French drinks group Rémy Cointreau has posted sales of €836.7 million for the first nine months of its 2016/17 financial year, bolstered by 9% growth in the third quarter, a “strong” US and a “recovering” China.
Rémy Martin maker Rémy Cointreau has released its 2016/17 Q3 results
Excluding exchange rates at the impact of acquisitions, nine-month sales were up 6% on 2015/16, driven by a 7.6% uptick in the performance of Group Brands.
The group also cited “some improvements” in travel retail, the Americas and Asia Pacific for the strong results, however noting a “contrasted” performance in Europe, the Middle East and Africa.
Cognac brand Rémy Martin was once again a star performer, posting 11.2% organic sales gains over the period and building on the 5.1% uplift reported in the firm’s first half results.
“Strong momentum” in the Americas, and a private consumption “step-up” in China and travel retail prompted the sales increase, said Rémy Cointreau. In addition, the company attributed the results to increased investment in high-end SKUs, including the Louis XIII Le Mathusalem launch, the L’Odyssée d’un Roi project, and the opening of a LOUIS XIII store in Beijing.
The Liqueurs & Spirits division – comprising Cointreau, Metaxa, Mount Gay, St- Rémy, and the Islay Spirits including Bruichladdich – reported 4.1% organic sales growth for the first nine months.
Orange liqueur Cointreau saw “satisfying growth” driven by the US, France, Greater China and Russia.
Greek spirit Metaxa benefited from the return of growth in Russia, CIS markets and Greece, while continuing “strong momentum” in Europe.
Mount Gay rum had a “good” third quarter in the US, Barbados and the UK, while St- Rémy posted “slight” declines due to a reduction in low-end volumes.
The Islay Spirits quartet of Bruichladdich, Port Charlotte and Octomore single malts and The Botanist Gin continued its run of double digit gains thanks to “particularly strong” sales in key US, Europe and travel retail markets.
“At the end of the first nine months – fully in line with the Group’s forecasts – Rémy Cointreau is confirming its guidance of growth in current operating profit over the 2016/17 financial year, assuming constant exchange rates and consolidation scope,” the company said in its statement.
Rémy Cointreau has experienced a transformative third quarter, unveiling a corporate makeover in addition to announcing a number of key acquisitions.
In October the company confirmed it was bidding for French Alps distillery Domaine des Hautes Glaces, which it subsequently acquired in full.
In December, Rémy Cointreau also purchased Seattle-based Westland Distillery, which produces a range of American single malt whiskeys.
To reflect the new emphasis on whisk(e)y, the company announced yesterday [18 January] it is to establish a dedicated whisky business unit to house Domaine des Hautes Glaces, Westland and its existing Bruichladdich brands.