Remy Cointreau SA fell after the French distiller reported weaker-than-expected sales in its fiscal fourth quarter as US cognac demand cooled, and gave an outlook for stable revenue this year.
(Bloomberg) — Remy Cointreau SA fell after the French distiller reported weaker-than-expected sales in its fiscal fourth quarter as US cognac demand cooled, and gave an outlook for stable revenue this year.
Revenue amounted to €243.8 million ($269 million) in the period, the Paris-based company said Friday. That missed the €257.1 million average estimate of analysts surveyed by Bloomberg.
The stock dropped as much as 9.5% in early Paris trading.
Remy Cointreau reiterated its full-year guidance for the fiscal year that ended March 31. But for the current year that began in April, Remy said it sees revenue remaining stable on an organic basis. It added that US sales are expected to fall sharply in the first half, and then rebound strongly in the second.
The results underscore slowing US demand for premium spirits amid high inflation and economic uncertainty. At the same time, drink makers expect the key Chinese market to keep recovering after the country re-opened following the end of strict Covid-Zero policies.
Consumption of premium spirits, particularly cognac, surged during the pandemic as drinkers in the US and Europe upgraded their high-end booze consumption at home. Now US-driven demand is “normalizing,” Remy said Friday, but will remain above 2019 levels.
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