© 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 Photo
(Reuters) – French spirits maker Remy Cointreau on Friday posted a barely smaller than anticipated decline in third quarter gross sales, citing a sequential enchancment within the United States and main destocking in China forward of the Chinese New Year.
Remy was pressured to chop its full-year steerage in October amid falling U.S. gross sales following a post-COVID growth, whereas gross sales development in China lagged expectations amid a tricky economic system.
On Friday, it reiterated that it didn’t anticipate gross sales to return to development within the U.S. earlier than monetary 12 months 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.
While confirming its forecasts for the 12 months by means of March, the group mentioned the drop in gross sales was more likely to be on the decrease finish of the 15% to twenty% vary introduced in October.
The maker of Remy Martin cognac and Cointreau liquor mentioned its gross sales dropped by 23.5% on an natural foundation to 319.9 million euros ($346.7 million) within the third quarter, beating analysts’ expectations of 318.6 million in a company-compiled consensus.
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 optimistic phasing impact within the United States.
($1 = 0.9227 euros)