Rémy Cointreau falls on slower sales outlook after pandemic boom

By Geoffrey Smith

Investing.com -- Rémy Cointreau (EPA:RCOP) stock fell in early trading on Thursday after the French spirits giant said it expects growth to slow in the second half of its fiscal year.

CEO Eric Vallat said the six months through March will likely show a "return to normal consumption in the post-covid era."

In absolute terms, the company expects consumption to be well above pre-COVID levels but Vallat warned that the company's explosive growth in the last two years will make for some tough comparisons. He nonetheless repeated the company's full-year guidance, saying that Rémy was ahead of schedule in meeting its strategic targets.

Rémy Cointreau stock fell over 3% at the opening before paring losses to trade down less than 1% by 04:05 ET (09:05 GMT). The stock had more than doubled during the pandemic as locked-down consumers consoled themselves with small luxuries to compensate for the loss of other spending opportunities. It has held on to more than half of those gains despite the broad selloff in equities this year.

The company was able to push through some formidable price rises of over 11% on the year in the first half, another indicator of how much of this year's inflation at the consumer price level has been driven by margin expansion rather than any other factors. Despite the price rises, sales volumes rose 9.7%, giving a total rise of 21% in organic sales.

The depreciation of the euro also added a powerful tailwind, adding over €48 million to reported sales and boosting its operating margin by 2.2 percentage points. Over the full year, the company said it expects currency factors to add between €110-120M in sales and €55-60M in operating profit.

Foreign exchange swings accounted for more than half of an overall 3.8-point expansion in margins. Much of the rest of the improvement came from the temporary suspension of marketing spending in China, the company fearing that consumers would be unable to respond to it in an environment of repeated localized lockdowns due to COVID-19.

Net profit rose 67% to €224M, while earnings per share rose 65% to €4.40.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.4% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    London
    EC2A 2BN
    United Kingdom


    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    Dubai
    United Arab Emirates
     
    T: + 00 971 44 22 888
    E:  info@ofmarkets.com
     

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: