Rémy Cointreau : Consolidated Sales for the Three Months (April – June 2013)
PARIS -- July 18, 2013
Rémy Cointreau’s (Paris:RCO) sales for the first quarter of the financial year
were €263.7 million, an organic decrease of 2.3% compared with the previous
year’s historically strong level of sales.
As anticipated, in the first quarter sales of Rémy Martin were adversely
affected due to one-off factors in China. Conversely, in the US all divisions
saw a significant sales increase, and Europe proved quite resilient in a
challenging economic environment.
3 months to 3 months to % Change
(€ millions) 30.6.12
30.6.13 Published Organic*
Rémy Martin 149.3 173.8 (14.1) (12.9)
Liqueurs & Spirits 57.8 50.0 +15.5 +13.0
Sub-total Group brands 207.1 223.8 (7.5) (7.1)
Partner brands 56.6 47.8 +18.4 +20.5
Total 263.7 271.6 (2.9) (2.3)
*on a like-for-like basis
Rémy Martin – In the first quarter, and against particularly strong
comparatives, the House of Rémy Martin reported an organic decline of 12.9%.
As previously announced, Rémy Martin was affected in Asia by the significant
inventory levels at retailers due to a Chinese New Year that fell short of
expectations. However, Rémy Martin was able to take full advantage of the
momentum in the US market, achieving double-digit growth there thanks to a
positive price/mix effect combined with qualitative innovations. European
sales were stable thanks to good performances in Russia and the UK.
Liqueurs & Spirits – The division as a whole recorded an excellent performance
with 13% organic growth. Once again, Cointreau reported a significant
increase, particularly in the US and Western Europe, its two principal
markets. Mount Gay has begun to roll out its new range in its key markets.
Metaxa and St-Rémy continued to grow. Bruichladdich, which has been integrated
into the division’s portfolio since 1 September 2012, contributed a positive
0.7% to the Group’s overall sales growth.
Partner brands – The 20.5% increase in sales of Partner brands was due to good
sales growth in the US.
On 31 May 2013, the Edrington Group announced that the contract relating to
the distribution of its brands by Rémy Cointreau in the US would expire on 31
On 10 June 2013, Rémy Cointreau announced that it had signed an agreement with
the Nordic group, Altia, in respect of the transfer of Larsen Cognac,
including the brand, industrial and commercial assets and inventories required
to enable the entity to operate as a going concern.
A dividend of €1.40 will be proposed at the General Meeting to be held on 24
September 2013. Payment will be made as of 1 October 2013.
Rémy Martin is likely to remain adversely affected by continued inventory
destocking in the second quarter ending 30 September 2013. Nevertheless, the
Group remains confident in the medium and long-term in Asia and particularly
in China, and considers that the slowdown is due to measures focusing on
conspicuous behaviour, which does not detract in any way from the brand’s
At the end of the quarter under review, traditionally of little significance,
Rémy Cointreau intends to continue resolutely with its upmarket strategy,
supported by targeted investment consistent with the dynamics of the
respective markets in which the brands operate, whilst continuing to implement
strict cost control.
Frédéric Pflanz, Tel: 00 33 1 44 13 44 34
Joëlle Jézéquel, Tel: 00 33 1 44 13 45 15
Caroline Sturdy, Tel: 07775 568 500
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