Spirits shine for Rémy Cointreau

Rémy Cointreau’s liqueurs and spirits division was the force behind the company’s modest sales growth in the year to March, especially its Bruichladdich Scotch whisky brand.

Bruichladdich was one of the group’s star performers (Photo: Bruichladdich)

Rémy Cointreau’s sales for the year to 31 March totalled €965.1 million (£690m), representing growth of just 0.6%, which the company claims was held back by destocking in Asia.

However, improved sales in the US and Europe – especially for its Scotch whisky brand Bruichladdich, which doubled in sales globally – helped profits improve well. Operating profit has grown to €156.0 million (£112m), an organic growth of 13.5%, and net profit is up 18%.

Bruicladdich forms part of the company’s strong liqueurs and spirits portfolio, which overall grew 7.2% in sales. The performance of other brands in the category, such as Cointreau’s US sales and Metaxa’s impact in Central Europe, have also been credited for the positive figures.

The company’s Cognac continues to struggle, with sales dropping 1.9% in the financial year due to continuing problems in Asia. Although, an improved performance for Rémy Martin in America helped temper any further the decline in the category. Cognac in Africa, Japan and Central Europe recorded double-digit growth for the period.

Looking ahead, Rémy Cointreau said in a company statement that it  “remains confident in its acceleration strategy of moving upmarket.”

It said, “The group anticipates growth in its current operating profit, at constant exchange rates and scope, over the course of the 2015/16 financial year.”