By Mauro Orru
Remy Cointreau cut its sales forecasts for fiscal 2024 after sales plunged in its second quarter as Americans drink less cognac.
The Paris-based owner of Remy Martin cognac posted sales of 379.2 million euros ($400.6 million) for the three months to the end of September, down 17% in reported terms and 11% organically. Cognac sales fell to EUR261 million, down 24.5% on a reported basis and 18% organically.
The group said market conditions deteriorated in the U.S., citing a fiercely promotional environment combined with high interest rates that cut distributors’ financing capacity. The company had forecast a rebound in sales for the fiscal third quarter, but it now expects that this may happen in fiscal 2025.
Remy Cointreau is projecting a decline between 15% and 20% in sales on an organic basis in fiscal 2024, below previous guidance of stable sales.
Write to Mauro Orru at mauro.orru@wsj.com
