Remy Cointreau’s operating profit fell by 43% in the first half of the year – Kommersant

French alcohol producer Remy Cointreau presented results first half of the 2023/24 financial year, which complement those published at the end of October data on sales for the same reporting period. With organic sales (that is, excluding mergers and acquisitions) falling by 22.2% to €636.7 million, organic operating profit in the half-year fell by 43% to €169.1 million. Operating margin fell by 9.8 percentage points, up 26.6%. Net profit fell by 44.3% to €113 million.

As the company notes, the results were significantly affected by the situation in the American market. Significant stocks of Remy Cointreau alcoholic beverages have accumulated there due to a decrease in consumption after the end of the pandemic. The company’s reporting calls this a “sharp normalization of consumption.” In addition, the manufacturer points to the negative consequences of rising interest rates in the United States. At the same time, in the second of the two most important markets for Remy Cointreau – China – sales are growing very quickly, which is why there is a shortage of the company’s products. Therefore, the manufacturer expects normal performance in this market in the fourth quarter.

Taking all this into account, the management of Remy Cointreau confirmed the forecasts for the full financial year made at the end of October. Organic sales are expected to decline by 15-20%. The company’s shares fell 9% after the publication, and then recovered the decline and are trading with an increase of 0.18% relative to the opening price.

Alena Miklashevskaya