The Rémy Cointreau Group has reported consolidated sales of €544.4m ($645m) in its first half year period ending 30 September, with reported growth coming in at 6% and an increase of 7% (measured at constant exchange rates).

 

Rémy management said House of Rémy Martin products registered ‘strong growth’ of +15.4% in organic terms in HY1, thanks to ‘the outstanding performance of the Asia Pacific region – driven by Greater China, Singapore and Japan – and solid development in Europe, the Middle East & Africa.

 

GOOD HIGH-END TRAVEL RETAIL SALES

Travel Retail also made a solid start to the year in all regions, notably for our highest-end products’.

 

The company said that this translated into current operating profit up 8.2% to €134.1m ($158.8m) on a reported basis and +11.8% on the organic measure: “The significant expansion of the gross margin, driven by the outperformance of our exceptional spirits largely offset a double-digit increase in communication and brand image spending, as well as strengthened investment in our distribution network.

 

“Consequently, the current operating margin reached 24.6% at the end of September, up 1.1 point in organic terms,” said the company.

 

“Excluding non-recurring items, the group share of net profit rose 17.9% on a reported basis to €90.3m ($106.9m), while net margin increased by 1.7 point to 16.6% (+1.8% on an organic measure).”

 

In addition to the aforementioned House of Rémy Martin portfolio performance, liqueurs and other spirits’ sales declined by 4.5% in organic terms – a result attributed to the deconsolidation of Passoã sales since December 1st, 2016.

 

Having said this, the company added that this factor ‘concealed strong growth by the division’s brands (+5%) in the first half’.

 

US, CHINA AND RUSSIA GROWTH…

Management added: “The growth of the House of Cointreau was underpinned by solid performance in its number-one market, the United States, as well as the brisk development of frontier markets (Greater China and Russia).

 

“The House of Metaxa enjoyed impressive growth, buoyed by the success of its upmarket ’12 Stars’ quality and accelerated travel retail trends in Europe. Mount Gay and ST-Rémy benefited from positive trends in their long-standing markets.

 

“The Progressive Hebridean Distillers (Bruichladdich/Port Charlotte/Octomore/The Botanist) pursued their solid growth, boosted by the remarkable development of The Botanist gin.”

 

 

The company added that the decline in Partner Brand sales (-14.3% in organic terms) was primarily a side effect of changes in the portfolio of distributed brands: The consolidation of Passoã sales (now partially distributed by the Rémy Cointreau network, on behalf of the joint venture) was more than offset by the end of the distribution agreement for the Champagne brands (Piper-Heidsieck and Charles Heidsieck).