French drinks group Rémy Cointreau is expecting total operating profit to fall between 25% and 30% in its 2019/2020 fiscal year, due to the impact of the coronavirus pandemic.
In a statement on the impact of COVID-19 on its business, Rémy Cointreau said that revenue for the 2019/2020 fiscal year ending March 2020, had decreased 12%, due to a 26% downturn in sales during the fourth quarter of its financial year.
Signs Of Improvement
Despite the low sales figures, the group said there had been improvement in greater China, as shops and some restaurants and bars reopened.
However, the company predicted that it would take several months for Chinese wholesalers to clear existing stocks before beginning to replenish supplies.
In addition, the continued deterioration of the travel retail sector in the Europe, Middle East and Africa and Americas regions, has resulted in the group anticipating a greater decline in the first quarter of the 2020/2021 fiscal year, than it did in the fourth quarter of 2019/2020.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Elizabeth Schroeder. Click subscribe to sign up to ESM: The European Supermarket Magazine