By Adria Calatayud
Remy Cointreau expects a sales decline in fiscal 2024 at the steeper end of its previous forecast after third-quarter sales took a hit from intense promotional activity in the U.S. cognac market and a slower-than-expected economic recovery in China.
The French distiller said it now expects sales for the year ending in March to fall by close to 20% on an organic basis, having previously anticipated a decline of between 15% and 20%.
The company continues to forecast a contained deterioration in profitability thanks to a cost-cutting plan that is estimated to save it 100 million euros ($108.5 million) in the current fiscal year.
Sales for the quarter ended December were EUR319.9 million , down 27% on the year-earlier period, Remy Cointreau said. On an organic basis, sales fell 24%.
The company said quarterly cognac sales fell 34% organically, while sales in its liqueurs and spirits division rose 4.3%.
Write to Adria Calatayud at adria.calatayud@wsj.com
