Rémy Cointreau has reported +6.0% year-on-year sales growth in the first half of its 2017/18 financial year, to €544.4 million.
At constant exchange rates and scope, sales climbed +7.0%, including sustained momentum in the second quarter (+6.2%), the group said.
The robust growth in the first half of the year was driven by Group Brands (+9.6% in organic terms), and in particular by the House of Rémy Martin (+15.4%). Travel retail sales of the House of Rémy Martin were strong, thanks to a “clear improvement in high-end Cognac trends”.
A decline in Liqueurs & Spirits sales (-4.5% in organic terms) resulted from the deconsolidation of Passoã, and conceals the +5% growth of the division’s remaining brands. Rémy Cointreau noted an acceleration in travel retail trends for The House of Metaxa, “thanks to the return of Russian travellers”.
The sales of Partner Brands continued to be affected by the end of the distribution agreement for the Champagne brands, Rémy Cointreau said.
In the first half, organic growth increased in all regions. Growth in Asia Pacific was driven by strong momentum in Greater China and Singapore, as well as improved trends in Japan. The Americas benefited from solid second quarter growth in the USA, “amid a favourable environment for Cognac upscaling”. Growth in the Europe, Middle East and Africa (EMEA) region was underpinned by positive performance in Russia, Central Europe and Africa, the group reported.
Looking ahead, Rémy Cointreau stated: “With first-half sales fully in line with the Group’s forecasts, Rémy Cointreau confirms its guidance of growth in current operating profit over the financial year 2017/18, assuming constant exchange rates and consolidation scope.”
Footnote: Look out for an interview by Martin Moodie with Rémy Cointreau Chief Executive Officer Valérie Chapoulaud-Floquet, coming soon.