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Remy Cointreau's H1 sales slide as Cognac slump continues

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  • H1 net group sales fall 15.5% to EUR471.8m (US$603.6m)
  • Remy Martin sales down 15.4% to EUR276.8m
  • Organic group sales up slightly excluding Greater China
  • Liquors & Spirits sales up 7.6% to EUR129.5m

Remy Cointreau's Cognac woes in China continued to drag down overall sales in its first-half, but the French firm saw good growth elsewhere.

Remy released its H1 results today

Remy released its H1 results today

Net group sales fell by 15.5% to EUR471.8m (US$603.6m) in the six months to the end of September, the Paris-headquartered firm said today. Remy Martin sales, which account for more than half of the company's overall revenues, were down 15.4% to EUR276.8m. On-going destocking in China was blamed for the slide. 

The Cognac brand's performance was an improvement on Q1, when sales fell by 19%.

Remy's group reported sales were also hit 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 EUR48m off sales.

Excluding those two factors, and excluding Greater China, group sales were “slightly positive”, Remy said.

In June, 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.

Looking ahead, Remy confirmed its 2014/15 targets of delivering positive organic growth in both sales and current operating profit.

Remy's share price jumped 5% when trading started this morning, but has since fallen back to its opening level.

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

For a round-up of Remy's brand performance, click here.


Sectors: Company results, Spirits

Companies: Remy Cointreau

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