1H17/18 - Solid results driven by cognac and ongoing luxury strategy
Rémy Cointreau has released solid results for 1H17/18 (period ended 30 September 2017), broadly in line with the Bloomberg consensus. As commented following the early sales release on 17 October, the group’s brands posted good organic sales growth in Q2 (+7.6%) and H1 (9.6%). This was especially driven by APAC (28% of sales) and more specifically Greater China, while the group’s other two regions EMEA (30% of sales) and Americas (41%), also performed well with Russia, UK and Travel Retail. Rémy Martin (cognac), the most profitable division representing 82% of EBIT, continued outperforming. This was again driven by favourable market dynamics on top of the group’s premiumization strategy, which involves increasing the share of high-end cognacs.
Remy Cointreau is an operator in the global wines and spirits market. Co. produces, markets and distributes Cognac, Liquors and Spirits and other non-group brand alcoholic beverages. Co.'s primary cognac brand is Remy Martin, produced from Petite Champagne and Grande Champagne eaux-de-vie. Co.'s principal liquor and spirits include the following brands: Cointreau, Passoa, Metaxa, St Remy, and Mount Gay. Co. also operates a distribution network that handles products from partners and third-party companies. Major non-group products distributed by Co. include Scotch Whiskies (Edrington brand), Champagne (Piper-Heidsieck and Charles Heidsieck brands) and Vodka.
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