Remy Cointreau Sales Surged in Q3

Remy Cointreau has reported 25.1% sales growth for the final three months of 2020.

The blowout quarter means that group sales are now down by just 1.6% on an organic basis for the first nine months of its 2020/21 financial year.

Sales for the first half of the year fell 16.4% as a result of the Covid-19 pandemic, but the group enjoyed a strong rebound in Q3.

Cognac sales increased 33.1% in the third quarter, driven by huge demand in the United States and a quickening recovery in Mainland China.

The group’s liqueurs and spirits division, which includes Cointreau, Mount Gay, House of Metaxa, St-Rémy and The Botanist, saw 7.2% sales growth in Q3, with the United States, Australia and the United Kingdom leading the charge.

The Americas region is now showing strong growth for the first nine months of the financial year. Asia Pacific has been buoyed by the performance in Mainland China and Australia, but sales are still down overall.

The Europe, Middle East and Africa region enjoyed a sequential increase in Q3, but Remy Cointreau said it was hit hard by on-trade closures. It reported that only the UK has seen dynamic at-home consumption since the start of the pandemic.

The group expects buoyant organic sales growth in Q4, and it remains confident of delivering positive organic profit growth for the full financial year. It believes forex issues will dent the performance slightly, causing a hit of between €2 million and €8 million on profits.