Cognac sales in Asia boosts Remy Cointreau’s year-end results 4.2%
French Spirits group Remy Cointreau on Wednesday reported its full-year results for the 2016/2017 financial year, which ended on March 31. Total revenue grew 4.2% to €1.09bn ($1.2bn).
The company which publishes its profit figures on June 8 attributes its year-end robust growth to group brands, led by the House of Remy Martin, the company’s revenue driver, accounting for over half of its revenue, recording 9.2% in sales growth to €707.5m. The liqueurs and spirits segment rose 0.9% to €276.3m in the period.
The partner brands suffered a 14% sales decline due to end of distribution agreement for the Champagne brands – Piper Heidsieck and Charles Heidsieck. However, it notes that other partner brands continued to enjoy strong sales momentum in the Europe Middle East Africa region (EMEA) as well as Travel Retail.
The maker of Cointreau liqueur and Mount Gay rum notes that the sustained momentum was driven by an uptick in sales in the Asia Pacific region, led by Greater China and Australia – and an admirable performance in the Americas region, particularly in the United States and Canada.
The company’s Chief Financial Officer Luca Marotta told analysts “The Chinese New Year was very, very good. Mainland China is a clear engine. We gained significant market share in value.”
Cognac sales alone rose 22.3% in the third quarter when sales surged during the Chinese New Year celebration.
The firm said that sales in Africa were held back due to macroeconomic factors in Nigeria, although its brands performed strongly in South Africa.
Looking forward, Remy Cointreau said it was standing by its guidance of growth in current operating profit over the financial year 2016/17, assuming constant exchange rates and consolidation scope.