Rémy toasts “outstanding” results

Spirits group Rémy Cointreau has again announced that its investors are to receive a special dividend thanks to booming sales of Cognac in the Far East.

Furthermore the group has been able to cut its net debt by 43% due to an uplift in full-year profits.

Turnover for the year ending 31 March increased 13% to €1,026.1 million, while operating profits rose 24.4% to €207.7m – a result the group called “outstanding”.

The group reported growth across all regions with Europe driven by Western Europe and Russia and double-digit growth recorded in Asia-Pacific and the US.

Debt is now at an “all time low” of €188.6m as opposed to €328.9m in 2010.

All of these results were attributed in particular to “continued and rapid growth in Asia” and the disposal of the Champagne division over the last couple of years.

Rémy Martin alone saw a 21% increase in turnover to €592.5m and a 23% rise in operating profit to €173m.

While this “remarkable performance” was largely driven by demand for premium Cognacs in Asia, it was noted that the US, Russia and the travel retail market all contributed to growth.

This boosted shareholders’ equity to €976m and an ordinary cash dividend of €1.30 with an additional €1 “special dividend” will be put to a shareholders’ vote on 26 July.

Rémy recently bought back €100m worth of shares which it is believed to be keeping for future acquisitions.

In the final outlook the group declared that, “despite an uncertain economic and monetary environment in Europe, Rémy Cointreau is in a good position to continue to grow its brands.

“The Group will therefore remain true to its value strategy whilst considering potential growth opportunities.”