© Reuters. FILE PHOTO: Bottles of Remy Martin VSOP cognac, Remy Martin XO cognac and St-Remy XO Brandy are displayed on the Remy Cointreau SA headquarters in Paris, France, January 21, 2019. REUTERS/Benoit Tessier/File Picture
(Reuters) -French spirits maker Remy Cointreau on Friday posted a barely smaller-than-expected decline in third quarter gross sales, helped by a sequential enchancment in the US and main destocking in China forward of the Chinese language New Yr.
Nonetheless, the maker of Remy Martin cognac and Cointreau liquor mentioned its annual gross sales decline would doubtless be on the decrease finish of its earlier outlook vary of 15% to twenty% within the yr by means of March.
Remy was pressured to chop its full-year steering in October amid falling U.S. gross sales following a post-COVID increase, whereas gross sales development in China lagged expectations amid a tricky financial system.
On Friday, it reiterated that it didn’t count on gross sales to return to development within the U.S. earlier than monetary yr 2024/25, and that gross sales development can be tempered by a slower than anticipated financial restoration in post-pandemic China.
United States and China are the group’s two key markets for cognac.
The corporate mentioned its gross sales dropped by 23.5% on an natural foundation to 319.9 million euros ($346.7 million) within the third quarter, which covers the essential Christmas season, forward of analysts’ expectations of 318.6 million in a company-compiled consensus.
Its Europe, Center East and Africa (EMEA) area noticed a pointy decline within the quarter attributable to a mixed influence of unfavourable phasing and inflation curbing consumption. Remy mentioned annual gross sales development within the area would even be moderated by the persistently excessive inflation.
Gross sales of cognac, which makes up a big portion of Remy’s income, have been down 33.9% within the quarter at 197.1 million euros, versus 194.0 million anticipated by analysts.
Remy’s Liqueurs & Spirits division reported quarterly natural development of 4.3%, pushed by good momentum and constructive phasing impact in the US.
($1 = 0.9227 euros)