The Pleasant Surprise of Remy Cointreau

The results of fiscal 2015 pleasantly surprised. It has surpassed the consensus’ expectations in every game, among which the net profit (94.6 million euros compared to the estimated 86 million euros) and operating margin, which increased to 16.2%.

The company achieved a 13.5% improvement in operating profit last year and by 0.6% in sales, which reached 965 million euros. As a result of this improvement, the company has announced a dividend increase until it reached 1.53 euros per share, which translates into a yield close to 2.3% dividend.

Although revenue growth has been modest, this result reflected the strength of the American market and the positive trend in the European market. However, sales in Asia are trying to gradually recover from its poor performance last year.

If the consensus’ estimate of analysts Bloomberg met are right, this year’s sales will increase by 12.8%, which would put its turnover in the 1,088 million euros. Anticipating improved margins, the increased revenue could translate into a rise of 13.5% in net profit.

According to Felipe Lopez Galvez, from Self Bank, «Over the coming months, the distributor of alcoholic beverages should continue to benefit from the dollar’s rise against the euro, which is the reference currency, as well as from the increased sales of cognac in the United States. To mitigate the weak sales in Asia, the company has set a goal to try to diversify its sales expand in new markets.»

Disclosure: Self Bank is a Spanish online bank born of the agreement between Boursorama, part of Societe Generale Group and CaixaBank, the leading financial group in retail banking in Spain. The shareholding structure of Self Bank is 51% owned by Boursorama and CaixaBank 49%. It has more than 750,000 customers throughout Europe. It is a specialist in online investment bank and savings. It offers a wide range of products: current account, bearing account, payroll account, debit and credit cards, brokerage accounts, mutual funds, pension plans, deposits and mortgages. Their website also offers comprehensive information about quotes and prices for domestic and international markets as well as economic reports today.