French spirits producer Rémy Cointreau has had an excellent financial year 2021-22, with profits rising 42 % to 334 million euros. The group, which in addition to its namesakes Rémy Martin and Cointreau is also known for Greek Metaxa and Scottish Bruichladdich, benefited from both volume growth and higher prices.
The more expensive, the better
The story is starting to become familiar: luxury brands are not slowed down by the succession of crises affecting the world. Chinese and American customers, in particular, are becoming increasingly fond of spirits – and in these markets the rule is: the more expensive, the better. The French group was therefore able to lift its sales by almost a third in the latest financial year, to 1.31 billion euros.
The liqueurs & spirits division recorded a 32 % growth, mainly thanks to an enormous increase in volume. Cognac recorded a 26 % increase in turnover, but here the growth was mainly due to higher prices. The operating margin also improved significantly (from 23.4 % to 25.5 %) and thus the profit also rose sharply: + 42 % to 334 million euros.
The French company is also facing the new financial year with great confidence. After all, unlike many other manufacturers, luxury brands can raise their prices more easily and thus pass on the costs of rising inflation. As a result, sales should once again increase by double digits, thanks to the hoped-for ending of the lockdowns in China. The group also sees many opportunities for itself in the longer term: after all, the pandemic has taught people to enjoy high-end products, it says in a press release.