Rémy Cointreau has posted sales of €558.0 million for the first six months of the financial year (April-September 2013), an organic decline of -3.6% compared with the same period the previous year, which saw an increase of +13.3%.
Excluding Asia, all group brands recorded good growth, particularly in the US and throughout the Americas region. In Europe, group sales grew in a challenging economic environment. In Asia, as previously stated, China remained affected by a number of slowdown factors, while Japan and Indonesia saw good growth.
Rémy Martin – The growth achieved in the US and Europe since the beginning of the financial year did not offset the impact of the slowdown in China, the group noted. The brand declined by -8.3% organically in the second quarter. The temporary slowdown in the sales momentum of premium cognacs in China – a development that “does not in any way detract from the brand’s fundamentals” according to the group – did not constrain Rémy Martin’s strategic and targeted investment in this region. In the US, brand momentum has been confirmed over the last few quarters.
Liqueurs & Spirits – Overall, the division recorded organic growth of +10.2%. Cointreau recorded good growth in the US, Latin America and in its key European markets, particularly the UK and France. Metaxa continued to grow in Greece and in certain Eastern European countries as well as in Russia. Mount Gay Rum’s new range is being rolled out successfully in the US, its principal market. The single malt Scotch whisky Bruichladdich, which was acquired in September 2012, continued its expansion within the group’s network.
Partner brands – The increase in sales of Partner brands (up +6.0% organically) was principally due to sales growth in the US.
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During the six months under review, the movement in the exchange rate of foreign currencies against the Euro had a negative impact of 2.7% on sales.
On 30 August 2013, the group announced the completion of the sale of Larsen Cognac to the Finnish group, Altia. This transfer included the brand, industrial and commercial assets together with the inventories needed for the entity to operate as a going concern.
In the third quarter, Rémy Martin is expected to remain adversely affected by certain measures taken in China and by the level of retail inventories. Nevertheless, the group said it remains confident in the brand’s “exceptional fundamentals” in Asia and in its long-term development in China.
The group stated that it will continue to pursue its strategy of moving its brands upmarket and create long-term value. “As a result of sustaining its targeted investment, pursuing a policy of innovation, continuing to expand its distribution network and maintaining strict cost control, the group is confident in the ability of its value creation strategy in order to return to steady growth,” it concluded.
