A robust sales and profits performance from Rémy Martin, aided by travel retail in Asia Pacific, was the highlight of Rémy Cointreau’s first-half results.
As reported, Rémy Cointreau delivered a solid +5% rise in first-half sales to €571.4 million, with organic growth (at constant exchange rates and scope) up +7.7% year-on-year.
Rémy Martin led sales growth with a surge of +8.5% (+11.7% organic) to €398 million. The company cited “robust trends in the Asia Pacific region, notably in Greater China, Singapore, Australia, Japan and Travel Retail Asia”.
The Americas also performed well through high-end Cognac sales and key markets in EMEA (Russia, UK, Switzerland and India) also posted growth. The organic growth figure of +11.7% was driven by volume growth (+6.4%) and price and mix effects (+5.3%). This, said the group, underlined the strategy of moving its ranges upmarket.
Within Cognac, current operating profit grew by +3.5% on a reported basis but +11.3% in organic terms.
Liqueurs & Spirits posted a sales decline of -1.6% (+0.8% organic) but the performance should pick up in the second half, said Rémy Cointreau, buoyed by a communications drive around key brands. These include the ‘Art of the Mix’ campaign around Cointreau for the brand’s 70th anniversary and ‘Don’t Drink it, Explore it’ for Metaxa.
Elsewhere, upscaling at Mount Gay and St.- Rémy resulted in lower volumes but higher value per case, and there was good growth in The Botanist gin and single malt whiskies, led by the new Port Charlotte bottle release. Within this division, current operating profit fell by -8.2% (-6% organic) due to higher investment in communication and distribution structures.
Overall, current operating profit rose by +2.9% (+10.1% in organic terms) to €138 million, aided by a rise in gross margin and momentum in the spirits division along with enhanced cost control.
Excluding non-recurring items, group share of net profit was €87.5 million, down -3.1% on a reported basis but up by +7.2% in organic terms.
*Click here for an interview with Alfred Cointreau, a member of the sixth generation of the Cointreau family, as the orange peel liqueur brand celebrates its 70th anniversary.
