PARIS (Reuters) – Remy Cointreau said on Wednesday it now expected the decline in full year 2024/25 group sales to be close to 18% on an organic basis, at the lower end of its guidance target, citing lack of visibility on the timing of a recovery in demand in the United States and worsening market conditions in China.
This was after the maker of Remy Martin cognac and Cointreau liquor posted a smaller than expected decline in third quarter sales, due to weakness in its key U.S. and Chinese markets where potential tariffs could add to the spirits maker’s woes.
Remy Cointreau said its sales dropped by 21.5% on an organic basis to 254.1 million euros ($265.25 million) in the third quarter, compared with analysts’ expectations of a 23.3% decline in a company-compiled consensus.
Sales of cognac, which makes up the bulk of Remy’s revenue, were down 22% in the quarter at 155.7 million euros, versus a decline of 27.6% expected by analysts.
($1 = 0.9579 euros)
(This story has been corrected to fix the consensus figures in paragraphs 3 and 4)
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)
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