Remy Cointreau warns of sharp fall in revenue in fiscal first half 2024, then recovery

By Adria Calatayud

Remy Cointreau SA on Friday forecast organic sales will remain stable in the year ahead after it reported higher sales for the fourth quarter and fiscal 2023 as a whole.

The French cognac maker said it anticipates a sharp sales decline in the first half of fiscal 2024, due to weakness in the U.S. and high year-earlier comparisons, and a strong recovery in the second half driven by a U.S. rebound that is expected to start in the third quarter.

It also intends to confirm its level of profitability in the fiscal year to March 2024 thanks to cost controls and a stabilization of the ratio of marketing and communication spending relative to sales.

The company, which makes Remy Martin cognac and Cointreau orange liqueur, said sales for the fourth quarter ended March amounted to 243.8 million euros ($268.9 million) compared with EUR227 million in the year-earlier period. On an organic basis, sales grew 10%.

Total sales for the year were EUR1.55 billion, up 10% on an organic basis.

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

- Adria Calatayud

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04-28-23 0210ET

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