Remy Cointreau advances thanks to Chinese thirst
Remy Cointreau’s shares jumped by 4% last week after reporting full year sales and profit that beat analysts expectations. The French drinks maker has Chinese tastes to thank for a big part of its success, and said that momentum in China indicated more growth in 2017.
Remy’s share price has risen by 25% so far this year
SOURCE: Yahoo Finance
Remy posted sales of €1.1 billion for the 12 months ending with March – a 4.2% increase from the previous year. The company also reported an impressive gain on profit – up 26.7% year-on-year to €226 million. This figure easily beat predictions of €212 million.
Cognac was the outperformer in regards to the company’s portfolio of drinks. It’s House of Remy Martin unit posted a 10% increase in turnover, down in part to Chinese interest in the drink. The company said: “in particular China saw a marked increase in private consumption during the second half of the year.”
Analysts at Goldman Sachs wrote in a note to investors: "The strong growth and margin expansion in cognac supports our view that the recovery in China and ongoing premiumisation will continue to drive organic EBIT growth for Remy ahead of European staples."
Dominion holds Remy Cointreau in its Global Trends Luxury Fund.
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