Rémy Cointreau sales declined 32.8% in Q1

21 July, 2020

Rémy Cointreau suffered a 32.8% year-on-year sales decline in the three months to June 30 as a result of the coronavirus pandemic.

The group was hit by mass on-trade closures around the world and the slump in global air traffic. Sales decreased 32.8% on a reported basis and 33.2% on an organic basis to €150.1 million in Q1.

Cognac sales from the House of Rémy Martin declined 39.2% year-on-year in the first quarter. The group said sales held up well in the United States and China, but it felt the impact of on-trade closures and a slump in duty-free sales.

The firm’s liqueurs and spirits division proved more resilient, with Q1 sales down just 17% on an organic basis. The House of Cointreau actually managed to achieve slight sales growth thanks to a huge uptick in sales in the United States, Germany and the UK, where consumption of at-home cocktails caused demand to spike.

Mount Gay, Metaxa, St-Rémy, The Botanist and the firm’s whisky brands all declined, mainly due to the drop in duty-free sales. Partner brands were also down 21.1% on an organic basis, as they are heavily exposed to Western Europe.

Rémy Cointreau anticipates Q2 declines to be even steeper, and it now expects operating profit to be down 35% to 40% for the first half of the 2020/21 financial year (the six months to September 30). However, that is better than previous guidance of a 45% to 50% decline, which is a result of its better than expected Q1 performance.

The firm said it expects to see a strong recovery in the second half of the financial year, driven by the United States and Mainland China.





Digital Edition

Drinks International digital edition is available ahead of the printed magazine. Don’t miss out, make sure you subscribe today to access the digital edition and all archived editions of Drinks International as part of your subscription.

Comment

La'Mel Clarke

Service isn’t servitude: the skill of hosting

La’Mel Clarke, front of house at London’s Seed Library, looks at the forgotten art of hosting and why it deserves the same respect as bartending.

Instagram

Facebook