident it would achieve a gross margin of 72% and an operating margin of 33% by 2030.
This would compare with a gross margin of 67.3% and an operating margin of 23.4% achieved in 2020/21. (Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)