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Rémy Cointreau year results show growth as Asian trading improves

Published:  19 April, 2016

Rémy Cointreau saw net sales grow 8.9% for the 2015/2016 financial year to just over €1.050 billion with strong growth being driven "on the back of improving trends in Greater China."

The yearly financial figures cover the 12 months to 31 March 2016.

Rémy Martin saw the greatest increase in reported sales of 14.7% or €83 million in sales for the 12 months.

According to the year-end report "sustained performance in the Americas and in the European, Middle East and Africa regions, as well as improving trends in Asia over the second half of the year" helped to generate sales growth for the Rémy Martin brand.

In the Americas the "favourable market conditions in brown-spirits, especially in the United States" help to drive the strong performance in those markets. The expansion strategy in Africa equally helped to boost the performance of the EMEA territory of the business.

While overall the company posted growth for the full financial year, the first two quarters of the financial year were more challenging. For the Rémy Martin brand organic sales growth declined -6.7% and -0.4% for the first and second quarters respectively.  The third and fourth quarters saw big improvements for the brand with organic growth increasing to 6.4% and 12.3% respectively.

Liqueurs and spirits division had similar challenges with a -13.8% decrease in organic growth for the first quarter and -3.3% decrease in the second quarter.  The latter half of the year showed improvements with positive organic growth of 4.0% and 6.9% for the third and fourth quarters respectively.

The challenge for the liqueurs and spirits division was attributed to the decline in sales of Cointreau over the year as well as macroeconomic challenges in Greece and Russia.  According to the report the increase in 'comparatives' and alternatives to Cointreau for the first half of the year in the US were particularly challenging.

While there are still some challenges being faced by the company as they work through "technical factors subsequent to the implementation of the strategy to move upmarket (portfolio streamlining at the expense of low-end products, adaptation of the distribution network, expiration of distribution agreements with partner brands)"  posting positive growth for the end of year results does indicate that perhaps the worst of the company's troubles are behind it.  

Rémy Cointreau was hit hard by the austerity measures that were implemented in China in 2013 which saw a crackdown in luxury gift giving.