French drinks group Rémy Cointreau posted full-year reported sales growth of 4.2% in 2016/17 driven by strong Cognac gains in Asia and the US.
Rémy Martin has bolstered Rémy Cointreau full year reported sales by 9.2%
Total sales reached €1.09 billion (US$1.17bn), with Rémy Cointreau’s own brand portfolio contributing 6.7% reported growth. Sales were pegged back by -13.9% declines from the partner brands division following the end of distribution contracts for the firm’s Champagne brands.
The results follow a strong 2015/16 year, when sales increased 8.9% to reach €1.05bn (US$1.19bn).
Geographically the group reported a “clear acceleration” across Asia Pacific, particularly in Greater China and Australia, and an “excellent” performance in the US and Canada.
Europe, the Middle East and Africa saw “contrasted” sales, however Russia, Central Europe, the UK and South Africa put in a “strong” year.
Rémy Martin was the star performer, posting 9.2% reported sales gains, echoing the gains made by the wider Cognac category.
Growth was driven by Asia and the US, in particular a “sharp acceleration” in private consumption in China and “some improvement” in travel retail. The Russia market returned to “solid” growth.
Following the brand’s decision to scrap the VS age statement, volumes increased 4.5%, while mix and price effects added 5.5% growth. Key initiatives pushing the growth include the launch of Louis XIII Le Mathusalem and the Louis XIII store in Beijing, the company notes.
Performance was more mixed for the Liqueurs & Spirits division, which was negatively impacted by the Passoa JV deal with Lucas Bols, struck in December 2016.
Excluding the deal, sales for the division, which includes Cointreau liqueur, Metaxa spirit, Mount Gay rum, St-Rémy brandy, Bruichladdich Scotch whisky and The Botanist gin, climbed 4%.
Cointreau posted a “solid” year, with gains in the US and France and “new” markets Greater China and Russia, while Metaxa returned to growth in Russia, the CIS region and Greece thanks to the 12 Stars bottle launch.
Mount Gay and St-Rémy recorded a “slight dip” resulting from a reduction in low-end volumes as the company focuses on higher-end expressions.
The Islay Spirits portfolio of Bruichladdich, Port Charlotte and Octomore Scotch whiskies and The Botanist gin posted “double digit” gains led by the United States, Europe and travel retail.
“With annual sales fully in line with the Group’s forecasts, Rémy Cointreau is confirming its guidance of growth in current operating profit over the financial year 2016/17, assuming constant exchange rates and consolidation scope,” the company said in its statement.