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Rémy Cointreau hails ‘excellent’ first quarter
French drinks group Rémy Cointreau saw its first quarter sales rise by 9.9% to €240.2 million (US$276m), driven by strong Cognac gains in China.
Cognac sales have bolstered Rémy Cointreau’s first quarter 2017/18 sales
Geographically, Asia Pacific posted an “excellent” performance in the company’s fiscal 2017/18 first quarter, with strong performance in Greater China, Singapore and improvement in Japan.
The group cited “remarkable” performance of its Cognac brands, with an organic sales growth of 18.7%. Sales were benefited by “highly favourable” trends in Continental China and an improved environment in Macao, Hong Kong and Japan.
In addition, the company attributed the results to a “rich” set of initiatives, including the Louis XII limited edition expression The Legacy and the release of Rémy Martin XO Cannes 2017 in travel retail.
The recent acquisitions of the Domaine des Hautes Glaces and Westland distilleries also made a “favourable contribution” in the period.
Sales from the Liqueurs & Spirits division – comprising Cointreau, Metaxa, Mount Gay, St-Rémy, and the Islay Spirits including Bruichladdich – reported 1.9% decline in organic sales, negatively impacted by the Passoa JV deal with Lucas Bols, struck in December 2016. Rémy Cointreau said the development masked the strong growth of the division’s brands up 7% in the first quarter.
Cointreau’s sales were fuelled by a “robust” performance in its main market, the US, as well as Greater China and Russia.
Greek spirit Metaxa witnessed strong momentum, due to the success of its 12 Stars campaign and improved trends in travel retail.
Mount Gay rum and St Rémy brandy also returned to growth in the period, led by positive trends in the US.
Islay Spirits (Bruichladdich, Port Charlotte and Octomore Scotch plus The Botanist Gin) maintained strong growth in Q1 boosted by the success of The Botanist Gin.
“Strengthened by this positive start to the year – Rémy Cointreau confirms its guidance of growth in current operating profit over the financial year 2017/18, assuming constant exchange rates and consolidation scope,” the statement read.
The company added that the first quarter does not traditionally make a significant contribution to annual sales.