Rémy Cointreau sales decline slows, shows signs of stabilising

By Erin Smith

Published: 22 January, 2015

Rémy Cointreau's sales are still declining based on its third quarter financial results, but falls are slowing signalling that the company may finally be stabilising following a Cognac crash that hit China.

Today's results show third quarter sales totalled €740.9 million through 31 December, 2014 which is down 4.1% compared to the same time last year, but is a significant improvement over where the company was a year ago.

Organic sales have dipped just 1% for Q3 for the 2014/2015 financial year, which is consistent with a further slow-down in declines sales seen in the first half of the financial year. The first half of the 2014/2015 year saw sales decline 5.7%.

At this time last year, the Paris-based conglomerate announced sales growth declined by 18.9% primarily due to the crack down on austerity measures and luxury gift-giving in China and the company's over exposure to the market.

According to today's figures, the Rémy Martin brand continues to struggle and is hampering the company's ability to fully recover, with sales declining 9.3% in the first three quarters, compared to the liqueurs and spirits arm of the business which grew 5.8% during the same period. Liqueurs and spirits have shown positive growth consistently throughout the year primarily due to success in the Americas, Australia and Japan.

Despite the decline in sales for Rémy Martin the brand did see an increase in shipments to China, which again is a positive indication that things are finally stabilising for the company.

The stock (RCO:FP) was trading up on the news that sales were stabilising.

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