- First quarter sales slump 35% to EUR257.5m [US$284.5m]
- Cognac sales hit by “normalisation” and destocking in US
- Company predicts strong recovery in second half of year
First-quarter revenues at Rémy Cointreau fell by more than one-third as robust sales in Asia failed to offset a major contraction in the Americas, caused by strong comparisons and destocking.
The French company, owner of brands including Rémy Martin Cognac, Cointreau orange liqueur and Mount Gay rum, said the 35% reduction in sales was “in line with expectations”, having warned of difficult times ahead in its full-year results announcement.
The three months to the end of June were characterised by steep declines in the Americas and for Cognac, with the latter’s sales falling by 44.7% versus last year.
“This was primarily due to a significant drop in sales in the Americas, hit by the combined impact of an exceptionally high basis of comparison, the group’s focus on significantly reducing inventories, and continued normalisation of consumption,” Rémy Cointreau said.
However, in the APAC region, China registered very strong growth, the company added, thanks to the post-Covid recovery in the on-trade and a strong performance from the Rémy Martin Club expression, as well as a rebound for global travel retail.
Sales in the EMEA region rose in double digits, but the company’s 'Liqueurs & Spirits' division registered an 11.4% revenue fall, which Rémy blamed on a phasing effect linked to price increases, and strong comparisons.
Rémy Cointreau maintained its guidance of sales remaining stable for 2023-24 as a whole, with a steep decline in the US in the first half contrasting with a strong recovery in the remainder of the year.
The company said: “In 2023-24, Rémy Cointreau anticipates strong normalisation of consumption in the US, although trends will nonetheless remain significantly higher than in 2019-20.
“At the same time, the group expects strong growth in the rest of the world, led by major gains in China, a very good showing in EMEA and the rest of Asia, and business similar to levels observed in 2019-20 in travel retail.”
Earlier this month, Rémy Cointreau unveiled a new worldwide marketing activation for Rémy Martin, featuring US singer and performer Usher.
Rémy Cointreau’s official Q1 results announcement.
