Premium spirits maker Rémy Cointreau has said that it expects mid-year core profit to fall by between 35% and 40%, 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 Rémy Martin, which makes the group's high-end Louis XIII and Rémy Martin cognacs and last year brought in the bulk of sales, was worst-hit, as revenues fell by 39.2% organically - still ahead of the 44.6% slump forecast by analysts.
Liqueurs And Spirits
The group's liqueurs and spirits division was more resilient, falling by just 17.0%, compared to a 37.4% decline that analysts had predicted, thanks to a good performance by Cointreau.
Rémy'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% to 50% 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, saw its sales decrease by 33.2% organically for its first quarter beginning 1 April, which beat analysts' estimate for a fall of 42.5%.