Rémy Cointreau generated €919.4 million in sales in the first nine months of its 2018/19 financial year, a reported rise of 6.7% year-on-year. In organic terms (at constant exchange rates and scope of consolidation), sales climbed 8.1%.
In travel retail, the drinks company reported sustained double-digit growth in Asia Pacific, and also noted a strong performance in the Americas, driven by new listings and better traffic.
In the Europe, Middle East & Africa (EMEA) region, travel retail sales declined, which Rémy Cointreau largely attributed to the closing of its Russian Standard distribution contract.
Rémy Cointreau said its overall sales growth demonstrated “sustained momentum”, following a reported rise of 5% and an organic increase of 7.7% in the first half. The earlier timing of the Chinese New Year in 2019 added one point of growth in the third quarter, it said, boosting sales by €4million.
Growth in the first nine months was driven by the Group Brands (up 10.3% on an organic basis). The House of Rémy Martin (up 13.1% in organic sales) was carried by a strong performance in Asia Pacific and the USA.
The Liqueurs & Spirits division saw a 2.3% rise in organic sales, but enjoyed accelerated growth in the third quarter as it reaped the benefits of various communication campaigns.
Partner Brands (down 13.6%) continued to decline although this is consistent with Rémy Cointreau’s strategy to “gradually refocus” on Group Brands.
The group’s two growth engines continue to be Asia Pacific and the Americas, which demonstrated “excellent momentum” over the period, according to the company, and particularly in the third quarter.
The termination of Partner Brands distribution agreements continued to weigh on performance in EMEA, but Rémy Cointreau said the third quarter showed a “sequential improvement”.
