Rémy Cointreau Bullish On The U.S. After 13% Profit JumpJune 3, 2021
Rémy Cointreau reported a 13% leap in organic operating profit to €236 million ($287m) for its fiscal year ended in March this morning, adding that it’s seeing a strong start to its new fiscal year, “underpinned by very favorable base effects, shipment phasing effects, and new, structurally more buoyant consumption trends in the United States.”
Rémy’s sales were up 2% to €1 billion ($1.22b) in the 12 months through March, driven by a 3.7% boost in its Cognac unit, which saw organic profit increase 11.3% to €221 million ($269m). The Rémy Martin brand recently earned Impact “Hot Brand” honors for its 2020 performance in the U.S., with depletions soaring 51% to 1.5 million cases. Portfoliomate Cointreau, which aired an ad during the Super Bowl this year, was also named a Hot Brand after increasing 15% to 345,000 cases.
To further its momentum, the company says it plans to “up its investments in communication to support its brands through the recovery and boost their medium-term growth potential.” Looking longer-term, Rémy Cointreau cited the rise of mixology and at-home consumption, the increasing consumer turn toward high-end spirits, and strong growth in online sales as among the factors expected to drive its performance in the coming years. The company is aiming to achieve a gross margin of 72% and a current operating margin of 33% by 2030, and become a net zero carbon emitter by 2050.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.