© Reuters. FILE PHOTO: Bottles of Cointreau, the orange-flavoured triple sec liqueur, are displayed within the Carre Cointreau on the Cointreau distillery in Saint-Barthelemy-d’Anjou, close to Angers, France, February 8, 2019. REUTERS/Stephane Mahe/File Picture
By Dominique Vidalon
PARIS (Reuters) -Shares in Remy Cointreau fell as a lot as 4% on Thursday after the French spirits maker mentioned it was “cautiously optimistic” concerning the Chinese language market the place COVID-19 continues to set off lockdowns.
The maker of Remy Martin cognac and Cointreau liqueur posted a stronger-than-expected 27% bounce in first-half working revenue however caught with its steerage for a slower second half as consumption developments return to extra regular ranges.
CEO Eric Vallat mentioned he was “cautiously optimistic” about enterprise prospects in China forward of the Chinese language New 12 months as on-again, off-again lockdowns clouded the outlook.
China on Thursday logged a report rise in COVID infections.
Vallat added he was assured in China within the longer-term resulting from sturdy urge for food there for its premium cognacs in addition to its whiskies.
“In China, we’re ensuring we’re versatile, up to now we’ve got tailored efficiently to the scenario,” he mentioned.
Remy Cointreau shares had been down 1.4% at 1058 GMT having fallen as a lot as 4%.
“If, after two distinctive years, the development is in direction of the normalisation of consumption developments, in all probability till Q1 23-24 and if China stays difficult, Remy Cointreau continues to be an distinctive worth for the spirits sector,” MidCap analysts mentioned in a word.
The corporate has seen two years of outstanding progress because the pandemic accelerated a shift in direction of premium drinks, cocktails and e-commerce as folks drank costlier drinks at dwelling.
Working revenue for the six months to Sept. 30 got here in at 319.3 million euros ($333.1 million), outperforming a company-compiled consensus of 306 million euros.
Working revenue at its cognac division, which accounts for practically 90% of group revenue, surged 36% to 299.7 million euros within the first half.
The corporate expects “low double-digit gross sales progress” for the total yr with a slower tempo of progress within the third quarter earlier than selecting up once more the fourth, Vallat advised reporters.
The corporate had beforehand reported a 21.1% bounce in first-half gross sales, boosted by a restoration in demand for its high cognac manufacturers in China through the nation’s Golden Week holidays.
($1 = 0.9587 euros)
