Remy Cointreau full-year profit lifted by China recovery

Remy Cointreau, the French spirits group said on Thursday that full-year profit for the 2016/2017 financial year, which ended on March 31, grew 22.3% to €135m, helped by strong cognac sales in Greater China.

The maker of Cointreau liqueur and Mount Gay rum said that growth was driven by the Americas and Asia-Pacific regions, particularly Greater China, which experienced “a marked increase in private consumption during the second-half of the year.”

The company, which has strategized on becoming the world’s top-end spirits maker, selling spirits priced above $50 a bottle or more benefited from the recovery in China.

Operating profit for the year ended March 31 rose 26.7% to €226.1m.

Revenue for the period which was reported separately in April climbed 4.2% to €1.09bn ($1.2bn), led by the House of Remy Martin, the group’s biggest revenue driver, accounting for over half of its sales and recording a 9.2% increase to €707.5m. The liqueurs and spirits segment contributed 0.9% growth to €276.3m in the period.

Based on its performance in the period under review, Remy Cointreau now expects an operating profit margin of 21.5%-22.5% by 2019-2020, up from earlier estimate of 18%-20%.

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