Rémy Cointreau posts 8.7% organic sales growth in third quarter

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French spirits giant Rémy Cointreau has posted organic growth of 8.7% in its third quarter to take its sales for the first nine months of the year up 8.1% to €919.4m.

After 7.7% organic sales growth in the first half, the third quarter growth of 8.7% “confirmed the group’s sustained momentum”. The earlier timing of the Chinese New Year in 2019 helped add 1 percentage point of growth in the third quarter.

Sales of €919.4 million in the first nine months of its 2018/19 financial year were up 6.7% in reported terms and up 8.1% in organic terms at constant exchange rates.

The group said the overall sales growth has been driven by “remarkable” growth in its group brands, which are up 10.3% in the first nine months, as well as the House of Rémy Martin (up 13.1%).

Growth was driven the success of its brands in the Asia-Pacific region and in the United States.

Both regions “demonstrated excellent momentum over the period, and particularly in the third quarter”. However, the end of partner brand distribution agreements continued to weigh on Europe, the Middle East and Africa.

Its liqueurs & spirits division (up 2.3% in the nine month period) saw stronger growth in the third quarter, while partner brands continued to decline.

Rémy Cointreau also confirmed its full year profits guidance.

Shares fell 2.3% in early trading to €100.90.

Morning update

Pet specialist retailer Pets at Home grew revenues over the Christmas period by 6.3% with retail revenues up 5.5%.

Group revenues in the 12 weeks to 3 January were up 6.3% to £237.2m, with retail revenyes up 5.5% to £213.4m, including online revenues up 41.5% to £19m.

Group like-for-like revenues were up 5.1%, with retail like-for-like revenue growth of 4.7% and vet Group like-for-like revenue growth of 9.1%.

It said the UK pet care market remains resilient and the strength of its proposition meant it continued to take retail share in the period. It added that its retail price position remains competitive and the majority of price investment is now complete.

The group said that results remain in line with expectations and it restated guidance for full year underlying profit before tax of £80m-£85m.

CEO Peter Pritchard commented: “Momentum in Retail accelerated over the festive period, culminating in the biggest trading day of our entire history on the Saturday before Christmas. Our omnichannel business delivered exceptional performance, benefitting from investments made earlier in the year, including a new mobile website.

“This resulted in 4.7% like-for-like growth in Retail, an impressive 11% growth on a two year basis. In such a challenging climate, this performance was only made possible through the hard work of our colleagues across the business.

“We are working closely across the Group to maximise our assets and data as a pet care business, delivering initiatives that are resulting in an even better experience for customers. With the Executive Team appointments now complete, I know that we enter 2019 with growing momentum and we are well placed to deliver on our plans and commitments.”

On the markets this morning, the FTSE 100 has edged down 0.3% so far this morning to 6,950.3pts.

Sainsbury’s (SBRY) is back up 2.3% to 279.3p after yesterday’s falls, with Ocado (OCDO) up 2.1% to 904.4p, Marks & Spencer (MKS), up 1.7% to 291.2p and Majestic WINE (WINE) up 3.1% to 278.5p.

Fallers so far today include Finsbury Food Group (FIF), down 1.8% to 81p and Just Eat (JE), down 0.8% to 657.2p.

Pets at Home is up 7.2% to 134.5p.

Yesterday in the City

The FTSE 100 opened the week flat at 6,970.6pts amid the ongoing chaos around UK Brexit plans.

The supermarkets were amongst the poorest FTSE 100 performers, with Sainsbury’s (SBRY) down 1.8% to 273p on growing fears its merger with Asda is running into significant obstacles.

Sainsbury’s was joined by Tesco (TSCO), which fell 1.7% to 220.7p, Marks & Spencer (MKS), down 1.1% to 286.4p and Morrisons (MRW), down 0.9% to 228.5p.

Other fallers included Distil, down 8.2% to 2.25p, McColl’s (MCLS), down 4.7% back to 62.4p and C&C Group (CCR), down 2.3% to €3.15.

Risers yesterday included Majestic Wine (WINE), up 3.9% to 270p, Nichols (NICL), up 3.5% to 1,620p, Glanbia (GLB), up 3.2% to 16.51 and FeverTree (FEVR), up 2.1% to 2,762p.

Just Eat was up 0.7% to 662.8p on the surprise news of the departure of its CEO.