Rémy Cointreau Eyes Second-Half Recovery In U.S., China
October 20, 2020Rémy Cointreau’s sales declined 4% in the three months through September, a marked improvement from the 33% dropoff in the previous quarter, with its total fiscal first-half sales down 16% to €431 million ($509m).
Rémy Cointreau’s core Cognac business, led by Rémy Martin, fell 18% to €305 million ($360m) for the half-year, but fared much better in the most recent quarter, “primarily thanks to excellent performance in the United States, where our brands—traditionally consumed at home—enjoyed a highly sustained demand, in the favorable context of the move upmarket,” according to the company.
While the recovery has been much slower in duty free and emerging markets like Southeast Asia, Africa, and Latin America, Rémy believes its fiscal second half will “benefit from a strong recovery buoyed by the United States and Mainland China.” The company raised its guidance slightly to a 25%-30% operating profit decline for its first half, up from 35%-40% previously.—Daniel Marsteller
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