Shares in Rémy Cointreau climbed more than 11% today (4 June) after the French group outlined a plan to revive sales.
The French group’s full-year operating profits also beat analyst forecasts, although one said expectations had been “low”
The Rémy Martin brand owner, which derives a clear majority of its sales from Cognac, is aiming to boost its underlying operating profits by €100m over the next three financial years. Among the company’s efforts will be a bid to “scaling up” its business in emerging markets and “accelerating” sales in travel retail. The three-year plan also includes moves to try to “optimise” its A&P spending and “centralise” procurement.
Rémy Cointreau booked a 6.2% decline in Cognac sales to €573.6m in the 12 months to the end of March. On an organic basis, sales dipped 0.6% to €608.4m amid a 7.8% rise in volumes. Group sales fell 5% to €935.6m but were up 0.2% organically.