(Reuters) – Remy Cointreau’s organic sales more than doubled in the first quarter, the French spirits group said on Tuesday, beating estimates as bars and restaurants reopened in Europe while demand remained strong in China and the United States.
The maker of Remy Martin cognac, which last year bore the brunt of the COVID-19 crisis alongside other premium spirits makers, has taken advantage of China’s faster reopening, buoyant at-home consumption in the United States and rising e-commerce sales.
The group said it expected an “excellent” first half due to the “shipment phasing effects” and structurally better consumption trends in the United States, as well as favourable comparatives after the pandemic-hit year. Orders from the fourth quarter are being shipped only this fiscal year.
“For 2021/22, Remy Cointreau remains confident in its ability to outperform the exceptional spirits sector,” the company said in a statement.
It reported a 105% jump in organic sales to 293.1 million euros ($345.48 million) in the three months ended June 30, compared with a 68% organic growth according to a company-compiled poll of 22 analysts.
This marked a strong recovery from a 33% fall in the same period last year, when sales were hit hard by the closures in travel and hospitality industries.
The organic sales were also 36.5% higher than Remy’s first quarter in the 2019/20 fiscal year.
The Paris-based group, whose upscale spirits can cost thousands of dollars per bottle with custom engravings, said its cognac division saw organic sales rise 114%, making up over two thirds of the sales in the quarter.
Remy Cointreau shares, which last year quickly bounced back from the initial pandemic slump and are now trading at historically high levels, have gained 17% this year.
($1 = 0.8484 euros)
(Reporting by Milla Nissi and Federico Maccioni; Editing by Sherry Jacob-Phillips and Vinay Dwivedi)
