Keystone-SDA
The group of spirits Rémy Cointreau announced on Friday to raise its annual operating profit objective. The expected decline should be less marked than expected after the agreement reached in June on the Cognac prices in China.
(Keystone-ATS) The current operating profit, in organic, should back up a few points (less than 10%), when the group previously provided a drop that could approach 20%, says Rémy Cointreau, whose turnover in the 1st quarter of its offbeat exercise also believed 1.8%.
After the signing of an agreement with Beijing on minimum price commitments and in view of the latest statements by US President Donald Trump, the French group has revised down the maximum net impact of these two customs conflicts, now estimated at 45 million euros (barely less in francs) against 65 million previously.
The net impact on its result is now 10 million in China, and no longer 40 million. On the other hand, Rémy Cointreau now plans 35 million impacts from the United States, and no longer 25.
This first quarter, its turnover amounted to $ 220.8 million, beyond the expectations of FactSet analysts.
This 1.8% increase is supported by a “very strong growth” of cognac sales in the United States (and a favorable comparison base over a year when American wholesalers destined). This assessment is also affected by an unfavorable effect of currencies, underlines the group.
For this quarter, Rémy Cointreau also observes “a limited decline in cognac sales in China”, where market conditions remain difficult and the duty free is, by decision of the authorities, always inaccessible for European life waters, against the background of conflict with the EU around the taxation of Chinese electric cars.