By Joshua Kirby
Remy Cointreau SA said Tuesday that sales for the first half of its fiscal year fell due to the coronavirus pandemic, but that second-quarter sales showed a marked improvement from the first and that operating profit for the six months should be better than expected.
The French drinks maker said organic sales in the six months to Sept. 30 came to 430.8 million euros ($507.1 million), down from EUR523.9 million a year earlier. This represents organic decline of 16%, the company said.
Organic sales in the second quarter amounted to EUR288.5 million, beating forecasts of EUR274.3 million according to a consensus of four analysts' estimates provided by Factset. This represented a 4% decline from the same quarter the previous year, a marked sequential improvement from the 33% on-year drop seen in the first quarter.
Remy Cointreau, which owns the Remy Martin and Louis XIII cognac brands, said the results showed a favorable geographical mix, with the Americas region returning to growth in the second quarter. As such, the company said it is raising its guidance for operating profit for the half-year to a 25%-30% organic decline, from a decline of 35%-40% previously.