By Andrea Figueras
Remy Cointreau posted a reject in sales and earnings for the first half of fiscal 2024 due to high inventories and rising interest rates in the U.S. market.
The French distiller booked current operating profit of 169.1 million euros ($185.5 million) in the six months to Sept. 30, which was 43% lower on year organically. This reflected a decrease in sales that was partially offset by a reduction in overhead costs, the company said on Thursday.
The operating margin was 27%, compared with 37% in the year-earlier period. Net profit decreased 44% to EUR113 million.
Sales for the first half fell 22% organically to EUR636.7 million. Cognac first-half sales fell 30% on an organic basis, while sales in the Liqueurs & Spirits division were steady, it said.
The company said it implemented cost-cutting measures to mitigate short-term effects.
The maker of Remy Martin cognac confirmed its recently-downgraded sales guidance for fiscal 2024 and anticipates a reject between 15% and 20% on organic basis.
Looking ahead, it remains confident that it will accomplish its 2029-30 targets of a gross margin of 72% and a current operating margin of 33%.
Write to Andrea Figueras at andrea.figueras@wsj.com
