Rémy Cointreau posts 10.1% sales leap

Bruichladdich owner Rémy Cointreau recorded annual sales of €1.55 billion (US$1.72bn) for the financial year (FY) ending 31 March.

In its 2022/2023 Integrated Annual Report published on Friday (21 July), Rémy Cointreau revealed it recorded a sales increase of 10.1% for FY 2022/23.

The increase was driven by the company’s Cognac division, which accounted for 71% of the group’s total sales and generated 99% of its international sales in FY 2022/23.

The Americas (51%) and Asia Pacific (41%) are the division’s top contributing regions. However, the Europe Middle East Africa (EMEA) region (8%) offers medium-term growth potential, the company said.

The French firm’s liqueurs and spirits division, which includes Cointreau, Metaxa, and Bruichladdich single malt whiskies, accounted for 27% of the group’s total sales (€419m).

The Americas (52%) and EMEA (34%) are the top contributing regions in the division.

Although smaller (14%), Asia Pacific represents a ‘significant development opportunity’ for the division in the coming years, the firm said.

The partner brands division, made up of non-proprietary brands distributed by the group such as Passoa Passion Fruit liqueur, achieved €29.6m (US$32.8m) revenue, accounting for 2% of the brand’s total sales.

Marie-Amélie de Leusse, chair of The Rémy Cointreau Group, said: “Our 2022/23 results are in line with [the group’s 2030] strategy, through the efforts of our teams worldwide and we sincerely congratulate them on their inspiring collective work.

“Our group is therefore very well positioned to approach the coming year, or – rather – the years to come, as our success is and will only be long term, sustainable and responsible for the Earth and its population.

“Here, we are all confident about the future. I am fully aware of the strengths of our teams, the uniqueness of our Maisons and the loyalty of our clients.

“Today, the vision and action of the CEO, Éric Vallat, allow us to build on our strengths and emerging outlooks.”

Future outlook

Going forward, the French firm anticipates ‘a continued strong normalisation of consumption’ in the US, at a level that will remain ‘significantly higher’ than in 2019/20.

At the same time, the group expects strong growth in the rest of the world region, led by major gains in China, as well as ‘a very good showing’ in EMEA and the rest of Asia, and business similar to levels observed in 2019/20 in travel retail.

The group expects sales to remain stable overall on an organic basis in 2023/24, but with a strong sales decline in the first half, reflecting a very strong fall in the US, and high bases for comparison.

It then expects a strong recovery in the second half, driven by a sharp rebound in the US starting in the third quarter.

In the medium term, Rémy Cointreau said it was reasserting its ambition to become the ‘world leader in exceptional spirits’.

For this, Rémy Cointreau intends to pursue its value strategy and create a business model that will deliver both profitable and responsible growth.

The group estimates that currency will have an unfavourable impact for sales, and current operating profit.

Non-financial data

The report also noted the firm’s non-financial achievements of the last financial year, including a 5% decrease in the group’s carbon footprint per bottle compared with 2020/21.

Furthermore, 78% of the firm’s bottles are reported to now be sold without secondary packaging.

De Leusse added: “We are also delighted with our performance in terms of sustainable development, with €80m of investment committed over 10 years in 2020.

“Our ‘Sustainable Exception’ plan reflects our ambition to grow responsibly and share value with all our stakeholders, in line with our commitments to the United Nations as part of the global compact.”