Rémy Cointreau generated €571.4 million in sales in the first half of its 2018/19 financial year, a reported rise of +5% year-on-year. In organic terms (at constant exchange rates and scope of consolidation), sales climbed +7.7%.
Growth in the first half was driven by the Group Brands (up +8.9% on an organic basis), particularly by the House of Rémy Martin (up +11.7% in organic sales). Continuing strong trends in Asia Pacific, and a solid US market, had a beneficial impact. Travel retail also contributed strongly, the group noted.
The Liqueurs & Spirits division saw moderate +0.8% organic sales growth, but Rémy Cointreau said this “should pick up nicely in the second half” as a result of various communication campaigns.
Partner Brands (-4.5%) continued to decline although this is consistent with Rémy Cointreau’s strategy to “gradually refocus” on Group Brands.
The House of Cointreau rolled out a new global communication campaign celebrating the 70th anniversary of the Margarita’s creation (Cointreau was a key ingredient of the original recipe). It should “benefit from enhanced sales over the second half of the year”, the group said.
By region, Asia Pacific posted an “excellent performance” according to the group. This was driven by strong regional trends, particularly in Greater China. The Americas region accelerated in the second quarter “as expected”, driven by good momentum for the group’s Cognac brands.
The termination of Partner Brands distribution agreements continued to weigh on performance in the Europe, Middle East & Africa (EMEA) region.
