Spirits group Remy Cointreau has reported better than expected first-half profits despite the global Covid-19 pandemic, and predicted a strong recovery in the second half, driven by China and the US.
For the 2020/21 full year, the maker of Remy Martin cognac, Cointreau liqueur and Mount Gay rum forecast "positive" like-for-like current operating profit growth.
It also said it remained confident of its ability to emerge stronger from the crisis.
The forecast would compare with a slump of 22% in profit the previous year. Analysts had been looking for a 0.5% like-for-like decline for the full year.
The company said its group current operating profit for the six months to September 30 reached €106.2m, or a like-for-like decline of 22.5%, as cost controls helped limit the fall.
That outperformed a company-compiled consensus of 18 analysts that forecast current operating profit of €101.1m, down 26.1% on a like-for-like basis.
It also reflected already reported better-than-expected sales as a rise in sales to US households and strong mid-autumn festival celebrations in China partly offset a slump in travel retail sales from the coronavirus crisis.
Operating profit at the Remy Martin cognac division, which makes more than 80% of group profit, reached €93.6m in the first half, or a like-for-like decline of 25.1%.
Already reported cognac sales fell 18.1% in the first half.
