Rémy Cointreau Sees Strong Third-Quarter Rebound, Driven By The U.S.January 22, 2021
Rémy Cointreau’s sales rebounded strongly in its fiscal third quarter through December, rising 25% on an organic basis. Through the first three quarters of the company’s fiscal year, sales were down 1.6% organically to €780.9 million ($950m).
The core Rémy Martin Cognac business jumped 33% to €279 million ($339m) in the third quarter, allowing it to pull even with the prior year for the nine-month period. “This performance was mainly driven by catch-up effects in the United States, where consumption remains very buoyant, and a quickening recovery in Mainland China,” the company noted. According to Impact Databank, Remy Martin VSOP jumped 46% to 1.06 million cases in the U.S. last year, while Remy Martin 1738 increased 73% to 369,000 cases. Rémy’s Liqueurs & Spirits division also posted gains in the third quarter, up 7.2% to €76 million ($92m), driven by growth in the U.S., Australia, and U.K.
Rémy is now anticipating “buoyant organic sales growth in the fourth quarter, albeit less strong than in the third quarter, due to strategic inventory management,” and expects positive organic operating profit growth for the full fiscal year.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.