Rémy Cointreau confirms ‘record’ year as travel retail sales soar

By Kristiane Sherry |

Rémy Cointreau is celebrating after posting record full-year financial results.

Paris-based drinks group Rémy Cointreau has confirmed it posted a record performance in its 2022-23 financial year, with sales climbing 10.1% on an organic basis to hit €1,548.5 million/US$1,658.49m.

The company, which owns brands including Rémy Martin Cognac and Bruichladdich Scotch whisky, saw operating profits for the 12 months to 31 March 2023 reach €429.6m/US$460.1m.

The travel retail segment was a strong contributor, posting a “meaningful rebound”, with fourth quarter figures exceeding the same period in 2019-20 by 45%.

Earnings per share climbed 37.5% to €5.79.

While the result defied expectations, the business said it expected a “strong sales decline” in the first half of fiscal 2023-24 due to a “very strong fall” in the US market.

At the same time, the company said it expects to see “strong growth” from the rest of the world, with travel retail expected to return to “similar levels” seen before the pandemic. 

Performance by region and brand

While the Americas showed 2.5% sales growth (all figures on an organic basis) through 2022-23, performance slowed in Q4 as the US normalised.

Europe, Middle East and Africa (EMEA) showed “resilience”, with sales climbing 11% for the year. Eastern Europe was the outlier, with weaker Q4 sales.

Asia Pacific was the stand-out performer, with FY sales soaring 22.7%, with a “very strong” fourth quarter driven by China and travel retail.

Cognac, a major category for Rémy Cointreau, made 7.6% gains, even with 9.3% volume declines as the price mix improved.

“Robust growth” was noted across EMEA and Asia Pacific, while a “slight retreat” was noted in the US, the largest market for the category.

CEO Eric Vallat praised the ‘rising desirability’ of Rémy Cointreau brands.

The Liqueurs and Spirits division, which includes Cointreau, Metaxa and Mount Gay, saw 18.7% gains driven by investment in brand and the increased consumer interest in mixology, the company said.

Sales across the Partner Brands division slipped -5.3%.

‘Confidence and resolve’

“Rémy Cointreau had a record year, and we have increased our advance on achieving on the 2030 strategic roadmap,” said Eric Vallat, Rémy Cointreau CEO. 

“This strong showing confirms the relevance of our value-based strategy, which is underpinned by a ‘Drink less but better’ trend. It also reflects solid gains made in achieving our four strategic priorities and the rising desirability of our brands. 

“With the normalisation of consumption in the United States amplified by a 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. 

“We are heading into the new year with confidence and resolve, and we anticipate a steep second-half recovery in the United States combined with a new year of buoyant growth in the rest of the world, particularly in China.”

 Last month, Rémy Cointreau promoted Fida Bou Chabke to the role of Global Travel Retail CEO, and named Alice Hoffman as its new marketing director for the channel.

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