Rémy Cointreau Sees Profits Up 11.8% In First Half
Drinks giant Rémy Cointreau has posted an 11.8% increase in profits in the first half of its financial year, according to accounts just filed.
Sales for the half-year period to 30 September 2017 stood at €544.4 million, which was a 7.0% increase in organic terms. Operating profit stood at €134.1 million, compared to €123.9 million the previous year.
Much of the company’s growth was driven by its House of Rémy Martin division, which saw 15.4% growth in organic terms, 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’, the company said.
Liqueurs & Spirits
Its Liqueurs & Spirits division, however, saw a 4.5% decrease in organic sales, largely as a result of the deconsolidation of Passoã sales since December last year. The division’s brands, which include Mount Gay Rum and Cointreau, saw a 5% increase in the same period.
Current operating profit in the Liqueurs & Spirits division stood at €22.5 million, down 17.5% in organic terms, again as a result of the Passoã deconsolidation, the company said, ‘as well as to the voluntary reduction in lower-end volumes, as part of the strategy to move the Group’s brand portfolio upmarket. Finally, there was a sizeable increase in communication and image investments.’
Elsewhere, Rémy Cointreau saw its operating margin rise to 24.6%, compared to 24.1% in the same period last year.
‘The significant expansion of the gross margin, driven by the outperformance of our exceptional spirits (> 50$), largely offset a double-digit increase in communication and brand image spending, as well as strengthened investment in our distribution network,’ the company said. ‘Consequently, the current operating margin reached 24.6% at the end of September, up 1.1 point in organic terms.’
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.