202223 operating profit up 16.2 organic vs est. 14.4
Eyes stable sales and profitability in 202324, organic basis
Expects fall of some 35 in group sales in Q1 CFO

PARIS, June 1 Reuters French spirits group Remy Cointreau beat forecasts with record annual operating profits on Thursday, and reiterated its pledge to overcome a tough start to its new financial year, particularly in the United States.

Chief Executive Eric Vallat told analysts he was confident about a secondhalf rebound as the company was well placed to benefit from trends such as premiumisation, consumers drinking less but better, and at home mixology cocktail making.

The maker of Remy Martin cognac and Cointreau liquor reiterated a forecast for flat organic sales in the 202324 financial year, with steady profitability, reflecting weaker U.S. demand and high yearago comparables.

With the normalization of consumption in the United States amplified by a high basis of comparison in the first half, and our drive to reduce inventories, we expect sales and profitability to hold steady in 202324 on an organic basis, Vallat said in a statement.

By 0945 GMT, Remy Cointreau shares were flat at 143.9 euros, after rising as much as 6 in early trade after the profit beat.

During the COVID19 pandemic, Remy Cointreau and rivals such as Pernod Ricard benefited from people drinking more expensive types of alcohol at home.

There are, however, signs that spirits industry growth is slowing, notably in the United…