June 7, 2018 / 5:37 AM / 2 months ago

Remy Cointreau's profits boosted by China's thirst for cognac

PARIS, June 7 (Reuters) - Remy Cointreau said its annual operating profits rose by a stronger-than-expected 14.1 percent, helped by cost controls and strong demand for its premium cognacs in China.

The maker of Remy Martin cognac and Cointreau liqueur said its strategy of selling higher-priced spirits to boost profit margins was delivering strong results, and the company also raised its medium-term profitability forecasts.

It added that it aimed to increase operating profits on a like-for-like basis in the current financial year that started on April 1.

Operating profits for the year ended March 31 rose to 236.8 million euros ($279.4 million). This translated into a margin of 22 percent of sales at constant exchange rates and scope, marking a gain of 1.3 percentage points from the previous year.

This was above the consensus of analysts’ forecasts for profits of 235.5 million euros, and a prediction for organic profit growth of 12.9 percent.

$1 = 0.8475 euros Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta

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