Remy Martins sales fell by 20.8%

Remy Martin's sales fell by 20.8%

Today (5 June), Remy Cointreau posted a significant drop in full-year sales and profits after a weak showing in China. Here, just-drinks takes a closer look at the company's performance by brand in the 12 months to the end of March.

Remy Martin

Sales fell by 20.8% to EUR551.2m (US$750.3m) because of “weak sales in China in the context of a transforming spirits market”, Remy said. “This situation should not mask the brand’s momentum in the US, Japan, Russia and Africa,” the company added. Operating profits for the brand fell 44% to EUR125.4m. The operating margin for the year was 22.8%, compared with 30.1% the prior year.

Liqueurs & spirits

Sales grew by 3.3% to EUR237.3m. The performance “reflected a slight decline in Cointreau sales” and double-digit growth for Metaxa and Mount Gay. St Rémy’s was in growth but Passoa was “adversely affected” by tough trading in Europe and Bruichladdich “continued its expansion” within the group’s network. Operating profits fell by 21.2% to EUR37.1m, partly due to increased advertising and promotional investment over the second half of the year, Remy said. The operating margin was 15.6%, compared with 18.9% the previous year.

'Partner Brands'

Sales grew by 6.1% to EUR243.1, including EUR103m from the Edrington Group brands in the US. The Edrington partnership ended on 31 March. Partner brand performance was boosted by Scotch whisky and Champagne brands distributed in the US, and spirits brands distributed in Belgium and the Czech Republic, Remy said. Operating profits totalled EUR8.7m - including EUR3m attributable to the Edrington Group brands in the US - compared with EUR4.2m the previous year.