• YTD net sales down 12.3% to EUR845.7m
  • Q3 sales fall by 19%
  • Remy blames Chinese market
Remy blamed China for the slowdown

Remy blamed China for the slowdown

Remy Cointreau has blamed continuing problems in China for a double digit slip in third-quarter sales that has left its year-to-date performance lagging.

The French group, which previously issued a full-year profits warning in H1 results, today (21 January) posted a 12.3% drop in net sales to EUR845.7m (US$1.1bn) for the nine months to the end of December. On an organic basis, the fall was 9.4%.

Third-quarter results showed an acceleration in declines, with Q3 sales down 19%. Q2 sales dropped by 5% and Q1 sales were down 2%.

Remy said the slowdown was “primarily in the Chinese market”. Its Cognac brand, Remy Martin, which accounts for about half of overall sales, has in the past financial year recorded a “cumulative organic decline” of 18.3% as anti-gifting measures in China damaged sales, Remy said.

“The campaign to promote morality in China is expected to continue to adversely affect the consumption of ultra-premium products and no significant recovery can be expected due to the Chinese New Year,” the group said.

In other markets, Remy said the US and Japan recorded “genuine growth”, while Europe continued to be “resilient”.

This month, the CEO of Remy Cointreau, Frédéric Pflanz, said he was stepping down from the position, only three months after he was appointed. Pflanz cited personal reasons for the move.

Remy's share price slipped in early trading today but has since recovered and at CET1100 was 2.6% above yesterday's close.

To read Remy's full trading statement, click here.