Rémy Cointreau sees first quarter sales rise 10%
Last month, global premium spirits seller Rémy Cointreau said that China was driving sales of its key brands, particularly cognac. This month, we have discovered how much by. The company has released their first quarter earnings for the fiscal year, showing a sales rise of 9.9% to €240.2 million – driven, in large part, by the returning popularity for its brands in Greater China, Singapore and Japan.
Remy Cointreau’s share price is up by 45% so far this year
SOURCE: Yahoo Finance
The group claimed that its cognac brands were “remarkable” outperformers over the first quarter, seeing organic sales growth of 18.7%. This is where the eastern pallet has really played into the company’s bottom line: “highly favourable” trends in Continental China, as well as improvements in Macau, Hong Kong, and Japan, have driven sales. The company also saw “favourable contributions” from its recent acquisitions Domain des Hautes Glaces and Westland Distilleries.
However, the results weren’t all good news. The company said sales at its Liquers and Spirits division (which include Cointreau, Metaxa, Mount Gay, St-Rémy, and the Islay Spirits) saw a 1.9% decline due to negative impact from the Passoa JV deal with Lucas Bols struck in December 2016. However, the company was quick to point out that this development “masked the strong growth of the division’s brands, up 7% in the first quarter.”
In a note, the company said: “Strengthened by this positive start to the year – Rémy Cointreau confirms its guidance of growth in current operating profit over the fiscal year 2017/18, assuming constant exchange rates and consolidation scope.” It also pointed out that the first quarter does not, traditionally, make a significant contribution to annual sales.
Dominion holds Rémy Cointreau in its Global Trends Luxury Fund.
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