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Rémy Cointreau FY sales up 10.1%
French firm Rémy Cointreau saw sales rise by double digits for the year ending 31 March 2023, however it predicts a ‘strong’ decline for the first half of fiscal 2024.
The Rémy Martin Cognac maker reported a 10.1% organic sales increase to €1.54 billion (US$1.69bn) for its 2022/2023 full year. Rémy Cointreau noted it was a 43.6% increase when compared to the 2019/2020 full year.
Fourth quarter sales rose by 10.2% organically, marking a return to growth after the company’s revenue for the previous quarter fell by 6%.
Geographically, sales in the Americas rose by 2.5% for the full year, while the Asia Pacific region climbed by 22.7%. Sales in Europe, Middle East and Africa (EMEA) increased by 11%, returning to 2019/2020 levels.
Cognac sales rose by 7.6% for the 12-month period, a 41.4% rise compared to the 2019/2020 full year. Fourth quarter Cognac sales grew by 2.9%.
In the US, Cognac was impacted by the normalisation of consumption. The company said it had held prices for Rémy Martin as part of its ‘value-based strategy’.
Rémy Cointreau increased its investment in the US for the fourth quarter, including a Super Bowl advert with tennis player Serena Williams.
In China, Rémy reported ‘very strong’ Cognac sales after a rebound since February and the launch of its Chinese New Year activations.
The brand’s Rémy Martin Club bottling ‘outperformed’ the rest of the portfolio.
The liqueurs and spirits division performed strongly, increasing by 18.7% for the year (a 54.1% jump on 2019/2020). Sales for the three months to 31 March were also up by a quarter (26.2%).
The segment’s growth was attributed to an ‘excellent performance’ in the US, including ‘solid momentum’ for Cointreau liqueur, gains for The Botanist gin and the continued roll-out of St-Rémy Signature brandy.
The EMEA region also delivered ‘strong growth’ for spirits and liqueurs, and a ‘robust performance’ was recorded in Asia Pacific.
Outlook for 2023/2024
For the next full year, Rémy Cointreau expects a ‘continued strong normalisation’ of consumption in the US, which will be ‘significantly higher’ than the 2019/2020 full year.
It also anticipates ‘strong’ growth in the rest of world, driven by ‘major gains’ in China and the return to 2019/2020 levels in travel retail.
However, the company warned that sales would be ‘stable’ for the next financial year, with a ‘strong’ drop in the first half to reflect a US decline and high comparison bases.
But the following six months will see a ‘strong recovery’ as the group expects a ‘sharp rebound’ in the US during the third quarter.
As part of its sustainability plan, Rémy Cointreau is targeting a 50% reduction in carbon emissions per bottle by 2030. It also intends for all of its partners to be trained in sustainable farming practices.
The company aims to reach net-zero carbon status by 2050.