Remy Cointreau advances in first nine months of the year
On Friday, Remy Cointreau released results for the first nine months of the year that show a slight slowdown from the first half, but an advance on the same period a year ago. The company said that sales in the third quarter were up by 3.2% against a “high basis of comparison”. For reference, the first quarter saw a rise in sales of 8%, while the second quarter saw an increase of 6.2%. All of these figures are reported against the same period in the previous year.
While the news didn’t please all commentators, it should be remembered that all these numbers are positive. The group’s top line has risen by 5.5% thus far against the previous year, and could suffer a fourth-quarter decline in sales of as much as 18% while still hitting parity with fiscal 2016. For that to happen would require serious difficulties for the drinks company – yet, if anything, the company stands to benefit from some positive trends in the fourth quarter.
Remy’s share price has appreciated by 46% over the past 12 months
SOURCE: Yahoo Finance
Chief amongst those trends is the continued recovery in China. With Chinese New Year on the way, this is likely to be exacerbated, and Remy will likely see stronger performance in the country. Additionally, Remy has a very strong showing in both premium spirits and brown spirits (with a lot of overlap between the two). Drinkers, who are drinking more globally than ever before, are showing strong preference for both of these segments.
Dominion holds Remy Cointreau in its Global Trends Luxury Fund.
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