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Jan. 24, 2020, 2:03 a.m. EST

Remy Cointreau sales fall, suspends guidance ahead of new roadmap

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By Cristina Roca


Getty Images
A salesperson places on the shelf the limited-edition bottle of Remy Martin Louis XIII cognac in a special decanter with a diamond embedded in the stopper and priced at more than USD8,000 dollars at the duty free transit mall in Changi International Airport in Singapore 11 October 2005.

Remy Cointreau SA said Friday that third-quarter sales fell sharply, and that it was holding off on its previously-issued guidance in favor of a new strategic roadmap to be unveiled later this year.

The French spirits maker /zigman2/quotes/206802273/delayed FR:RCO +0.05%  posted sales of 290.2 million euros ($321.3 million), down from EUR321.5 million a year before and significantly missing analysts’ expectations of EUR309 million, according to a consensus estimate by FactSet.

Sales for the quarter declined organically by 11%, with sales falling in all divisions.

The company’s House of Remy Martin cognac business, which accounts for the bulk of the group’s sales, was hit by falling tourism in Hong Kong, slow stock replenishment by U.S. retailers and a negative impact from changes in its distribution network, mainly in Europe, offsetting strong performance in China, the company said.

The maker of Cointreau said it “has decided to hold off on the previously provided annual and mid-term objectives” following a leadership change, and will present a new strategic roadmap during annual results reporting on June 4. Last month, Eric Vallat replaced Valerie Chapoulaud-Floquet as Remy Cointreau’s chief executive. The company had previously guided for its current operating profit to remain stable on an organic basis for fiscal 2020.

/zigman2/quotes/206802273/delayed
FR : France: Euronext Paris
92.75
+0.05 +0.05%
Volume: 337,808
Feb. 27, 2020 5:35p
P/E Ratio
31.26
Dividend Yield
1.78%
Market Cap
€4.62 billion
Rev. per Employee
€596,239
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