Rémy Cointreau First-Quarter Sales Slip as Asia Pacific Declines

The spirits maker says the growth in the value of sales to retailers in the region accelerated.
By Laura Board ,

French spirits maker Remy Cointreau (REMYF) on Wednesday reported a 2.1% decline in first-quarter sales to €218.6 million ($240.8 million) as Asia Pacific sales slipped as the company raised prices.

Quarterly sales stagnated on an organic basis after above-forecast 10% growth in the final quarter. Sales of all but its partner brands declined. Sales of its flagship Remy Martin product fell 3.2% to €130 million. The €218.6 million sales total was in line with analysts' expectations.

The first quarter is the company's quietest and the Asia Pacific decline, for which the company didn't provide numbers, comes after it in June reported "significant growth" from the region in the second half. It said first-quarter Asian sales "dipped as expected." However, depletions - or sales to retailers - accelerated "especially in value terms" as the group raised prices.

Remy Cointreau said the "Americas region once again had a very good first quarter, buoyed by cognac,while the Europe, Middle East and Africa (EMEA) region enjoyed growth driven by its emerging markets."

It also reiterated that it expects fiscal 2017 operating profit growth when stripping out currency fluctuations. On announcing full-year figures in June the company had declined to give sales forecasts.

Shares in the company closed down 0.4% at €76.64 on Tuesday. They have risen almost 14% in the past year.

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