PARIS (Reuters) – Rémy Cointreau reported on Thursday a fall in its turnover and current operating profit in the first half of its 2023-2024 financial year due to the difficulties encountered in the American market.
The spirits group had already reported at the end of October a deterioration in its market conditions, particularly in the United States where it is facing a strong destocking effect. He then had to significantly lower his annual financial objectives.
During the first half, its turnover fell by 22.2% on an organic basis and its current operating profit fell by 43%. As a result, the current operating margin fell to 26.6% compared to 36.8% in the same period a year earlier.
“Our half-year results were strongly impacted by the American market which is facing economic headwinds: significant stock level linked to a strong normalization of consumption, unprecedented promotional intensity and rising interest rates,” commented in a press release general director Eric Vallat.
“This is why we decided to implement cost reduction measures to mitigate the short-term effects,” he adds, specifying that visibility is “still limited” over the coming months.
Rémy Cointreau plans to reduce its costs by 100 million euros this year, of which 25 million euros have already been achieved in the first half.
For the entire financial year, it confirms its objectives lowered last month: it forecasts a decline in turnover in organic data of between 15% and 20% and a “controlled” drop in current operating margin in data. organic.
On the Paris Stock Exchange, Rémy Cointreau shares initially opened in the red before quickly turning upwards. At 10:08 a.m., the stock climbed 1.42% to 110.1 euros after gaining more than 7%.
“As expected, the first half results are highly penalized and the recently communicated guidance is confirmed,” commented in a note Sarah Thirion, analyst at Midcap, who reaffirms her purchase recommendation on the stock.
(Written by Blandine Hénault, edited by Zhifan Liu)
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