just On Call - "Transitional" Remy Cointreau takes focus away from Asia
Remy Cointreau released its full-year results today
The interim CEO of Remy Cointreau has admitted the company depends too much on sales in Asia and will instead seek a “geographical balance”.
François Hériard Dubreuil, who is also Remy's chairman, said in a conference call today (5 June) that the company is in a “transitional” year. He said more emphasis will be placed on Cognac sales in the US, which he claimed “(are) really carrying us” in the wake of sales declines in China.
“We have recently seen that there has been too great a dependency on Asia,” Dubreuil said. (Now) the positioning is better because we are balancing better.”
Dubreuil was speaking after Remy posted heavy full-year sales and profits falls partly due to anti-gifting measures in China, as part of a wider government crackdown on corruption. Remy Martin's global sales fell 21%, with operating profits for the Cognac brand down 44%. The falls were partly offset by “momentum” in the US, Japan, Russia and Africa, Remy said.
In the past fiscal year, the Americas has grown its share of total Remy Martin sales by nine percentage points to 36% while Asia-Pacific's share fell 13 percentage points to 47%. Europe, Middle East and Africa's share increased by four percentage points to 17%.
Dubreuil, who took over as interim CEO after Frédéric Pflanz suddenly stepped down in January, hinted that Remy will welcome a new chief executive within three months.
Sitting alongside CFO Luca Marotta, Dubreuil told analysts: “I would imagine that in the next presentation, there will be three of us here, but I can't say more than that for the moment because we have to wait for things to take place according to the rules.”
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