Remy Cointreau toasts robust end to the year

(Sharecast News) - Remy Cointreau saw sales narrowly pick up over the last year, the French spirits company confirmed on Thursday, driven by improving demand for cognac.

Group sales at the Paris-based firm - which as well as Remy Martin and Cointreau owns Greek spirit Metaxa, Botanist gin and Mount Gay rum, among others - fell 5% to �935.3m in the year to April end, but edged up 0.2% on an organic basis, the first improvement since 2023.

The uplift was driven by a strong end to the year, with fourth-quarter cognac sales sparking 15.5% on the back of "very strong" demand in Asia and China in particular. That helped offset a modest decline in the Americas, which Remy Cointreau attributed to tough comparatives in the US and a phasing effect in Canada.

Sales in liqueurs and spirits softened 0.1%, following weaker trading in EMEA amid a "muted consumption environment".

Overall, fourth-quarter sales rose 8.9%, with volumes down 2.4% but a 11.3% price-mix effect.

Recently-installed chief executive Franck Marilly, who took over the role in June last year, has pledged to turn the drinks maker around after it was hit by soaring living costs and tariffs in the US and China, two of its most important markets.

As at 1345 BST, the Paris-listed shares were largely unchanged, have pared back earlier losses.

Jefferies, which has a 'buy' rating on the stock, said: "While the external environment is tough, there are some early signs of improvement in US, given revitalisation of VSOP, and the company continues to outperform in China given favourable portfolio/channel mix. The transformation plan is underway."