Remy Cointreau, the renowned French drinks group, reported a significant decline in sales for the first quarter of fiscal 2024. The decrease can be attributed to the continued normalization in U.S. consumption patterns and an extraordinary performance during the same period last year. Despite this downward trend, the company remains confident in its full-year outlook.
Sales from April to June totaled €257.5 million ($285 million), a notable decrease from €409.9 million recorded in the corresponding period of the previous year. When considering organic sales, a 35% decline becomes evident.
Remy Cointreau acknowledged that their first-quarter results were within expectations. The significant decrease is mainly due to the exceptionally strong sales figures from the previous year and the company’s ongoing efforts to reduce cognac inventories in the U.S. Additionally, the more normalized consumption patterns can also account for the decline.
Cognac sales experienced the most substantial dip, falling by 45% on an organic basis. Meanwhile, the liqueurs and spirits division saw an 11% organic decrease. Geographically, sales for the first quarter significantly dropped in the Americas but showed growth in Asia-Pacific and Europe, the Middle East, and Africa.
Despite the challenging start to fiscal 2024, Remy Cointreau maintains its outlook for the year ahead. The company anticipates sales to decline in the first half of the fiscal year but expects recovery in the second half. Furthermore, they foresee a continuation of normalized consumption patterns in the U.S.
Remy Cointreau is a leading name in the beverage industry and excels in delivering exceptional spirits to discerning consumers worldwide.