Remy Cointreau 9-months performance boosted by 9% growth in Q3
French spirits group Remy Cointreau on Thursday reported €836.7m in revenue for the first nine months of its 2016/2017 financial year, a 4.7% growth from 2015 when it had €799.2m in sales.
Sales in the third quarter alone (Oct – Dec) rose 9% to €323.3m ($343.89m) buoyed by robust demand for its cognac in the United States, its biggest market and improving sales in China.
Sales for its flagship Remy Martin, which accounts for more than half of the company’s revenue, rose 21.3% in the third quarter to €211.9m, from €174.6m in the previous year, while sales of its partner brands declined 15% in the nine months to date. The reason for the dip was due to the end of contract distribution agreement for the Charles Heidsieck and Piper Heidsieck champagne brands.
The company said that performance of its brands in its Europe, Middle East and Africa region (EMEA) was more subdued, while Russia, Central Europe, the UK and South Africa delivered impressive results.
On outlook, Remy Cointreau said it was sticking with its guidance of growth in the current operating profit for the 2016/17 financial year assuming constant exchange rates and consolidation scope.