(AOF) – Rémy Cointreau jumped more than 10% to 207 euros after reaching a record earlier at 209.8 euros. In the wake of the cognac producer, Pernod Ricard grew by 2%. Investors welcome the exceptional half-year results unveiled this morning by the family group. The Charente house is fully benefiting from the growing enthusiasm of consumers around the world, especially Chinese and Americans, for its top-of-the-range eaux-de-vie. It is thus reaping the benefits of its specialization in luxury cognac (88% of its current operating profit), the most profitable.
In the first half of its 2021/2022 financial year, which will end at the end of March, Rémy Cointreau more than doubled its net income to 134 million euros.
Current operating income stood at 212.9 million, representing exceptional growth of + 104.5% organically and + 100.4% as reported. Analysts had expected 168.1 million.
The current operating margin jumped 8.3 points as reported to 33% (+8.5 points on an organic basis), reaching its all-time high.
Revenue reached 645.3 million, up 52% organically (+ 49.8% as reported) and 26.9% organically compared to the first half of 2019-20 (pre-pandemic).
This performance reflects continued excellent momentum in China and the United States and a strong recovery in Europe.
For the full year, Rémy Cointreau reiterates its confidence in its ability to outperform the exceptional spirits market and anticipates strong organic growth in its turnover, mainly linked to the performance of the first half.
The group also confirms its desire to significantly increase its investments in marketing and communication this year, particularly in the second half of the year, in order to support its brands in the rebound and to increase their growth potential in the medium term.
On the strength of its results, Rémy Cointreau is raising its annual objective and is now aiming for very strong organic growth in its current operating income.
Given its desire to intensify its investments in marketing and communication, to control its strategic stocks in the fourth quarter and a high basis of comparison in the second half, organic growth in current operating income will only benefit from the exceptional growth of the first semester, the company warned.
As a result, Rémy Cointreau now anticipates an organic improvement in its current operating margin.
“This semester has been a formidable one for Rémy Cointreau and reflects our market share gains and solid progress vis-à-vis our strategic priorities. These results strengthen our ability to become the world leader in exceptional spirits”, commented Eric Vallat, CEO of the group.
“We must be proud, but remain humble, because we operate in a resilient industry. In addition, our exceptional brands have been built over the centuries and are now perfectly positioned to benefit from the upscaling that we are seeing. in the world “, continued the leader.
On first reading, UBS confirmed its Neutral opinion and its price target of 178 euros. The broker expected a positive reaction from the markets.
He recalls that the stock is valued at 47.2 times its expected profits for 2021/2022, i.e. with a significant premium which could be justified by the better medium-term growth of the sector and by its unique positioning in spirits in the United States. and in China.
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