French spirits maker Remy Cointreau reported higher than expected annual profit today as demand for premium cognac grew in China.
The high-end drinks firm said current operating profit for the year to the end of March was €226.1m (£196.3m), an increase of 26.7 per cent from the previous year, or organic growth of 13.8 per cent.
The Paris-listed company that makes Remy Martin cognac and Cointreau liqueur announced it will pay a dividend of €1.65 per share.
Why it's interesting
Remy Cointreau is making better than expected progress on its plan to sell higher-priced products and improve profit margins, leading it to raise its medium-term profitability forecasts.
With a goal to become the world leader in high-end spirits, Remy Cointreau has reached a margin of 20.7 per cent ahead of schedule. Now it expects a margin of between 21.5 per cent and 22.5 per cent by 2019/20.
The group sells spirits priced at $50 a bottle or more, and it has seen strong sales growth in the US and in China where products like its $3,000 a bottle Louis XIII cognac were in high demand.
Read more: Remy cointreau keeps its spirits up