Rémy Cointreau releases half-year results for fiscal 2017/2018
Company reports net sales growth of 6 percent
Rémy Cointreau, Paris, announced half-year results for the period ending Sept. 30, 2017.
The company posted consolidated net sales of 544.4 million euros, with reported growth of 6 percent and an increase of 7 percent on an organic basis (at constant exchange rates and consolidation scope), it reports.
Current operating profit (COP) totaled 134.1 million euros, up 8.2 percent on a reported bases. In organic terms, COP increased by 11.8 percent. A significant expansion of the gross margin was driven by the performance of its spirits and largely offset by an increase in communication and brand image spending, as well as strengthened investment in its distribution network, the company says. Consequently, the COP margin reached 24.6 percent at the end of September, up 1.1 points in organic terms.
Excluding non-recurring items, the group share of net profit rose 17.9 percent on a reported basis to 90.3 million euros, while net margin increased by 1.7 points to 16.6 percent (plus 1.8 percentage points on an organic basis).
Revenue for the House of Rémy Martin saw strong growth in the first half of the year (plus 15.4 percent in organic terms). COP for the House of Rémy Martin totaled 115.5 million euros, up 17.6 percent in organic terms, and current operating profit came out at 31.5 percent, up 0.6 of a point organically.
The decline in liqueurs and spirits sales (down 4.5 percent in organic terms) can be attributed to the deconsolidation of Passoã sales since Dec. 1, 2016. This development concealed strong growth by the division’s brands (plus 5 percent) in the first half, the company says.
The growth of the House of Cointreau was underpinned by solid performance in the United States, as well as development in Greater China and Russia. The House of Metaxa enjoyed impressive growth, and Mount Gay and ST-Remy benefited from the positive trends in their long-standing markets, it says.
The Progressive Hebridean Distillers pursued solid growth, boosted by the development of The Botanist gin, it adds. BI