French spirits group Remy Cointreau has today stuck to its full-year 2023/24 forecast for lower sales and profitability, saying the key US market would not see a sales rebound before the next financial year.
The maker of Remy Martin cognac and Cointreau liqueur reiterated it expects 15%-20% decline in organic sales.
It also said its current operating margin would see a "contained decrease" thanks to a cost-cutting plan of around €100m, of which €25m have already been achieved in the first-half.
Operating profit for the six months to September 30 came at €169.1m, an organic 43% fall, in line with expectations for a 43.4% decline in a company-compiled poll of 16 analysts.
The company already reported first-half sales fell 22.2% to €636.7m.
"Our first-half results were heavily impacted by developments in the US market, which has faced cyclical headwinds, including high inventories linked to a sharp normalisation of consumption, an unprecedented promotional environment and rising interest rates," CEO Eric Vallat said in a statement.
"Against this backdrop, we are staying the course, convinced that our value-driven strategy remains underpinned by favourable medium and long-term trends," he added.
Remy Cointreau also confirmed all its financial targets for 2029-30.
