• Q1 organic sales up 6%
  • Cognac sales climb 11% on China growth
  • Singapore, Japan also strong
  • But Mount Gay rum "soft" amid premiumisation
Remy Cointreaus Cognac unit, House of Remy Martin, put in a strong performance in first quarter results

Remy Cointreau's Cognac unit, House of Remy Martin, put in a strong performance in first quarter results

Cognac drove first quarter sales for Remy Cointreau as the category continued to show strong growth for the French luxury spirits producer.

The company's House of Remy Martin - effectively the company's Cognac business - posted an 11% organic sales jump in the three months to the end of June. The increase, which follows an 18% jump in Q4, helped Remy Cointreau deliver an overall 6% jump in Q1 organic sales.

On a reported basis, currency headwinds dragged first quarter sales down to flat growth, at EUR241.5m (US$283m).

Remy Cointreau First-Quarter Fiscal-2019 - Net Sales by Business

Rémy MartinLiqueurs & SpiritsPartner BrandsTotal
Q1 Fiscal-201713058.130.5218.6
Q1 Fiscal-2018156.658.625240.2
Q1 Fiscal-2019163.557.820.2241.5

Source: Company results

House of Remy Martin

Greater China, Singapore and Japan were the engines of growth for Remy's Cognac unit. Price increases in the Americas and EMEA damped demand in the regions.

Liqueurs & Spirits

The segment, which includes brands such as Cointreau, Metxa and the Botanist gin, was up 3% organically in Q1. Remy flagged "exceptional" growth for the Botanist but said sales for Mount Gay rum and St Remy brand were "soft" because of a strategy to reposition the brands upmarket.  

Partner Brands

As in previous quarters, sales for Remy's partner brands fell (-20%) as the company terminated distribution contracts to focus on its own products.

Outlook

Remy confirmed its full-year outlook of organic operating profit growth.

To read Remy's official results release, click here.

What can the spirits industry learn from Remy Cointreau? - Comment