Rémy Cointreau Expects 26% Fourth-Quarter Decline Due To CoronavirusApril 3, 2020
In a trading update, Rémy Cointreau said it expects revenues for the fiscal year through March to fall about 12% on an organic basis, including a 26% drop in the fourth quarter, owing to the effects of the coronavirus outbreak. Operating profit is expected to decline by 25%-30% organically.
Rémy says it’s “currently witnessing some improvements in Greater China, where most shops have reopened, as well as some restaurants and bars,” but added that it anticipates its Chinese wholesalers to destock for several months before they start replenishing, as well as “an expected deterioration of trends in the EMEA and Americas regions over the next few weeks (with on-trade activity largely stalled).”
Still, Rémy expressed optimism that it will rebound strongly from the crisis, noting its solid balance sheet and cash reserves of around €300 million ($326m) on top of estimated needs, as of the end of March.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.