Rémy Cointreau Posts 8% Organic Growth In First Quarter
Drinks giant Rémy Cointreau has posted organic growth(at constant currency levels) of 8.0% in the first quarter of its financial year, driven by a strong performance by its group brands (+12.3%).
The group posted sales of €240.2 million in the first quarter, which was up 9.9% in reported terms.
The strongest performing arm of the business was its House of Rémy Martin division, which posted a 18.7% increase in organic sales, to €156.6 million. Its Group Brands division posted sales of €215.2 million, up 12.3% in organic terms.
Organic sales declines were reported however in the group's Liqueurs & Spirits division, which saw a dip of 1.9% to report €58.6 million worth of sales, and its Partner Brands division, which saw an 18.5% decline in organic terms to €25.0 million.
House of Rémy Martin
It said that the strong performance of its House of Rémy Martin division was driven by 'highly favourable' trends in Continental China, as well as an 'improved environment' in Macao, Hong Kong and Japan.
In terms of the decline in its Liqueurs & Spirits division, this was largely attributed to the deconsolidation of Passoa sales from December last year - the brand is now managed as a joint venture, under the control of Louis Bols. It said that its Partner Brands decline was 'partly attributable to a change in the portfolio of partner brands', such the distribution agreement for its champagne brands.
'Strengthened by this positive start to the year, Rémy Cointreau confirms its guidance of growth in current operating profit over the financial year 2017/18, assuming constant exchange rates and consolidation scope,' the company said.
© 2017 European Supermarket Magazine. Article by Stephen Wynne-Jones.