Subscribe Login
DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5
Drinks

Hong Kong Protests Weigh On Rémy Cointreau's Q3 Sales

By Steve Wynne-Jones
Share this article
Hong Kong Protests Weigh On Rémy Cointreau's Q3 Sales

French spirits group Rémy Cointreau posted a worse-than-expected 11.3% fall in third quarter like-for-like revenues, as demand for cognac in Hong Kong was impacted by protests in the region.

Slow stock replenishment in the United States also impacted Rémy's third quarter performance.

These negative factors more than offset a stronger performance in mainland China, where the Lunar New Year, a crucial moment for the drinks industry in that country, starts on Jan. 25.

This year's event will, however, take place amid rising worries over a coronavirus outbreak in the country.

Sales Decline

Group sales reached €290.2 million in the three months to Dec. 31, showing a like-for-like decline of 11.3%. This compared with average expectations for a 6% decline in a company-compiled poll of 16 analysts.

ADVERTISEMENT

Cognac sales alone fell 7.6%, worse than analysts' expectations for a 2.3% decline.

In December, Richemont's Eric Vallat replaced Valerie Chapoulaud-Floquet as Rémy CEO. Chapoulaud-Floquet had been the architect of Rémy's push towards higher-priced spirits to drive profit margins.

The publication of the annual 2019/20 results on June 4 will be the occasion to provide a new strategic roadmap, added Rémy.

News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.