Remy Cointreau, European Drinks Stocks Jump After Outlook Reassures

By Adria Calatayud

Remy Cointreau shares jumped, sending stocks in European peers like Diageo, Pernod Ricard and Davide Campari-Milano higher, after analysts said the outlook of the French drinks maker offers relief to investors.

At 0855 GMT on Friday, Remy Cointreau shares jumped 13% to EUR99.26, but remained down almost 14% since the beginning of the year. Pernod Ricard was up 6.2%, Campari was up 3.7% and Diageo rose 3.5%.

Remy Cointreau reported sales for the quarter to December of 319.9 million euros ($347 million), down 27% compared with the year-earlier period. On an organic basis, quarterly sales fell 24%, hurt by intense promotional activity in the U.S. cognac market, a weaker-than-expected economic recovery in China from Covid-19 and the effects of inflation on European consumers, it said.

The company said it now expects sales for the year ending in March to fall by close to 20%, at the steeper end of its previously indicated range of 15% to 20%.

Remy Cointreau's confirmed fiscal 2024 guidance should result in some relief, and shares should rebound as investor confidence on a recovery increases, Jefferies analysts Edward Mundy and Andrei Andon-Ionita said in a research note.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

January 26, 2024 04:18 ET (09:18 GMT)

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