Posted Apr 28, 2023, 10:05 AM
(Updated with details, background, stock price)
PARIS, April 28 (Reuters) – Rémy Cointreau announced on Friday that it expects stable organic sales during the 2023-2024 financial year and anticipates weak demand for cognac in the United States in the first semester.
In a press release, the cognac manufacturer Rémy Martin said it expected a “marked decline” in turnover in the first quarter and particularly a “very sharp drop” in the United States.
A strong recovery will follow in the second half, driven by a sharp rebound in activity in the United States from the third quarter, adds Rémy Cointreau.
According to Credit Suisse analysts, the full-year revenue target is “well below” consensus at +6.4% and “reflects management’s caution about ‘normalization’ in the US, which has been a major concern for investors”.
On the Paris Stock Exchange, Rémy Cointreau shares fell 6.9% to 177.90 euros at 08:00 GMT.
For its 2022-2023 financial year ended March 31, the group confirmed its objective of strong organic growth in its current operating profit (COI) after reporting better-than-expected revenue for the period, with a marked recovery in activity in China since February following the lifting of COVID-19 restrictions.
The cognac producer’s annual revenue came in at 1.55 billion euros, up 10.1% organically, while analysts were expecting around 9.9%, according to a consensus compiled by the society. (Report Dominique Vidalon, written by Kate Entringer, edited by Blandine Hénault)
2023-04-28 08:05:21
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