Rémy Cointreau Sees Tough Q1, But Expects Growth For Full YearJuly 18, 2014
It continued to be tough sledding for Rémy Cointreau in the three months through June, its fiscal first quarter, in which the French drinks group posted organic sales down 5.7% to €215 million ($291m). Destocking in Asia—where China’s spirits category has slowed—is still hampering the Rémy Martin brand, whose sales fell 15% to €121 million ($164m). Rémy noted that its flagship Cognac is seeing positive momentum from its superior qualities in the U.S. market, but, in addition to the China slowdown, is still battling challenging economic and competitive conditions in Western Europe.
Meanwhile, Rémy’s Liqueurs & Spirits division saw sales grow 11% to €63 million ($85m)—led by Cointreau, Metaxa and a doubling of sales for Bruichladdich—and its Partner Brands unit, including Piper- and Charles Heidsieck Champagnes, was up 9% to €31 million ($42m) organically. That performance, however, excludes the effect of Rémy’s loss of Edrington Group brands in the U.S. this spring—including the departure of the Edrington business, the Partner Brands segment’s sales fell 45%. Despite the continuing challenges, Rémy says it expects positive growth in sales and operating profit for the full year on an organic constant currency basis.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.