Falling sales and falling share price: Remy Cointreau faces challenges

By: Trademagazin Date: 2024. 07. 25. 10:36

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The French drinks group, Remy Cointreau, reported a significant drop in sales, which also negatively affected the share price. The company’s shares fell by one and a half percent within a day, and this year’s performance so far is not favorable either: the share price fell by almost 40 percent. However, the company’s management remains optimistic and expects a gradual recovery in the remainder of the business year.

Remy Cointreau, maker of Remy Martin cognac and Cointreau orange liqueur, said on Wednesday that sales fell to 217 million euros ($235.5 million) in the quarter to June. This represents a 16 percent drop year-on-year.

Market performance and regional differences

In the Americas, Remy’s sales fell sharply, while Asia-Pacific sales were held back by a slowdown in the Chinese market. In contrast, traffic in Japan was exceptionally brisk. In Europe, the Middle East and Africa, the figures reflected a varied performance, but consumer demand in these regions is also weak as a trend.

Strategic responses and perspectives

Remy Cointreau uses strict cost control and a value-driven strategy to maintain profitability while continuing to invest in future growth. The company continues to expect a gradual recovery throughout the business year ending in March 2025.