FRANCE: Cognac lifts Remy Cointreau FY sales

China's thirst for premium Cognac has powered Remy Cointreau to a sales rise in its fiscal full-year, despite a tough time for Champagne and a distribution overhaul.

Net sales for the 12 months to the end of March rose by 13% to EUR807.8m (US$1.1bn), compared to EUR714m for the previous year, Remy Countreau said today (22 April).

Strong demand for Cognac in Asia drove the increase, with Remy Martin sales up 28% for the year on a like-for-like basis, to EUR405.7m.   

Champagne sales slid by more than 23% for the year, to EUR96.7m from EUR125.9m, said the group.

All business divisions benefited from a lift in the final three months of the year, as distributor destocking in key markets reduced. Group sales reached EUR219m for the fourth quarter, double the previous year's total of EUR109.7m.

"In a very unsettled environment, this performance confirms the relevance of the Group’s strategy and the effectiveness of our commercial restructuring," said Remy Cointreau CEO Jean-Marie Laborde.

Remy left the Maxxium global distribution partnership at the beginning of the fiscal year.

The group announced growth in like-for-like operating profits, without releasing figures.

However, it warned of operating losses in Champagne. "The group is currently taking difficult, but necessary, steps to be in a position to rapidly restore the profitability of this division," it said.