PARIS (Reuters) – French spirits maker Remy Contreau on Friday warned it no longer expected sales to gradually recover in full year 2024/25 after it reported a worse-than-expected fall in quarterly sales amid worsening market conditions in China.
The company producing Remy Martin cognac and Cointreau liqueur said it now expected a double-digit fall in organic sales for the year, also impacting its profit margin.
Remy reported sales of 318 million euros ($344.14 million) in the second quarter 2024/25, down by 16.1%. Analysts had predicted a 15.4% decline.
A tough economy is hitting consumer demand in China while excessive inventories in the United States weigh on producers.
Cognac makers like Remy also face additional headwinds in China after Beijing imposed temporary anti-dumping measures on brandy imports from the European Union earlier this month.
($1 = 0.9240 euros)
(Reporting by Dominique Vidalon, editing by Tassilo Hummel)