Lockdown drinking boosts Remy Cointreau’s outlook
Premium spirits maker Remy Cointreau said on Tuesday it expected mid-year core profit to fall between 35 per cent and 40 per cent, an improvement on previous guidance, as it posted better-than-expected sales, thanks to resilient consumption in the United States and Britain.
The maker of Cointreau liqueur said it had performed remarkably well in Britain, Germany and the United States, despite a slump in duty-free sales and events hit by the coronavirus pandemic, as people made cocktails at home.
House of Remy Martin, which makes the group’s high-end Louis XIII and Remy Martin cognacs and last year brought in the bulk of sales, was worst-hit as revenues fell 39.2 per cent organically – still ahead of the 44.6 per cent slump forecast by analysts.
The group’s liqueurs and spirits division was more resilient, falling just 17.0 per cent, compared to a 37.4 per cent decline analysts predicted, thanks to good performance by Cointreau.
Remy’s brandy, gin and whisky sales all declined as global lockdowns slowed airport traffic and duty-free sales, which makes up a significant portion of these brands’ business.
In early June, the company had forecast a limited decline in second-quarter sales and a fall of 45 per cent to 50 per cent in mid-year current operating profit, followed by a strong second-half recovery, buoyed by China and the United States.
The Paris-based group, which makes upscale cognacs, champagnes and scotch, served sales down 33.2 per cent organically for its first quarter started April 1, beating analysts’ estimate for a fall of 42.5 per cent.