Spirits giant Rémy Cointreau said that it is arresting some of the declines seen across its portfolio, as the group posted a 4.0% decline in sales in the second quarter of its financial year.
This compares to a 33.2% decline in the first quarter, meaning that over the half-year period, the group posted total sales of €430.8 million, down 17.8% on a reported basis.
The group said that cognac sales were down 2.5% in the second quarter, compared to an 18.1% decline in the first half of its financial year, thanks to what it said was 'excellent momentum' in the US and a recovery in mainland China.
Lower than usual duty-free sales and the slow reopening of the on-trade channel in Southeast Asia, Africa and South America have impacted its performance, however.
The group's Liqueurs & Spirits division was down 11% in the second quarter, compared to a 17% decline in the first half – this segment is more exposed to the on-trade channel, the group said, with bars and restaurants remaining closed in many markets.
Sales By Geography
On a geographical basis, the Americas region posted a 'marked return to growth' in the second quarter, seeing sales down 0.7% over the first half.
Asia-Pacific, traditionally a strong market for duty-free sales, saw a decline of 27.4% during the first half, while the Europe, Middle East & Africa region posted a decline of 31.6% in the first half.
Rémy Cointreau said that it remained 'confident in its ability to emerge stronger from the crisis', anticipating current operating profit to be down 25% to 30% on an organic basis in the first half of its financial year.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.