Remy Cointreau SA, a French spirits manufacturer, stated on Friday that it predicts sales to stay unchanged in the 2023-2024 financial year, with weak demand for cognac persisting in the United States during the first half.
According to the producer of Remy Martin cognac and Cointreau liquor, group sales are expected to experience a “significant decline” during the six months ending on September 30th. This is due to a sharp drop in sales in the United States and difficult comparisons.
The company stated that a rebound is expected in the second half of the year, mainly due to a sharp rise in sales in the United States, beginning in the third quarter. In a statement, Remy Cointreau also confirmed its forecast for robust organic growth in current operating profit for the 2022-2023 fiscal year, which ended on March 31st, as it reported sales growth higher than anticipated.
The company’s group sales for the period amounted to 1.54 billion euros ($1.70 billion), showing an organic increase of 10.1%. This slightly exceeded the company’s compiled consensus of 9.9% growth. Business in China has shown a significant recovery since February, following the lifting of Covid restrictions.
