Rémy Cointreau: First Half Sales

Dienstag, 18.10.2016 07:35


Regulatory News:

Rémy Cointreau (Paris:RCO) generated sales of €513.4 million in the first half of its 2016/17 financial year, with reported growth of 2.5%. In organic terms, sales rose 4.1% on the back of a strong second-quarter performance (7.4% growth).

The good showing to end-September was driven by the Group's brands, which grew by 5.1% in organic terms, while the 3.1% contraction for Partner brands was due to the end of the distribution agreement for the Charles Heidsieck and Piper Heidsieck champagne brands.

The Americas region posted remarkable growth over the half, lifted by the success of our brand portfolio in the United States. Sales growth in Greater China, the UK, Russia and Australia also played a part in the Group's solid performance over the period.

Breakdown of sales by division:

  6 months   6 months   Change
(€ millions)  

to 30/09/2016

  to 30/09/2015   Reported   Organic (*)
Rémy Martin 322.5 313.1 3.0%   5.1%
Liqueurs & Spirits 134.8 130.1


Subtotal: Group brands 457.3 443.1 3.2% 5.1%
Partner brands 56.0 57.6 -2.8% -3.1%
Total   513.4   500.7   2.5%   4.1%

(*) Organic growth is calculated assuming constant exchange rates and consolidation scope.

Rémy Martin
The House of Rémy Martin made a robust start to the year, reporting 5.1% growth in organic terms on strong performances in the Americas region and renewed growth in Greater China.

The House's superior qualities drove the expansion: 1738 Accord Royal continued to build on its success in the United States and Louis XIII’s global momentum benefited from two major initiatives: the L’Odyssée d’un Roi project and the opening of its first store, in Beijing, China.

Liqueurs & Spirits
Macroeconomic and technical factors were a drag on performances in 2015/16, but Liqueurs & Spirits got back on track in the first half of 2016/17, especially on the core European and US markets, achieving 5.1% organic growth.

Cointreau enjoyed robust growth over the half, as end demand remained strong in the United States and continued to improve in France. The brand is also starting to make significant inroads in Greater China.

Metaxa continued its return to growth over the half on a combination of improved momentum in Russia/CIS, successful marketing activations in Germany and stable sales in Greece.

The dip in sales at Mount Gay and St-Rémy in the first part of the year reflected the accelerated upscaling process for these brands, which led to a volume decline in entry-level products.

Islay Spirits (Bruichladdich/Port Charlotte/Octomore/The Botanist) continued to see double-digit growth in the first half, driven by its main markets (United States, Europe and Travel Retail).

Partner brands
The fall in sales was attributable 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 enjoy strong momentum in the EMEA region.

2016/17 outlook
At the end of this first half – fully in line with the group’s forecasts – Rémy Cointreau confirms its guidance of growth in Current Operating Profit over the 2016/17 fiscal year, assuming constant exchange rates and consolidation scope.

Appendix: Sales and organic growth by business and by quarter

2016/17 Financial year                
(€ millions)   Rémy Martin   Liqueurs & Spirits   Partner brands   Total
First quarter   130.0   58.1   30.5   218.6
Second quarter   192.5   76.7   25.5   294.8
Total sales   322.5   134.8   56.0   513.4
2015/2016 Financial year                
(€ millions)   Rémy Martin   Liqueurs & Spirits   Partner brands   Total
First quarter 134.3 59.8 29.2 223.3
Second quarter   178.8   70.3   28.4   277.5
Total sales   313.1   130.1   57.6   500.7
2016/2017 vs. 2015/2016                
Reported growth   Rémy Martin   Liqueurs & Spirits   Partner brands   Total
First quarter -3.2% -2.8% +4.5% -2.1%
Second quarter   7.7%   9.1%   -10.2%   6.2%
Total sales   3.0%   3.6%   -2.8%   2.5%
2016/2017 vs. 2015/2016                
Organic growth   Rémy Martin   Liqueurs & Spirits   Partner brands   Total
First quarter -0.5% -0.8% +4.3% 0.0%
Second quarter   9.3%   10.1%   -10.7%   7.4%
Total sales   5.1%   5.1%   -3.1%   4.1%

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