Rémy Cointreau Posts Strong Full-Year Numbers, Expects U.S. Turnaround Later This Year
June 1, 2023Rémy Cointreau has posted sales up 10% organically to €1.5 billion ($1.66b) for its fiscal year ended in March, with current operating profit growing 16% to €430 million ($460m). The French drinks group’s sales are up 44% compared with pre-pandemic, while profits have soared by 77%.
Sales in the core Cognac division grew 7.6% on an organic basis (+41.3% compared with 2019-20), despite a 9.3% decline in volumes, boosted by a strong price/mix effect. The Liqueurs & Spirits division saw sales jump 19%, led by brands like Cointreau, The Botanist, and Bruichladdich.
“This strong showing confirms the relevance of our value-based strategy, which is underpinned by a ‘Drink less but better’ trend,” said Rémy Cointreau CEO Eric Vallat. “With the normalization of consumption in the United States amplified by high basis of comparison in the first half and our drive to reduce inventories we expect sales and profitability to hold steady in 2023-24 on an organic basis.”
Rémy noted that it expects a sales decline in the first half of the new fiscal year, “reflecting a very strong fall in the United States and high bases for comparison,” but believes the situation will turn around in the second half, “driven by a sharp rebound in the U.S. starting in the third quarter.”—Daniel Marsteller
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