Confirms FY guidance (Il Sole 24 Ore Radiocor) - Paris, 24 Jul - French spirits maker Remy Cointreau said that in the first quarter that ended in June reported sales totaled 217.0 million euros, down an organic 15.6% and 15.7% lower in reported terms reflecting a 0.1% adverse currency effect, due primarily to trends in the Chinese renminbi.

All divisions saw double-digit contractions with Cognac down 12.2% and Liqueurs & Spirits 20.4%.

Sales in the Americas fell sharply due the continued destocking and the APAC region saw a slight contraction reflecting both a high basis of comparison, a sluggish market in China, and worsening consumption in South East Asia. Sales in Japan were upbeat driven by strong momentum. The performance in the EMEA region was mixed reflecting soft consumer trends amplified by phasing effects and a high comparison base.

"In a complex environment with limited visibility in its main markets, Re'my Cointreau anticipates a gradual recovery in sales over the course of 2024-25," it said, confirming its full year guidance.

It noted that in the first half there will continue to be inventory adjustments in the Americas, given the still-negative trend in depletions, a high basis of comparison in the APAC region, and mixed consumption levels in the EMEA region.

"Against this backdrop, Remy Cointreau is determined to use tight cost controls and its value-driven strategy to protect its profitability, while continuing to make the investments needed for tomorrow's growth," it said.

It sees currencies having a negative 5-10 million euro impact on sales and a positive 3-7 million impact on current operating profit.

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(RADIOCOR) 24-07-24 08:56:41 (0206) 5 NNNN