By Shares in Remy Cointreau have climbed following the company’s reaffirmation of its fiscal 2024 outlook and its anticipation of a rebound in the second half of the year. Despite a decline in sales for the first quarter, the French drinks group remains optimistic about the future.
Sales Drop in Q1
Remy Cointreau reported a drop in sales for the quarter ending in June, due to a normalization of consumption patterns in the United States as expected. The company’s quarterly sales reached 257.5 million euros ($285 million), representing a decrease of 37% YoY and 35% on an organic basis. However, despite this setback, the company experienced strong organic sales growth in China.
Future Prospects
Looking ahead, Remy Cointreau maintains its guidance for flat sales in fiscal 2024, with a notable decline in the first half followed by a robust recovery in the second half. Analysts at Jefferies noted that the company’s performance in the first quarter met expectations and that U.S. depletions only saw a marginal decrease, signaling a positive trajectory.
Remy Cointreau’s shares have responded favorably to these developments, with an initial rise of over 7% and a current increase of 3.3% to EUR150.35.
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