French alcoholic drinks group Remy Cointreau SA (RCO.FR) Tuesday
said it will continue to generate steady, profitable growth as its
full-year net profit rose sharply, bouncing back after being hit by
a one-off write-down a year earlier.
The company said the results reflect its "buoyant business
activities worldwide," echoing the optimism of its rivals regarding
growth of high-end alcohol brands, as rising incomes in Asia and
Latin America continue to fuel demand for premium beverages.
"The momentum recorded throughout the 2011/12 financial year,
despite an uncertain economic and monetary environment in Europe,
demonstrates that Remy Cointreau is in a good position to continue
to grow its brands," said the company in a statement.
Net profit in the year ended March 31 rose 57% to EUR110.8
million, from EUR70.5 million a year earlier, when the company
booked a EUR45 million loss related to the depreciation of Metaxa,
a brand sold mainly in debt-laden Greece.
Excluding non-recurring items, net profit rose to EUR123.9
million from EUR107.5 million last year.
Revenue rose 13% from a year earlier to EUR1.03 billion.
The maker of Remy Martin cognac and Mount Gay rum also reported
a 20% organic increase--excluding currency variations--in current
operating profit.
The company's cognac division--which accounts for over 50% of
annual revenue--continued to grow strongly, with current operating
profit up 21% excluding currency effects.
Remy Cointreau posted a current operating margin of 20.4%, up
from 18.4% last year, boosted by price increases and a continued
move toward upmarket drinks, even though the company raised
spending on marketing.
Remy Cointreau's fortunes are largely shared by its rivals.
Pernod Ricard SA (RI.FR) reported solid sales growth in April, and
said growth in the crucial emerging markets remain "very dynamic."
Also in April, LVMH Moet Hennessy Louis Vuitton SA (MC.FR) said
cognac sales had made "an excellent start to the year," posting
volume growth of 9% in the first quarter of 2012. However, Diageo
PLC (DEO) earlier this year sounded a cautious tone given the
challenging conditions in Europe.
The company announced it will propose to shareholders a EUR1.30
ordinary dividend and an exceptional dividend of EUR1.
Shares in Remy Cointreau closed Monday at EUR81.34.
Write to Nadya Masidlover at nadya.masidlover@dowjones.com
