FRANCE: Q2 drags Remy Cointreau H1 sales further down
- H1 sales fall by 3.6% to EUR558m (US$754.7m)
- Sales in three months to end of September drop by 5.3%
- Q1 sales were down by 2.3%
- Struggles in China continue for Remy Martin
Remy Cointreau released its H1 sales results earlier today
A tough second quarter has sent Remy Cointreau's half-year sales further into the red.
The spirits producer said earlier today (17 October) that sales in the six months to the end of September came in 3.6% down on the corresponding period a year earlier, in organic terms, at EUR558m (US$754.7m). The half-year fall followed the Q1 decrease of 2.3%, reported in July.
For the second quarter, Remy Cointreau said that sales were down by 5.3% to EUR294.4m.
The half-year results were hampered by a 10.4% fall in sales from the company's flagship brand, Remy Martin Cognac.
"The growth (for Remy Martin) achieved in the US and Europe since the beginning of the financial year did not offset the impact of the slowdown in China," the company said, noting that the Cognac brand declined by 8.3% organically in Q2.
Remy Martin has been affected by the introduction late last year of anti-extravagance measures in China by the country's authorities.
The rest of the company's liqueurs and spirits brands were healthy in the half-year, with sales jumping by 10.2%. Cointreau and Metaxa were highlighted as performing well in the half-year.
Looking ahead, the company said that it expects Remy Martin "to remain adversely affected by certain measures taken in China and by the level of retail inventories".
"In an economic environment which continues to lack visibility, Remy Cointreau is determined to pursue its strategy of moving its brands upmarket and create long-term value," the company said.
To read Remy Cointreau's official statement, click here.
For an analysis of the company's H1 sales, click here.
Rémy Cointreau punches above its weight in spirits, having established itself as a major global player in cognac despite its relatively small size compared to Pernod Ricard and LVMH. China has been it...
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