Rémy Cointreau Reopens Cognac Production, Anticipating Gradual RecoveryApril 29, 2020
Rémy Cointreau saw sales fall 11% on an organic basis to €1 billion ($1.1b) in its fiscal year ended in March, as the Covid-19 crisis led to a 24% revenue decline in the fourth quarter. Rémy says the situation is likely to lead to a 50%-55% sales drop in the first quarter of its new fiscal year, but added that it’s anticipating a gradual recovery in its second quarter ending in August, and has reopened its Cognac production facility in recent days.
The company’s core Rémy Martin brand slipped 7.5% for the year to €736 million ($799m), as the pandemic cut into previously strong growth in Asia, and U.S. retailers destocked. Rémy’s Liqueurs & Spirits division was down 3% to €262m million ($285m), with the fourth-quarter downturn in Asia offsetting a strong performance in the U.S. for brands including Cointreau, The Botanist Gin, and Bruichladdich single malt Scotch whisky. Rémy says operating profit was down approximately 25% for the year.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning.
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