PARIS(Reuters) – Remy Cointreau said first-half operating profit fell less-than-feared despite lower sales, thanks mostly to cost cuts, offering some light relief for the embattled spirits maker facing tariffs in its key United States and Chinese markets.
The maker of Remy Martin cognac and Cointreau liqueur, which last month dropped hopes for a quick recovery in sales, predicted organic sales would decline by between 15% and 18% in the 2024/25 full year, with a current operating profit margin of between 21% and 22% on an organic basis.
Remy reported operating profit of 147.3 million euros ($155.30 million) for the first six months of its fiscal year 2024/25 which ends March 31. This marked a like-for-like fall of 17.6%, which was lower than expectations of a 20.6% decline in a company-compiled poll of 15 analysts.
($1 = 0.9485 euros)
(Reporting by Dominique Vidalon; Editing by Sudip Kar-Gupta)