PARIS (Reuters) – Spirits maker Remy Cointreau on Friday cut its sales and profit outlook for the 2023/2024 fiscal year, citing a slower-than- expected recovery in the United States amid worsening market conditions.
The maker of Remy Martin cognac and Cointreau liquors said it now expected organic sales to fall by 15-20%, having previously forecast stable sales.
It also now expected a “contained” decrease in current operating profit margin thanks to cost cutting measures. It had previously forecast a stable margin.
Sales for the first half of its fiscal year came in at 636.7 million euros ($672.74 million), marking a like-for-like fall of 22.2%, below analyst expectations of a 21.2% decline.
Cognac sales alone reached 416.1 million euros, a like-for-like decline of 30.1%.
Remy Cointreau’s fiscal year starts on April 1 and ends on March 31.
($1 = 0.9464 euros)
(Reporting by Dominique Vidalon, editing by Tassilo Hummel)
