The turnover for Remy Cointreau in the first quarter of the financial year (April-June 2011) has just been announced and has exceeded analysts’ estimates.
Organic sales (which exclude any effects caused by disposals and acquisitions) are showing a 22.5% increase on the previous year, with a turnover of €198.6 million. The increase has been throughout their portfolio of products, but Remy Martin Cognac has been particularly strong – especially in Asia. These are showing a massive increase of 31.8% over the same period last year. Cognac sales amount to €112 million, up from $90.9 million in April-June 2010.
Remy Martin continues to confirm its strong sales momentum. Not only are the volume of sales increasing, but continual moves upmarket, superior qualities and a dynamic positive pricing strategy are all coming together to push their turnover upwards.
Not surprisingly this has seen a sharp increase in the cost of Remy’s shares – rising as much as €2.70 to €60.90 when the markets opened this morning in Paris. This represents a 4.6 per cent increase.
Other divisions of Remy Cointreau have also experienced solid growth in the US, Europe and Asia. Even the groups troubled Metaxa brand appears to be stabilizing in Europe after a seeing sales nose-dive over the previous two years.
However, Finance Director, Frederick Pflanz, said today “We’re doing fine at the moment. I don’t think the results should be extrapolated for the rest of the year.”
The company has also stated that “although the markets have significantly improved, the overall business environment remains unstable. Significant marketing investment, as well as the efficiency of its distribution network helped growth in the quarter.”