FRANCE: Remy Cointreau sees Q2 sales slow but H1 still shines

• H1 group sales rise by 13.3%
• Group sales in three months to end of September up by 5.3%
• Remy hails rises despite high comparatives a year earlier
• Tough Europe fails to hinder as US and Asia "satisfactory"

Remy Cointreau has posted a double-digit increase in H1 sales, despite seeing growth weaken in its second quarter.

The France-based spirits company said earlier today (18 October) that sales for the six months to the end of September came in 13.3% up on the corresponding period a year ago, at EUR595.8m (US$780.4m). After a 24.4% leap in sales in its first quarter, however, growth in Q2 slowed to 5.3%.

Remy flagged up the "more moderate growth" in the second quarter, but noted that, in the first six months of the previous fiscal year, "strong growth was also achieved".

Flagship Cognac brand Remy Martin delivered a 20.1% jump in H1 sales, after soaring by 37.8% in Q1, with the US posting double-digit growth in the six-month period. Europe was described as "mixed" for the brand, while Asia and Russia were noted for performing well.

Of the other liqueur and spirits brands, which collectively reported a 3.5% sales lift,  Cointreau "gained ground" in the US and Europe, while St Rémy and Passoa performed well. Metaxa, however, was "adversely affected" by the economic situation in its main matket of Greece.

"In a more uncertain economic environment, particularly in Europe, Remy Cointreau continues to implement its value strategy with targeted investment behind its brands," the firm said. "Nevertheless, the group continues to closely monitor developments in major markets and maintains strict cost control."

Sales from the Bruichladdich Distillery, which Remy acquired last month, were not detailed specifically in the results.

As of 1040 BST this morning, Remy's shares were down by 6% at EUR81.95.

The company will release its Q3 sales update in January.

To read the company's official release, click here.