Introduction
Rémy Cointreau (REMYY) (referred here as "RCO") has been a Buy-rated stock in our coverage universe since December 2019 - we like the structural growth in the global spirits sector, driven by both increasing premiumisation and rising emerging markets affluence (especially in China). RCO, while having a narrower portfolio than larger peers Diageo (DEO) and Pernod Ricard (PDRDY) (both Buy-rated), has a higher concentration of premium brands, which gives it faster though more cyclically volatile earnings growth.
RCO released its FY20 results last Thursday (4 June), and shares