Asia and travel retail behind Remy rise

Rémy Cointreau’s revenue for the year ended 31 March 2011 grew 12%, driven by demand for Cognac in Asia and travel retail.

Cognac sales rose 20% to €486 million while liqueurs and spirits, reflecting a decline in sales of the Greek brand Metaxa, was little changed at €208m. Sales in the soon-to-be-sold Champagne division rose 7.2% to €103.6m.

All geographic regions contributed to this growth, particularly Asia and travel retail, where demand remained “very strong”, the company said. “This performance reflects the strength of the group’s premium brands and the expertise of its distribution network,” it added in a statement.

Chief executive officer Jean-Marie Laborde said: “This performance confirms the group’s strategic orientation. It reflects the dynamism of our major brands with strong added value.

“Our committed strategy focuses on innovation and targeted investment in our key markets.

“Rémy Cointreau has, again, demonstrated a genuine capacity for growth by combining the power of its brands and the efficiency of its distribution network. We will ensure a continuing increase in value and implement a qualitative approach to the markets.”

Rémy Martin Cognac repeated strong growth in its strategic markets and, once again, reported double-digit growth during the year of 19.8% – up 12.1% organically.

The pace of growth was sustained in Asia, most notably in China, while Europe was driven by Russia but also by western Europe.

Cointreau, with substantial sales in Europe, and Mount Gay Rum posted growth, but did not entirely offset the decline in sales of the Greek brand Metaxa and a more modest year for Passoa in Europe.

On 28 February the Group announced that it had entered into exclusive negotiations with EPI in relation to the possible disposal of its Champagne division. Over the course of the financial year, the Champagne division continued to benefit from the recovery in demand, with strong growth particularly in Europe, the UK and Russia, as well as in the US.

Rémy Cointreau said: “All these elements enable us to confirm sound growth in current operating profit (excluding non-recurring items) at the end of March 2011.

“The highly favourable change in financial debt at the end of March will result in a significant improvement in the debt/EBITDA ratio.”

“The group will continue to implement its policy of improving the price/mix effects and increase investment in its key brands and markets, all combined with rigorous cost controls.”

Alan Lodge, 27.04.2011