Remy Cointreau's higher profit forecast gives warm glow

PARIS, Nov 25 (Reuters): Remy Cointreau raised its full-year profit forecast after a better-than-expected first half, driven by strong demand for its premium cognac in China, the United States and Europe, lifting its stock to a record high on Thursday.
Chief Executive Eric Vallat told journalists the spirits group had made an "encouraging" start to the third quarter in China, thanks to strong sales during the Singles' Day online shopping bonanza and the mid-autumn festival.
Singles' Day business alone makes up 10 per cent of Remy Cointreau's annual sales in China.
The maker of Remy Martin cognac and Cointreau liqueur said it now expected "very strong" organic growth in current operating profit in the 2021/22 financial year. It had previously targetted "strong" growth.
Remy shares jumped as much as 12 per cent to a record high of 209.80 euros.
The company also remained confident of outperforming the premium spirits market and reiterated a forecast for strong organic growth in full-year sales.
The Covid-19 pandemic has boosted Remy's drive towards higher-priced spirits to boost profit margins long term, accelerating a shift among consumers towards premium drinks, at-home consumption, cocktails and e-commerce, Vallat said.