Rémy Cointreau: First-Quarter Sales 2017/2018 (April 2017 – June 2017)
An excellent start to the year (+8.0%*)
Rémy Cointreau (Paris:RCO) posted sales of €240.2 million in the first
quarter of its 2017/18 financial year, up 9.9% in reported terms.
Organic growth (at constant currency and scope) came out at 8.0%, driven
by the Group brands (+12.3%). Both currency and scope (acquisition of
Westland and Domaine des Hautes Glaces in January 2017) made a
favourable contribution over the period.
The first-quarter momentum was underpinned by a remarkable performance
by the House of Rémy Martin, which benefits from the broad appeal of its
brands and its upmarket strategy. The decline in Liqueurs & Spirits
revenues resulted from the deconsolidation of Passoã sales, which
conceals the strong growth of the division’s remaining brands (+7%). The
trend in Partner Brands sales can be attributed primarily to the end of
the distribution agreement for the champagne brands.
Geographically, Asia Pacific posted an excellent performance in the
first quarter, with brisk business in Greater China and Singapore, as
well as improvement in Japan. The Europe, Middle East & Africa region
(EMEA) achieved strong growth in the quarter, driven by Africa, Russia
and Central Europe, while the Americas region was faced with a
particularly high basis for comparison.
It should be noted that the first quarter does not traditionally make a
significant contribution to annual sales.
Breakdown of sales by division:
|3 months||3 months||Change|
|House of Rémy Martin||156.6||130.0||20.5%||18.7%|
|Liqueurs & Spirits||58.6||58.1||0.9%||-1.9%|
|Subtotal: Group brands||215.2||188.1||14.4%||12.3%|
House of Rémy Martin
The House of Rémy Martin continued its positive momentum in the
first quarter with organic growth of 18.7%. The performance was
generated by the continuation of highly favourable trends in Continental
China and an improved environment in Macao, Hong Kong and Japan. The
EMEA region benefited from a new phase of expansion by the Group in
Africa, while the recovery in Russia was confirmed.
A rich set of initiatives was once again reflected in highly positive
mix benefits over the period: LOUIS XIII launched the limited edition The
Legacy (500 crystal magnum decanters hand-signed by four generations
of LOUIS XIII cellar masters) and Rémy Martin unveiled its limited
edition XO Cannes 2017, available exclusively in Travel Retail. In its
constant quest for innovation, Rémy Martin also launched its
mixed-reality experience, “Rooted in Exception”, with the Microsoft
HoloLens headset in the United States.
Liqueurs & Spirits
The decline in the Liqueurs & Spirits division (-1.9% on an organic
basis) can be attributed to the deconsolidation of Passoã sales from 1
December 2016 (the brand is now managed by a joint venture under the
control of Lucas Bols). This development concealed strong growth by the
division’s brands (+7%) in the first quarter.
The House of Cointreau‘s solid start to the year was fuelled by a
robust performance in its main market, the United States, as well as by
its new growth drivers, Greater China and Russia. The strong momentum of
the House of Metaxa continued in the first quarter, thanks to the
success of the “12 Stars” in Central Europe and improved trends in
Travel Retail. Mount Gay and St-Rémy returned to growth in
the period, led by positive trends for both brands in the Americas.
Lastly, the Progressive Hebridean Distillers (Bruichladdich/Port
Charlotte/ Octomore/The Botanist) confirmed their positive momentum in
the first quarter, boosted by the success of The Botanist gin.
In the first quarter, the decrease in sales (-18.5% in organic terms) is
primarily attributable to the change in the portfolio of partner brands:
the end of the distribution agreement for the champagne brands
(Piper-Heidsieck and Charles Heidsieck) in the EMEA region and in Travel
Retail on the one hand, and the consolidation of Passoã sales, now
distributed by the Rémy Cointreau network on behalf of the joint
venture, on the other hand.
Strengthened by this positive start to the year, Rémy Cointreau confirms
its guidance of growth in current operating profit over the financial
year 2017/18, assuming constant exchange rates and consolidation scope.
Sales and organic growth by business
Sales in first-quarter 2017-18 (April to June 2017)
|Liqueurs & Spirits||58.6||0.4||1.2||57.0||58.1||0.9%||-1.9%|
|Subtotal: Group brands||215.2||2.7||1.2||211.3||188.1||14.4%||12.3%|
Definitions of alternative performance indicators
Rémy Cointreau’s management process is based on the following
alternative performance indicators, chosen for planning and reporting.
The Group management considers that these indicators provide financial
statement users with useful additional information for understanding the
Group’s performance. These alternative performance indicators should be
considered as supplementing those included in the consolidated financial
statements and the resulting movements.
Organic sales growth
Organic growth is calculated excluding the impacts of variations in
exchange rates as well as acquisitions and disposals.
The impact of exchange rates is calculated by converting sales for
the current financial year into the exchange rate of the previous
For acquisitions in the current financial year, the sales of the
acquired entity are not included in organic growth calculations. For
acquisitions in the previous financial year, the sales of the acquired
entity are included in the previous financial year but are included in
organic growth calculations for the current year only starting from the
anniversary date of the acquisition.
For significant disposals, we use data following the application of
IFRS 5, which systematically reclassifies the sales of the sold entity
in “Net profit from activities sold or to be sold” for the current and
previous financial year.
This indicator serves to focus on Group performance common to both
financial years, which local management is more directly capable of
(*) Organic growth is calculated assuming constant exchange rates and