Rémy Cointreau is going through a difficult period, with a significant drop in sales in the third quarter of its offbeat financial year. Cognac sales in China and the United States declined sharply. Despite a slight increase in sales in the United States, the spirits giant’s forecasts have been revised downwards.
The spirits group’s sales fell significantly in the third quarter of its offbeat financial year, which ended last December. Rémy Cointreau is in fact marked by a pronounced decline in Cognac sales in China, according to a press release issued on Friday.
In the first nine months of 2023-24, Rémy Cointreau reported sales of 956.6 million euros, down 22.7% organically. Between October and December, sales totaled 319.9 million euros, down 26.9% on a reported basis and 23.5% on a like-for-like basis.
The Cognac division saw its sales fall by 37.2% on a reported basis (-33.9% on an organic basis), to 197.1 million euros. Rémy Cointreau attributes this decline to “strong promotional intensity” and “continued destocking” in the United States.
Meanwhile, sales in the Liqueurs & Spirits division rose by 4.3% organically in the third quarter, thanks to strong growth in the United States.
Although sales to wholesalers showed an improvement on the previous quarter, they still fell short of expectations.
Inventory reduction in China
In China, Rémy Cointreau carried out a “significant reduction in its (cognac) inventory levels ahead of preparations for the Chinese New Year”.
“The Americas region recorded a slight decline in third-quarter sales, highlighting an improvement on the second quarter, while the APAC region posted a marked decline in shipments,” the group said.
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Featured photo : ©Rémy Cointreau
