Paris — French drinks group Remy Cointreau reported
higher annual sales on Wednesday, helped by recovering sales in China
and robust demand in the US, and maintained its financial targets for
higher annual profits.
Several technical factors held back fourth-quarter sales growth but the rebound in China continued in the second half of the year, with a sharp acceleration in private consumption and some improvement in the travel retail sector, Remy said.
The company, which makes Remy Martin cognac and Cointreau liquor, said annual sales had risen 4.2% from the previous year to €1.095bn.
Like-for-like growth was 4.7%. Remy said it was sticking to its target of growth in current operating profit over the financial year 2016-17, assuming constant exchange rates.
In the fourth quarter alone, sales showed like-for-like growth of 0.9%, compared with a 9% rise in the third quarter. Growth was held back by technical factors, ranging from the earlier timing of the Chinese New Year, the deconsolidation of the Passoa liquor to the end of the Piper & Charles Heidsieck champagne distribution contract.
Cognac sales, which account for more than half the company’s revenue, rose 6.2% in the quarter. This followed a 22.3% jump in the third quarter, when anticipated shipments ahead of the Chinese New Year in February had boosted sales.
Similar to other spirits makers, including larger rivals Diageo and Pernod Ricard, Remy Cointreau has faced pressure on sales of cognac and other luxury goods in China following a government crackdown on luxury gift-giving and personal spending by Chinese civil servants.
The crackdown has led to significant changes across the group, with Remy Cointreau moving more towards the US, which now contributes 38% of group sales compared with around 20% for China.
Reuters
Several technical factors held back fourth-quarter sales growth but the rebound in China continued in the second half of the year, with a sharp acceleration in private consumption and some improvement in the travel retail sector, Remy said.
The company, which makes Remy Martin cognac and Cointreau liquor, said annual sales had risen 4.2% from the previous year to €1.095bn.
Like-for-like growth was 4.7%. Remy said it was sticking to its target of growth in current operating profit over the financial year 2016-17, assuming constant exchange rates.
In the fourth quarter alone, sales showed like-for-like growth of 0.9%, compared with a 9% rise in the third quarter. Growth was held back by technical factors, ranging from the earlier timing of the Chinese New Year, the deconsolidation of the Passoa liquor to the end of the Piper & Charles Heidsieck champagne distribution contract.
Cognac sales, which account for more than half the company’s revenue, rose 6.2% in the quarter. This followed a 22.3% jump in the third quarter, when anticipated shipments ahead of the Chinese New Year in February had boosted sales.
Similar to other spirits makers, including larger rivals Diageo and Pernod Ricard, Remy Cointreau has faced pressure on sales of cognac and other luxury goods in China following a government crackdown on luxury gift-giving and personal spending by Chinese civil servants.
The crackdown has led to significant changes across the group, with Remy Cointreau moving more towards the US, which now contributes 38% of group sales compared with around 20% for China.
Reuters
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