Remy Cointreau re-bounds with 7% sales growth

By Jo Gilbert

Published: 24 November, 2016

Top Cognac producer Remy Cointreau has reversed its fortunes after a difficult 2015.

Half year profits for the financial year are up 7% to €123.9 million thanks to strong sales of their top-end products.

The Cognac, liqueurs and spirits producer brought in €513.4 million in sales for the first six months of fiscal 2016 to September 30, an increase of 4.1% on an organic basis (at constant exchange rates and scope of consolidation) and 2.5% on a reported basis.

This is in contrast to the first quarter of the 2016 fiscal year when reported sales dipped 2.1% to €218.6 million to June 30.

Part of the "robust" performance was down to a positive foreign exchange effect over the half-year period, the company said.

Top Cognac brand Rémy Martin saw organic sales grow by 5.1%, driven by its top-end products, with strong performances in the Americas and renewed growth in China.

Liqueurs and spirits were buoyed in H1 2016, following a difficult year in 2015/2016, again growing by 5.1%.

Core European and US markets saw the lion's share of sales.

Things were trickier in the partner brands division, with a drop in sales attributed to the end of the distribution agreement for Piper Heidsieck and Charles Heidsieck champagnes in France, Belgium and Travel Retail.

Sales of other partner brands continued to see upward momentum in the EMEA region however.

Profit came to €2.7 million, down 15.8% organically, led by the decline in champagne sales.

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