• Q1 net sales down 18.5% to EUR214.8m (US$290.7m)
  • End of Edrington contract in the US takes EUR27m off sales
  • Remy Martin sales down 19% due to continued destocking in Asia
Remy has seen sales drop markedly in past quarters

Remy has seen sales drop markedly in past quarters

Remy Cointreau has posted another sharp sales drop in first-quarter results after falling Cognac sales in Asia and the loss of a distribution deal in the US.

The French group's net sales fell by 18.5% to EUR214.8m (US$290.7m) in the three months to the end of June, it said today (18 July). Sales of Remy Martin decreased more markedly, by 19% to EUR120.8m. The Cognac has now lost about a third of its sales since Q1 in 2012 before government anti-gifting measures in China depressed high-end spirits sales.

It is the second first quarter in a row that sales have dropped, after the company saw a 13% fall in last year's Q1 .

Last month, Remy posted a sharp decline in full-year sales and profits partly due to the government's measures in China. The falls came after the firm had issued a warning of a stark slide in profits, when it released its full-year sales results in April.

Remy today also said sales were affected by unfavourable currency exchange rates and the termination of a US distribution deal with Edrington, which came into effect on 31 March. The company estimates the loss of the contract took an extra EUR27m off sales.

On a more positive note, Remy's liqueurs & spirits division saw sales climb by 8% to EUR62.6m.

The company, meanwhile, confirmed its expectations of positive full-year sales growth excluding currency effects and the loss of the Edrington contract.

The market reacted favourably to Remy's results today, with morning trading boosting the company's shares by 4.4%.

To read the company's full results, click here.