Remy Cointreau Q2 revenue rise on robust demand in the US, China

cognac

Remy Cointreau said on Tuesday that sales growth gained momentum in the second quarter, buoyed by strong demand for its premium cognac in the United States, its largest market, and improving cognac sales in China.

The maker of Remy Martin cognac and Cointreau liquor said that revenue rose to €294.8m ($330.21m) in the second quarter to September 30 2016, a 7.4% gain from the first quarter when sales were flat.

Sales of Remy Martin, the group’s flagship brand, which contributes 59% of sales, rose 9.3% in the second quarter, compared to a 0.5% decline in the first quarter.

Elsewhere, the company reported flat sales in Europe except for Central Europe which posted high-single digit growth led by solid momentum in the Czech Republic and Slovakia. The United Kingdom, Russia and Australia also showed modest growths.

The French spirits maker said that growth was held back in Africa due to macro-economic factors in Nigeria.

Sales of its partner brands declined due to the end of distribution agreement for Piper Heidsieck and Charles Heidsieck champagnes in France, Belgium and Travel retail.

On outlook, the company said it was sticking with its revenue guidance for growth in Current Operating Profit over the 2016/17 fiscal year, assuming constant exchange rates and consolidation scope.

You may also like:

Leave a Reply

Your email address will not be published. Required fields are marked *