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Sales up at Rémy Cointreau but organic growth down

Published:  27 November, 2015

Sales at Rémy Cointreau rose to £353 million in the six months to September 30, the company has announced.

The figure represents year-on-year growth of 6.1%.

However, the positive growth was largely attributable to favourable currency conditions.

Organic growth was down 5.9%, the company revealed.

The groups operating profit of £75 million was up 4.7%, but down 7.3% when the benefits of currency fluctuations were stripped out.

Strong sales of Rémy Martin in the Americas were not enough to counteract the brands continuing troubles in the Asia-Pacific region and China in particular.

The brand has been particularly affected by the crack-down on gift-giving in China and other related austerity measures, which at one point saw sales declining by 18.9%.

Chinese wholesalers continue to be cautious, the company reports.

Sales of Rémy Martin fell 3.1% to £220.5 million.

Net sales in the liqueurs and spirits division fell 8.3% to £91.5 million, despite double-digit growth from Islay Spirits brands Bruichladdich and The Botanist.

Metaxa sales fell significantly over the half-year, hit by falling consumption in Greece and Russia and declining sales in travel retail.

The group's figures were in line with expectations. Rémy Cointreau believes it can deliver positive growth in operating profit for the full 2015-16 financial year at constant exchange rates.