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BREAKING NEWS

BREAKING NEWS

China's thirst for cognac helps Remy's profits beat forecasts

China's thirst for cognac helps Remy's profits beat forecasts
FILE PHOTO: The logo of Cointreau, the orange-flavoured triple sec liqueur, is seen at the Carre Cointreau in the Cointreau distillery in Saint-Barthelemy-d'Anjou near Angers, France, February 8, 2019. REUTERS/Stephane Mahe -
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STEPHANE MAHE(Reuters)
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PARIS (Reuters) – Remy Cointreau handed investors a special dividend of one euros per share after its annual operating profits rose by a stronger-than-expected 14.2%, helped by cost controls and robust demand for its premium cognacs in China.

The maker of Remy Martin cognac and Cointreau liqueur said its strategy of selling higher-priced spirits to boost profit margins was delivering strong results, and the company said it had met its margin goals one year in advance.

Operating profits for the year ended March 31 rose to 263.6 million euros (£233 million).

This translated into a margin of 21.7% of sales at constant exchange rates and business structure, marking an organic gain of 1.3 percentage points from the previous year.

The results beat the consensus of analysts’ forecasts for profits of 260.2 million euros, and a prediction for organic profit growth of 13.4%.

(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)

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