LONDON (Reuters) -Remy Cointreau reported a wider-than-expected 15.6% decline in first-quarter gross sales on Wednesday, as difficulties hurting its U.S. cognac division unfold to its liqueurs and spirits unit.
Analysts had anticipated the corporate, which makes Remy Martin cognac and Cointreau liquor, to publish a 13.6% decline in natural gross sales.
Remy had already warned that its first half was more likely to be powerful amid ongoing issues in america and a sluggish financial system in China – its two key cognac markets. Cognac makes up round 70% of Remy’s gross sales.
Nonetheless, the cognac division carried out forward of analyst expectations, posting a 12.2% natural fall versus the 17.4% forecast by analysts.
Remy’s liqueurs and spirits division, nonetheless, endured a 20.4% decline, greater than double the 8.2% fall analysts had anticipated. The unit homes manufacturers resembling Cointreau, The Botanist gin and Bruichladdich whisky.
It attributed the decline to sharp destocking in america specifically, the place wholesalers and retailers have additionally been chopping again on Remy’s cognac inventory, hurting its efficiency.
The corporate left its full-year steerage unchanged.
