Remy Cointreau posts wider-than-expected Q1 sales decline as US woes continue By Reuters

LONDON (Reuters) -Remy Cointreau reported a wider-than-expected 15.6% decline in first-quarter sales on Wednesday, as difficulties hurting its U.S. cognac division spread to its liqueurs and spirits unit.

Analysts had expected the company, which makes Remy Martin cognac and Cointreau liquor, to post a 13.6% decline in organic sales.

Remy had already warned that its first half was likely to be tough amid ongoing problems in the United States and a sluggish economy in China – its two key cognac markets. Cognac makes up around 70% of Remy’s sales.

However, the cognac division performed ahead of analyst expectations, posting a 12.2% organic fall versus the 17.4% forecast by analysts.

Remy’s liqueurs and spirits division, however, endured a 20.4% decline, more than double the 8.2% fall analysts had anticipated. The unit houses brands such as Cointreau, The Botanist gin and Bruichladdich whisky.

It attributed the decline to sharp destocking in the United States in particular, where wholesalers and retailers have also been cutting back on Remy’s cognac stock, hurting its performance.

The company left its full-year guidance unchanged.